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1987-06-01 CC Agenda/Packet• s CITY OF ALBERTVILLE P. O. BOX 131 ALBERTVILLE, MINNESOTA 55301 PFnWCItIkMA384 JUNE 1, 1987 I CALL MEETING TO ORDER II APPROVAL OF THE AGENDA III APPROVAL OF THE MINUTES --MAY 18, 1987 MAY 19, 1987 MAY 22, 1987 (MEETING REGARDING MOSS IN THE PONDS AT THE W.W.T.F) IV COMMUNITY FORUM 7:05 Joint Power's Update reminder --Need to have alternate at the June Bth--: Jim Walsh will be on vacation 7:30 Paul and Jane Daleiden--Follow up on letter from City to home builder (City Engineer is to have letter to the Council regarding plans) 7:45 LeRoy Berning and Gary Barthel for the Albertville Jaycees -- Community Projects V PUBLIC HEARING ON IMPROVEMENTS FOR BARTHEL MANOR--2ND ADDITION VI DEPARTMENT BUSINESS a. Administration - Inclome Recieved and Bills to be Paid - Hiring of Kim Fisette for Office help --will start working June 8, 1987 - 1986 Audit - Approval of the following building permits Permit Type of # Name Construction Address 30 Barthel Construction New Home 5281 Lannon Avenue * 31 Donald Berning Overhang Co. Rd. 37/I-94 32 Jim Leuer Construction New Home 11740 57th Street 33 Barthel Construction New Home 11780 57th Street Amount of , Permit $900.30 85.80 i -6 w4l - 0 891.50 - Administrator's Report b. Maintenance - Ponds (Discussion with City Engineers) — Overtime Calendar - Hiring of Mike Merges for Maintenance help --started May 28,1987 Make our Citv........ Your Cif {v We invite Home, Industry, Business COUNCIL AGENDA PAGE 2 c. Legal - Introducstion of Bob Miller Discussion regarding the Beaudry Property - Franchise Agreement with the Utility Companies - Use of Liquadated Demages d. Engineering - Update on Street Constuction Work - Update on PPM Problem VII MEMBER'S REPORT VIII OTHER BUSINESS - June Calendar IX CALL FOR ADJOURNMENT I * SPECIAL MEETING OF THE CITY COUNCIL MAY 19, 1987 A special meeting of the Albertville City Council was called to order by Mayor Loretta Roden. Members present included Gary Schwenzfeier, Donatus Vetsch, Don Cornelius and Bob Braun. Others present inlcuded Maureen Adnrews, Thor Meyer, and Ken Lindsay. The purpose of the meeting was to discuss the problem with the moss growing in the ponds out at the wastewater treatment facility. There is some concern that the engineer's office is not correcting the problem. Thor explained to the Council that he had talked to Chuck and that they were moving slowly on correcting the problem so that they can see what is happening. They want to be sure that whatever is done with the problem that it is the best solution. Below is some of the discussion raised during the meeting regarding a kill and the characteristics of the moss: -The possiblity of looking at making a complete kill would most likely include a harvesting of the living moss and a chemical kill on the remaining moss left behind in the ponds. -The configuration of the moss changes daily, depending on weather, wind and water activity. An example was given, that two days before Cell #3 had 509%) coverage on the serface. -A question was asked what would be done with the remains of a harvest or a kill, because when the moss dries out it becomes paper thin and will fly around. -What effects will a chemical kill have on the ponds. It was agreed that most likely some of the test will increase as the result of the chemicals but that over a period of days would decrease back down to normal levels. -Ken stated tha he was concern about the PH test being high. Thor stated that the PH level could be high because of the moss but other items could effect it, such as lime in the rip -rap. -Does the City want to havest the moss or do we want to let it decay on its own. -Will the problem cure itself and does the City have time to take the wait and see approach. -What happens if the City takes a slow approach to resolving the problem. Would we have a better chance a having a better kill if we wait until after the next discharge? -Ken explained that when the OHM was put into the ponds that the moss had adverse effect on it, the PH levels went up beyond the approved 1 o%joI c fnr r4i cnhnrni nn cn fhof +-hp rii cnhnrno hurl 1-n ha rip avari a rrniinI a SPECIAL MEETING PAGE 2 days before the discharge could occur. -It was pointed out that this is the first year of operation for the ponds, and as a result the ponds take a period during which they balance themselves out. -Thor cited an example of a problem with the Dassel project. Dassels ponds had a orange colored insect that lived on the surface of the water. Each pond has its own balancing period and problems that are worked out over a period of time. -A question was asked regarding where the Dassel project got its water source from. Thor informed the Council that the source was a near -by lake, as was the City of Albertville. -Gary Schwenzfeier stated that he felt that "swamp" was a better fitting name for the water source used. (DNR classifies Mud Lake as a "Natural Environment Lake", the most restrictive lake catagory.) -It was agreed that harvesting the moss would be an expensive undertaking, even though firm figures have been presented to the Council. Meyer-Rohlin said that they would have to look at getting the cost figures together for the Council and for that reason Chuck was planning on going down to the Lemma Company which has the harvesting equipment to could be used to get rid of the moss. -Ken state that his main concern is getting rid of the moss, either alive by harvesting or in the case of a kill what happens to the dead moss. -Gary Schwnzfeier state that he does not feel that the City should be involved with any of the cost incurred with the clean up. -The question was raised why the water came from the lake instead of the local water source. Thor state since water was not on the north side of the freeway that there was not a local water source and having the water hauled in would be to cost prohibited. Donatus stated that he thought that at one time there had been a plan to sink a well to draw the water from for the water balance test. Thor said that he was not aware of this because of the size the well would have to be in order to obtain enough water for the water balance test. -Maureen read from the specification stating that the water could come "from the municipal water supply systen at flow rates acceptable to the City or from a nearby waterway." Thor pointed out again that in other wastewater treatment facility construction projects that water was drawn from the "nearby waterway". -Again it was asked who do the cost of correcting the problem fall back on. Thor said that he could not answer that question at this time. -Thor then stressed that at some time down the line that maintenance must take over on the operation of the ponds. Gary Schwenzfeier agreed but feels that this problem has been present since day one and should not be the City's problem. -It was asked if we can prove that the moss came from the. lake or could it have come from another source. This was in regards to the responsibility SPECIAL MEETING PAGE 3 of the general contractor. -Thor felt that Meyer-Rohlin would know after the 20th when Chuck gets back from meeting with the company that could harvest the moss. -Ken stated that his major concern