06-22-2009 Council Minutes - Laserfiche WebLink

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• MINUTES OF THE , ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. (3. MYRTLEWOOD UTILITYIMPROVEMENTS PROJECT ASSESSMENT HEARING, Continued) Kuruvilla commented he would like a chance to understand the project more completely as it relates to the costs and discuss the timeline with the state agency he is working with. Kuruvilla indicated he is generally in favor of the project. Franchot asked if the issues relating to the comprehensive plan have been resolved. Gaffron noted there are two issues relating to the comprehensive plan. One is that the property at 850 would need to be requided from residential to institutional to be allowed into MUSA. The property at 875 also needs to berequided. Both of the amendments are currently before the Metropolitan Council and that in his view they are nonissues. Gaffron noted the lots would not be eligible to hook up to sewer until the Metropolitan Council approves the amendments. Kuruvilla pointed out that the water and sewer lines have to go through his property in order for 875 to have service. Kellogg stated the water and sewer mains would go through the right -of -way abutting 850 Wayzata Boulevard but would not go through the actual property. Bremer moved, Murphy seconded, to table approval of Change Order No. 1 to July 13, 2009. • VOTE: Ayes 5, Nays 0. PRESENTATION 4. 2008 COMPREHENSIVE ANNUAL FINANCIAL REPORT Craig Popenhagen and Scott Brown, Larson, Allen, were present. Popenhagen noted the Council has before them draft reports of the City's 2008 audit and that the final reports would hopefully be issued by the end of the week. The deadline for filing the reports with the state is June 306'. Brown stated the audit provides reasonable, but not absolute assurance that the financial statements are free of material misstatement. Two new accounting standards relating to environmental remediation and pension disclosures had no impact on this year's financial statements. In addition, the audit found no transactions entered into by the City during the year for which there was a lack of authoritative guidance or consensus. Brown noted bond issuance costs and discounts were understated by $48,000 and $52,000 respectively in 2007. Some difficulties were encountered during the audit due to obtaining supporting schedules and work papers necessary to audit the City in a timely manner. Brown stated three material weaknesses were noted and they relate to oversight of financial reporting, ® approval and review of transactions, and segregation of duties. As it relates to legal compliance, one exception was noted for lack of approved out of state travel policy. PAGE 5 of 9