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HomeMy WebLinkAbout2019/06/17 - ADMIN - Agenda Packets - City Council - RegularAGENDA JUNE 17, 2019 (Mayor Spano and Councilmember Miller out) 5:45 p.m. SPECIAL STUDY SESSION – Community room Discussion item 1. 5:45 p.m. Comprehensive Annual Financial Report (CAFR) for year ended December 31, 2018 – auditors discussion and review 2. 6:30 p.m. 2020 budget 7:20 p.m. ECONOMIC DEVELOPMENT AUTHORITY – Council chambers 1.Call to order 2.Roll call 3.Approval of minutes 3a. EDA meeting minutes May 6, 2019 4.Approval of agenda and items on EDA consent calendar EDA consent calendar 4a. Accept for filing city disbursement claims for the period of April 27, through June 7, 2019. 4b. Adopt EDA Resolution approving the First Amendment to the Preliminary Development Agreement between the EDA, city, and Sherman Associates relative to the Beltline Blvd Station Redevelopment Site. 4c. Approve amending the bylaws of the St. Louis Park Economic Development Authority relating to meeting start times. 5.Reports -- None 7.New business 7a. Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC Recommended action: Motion to adopt EDA Resolution approving the Fifth Amendment to Purchase and Redevelopment Contract – PLACE E-Generation One, LLC. 7:30 p.m. CITY COUNCIL MEETING – Council chambers 1.Call to order 1a. Pledge of allegiance 1b. Roll call 2. Presentations 2a. Presentation accepting monetary donation from the Rotary Club of St. Louis Park 2b. Retirement recognition for Police Officer Dennis Maki 2c. Recognition of donations 2d. Comprehensive annual financial report for the year ended December 31, 2018 Meeting of June 17, 2019 City council agenda 3.Approval of minutes 3a. Joint city council and school board meeting minutes of April 16, 2019 3b. City council minutes of May 6, 2019 3c. Study session minutes of May 13, 2019 3d. City council minutes of May 20, 2019 3e. Rep. Omar meeting minutes May 31, 2019 4.Approval of agenda and items on consent calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda. Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda, or move items from Consent Calendar to regular agenda for discussion.) 5.Boards and Commissions -- None 6.Public hearings -- None 7.Requests, petitions, and communications from the public – None 8.Resolutions, ordinances, motions and discussion items 8a. Oak Park Village Apartments – private activity revenue bonds Recommended action: Motion to adopt Resolution providing preliminary approval to the issuance of multifamily housing revenue obligations and call for a public hearing. 8b. Bridgewater Bank Corporate Center – planned unit development major amendment Recommended action: Motion to approve first reading of an Ordinance amending Section 36-268-PUD 13 of the zoning code relating to the planned unit development (PUD) major amendment for the Bridgewater Bank Corporate Center and to set the second reading for July 15, 2019. 8c. Zoning ordinance regarding mobile uses Recommended action: Motion to approve first reading of an Ordinance amending Chapter 36 of the St. Louis Park Code of Ordinances regarding mobile uses, and set the second reading for July 15, 2019. 9. Communications – None Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the administration department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. Meeting of June 17, 2019 City council agenda Consent calendar 4a. Accept for filing city disbursement claims for the period of April 27, through June 7, 2019. 4b. Approve second reading and adopt Ordinance amending Division 9. M-X Mixed Use and additional amendments relating to the M-X district allowed land uses, density and building massing, and amendments relating to parking regulations, sign regulations, and architectural design for properties in the M-X district (Sections 36-115, 36-361, 36-362, and 36-366) and approve the Summary Ordinance for publication. 4c. Approve second reading and adopt Ordinance amending the Zero Waste Packaging Ordinance. 4d. Approve second reading and adopt Ordinance amending Chapter 36 of the St. Louis Park Code of Ordinances regarding home occupations, and approve the summary ordinance for publication. 4e. Adopt Resolution approving the First Amendment to the Preliminary Development Agreement between the EDA, city, and Sherman Associates relative to the Beltline Blvd Station Redevelopment Site. 4f. Adopt Resolution authorizing the city’s participation in local performance measurement program. 4g. Approve out-of-state travel of Mayor Jake Spano to attend the National League of Cities (NLC) Summer Board & Leadership Meeting in Indianapolis, IN on June 25-27, 2019. 4h. Authorize execution of an amendment to a professional services contract with Advanced Engineering and Environmental Services (AE2S) in the amount of $470,925 for the 2019 SCADA system replacement project (5318-5006). 4i. Adopt Resolution to recognize Dennis Maki for his 23 plus years of service. 4j. Adopt Resolution approving acceptance of a monetary donation from the Rotary Club of St. Louis Park in the amount of $2,000 for the Recreation Division’s Family Movie Nights program. 4k. Approve a temporary on-sale intoxicating liquor license for Beth El Synagogue, 5225 Barry Street, intended for the Common Sound Music Festival to be held June 30, 2019. 4l. Adopt Resolution supporting the City of St. Louis Park serving as a 2019-2020 MN GreenCorps member host site. 4m. Adopt Resolution declaring the official intent of the City of St. Louis Park to reimburse certain expenditures from the proceeds of bonds to be issued by the city. 4n. Adopt Resolution amending the St. Louis Park City Council rules of procedure relating to meeting start times and the pledge of allegiance. 4o. Approve resolution amending Resolution No. 19-002 establishing city council meeting dates for 2019. 4p. Approve the Cooperative Agreement and Use of Facilities ForSchool District Programs and City Programs. 4q. Adopt Resolution approving a mobility sharing license for Skinny Labs Inc., d/b/a Spin. 4r. Adopt a Resolution approving acceptance of a donated Vision Fitness Elliptical machine from Mackenzie Ann Kerska for the police department’s fitness facility. Meeting of June 17, 2019 City council agenda 4s. Adopt Resolution accepting work and authorizing final payment in the amount of $4,095.46 for the rehabilitation of Water Treatment Plant #16, Flag Avenue reservoir with Champion Coatings, Inc. (project No. 4018-5000, city contract No. 139-18). 4t. Approve for filing Fire Civil Service Commission minutes of February 11, 2019. 4u. Approve for filing Planning Commission minutes of March 20, 2019. 4v. Approve for filing Planning Commission minutes of April 3, 2019. 4w. Approve for filing Planning Commission minutes of April 17, 2019. St. Louis Park Economic Development Authority and regular city council meetings are carried live on civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for video on demand replays. The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. Meeting: Special study session Meeting date: June 17, 2019 Discussion item: 1 Executive Summary Title: Comprehensive Annual Financial Report (CAFR) for year ended December 31, 2018 – auditors discussion and review Recommended action: No action required. The information in this report will assist with the study session discussion. Policy consideration: What additional information may the council want relative to the 2018 CAFR? Summary: The city is required to have an annual independent audit of its financial statements in which the audit firm issues an opinion on the financial statements. The city received a “clean” audit opinion, or unmodified opinion, which means that Redpath and Company believe the financial statements, as presented by city staff, present fairly in all material respects, the financial position of the city as of December 31, 2018. David J. Mol – Partner from Redpath and Company, will present the information and key financial points with the city council. Once the city council reviews the CAFR for 2018, it will be submitted to the Office of the State Auditor as required and also submitted to the Government Finance Officers Association (GFOA) to be considered for the Achievement for Excellence in Financial Reporting certificate program for which the City of St. Louis Park has been recognized for 35 consecutive years. Financial or budget considerations: This report shows the City of St. Louis Park continues to remain in strong financial condition. Strategic priority consideration: Not applicable. Supporting documents: 1) 2018-Communication with those charged with governance 2) 2018-Auditor’s report on internal control 3) 2018-MN legal compliance report 4) 2018-Comprehensive annual financial report Prepared by: Mark Ebensteiner, Finance Manager Reviewed by: Nancy Deno, Deputy City Manager/HR Director Tim Simon, Chief Financial Officer Approved by: Tom Harmening, City Manager 55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota 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 St. Louis Park, Minnesota for the year ended December 31, 2018. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government 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 December 4, 2018. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters 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. As described in Note 9 to the financial statements, the City implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pension Plans for the year ended December 31, 2018. The most significant effect of this standard is that it changes the assumptions that are used in the calculating an estimate of this liability. We noted no transactions entered into by the City 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 City’s financial statements were management’s estimates of the Actuarial Accrued Liability related to OPEB, net pension liability, pension related deferred inflows and outflows of resources, pension expense and value of land held Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 2 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 2 for resale. Management’s estimates relating to the Actuarial Accrued Liability related to OPEB, net pension liability, pension related deferred outflows and inflows of resources and pension expense are based on actuarial studies. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was the disclosure of Defined Benefit Pension Plans in Note 7 – Defined Benefit Pension Plans to the financial statements. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit 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 clearly trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. There were no uncorrected misstatements that have an effect on our opinion of the financial statements. Disagreements with Management For purposes of this letter, a disagreement with management is 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 June 12, 2019. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 3 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 3 Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. 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. Other Matters We applied certain limited procedures to the management discussion and analysis, budgetary comparison information, Schedule of OPEB Liability and Related Ratios, the Schedules of Proportionate Share of Net Pension Liability, the Schedules of Pension Contributions, and the Notes to Required Supplementary Information, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 4 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 4 We are not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the information and use of the City of St. Louis Park, Minnesota’s City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 12, 2019 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 5 55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council and Management City of St. Louis Park, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements, and have issued our report thereon dated June 12, 2019. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of St. Louis Park, Minnesota’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 6 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Page 2 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of St. Louis Park, Minnesota’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of St. Louis Park, Minnesota’s internal control over compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 12, 2019 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 7 55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements, and have issued our report thereon dated June 12, 2019. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financings. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City of St. Louis Park, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we preformed additional procedures, other matters may have come to our attention regarding the City of St. Louis Park, Minnesota’s noncompliance with the above referenced provisions. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly. This communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 12, 2019 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 8 Proposals are due 4:00 p.m. April 24, 2017 Comprehensive Annual Financial Report For the year ended December 31, 2018 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 9 CITY OF ST. LOUIS PARK, MINNESOTA  COMPREHENSIVE  ANNUAL  FINANCIAL  REPORT  FOR THE FISCAL YEAR ENDED  DECEMBER 31, 2018  Thomas Harmening – City Manager  Prepared by:  Finance Division  Member of the Government Finance Officers’ Association  Of the United States and Canada  Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 10 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 11 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. I. INTRODUCTORY SECTION Letter of Transmittal 3 Certificate of Achievement 9 Services Chart 11 Officials of the City of St. Louis Park 13 II. FINANCIAL SECTION Independent Auditor's Report 17 Management's Discussion and Analysis 21 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 39 Statement of Activities Statement 2 40 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 42 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Statement 4 43 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement 5 44 Statement of Net Position - Proprietary Funds Statement 6 45 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 46 Statement of Cash Flows - Proprietary Funds Statement 8 47 Notes to Financial Statements 49 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 92 Schedule of Changes in Total OPEB Liability and Related Ratios Statement 10 96 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 11 97 Schedule of Pension Contributions - General Employees Retirement Fund Statement 12 98 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 13 99 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 14 100 Notes to RSI 101 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 12 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 15 111 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Statement 16 112 Special Revenue Funds: Combining Balance Sheet - Nonmajor Special Revenue Funds Statement 17 115 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds Statement 18 116 Capital Projects Funds: Combining Balance Sheet - Nonmajor Capital Projects Funds Statement 19 119 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Projects Funds Statement 20 120 Debt Service Funds: Combining Balance Sheet - Debt Service Funds Statement 21 122 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Major Debt Service Funds Statement 22 125 Redevelopment District Funds: Combining Balance Sheet - Redevelopment District Funds Statement 23 130 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Major Redevelopment District Funds Statement 24 134 Internal Service Funds: Combining Statement of Net Position Statement 25 140 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Statement 26 141 Combining Statement of Cash Flows Statement 27 142 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 13 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Position by Component Table 1 146 Changes in Net Position Table 2 148 Governmental Activities Tax Revenues by Source Table 3 153 Fund Balances of Governmental Funds Table 4 154 Changes in Fund Balances of Governmental Funds Table 5 156 Revenue Capacity: Assessed Value/Tax Capacity Value and Estimated Market Value of all Taxable Property Table 6 158 Property Tax Rates - Direct and Overlapping Governments Table 7 160 Principal Property Taxpayers Table 8 162 Property Tax Levies and Collections Table 9 163 Debt Capacity: Ratios of Outstanding Debt By Type Table 10 164 Ratios of General Bonded Debt Outstanding Table 11 165 Direct and Overlapping Governmental Activities Debt Table 12 167 Legal Debt Margin Information Table 13 168 Pledged Revenue Bond Coverage Table 14 170 Demographic and Economic Information: Demographic Statistics Table 15 171 Principal Employers Table 16 173 Operating Information: Full-Time Equivalent Employees by Function Table 17 174 Operating Indicators by Function Table 18 176 Capital Asset Statistics by Function Table 19 177 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 14 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 15 I. INTRODUCTORY SECTION Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 16 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 17 St. Louis Park City Hall   •   5005 Minnetonka Blvd., St. Louis Park, MN 55416  www.stlouispark.org   •   Phone: 952.924.2500   •   TTY: 952.924.2518  June 12, 2019  Honorable Mayor and Members of the City Council  City of St. Louis Park, Minnesota  Minnesota statutes require all cities to issue an annual report on its financial position and activity  prepared in accordance with generally accepted accounting principles (GAAP), and audited in  accordance with generally accepted auditing standards by a firm of licensed certified public  accountants, or the Office of the State Auditor.  Pursuant to that requirement, we hereby issue  the comprehensive annual financial report of the City of St. Louis Park for the fiscal year ended  December 31, 2018.    This report consists of management’s representations concerning the finances of the City of St.  Louis Park.  Consequently, management assumes full responsibility for the completeness and  reliability of all of the information presented in this report.  To provide a reasonable basis for  making  these representations,  management of  the  City of  St. Louis Park established  a  comprehensive internal control framework that is designed both to protect the government’s  assets from loss, theft, or misuse and to compile sufficient reliable  information  for  the  preparation for the City of St. Louis Park’s financial statements  i n  c onformity  w ith  G AAP.  B ecause   the cost of internal controls should not outweigh their benefits, the City of St. Louis Park’s  comprehensive framework of internal controls has been designed to provide reasonable rather  than absolute assurance that the financial statements will be free from material misstatement.   As management, we assert that, to the best of our knowledge and belief, this financial report is  complete and reliable in all material respects.  The  City  of  St. Louis  Park’s  f inancial statements  have  b een  a ud ited by Redpath and Company Ltd.,  a firm of licensed certified public accountants.  The goal of the independent audit was to provide  reasonable assurance that the financial statements of the City of St. Louis Park for the fiscal year  ended December 31, 2018, are free of any material misstatement.  The independent audit  involved examining, on a test basis, evidence supporting the amounts and disclosures in the  financial statements; assessing the accounting principles used and significant estimates made by  management; and evaluating the overall financial statement presentation.  The independent  auditor concluded, based upon the audit, that there was a reasonable basis for rendering an  unmodified opinion that the City of St. Louis Park’s financial statements for the fiscal year ended  December 31, 2018, are fairly presented in conformity with GAAP.  The independent auditor’s  report is presented as the first component of the financial section of this report.  Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 18 St. Louis Park City Hall   •   5005 Minnetonka Blvd., St. Louis Park, MN 55416  www.stlouispark.org   •   Phone: 952.924.2500   •   TTY: 952.924.2518  Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s  report and  provides a  narrative  introduction,  overview,  and analysis of the basic financial  statements.  This letter of transmittal is designed to complement the MD&A and should be read  in conjunction with it.    Profile of the Government  The City of St. Louis Park, established in 1886, is a first ring community located immediately west  of Minneapolis.  Thanks to its convenient location, St. Louis Park combines all the cultural  amenities of a large metropolitan area with small town friendliness.  The City of St. Louis Park  currently occupies a land area of 10.8 square miles and serves a population of 49,039.  The City  of  S t. L ouis  P ark  is  e mpowered  t o  levy  a p roperty  tax  on  b oth  r eal and personal properties located  within its boundaries.  While it also is empowered by state statutes to extend its corporate limits  by annexation, St. Louis Park is a completely developed community and is bordered on all sides  by other incorporated communities.  St. Louis Park operates under the council/manager form of government.  Policy‐making and  legislative authority are vested in a City Council consisting of a mayor, two at‐large council  members, and four ward council members.  The City Council is responsible, among other things,  for  passing ordinances, adopting  the  budget,  appointing committees, and  hiring  the City  Manager.  The City Manager is responsible for carrying out the policies and ordinances of the  council, for overseeing the day‐to‐day operations of the City government, and for appointing the  heads of the various departments.  The council is elected on a non‐partisan basis.  Council  members serve four‐year staggered terms.   The City of St. Louis Park provides a full range of services, including police and fire protection;  redevelopment, the construction  and  maintenance  of highways, streets, and other  infrastructure; water, sewer, storm water, and refuse services, as well as recreational activities  and cultural events.    The annual budget serves as the foundation for the City of St. Louis Park’s financial planning and  control. All  departments  and  agencies of  the  City of  St.  Louis Park submit requests  for  appropriation to the City Manager in June of each year.  The City Manager uses these requests  as the starting point for developing a proposed budget.  The City Manager then presents this  proposed  budget  to  the  council for  review prior  to  adoption of a  preliminary  tax  levy by  September 30.  The council is required to hold a public hearing on the proposed budget and to  adopt a final budget no later than December 28.  Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 19 St. Louis Park City Hall   •   5005 Minnetonka Blvd., St. Louis Park, MN 55416  www.stlouispark.org   •   Phone: 952.924.2500   •   TTY: 952.924.2518  The appropriated budget is prepared by fund, (e.g. General), function (e.g., public safety), and  department (e.g., police).  Department directors may make transfers of appropriation within a  department,  but  not  between personnel  and  non‐personnel categories.  Transfers of  appropriations between funds, however, require the approval of the City Council.  Budget to  actual comparisons are provided in this report for the general fund for which an appropriated  annual budget has been adopted.  These comparisons are presented starting on page 92 as part  of the basic financial statements for the governmental funds.  Factors Affecting Financial Condition  The information presented in the financial statements is perhaps best understood when it is  considered from the broader perspective of the specific environment within which the City of St.  Louis Park operates.  Local economy  The City of St. Louis Park currently enjoys a durable economic environment and local indicators  point to continued stability versus other communities in the Twin City Metro Area.  The City of  St. Louis Park has a well‐diversified tax base, with a sizeable full valuation that includes retail,  manufacturing, and health care components, as well as diverse housing stock.  Redevelopment  and Development efforts remain very strong in St Louis Park.  