was that he was falling behind schedule and would not be able to discharge for the second time this spring. Thor pointed out that the system was design so that it would only have to be discharge twice a year. Ken stated that the ponds may not be able to handle the intake alond with the rains. Thor assured Ken that rain amounts are factored into the design of the ponds. After this discussion it was agreed that the City's best option would be to take care of the problem during this cycle and not wait any longer. The next issue raised was should the City harvest first, make a chemical kill and then try to harest the dead material again. It was agreed tp wait and find out what information Chuck gets from the Lemma Company before any thing is done. Again it was stressed that every pond is different, therefore treatment is not always the same. Ken stated that at the pond school that the instructors felt that the moss was most likely causing the problems in the ponds. It was agreed that key issues that needed to be resolved are: 1. What type of a time frame is the City Looking at. 2. Who is going to pay for the cost incurred. 3. What is the best method for getting rid of th e moss problem. In addition to the problem with the moss, Ken brought up the following items that are causing some additional problems at the ponds. 1. The Pontoon's generating system is to small and a portable system needs to installed. 2. That the pump was improperly designed and implerers may have been shaved to much. 3. The Slidegates need to be corrected to that Ken can determine how much water is going through the syste. 4. That there are alot of other little things that are wrong and that time is running out. There was no other business relating to the ponds so the meeting was adjourned. The motion to adjourn was made by Donatus Vetsch and seconded by Don Cornelius. All were in favor and teh motion carried. SPECIAL MEETING REGARDING MOSS GROWTH IN THE WASTEWATER TREATEMNT PONDS MAY 27, 1987 A meeting regarding the moss in cell three of the wastewater treatment ponds was held on Friday, May 27, 1987 at 9:00 a.m. to discuss with the City Engineers what they had found out about treating the growth. Those present included Gary Schwenzfeier (who left early), Don Cornelius (who came late), Maureen Andrews, Thor Meyer, Chuck Eberhard, and Ken Lindsay. Chuck was asked what he had been able to find out from the Company, when he went down to inspect their operation. He informed everyone that they had try to sell the City'Duck Weed"saying that it would help take care of the problem. Chuck informed them that the City was not interested in the duck wee but wanted to find the best solution for removing the moss that is growing in the ponds, with Cell three being of greatest concern since it has the largest amount of growth activity At this time Thor requested that he be able to make a statement. He stated that he feels that Meyer-Rohlin is being played against various people with regards to this problem. He stated that during the time it took to sucure the grant moneies and build the pond system that the firm has stood with the City every step of the way. He reminded the group that alot of time and effort was spent resolving the problem with the liner and settling the Liquated Demages against PCI. He pointed out that at some point the ponds become the responsibility of the Wastewater Operato and need to be run by that person. He stated that he is not implying that the firm is not willing to assist in help solve the problem with the moss, but was just reminding the group that the operator will run the ponds the way he feels is the most comfortable with. Thor again wanted to stress that it not the intention of Meyer-Rohlin that they get between the parties involved with the Wasterwater Treatment Facility, that is the Council, Ken and the state and federal agencies involved with the construction of the ponds. Ken Lindsay stated that he is not trying to play the engineers against the other parties involved, but feels that he is on such a tight time - frame that the problem needs to be resolved so that he will be able to discharge once more before the permitted time has elapsed. MEETING MINTUES PAGE 2 Chuck stated that the ponds were designed as 6 acre feets, that is 1 foot of water for every acre of area, and that each cell has 4 foot of storage. When multiplying these two figures together each cell has 24 acre feet of storage in each cell. Ken said that he has calculated the anticipated flow for th a summer and believes that he will need 5 acre feet of storage, which he would have in one pond. There was some discussion regarding weither or not it was necessary to discharge the ponds for the second time. Chuck stated that is may not be that important to discharge at this time, because he felt that the ponds could handle the summer flows. The discussion then focused on the moss problem and what should be done with it. There was some discussion regarding how the moss behaved depending on the weather and wind conditions. There was some discussion regarding whether or not the moss was in all three cells or if it was mainly concentrated in cell three. If the growth is in cells 1 and 2 then there will need to be a chemical kill in those cells as well. It was agreed that a chemcial kill will likey increase the BOD levels, the suspended solids and the PH levels. But by allowing it to settle _ out for 10 days the levels should go back down to normal levels. Gary Schwenzfeier asked why Chuck went down to the Lemma Company since Ken knew what the name of the moss was and how it should be treated. Chuck said that the company would want to come out and look at the moss to be sure that they had the right growth name so that they could determine what was the best method to kill it. Gary stated that he didn't know why no one would take anyone's word anymore. Thor agreed that it is unfortunate but taking someone's word for something can lead to negative results. Options regarding what should be done with the moss included the possiblity of haresting the growth first and then killing the remains with a chemical or going directly to a chemical kill and trying to get rid of as much of the dead moss before it sinks to the bottom of the pond. It was agreed that the best time to try try the chemical kill would be a fter the the transfer from cell two to cell three was complete, but that it would have impact on the levels;dicussed earlier. Ken said that he had gotten some prices for having the pond harested and then treated with chemicals. Chuck informed the group that the Lemma Company had given him a ball park figure of $3,000.00. Ken's breakdown included the use of the haresting maching, the operator, the chemicals, demobilization and travel time. The figure Ken recieved from the same company came in a little over $2,500.00 without the firm having seen the pond conditions. Ken also got prices from Feed -rite and Lake Management for just chemicals. The prices he got from these two firms were $364.00 from Feed -rite and $225.00 from Lake Management. (these prices do not include any harvesting of the growth. MEETING MINUTES PAGE 3 There was a question regarding the long term effect of the chemical kill. There is no sure answer because it