Redevelopment/Development  The City of St. Louis Park is committed to evaluating, preserving, and improving the housing stock  available within the community.  It is important that a wide variety of housing alternatives be  available within the community.  Redevelopment projects over the past ten years have provided  a mix of apartment, co‐op, condominium, town‐home, and single family units.  Many of these  housing developments contain a commercial component including both retail and services to  support the new housing and create more livable neighborhoods.  The City has used its tax  increment financing authority in many of these projects in order  to  m eet specific c ommunity and   economic development objectives.    Some of the larger projects include:  4800 Excelsior  The latest redevelopment along the Excelsior Blvd commercial corridor is Weidner Apartment  Homes’ 4800 Excelsior.  The six‐story, mixed‐use building is located immediately west of the  landmark Excelsior & Grand. It contains 164 apartment units (146 market‐rate and 18  affordable units at 60% of the area median income) and 28,228 square feet of ground floor  commercial space leased to Fresh Thyme grocery.  Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 20 St. Louis Park City Hall   •   5005 Minnetonka Blvd., St. Louis Park, MN 55416  www.stlouispark.org   •   Phone: 952.924.2500   •   TTY: 952.924.2518  Parkway 25  Sela Group redeveloped the former Vescio’s restaurant and Valu Stay Inn sites at 4001 County  Road 25 and 4025 Hwy. 7. The new five‐story, mixed‐use, LEED Silver certified building consists  of 112 luxury apartment units and 12,000 square feet of ground floor commercial space on a  combined 1.57‐acre parcel.   Central Park West Apartments  DLC Residential completed construction on a six‐story, multi‐family building called Central Park  West Apartments within The West End area off of I‐394 and State Hwy 100. The 199‐unit luxury  apartment building is adjacent to a large public gathering (civic) space for both active and  passive recreation. It is Phase I of the Central Park West redevelopment.  AC Hotel by Marriott  TPI Hospitality constructed a 6‐story, 126‐room AC Hotel by Marriott immediately next door to  the Central Park West Apartments. The hotel has a rooftop amenity space with views of  downtown Minneapolis, as well as a small bar and restaurant. It is Phase III of the Central Park  West redevelopment.   Courtyard by Marriott Hotel  CSM Corporation completed construction on a six‐story, 142‐room Courtyard by Marriott hotel  next to the existing Marriott West hotel in the northwest quadrant of I‐394 and US 169. The  two hotels have a pedestrian connection allowing customers to have full access to amenities  offered at each hotel.  The City also sponsors a comprehensive rehabilitation loan program available to single family  and multi‐family homeowners. The first programs were started in the mid 1970’s and have  evolved into a comprehensive set of programs to ensure the preservation and enhancement of  the City’s housing stock.  Finally, the City has a Convention and Visitors Bureau, which markets the desirability of St. Louis  Park for both business and recreational opportunities.  This continues to be a very strong partner  with the City of St. Louis Park which has brought increased business and activities to the City.   Long‐term Financial Planning  The  City maintains a  10  year Long  Range  Financial  Management Plan  that incorporates  anticipated revenues, expenditures, capital outlay, and tax impacts for all relevant funds.  The  plan anticipates opportunities or challenges, allows for changes to then be made, with the goal  of achieving long‐term sustainability.  The plan is used in conjunction with the annual budget  process and Capital Improvement Plan, which then allows the City Council to evaluate various  budget decisions prior to adoption.  This plan has proven its value by playing a significant role in  Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 21 St. Louis Park City Hall   •   5005 Minnetonka Blvd., St. Louis Park, MN 55416  www.stlouispark.org   •   Phone: 952.924.2500   •   TTY: 952.924.2518  maintaining  the  C ity’s  AAA  b ond  r ating  from  S tandard  & Poor’s, which assists in keeping the costs  of borrowing for the City of St. Louis Park at a low rate.  Awards  The Government Finance Officers Association of the United States and Canada (GFOA) awarded  a Certificate of Achievement for Excellence in Financial Reporting to the City of St. Louis Park for  its comprehensive annual financial report for the fiscal year ended December 31, 2017.  This was  the thirty‐fifth consecutive year that the government received this prestigious award.  In order  to be awarded a Certificate of Achievement, a government must publish an easily readable and  efficiently  organized comprehensive  annual  financial  report.   The report must satisfy both  generally accepted accounting principles and applicable legal requirements.  A Certificate of Achievement is valid for a period of one year only.  We believe that our current  comprehensive  annual  financial  report continues  to meet  the Certificate of Achievement  Program’s requirements and we are submitting it to the GFOA to determine its eligibility for  another certificate.  Acknowledgements  The preparation of this report would not have been possible without the efficient and dedicated  services of the entire staff of the Finance Division and other key City of St. Louis Park personnel.   We would like to express our appreciation to all members of the organization who assisted and  contributed to the preparation of the report.  Credit also must b e  g iven  t o  the  M ayor  a nd  t he  C ity   Council for their unfailing support for maintaining the highest s tandards of  p rofessionalism  i n t he   management of the City of St. Louis Park’s finances.  Respectfully submitted,  Thomas Harmening Timothy Simon  City Manager Chief Financial Officer  Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 22 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 23 G overnm ent Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of St. Louis Park Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2017 /ill ""#:"' I·. ·'l· •· .. ·.·.·.· ··• ~ · ·.I·.··".· .. (aRfla. F 7LURA Executive Director/CEO Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 24 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 25 SERVICES CHART Citizens City Council City Manager Boards & Commissions Board of Zoning Appeals Human Rights Planning Police Advisory Fire Civil Service Parks & Recreation Telecommunications Advisory Environment & Sustainability Multicultural Advisory Group ADMINISTRATIVE SERVICES Records General Admin Human Resources Payroll Racial Equity & Inclusion Elections City Clerk Finance Assessing Environment and Sustainability Public Art COMMUNITY DEVELOPMENT Planning/Zoning Economic Development Housing INFORMATION RESOURCES Cable Television Technology Services Support Services WEB Communications & Marketing INSPECTIONS Code Enforcement Building Housing Point of Sale Facility Maintenance Licensing OPERATIONS & RECREATION Rec Ctr & Programs Nature Center Environmental Parks Fleet Utility Operations Streets/Traffic Refuse/Recycling Organics POLICE Patrol Support Services Crime Prevention 911 Dispatch Animal Control Community Policing ENGINEERING Engineering Projects Storm Water Sidewalk/Trail projects Pavement FIRE Fire Prevention Fire Suppression EMS/Rescue Emergency Preparedness Education & Inspection Auditors Legal Charter Commission Economic Development Authority Housing Authority Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 26 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 27 OFFICIALS OF THE CITY OF ST. LOUIS PARK Council Jake Spano Mayor EDA Commissioner Term Expires 1/2020 Steve Hallfin At-Large A Councilmember EDA President Term Expires 1/2020 Thom Miller At-Large B Councilmember EDA Commissioner Term Expires 1/2020 Margaret Rog Ward 1 Councilmember EDA Treasurer Term Expires 1/2022 Anne Mavity Ward 2 Councilmember EDA Commissioner Term Expires 1/2022 Rachel Harris Ward 3 Councilmember EDA Commissioner Term Expires 1/2022 Tim Brausen Ward 4 Councilmember EDA Vice President Term Expires 1/2022 Executive Staff Thomas Harmening, City Manager Nancy Deno, Deputy City Manager/Human Resources Director Mike Harcey, Police Chief Steve Koering, Fire Chief Karen Barton, Community Development Director Brian Hoffman, Inspections Director Timothy Simon, Chief Financial Officer Debra Heiser, Engineering Director Clint Pires, Chief Information Officer Cindy Walsh, Operations & Recreation Director Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 28 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 29 II. FINANCIAL SECTION Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 30 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 31 55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 32 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of December 31, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 9 to the financial statements, City of St. Louis Park, Minnesota adopted new accounting guidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions for the year ended December 31, 2018. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison, Schedule of Changes in Total OPEB Liability and Related Ratios, the Schedules of Proportionate Share of Net Pension Liability, the Schedules of Pension Contributions, and the Notes to the Required Supplementary Information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 33 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements. The introductory section, combining fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules, are fairly stated in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 12, 2019, on our consideration of the City of St. Louis Park, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of St. Louis Park, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 12, 2019 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 34 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 35 City of St. Louis Park Management’s Discussion and Analysis As management of the City of St. Louis Park, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2018. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which starts on page 3 of this report. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $176,361,906 (net position). Of this amount, $30,078,006 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors. The City’s total net position increased by $4,057,345 as a result of revenues in excess of expenses. $1,460,245 was a result of an increase of net position within business-type activities, and $2,597,100 from an increase of net position within governmental activities. As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $58,996,381 a decrease of $2,203,003 in comparison with the prior year. The decrease was primarily related to capital outlay expenditures. Approximately 22 percent of this total amount, $12,748,025 is either nonspendable or restricted for specific purposes. The remaining fund balance was committed by City Council, assigned or unassigned. At the end of the current fiscal year, unassigned fund balance for the General fund was $17,697,405 (45.3 percent) of the total subsequent year budgeted General fund expenditures. The City’s total bonded debt increased $5,370,000 during 2018. New debt issued, and principal paid during the year was $8,800,000 and $3,430,000 respectively. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. The following chart on page 22 shows how the various parts of this annual report are arranged and related to one another. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of combining fund financial statements and schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements. Internal service funds statements are also included, reflecting balances prior to their elimination from the government-wide financial statements, to avoid “doubling-up” effect within the governmental and business-type activities columns of said statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 36 City of St. Louis Park Management’s Discussion and Analysis Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 37 City of St. Louis Park Management’s Discussion and Analysis Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Government-wide Statements Governmental Funds Proprietary Funds Scope Entire City government and the City’s component units The activities of the City that are not proprietary, such as police, fire and parks Activities the City operates similar to private businesses, such as the water and sewer system Required financial statements • Statement of Net Position • Statement of Activities • Balance Sheet • Statement of Revenues, Expenditures and Changes in Fund Balances • Statement of Net Position • Statement of Revenues, Expenses and Changes in Net Position • Statement of Cash Flows Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long-term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short-term and long-term Type of deferred outflows/inflows of resources information All deferred outflows/inflows of resources, regardless of when cash is received or paid Only deferred outflows of resources expected to be used up and deferred inflows of resources that come due during the year or soon thereafter; no capital assets included All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of inflow/outflow information All revenues and expenses during the year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid Fund Financial Statements Figure 2 Major features of the Government-wide and Fund Financial Statements Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 38 City of St. Louis Park Management’s Discussion and Analysis Government-wide financial statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public information, operations and recreation, engineering, housing and rehabilitation, housing maintenance, social and economic development, and interest on long-term debt. The business-type activities of the City include water, sewer, solid waste, and storm water operations. The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate Economic Development Authority (EDA) for which the City is financially accountable. Financial information for this component unit is not reported separately from the financial information presented for the primary government itself. The government-wide financial statements start on page 39 of this report. Fund financial statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 39 City of St. Louis Park Management’s Discussion and Analysis information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains nine individual major governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Housing Rehabilitation, Debt Service, Development EDA, and Redevelopment District, all of which are considered to be major funds. Data from the other ten governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts annual appropriated budgets for the General Fund. Budgetary comparison statements are provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 42 of this report. Proprietary funds – The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, solid waste, and storm water operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, sewer, solid waste and storm water operations, all of which are considered to be major funds of the City. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for maintaining its fleet of vehicles, management information systems, replacement of City equipment, employee benefits, compensated absences, pension benefit and uninsured losses. Because all of these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the governmental-wide financial statements. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements starts on page 45 of this report. Notes to the financial statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 49 of this report. Other Supplementary Information - In addition to the basic financial statements and accompanying notes, Required Supplementary Information, presents a detailed budgetary comparison schedule for the General Fund to demonstrate compliance with the budget. In Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 40 City of St. Louis Park Management’s Discussion and Analysis accordance with the requirements of GASB Statement No. 75, it also includes other post- employment benefit plan schedule of changes in total OPEB liability and related ratios. In accordance with the requirements of GASB Statement No. 68, also included is defined benefit pension plan information: a) schedules of the City’s contributions and b) schedules of the City’s proportionate share of net pension liability. These schedules can be found in the Required Supplementary Information section of this report. The combining statements and schedules referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information starting on page 92 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $176,361,906 at the close of the most recent fiscal year. A portion of the City’s net position (74 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 41 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Net Position Increase Increase 2018 2017 (Decrease) 2018 2017 (Decrease) Assets Current and other assets 83,718,324$ 85,023,101$ (1,304,777)$ 11,425,279$ 8,681,376$ 2,743,903$ Capital assets 141,268,586 135,655,580 5,613,006 43,327,483 38,632,979 4,694,504 Total assets 224,986,910 220,678,681 4,308,229 54,752,762 47,314,355 7,438,407 Total deferred outflows of resources 13,978,083 17,018,923 (3,040,840) - - - Liabilities Other liabilities 10,706,234 8,772,608 1,933,626 2,268,442 1,818,815 449,627 Noncurrent liabilities 65,520,989 68,598,169 (3,077,180) 20,328,036 14,799,501 5,528,535 Total liabilities 76,227,223 77,370,777 (1,143,554) 22,596,478 16,618,316 5,978,162 Total deferred inflows of resources 18,532,148 18,718,305 (186,157) - - - Net position Net investment in capital assets 107,090,668 103,279,857 3,810,811 25,992,377 25,716,982 275,395 Restricted 13,200,855 11,439,977 1,760,878 - - - Unrestricted 23,914,099 26,888,688 (2,974,589) 6,163,907 4,979,057 1,184,850 Total net position 144,205,622$ 141,608,522$ 2,597,100$ 32,156,284$ 30,696,039$ 1,460,245$ Governmental Activities Business-type Activities An additional portion of the City’s net position $13,200,855 represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $30,078,006 may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business-type activities. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 42 City of St. Louis Park Management’s Discussion and Analysis Analysis of the City’s Operations – The following table provides a summary of the City’s operations for the year ended December 31, 2018. Overall, both the governmental and business- type activities revenue and expenses remained stable. Governmental activities increased the City’s net position by $2,597,100. Business-type activities increased the City’s net position by $1,460,245. City of St. Louis Park’s Changes in Net Position Increase Increase 2018 2017 (Decrease) 2018 2017 (Decrease) Revenues Program revenues Charges for services 8,765,915$ 7,807,878$ 958,037$ 20,066,320$ 19,404,164$ 662,156$ Operating grants and contributions 2,666,090 3,670,054 (1,003,964) 174,250 159,376 14,874 Capital grants and contributions 3,526,377 5,205,879 (1,679,502) 429,928 279,801 150,127 General revenues Property taxes and TIF 43,715,743 40,544,785 3,170,958 - - - Franchise fees 3,804,678 3,763,394 41,284 - - - Lodging taxes 1,021,855 -1,021,855 - - - Grants and contributions not restricted to specific programs 618,645 590,978 27,667 - - - Unrestricted investment earnings 739,130 408,945 330,185 159,537 65,900 93,637 Gain on disposal of capital assets 1,751,339 106,204 1,645,135 - - - Miscellaneous 491,591 2,091,334 (1,599,743) - - - Total revenues 67,101,363 64,189,451 2,911,912 20,830,035 19,909,241 920,794 Expenses General government 11,051,775 10,648,181 403,594 - - - Public safety 17,621,109 17,870,131 (249,022) - - - Public information 642,350 647,316 (4,966) - - - Operations and recreation 15,146,290 13,448,470 1,697,820 - - - Engineering 7,491,753 7,859,907 (368,154) - - - Housing and rehabilitation 530,192 480,911 49,281 - - - Housing maintenance 19,768 72,244 (52,476) - - - Social and economic development 12,549,378 10,987,654 1,561,724 - - - Interest on long-term debt 1,456,241 1,511,329 (55,088) - - - Water - - - 5,445,760 4,786,816 658,944 Sewer - - - 6,083,196 6,227,919 (144,723) Solid waste - - - 3,463,412 3,390,874 72,538 Storm water - - - 2,372,829 1,611,785 761,044 Total expenses 66,508,856 63,526,143 2,982,713 17,365,197 16,017,394 1,347,803 Increase (decrease) in net position before transfers 592,507 663,308 (70,801) 3,464,838 3,891,847 (427,009) Transfers 2,004,593 2,075,742 (71,149) (2,004,593) (2,075,742) 71,149 Change in net position 2,597,100 2,739,050 (141,950) 1,460,245 1,816,105 (355,860) Net position, January 1 141,608,522 138,869,472 2,739,050 30,696,039 28,879,934 1,816,105 Net position, December 31 144,205,622$ 141,608,522$ 2,597,100$ 32,156,284$ 30,696,039$ 1,460,245$ Governmental Activities Business-type Activities Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 43 City of St. Louis Park Management’s Discussion and Analysis Governmental Activities Governmental activities increased the City’s net position by $2,597,100. Overall the governmental activities in 2018 were stable, with a slight increase in both revenues and expenses. Revenues increased by $2.9 million, primarily related to property tax/TIF general revenues and a gain on sale of land held for resale of $1.6 million, while expenses increased by $2.9 million, with the largest increases in operations and recreation ($1.7 million) and social and economic development ($1.5 million) relating to project costs. Business-type Activities Business-type activities increased the City’s net position by $1,460,245. Revenues increased by $920 thousand, expenses increased $1.3 million and net transfers were comparable to prior year. The increase in revenues was the result of increased utility rates and the increase in expenses was a result of increased operating expenses to provide services. Governmental Activities Revenues - The following chart illustrates the City’s revenue by source for its governmental activities: Revenues by Source - Governmental Activities Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 44 City of St. Louis Park Management’s Discussion and Analysis Expenses - The following chart illustrates the City’s expenses and program revenues for its governmental activities: Expenses and Program Revenues - Governmental Activities Business-type Activities Revenues - The following chart illustrates the City’s revenue by source for its business-type activities: Revenue Sources - Business-type Activities Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 45 City of St. Louis Park Management’s Discussion and Analysis Expenses - The following chart illustrates the City’s expenses and program revenues for its business-type activities: Expense and Program Revenues - Business-type Activities Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the year. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 46 City of St. Louis Park Management’s Discussion and Analysis Governmental funds – As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $58,996,381, a decrease of $2,203,003 in comparison with the prior year. Approximately 18 percent of this total amount, $10,414,969, constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance ($48,581,412) is not available for new spending because it is either 1) nonspendable ($278,632), 2) restricted ($12,469,393), 3) committed ($1,064,284) or 4) assigned ($34,869,103) for specific purposes. Increase 2017 2018 (Decrease) General 18,789,914$ 19,254,384$ 464,470$ Housing Rehabilitation 4,335,903$ 5,193,532$ 857,629$ Debt Service 2,285,277$ 3,738,092$ 1,452,815$ Development EDA 23,821,044$ 24,888,020$ 1,066,976$ Redevelopment District 1,224,227$ 1,737,245$ 513,018$ Fund Balances December 31, Major Funds The Redevelopment District fund is comprised of all tax increment districts in the City. The increase in fund balance of $513,018 is due to collection of property taxes and tax increments in excess of expenditures and transfers out. The fund balance of the Debt Service fund increased $1,452,815 due to collection of property taxes and transfers in exceeding scheduled bond principal and interest payments. The Development EDA fund balance increased $1,066,976 as a result of proceeds from the sale of land held for resale. Although the fund has $25 million in fund balance, approximately $9.8 million is made up of loans receivable and land held for resale. The City’s General Fund balance increased $464,470 during the current fiscal year. A combination of higher than anticipated revenues and lower than anticipated expenditures resulted in the increase. Significant positive variances included property tax revenue of $874,254, which was primarily excess tax increment. Also, intergovernmental revenue was $143,713 over budget which primarily pertains to higher than anticipated highway user tax. Operating expenditures were also approximately $690,000 under budget for fiscal year 2018, with the larget positive variances in public safety ($345,520) and operations and recreation ($266,970). The Housing Rehabilitation fund balance increased $857,629 as a result of special assessment and miscellaneous revenues exceeding expenditures by $1,038,931 prior to net transfers out of $181,000. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 47 City of St. Louis Park Management’s Discussion and Analysis Proprietary funds – The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of the year, unrestricted net position of the Water, Sewer, Solid Waste, and Storm Water funds amounted to $9,397,386. Total net position increased by $1,711,895. This increase was primarily a result of a planned increase in fees to cover infrastructure replacement. General Fund Budgetary Highlights Actual revenues were $1,337,777 over budget and expenditures were $690,542 under budget; along with transfers and other financing sources, the end result was an increase in fund balance of $464,470. Favorable revenue and expenditure variances accounted for the increase in fund balance. The largest favorable revenue variance was property taxes ($874,254). The largest favorable expenditure variances were in the public safety function ($345,520) and the operations and recreation function ($266,970). Capital Asset and Debt Administration The City’s investment in capital assets for its governmental and business type activities as of December 31, 2018 was $184,596,069 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City’s investment in capital assets for the current fiscal year was 5.9 percent. Major capital asset events during the current fiscal year included the following: Aquila Park softball field and lighting project Dakota Park field lighting project Street Rehab projects Connect the park trail, sidewalk and bike improvements Completion of water treatment plant #4 upgrade $2.1 million of capital asset acquisition within the capital replacement fund For the year ending December 31, 2018, the City has elected to use the modified approach as defined in GASB Statement No. 34 for infrastructure reporting for its Pavement Management Program, which includes streets. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements: 1)The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (a) an up to-date inventory; (b) perform condition assessments and summarize the results using a measurement scale; and (c) estimate annual amount to maintain and preserve at the established condition assessment level. 2)The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. The City’s policy is to achieve an average rating of good (70) for all streets. Over the course of 2014, 2015 and 2016, all areas were assessed, providing a new overall condition rating. Going Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 48 City of St. Louis Park Management’s Discussion and Analysis forward, two areas will be assessed every year. The City increased the number of areas and frequency assessed each year in an effort to get more comparative data and more thoroughly analyze the street infrastructure system. As of the last complete assessment, the City’s street system was rated at an Overall Condition Index (OCI) of 67, which is slightly below the City’s policy level. City staff is working with the City Council to develop a plan to increase this number back to the policy level. This plan includes the planned improvements to commercial and industrial roads that were not a part of the plan in the past. The City’s streets are constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun’s ultra- violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development trenching operations; (4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through short- term maintenance activities such as pothole patching, crack sealing, seal coating, mill and overlaying. The City expended $4,201,721 on street maintenance for the year ending December 31, 2018. The physical condition assessment completed in 2012 was the first assessment that reported on the entire system. The City has estimated that the amount of annual expenditures required maintaining the City’s street system at the average OCI rating of good is approximately $4,839,000. The annual expenditures will vary from year to year, depending on the area of the City being targeted that year. The estimate for the year ending December 31, 2018 was $4,255,000, which is comparable to the actual expenditures for the year. This was a result of the planning to increase the annual improvements to get condition back to policy level. City of St. Louis Park’s Capital Assets (net of accumulated depreciation) Increase Increase 2018 2017 (Decrease) 2018 2017 (Decrease) Land 16,991,835$ 16,991,835$ -$ 515,083$ 515,083$ -$ Permanent easments 1,429,976 1,429,976 - -- - Buildings and structures 39,920,316 41,151,267 (1,230,951) 301,850 677,838 (375,988) Improvements other than buildings 25,925,478 20,479,878 5,445,600 3,611,066 3,634,509 (23,443) Machinery and equipment 4,396,460 4,028,846 367,614 5,124,355 5,555,888 (431,533) Fleet 6,564,770 5,962,679 602,091 - - - Infrastructure - Streets 26,011,544 26,011,544 - - - - Infrastructure - Other 15,845,445 13,773,828 2,071,617 33,775,129 21,762,201 12,012,928 Construction in progress 4,182,762 5,825,727 (1,642,965) -6,487,460 (6,487,460) Total 141,268,586$ 135,655,580$ 5,613,006$ 43,327,483$ 38,632,979$ 4,694,504$ Governmental Activities Business-type Activities Additional information on the City’s capital assets can be found in Note 5 on pages 65-66 of this report. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 49 City of St. Louis Park Management’s Discussion and Analysis Debt administration At the end of the current fiscal year, the City had total bonded debt outstanding of $56,280,000. Of this amount, $32,290,000 comprises debt issued for improvement and capital projects, of which $28,975,000 will be repaid by ad valorem tax levies and $3,315,000 will be repaid through the collection of special assessments. In addition, $2,995,000 is general obligation tax increment debt which financed redevelopment projects and will be repaid from the tax increments resulting from increased tax capacity of the redevelopment properties. The remaining $20,995,000 of the City’s bonded debt represents general obligation revenue bonds with $19,475,000 to be repaid by the Water, Sewer, and Storm Water fund user charges and $1,520,000 from revenues collected from the benefitting property. Furthermore, the City has long-term debt of $180,382 for capital leases payable, $4,095,604 for compensated absences, $3,500,643 for other postemployment benefits payable and $20,494,066 for the net pension liability. City of St. Louis Park’s Outstanding Debt General Obligation Bonds, Revenue Bonds, and other Debt Increase Increase 2018 2017 (Decrease) 2018 2017 (Decrease) G.O. Improvement 28,975,000$ 28,375,000$ 600,000$ 19,475,000$ 14,070,000$ 5,405,000$ G.O. Tax Increment 2,995,000 3,410,000 (415,000) - - - G.O. Special Assessment 3,315,000 3,495,000 (180,000) - - - G.O. Revenue Bonds 1,520,000 1,560,000 (40,000) - - - Bond issuance premium/discount 445,293 497,335 (52,042) 677,443 375,930 301,513 Capital leases 180,382 165,931 14,451 - - - Compensated absences 4,095,604 3,895,292 200,312 175,593 145,285 30,308 Other postemployment benefits 3,500,643 3,250,130 250,513 -208,284 (208,284) Net pension liability 20,494,066 23,949,480 (3,455,414) --- Total 65,520,988$ 68,598,168$ (3,077,180)$ 20,328,036$ 14,799,499$ 5,528,537$ Governmental Activities Business-type Activities Principal payments during 2018 totaled $3,430,000. The City maintains an “AAA” rating from Standard & Poor’s for general obligation debt. State statutes limit the amount of general obligation debt a governmental entity may issue to 3 percent of its total assessed valuation. The current debt limitation for the City is $200,205,657 which is significantly more than the City’s outstanding general obligation debt. Additional information on the City’s long-term debt can be found in Note 6 on pages 67-72 of this report. Economic Factors, Subsequent Year Budgets, Rates and Changes in Structure The City estimates that the demand for City services will continue to grow as the economy improves. The property tax levy is set annually and is adjusted as necessary to fund the cost of providing services to our citizens and customers. Charges for services are evaluated each year and adjusted to support operations and capital outlay. All of these factors were considered in preparing the City’s budget for the 2019 fiscal year. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 50 City of St. Louis Park Management’s Discussion and Analysis Requests for Information This financial report is designed to provide our citizens, customers, and creditors with a general overview of the City of St. Louis Park’s finances and to show the City’s accountability for the resources it is entrusted. Questions concerning any of the information provided in the report, or requests for additional financial information, can be directed to the City of St. Louis Park Finance Department at 5005 Minnetonka Boulevard, St. Louis Park, Minnesota, 55416, 952-924-2500, or Tim Simon – Chief Financial Officer at tsimon@stlouispark.org. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 51 BASIC FINANCIAL STATEMENTS Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 52 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 53 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2018 Governmental Business-Type Activities Activities Totals Assets Cash and investments 57,240,488$ 9,556,525$ 66,797,013$ Accrued interest receivable 135,340 22,951 158,291 Due from other governments 1,745,301 17,209 1,762,510 Accounts receivable 1,430,702 4,018,572 5,449,274 Taxes receivable 457,110 - 457,110 Prepaid items 557,593 27,378 584,971 Inventories 208,730 40,995 249,725 Deposits receivable - 700 700 Internal balances 3,233,479 (3,233,479) - Special assessments receivable 6,247,262 974,428 7,221,690 Loans receivable 7,738,313 - 7,738,313 Pledges receivable 1,250,000 - 1,250,000 Land held for resale 3,474,006 - 3,474,006 Capital assets Nondepreciable assets 48,616,117 515,083 49,131,200 Depreciable assets (net of accumulated depreciation)92,652,469 42,812,400 135,464,869 Total assets 224,986,910 54,752,762 279,739,672 Deferred outflows of resources Related to pensions 13,734,236 - 13,734,236 Related to OPEB 243,847 - 243,847 Total deferred outflows of resources 13,978,083 - 13,978,083 Liabilities Accounts payable 3,478,309 527,144 4,005,453 Salaries payable 1,959,207 153,131 2,112,338 Due to other governments 866,721 291,199 1,157,920 Contracts payable 1,584,905 480,707 2,065,612 Accrued interest payable 543,668 251,279 794,947 Deposits payable 1,382,450 130,855 1,513,305 Unearned revenue 890,974 434,127 1,325,101 Noncurrent liabilities Due within one year 5,547,953 2,200,357 7,748,310 Due in more than one year 59,973,036 18,127,679 78,100,715 Total liabilities 76,227,223 22,596,478 98,823,701 Deferred inflows of resources related to pensions 18,532,148 - 18,532,148 Net position Net investment in capital assets 107,090,668 25,992,377 133,083,045 Restricted for Economic development 5,803,367 - 5,803,367 E-911 purposes 272,840 - 272,840 Community development 461,828 - 461,828 Debt service 4,727,310 - 4,727,310 Cable TV equipment 280,989 - 280,989 Police and fire purposes 1,654,521 - 1,654,521 Unrestricted 23,914,099 6,163,907 30,078,006 Total net position 144,205,622$ 32,156,284$ 176,361,906$ The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 54 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2018 Operating Capital Charges For Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities General government 11,051,775$ 1,214,710$ 97,870$ -$ Public safety 17,621,109 4,049,914 1,212,054 172,499 Public information 642,350 576 - - Operations and recreation 15,146,290 2,516,191 127,530 145,000 Engineering 7,491,753 136,648 759,968 679,382 Housing and rehabilitation 530,192 633,932 - 347,874 Housing maintenance 19,768 - 52,033 - Social and economic development 12,549,378 213,944 195,489 2,181,622 Interest on long-term debt 1,456,241 - 221,146 - Total governmental activities 66,508,856 8,765,915 2,666,090 3,526,377 Business-Type activities Water 5,445,760 6,469,268 9,200 181,051 Sewer 6,083,196 7,360,679 3,187 65,668 Solid waste 3,463,412 3,348,948 161,863 - Storm water 2,372,829 2,887,425 - 183,209 Total business-type activities 17,365,197 20,066,320 174,250 429,928 Total 83,874,053$ 28,832,235$ 2,840,340$3,956,305$ General revenues Taxes Property taxes Tax increment Franchise taxes Lodging taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Miscellaneous Transfers Total general revenues and transfers Change in net position Net position - January 1 Net position - December 31 Program Revenues The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 55 Statement 2 Governmental Business-Type Activities Activities Total (9,739,195)$ -$ (9,739,195)$ (12,186,642) - (12,186,642) (641,774) - (641,774) (12,357,569) - (12,357,569) (5,915,755) - (5,915,755) 451,614 - 451,614 32,265 - 32,265 (9,958,323) - (9,958,323) (1,235,095) - (1,235,095) (51,550,474) - (51,550,474) - 1,213,759 1,213,759 - 1,346,338 1,346,338 - 47,399 47,399 - 697,805 697,805 - 3,305,301 3,305,301 (51,550,474) 3,305,301 (48,245,173) 33,449,668 - 33,449,668 10,266,075 - 10,266,075 3,804,678 - 3,804,678 1,021,855 - 1,021,855 618,645 - 618,645 739,130 159,537 898,667 1,751,339 - 1,751,339 491,591 - 491,591 2,004,593 (2,004,593) - 54,147,574 (1,845,056) 52,302,518 2,597,100 1,460,245 4,057,345 141,608,522 30,696,039 172,304,561 144,205,622$ 32,156,284$ 176,361,906$ Net (Expense) Revenue and Changes in Net Position The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 56 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET Statement 3 GOVERNMENTAL FUNDS December 31, 2018 Special Revenue Fund General Housing Rehabilitation Debt Service Development EDA Redevelopment District Other Governmental Funds Total Governmental Funds Assets Cash and investments 22,549,462$ 1,941,815$ 3,952,743$ 15,212,343$ 5,713,850$ 5,509,296$ 54,879,509$ Accrued interest receivable 48,465 4,234 5,514 32,950 11,823 26,649 129,635 Due from other governments 254,318 - 77,315 1,033,619 - 380,049 1,745,301 Accounts receivable 421,938 39,550 - 14,330 - 954,608 1,430,426 Taxes receivable - unremitted 141,205 - - - 37,521 - 178,726 Taxes receivable - delinquent 269,180 - - - 9,204 - 278,384 Prepaid items 50,202 - - - - 19,700 69,902 Inventories 208,730 - - - - - 208,730 Special assessments receivable - delinquent - 28,840 - - - 9,123 37,963 Special assessments receivable - deferred - 5,284,145 - - - 925,154 6,209,299 Due from other funds - -- - - 1,346,378 1,346,378 Interfund loan receivable - -- 4,637,189 - - 4,637,189 Loans receivable - current - -40,000 308,127 - - 348,127 Loans receivable - noncurrent - 3,236,091 1,480,000 1,442,436 743,982 487,677 7,390,186 Pledges receivable - current - - - - - 100,000 100,000 Pledges receivable - noncurrent - - - - - 1,150,000 1,150,000 Land held for resale - - - 3,474,006 - -3,474,006 Total assets 23,943,500$ 10,534,675$ 5,555,572$ 26,155,000$ 6,516,380$ 10,908,634$ 83,613,761$ Liabilities Accounts payable 604,788$ 26,176$ -$ 1,220,009$ 5,780$ 764,008$ 2,620,761$ Salaries payable 1,889,449 5,926 - 15,544 - 22,075 1,932,994 Due to other governments 217,903 - - 8,622 25,986 545,497 798,008 Contracts payable - 8,922 - - - 1,574,311 1,583,233 Due to other funds - - - - - 1,346,378 1,346,378 Interfund loan payable - - - - 4,637,189 - 4,637,189 Deposits payable 1,097,856 - 284,594 - - - 1,382,450 Unearned revenue 609,940 - 12,886 22,805 - 245,343 890,974 Total liabilities 4,419,936 41,024 297,480 1,266,980 4,668,955 4,497,612 15,191,987 Deferred inflows of resources Unavailable revenue 269,180 5,300,119 1,520,000 - 110,180 2,225,914 9,425,393 Fund balances Nonspendable 258,932 - - - - 19,700 278,632 Restricted 272,840 - 3,738,092 - 5,803,367 2,655,094 12,469,393 Committed - 225,179 - 266,336 - 572,769 1,064,284 Assigned 1,025,207 4,968,353 - 24,621,684 - 4,253,859 34,869,103 Unassigned 17,697,405 - - - (4,066,122) (3,316,314) 10,314,969 Total fund balances 19,254,384 5,193,532 3,738,092 24,888,020 1,737,245 4,185,108 58,996,381 Total liabilities, deferred inflows of resources, and fund balances 23,943,500$ 10,534,675$ 5,555,572$ 26,155,000$ 6,516,380$ 10,908,634$ 83,613,761$ Total Fund balances reported above 58,996,381$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds 120,686,817 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable revenue in the funds: Receivables not available soon enough to pay for the current period's expenditures 9,425,393 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds: Bonds payable and unamortized bond premium (37,250,294) Accrued interest payable (543,668) Internal service funds are used by management to charge the cost of certain services to individual funds. The assets and liabilities are included in the governmental statement of net position (7,109,007) Net position of governmental activities 144,205,622$ Capital Projects Funds The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 57 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND Statement 4 CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For The Year Ended December 31, 2018 Special Revenue Fund General Housing Rehabilitation Debt Service Development EDA Redevelopment District Other Governmental Funds Total Governmental Funds Revenues Property taxes 26,580,140$ 100,000$ 3,164,782$ 22,126$ 1,176,503$ 810,000$ 31,853,551$ Tax increments - - - - 10,266,075 - 10,266,075 Franchise taxes - - - - - 3,804,678 3,804,678 Lodging tax - - - 1,021,855 - - 1,021,855 License and permits 4,001,645 ---- -4,001,645 Intergovernmental 2,006,090 - 154,754 2,198,214 - 881,117 5,240,175 Charges for services 3,473,358 2,775 - 188,866 - 43,328 3,708,327 Fines and forfeits 282,146 - - - - - 282,146 Special assessments - 799,181 - - - 351,396 1,150,577 Interest income 251,494 17,847 23,268 176,802 53,718 154,002 677,131 Miscellaneous 188,912 631,157 106,392 273,078 48 329,750 1,529,337 Total revenues 36,783,785 1,550,960 3,449,196 3,880,941 11,496,344 6,374,271 63,535,497 Expenditures Current General government 9,075,636 - - - - - 9,075,636 Public safety 16,718,408 - - - - 331,894 17,050,302 Public information - - - - - 567,653 567,653 Operations and recreation 10,764,790 - - - - 266,754 11,031,544 Engineering 552,432 - - - - 3,897,465 4,449,897 Housing and rehabilitation - 512,029 - - - - 512,029 Housing maintenance - - - - - 12,040 12,040 Social and economic development - - 449,821 2,803,901 6,970,900 254,737 10,479,359 Capital outlay Public safety 97,125 - - - - 24,005 121,130 Public information - - - - - 177,889 177,889 Operations and recreation - - - - - 4,588,865 4,588,865 Engineering - - - - - 7,560,984 7,560,984 Social and economic development - - - 1,940,010 - -1,940,010 Debt service Principal - - 2,055,000 - - - 2,055,000 Interest and other - - 1,257,938 - 204,387 - 1,462,325 Bond issuance costs - - - 4,255 - 28,805 33,060 Total expenditures 37,208,391 512,029 3,762,759 4,748,166 7,175,287 17,711,091 71,117,723 Revenues over (under) expenditures (424,606)1,038,931 (313,563)(867,225)4,321,057 (11,336,820)(7,582,226) Other financing sources (uses) Transfers in 1,929,076 160,000 1,719,780 - - 3,473,225 7,282,081 Transfers out (1,040,000) (341,302) - - (3,808,039) (419,121) (5,608,462) Bonds issued - - 46,598 254,010 - 1,719,392 2,020,000 Premium on bonds issued - - - 246 - 5,413 5,659 Proceeds from sale of capital assets - - - 1,679,945 - -1,679,945 Total other financing sources (uses)889,076 (181,302)1,766,378 1,934,201 (3,808,039)4,778,909 5,379,223 Net change in fund balances 464,470 857,629 1,452,815 1,066,976 513,018 (6,557,911)(2,203,003) Fund balances - January 1 18,789,914 4,335,903 2,285,277 23,821,044 1,224,227 10,743,019 61,199,384 Fund balances - December 31 19,254,384$ 5,193,532$ 3,738,092$ 24,888,020$ 1,737,245$ 4,185,108$ 58,996,381$ Capital Projects Funds The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 58 CITY OF ST. LOUIS PARK, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2018 Amounts reported for governmental activities in the statement of activities (Statement 2) are different because: Net changes in fund balances - total governmental funds (Statement 4)(2,203,003)$ Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay 14,388,878 Capital outlay not capitalized (6,045,630) Depreciation expense (3,634,084) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Proceeds from long term debt (2,020,000) Principal repayments on long term debt 2,055,000 Interest on long-term debt in the statement of activities differs from the amount reported in the governmental fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.