depends on whether or not the moss is all killed the first time, what happens to the dead materials that sink to the botto, of the ponds and could the problem occur other years. It was agreed that the City would need to look into cells one and two to see if the problem exist in them as well. Ken stated that he would like to go out into the ponds on Tuesday, May 26, 1987 to inspect them. The question was asked if these was an advantage to harvesting the moss before the kill and it was agreed that there was not a clear cut answer. It was agreed that then the City should be looking at a chemical kill as the first option since it is far less costly and could very easily take care of the problem. They stated that they could be looking at making the kill as early as Thursday or Friday (May 28 or 29) for doing the work. Two other issues discussed included the pump and PPM. Ken informed the group that Feed -rite was sending back the pump after having reshaped the implerers so that they will work properly. Once they are back in Ken will be able to determine if the problem has been coreected. Finally, Chuck informed the people present that the meeting set up with the PPM represenative was cancelled by PPM and had not been rescheduled. COUNCIL MINUTES JUNE 1, 1987 The regular meeting of the Albertville City Council was called to order by Mayor Loretta Roden. Members present included Gary Schwenzfeier, Donatus Vetsch, Don Cornelius, and Bob Braun. Others present included Maureen Andrews, Thore Meyer, Chuck Eberhard, Bob Miller (for Gary Meyer), and Ken Lindsay. There was a motion to approve the agenda. The motion was made by Don Cornelius and seconded by Donatus Vetsch. All were in favor and the agenda was approved. The minutes of the May 18th Council meeting were reviewed and the following corrections were made: Page 3, Paragraph 1: The statement "Gary Schwenzfeier did not agree." was struck. Page 2, Paragraph 10: The minutes are to reflect that there time Maureen is away from the office work being done. is concern regarding the amount of and how it impacts the Administrative There was a motion to accept the minutes with corrections. The motion was made by Don Cornelius and seconded by Gary Schwenzfeier. All were in favor and the minutes were approved. There was a motion to accept the minutes of the May 19th Special Meeting with Thor*Meyer regarding the moss in Cell 3 of the Wastewater Treatment Facility. The motion was made by Donatus Vetsch and seconded by Bob Braun. All were in favor and the May 19th minutes were approved. The Council recieved a copy of the notes from the May 27 meeting with Thom a, "( Fuck c:f Meyer-Rohlin regarding what the City should do with the moss. No formal motion was needed on these notes since it was not of formal meeting of the Council. (The notes were included in the packets as "For Your Inform- ation" just to keep the members up to date on the pond problem). Chuck Eberhard requested that he be able to cover the Engineering items prior to the Public Hearing because he was needed at another meeting. The Council agreed and Chuck proceeded with the Engineering issues. Chuck updated the Council on the construction projects occurring in town. He informed them that most of the work in Barthel Manor and Psyk's 4th Addition has been completed. COUNCIL MINUTES PAGE 2 It is expected that the seeding would take place the week of June 1, 1987 and in Psyk's 4th Addition that the sidewalk in front of Clem Marx's property would be replaced within the same time period. Chuck explained to the Council that he had spoken with Doug Psyk and had the understanding that Doug would speak with Ted LaTour regarding how he wanted the boulevards shaped. Ted LaTour has informed Chuck that Doug did not call he, nor did he speak to them when they were out doing the restoration. Chuck next updated the Council on the City's recieving a permit from the Minnesota Department of Transportation for the purpose of inspecting the existing casing pipe for the water line. Chuck said that the City should now contact a local contractor to come in and open the line up so that we can see if the casing was disturbed during the construction of Interstate 94. Several questions regarding this work was asked by the Council, regarding who would bear the cost of the work and why the line was buried: The answer to the first question was the city will most likely be responsible for any cost incurred unless it is determined that MN/DOT was at fault for dislodging the line during the construction of I- 94. ThorLMeyer suggested that MN/DOT be present when the casing is open so that there will not be any questions down the road. The answer to the second question was that the line is down below the surface several feet and that the dirt coverage had nothing to do with erosion or construction of I-94. The line is down deep enough for the water line to run freely through the Winter months without freeze ups. Chuck then reviewed with the Council the drainage problem between 55th Circle and 56th Street. He told the Council that either a swale or a drainage tile (which would run to the catch -basin east of the problem) would work, but suggested that the drainage tile was the best alternative to the problem. Maureen and Gary are to use this information to contact Jim Hennum to see if the problem can be resolved. The final punch list for the street construction projects will be prepared during the first few days of June so that everything will be cleaned up in a short time. A question was asked what would happen with the properties that have had yards established? In those cases sod will be placed along the boulevard in.the other yards grass seed will be spread. The problem with PPM was discussed. Chuck informed the Council that an appointment set up to review the problem on site was cancelled by the repre- sentative of PPM and had not been rescheduled. It is the feeling of Meyer- Rohlin that it has gotten to the point when a representative of the Council and the City Engineer will just have to go out and request that they be ^ allowed to see the operation. It was agreed that one of the Council members who is free during the day will go along out to the site for an inspection of the water problem. COUNCIL MINUTES PAGE 3 Chuck next reviewed the plans from Huglund Engineering, the engineer for Dynamic Designers, who had developed a "french drain" for the Paul and Jane Dalieden house at 5616 Lake Avenue. It is the opinion of the Engineer that the "french drain"is not acceptable to the City because the system will act as a "bathtub" and could cause potentional problems in the future. The french drain was described to those present as a water collection system which draws the water into a trench area and then seeps through a gravel base in the ground around it. It is the feeling of the City Engineer that this system would work for light rains, but will not handle heavy down pours. In addition, the City Engineers stated their concern about the water that would sit in and along the french drain, and its potential for getting under the road bed and causing structural damage to the road. Meyer-Rohlin said that there were two possible alternatives to the french drain, but feel that the first one is the most acceptable. Alternative 1: A catch basin and drain tile which is connected unto the storm sewer at the corner of Lake Avenue and 57th Street. This system would have to be installed deep enough so not to cause freeze ups in the line and even though it is located in the public right- of-way would be considered a private system leaving all maintenance the responsibility of the property owner. Alternative Z: of the house to because it may Attorney Bob Miller that the contractor before legal action A concrete swale running from the Northwest Corner the street. This alternative is less favorable not be able to handle the heavy rains. informed the Council that if the turn to the proposal should be given one more chance to find an alternative is taken. The property owners were asked what their feeling on the matter was and what steps they had taken to get the problem resolved. They informed the Council that they were not satisfied with the "french drain" or the concrete swale and needed to think about the catch basin proposal. They stated that they do not feel that they should penalize for their builder's error by accepting a solution that causes more addition maintenance work for themselves, and as a result have been working with an attorney to get the problem resolved. (The minutes should note that there is not a complaint against the City, but rather the homeowners had earlier asked for any assist- ance that the City might be able to give them). It was finally agreed that Chuck would send a letter to the City Council stating that it was the opinion of Meyer-Rohlin that the "french drain" was not acceptable and that it is the firm's opinion that the only drainage solution the City should be willing to accept is the catch basin and tile line which would be connected into the City storm sewer system. This recommendation, however does not rule out the possibility that the homeowners would not accept the Engineer's recommended alternative. This simply means that from the City's stand point the alternative is acceptable and anything beyond that is between the home owner and the builder, and be taken under advisement with their attorney. COUNCIL MINUTES PAGE 4 The next item on the agenda discussed was the update on the Joint Power Board meeting. The first item discussed was a letter from Willis Gilliard, the St. Michael City Engineer, requesting that the Joint Power Board pay $11,787.98 to the contractor for lower the water main in the Dehmers Rambling Estates. It is Mr. Gilliard's contention that the reason the line had to be lowered is that the original contractor did not follow the stakes set forth by the St. Michael Engineer. (See letter in packet file.) It is the understanding of the Albertville representatives to the Joint Powers that at the time the line was constructed the line was down at least 17 feet and did not need to be lowered intil the Dehmer's addition went in. It was further discussed as to remind the Council that in order to resolve some conflict between the cities it was agreed that Mr. Gilliard would be contracted to inspect the St. Michael portion of the project instead of Meyer-Rohlin, who was the Engineer for the overall project. Gary Schwenzfeier then noted that it was the overall opinion of the Board that the main leak has been there for a long time. (It has been determined by the ground saturation around the line Gary asked if it was common to have the little leaks along the pipe joints (stating that possibly as many as 10 joints were leaking the day he was out inspecting the sight. Thor Meyer responded to Gary's questions by stating that it is not common for the water line to leak and that proper inspection and pressure testing of the line would have most likely determined any problems. Thor stated some concern regarding whether the plans and specifications had in fact been followed because of the problems that occurred. There was a question about how deep the line was once the contractor started making the road cuts and before the line was lower. The Council was informed that once the road cuts were made the water line was approximately 4 feet below the surface instead the minimum of 7 feet. There was some additional discussion about when the work was completed. The work was done in January which could have caused some problem with compacting around the water line, but it was agreed that for that reason it is important that proper inspection took place. It was agreed that the City did not to take any formal action regarding the St. Michael's Engineers request. The minutes are to show however that the Council is united in the opinion that the $11,787.98 should not be picked up by the Joint Powers because it does not appear that they did anything wrong. The other Joint Power items discussed were the acceptance of low bid for the construction of the office addition for the amount of with an add of $ . for cedar siding. Thor asked if the build- ing addition had been reviewed by the Minnesota Board of Health, stating that because the first well is enclosed in the building that they may need to review the plans. Gary Schwenzfeier said he would look into it. Jim Walsh informed the Council that he would not be able to attend the June 8th meeting of the Joint Powers and asked that one of the alternates attend in his place. Don Cornelius said that he could be there. COUNCIL MINUTES PAGE 5 The next issue discussed by the Council was the problem of the moss growing out at the Wastewater Treatment Facility. Ken Lindsay informed the Council that after reviewing the possible solutions to the moss problem that it had been decided to try treating the moss with copper sulfate to see if it will kill the growth. Ken explained the process that would be used to treat the moss and potential order that will likely occur as the result of the moss decaying. The cost of the treatment will run about $300 for both chemicals used in the process. The Council was informed that there appears to be a slight problem in cell 2, but is not as large of growth as in cell 3. This was determined by Ken and Gary Schwenzfeier going out into the cell with a boat for an inspect- ion of the entire surface of the cell. The schedule for correcting the problem was: I. Quit filling Cell 3 on Friday, May 29, 1987. 2. Treat Cell 3 with Copper -Sulfate on Wednesday, June 3, 1987, and then let sit for a few days. 3. Put OHM into the pond on Monday June 8, 1987. 4. Pull test sample on Tuesday, June 9, 1987. 