(10,257) Governmental funds report debt issuance premiums and discounts as an other financing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the City-wide financial statements.52,042 Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Special assessments (451,305) Property taxes (371,583) Pledges (100,000) Loans (22,000) Internal service funds are used by management to charge the costs for equipment, information system, equipment replacement, employee benefits and major losses incurred by individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.959,042 Change in net position of governmental activities (Statement 2)2,597,100$ The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 59 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET POSITION Statement 6 PROPRIETARY FUNDS December 31, 2018 Governmental Activities Internal Water Sewer Solid Waste Storm Water Totals Service Funds Assets Current assets Cash and investments 2,431,308$ 2,846,665$ 1,756,658$ 2,521,894$ 9,556,525$ 2,360,979$ Accrued interest receivable 3,804 4,487 4,872 9,788 22,951 5,705 Due from other governments - - - 17,209 17,209 - Accounts receivable 1,480,874 1,345,567 736,482 455,649 4,018,572 276 Prepaid items 9,126 9,126 9,126 - 27,378 487,691 Deposits receivable 700 - - - 700 - Inventories 40,995 - - - 40,995 - Special assessments receivable - delinquent 88,997 1,260 - - 90,257 - Special assessments receivable - deferred 667,345 216,826 - - 884,171 - Total current assets 4,723,149 4,423,931 2,507,138 3,004,540 14,658,758 2,854,651 Noncurrent assets Capital assets, at cost Land 114,844 60,000 - 340,239 515,083 818,094 Buildings and structures 4,761,612 6,111 - -4,767,723 9,451,756 Improvements other than buildings 951,045 22,278 - 6,182,215 7,155,538 1,812,425 Infrastructure 24,156,147 21,198,582 - 19,172,676 64,527,405 1,313,801 Machinery, furniture and equipment 8,677,710 262,040 - 89,098 9,028,848 8,144,700 Fleet - - - -- 10,854,001 Construction in progress - - - -- 766,601 Total capital assets, at cost 38,661,358 21,549,011 - 25,784,228 85,994,597 33,161,378 Less: accumulated depreciation (16,243,244) (16,323,313) - (10,100,557) (42,667,114) (12,579,609) Total noncurrent assets 22,418,114 5,225,698 - 15,683,671 43,327,483 20,581,769 Total assets 27,141,263 9,649,629 2,507,138 18,688,211 57,986,241 23,436,420 Deferred outflows of resources Related to pensions - - - - - 13,734,236 Related to OPEB - - - - - 243,847 Total deferred outflows of resources - - - - - 13,978,083 Liabilities Current liabilities Accounts payable 228,465 49,285 209,830 39,564 527,144 857,548 Salaries payable 72,506 40,017 21,263 19,345 153,131 - Accrued flex spending - - - - - 26,213 Due to other governments 95,424 8,603 47,555 139,617 291,199 68,713 Contracts payable 479,507 - - 1,200 480,707 1,672 Deposits payable 37,960 - - 92,895 130,855 - Accrued interest payable 210,561 34,573 - 6,145 251,279 - Compensated absences payable - current 43,263 45,205 5,321 11,568 105,357 2,498,575 Capital lease payable - current - - - - - 59,378 Bonds payable - current 1,789,800 137,500 - 167,700 2,095,000 - Unearned revenue 434,127 - - - 434,127 - Total current liabilities 3,391,613 315,183 283,969 478,034 4,468,799 3,512,099 Noncurrent liabilities Compensated absences payable 28,841 30,136 3,547 7,712 70,236 1,597,029 Capital lease payable - - - - - 121,004 Bonds payable 15,187,377 2,326,988 - 543,078 18,057,443 - Other postemployment benefits payable - - - -- 3,500,643 Net pension liability - - - -- 20,494,066 Total noncurrent liabilities 15,216,218 2,357,124 3,547 550,790 18,127,679 25,712,742 Total liabilities 18,607,831 2,672,307 287,516 1,028,824 22,596,478 29,224,841 Deferred inflows of resources - pension related - - - - - 18,532,148 Net position Net investment in capital assets 7,270,426 3,749,058 - 14,972,893 25,992,377 20,401,387 Unrestricted 1,263,006 3,228,264 2,219,622 2,686,494 9,397,386 (30,743,873) Total net position 8,533,432$ 6,977,322$ 2,219,622$ 17,659,387$ 35,389,763 (10,342,486)$ Adjustment to reflect consolidation of Internal Service fund activities (3,233,479) Net position of business-type activities 32,156,284$ Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 60 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 7 CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2018 Governmental Activities Internal Water Sewer Solid Waste Storm Water Total Service Funds Operating revenues Charges for services 6,012,849$ 7,359,874$ 3,343,761$ 2,887,425$ 19,603,909$ 3,877,577$ Other 44,250 805 5,187 - 50,242 313,845 Rent 412,169 - - - 412,169 - Total operating revenues 6,469,268 7,360,679 3,348,948 2,887,425 20,066,320 4,191,422 Operating expenses Personal services 1,317,221 800,955 596,642 595,273 3,310,091 3,172,581 Supplies 182,881 29,610 125,457 24,401 362,349 627,040 Professional services 520,408 241,192 26,810 83,802 872,212 85,755 Insurance 27,189 56,842 4,244 7,940 96,215 192,701 Utilities 414,993 46,640 - 28,393 490,026 - Repairs and maintenance 1,211,205 190,378 - 2,223 1,403,806 - Depreciation 860,016 131,302 - 575,077 1,566,395 1,694,015 Disposal charges 19,641 4,105,226 2,631,995 - 6,756,862 - Other 395,848 264,072 72,789 787,937 1,520,646 865,423 Total operating expenses 4,949,402 5,866,217 3,457,937 2,105,046 16,378,602 6,637,515 Operating income (loss)1,519,866 1,494,462 (108,989) 782,379 3,687,718 (2,446,093) Nonoperating revenues (expenses) Interest income 55,130 35,909 25,691 42,807 159,537 43,999 Property taxes - - - - - 1,967,700 Intergovernmental revenue 9,200 3,187 161,863 - 174,250 747,718 Miscellaneous expense (11,264) (2,223) - (228,905) (242,392) - Amortization of bond premiums 35,660 10,800 - 2,930 49,390 - Gain on disposal of capital assets - - - -- 71,394 Interest expense (362,363) (52,921) - (15,694) (430,978) (8,300) Bond issuance costs (92,225) (18,740) - -(110,965) - Total nonoperating revenues (expenses)(365,862) (23,988) 187,554 (198,862) (401,158) 2,822,511 Income (loss) before contributions and transfers 1,154,004 1,470,474 78,565 583,517 3,286,560 376,418 Capital contributions Connection fees and special assessments 181,051 65,668 - - 246,719 - Capital assets - - - 183,209 183,209 - Transfers in - - - - - 330,974 Transfers out (603,270) (844,818) (234,046) (322,459) (2,004,593) - Change in net position 731,785 691,324 (155,481) 444,267 1,711,895 707,392 Net position - January 1 7,801,647 6,285,998 2,375,103 17,215,120 33,677,868 (11,049,878) Net position - December 31 8,533,432$ 6,977,322$ 2,219,622$ 17,659,387$ 35,389,763$ (10,342,486)$ Adjustment to reflect consolidation of Internal Service fund activities (251,650) Change in net position of business-type activities 1,460,245$ Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 61 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS Page 1 of 2 For The Year Ended December 31, 2018 Governmental Activities Internal Water Sewer Solid Waste Storm Water Total Service Funds Cash flows from operating activities Receipts from customers and users 6,369,639$ 7,268,737$ 3,303,641$ 2,888,496$ 19,830,513$ -$ Receipts from interfund services provided - - - - - 3,879,494 Other operating cash receipts 44,250 805 5,187 - 50,242 353,995 Payments to suppliers (2,385,254) (4,564,232) (3,060,432) (857,719) (10,867,637) (2,041,453) Payments to employees (1,428,428) (821,261) (601,791) (621,531) (3,473,011) (3,315,447) Miscellaneous expense (11,263) (2,223) - (228,905) (242,391) - Net cash flows provided (used) by operating activities 2,588,944 1,881,826 (353,395) 1,180,341 5,297,716 (1,123,411) Cash flows from noncapital financing activities Transfers out (569,231) (790,883) (201,292) (289,747) (1,851,153) 200,000 Property taxes ---- - 1,967,700 Intergovernmental receipts 9,200 3,187 161,863 - 174,250 747,718 Net cash flows provided (used) by noncapital financing activities (560,031) (787,696) (39,429) (289,747) (1,676,903) 2,915,418 Cash flows from capital and related financing activities Transfers in - - - - - 130,974 Transfers out (34,039) (53,935) (32,754) (32,712) (153,440) - Connection fees/special assessements received 181,051 65,668 - - 246,719 - Acquisition of capital assets (5,315,656) (388,959) - (373,078) (6,077,693) (2,350,079) Proceeds from sale of capital assets - - - -- 169,083 Proceeds from issuance of bonds, net 5,710,000 1,309,939 - - 7,019,939 - Principal paid Bonds (1,194,700) (16,500) - (163,800) (1,375,000) - Capital lease - - - -- (60,076) Interest paid Bonds (270,477) (32,994) - (17,137) (320,608) - Capital lease - - - -- (8,300) Net cash flows provided (used) by capital and related financing activities (923,821) 883,219 (32,754) (586,727) (660,083) (2,118,398) Cash flows from investing activities Interest received 51,326 31,422 26,915 43,532 153,195 46,818 Net increase (decrease) in cash and cash equivalents 1,156,418 2,008,771 (398,663) 347,399 3,113,925 (279,573) Cash and cash equivalents - January 1 1,274,890 837,894 2,155,321 2,174,495 6,442,600 2,640,552 Cash and cash equivalents - December 31 2,431,308$ 2,846,665$ 1,756,658$ 2,521,894$ 9,556,525$ 2,360,979$ Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 62 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS Page 2 of 2 For The Year Ended December 31, 2018 Governmental Activities Internal Water Sewer Solid Waste Storm Water Totals Service Funds Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss)1,519,866$ 1,494,462$ (108,989)$ 782,379$ 3,687,718$ (2,446,093)$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities Miscellaneous expense (11,263) (2,223) - (228,905) (242,391) - Depreciation 860,016 131,302 - 575,077 1,566,395 1,694,015 (Increase) decrease in assets/deferred outflows Accounts receivable (140,663) (35,065) (40,120) (18,034) (233,882) 42,067 Special assessments 42,011 (56,072) - - (14,061) - Prepaid items 9,914 351,642 (9,126) - 352,430 (385,994) Inventories 20,227 - - - 20,227 - Deferred outflows of resources - - - - - 3,040,840 Increase (decrease) in liabilities/deferred inflows Accounts payable 22,434 12,382 (196,598) 34,419 (127,363) 91,748 Due to other governments 75,106 5,704 6,587 133,819 221,216 23,712 Contracts payable 259,230 - - (91,261) 167,969 - Deposits payable 17,460 - - 19,105 36,565 - Accrued salaries payable 13,463 2,755 2,444 (3,605) 15,057 - Unearned revenue 25,813 - - - 25,813 - Accrued flex spending - - - - - 7,040 Compensated absences payable 11,137 12,826 1,901 4,444 30,308 200,312 Other postemployment benefits (135,807) (35,887) (9,494) (27,097) (208,285) 250,513 Net pension liability - - - - - (3,455,414) Deferred inflows of resources - - - - - (186,157) Net cash provided (used) by operating activities 2,588,944$ 1,881,826$ (353,395)$ 1,180,341$ 5,297,716$ (1,123,411)$ Noncash capital and related financing activities Amortization of bond premiums 35,660$ 10,800$ -$ 2,930$ 49,390$ -$ Disposal of capital assets - - - - - 874,970 Capital assets acquired through financing - - - 17,209 17,209 74,527 Capital assets acquired on account - - - 166,000 166,000 270,939 Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 63 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of St. Louis Park, Minnesota (the City) was incorporated in 1886 and operates a council-manager form of government under the “Home Rule Charter” concept according to applicable Minnesota laws and statutes. The governing body consists of a seven member City Council elected by the voters of the City. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A.FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City (the primary government) and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are combined with data of the City. BLENDED COMPONENT UNITS The Economic Development Authority (EDA) is an entity legally separate from the City. However, for financial reporting purposes, the EDA is reported as if it were part of the City’s operations because the members of the City Council serve as EDA Board Members and the City has the ability to access EDA resources. Separate financial statements are not prepared for the EDA. The following funds are maintained by the EDA: Debt Service Funds –2008B General Obligation Tax Increment Bonds, and Hoigaard’s 2010A & B TIF Notes; Capital Project Funds – Development EDA and Redevelopment District. RELATED ORGANIZATION The Housing Authority (HA) is an entity legally separate from the City. The HA is governed by a Board of Commissioners appointed by the City Council. However, the City’s accountability for the HA does not extend beyond making the appointments. B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or business- type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 64 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenue, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Housing Rehabilitation Fund is used to account for revenues from revenue bond fees and expenditures related to preventing deterioration of multi-unit housing. Debt Service Fund account for the resources accumulated and payments made for principal and interest on long-term general obligation debt of the government. The Development EDA Fund accounts for transactions related to redevelopment efforts in the City; financing is provided by investment income, grants, and developer reimbursements. The Redevelopment District Fund accounts for transactions relative to acquisition and development in the City’s tax increment redevelopment districts; financing is provided by the sale of general obligation tax increment bonds along with tax increment property tax payments. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 65 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The City reports the following major enterprise funds: The Water Fund accounts for the provisions of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. The Sewer Fund accounts for the provisions of sewer services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. The Solid Waste Fund accounts for the revenue and expense related to collection, disposal, and recycling of residential solid waste. Financing is provided by charging each property owner a predetermined service fee. The Storm Water Fund accounts for the revenue and expenses related to providing storm water to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, construction, maintenance, billing and collection. Additionally, the government reports the following fund types: Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments on a cost reimbursement basis. The City’s internal service funds account for employee benefits including postemployment benefits and pensions, uninsured loss, capital replacement. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water, sewer, solid waste and storm water enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 66 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 D.BUDGETARY INFORMATION Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are legally adopted for the General Fund. A budget is not presented for the Housing Rehabilitation Fund since the City does not legally require to adopt a budget for the fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is as present not considered necessary to assure effective budgetary control or to facilitate effective cash management. E.LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1.The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2.The City Council reviews the proposed budget and makes appropriate changes. 3.Public hearings are conducted to obtain taxpayer comments. 4.The budget is legally enacted through passage of a resolution on a departmental/divisional basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts in accordance with the provisions of Section 6.05 of the City Charter. 5.After the budget resolution is approved, the City Council can increase the budget only by resolution if actual receipts exceed the estimated, or from accumulated fund balance in the amount of unexpended appropriations from the previous fiscal year. During the year 2018, the budget was not amended. 6.Formal budgetary integration is employed as a management control device during the year for the General Fund. 7.Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 8.A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 9.The legal level of budgetary control is at the fund level. Expenditures may not legally exceed budgeted appropriations at the total fund level. The City Council must approve all expenditures at fund level either by resolution or through the disbursement process. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 67 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 10.Monitoring of budgets is maintained at the expenditure category level (i.e., personal services, supplies, and other services and charges, and capital outlay) within each program. Management can exceed appropriations at the department level without City Council approval. Approval must be received for exceeding budgeted appropriations at the fund level. 11.The City Council may authorize transfer of budgeted amounts between City funds. F.CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Investment income is allocated to individual funds on the basis of average monthly cash balances. The City’s investment policy dictates that the General fund is to receive the first three percent of all interest earnings as an administrative fee. The administrative fee does not apply to the Economic Development Authority. Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-like external investment pools, which are stated at amortized cost. Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore the entire balance in such fund types is considered cash equivalents. It is the City’s policy to invest in a manner that seeks to ensure preservation of capital in the overall portfolio. Safety of principal is the foremost objective, but liquidity and yield are also important considerations. The objective will be to mitigate credit risk by purchasing only highly rated securities with adequate collateral and interest rate risk by matching maturities to cash flow needs and holding securities to maturity. G.ACCOUNTS RECEIVABLE Property taxes and special assessment receivables have been reported net of estimated uncollectible accounts (See Note 1 I and J). The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. INTERFUND RECEIVABLES AND PAYABLES Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “interfund loan receivable/payable” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 68 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 I.PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflow of resources because they are not available to finance current expenditures. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City’s property tax revenue includes payment from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per Minnesota Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation “shared” is a portion of commercial/industrial property valuation growth since 1971. Property taxes paid to the City through this formula for 2018 totaled $2,437,135. Receipt of property taxes from this “fiscal disparities pool” does not increase or decrease total tax revenue. J.SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 69 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred inflow of resources. K.INVENTORIES Inventory is valued at cost using the first-in, first out (FIFO) method. Inventory consists mainly of expendable supplies held for consumption. Inventories of the governmental funds are recorded as expenditures when consumed rather than when purchased. L.PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. M.CAPITAL ASSETS Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of three years and an initial individual cost of more than the following: Land All Buildings $5,000 Other Improvements $25,000 Machinery and equipment $10,000 Vehicles $10,000 Infrastructure $250,000 Other assets $5,000 Construction in progress Accumulate all costs and capitalize if over $100,000 when completed Capitalization Threshold Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at estimated acquisition value at the date of donation. The City uses the modified approach for reporting street and trail system capital assets. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 70 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the primary government, as well as the component units, is depreciated using the straight line method over the following estimated useful lives: Buildings and structures 5 – 30 years Improvements other than buildings 5 – 30 years Infrastructure 5 – 100 years Machinery, furniture and equipment (including software) 3 – 30 years Fleet 3 – 25 years Temporary easements 3 – 5 years Capital assets of the water utility and sewer utility operations include the water distribution system and sewer collection system. These systems have been wholly (or substantially) financed by non-operating funds (special assessments, general taxes, federal and state grants, and other sources) and contribution to the Water and Sewer operating funds. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. The City implemented GASB 51, Accounting and Financial Reporting for Intangible Assets effective January 1, 2010, which required the City to capitalize and amortize intangible assets. Pursuant to GASB Statement No. 51, the retroactive reporting of permanent easements is not required and therefore, the City has elected not to report permanent easements acquired in years prior to 2010. The City had already accounted for computer software at historical cost and therefore retroactive reporting was not necessary. The City elects to use the modified approach as defined by GASB Statement No. 34 for infrastructure reporting of its streets. The City conducted a physical assessment in the summer of 2017 of the condition of the streets. This condition assessment will be performed every 2 years. Each segment of City owned street was assigned a physical condition based on potential defects. An Overall Condition Index (OCI) was assigned to each segment. The index is expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to those segments that have the characteristic of a new street. The following conditions were defined: Range Description 86 - 100 Excellent 71 - 85 Very good 56 - 70 Good 41 - 55 Fair 26 - 40 Poor 11 - 25 Very poor 0 - 10 Failed The City’s policy relative to maintaining the street and trail assets is to achieve an average rating of “Good” for all segments. This acceptable rating allows minor cracking and patching of the pavement along with minor roughness that could be noticeable to the users of the system. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 71 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 N.COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation, sick pay and flex leave benefits. No liability is recorded for unpaid accumulated sick leave, except for that portion that is payable as severance. All liabilities for vacation leave, flex leave and severance, both current and long-term, are recorded in the Employee Benefits Fund, an Internal Service Fund for governmental funds, and in the individual enterprise funds when incurred. The personnel ordinance limits the annual accumulation of benefits that can be accumulated from year-to-year. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. O.LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. P.FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of amounts that are constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council. Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Assigned - consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City Council and/or management. Pursuant to City Council Resolution, the City’s Chief Financial Officer and/or City Manager is authorized to establish assignments of fund balance. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1) committed 2) assigned and 3) unassigned. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 72 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Q.INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. R.RECLASSIFICATIONS Certain amounts presented in the prior year data has been relassified in order to be consistent with the current year’s presentation. S.NET POSITION Net position represents the difference between assets/deferred outflows and liabilities/deferred inflows. Net position is displayed in three components. a)Net investment in capital assets – consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b)Restricted net position – consist of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c)Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets”. T.USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. U.DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has two items that qualify for reporting in this category. They are the pension and OPEB related deferred outflows of resources reported in the government-wide statement of net position and the proprietary funds statement of net position. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 73 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has pension related deferred inflows of resources reported in the government-wide statement of net position and the proprietary funds statement of net position. The government also has a type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments, bond reimbursement payments not yet due and other miscellaneaous unavailable revenue. V.PENSION PLANS COST SHARING MULTIPLE – EMPLOYER PLANS For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Note 2 DEPOSITS AND INVESTMENTS A.DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: 1.United States government treasury bills, treasury notes, treasury bonds; 2.Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; 3.General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; 4.General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; 5.Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and 6.Time deposits that are fully insured by any federal agency. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 74 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Custodial Credit Risk - deposits – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit risk. As of December 31, 2018, the bank balance of the City’s deposits was $2,138,283 all of which was covered by federal depository insurance or by collateral pledged and held in the City’s name. B. INVESTMENTS The City is authorized by Minnesota Statute Chapter 118A, and the City’s investment policy, to invest in the following: 1.Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. 2.Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements, and is rated one of the two highest rating categories for money market funds by at least one nationally recognized rating organization. 3.State and local securities as follows: a)any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; b)any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and c)a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. 4.Bankers acceptance of United States banks. 5.Commercial paper, with a maturity of 270 days or less, issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 75 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 At December 31, 2018, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1-5 6-10 11-15 4M Fund NR 23,181,858$ 23,181,858$ -$ -$ -$ Money market funds NR 3,546,439 3,546,439 - - - Commercial paper NR 2,376,488 2,376,488 - - - Brokered Certificates of Deposit NR 3,065,108 1,673,998 1,391,110 - - Municipal Bonds A - AAA 5,423,634 3,982,260 1,441,374 - - US Treasury N/A 17,276,820 - 17,276,820 - - Federal National Mortgage Association N/A 4,564,663 349,724 4,214,939 - - Federal Home Loan Bank Notes N/A 5,503,328 617,444 4,885,884 - - Total 64,938,338$ 35,728,211$ 29,210,127$ -$ -$ Total investments 64,938,338$ Deposits 1,853,690 Petty cash 4,985 Total cash and investments 66,797,013$ Investment Maturities (in Years) The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted market prices. Level 2 investments are valued using inputs that are based on matrix pricing models. Level 3 investments are valued using inputs that are unobservable. The City has the following recurring fair value measurements as of December 31, 2018: Investment Type 12/31/2018 Level 1 Level 2 Level 3 Investments at fair value: Commercial paper 2,376,488$ -$ 2,376,488$ -$ Brokered Certificates of Deposit 3,065,108 - 3,065,108 - Municipal Bonds 5,423,634 - 5,423,634 - US Treasury 17,276,820 - 17,276,820 - Federal National Mortgage Association 4,564,663 - 4,564,663 - Federal Home Loan Bank Notes 5,503,328 - 5,503,328 - Total/Subtotal 38,210,041 -$ 38,210,041$ -$ Investments not categorized: External investment pool - 4M Fund 23,181,858 Money market funds 3,546,439 Total 64,938,338$ Fair Value Measurement Using Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 76 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The City’s external investment pool investment is with the 4M Fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M Fund is an unrated pool and the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) per share of $1. The pool measures their investments in accordance with Government Accounting Standards Board Statement No. 79, at amortized cost. The 4M Liquid Asset Fund has no redemption requirements. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period are subject to a penalty equal to 7 days interest on the amount withdrawn. C. INVESTMENT RISKS Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s investment policy requires the City’s security broker/dealers to provide its audited financial statements, proof of NASD certification, proof of state registration, and certification of having read, understood and agreed to comply with the City’s investment policy. Investments in securities are held by the City’s broker-dealer of which $500,000 is insured through SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealers accounts. Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City’s investment policy states the investment portfolio will remain sufficiently liquid to enable the City to meet all operating and capital requirements that might be reasonably anticipated. The maximum maturity of investments shall not extend beyond five years, unless related to specific cash flow needs. Credit risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments to commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating agency; mutual funds or money market funds whose investments are restricted to securities described in MS 118A.04. The City’s investment policy does not place further restrictions on investment options. Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy states no more than 50% of its investment portfolio can be invested in municipal bonds or MHFA securities. Investments in a single issuer exceeding 5% of the City’s overall cash and investment portfolio are in various holdings as follows: Federal National Mortgage Assn.7.03% Federal Home Loan Bank 8.47% US Treasury 26.60% Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 77 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 3 RECEIVABLES A.LOANS RECEIVABLE The City has made loans to local businesses and individuals that qualify for various loan programs. The businesses and individuals pay varying installments on the loans. Depending on the loan program, some of the loans are secured by an interest in the property. Also, some of the loans are forgivable after 30 years if certain criteria are met. As of December 31, 2018, any forgiveness of loans would not occur for another 20 – 30 years. At this time, information is not available to develop an estimate for any loans which may be forgiven. Therefore, no allowance has been recorded. As loan maturity dates approach, the City will evaluate whether an allowance for forgivable loans should be recorded in the financial statements. As of December 31, 2018, the loans receivable balance was $7,738,313. Significant receivable balances not expected to be collected within one year of December 31, 2018 are as follows: Special Interfund Loans Assessments Property Loans Pledges Receivable Receivable Taxes Receivable Receivable Total Major Funds: General Fund -$ -$ 265,424$ -$ -$ 265,424$ Housing Rehabilitation Fund 3,236,091 15,287 9,075 - - 3,260,453 Debt Service Funds 1,480,000 - - - - 1,480,000 Development EDA Fund 1,442,436 - - 4,637,189 - 6,079,625 Redevelopment District Fund 743,982 - - - 1,250,000 1,993,982 Water Fund - 50,296 - - - 50,296 Sewer Fund - 428 - - - 428 Nonmajor Governmental Funds 487,677 8,140 - - - 495,817 Total 7,390,186$ 74,151$ 274,499$ 4,637,189$ 1,250,000$ 13,626,025$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 78 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 4 UNAVAILABLE REVENUE Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Unavailable Delinquent property taxes receivable (General Fund) 269,180$ Delinquent property taxes receivable (Redevelopment District) 9,204 Special assessments not yet due (Housing Rehabilitation) 5,300,119 Special assessments not yet due (Nonmajor Funds)932,890 Bond reimbursement payments not yet due (Debt Service Funds)1,520,000 Other miscellaneous (Redevelopment District)100,976 Other miscellaneous (Nonmajor Funds)1,293,024 Total unavailable revenue for governmental funds 9,425,393$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 79 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 5 CAPITAL ASSETS The City has elected to use the modified approach as defined by GASB Statement No. 34 for reporting of street infrastructure. As a result, no accumulated depreciation or depreciation expense has been recorded for street infrastructure. Additional information of the modified approach is presented in the Notes to Required Supplementary Information section of this report. All other capital assets including other infrastructure systems were reported using the basic approach whereby accumulated depreciation and depreciation expense have been recorded. Modified approach adjustments represent the changes due to implementation of the modified approach for infrastructure reporting. Capital asset activity for the year ended December 31, 2018 is as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental activities: Capital assets, not being depreciated: Land 16,991,835$ -$ -$ -$ 16,991,835$ Infrastructure - streets 26,011,544 - - - 26,011,544 Permanent easements 1,429,976 - - - 1,429,976 Construction in progress 5,825,727 6,659,548 8,302,513 - 4,182,762 Total capital assets, not being depreciated 50,259,082 6,659,548 8,302,513 - 48,616,117 Capital assets, being depreciated: Buildings and structures 56,294,545 177,207 - - 56,471,752 Improvements other than buildings 34,946,871 6,880,266 - - 41,827,137 Infrastructure 31,912,725 3,537,730 - - 35,450,455 Machinery, furniture and equipment 10,581,920 1,171,363 172,870 - 11,580,413 Fleet 10,680,402 1,073,816 702,100 - 11,052,118 Total capital assets, being depreciated 144,416,463 12,840,382 874,970 - 156,381,875 Less accumulated depreciation for: Buildings and structures 15,143,279 1,408,157 - - 16,551,436 Improvements other than buildings 14,466,988 1,434,671 - - 15,901,659 Infrastructure 18,138,897 956,186 - 509,927 19,605,010 Machinery, furniture and equipment 6,553,075 645,123 14,245 - 7,183,953 Fleet 4,717,723 883,963 604,411 (509,927) 4,487,348 Total accumulated depreciation 59,019,962 5,328,100 618,656 - 63,729,406 Total capital assets being depreciated - net 85,396,501 7,512,282 256,314 - 92,652,469 Governmental activities capital assets - net 135,655,583$ 14,171,830$ 8,558,827$ -$ 141,268,586$ Beginning Ending Balance Increases Decreases Transfers Balance Business-type activities: Capital assets, not being depreciated: Land 515,083$ -$ -$ -$ 515,083$ Construction in progress 6,487,460 3,741,924 10,229,384 - - Total capital assets, not being depreciated 7,002,543 3,741,924 10,229,384 - 515,083 Capital assets, being depreciated: Buildings and structures 4,767,723 - - - 4,767,723 Improvements other than buildings 7,155,538 - - - 7,155,538 Infrastructure 51,779,046 12,748,359 - - 64,527,405 Machinery, furniture and equipment 9,028,848 - - - 9,028,848 Total capital assets, being depreciated 72,731,155 12,748,359 - - 85,479,514 Less accumulated depreciation for: Buildings and structures 4,089,885 375,988 - - 4,465,873 Improvements other than buildings 3,521,029 23,443 - - 3,544,472 Infrastructure 30,016,845 735,431 - - 30,752,276 Machinery, furniture and equipment 3,472,960 431,533 - - 3,904,493 Total accumulated depreciation 41,100,719 1,566,395 - - 42,667,114 Total capital assets being depreciated - net 31,630,436 11,181,964 - - 42,812,400 Business-type activities capital assets - net 38,632,979$ 14,923,888$ 10,229,384$ -$ 43,327,483$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 80 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 80,424$ Public safety 467,676 Engineering 8,393 Operations and recreation 2,885,195 Public information 62,388 Social and economic development 130,009 Internal service 1,694,015 Total depreciation expense - governmental activities 5,328,100$ Business-type activities: Water 860,016$ Sewer 131,302 Storm water 575,077 Total depreciation expense - business-type activities 1,566,395$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 81 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 6 CITY INDEBTEDNESS The City issues general obligation bonds, to provide funds for the acquisition and construction of major capital facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. As of December 31, 2018, long-term debt of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rates Issued 12/31/18 Governmental Activities: General Long-Term Debt: General Improvement Bonds: G.O. Improvement Bonds Series 2010D (BABS) 12/29/2010 2/1/2032 1.25 - 5.15% 13,025,000$ 9,775,000$ G.O. Improvement Bonds Series 2014A 12/18/2014 2/1/2026 2.00% 5,070,000 4,130,000 G.O. Improvement Bonds Series 2016A 7/14/2016 2/1/2027 1.375 - 2.375% 10,000,000 9,620,000 G.O. Improvement Bonds Series 2017A 7/13/2017 2/1/2028 2.125 - 3%3,430,000 3,430,000 G.O. Improvement Bonds Series 2018A 6/14/2018 2/1/2033 3.00 - 4.00% 2,020,000 2,020,000 Total General Improvement Bonds 33,545,000 28,975,000 Tax Increment Bonds: Tax Increment Refunding Bonds Series 2008B 12/1/2008 2/1/2024 3.25 - 4.625% 5,490,000 2,995,000 G.O. Special Assessment Bonds: G.O. Improvement Bonds Series 2010A 5/7/2010 2/1/2031 1.25 - 5.7%3,105,000 2,290,000 G.O. Improvement Bonds Series 2012A HIA 10/17/2012 2/1/2033 0.75 - 3.90% 1,290,000 1,025,000 Total G.O. Special Assessment Bonds 4,395,000 3,315,000 G.O. Revenue bonds: G.O. Improvement Refunding Bonds Series 2010C 12/29/2010 2/1/2040 3.00 - 5.65% 1,770,000 1,520,000 Issuance premiums (discounts)N/A N/A N/A N/A 445,293 Total - bonded indebtedness 45,200,000 37,250,293 Capital lease payable - copier 2/14/2014 12/31/2018 0.00%40,500 - Capital lease payable - vehicles 5/1/2016 5/1/2021 4.53%222,149 180,382 Total Capital Leases Payable 262,649 180,382 Compensated absences payable N/A N/A N/A N/A 4,095,604 Total governmental activities 45,462,649 41,526,279 Business-Type Activities: General Obligation Revenue Bonds: Utility Crossover Refunding Bonds Series 2013A 7/10/2013 8/1/2023 1.0 - 1.9% 4,170,000 2,370,000 Utility Revenue Bonds Series 2014A 12/18/2014 2/1/2026 2.00%4,930,000 4,020,000 Utility G.O. Improvement Bonds Series 2017A 7/13/2017 2/1/2033 2.125 - 3%4,985,000 4,985,000 Utility Refunding Revenue Bonds Series 2017A 7/13/2017 2/1/2025 2.125 - 3%1,485,000 1,320,000 Utility G.O. Revenue Bonds Series 2018A 6/14/2018 2/1/2033 3.00 - 4.00% 6,780,000 6,780,000 Total General Obligation Revenue Bonds 22,350,000 19,475,000 Issuance premiums (discounts)N/A N/A N/A N/A 677,443 Total - bonded indebtedness 22,350,000 20,152,443 Compensated absences payable N/A N/A N/A N/A 175,593 Total business-type activities 22,350,000 20,328,036 Total long-term debt 67,812,649$ 61,854,315$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 82 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 GOVERNMENTAL ACTIVITIES Annual debt service requirements to maturity for the governmental activities long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest Principal Interest Principal Interest 2019 2,330,000$ 901,178$ 435,000$ 124,613$ 185,000$ 145,753$ 40,000$ 76,455$ 2020 2,555,000 823,705 460,000 105,563 190,000 139,046 45,000 74,805 2021 2,625,000 749,265 485,000 84,300 205,000 131,640 45,000 72,983 2022 2,685,000 672,091 510,000 61,913 210,000 123,510 45,000 71,104 2023 2,750,000 592,209 535,000 38,400 215,000 114,764 50,000 69,048 2024 2,820,000 507,343 570,000 13,181 230,000 105,311 50,000 66,823 2025 2,905,000 423,068 - - 235,000 95,133 55,000 64,433 2026 2,975,000 341,161 - - 245,000 84,345 55,000 61,875 2027 2,485,000 263,821 - - 260,000 72,578 60,000 59,143 2028 1,360,000 201,390 - - 270,000 59,773 60,000 56,233 2029 1,005,000 151,073 - - 285,000 45,923 65,000 53,138 2030 800,000 107,120 - - 300,000 30,844 65,000 49,855 2031 825,000 65,276 - - 315,000 14,828 70,000 46,378 2032 855,000 22,016 - - 85,000 4,973 75,000 42,589 2033 - - - - 85,000 1,658 75,000 38,633 2034 - - - - - - 80,000 34,505 2035 - - - - - - 85,000 30,070 2036 - - - - - - 90,000 25,323 2037 - - - - - - 95,000 20,258 2038 - - - - - - 100,000 14,870 2039 - - - - - - 105,000 9,155 2040 - - - - - - 110,000 3,108 Total 28,975,000$ 5,820,716$ 2,995,000$ 427,970$ 3,315,000$ 1,170,079$ 1,520,000$ 1,040,784$ G.O. Improvement Bonds G.O. Revenue BondsG.O. Special Assessment BondsG.O. Tax Increment Bonds It is not practicable to determine the specific year for payment of long-term accrued compensated absences. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 83 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 BUSINESS-TYPE ACTIVITIES Annual debt service requirements to maturity for the business-type long-term debt are as follows: Year Ending December 31 Principal Interest 2019 2,095,000$ 542,308$ 2020 2,065,000 463,563 2021 1,585,000 414,475 2022 1,640,000 371,180 2023 1,690,000 325,765 2024 1,440,000 278,750 2025 1,495,000 235,725 2026 1,320,000 194,450 2027 805,000 164,538 2028 825,000 142,888 2029 860,000 119,825 2030 875,000 95,613 2031 900,000 69,900 2032 930,000 42,450 2033 950,000 14,250 Total 19,475,000$ 3,475,680$ G.O. Revenue Bonds It is not practicable to determine the specific year for payment of long-term accrued compensated absences. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 84 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2018 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds 28,375,000$ 2,020,000$ 1,420,000$ 28,975,000$ 2,330,000$ G.O. tax increment bonds 3,410,000 -415,000 2,995,000 435,000 G.O. special assessment bonds 3,495,000 -180,000 3,315,000 185,000 G.O. revenue bonds 1,560,000 -40,000 1,520,000 40,000 Add: Premiums on bonds 601,390 5,659 65,241 541,808 - Discounts on bonds (104,055) -(7,540) (96,515) - Total bonds payable 37,337,335 2,025,659 2,112,701 37,250,293 2,990,000 Capital lease payable 165,931 74,527 60,076 180,382 59,378 Compensated absences 3,895,292 2,893,952 2,693,640 4,095,604 2,498,575 Total governmental activity long-term debt 41,398,558$ 4,994,138$ 4,866,417$ 41,526,279$ 5,547,953$ Business-type activities: Bonds payable: G.O. revenue bonds 14,070,000$ 6,780,000$ 1,375,000$ 19,475,000$ 2,095,000$ Add: Premiums on bonds 375,930 350,903 49,390 677,443 - Total bonds payable 14,445,930 7,130,903 1,424,390 20,152,443 2,095,000 Compensated absences 145,285 201,122 170,814 175,593 105,357 Total business-type activity long-term debt 14,591,215$ 7,332,025$ 1,595,204$ 20,328,036$ 2,200,357$ For governmental activities, compensated absences are paid out of the Employee benefits internal service fund. $8,800,000 GENERAL OBLIGATION BONDS, SERIES 2018A On June 14, 2018, the City issued Charter General Obligation Bonds in the amount of $2,020,000 for funding sidewalks, trails, fiber, and softball fields, and General Obligation Revenue Bonds in the amount of $6,780,000 for funding water treatment plant filters, water rehab/infrastructure, and sewer improvements. The bond issues were consolidated into one issuance of $8,800,000 General Obligation Bonds, Series 2018A. The Charter G.O. Bonds will have a term of 10 years, an average interest rate of 2.83%, and will be repaid with property tax levies, G.O. Revenue Bonds will have a term of 15 years, an average interest rate of 2.56%, and will be repaid with water and sewer rates. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 85 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 CAPITAL LEASE PAYABLE A.COPY MACHINE In 2014, the City entered into a lease purchase agreement for a copier. The agreement calls for monthly payments of $675 maturing on December 31, 2018. Depreciation in the amount of $8,775 has been recorded as depreciation expense during 2018. The net book value of assets under the capital lease at December 31, 2018 is as follows: Equipment 40,500$ Accumulated depreciation (40,500) Net book value -$ There are no remaining future minimum lease payments under the capital lease. B.VEHICLES In 2016, the City entered into a lease agreement for ten vehicles. The agreement calls for total monthly payments of $4,145 maturing on May 1, 2021, with an interest rate of 4.53 percent. Depreciation in the amount of $44,481 has been recorded as depreciation expense during 2018. In 2018, the City entered into a lease agreement for three vehicles. The agreement calls for total monthly payments of $1,406 maturing on May 1, 2023, with an interest rate of 5.00 percent. Depreciation in the amount of $11,154 has been recorded as depreciation expense during 2018. The net book value of assets under the capital lease at December 31, 2018 is as follows: Equipment 313,475$ Accumulated depreciation (129,892) Net book value 183,583$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 86 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The following is a schedule of future minimum lease payments under the capital lease: Year Ending December 31, Payment 2019 66,612$ 2020 66,612 2021 37,584 2022 16,877 2023 7,026 Total minimum lease payments 194,711 Less: amount representing interest (14,329) Present value of minimum lease payments 180,382$ REVENUE PLEDGED Future revenue pledged for the payment of long-term debt is as follows: Percent of Debt service Remaining Principal Pledged Use of total as a % of Pledged Principal and Interest Revenue Bond Issue Proceeds Type debt service net revenues Through and Interest paid received G.O. Improvement Bonds Series 2012A HIA Housing Improvement Area Fee 100.0% 53.1% 2033 1,310,604 87,803 165,471 G.O. Improvement Bonds Series 2010A Housing Improvement Area Fee 100.0% 94.3% 2031 3,174,471 245,069 259,947 Tax Increment Refunding Bonds Series 2008B Street Improvements TIF 100.0% 100.0% 2024 3,422,969 557,088 557,088 G.O. Improvement Refunding Bonds Series 2010C Louisiana Court Project Operating revenues of Louisiana Court 100.0% 111.7% 2040 2,599,380 118,855 106,392 Utility Crossover Refunding Bonds Series 2013A Utility Infrastructure Projects Utility charges 100.0% 100.0% 2023 2,462,170 793,013 793,013 Utility Revenue Bonds Series 2014A Utility Infrastructure Projects Utility charges 100.0% 100.0% 2026 4,350,000 545,000 545,000 Utility Revenue Bonds Series 2017A Utility Infrastructure Projects Utility charges 100.0% 100.0% 2033 6,092,413 147,341 147,341 Utility Refunding Revenue Bonds Series 2017A Utility Infrastructure Projects Utility charges 100.0% 100.0% 2033 1,462,950 209,303 209,303 Utility Revenue Bonds Series 2018A Utility Infrastructure Projects Utility charges 100.0% n/a 2033 8,583,146 - - Revenue Pledged Current Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 87 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 7 DEFINED BENEFIT PENSION PLANS A.PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B.BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. 1.GERF Benefits Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for a Coordinated Plan members is 1.2% for each of the first ten years and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7% for all years of service. The accrual for Minneapolis Employees Retirement Fund (MERF) members is 2% for each of the first 10 years of service and 2.5% for each additional year. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits, capped at 66. Beginning January 1, 2019, benefit recipients will receive a future annual increase equal to 50 percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more than 1.5 percent. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches Normal Retirement Age (not applicable to Rule of 90 retirees, disability benefit recipients, or survivors). A benefit recipient who has been receiving a benefit for at least 12 full months as of June 30 will receive a full increase. Members receiving benefits for at least one month but less than 12 full months as of June 30 will receive a pro rata increase. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 88 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 2.PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. Beginning in 2019, the COLA will be fixed at 1 percent. Under funding measurements from 2017, the 2.5 percent COLA trigger was never expected to occur and was subsequently removed from law. Post retirement increases are given each year except for annuitants who have been receiving a benefit for only 31 to 41 months. These annuitants will receive a prorated amount of the increase on a sliding scale. C.CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1.GERF Contributions Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2018. The City was required to contribute 7.50% for Coordinated Plan members. The City’s contributions to the GERF for the year ended December 31, 2018, were $1,122,359. The City’s contributions were equal to the required contributions as set by state statute. 2.PEPFF Contributions Legislation increased both employee and employer contribution rates in the Police and Fire Plan. Employee rates increased from 10.80 percent of pay to 11.30 percent and employer rates increase from 16.20 percent to 16.95 percent on January 1, 2019. On January 1, 2020 employee rates increase to 11.80 percent and employer rates increase to 17.70 percent. The City’s contributions to the PEPFF for the year ended December 31, 2018 were $1,210,648. The City’s contributions were equal to the required contributions as set by state statute. D.PENSIONS COST 1.GERF Pension Costs At December 31, 2018, the City reported a liability of $12,798,290 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2018. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $419,668. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018 the City’s proportion was .2269% which was a decrease of .0011% from its proportion measured as of June 30, 2017. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 89 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Post-retirement benefit increases were changed from 1.0% per year with a provision to increase to 2.5% upon attainment of 90% funding ratio to 50% of the Social Security Cost of Living Adjustment, not less than 1.0% and not more than 1.5%, beginning January 1, 2019. If changes expected to have a significant effect on the measurement of the net pension liability had occurred between the measurement date and the reporting date, the entity would include a brief description of the nature of those changes. For the year ended December 31, 2018, the City recognized pension expense of $1,366,006 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $97,870 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2018, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience 338,749$ 376,345$ Changes in actuarial assumptions 1,237,342 1,438,024 Difference between projected and actual investment earnings - 1,295,243 Changes in proportion 251,906 69,088 Contributions paid to PERA subsequent to the measurement date 608,703 - Total 2,436,700$ 3,178,700$ $608,703 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31,Amount 2019 507,295$ 2020 (625,664) 2021 (96,512) 2022 (267,122) 2023 - Thereafter - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 90 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 2.PEPFF Pension Costs At December 31, 2018, the City reported a liability of $7,695,776 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018, the City’s proportion was .7220%, which was a decrease of .0210% from its proportion measured as of June 30, 2017. The City also recognized $64,980 for the year ended December 31, 2018, as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. Beginning in January 1, 2019, the COLA will be fixed at 1 percent. Under funding measurements from 2017, the 2.5 percent COLA trigger was never expected to occur and was subsequently removed from law. For the year ended December 31, 2018, the City recognized pension expense of $930,249 for its proportionate share of the PEPFF’s pension expense. At December 31, 2018, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience 310,183$ 1,906,671$ Changes in actuarial assumptions 9,637,336 11,329,185 Difference between projected and actual investment earnings - 1,586,586 Changes in proportion 698,853 531,006 Contributions paid to PERA subsequent to the measurement date 651,164 - Total 11,297,536$ 15,353,448$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 91 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 $651,164 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31,Amount 2019 (133,627)$ 2020 (500,037) 2021 (1,103,915) 2022 (3,072,374) 2023 102,877 Thereafter - E.ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions: GERF PEPFF Inflation 2.50% per year 2.50% per year Salary Growth 3.25% per year after 26 years of service 3.25% per year after 25 years of service Investment Rate of Return 7.50%7.50% The total pension liability for each of the defined benefit cost-sharing plans was determined by an actuarial valuation as of June 30, 2018, using the entry age normal actuarial cost method. Inflation is assumed to be 2.50 percent for the GERF and PEPFF. Salary growth assumptions in the GERF decrease in annual increments from 11.25 percent after one year of service, to 3.25 percent after 26 years of service. In the PEPFF. Salary growth assumptions decrease from 12.25 percent after one year of service to 3.25 percent after 25 years of service. Mortality rates for all plans are based on RP-2014 mortality tables. The tables are adjusted slightly to fit PERA's experience. Actuarial assumptions for the General Employees Plan are reviewed every four to six years. The most recent six-year experience study for the General Employees Plan was completed in 2015. The most recent four- year experience study for the Police and Fire Plan was completed in 2016. The following changes in actuarial assumptions occurred in 2018: General Employees Fund The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. Police and Fire Fund The mortality projection scale was changed from MP-2016 to MP-2017. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 92 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate, ranges of expected, future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic Stocks 39%5.10% International Stocks 19%5.30% Bonds (Fixed Income)20%0.75% Alternative Assets (Private Markets)20%5.90% Cash 2%0.00% Total 100% F.DISCOUNT RATE The discount rate used to measure the total pension liability in 2018 was 7.50%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund and the Police and Fire Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G.PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%) City's proportionate share of the GERF net pension liability 20,798,860$ 12,798,290$ 6,194,048$ City's proportionate share of the PEPFF net pension liability 16,500,227$ 7,695,776$ 414,861$ The net pension liability is generally liquidated by the Employee Benefits Internal Service Fund. H.PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 93 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 I. PENSION EXPENSE Pension expense recognized by the City for the fiscal year ended December 31, 2018 is as follows: GERF 1,364,747$ PEPFF 919,700 Total 2,284,447$ Note 8 DEFINED CONTRIBUTION PLAN Four council members of the City of St. Louis Park, Minnesota, are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official’s employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% (.0025) of the assets in each member’s account annually. Total contributions made by the City during fiscal year 2018 were: Required Employer Employee (Pension Expense) Employee Employer Rate 2,428$ 2,428$ 5% 5% 5% Contribution Amount Percentage of Covered Payroll Note 9 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) For the year ended December 31, 2018, the City implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. GASB Statement No. 75 established new accounting and financial reporting requirments for governmenty whoes employees are provided OPEB. Net position has not been restated as a result of the change in accouhnting principle because its effects on the financial statements were not material. A.PLAN DESCRIPTION In addition to providing the pension benefits described in Note 7 and 8, the City provides post-employment health care benefits, as defined in paragraph B, through its group health insurance plan (the plan). The plan is a single- employer defined benefit OPEB plan administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a and 299A.465. The benefits, benefit levels, employee Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 94 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. B. BENEFITS PROVIDED The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Police officers, firefighters, sergeants, and dispatchers age 50 and over with 3 years of service, or age 65 with 1 year of service, may continue medical and dental coverage at their own expense. Non-union and 49ers union employees age 55 with 3 years of service, age 65 with 1 year of service, any age with 30 years of service, or those whose age plus service is at least 90 may continue medical and dental coverage at their own expense. Employees may obtain dependent coverage at retirement only if the employee was receiving dependent coverage immediately prior to retirement. The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee’s death. All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer. C. PARTICIPANTS As of the December 31, 2018 actuarial valuation, participants of the plan consisted of: Active employees electing coverage 262 Active employees waiving coverage 2 Retirees electing coverage 15 Total 279 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 95 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $3,500,643 was measured as of December 31, 2017, and was determined by an actuarial valuation as of December 31, 2018. Changes in the total OPEB liability during 2018 were: Changes for the year: Service cost 273,798$ Interest cost 126,654 Changes of benefit terms - Differences between expected and actual experience - Changes in assumptions 120,221 Benefit payments (140,966) Net changes 379,707 Balance - beginning of year 3,120,936 Balance - end of year 3,500,643$ There were no plan changes since the measurement date of December 31, 2017. E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.75% Salary increases Based on most recently disclosed assumptions for the pension plan in which the employee participates Discount rate 3.31% 20-year muncipal bond yield 3.31% Healthcare cost trend rates 6.9% in 2018 gradually decreasing over several decades to an ultimate rate of 4.40% in 2075 Retirees' share of benefit-related costs 100% Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return were based on published rate information for 20-year, tax exempt, municipal bonds as of the measurement date. (Fidelity 20-year Municipal 6.0. AA Index) Mortality rates for general employees were based on the RP-2014 Mortality tables with projected mortality improvements based on scale MP-2015, and other adjustments mortality rates for Police and Fire were based on the RP-2000 mortality tables with projected mortality improvements based on scale AA, and other adjustments. The actuarial assumptions used in the December 31, 2018 valuation are similar to those used to value pension liabilities for Minnesota public employees. The state pension plans base their assumptions on periodic experience studies. Changes in assumptions and other inputs since the prior measurement date reflect a decrease in the discount rate from 3.81% to 3.31%. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 96 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE The following table presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1% lower (2.31%) or 1% higher (4.31%) than the current discount rate: 1% Decrease Discount Rate 1% Increase (2.31%) (3.31%) (4.31%) Total OPEB liability 3,752,684$ 3,500,643$ 3,264,159$ G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST TREND RATES The following table presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower (5.90% decreasing to 3.4%) or 1% higher (7.90% decreasing to 5.40%) than the current healthcare cost trend rates: Current Healthcare 1% Decrease Cost Trend Rates 1% Increase Total OPEB liability 3,099,374$ 3,500,643$ 3,973,215$ H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2018, the City recognized $415,149 of OPEB expense. At December 31, 2018, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contributions subsequent to the measurement date 138,323$ -$ Changes in assumption 105,524 - Total 243,847$ -$ $138,323 of the deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ending December 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended OPEB December 31, Expense 2019 14,697$ 2020 14,697 2021 14,697 2022 14,697 2023 14,697 Thereafter 32,039 105,524$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 97 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 10 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The City has established interfund loans to finance infrastructure improvements, project reimbursements, housing rehabilitation loans and to provide initial financing for TIF districts. A summary at December 31, 2018 is as follows: Interfund Interfund Loan Loan Receivable Payable Major Funds: Development EDA 4,637,188$ -$ Redevelopment District - 4,637,188 Total 4,637,188$ 4,637,188$ The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as due from other funds in the advancing fund, and a due to other fund in the fund with the deficit, until adequate resources are received. A summary at December 31, 2018 is as follows: Due From Due To Other Funds Other Funds Major Funds: Permanent Improvement Revolving 1,346,378$ -$ Other: Special Service Districts - 435,811 Capital Projects - 910,567 Total 1,346,378$ 1,346,378$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 98 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Interfund Transfers Interfund transfers at December 31, 2018 are as follows: Housing General Rehabilitation Debt Service Transfers out General -$ -$ 380,000$ Housing Rehabilitation 8,431 - 332,871 Redevelopment District - 160,000 1,006,909 Nonmajor Governmental 69,493 - - Water 569,230 - - Sewer 790,883 - - Solid Waste 201,292 - - Storm Water 289,747 - - Total transfers in 1,929,076$ 160,000$ 1,719,780$ Fund Transfers in Nonmajor Internal Governmental Service Funds Total Transfers out General 460,000$ 200,000$ 1,040,000$ Housing Rehabilitation - - 341,302 Redevelopment District 2,641,130 -3,808,039 Nonmajor Governmental 349,628 -419,121 Water 1,286 32,754 603,270 Sewer 21,181 32,754 844,818 Solid Waste - 32,754 234,046 Storm Water - 32,712 322,459 Total transfers in 3,473,225$ 330,974$ 7,613,055$ Transfers in Fund Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to a debt service fund in accordance with bond documents, (3) move funds in accordance with the City’s adopted capital improvement plan to support project costs, and (4) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with City policy. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 99 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 11 FUND BALANCE A.CLASSIFICATIONS At December 31, 2018, a summary of the governmental fund balance classifications are as follows: Nonspendable Restricted Committed Assigned General Fund Prepaid items 50,202$ -$ -$ -$ Inventories 208,730 - - - E-911 purposes - 272,840 - - Inspections - - - 550,000 DWI enforcement - - - 107,287 Fire expenditures - - - 17,920 Tax court petitions - - - 200,000 Windsource power - - - 50,000 City Hall Remodel - - - 100,000 Housing Rehabilitation - - 225,179 4,968,353 Debt service - 3,738,092 - - Development EDA Prepaid items - - - - Economic development - - 266,336 - Redevelopment efforts - - - 24,621,684 Redevelopment districts - 5,803,367 - - Other governmental funds Prepaid items 19,700 - - - Capital improvements - 257,756 - 2,646,731 Light pole replacement - -- 370,000 Community development - 461,828 - - Cable TV equipment purchases - 280,989 572,769 641,461 Police and fire purposes - 1,654,521 - - Special service districts - -- 139,030 Street rehabilitation - -- 456,637 Total 278,632$ 12,469,393$ 1,064,284$ 34,869,103$ Unless separately displayed, contraints are not more specific than the purpose of the fund. Fund/Description Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 100 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 B.MINIMUM FUND BALANCE POLICY The City Council has formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target of unassigned fund balance amount for cash flow timing needs in the range of 40-50% of the subsequent years budget expenditures. At December 31, 2018, the unassigned fund balance for the General Fund was 45.3% of the subsequent year’s budgeted expenditures. Note 12 DEFICIT FUND BALANCE/NET POSITION At December 31, 2018, individual funds with deficit fund balance/net position are as follows: Amount Future Financing Source Redevelopment District: HRA Levy (1,107,841)$ General property tax levy Elmwood Village (2,873,487) Future tax increment Hard Coat TIF District (52,823) Future tax increment Excelsior Blvd TIF District (31,791) Future tax increment Other Governmental Funds: Westwood Hills Nature Center Constru (1,086,169) Future bonding Park Improvement (456,394) Future property taxes Streets Capital Projects (1,760,551) Future bonding/MSA reimburse Internal Service Funds: Employee Benefits (31,769,189) Future pension contributions and investment earnings Total (39,138,245)$ Note 13 COMMITMENTS AND CONTINGENCIES A.RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for risks of loss, including workers compensation, property and general liability and employee health and accident insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. PROPERTY AND CASUALTY INSURANCE Property and casualty insurance coverage is provided through the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool currently operating as a common risk management and insurance program for Minnesota cities: general liability, excess liability property, automobile, marine, crime, employee dishonesty, boiler and open meeting law. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through member premiums and reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions of the insurance policies. The deductible amounts are $50,000 for each occurrence and a $150,000 annual aggregate. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 101 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Current State Statute (Minnesota Statute subd. 466.04) provides limits of liability for the City. These limits are that the combination of defense expense and indemnification expense shall not exceed $500,000 in the case of one claimant or $1,500,000 for any number of claims arising out of a single occurrence. B. LITIGATION The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. C. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2018. D. TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT The City EDA provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage private development, redevelopment, renovation and renewal, growth in low-to-moderate-income housing, and economic development within the City. TIF captures the increase in tax capacity and property taxes from development or redevelopment to provide funding for the related project. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 102 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The City has numerousl tax increment pay-as-you-go agreements. The agreements are not a general obligation of the City and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the financial statements of the City. The pay-as-you-go note provides for payment to the developer a percentage of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. Principal and interest shall be paid on February 1 and August 1. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment. Details of the pay-as-you-go notes are as follows: Issue Principal Interest First Final  % TIF 2018 12/31/2018 District Name / Note Description Date Amount Rate Note Pymt  Note Pymt Available Payments Balance Zarthan/16th Ave TIF District   Rottlund ‐ Town Homes/Condos 11/06/2000 1,395,547  8.00% 08/01/2003 02/01/2021 89.75% 238,273  511,429      CSM ‐ Town Place Suites 10/25/2000 1,101,362  8.00% 08/01/2003 02/01/2022 89.75% 94,025   1,218,476       CSM ‐ Spring Hill Suites 10/25/2000 1,448,088  8.00% 08/01/2003 02/01/2022 89.75% 113,680  1,750,836     445,978    Mill City TIF District   MSP SLP Apartments 11/20/2000 3,431,137  8.75% 08/1/2002 02/01/2023 94.75% 528,698  3,543,995     Park Commons TIF District   Excelsior & Grand Phase I 07/01/2003 3,500,000  8.50% 08/05/2005 02/01/2023 97.00% 976,442  3,126,135       Excelsior & Grand Phase NE 06/05/2006 4,668,633  8.50% 08/01/2006 02/01/2028 97.00% 496,951  4,654,653       Excelsior & Grand Phase NW 06/05/2006 4,079,105  8.50% 08/01/2007 02/01/2028 97.00% 512,157  4,488,259       Excelsior & Grand Phase E 06/05/2006 3,300,715  8.50% 08/01/2006 02/01/2028 97.00% 303,186  4,027,739     2,288,736   Edgewood TIF District   Real Estate Recycling / Edgewood Investors 02/01/2004 600,000    1.70% 08/01/2006 08/01/2019 95.00% 56,379    48,298    Wolfe Lake TIF District   Belt Line Industrial Park 01/20/2006 996,000    7.50% 08/01/2006 02/01/2020 95.00% 117,352  155,141    Aquila Commons TIF District    Stonebridge Development 05/26/2006 1,050,000  5.75% 08/01/2008 08/01/2018 95.00% 124,226   ‐   Elmwood Village TIF District    Webster LLC / Adagio 07/29/2013 820,000      4.00% 08/01/2014 08/01/2019 95.00% 239,731  160,964      Medley Row 07/29/2013 200,000      4.00% 08/01/2014 02/01/2020 95.00% 54,578    64,721      Hoigaard Village 2010A TIF Revenue Bonds 10/21/2010 3,495,000  1.5‐5%02/01/2011 02/01/2023 95.00% 365,869  1,620,000       Hoigaard Village 2010B  TIF Revenue Note 10/21/2010 935,000      3.99% 02/01/2011 02/01/2018 95.00% 83,852    ‐   744,030    Highway 7 Corporate Center TIF District   Highway 7 Business Center Note A 07/24/2008 2,100,000  1.00% 08/01/2008 08/01/2026 95.00% 99,929   960,164      Highway 7 Business Center Note B 07/24/2008 360,000      1.00% 08/01/2008 08/01/2026 95.00% 17,131   164,600      Highway 7 Business Center Note C 07/24/2008 72,000    1.00%08/01/2027 95.00%‐   79,566      Highway 7 Business Center Note D 07/24/2008 23,000    1.00%08/01/2027 95.00%‐   25,417    117,060    West End TIF District   Duke Realty Limited Partnership 11/01/2010 21,100,000  6.75% 02/01/2012 08/01/2031 95.00% 1,614,363  20,909,528    Ellipse on Excelsior TIF District   Ellipse on Excelsior Note A 08/01/2011 1,230,000  6.00% 02/01/2012 02/01/2019 95.00% 360,134   ‐     Ellipse on Excelsior Note B 08/01/2011 220,000      6.00% 02/01/2012 08/01/2019 95.00% 88,578    ‐     E2 08/01/2015 686,195      5.60% 08/01/2015 02/01/2021 95.00% 153,267  298,680    601,979    Eliot Park TIF District   Cedar Lake Road Apartments LLC 05/18/2016 1,100,000  5.50% 08/01/2016 02/01/2021 95.00% 350,721  644,066    Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 103 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 E. LOUISIANA COURT PROJECT The City of St. Louis Park has entered into an agreement with Project for Pride in Living Louisiana Court Limited Partnership to issue $4,505,000 in General Obligation Bonds – Series 2000A for the purpose of acquiring and renovating certain rental housing facilities within the City of St. Louis Park intended primarily for low and moderate income persons and their families. During 2010, the 2000A bonds were refunded by the $1,770,000 General Obligation Refunding Bonds, Series 2010C. The City of St. Louis Park will receive monthly principal and interest payments from Project for Pride in Living Louisiana Court Limited Partnership to cover all debt service obligations of the City of St. Louis Park on a semi-annual basis. In the event that the City of St. Louis Park does not receive payment from Project for Pride in Living, the City of St. Louis Park is still under obligation to make all debt service payments. At such time, the City of St. Louis Park would pursue collection of above referenced principal and interest payments per the agreement dated May 1, 2000. As of December 31, 2018, the outstanding principal on the bonds is $1,520,000. F. CONSTRUCTION COMMITMENTS The City has active construction projects as of December 31, 2018. The projects include street construction in areas with newly developed housing, widening and construction of existing streets and bridges, and the construction of additional storm sewer and utility improvements. At year end the City’s commitments with contractors are as follows: Remaining Project Commitment 2017 Pavement Management and Watermain 59,220$ W. 37th Street Bridge Replacement 323,206 Water Treatment Plant #4 Rehab 85,824 Water Treatment Plant #16 Rehab 26,010 Rec Center Parking Lot Mill and Overlay 74,176 Recoat Reservoir at Water Treatment Plant #6 939,950 Pedestrian Flasher System 119,223 2018 Alley Reconstruction 21,130 Connect the Park - Utica Avenue 224,789 Trunk Hwy 7 at Wooddale Ave. bridge 167,925 2018 Pavement Mgmt. (Area 6)314,791 Rec Center Roof and Exterior Rehab 128,538 Westwood Hills Nature Center Earthwork 522,015 3,006,797$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 104 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 14 CONDUIT DEBT OBLIGATIONS From time to time, the City has issued industrial, hospital or housing revenue bonds to provide financial assistance to private- sector entities for the acquisition and construction of industrial, commercial or housing facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2018, there were 16 revenue bonds issued. The aggregate principal amount payable as of December 31, 2018 is $181,333,977. Note 15 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for reporting periods beginning after June 15, 2018. Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods beginning after December 15, 2018. Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2018. Statement No. 89 Accounting for Interest Cost Incurred before the end of a Construction Period. The Provisions of this statement are effective for the reporting periods beginning after December 15, 2019. Statement No. 90 Major Equity Interest an amendment of GASB Statements No. 14 and No. 61. The provisions of this statement are effective for the reporting periods beginning after December 15, 2018. Statement No. 91 Conduit Debt Obligations. The provisions of this statement are effective for the reporting periods beginning after December 15, 2020. The effect these standards may have on future financial statements is not determinable at this time. Note 16 SUBSEQUENT EVENTS On April 10, 2019, the City issued $22,220,000 General Obligation Bonds, Series 2019A on April 10, 2019, with a true interest cost of 2.64% to finance: (i) construction of a new Westwood Hills Nature Center; and (ii) the required City contribution of various improvements for the Southwest Light Rail Transit line, improvements to the City’s fiber system, the costs of sidewalks and trails including reconstruction costs of sidewalks and trails along Cedar Lake Road related to the City’s Connect the Park Initiative, and the cost of reconstruction to Cedar Lake Road. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 105 REQUIRED SUPPLEMENTARY INFORMATION Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 106 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 4 For The Year Ended December 31, 2018 Budgeted Amounts Original Final Revenues Property taxes 25,705,886$ 25,705,886$ 26,580,140$ 874,254$ Licenses and permits Business regulatory licenses 648,390 648,390 627,985 (20,405) Non-business licenses and permits 3,276,258 3,276,258 3,373,660 97,402 Total licenses and permits 3,924,648 3,924,648 4,001,645 76,997 Intergovernmental Federal 219,500 219,500 237,694 18,194 State shared taxes Highway user tax 680,835 680,835 759,968 79,133 Insurance premium tax 697,500 697,500 721,626 24,126 State of Minnesota Other 115,637 115,637 105,491 (10,146) PERA 45,205 45,205 45,205 - Police training reimbursement 45,000 45,000 51,678 6,678 School district 58,700 58,700 60,012 1,312 Other local governments - - 24,416 24,416 Total intergovernmental 1,862,377 1,862,377 2,006,090 143,713 Charges for services General government 868,250 868,250 809,491 (58,759) Public safety 113,650 113,650 194,406 80,756 Public works - signals/lighting 17,250 17,250 13,000 (4,250) Culture and rec 1,164,760 1,164,760 1,167,711 2,951 Rent of City property 1,200,412 1,200,412 1,288,750 88,338 Total charges for services 3,364,322 3,364,322 3,473,358 109,036 Fines and forfeits Municipal court 240,000 240,000 233,486 (6,514) Liquor violations 12,000 12,000 6,000 (6,000) Property forfeits 15,000 15,000 38,760 23,760 Miscellaneous violations 2,200 2,200 3,900 1,700 Total fines and forfeits 269,200 269,200 282,146 12,946 Interest income 160,000 160,000 251,494 91,494 Miscellaneous 159,575 159,575 188,912 29,337 Total revenues 35,446,008 35,446,008 36,783,785 1,337,777 Actual Amounts Variance with Final Budget Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 107 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 4 For The Year Ended December 31, 2018 Budgeted Amounts Expenditures Original Final General government Administration Current Personal services 842,007$ 842,007$ 916,845$ (74,838)$ Supplies 3,500 3,500 4,615 (1,115) Other services and charges 811,871 811,871 605,789 206,082 Capital outlay - - 0 - Total administration 1,657,378 1,657,378 1,527,249 130,129 Finance Current Personal services 582,459 582,459 575,501 6,958 Materials and supplies 3,000 3,000 2,503 497 Other services and charges 393,293 393,293 386,031 7,262 Total finance 978,752 978,752 964,035 14,717 Assessing Current Personal services 741,940 741,940 678,700 63,240 Materials and supplies 1,600 1,600 802 798 Other services and charges 16,325 16,325 31,214 (14,889) Total assessing 759,865 759,865 710,716 49,149 Human resources Current Personal services 624,566 624,566 607,101 17,465 Supplies 2,000 2,000 6,270 (4,270) Other services and charges 170,100 170,100 121,678 48,422 Total human resources 796,666 796,666 735,049 61,617 Community development Current Personal services 1,465,011 1,465,011 1,523,542 (58,531) Materials and supplies 1,300 1,300 586 714 Other services and charges 13,600 13,600 35,592 (21,992) Total community development 1,479,911 1,479,911 1,559,720 (79,809) Facilities maintenance Current Personal services 474,680 474,680 464,145 10,535 Materials and supplies 93,000 93,000 97,241 (4,241) Other services and charges 594,662 594,662 661,723 (67,061) Total facilities maintenance 1,162,342 1,162,342 1,223,109 (60,767) Actual Amounts Variance with Final Budget Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 108 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 4 For The Year Ended December 31, 2018 Budgeted Amounts Expenditures (continued)Original Final General government (continued) Communications and marketing Current Personal services 438,190$ 438,190$ 407,376$ 30,814$ Materials and supplies 27,500 27,500 11,284 16,216 Other services and charges 290,250 290,250 411,073 (120,823) Total communications, etc.755,940 755,940 829,733 (73,793) Information resources Current Personal services 860,032 860,032 834,906 25,126 Materials and supplies 24,500 24,500 20,933 3,567 Other services and charges 704,900 704,900 670,186 34,714 Total information services 1,589,432 1,589,432 1,526,025 63,407 Total general government 9,180,286 9,180,286 9,075,636 104,650 Public safety Police Current Personal services 8,749,932 8,749,932 8,827,173 (77,241) Materials and supplies 183,825 183,825 230,419 (46,594) Other services and charges 699,561 699,561 734,382 (34,821) Capital outlay 325,000 325,000 97,125 227,875 Total police 9,958,318 9,958,318 9,889,099 69,219 Fire protection Current Personal services 4,139,620 4,139,620 4,095,884 43,736 Materials and supplies 125,000 125,000 119,378 5,622 Other services and charges 393,353 393,353 415,256 (21,903) Total fire protection 4,657,973 4,657,973 4,630,518 27,455 Inspection services Current Personal services 2,317,505 2,317,505 2,152,674 164,831 Materials and supplies 12,000 12,000 8,262 3,738 Other services and charges 215,257 215,257 134,980 80,277 Total inspection services 2,544,762 2,544,762 2,295,916 248,846 Total public safety 17,161,053 17,161,053 16,815,533 345,520 Actual Amounts Variance with Final Budget Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 109 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 4 For The Year Ended December 31, 2018 Budgeted Amounts Expenditures (continued)Original Final Operations and recreation Public works administration Current Personal services 207,353$ 207,353$ 192,086$ 15,267$ Materials and supplies 5,500 5,500 2,271 3,229 Other services and charges 17,900 17,900 13,687 4,213 Total public works administration 230,753 230,753 208,044 22,709 Public works operations Current Personal services 1,542,300 1,542,300 1,484,174 58,126 Materials and supplies 532,500 532,500 559,094 (26,594) Other services and charges 1,017,057 1,017,057 955,675 61,382 Total public works operations 3,091,857 3,091,857 2,998,943 92,914 Culture and recreation Current Personal services 4,757,770 4,757,770 4,758,043 (273) Materials and supplies 848,198 848,198 878,049 (29,851) Other services and charges 2,103,182 2,103,182 1,921,711 181,471 Total culture and recreation 7,709,150 7,709,150 7,557,803 151,347 Total operations and recreation 11,031,760 11,031,760 10,764,790 266,970 Engineering Current Personal services 353,405 353,405 402,389 (48,984) Materials and supplies 8,000 8,000 5,296 2,704 Other services and charges 164,429 164,429 144,747 19,682 Total engineering 525,834 525,834 552,432 (26,598) Total expenditures 37,898,933 37,898,933 37,208,391 690,542 Revenues over (under) expenditures (2,452,925) (2,452,925) (424,606) 2,028,319 Other financing sources (uses) Transfers in 1,929,090 1,929,090 1,929,076 (14) Transfers out - - (1,040,000) (1,040,000) Total other financing sources (uses)1,929,090 1,929,090 889,076 (1,040,014) Net change in fund balances (523,835)$ (523,835)$ 464,470 988,305$ Fund balance - January 1 18,789,914 Fund balance - December 31 19,254,384$ Actual Amounts Variance with Final Budget Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 110 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS For The Year Ended December 31, 2018 2018 Total OPEB Liabilty: Service cost 273,798$ Interest cost 126,654 Changes in benefit terms - Differences between expected and actual experience - Changes in assumptions 120,221 Benefit payments (140,966) Net change in total OPEB liability 379,707 Total OPEB liability - beginning 3,120,936 Total OPEB liability - ending 3,500,643$ Covered-employee payroll $22,206,835 Total OPEB liabilty as a percentage of covered-employee payroll 15.8% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to show a ten year trend. Additional years will be added as they become available. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 111 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND Last Ten Years City's Proportionate State's Share of the City's Proportionate Net Pension Proportionate Plan City's City's Share (Amount) Liability and the Share of the Fiduciary Proportionate Proportionate of the Net State's Proportionate Net Pension Net Position Share Share (Amount) Pension Share of the Net Liability as a as a Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability Percentage of its Percentage Date Ending the Net Pension Pension Associated with Associated with Covered Covered of the Total June 30 December 31 Liability Liability (a) City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Pension Liability 2015 2015 0.2263% 11,728,040$ -$ 11,728,040$ 13,317,871$ 88.1%78.2% 2016 2016 0.2258% 18,333,840 239,395 18,573,235 14,027,206 132.4%68.9% 2017 2017 0.2269% 14,485,146 182,131 14,667,277 14,714,583 99.7%75.9% 2018 2018 0.2307% 12,798,290 419,668 13,217,958 15,513,575 85.2%79.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 112 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND Last Ten Years Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess)Payroll Covered Ending (a) Contribution (b)(a-b)(c)Payroll (b/c) December 31, 2015 1,026,806$ 1,026,806$ -$ 13,690,747$ 7.5% December 31, 2016 1,076,319 1,076,319 - 14,350,435 7.5% December 31, 2017 1,122,359 1,122,359 - 14,965,469 7.5% December 31, 2018 1,206,070 1,206,070 - 16,080,867 7.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 113 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND Last Ten Years Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount)Liability as a Net Position as Measurement Fiscal Year (Percentage) of of the Net Percentage of its a Percentage Date Ending the Net Pension Pension Covered Covered of the Total June 30 December 31 Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability 2015 2015 0.7170%8,146,798$ 6,568,763$ 124.0%86.6% 2016 2016 0.7090%28,453,404 6,826,711 416.8%63.9% 2017 2017 0.7010%9,464,334 7,214,850 131.2%85.4% 2018 2018 0.7220%7,695,776 7,675,241 100.3%88.8% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 114 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND Last Ten Years Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess)Payroll Covered Ending (a) Contribution (b)(a-b)(c)Payroll (b/c) December 31, 2015 1,087,225$ 1,087,225$ -$ 6,711,265$ 16.2% December 31, 2016 1,127,487 1,127,487 - 6,959,796 16.2% December 31, 2017 1,210,648 1,210,648 - 7,473,136 16.2% December 31, 2018 1,284,219 1,284,219 - 7,927,279 16.2% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 115 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2018 Note A LEGAL COMPLIANCE – BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the department level for the major funds. Note B MODIFIED APPROACH FOR CITY STREETS AND TRAILS INFRASTRUCTURE CAPITAL ASSETS In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital assets. The City defines infrastructure as the basic physical assets including the street and trail system; water treatment and distribution system; wastewater collection system; park and recreation lands and improvement system; storm water conveyance system; and building combined with site amenities such as parking and landscape areas used by the City in the conduct of its business. Each major infrastructure can be divided into subsystems. For example, the street and trail system can be divided into pavement widths, curb type and sidewalk. City owned streets could further be classified as collector or local. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems. The City elects to use the modified approach as defined in GASB Statement No. 34 for infrastructure reporting for its Pavement Management Program. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements: 1) The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established condition assessment level. 2) The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. The City’s policy relative to maintaining the street and trail assets is to achieve an average rating of “Good” for all segments. This acceptable rating allows minor cracking and patching of the pavement along with minor roughness that could be noticeable to the users of the system. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 116 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2018 In 2017, the City conducted a physical condition assessment of four of eight areas of the City. Going forward two areas will be assessed each year. Each street segment was assigned a physical condition based on potential defects. An Overall Condition Index (OCI) was assigned to each street and expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned the physical characteristics of a new street. The following conditions were defined: Range Description 86 - 100 Excellent 71 - 85 Very good 56 - 70 Good 41 - 55 Fair 26 - 40 Poor 11 - 25 Very poor 0 - 10 Failed As of December 31, 2018, the City’s street and trail system was rated at an OCI index of 67 on the average with detail condition as follows: The City’s streets are constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development trenching operations; (4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through short-term maintenance activities such as pothole patching, crack sealing, seal coating and overlaying. The City expended $4,201,721 on street maintenance for the year ending December 31, 2018. These expenditures delayed deterioration; however, the overall condition of the system was not improved through these maintenance expenditures. The City has estimated that the amount of annual expenditures through 2028 required to maintain the City’s street system at the average OCI rating of “good” is approximately $4,839,000. Year Maintenance Estimate Actual Expenditures OCI Rating 2016 3,999,000$ 2,731,582$ 64% 2017 4,255,000 4,494,315 67% 2018 4,839,000 4,201,721 67% Condition % of Streets and Trails Excellent to Good 62.1% Fair 14.3% Poor to Substandard 23.6% Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 117 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2018 Note C PENSION INFORMATION PERA – General Employees Retirement Fund 2018 Changes Changes in Actuarial Assumptions: -The mortality projection scale was changed from MP-2015 to MP-2017. -The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 Changes Changes in Actuarial Assumptions: -The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non- vested deferred member liability. -The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 Changes Changes in Actuarial Assumptions: -The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. -The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. -Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. PERA – Public Employees Police and Fire Fund 2018 Changes Changes in Actuarial Assumptions: -The mortality projection scale was changed from MP-2016 to MP-2017. 2017 Changes Changes in Actuarial Assumptions: -The single discount rate was changed from 5.6% to 7.5%. -Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. -Assumed rates of retirement were changed, resulting in fewer retirements. -The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested members. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 118 CITY OF ST. LOUIS PARK REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2018 -The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. -Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. -Assumed percentage of married female members was decreased from 65 percent to 60 percent. -Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. -The assumed percentage of female members electing Joint and Survivor annuities was increased. -The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. 2016 Changes Changes in Actuarial Assumptions: -The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. -The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. -The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Note D OPEB INFORMATION No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. There are no factors that affect trends in the amounts reported, such as changes in benefit terms or assumptions. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 119 COMBINING FUND STATEMENTS AND SCHEDULES Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 120 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 121 NONMAJOR GOVERNMENTAL FUNDS Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 122 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 123 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. CAPITAL PROJECTS FUNDS The Capital Projects Funds account for financial resources that are restricted, committed, or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 124 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 125 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 15 NONMAJOR GOVERNMENTAL FUNDS December 31, 2018 Special Capital Revenue Projects Total Assets Cash and investments 1,565,518$ 3,943,778$ 5,509,296$ Accrued interest receivable 4,062 22,587 26,649 Due from other governments - 380,049 380,049 Accounts receivable 153,248 801,360 954,608 Prepaid items - 19,700 19,700 Special assessments receivable - delinquent 1,100 8,023 9,123 Special assessments receivable - deferred 201,721 723,433 925,154 Due from other funds 1,346,378 1,346,378 Loans receivable - noncurrent 487,677 - 487,677 Pledges receivable - current 100,000 100,000 Pledges receivable - noncurrent 1,150,000 1,150,000 Total assets 2,413,326$ 8,495,308$ 10,908,634$ Liabilities Accounts payable 49,206$ 714,802$ 764,008$ Salaries payable 22,075 - 22,075 Due to other governments - 545,497 545,497 Contracts payable - 1,574,311 1,574,311 Due to other funds 1,223 1,345,155 1,346,378 Unearned revenue - 245,343 245,343 Total liabilities 72,504 4,425,108 4,497,612 Deferred inflows of resources Unavailable revenue 244,745 1,981,169 2,225,914 Fund balances Nonspendable - 19,700 19,700 Restricted 742,817 1,912,277 2,655,094 Committed 572,769 - 572,769 Assigned 780,491 3,473,368 4,253,859 Unassigned - (3,316,314) (3,316,314) Total fund balances 2,096,077 2,089,031 4,185,108 Total liabilities, deferred inflows of resources, and fund balances 2,413,326$ 8,495,308$ 10,908,634$ Page 126 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 126 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 16 CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2018 Special Capital Revenue Projects Total Revenues Property taxes -$ 810,000$ 810,000$ Franchise taxes 620,637 3,184,041 3,804,678 Intergovernmental 12,033 869,084 881,117 Charges for services 22,728 20,600 43,328 Special assessments 178,897 172,499 351,396 Interest income 21,685 132,317 154,002 Miscellaneous 44,901 284,849 329,750 Total revenues 900,881 5,473,390 6,374,271 Expenditures Current Public safety - 331,894 331,894 Public information 567,653 - 567,653 Operations and recreation - 266,754 266,754 Engineering - 3,897,465 3,897,465 Housing maintenance 12,040 - 12,040 Social and economic development 254,737 - 254,737 Capital outlay Public safety - 24,005 24,005 Public information 177,889 - 177,889 Operations and recreation - 4,588,865 4,588,865 Engineering - 7,560,984 7,560,984 Debt service Bond issuance costs - 28,805 28,805 Total expenditures 1,012,319 16,698,772 17,711,091 Revenues over (under) expenditures (111,438)(11,225,382)(11,336,820) Other financing sources (uses) Transfers in - 3,473,225 3,473,225 Transfers out (59,506)(359,615)(419,121) Bonds issued - 1,719,392 1,719,392 Premiums on bonds issue - 5,413 5,413 Total other financing sources (uses)(59,506)4,838,415 4,778,909 Net change in fund balances (170,944)(6,386,967)(6,557,911) Fund balances - January 1 2,267,021 8,475,998 10,743,019 Fund balances - December 31 2,096,077$ 2,089,031$ 4,185,108$ Page 127 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 127 NONMAJOR SPECIAL REVENUE FUNDS Cable Television Fund – used to account for revenues received from franchise fees and expenditures related to regulation of the privately owned cable television company. Community Development Fund – used to account for funds received under Title I of the Housing and Community Development Act of 1974. Special Service Districts Fund – used to account for the operations of Special Service Districts. Revenues are received from each district’s property owners and are used to provide additional services, primarily snow removal, within each District. Page 128 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 128 - This page intentionally left blank - Page 129 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 129 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 17 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2018 Assets Cash and investments 1,385,164$ 17,129$ 163,225$ 1,565,518$ Accrued interest receivable 3,698 46 318 4,062 Accounts receivable 153,248 - - 153,248 Special assessments receivable - delinquent - - 1,100 1,100 Special assessments receivable - deferred - - 201,721 201,721 Loans receivable - noncurrent - 487,677 - 487,677 Total assets 1,542,110$ 504,852$ 366,364$ 2,413,326$ Liabilities Accounts payable 24,816$ -$ 24,390$ 49,206$ Salaries payable 22,075 - - 22,075 Due to other funds - - 1,223 1,223 Total liabilities 46,891 - 25,613 72,504 Deferred inflows of resources Unavailable revenue - 43,024 201,721 244,745 Fund balances Restricted 280,989 461,828 - 742,817 Committed 572,769 - - 572,769 Assigned 641,461 - 139,030 780,491 Total fund balances 1,495,219 461,828 139,030 2,096,077 Total liabilities, deferred inflows of resources, and fund balances 1,542,110$ 504,852$ 366,364$ 2,413,326$ Cable Television Community Development Special Service Districts Total Page 130 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 130 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING SCHEDULE OF REVENUES,Statement 18 EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2018 Revenues Franchise taxes 620,637$ -$ -$ 620,637$ Intergovernmental - 12,033 - 12,033 Charges for services - -22,728 22,728 Special assessments - -178,897 178,897 Interest income 19,616 260 1,809 21,685 Miscellaneous 576 40,000 4,325 44,901 Total revenues 640,829 52,293 207,759 900,881 Expenditures Current Public information Personal services 456,822 - - 456,822 Supplies 6,497 - - 6,497 Other services and charges 104,334 - - 104,334 Housing maintenance Other services and charges - 12,040 - 12,040 Social and economic development Supplies - - 18,433 18,433 Other services and charges - - 236,304 236,304 Capital outlay Public information 177,889 - - 177,889 Total expenditures 745,542 12,040 254,737 1,012,319 Revenues over (under) expenditures (104,713) 40,253 (46,978) (111,438) Other financing sources (uses) Transfers out (59,506) - - (59,506) Net change in fund balances (164,219) 40,253 (46,978) (170,944) Fund balances - January 1 1,659,438 421,575 186,008 2,267,021 Fund balances - December 31 1,495,219$ 461,828$ 139,030$ 2,096,077$ Cable Television Community Development Special Service Districts Total Page 131 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 131 NONMAJOR CAPITAL PROJECTS FUNDS Police and Fire Pension Fund – used to account for pension refunds received by the police and fire departments. These funds must be used for specific police and fire purposes. Permanent Improvement Revolving Fund – used to account for the resources and expenditures required for capital improvements which will provide a direct or significant indirect benefit to individual property owners. Financing of these projects is provided by shared costs with other organizations, Municipal State Aid and special assessements. Westwood Hills Nature Center Construction Project Fund – used to account for the construction of a new nature center. Revenues will be provided by the issuance of bonds. Park Improvement Fund – used to account for the financing of land acquisition and development for park purposes. Revenues are provided by park dedication fees, a school district contribution, rent and a property tax levy. Sidewalks and Trails Fund – used to account for Connect The Park projects to construct sidewalks, trails and bikeways. Revenues will be provided by the issuance of general obligation bonds. Streets Capital Projects Fund – used to account for street construction projects. Revenues are provided by the General Fund for maintenance expenditures or by the issuance of general obligation bonds. Pavement Management Fund – used to account for the financing of street rehabilitation. Revenues are provided by a franchise fee and transfers from the Sanitary Sewer Utility and Water Utility Funds. Page 132 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 132 - This page intentionally left blank - Page 133 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 133 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 19 NONMAJOR CAPITAL PROJECTS FUNDS December 31, 2018 Police and Fire Pensions Permanent Improvement Revolving Westwood Hills Nature Center Construction Project Park Improvement Sidewalks and Trails Streets Capital Projects Pavement Management Total Assets Cash and investments 1,650,051$ 1,795,943$ -$ 31,147$ 450,181$ -$ 16,456$ 3,943,778$ Accrued interest receivable 4,470 8,033 - - 2,107 - 7,977 22,587 Due from other governments - - - 22,351 - 357,698 - 380,049 Accounts receivable - - - - - - 801,360 801,360 Prepaid items - - - 13,200 - -6,500 19,700 Special assessments receivable - delinquent - 8,023 - - - -- 8,023 Special assessments receivable - deferred - 723,433 - - - -- 723,433 Due from other funds - 1,346,378 - - - -- 1,346,378 Pledges receivable - current - -- 100,000 - -- 100,000 Pledges receivable - noncurrent - -- 1,150,000 - -- 1,150,000 Total assets 1,654,521$ 3,881,810$ -$ 1,316,698$ 452,288$ 357,698$ 832,293$ 8,495,308$ Liabilities Accounts payable -$ 133,910$ 153,611$ 73,085$ -$ 354,196$ -$ 714,802$ Due to other governments - - - - 194,532 932 350,033 545,497 Contracts payable - - 21,991 204,664 - 1,328,533 19,123 1,574,311 Due to other funds - - 910,567 - - 434,588 - 1,345,155 Unearned revenue - - - 245,343 - - - 245,343 Total liabilities - 133,910 1,086,169 523,092 194,532 2,118,249 369,156 4,425,108 Deferred inflows of resources Unavailable revenue - 731,169 - 1,250,000 - - - 1,981,169 Fund balances Nonspendable - - - 13,200 - - 6,500 19,700 Restricted 1,654,521 - - - 257,756 - - 1,912,277 Assigned - 3,016,731 - - - - 456,637 3,473,368 Unassigned - - (1,086,169) (469,594) - (1,760,551) - (3,316,314) Total fund balances 1,654,521 3,016,731 (1,086,169) (456,394) 257,756 (1,760,551) 463,137 