5. Discharge sometime after Tuesday. Thore suggested that since there seems to be some growth in Cell 2, that Ken should keep an eye on it and should try to treat it when a transfer from Cell 1 to Cell 2 occurs. Donatus Vetsch asked how many times does the City have to discharge. The response was that there are two normal discharge seasons - Spring, and Fall. As long as limits are met, a discharge can occur during that time period. Thor pointed out the factors, such as, take elevations that have some bear- ing on when a discharge is allowed. But in all cases the discharge must occur during a MPCA approved discharge period. Ken next provided a list of things that need revising at the Wastewater Treatment Facility. They included: - A change in chemical feed from the outside to the inside of the building. - Piping above the tank. - Electric generator (in addition to gas generator, which is currently used.). Chuck suggested that there may be a way to make these revisions yet at the same time by-pass the contractor's involvement. He said that he would look into the possibility End get back to the Council with the information. Chuck asked that Ken get written quotes on the generator; materials and an estimate on his (Ken's) labor so that it will be fully documented. Ken agreed to get the information. COUNCIL MINUTES PAGE 6 There was then a motion to approve the authorization of the plant revisions without going through the Contractor, provided it is legal with the agencies involved, MPCA, EPA, and Army Corp. Gf Engineers. The motion was made by Gary Schwenzfeier and seconded by Don Cornelius. All were in favor and the motion carried. The next issue discussed was the drainfield located out in Barthel's Indust- rial Park. Chuck informed the Council that the City has a permit for the drainfield until August 31, 1987, and it is the feeling of Engineers office that the City should be responsible for maintaining the system until the permit has lapsed. It was also suggested that the City recieve a letter from Barthel stating that they would not hold the City responsible for any damage or injury that could occur as the result of the horses being on the property. There was some discussion regarding the condition of the site. Ken Lindsay told the Council that it had been decided not to put any more money into maintaining the drainfield since it will be destroyed at the end of the Summer. This discussion was continued so that the Public Hearing on Barthel Manor- 2nd Addition could be called to order. (Sign In sheet attached). There was a motion made by Gary Schwenzfeier and a second by Donatus Vetsch to call the Public Hearing for making the improvements in the area known as Barthel Manor - 2nd Addition. All were in favor and the motion carried. The notice of hearing was read by Mayor Loretta Roden and the Council was reminded that a Feasibility Report for the area had been accepted by the Council at the May 4, 1987 meeting. Chuck Eberhard reviewed with the Council the fundings of the Feasibility Report. He reviewed the breakdown of costs of the project and some addition items that needed to be settled before the plans and specification could be prepared. The first issue discussed was the routing for the 8 inch sewer line. At the time the Feasibility Report was accepted it was recommended to use alternate 2 which would cross Frankfort Township from one City boundary to another (approximately 530 ft.). By using this alternative it will save the project about $8,870.00. According to Bob Miller this alternative can be used as long as the City recieves from Barthel: I. Required Easement for the location of the sewer line. 2. The abstract of the land so that the attorney may review it. 3. A "Deed of Gift" for the ownership of the pipe (because it lays outside the corporate limits. 4. A letter to Frankfort Township explaining what is being done in case there are any ordinances or permits that might apply. The Council was informed by Ken Barthel that John Gries was sending a letter to Frankfort Township and Gary Meyer regarding the placement of the sewer COUNCIL MINUTES PAGE 7 line. It was agreed that this issue should be settled with Frankfort as common courtesy, since there is a lawsuit on the property in question. The next issue that needed to be settled was whether or not Barthel Industrial Drive should be extended from 52nd Street to 50th (gravel only). Meyer-Rohlin recommended that if Barthel Industrial Drive was extended the improvement should include the placement of utilities before the gravel was put in place. Chuck explained if the "gravel only" option was used, that at a future date when the utilities are needed the gravel would all be wasted. In addition, there was some discussion regarding whether or not the Industrial Drive traffic would use the gravel portion of the road or would it continue using Lannon Avenue and 51st Street. There was a general agreement that the traffic is not likely to shift if the road would be opened. As a result of this discussion it was agreed to hold on improving Barthel Industrial Drive from 52nd Street to 50th Street. There were some questions regarding how the project would be assessed against Dennis Fehn's property. Dennis was told that if at the time of the ass- essment hearing it was deemed that his property would benefit from the improvement the property would be assessed for it. At this time it would appear that the only assessment would occur on the lot that would have frontage on Locust Court. Dennis then asked if it would be possible to hook up to City Sewer from the rear of the property? Chuck said that he didn't believe that this would be a problem provided that if sewer improvements would ever run along the front of the property that Dennis would be expected to reconnect from the front. Mayor Roden asked if there were any additional questions hearing none the Public Hearing was closed. The Hearing was closed on a motion made by Gary Schwenzfeier and a second by Don Cornelius. All were in favor and the motion carried. A motion was made by Dona us Vetsch and seconded by Gary Schwenzfeier to pass resolution No. 1987- , RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF THE FINAL PLANS AND SPE IFICATIONS for BARTHEL MANOR 2ND ADDITION (Project 1987-6). All were in favor and the motion carried. The minutes are to reflect that the Council accepted the City engineer's recommendation to use Alternative # 2 Sewerline location and exclude any improvement of Barthel Industrial Drive. The discussion regarding the drainfield land was recontinued. It was agreed that the City should maintain the property until the permit for operation expires, but that Barthels should be allowed to have their horses on the land as long. It was the opinion of the City Attorney that as long as Barthel Construciton/ Albertvil]eIndustrial Development Corporation list the City of Albertville as a "named insured" on their policy the City would be protected from any potential lawsuits. The next issue discussed by the Council was Ken Barthel's request to allow COUNCIL MINUTES PAGE 8 them to do the blacktop project of Barthel Manor without going through the City and the 429 Assesment Regulations. Reasons ford oi ng the improve- ment in this fashion would decrease Barthel's costs and would allow them to get the street improvement done since a majority of the Lots have been sold and built on. The discussion focused on whether or notthe area was ready for blacktop so soon after the road was constructed and what types of control the City would have on the project. Both of these issues were discussed with the City Engineer and the City Attorney. It was the feeling of the City Engineer that the roads would be ready for blacktop and if planned and built under the supervision of the Engineers office there would be assurances that the road was being built to City standards. The City Attorney said the City would have the option to require Barthel to provide a letter of credit for the cost of the project to be used if the work was not preformed up to the City standards. Additionally the City would not be required to preform any maintenance on the roads in question until it was turned back to the City. There were some questions from the Council regarding the project. It was asked if the City could charge an assessment for any future repairs that would need to be done to the road? The response was that it would depend on the City's responsibility to "prove benefit". Someone else asked when problems in road structure were likely to show up? Thore indicated that if properly maintained problem would be minor, but the construction related problems tended to show up soon after the project completion (for this reason there is a one year warranty on work). Someone suggested that the City could accept the Barthel proposal provided that only the first 1 1/2 inch lift of blacktop is installed in 1987, and the second lift in 1988. At this point Ken Barthel said it might be best to just go through the City because of the costs that would be incurred with a letter of credit or bond. After a little more discussion it was final agreed that Barthel could have the blacktop done provided that it is done in two steps. There was a motion made by Don Cornelius and a second by Gary Schwenzfeier to grant authority to work on the public street for the purpose of installing the first 1 1/2 inch lift of blacktop in 1987, providing the City would not be responsible for any maintenance of the area (except for snowplowing) until the project is completed, and that secondly, no work will be conducted during the 1988 construction season until such time that the City Engineer has inspected the work and has provided recommendation to the City Council for authorizing the second lift of blacktop. all were in favor of the motion and the motion carried. The minutes should reflect that both Ken Barthel and LeRoy Berning were present representing Barthel Construction and the Albertville Industrial Development Corporation. LeRoy Berning, representing the Albertville area Jaycees requested that the Council make some suggestions regarding possible Community Projects that they would like to see the Jaycees work on. It was agreed that rep- COUNCIL MINUTES PAGE 9 resentatives of the Jaycees be at the next meeting to discuss possible projects. There was a motion to approve the bills. The motion was made by Donatus Vetsch and seconded by Gary SChwenzfeier. All were in favor and checks 7917 through 7940 were approved. There was a request that the City install a barricade between 60th Street (by Lamp Post In) and Co. Rd. 37 to stop the short cut that is developing in that area. There was a motion to have Gries, Johnson and Associates conduct the 1986 Annual Audit. The motion was made by Bob Braun and seconded by Don Cornelius. All were in favor and the motion carried. The following building permits were approved: Permit #30: New Home for Barthel Construction at 5281 Lannon Avenue- -$900.30. The motion was made by Bob Braun and seconded by Donatus Vetsch. All were in favor and the permit was approved pending payment. Permit #31: Canopy for Don's Auto at Co. Rd. 37--$85.80. The motion was made by Don Cornelius and seconded by Bob Braun. All were in favor and the motion carried Permit #32: New Home for Jim Leuer Construction at 11740 57th Street- -$641.50. The motion was made by Donatus Vetsch and seconded by Don Cornelius. All were in favor and the motion carried. Permit #33: New Home for Barthel Construction at 1780 57th Street- -$891.50. The motion to approve the permit pending payment was made by Gary Schwenzfeier and seconded by Bob Braun. All were in favor and the motion carried. The City Council reviewed Ken's May overtime Calendar. Ken told the Council that he would try to get his hours down over the next few weeks. It was agreed to review the Calendar at the beginning of July. The Council was informed that Ken had hired Mike Merges to fill the MEED position in the Maintenance Department. The final Maintenance items included a sewer line plug up on Main Streets and thepossibility of installing electric pumps out at the wastewater treat- ment Facility. The Council was informed that the sewer line on Main Avenue had plugged up sometime over the weekend. The blockage was caused by a build up of grease in the lime. Ken informed the Council that in checking with the different places that serve food and found that the school does not use a degreaser or have a grease trap installed in their line. Mr. Burke, Principal, informed Ken that the School Engineer has told them that schools are not required to have grease traps in their lines. Maureen was asked to review the Ordinance to see if there is any language regarding the disposal of oreaGP_ COUNCIL MINUTES PAGE 10 The Council reviewed a letter addressed to Mayor Roden from Bruce and Dianne Youngdahl, regarding the sewer backup that resulted from the plug on Main Avenue. In the letter Mrs. Youndahl requested that the City pay for the clean up of the sewage in their basements. When reviewing the Youngdahl letter the following points were made: 1. Why was the City not contacted until Monday morning when the problem seems to have arose some time on Saturday? 2. In the case of the Kolles sewer problem the City did pay for the repair because it was a break in the line. 3. Should the City look into possible insurance coverage? It was finally agreed that Maureen should: 1. Send a letter regarding the use of degreaser and a grease trap to the school super intendant. 2. Notify the City's Insurance agent to see if the City's policy covers this type of damage. 3. Notify the Youngdahl as to what steps the City is taking to resolve the problem. The other maintenance item discussed was the possibility of installing electric pumps out at the Wastewater Treatment. There was some discussion regarding this proposal but it was agreed to wait and see what the total cost of the conversion would be before any decision is made. There was a motion to appoint Bob Miller as City Attorney to fill the seat vacated by Gary Meyer who will be serving as the New District Court Judge. The motion was made by Gary Schwenzfeier and seconded by Braun. All were in favor and the motion carried. Bob Miller reviewed his findings on the Beaudry proposal that the City accept their land for the back taxes and assessments. It is Bob's feeling that it is best to let this issue rest until such time it is forfeited for back taxes. The council agreed. Bob informed the Council that Gary is still looking into the franchise agreements to see if the City could charge the utility companies for working in the City. Bob explained to the Council that he has never seen this done in any other City. Bob told the Council that in his opinion the City can use the liquated damages from the Wastewater Treatment Facility in any fashion that they want. Other Issues: Bob and Loren Kohnen agreed to talk about the problems out at Andy's, and will report something back at the next meeting. Don Cornelius asked that a letter be written to Jones Intercable and Gary COUNCIL MINUTES PAGE 11 Matz regarding the restoration work being done in connection with cable television. The Council reviewed the June calendar and there were no corrections or additions. There was a motion to adjourn made by Gary Schwenzfeier, and seconded by Bob Braun. All were in favor and the motion carried. To Whom It May Concern: Notice is hereby given that the City Council of Albertville, Minnesota, will meet in the Council Chambers of the City Hall at 8:00 P.M., June 1, 1987, to consider the making of improvements to the following area: - Barthel Manor 2nd Addition - Lansing Avenue (from 50th Street to 51st Street) and all of Locust Court. - Barthel Industrial Park Lots 7, 8 & 9 of Block 8 - just east of Lannon Avenue on 51st Street. All property adjacent to 51st Street from Lannon Avenue to Barthel Drive. - Lots 2, 3 & 4 of Block 10 on Barthel Drive and 52nd Street and all property adjacent to Barthel Drive from 50th Street to 52nd Street. Improvements as proposed are to consist of sanitary sewer, watermain, storm sewer and final course of gravel. Pursuant to Minnesota Statutes, Secs. 429.011 to 429.111 (laws 1953, ch. 398, as amended). The area to be assessed for said improvements are the properties abutting on said streets. The estimated cost of said improvements is $324,510.000. Persons desiring to be heard with reference to the proposed improvements will be heard at this meeting. at A r Maureen Andrews, City Administrator INCOME RECIEVED JUNE 1, 1987 WRIGHT TITLE GUARANTEE CO. $ 3,781.66 DONALD BERNING 85.80 ALBERTVILLE AREA JAYCEES 25.00 PATNODE BROS. 70.00 DEB POIRIER 15.00 WRIGHT COUNTY JUVENILE COURT RESTITUTION PROGRAM 50.00 REGISTERED CLOSERS 7,830.44 GUARANTY TITLE, INC. 7,193.88 TOTAL $19,051.78 BILLS TO BE PAID JUNE 1, 1987 MAUREEN ANDREWS 535.47 KEN LINDSAY 629.52 DON'S AUTO 71.74 G.D. LaPLANT 33.00 DENNIS FEHN GRAVEL, INC. 100.00 T & S TRUCKING (STREET SWEEPING) 348.75 FEED -RITE CONTROLS, INC. 86.00 SUNRISE PLUMBING, INC. 65.00 ABLE HOSE & RUBBER, INC. 43.50 NSP 1,373.22 MN COPY SYSTEMS, INC. 39.51 WRIGHT COUNTY AUDITOR AND TREASURERE 1,688.12 LORETTA RODEN GARY SCHWENZFEIER GARY SCHWENZFEIER Co, kS.cxo I1'L5 BOB BRAUN 120.00 DONATUS VETSCH DON CORNELIUS LEAGUE OF MINNEOSTA CITIES 130.00 STATE AGENCY REVOVING FUND 5.00 PERA PF �� 138.42 Ito• qU SUBTOTAL $5,5 C1� 9�AMYIS) gOAl2SO-12 cz12o` 57SS0C7;91esL10( i CERTIFIED PUBLIC ACCOUNTANTS May 20, 1987 City of Albertville Albertville MN 55301 Plaza Professional Building 1111 Highway 25 North Buffalo, Minnesota 55313 Telephone: 682-1762, Metro: 473-0036 Arnold D. Gruys Dale A. Johnson Principals: Cecil Fawcett Robert E. Carlson Rick Borden We are pleased to confirm our understanding of the services we are to provide for the City of Albertville for the year ended December 31, 1986. We will audit the general purpose financial statements of the City of Albertville as of and for the year ended December 31, 1986. Also, we will include in your report the following supplemental information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements: I. Individual fund statements 2. Property tax valuations, levies and collections 3. Computation of legal debt margin 4. Statement of future tax levies to pay bonds 5. Schedules of bonded indebtedness 6. Schedule of federal financial assistance Our audit will be made in accordance with generally accepted auditing standards and will include tests of the accounting records of the City of Albertville and other procedures we consider necessary to enable us to express an unqualified opinion that the financial statements are fairly presented in conformity with generally accepted accounting principles consistently applied. If our opinion is other than unqualifed, we will fully discuss the reasons with you in advance. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and banks. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our examination, we will also request certain written representations from you about the financial statements and related matters. An audit is based primarily on the selective testing of accounting records and related data; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Because we will not perform a detailed _ examination of all transactions, there is a risk that material errors, irregularities, )r illegal acts, including fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention. MEMBERS OF MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AND AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS City of Albertville Page Two We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related controls, the selection and application of accounting principles, and the safeguarding of assets. Our examination is not specifically designed and cannot be relied on to disclose material weaknesses in accounting controls. However, during the audit, if we become aware of such material weaknesses in internal accounting control or ways that we believe management practices can be improved, we will communicate them to you in a separate letter. Our fees for these services will be based on the actual time spent at our standard hourly rates, plus out-of-pocket costs. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. It is the policy of our firm to bill these services on a monthly basis following the month in which the services are rendered, with payment due upon receipt of statement. -In the event you reproduce or publish your financial statements, or any portion -hereof, printers' proofs must be submitted to us for review. We appreciate the opportunity to be of service to the City of Albertville and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly ours, #GRUYS�j,,OH N AND ASSOCIATES, LTD. Certified Public Accountants RESPONSE: This letter correctly sets forth the understanding of the City of Albertville. By: By. Title: Title: Date: Date: R z n w z 0 3 J a ,a 0 (� = W ' i 1 � a z x ri - g - a ¢ J � r 4 a LL- � (J z V r1, ADDITIONAL BILLS ALBERTVILLE AUTO PARTS ABLE HOSE AND RUBBER, INC. (2ND BILL) LaTOUR CONSTRUCTION SUBTOTAL 0 $ 20.11 63.13 47,141.61 47,224.85 TOTAL $53,243.17 ,Q,00 c-,3,2 r3 1 � n - MEYER-ROHLIN, INC. ZC7 LJ OENGINEERS-LAND SURVEYORS 1111 Hwy. 25 N., Buffalo, Minn.55313 Phone 612-682-1781f'—"= May 27, 1987 Honorable Mayor and City Council City of Albertville c/o Maureen Andrews, City Administrator Albertville, MN 55301 Re:1986-2 Improvement Project Partial Payment No. 3 Members of the Council: The Contractor has requested Partial Payment No. 3 based upon the following estimated quantities to date on the above referenced project. BID "A" - WATERMAIN Item No. Item Qty. Unit Unit Price Total Price 1. 6" D.I.P. 2784 l.f. @ $ 10.90 $ 30345.60 2. 8" D.I.P. 602 l.f. @ 13.10 7886.20 3• 8" Gate Valve w/box & raiser 2 each @ 400.00 800.00 4 • 6" Gate Valve w/box & raiser 20 each @ 290.00 5800.00 5• Hydrant 7 each @ '055.00 7385•00 6. 8" x 8" x 8" Tee 1 each 150.00 150.00 7• 8" x 8" x 611 Tee 1 each @ 145.00 1 45•00 8. 8" 114 Bend 0 each @ 100.00 0.00 9• 8" 222 Bend 3 each @ 100.00 300.00 10. 8" x 6" Reducer 0 each @ 80.00 80.00 11. 6" x 61, x 6" Tee 8 each @ 110.00 880.00 Thore P. Meyer, Professional Engineer Robert Rohlin, Licensed Land Surveyor 12. 8" 90 Bend 13. 6" 90 Bend 14. 6" Plug 15. 1" Water Service Group 16. 1" Copper 17. Density Testing 1 each @ 110.00 110.00 1 each @ 90.00 90.00 2 each @ 6o.o0 120.00 45 each @ 60.0o 2700.00 1453 l.f. @ 5.70 8282.10 48 each @ 32.00 1536.00 TOTAL BID "A" $66 609.90 BID "B" SANITARY SEWER CONSTRUCTION 1. Sanitary Sewer (0'-8' Cut) 2. Sanitary Sewer (8'-10' Cut) 3• Sanitary Sewer (10'-12' Cut) 4• 4" x4' x 8' Polystyrene Insulation (In place) 5• Manholes (complete) 6. Extra Depth Manhole 7. 4" x 8" Wye 8• 4" Service Pipe 9. 8" Plug 10. Density Testing 2055 l.f. @ $ 9.95 $ 20447.25 548 l.f. @ 10.95 6000.00 137 l.f. @ 12.45 1705.65 225 l . f . @ L. 00 1282 . 50 10 each @ 870.00 8700.00 3.4 l.f. @ 6o.00 204.00 46 each @ 30.00 1380.00 1545 l.f. @ 5.8o 8961.00 2 each @ 15.00 30.00 48 each @ 32.00 1536.00 TOTAL BID "B" $50 2 ==z=47_o0 BID "C" - STORM SEWER Item No. Item 1. 12" RCP 2. 15" RCP 3. 18" RCP 4. 48" Catchbasin (complete) 5. 27" Catchbasin (complete) 6. 18" RCP Plug 7. 12" RCP Apron 8. 15" RCP Apron 9. Density Testing 10. 48" Manhole BID "D" - STREET CONSTRUCTION I. Excavation 2. Class 5 Aggregate (In Place) 3. Density Testing Qty. 170 463 388 3 3 1 1 each @ each @ each @ each @ 1 each @ 11 each @ 1 each @ TOTAL BID "C" Unit Price $ 14.30 15.15 24.70 35.00 200.00 220.00 32.00 1250.00 Total Price $ 2431.00 7014.45 9583.60 35.00 200.00 220.00 352.00 1250.00 $25,541_05 6450 C.Y. @ $ 1.30 $ 8385.00 5100 C.Y. @ �9 each @ TOTAL BID "D" 6.94 27.00 EXTRAS Crew time to hook up to ex. sanitary sewer service & ex. watermain service on Lander Ave. & 55th St. 2 Hrs. x 491.00 Crew time & rental equipment to work at nite, connecting to ex. watermain on Barthel Drive, to keep Factory in operation. Generator & Light Rental Crew time overtime portion only 8 men x 2 time above regular time = 88.00 32 hrs x 88.00 = Total on Night Watermain Connection 35394.00 928.00 $44,707_00 •: 11 122.00 308.00 430.00 Material & Labor, 4" Sewer Service Cleanout $ 22.00 Crew time to relocate hydrant on 57th St. NE 22 hrs x 491.00= 1227.50 Installation of Class 5 Gravel on Clem Property & S4th St. NE Equipment & Labor Only 87.00 Equipment, labor & material Furnish & install 12" Trash Guard on 12" RCP Apron on Lander Avenue 185.00 Extra density testing chgs. as requested by engineer 1676.10 Remove Curb & Gutter on Barthel Drive & S7th St. NE 75.00 TOTAL EXTRAS $ 4684.60 TOTAL PROJECT - BIDS "A", "B", "C" & "D" & EXTRAS $191 789 ===L==_•SS MINUS 2.5% RETAINAGE $ 4,794.74 LESS PREVIOUS PAYMENT #1 7,546.50 LESS PREVIOUS PAYMENT #2 132,306.70 AMOUNT DUE $ 47,141.61 We recommend Partial Payment No. 3 in 41.61 to the contractor, LaTour Construction,, Rt. amount Box $76,�1Maple Lake, MN 55358. If you have any questions, please contact me. Sincerely yours, MEYER-ROHLIN, INC. ' �6kal Charles Eberhard CE:sl cc: E-8601-D LaTour Construction June 1, 1987 Mayor Loretta Roden City Hall Albertville, MN 55301 Madam Mayor: Saturday May 30, 1987 the Albertville City sewer_ line backed up into out basement. This is the second time this has occurred in the last three years. Service Master cleaned our basement on the first occation at our expense. At that time we had D J Plumbing install brass balls in all the floor drains. Even with this precaution the sewer water still inundated our basement. Enclosed is the present estimate from Service Master as to the cost to clean up the sewage this time. We feel that the City of Albertville has a responsibility to us to pay for our continued inconvenience that the city has inflicted on us again. We would like a prompt written response to this _letter within twenty four hours or stronger action will have to be taken, especially with a Day Care Business in my home. Thank you , 1 , `Dianne Donahoo Youngda 5697 Main Ave P.O. Box -165 Albertville, MN 55301 A SPECIALTY CONTRACTING SERVICE. D,B/A ServiceAIASTER Name _ i �; I ;()[1 v INSPECTION REQUEST O OSSEO/MAPLE GROVE ❑ PLYMOUTH/NEW HOPE 420-2525 473-6433 By. Date: ❑ BROOKLYN PARK 555-4775 16567 89TH AVENUE NORTH • MAPLE GROVE, MINNESOTA 55369 Street Eli ) t 110, J Ale, City_ t \) j J. It I.,,, 11 r A It] Zip Phone: H- r I 1 '� 1 �-( W- Directions: ESTIMATE c a {l6 1 k 'l I,., (I., 1 Company Adjuster _ Phone — Clm. #— �Iw 1 a I1MVu1V 1 't ,t� 1 IL r i� f -r TOTAL Qualifications: spection Date: r ` Schedule Date:_ Class. Amt. — Add - Ons: Prod # _ Amt. 90-&S012 anJ./7ssoclales, LIJ CERTIFIED PUBLIC ACCOUNTANTS May 20, 1987 City of Albertville Albertville MN 55301 Plaza Professional Building 1111 Highway 25 North Buffalo, Minnesota 55313 Telephone: 682-1762, Metro: 473-0036 Arnold D. Gruys Dale A. Johnson Principals: Cecil Fawcett Robert E. Carlson Rick Borden We are pleased to confirm our understanding of the services we are to provide for the City of Albertville for the year ended December 31, 1986. We will audit the general purpose financial statements of the City of Albertville as of and for the year ended December 31, 1986. Also, we will include in your report the following supplemental information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements: 1. Individual fund statements 2. Property tax valuations, levies and collections 3. Computation of legal debt margin 4. Statement of future tax levies to pay bonds 5. Schedules of bonded indebtedness 6. Schedule of federal financial assistance Our audit will be made in accordance with generally accepted auditing standards and will include tests of the accounting records of the City of Albertville and other procedures we consider necessary to enable us to express an unqualified opinion that the financial statements are fairly presented in conformity with generally accepted accounting principles consistently applied. If our opinion is other than unqualifed, we will fully discuss the reasons with you in advance. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and banks. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our examination, we will also request certain written representations from you about the financial statements and related matters. An audit is based primarily on the selective testing of accounting records and related data; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention. MEMBERS OF MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AND AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS City of Albertville Page Two We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related controls, the selection and application of accounting principles, and the safeguarding of assets. Our examination is not specifically designed and cannot be relied on to disclose material weaknesses in accounting controls. However, during the audit, if we become aware of such material weaknesses in internal accounting control or ways that we believe management practices can be improved, we will communicate them to you in a separate letter. Our fees for these services will be based on the actual time spent at our standard hourly rates, plus out-of-pocket costs. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. It is the policy of our firm to bill these services on a monthly basis following the month in which the services are rendered, with payment due upon receipt of statement. In the event you reproduce or publish your financial statements, or any portion thereof, printers' proofs must be submitted to us for review. We appreciate the opportunity to be of service to the City of Albertville and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, GRUYS, 0 ON AND ASSOCIATES, LTD. Certified ublic Accountants RESPONSE: This letter correctly sets for the understanding of the City of Albertville. By: T / By: Title: Title: y Date: " �- 0 Date: —� _