2,089,031 Total liabilities, deferred inflows of resources, and fund balances 1,654,521$ 3,881,810$ -$ 1,316,698$ 452,288$ 357,698$ 832,293$ 8,495,308$ Page 134 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 134 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING SCHEDULE OF REVENUES,Statement 20 EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS For The Year Ended December 31, 2018 Police and Fire Pensions Permanent Improvement Revolving Westwood Hills Nature Center Construction Project Park Improvement Sidewalks and Trails Streets Capital Projects Pavement Management Inter-Fund Eliminations Total Revenues Property taxes -$ -$ -$ 810,000$ -$ -$ -$ -$ 810,000$ Franchise taxes - - - - - - 3,184,041 - 3,184,041 Intergovernmental - - - 189,702 - 679,382 - - 869,084 Charges for services 2,103 - - 18,497 - - - - 20,600 Special assessments - 172,499 - - - - - - 172,499 Interest income 24,285 42,507 - 5,836 34,026 - 25,663 - 132,317 Miscellaneous - 442 - 284,407 - - - - 284,849 Total revenues 26,388 215,448 - 1,308,442 34,026 679,382 3,209,704 - 5,473,390 Expenditures Current Public safety 155,355 176,539 - - - - - - 331,894 Operations and recreation - - - 266,754 - - - - 266,754 Engineering - - - - - - 3,897,465 - 3,897,465 Capital outlay Public safety 24,005 - - - - - - - 24,005 Operations and recreation - - 1,065,614 3,523,251 - - - - 4,588,865 Engineering - 62,980 - - 2,091,463 5,406,541 - - 7,560,984 Debt service Bond issuance costs - - - 7,038 21,767 - - - 28,805 Total expenditures 179,360 239,519 1,065,614 3,797,043 2,113,230 5,406,541 3,897,465 - 16,698,772 Revenues over (under) expenditures (152,972) (24,071) (1,065,614) (2,488,601) (2,079,204) (4,727,159) (687,761) - (11,225,382) Other financing sources (uses) Transfers in - 185,000 - 20,555 - 3,013,225 275,000 (20,555) 3,473,225 Transfers out - (9,986) (20,555) - (45,373) - (304,256) 20,555 (359,615) Bonds issued - -- 595,069 1,124,323 - -- 1,719,392 Premiums on bonds issue - -- 2,969 2,444 - -- 5,413 Total other financing sources (uses)- 175,014 (20,555) 618,593 1,081,394 3,013,225 (29,256) - 4,838,415 Net change in fund balances (152,972) 150,943 (1,086,169) (1,870,008) (997,810) (1,713,934) (717,017) - (6,386,967) Fund balances - January 1 1,807,493 2,865,788 - 1,413,614 1,255,566 (46,617) 1,180,154 - 8,475,998 Fund balances - December 31 1,654,521$ 3,016,731$ (1,086,169)$ (456,394)$ 257,756$ (1,760,551)$ 463,137$ -$ 2,089,031$ Page 135 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 135 FUNDS INCLUDED IN DEBT SERVICE FUND 2010A General Obligation Bonds 2012A General Obligation HIA Bonds 2010D General Obligation Fire Station Bonds 2014A General Obligation Bonds 2016A General Obligation Bonds 2000 General Obligation Bond Reserve 2010C General Obligation Bonds 2010C General Obligation Bond Reserve Fund 2005A General Obligation Bonds Hoigaard’s 2010 A & B TIF Notes 2008B General Obligation Tax Increment Bonds 2017A General Obligation Bonds 2018A General Obligation Bonds 2019A General Obligation Bonds Page 136 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 136 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET DEBT SERVICE FUND December 31, 2018 2010D General Obligation Fire Station Bond 2014A General Obligation Bonds 2016A General Obligation Bonds 2000 General Obligation Bond Reserve Assets Cash and investments 963,519$ 602,803$ 1,160,547$ 121,105$ Accrued interest receivable 1,773 1,099 2,036 - Due from other governments 77,315 - - - Loans receivable - current - - - - Loans receivable - noncurrent - - - - Total assets 1,042,607$ 603,902$ 1,162,583$ 121,105$ Liabilities Deposits payable -$ -$ -$ -$ Unearned revenue 12,886 - - - Total liabilities 12,886 --- Deferred inflows of resources Unavailable revenue - - - - Fund balances Restricted 1,029,721 603,902 1,162,583 121,105 Total liabilities, deferred inflows of resources, and fund balances 1,042,607$ 603,902$ 1,162,583$ 121,105$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 137 Statement 21 2010C General Obligation Bond 2010C General Obligation Bond Reserve 2017A General Obligation Bonds 2018A General Obligation Bonds 2019A General Obligation Bonds Total 70,950$ 291,285$ 315,646$ 46,888$ 380,000$ 3,952,743$ - - 479 127 - 5,514 - - - - - 77,315 40,000 - - - - 40,000 1,480,000 - - - - 1,480,000 1,590,950$ 291,285$ 316,125$ 47,015$ 380,000$ 5,555,572$ -$ 284,594$ -$ -$ -$ 284,594$ - - - - - 12,886 -284,594 - - -297,480 1,520,000 - - - - 1,520,000 70,950 6,691 316,125 47,015 380,000 3,738,092 1,590,950$ 291,285$ 316,125$ 47,015$ 380,000$ 5,555,572$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 138 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 139 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING SCHEDULE OF REVENUES,Statement 22 EXPENDITURES AND CHANGES IN FUND BALANCES Page 1 of 2 DEBT SERVICE FUND For The Year Ended December 31, 2018 3 2010A General Obligation Bond 2012A General Obligation HIA Bonds 2014A General Obligation Bonds 2010D General Obligation Fire Station Bond Revenues Taxes Property taxes -$ -$ 590,730$ 925,211$ Intergovernmental - - - 154,754 Interest income - - 2,952 5,580 Miscellaneous - - - - Total revenues - - 593,682 1,085,545 Expenditures Social and economic development Developer assistance - - - - Debt service Principal 125,000 55,000 475,000 565,000 Interest and other 120,069 32,803 88,379 485,571 Total expenditures 245,069 87,803 563,379 1,050,571 Revenues over (under) expenditures (245,069) (87,803) 30,303 34,974 Other financing sources (uses) Transfers in 245,069 87,803 - - Transfers out - - - - Bonds issued - - - - Total other financing sources (uses)245,069 87,803 - - Net change in fund balances - - 30,303 34,974 Fund balances - January 1 - - 573,599 994,747 Fund balances - December 31 -$ -$ 603,902$ 1,029,721$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 140 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND For The Year Ended December 31, 2018 3 2016A General Obligation Bonds 2000 General Obligation Bond Reserve 2010C General Obligation Bond 2010C General Obligation Bond Reserve Revenues Taxes Property taxes 1,232,319$ -$ -$ -$ Intergovernmental - - - - Interest income 5,967 1,915 603 4,259 Miscellaneous - - 106,392 - Total revenues 1,238,286 1,915 106,995 4,259 Expenditures Social and economic development Developer assistance - - - - Debt service Principal 380,000 - 40,000 - Interest and other 208,202 - 78,855 - Total expenditures 588,202 - 118,855 - Revenues over (under) expenditures 650,084 1,915 (11,860) 4,259 Other financing sources (uses) Transfers in - - 1,915 - Transfers out - (1,915) - - Bonds issued - -- - Total other financing sources (uses)- (1,915) 1,915 - Net change in fund balances 650,084 - (9,945) 4,259 Fund balances - January 1 512,499 121,105 80,895 2,432 Fund balances - December 31 1,162,583$ 121,105$ 70,950$ 6,691$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 141 Statement 22 Page 2 of 2 Hoigaard's 2010 A & B TIF Notes 2008B General Obligation Tax Increment Bond 2017A General Obligation Bonds 2018A General Obligation Bonds 2019A General Obligation Bonds Interfund Eliminations Total -$ -$ 416,522$ -$ -$ -$ 3,164,782$ - - - - - - 154,754 - - 1,473 519 - - 23,268 - - - - - - 106,392 - - 417,995 519 - - 3,449,196 449,821 - - - - - 449,821 - 415,000 - - - - 2,055,000 - 142,087 101,870 102 - - 1,257,938 449,821 557,087 101,870 102 - - 3,762,759 (449,821) (557,087) 316,125 417 - - (313,563) 449,821 557,087 - - 380,000 (1,915) 1,719,780 - - - - - 1,915 - - - - 46,598 - - 46,598 449,821 557,087 - 46,598 380,000 - 1,766,378 - - 316,125 47,015 380,000 - 1,452,815 - - - - - - 2,285,277 -$ -$ 316,125$ 47,015$ 380,000$ -$ 3,738,092$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 142 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 143 FUNDS INCLUDED IN REDEVELOPMENT DISTRICT FUND Duke West End TIF Eliot Park TIF Ellipse TIF District HRA Levy Victoria Ponds Park Center Housing CSM TIF District Mill City TIF District Park Commons TIF District Edgewood TIF District Elmwood Village Wolfe Lake TIF District Aquila Commons Highway 7 Business Center Hard Coat TIF District Shoreham TIF District Excelsior Blvd TIF District Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 144 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET REDEVELOPMENT DISTRICT FUND December 31, 2018 Duke West End TIF Eliot Park TIF Ellipse TIF District HRA Levy Assets Cash and investments 1,571,644$ 234,907$ 133,645$ 107,762$ Accrued interest receivable 1,682 278 161 510 Taxes receivable - unremitted - - - 5,087 Taxes receivable - delinquent - - - 9,204 Interfund loan receivable - - - - Loans receivable - noncurrent - - - - Total assets 1,573,326$ 235,185$ 133,806$ 122,563$ Liabilities Accounts payable -$ -$ -$ -$ Due to other governments 3,282 1,104 1,273 - Interfund loan payable 478,371 - - 1,221,200 Total liabilities 481,653 1,104 1,273 1,221,200 Deferred inflows of resources Unavailable revenue - - - 9,204 Fund balances Restricted 1,091,673 234,081 132,533 - Unassigned - - - (1,107,841) Total fund balances 1,091,673 234,081 132,533 (1,107,841) Total liabilities, deferred inflows of resources, and fund balances 1,573,326$ 235,185$ 133,806$ 122,563$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 145 Statement 23 Page 1 of 2 Victoria Ponds Park Center Housing CSM TIF District Mill City TIF District Park Commons TIF District 294,697$ 215,250$ 712,274$ 442,069$ 1,240,914$ 752 718 1,487 671 1,246 - - 2,401 - 24,235 - - - - - 78,792 - - - - - 743,982 - - - 374,241$ 959,950$ 716,162$ 442,740$ 1,266,395$ -$ -$ -$ 5,780$ -$ 571 757 1,500 1,275 6,387 - - - - - 571 757 1,500 7,055 6,387 - 100,976 - - - 373,670 858,217 714,662 435,685 1,260,008 - - - - - 373,670 858,217 714,662 435,685 1,260,008 374,241$ 959,950$ 716,162$ 442,740$ 1,266,395$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 146 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET REDEVELOPMENT DISTRICT FUND December 31, 2018 Edgewood TIF District Elmwood Village Wolfe Lake TIF District Aquila Commons Assets Cash and investments 612$ 22,247$ 97,174$ 174,403$ Accrued interest receivable - 3,020 148 303 Taxes receivable - unremitted - 5,798 - - Taxes receivable - delinquent - -- - Interfund loan receivable - -- - Loans receivable - noncurrent - -- - Total assets 612$ 31,065$ 97,322$ 174,706$ Liabilities Accounts payable -$ -$ -$ -$ Due to other governments 612 5,104 708 1,139 Interfund loan payable - 2,899,448 - - Total liabilities 612 2,904,552 708 1,139 Deferred inflows of resources Unavailable revenue - - - - Fund balances Restricted - - 96,614 173,567 Unassigned - (2,873,487) - - Total fund balances - (2,873,487) 96,614 173,567 Total liabilities, deferred inflows of resources, and fund balances 612$ 31,065$ 97,322$ 174,706$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 147 Statement 23 Page 2 of 2 Highway 7 Business Center Hard Coat TIF District Shoreham TIF District Excelsior Blvd TIF District Interfund Eliminations Total 71,107$ 25,875$ 369,270$ -$ -$ 5,713,850$ 71 94 682 - - 11,823 - - - - - 37,521 - - - - - 9,204 - - - - (78,792) - - - - - - 743,982 71,178$ 25,969$ 369,952$ -$ (78,792)$ 6,516,380$ -$ -$ -$ -$ -$ 5,780$ 717 - 1,019 538 - 25,986 - 78,792 6,737 31,433 (78,792) 4,637,189 717 78,792 7,756 31,971 (78,792) 4,668,955 - - - - - 110,180 70,461 - 362,196 - - 5,803,367 - (52,823) - (31,971) - (4,066,122) 70,461 (52,823) 362,196 (31,971) - 1,737,245 71,178$ 25,969$ 369,952$ -$ (78,792)$ 6,516,380$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 148 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES REDEVELOPMENT DISTRICT FUND For The Year Ended December 31, 2018 Duke West End TIF Eliot Park TIF Ellipse TIF District HRA Levy Revenues Taxes Property taxes -$ -$ -$ 1,176,503$ Tax increments 2,500,563 445,675 586,830 - Interest income 4,531 617 47 2,036 Miscellaneous - - 48 - Total revenues 2,505,094 446,292 586,925 1,178,539 Expenditures Current Social and economic development 1,636,978 357,148 608,973 15,249 Debt service Interest and other 19,086 734 8,501 59,086 Total expenditures 1,656,064 357,882 617,474 74,335 Revenues over (under) expenditures 849,030 88,410 (30,549) 1,104,204 Other financing (uses) Transfers out (557,088) - - (108,942) Net change in fund balances 291,942 88,410 (30,549) 995,262 Fund balances - January 1 799,731 145,671 163,082 (2,103,103) Fund balances - December 31 1,091,673$ 234,081$ 132,533$ (1,107,841)$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 149 Statement 24 Page 1 of 2 Victoria Ponds Park Center Housing CSM TIF District Mill City TIF District Park Commons TIF District Edgewood TIF District -$ -$ -$ -$ -$ -$ - 175,139 524,194 588,476 2,633,103 59,435 7,903 3,491 6,978 2,456 2,624 - - - - - - - 7,903 178,630 531,172 590,932 2,635,727 59,435 901 5,439 462,663 541,208 2,580,570 58,557 - - - - - - 901 5,439 462,663 541,208 2,580,570 58,557 7,002 173,191 68,509 49,724 55,157 878 - (160,000) - - - - 7,002 13,191 68,509 49,724 55,157 878 366,668 845,026 646,153 385,961 1,204,851 (878) 373,670$ 858,217$ 714,662$ 435,685$ 1,260,008$ -$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 150 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES REDEVELOPMENT DISTRICT FUND For The Year Ended December 31, 2018 Elmwood Village Wolfe Lake TIF District Aquila Commons Revenues Taxes Property taxes -$ -$ -$ Tax increments 1,875,123 133,191 194,003 Interest income 18,642 510 1,009 Miscellaneous - - - Total revenues 1,893,765 133,701 195,012 Expenditures Current Social and economic development 308,078 123,367 131,300 Debt service Interest and other 111,517 - - Total expenditures 419,595 123,367 131,300 Revenues over (under) expenditures 1,474,170 10,334 63,712 Other financing (uses) Transfers out (2,982,009) - - Net change in fund balances (1,507,839) 10,334 63,712 Fund balances - January 1 (1,365,648) 86,280 109,855 Fund balances - December 31 (2,873,487)$ 96,614$ 173,567$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 151 Statement 24 Page 2 of 2 Highway 7 Business Center Hard Coat TIF District Shoreham TIF District Excelsior Blvd TIF District Total -$ -$ -$ -$ 1,176,503$ 140,843 23,444 386,056 - 10,266,075 99 513 2,262 - 53,718 - - - - 48 140,942 23,957 388,318 - 11,496,344 123,060 - 5,385 12,024 6,970,900 - 3,992 748 723 204,387 123,060 3,992 6,133 12,747 7,175,287 17,882 19,965 382,185 (12,747) 4,321,057 - - - - (3,808,039) 17,882 19,965 382,185 (12,747) 513,018 52,579 (72,788) (19,989) (19,224) 1,224,227 70,461$ (52,823)$ 362,196$ (31,971)$ 1,737,245$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 152 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 153 INTERNAL SERVICE FUNDS The City has three Internal Service Funds to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments on a cost reimbursement basis. The City’s internal service funds account for employee benefits including pensions and other postemployment benefits, uninsured loss and capital replacemet. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 154 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF NET POSITION Statement 25 INTERNAL SERVICE FUNDS December 31, 2018 Employee Benefits Uninsured Loss Capital Replacement Total Assets Current assets Cash and investments 830,541$ 561,785$ 968,653$ 2,360,979$ Accrued interest receivable 4,354 1,351 - 5,705 Accounts receivable - - 276 276 Prepaid items 393,360 75,746 18,585 487,691 Total current assets 1,228,255 638,882 987,514 2,854,651 Noncurrent assets Capital assets, at cost Land - - 818,094 818,094 Building and structures - - 9,451,756 9,451,756 Improvements other than buildings - - 1,812,425 1,812,425 Infrastructure - - 1,313,801 1,313,801 Machinery, furniture and equipment - - 8,144,700 8,144,700 Fleet - - 10,854,001 10,854,001 Construction in progress - - 766,601 766,601 Total capital assets, at cost - - 33,161,378 33,161,378 Less: accumulated depreciation - - (12,579,609) (12,579,609) Total noncurrent assets - - 20,581,769 20,581,769 Total assets 1,228,255 638,882 21,569,283 23,436,420 Deferred outflows of resources Related to pensions 13,734,236 - - 13,734,236 Related to OPEB 243,847 - - 243,847 Total deferred outflows of resources 13,978,083 - - 13,978,083 Liabilities Current liabilities Accounts payable 326,074 30,880 500,594 857,548 Accrued flex spending 26,213 - - 26,213 Due to other governments 779 - 67,934 68,713 Contracts payable - - 1,672 1,672 Compensated absences payable - current 2,498,575 - - 2,498,575 Capital lease payable - current - - 59,378 59,378 Total current liabilities 2,851,641 30,880 629,578 3,512,099 Noncurrent liabilities Compensated absences payable 1,597,029 - - 1,597,029 Capital lease payable - - 121,004 121,004 Other postemployment benefits payable 3,500,643 - - 3,500,643 Net pension liability 20,494,066 - - 20,494,066 Total noncurrent liabilities 25,591,738 - 121,004 25,712,742 Total liabilities 28,443,379 30,880 750,582 29,224,841 Deferred inflows of resources - pension related 18,532,148 - - 18,532,148 Net position Net investment in capital assets - - 20,401,387 20,401,387 Unrestricted (31,769,189) 608,002 417,314 (30,743,873) Total net position (31,769,189)$ 608,002$ 20,818,701$ (10,342,486)$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 155 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES AND Statement 26 CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For The Year Ended December 31, 2018 Employee Benefits Uninsured Loss Capital Replacement Total Operating revenues Charges for services 2,490,289$ -$ 1,387,288$ 3,877,577$ Other 241,146 65,377 7,322 313,845 Total operating revenues 2,731,435 65,377 1,394,610 4,191,422 Operating expenses Personal services 3,139,953 32,628 - 3,172,581 Supplies - - 627,040 627,040 Professional services 73,171 - 12,584 85,755 Insurance, deductibles and unisured losses - 192,701 - 192,701 Depreciation - - 1,694,015 1,694,015 Other 24,668 500 840,255 865,423 Total operating expenses 3,237,792 225,829 3,173,894 6,637,515 Operating income (loss)(506,357) (160,452) (1,779,284) (2,446,093) Nonoperating revenues (expenses) Interest income 34,530 7,378 2,091 43,999 Property taxes 200,000 - 1,767,700 1,967,700 Intergovernmental revenue 180,737 - 566,981 747,718 Gain on disposal of capital assets - - 71,394 71,394 Interest expense - - (8,300) (8,300) Total nonoperating revenues (expenses)415,267 7,378 2,399,866 2,822,511 Income (loss) before transfers (91,090) (153,074) 620,582 376,418 Transfers in 100,000 100,000 130,974 330,974 Change in net position 8,910 (53,074) 751,556 707,392 Net position - January 1 (31,778,099) 661,076 20,067,145 (11,049,878) Net position - December 31 (31,769,189)$ 608,002$ 20,818,701$ (10,342,486)$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 156 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS Statement 27 INTERNAL SERVICE FUNDS Page 1 of 2 For The Year Ended December 31, 2018 Employee Benefits Uninsured Loss Capital Replacement Total Cash flows from operating activities Receipts from interfund services provided 2,490,289$ -$ 1,389,205$ 3,879,494$ Other operating cash receipts 272,146 74,527 7,322 353,995 Payments to suppliers (266,653) (177,061) (1,597,739) (2,041,453) Payments to employees (3,282,819) (32,628) - (3,315,447) Net cash flows provided (used) by operating activities (787,037) (135,162) (201,212) (1,123,411) Cash flows from noncapital financing activities Transfers in 100,000 100,000 - 200,000 Property taxes 200,000 - 1,767,700 1,967,700 Intergovernmental receipts 180,737 - 566,981 747,718 Net cash flows provided (used) by noncapital financing activities 380,737 - 2,334,681 2,715,418 Cash flows from capital and related financing activities Transfers in - - 130,974 130,974 Acquisition of capital assets - - (2,350,079) (2,350,079) Proceeds from sale of capital assets - - 169,083 169,083 Principal paid on capital lease - - (60,076) (60,076) Interest paid on capital lease - - (8,300) (8,300) Net cash flows provided (used) by and related financing activities - - (2,118,398) (2,118,398) Cash flows from investing activities Interest received 35,245 7,333 4,240 46,818 Net increase in cash and cash equivalents (371,055) (127,829) 19,311 (479,573) Cash and cash equivalents - January 1 1,101,596 589,614 949,342 2,640,552 Cash and cash equivalents - December 31 730,541$ 461,785$ 968,653$ 2,160,979$ Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 157 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS Statement 27 INTERNAL SERVICE FUNDS Page 2 of 2 For The Year Ended December 31, 2018 Employee Benefits Uninsured Loss Capital Replacement Total Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss)(506,357)$ (160,452)$ (1,779,284)$ (2,446,093)$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities Depreciation - - 1,694,015 1,694,015 (Increase) decrease in assets/deferred outflows Accounts receivable 31,000 9,150 1,917 42,067 Prepaid items (393,360) (3,315) 10,681 (385,994) Deferred outflows of resources 3,040,840 - - 3,040,840 Increase (decrease) in liabilities/deferred inflows Accounts payable 223,767 19,455 (151,474) 91,748 Accrued flex spending 7,040 - - 7,040 Due to other governments 779 - 22,933 23,712 Compensated absences payable 200,312 - - 200,312 Other postemployment benefits 250,513 - - 250,513 Net pension liability (3,455,414) - - (3,455,414) Deferred inflows of resources (186,157) - - (186,157) Net cash provided (used) by operating activities (787,037)$ (135,162)$ (201,212)$ (1,123,411)$ Noncash capital and related financing activities Disposal of capital assets -$ -$ 874,970$ 874,970$ Capital assets acquired through financing - - 74,527 74,527 Capital assets acquired on account - - 270,939 270,939 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 158 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 159 III. STATISTICAL SECTION (UNAUDITED) Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 160 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2009 2010 2011 2012 Governmental activities Net investment in capital assets 89,252,994$ 94,326,512$ 99,835,484$ 95,020,700$ Restricted 20,075,976 21,692,426 17,695,996 18,941,172 Unrestricted 40,508,755 40,581,189 43,929,086 46,413,200 Total governmental activities net position 149,837,725$ 156,600,127$ 161,460,566$ 160,375,072$ Business-type activities Net investment in capital assets 23,977,469$ 21,717,923$ 22,347,266$ 22,906,086$ Unrestricted 6,903,776 8,433,915 8,524,086 9,829,024 Total business-type activities net position 30,881,245$ 30,151,838$ 30,871,352$ 32,735,110$ Total primary government Net investment in capital assets 113,230,463$ 116,044,435$ 122,182,750$ 117,926,786$ Restricted 20,075,976 21,692,426 17,695,996 18,941,172 Unrestricted 47,412,531 49,015,104 52,453,172 56,242,224 Total primary government 180,718,970$ 186,751,965$ 192,331,918$ 193,110,182$ Note: GASB 65 was implemented in 2013. Net position was restated for 2012 to reflect the expenses of bond issuance costs in the year of issuance. Net position for years prior to 2012 was not restated. GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated. Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 161 Table 1 2013 2014 2015 2016 2017 2018 96,480,493$ 94,891,625$ 96,286,131$ 96,458,787$ 103,279,857$ 107,090,668$ 13,560,965 10,971,995 10,608,709 10,658,889 11,439,977 13,200,855 45,688,600 49,971,778 31,667,135 31,751,796 26,888,688 23,914,099 155,730,058$ 155,835,398$ 138,561,975$ 138,869,472$ 141,608,522$ 144,205,622$ 19,127,309$ 22,818,382$ 22,753,326$ 23,030,284$ 25,716,982$ 25,992,377$ 11,540,303 4,783,696 4,620,302 5,849,650 4,979,057 6,163,907 30,667,612$ 27,602,078$ 27,373,628$ 28,879,934$ 30,696,039$ 32,156,284$ 115,607,802$ 117,710,007$ 119,039,457$ 119,489,071$ 128,996,839$ 133,083,045$ 13,560,965 10,971,995 10,608,709 10,658,889 11,439,977 13,200,855 57,228,903 54,755,474 36,287,437 37,601,446 31,867,745 30,078,006 186,397,670$ 183,437,476$ 165,935,603$ 167,749,406$ 172,304,561$ 176,361,906$ Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 162 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2009 2010 2011 2012 Expenses Governmental activities General government 8,167,355$ 7,192,652$ 7,247,716$ 7,387,354$ Public safety 12,138,185 12,256,272 12,535,793 13,264,220 Public works 6,915,541 19,446,758 7,513,833 - Public information 457,872 435,050 803,885 524,012 Culture and recreation 7,456,215 7,792,614 7,882,789 - Operations and recreation - - - 15,209,548 Engineering - - - 5,253,969 Housing and rehabilitation 1,544,175 4,150,595 794,935 3,914,261 Housing maintenance 128,099 241,345 79,786 116,949 Social and economic development 6,321,623 4,861,518 6,171,527 7,810,635 General services 7,662 - - - Interest on long-term debt 1,543,879 1,453,555 1,695,758 1,245,294 Total governmental activities expenses 44,680,606 57,830,359 44,726,022 54,726,242 Business-type activities Water 4,089,837 3,904,801 3,839,592 3,890,860 Sewer 4,228,680 4,193,191 4,572,869 4,593,166 Solid Waste - 2,116,949 2,319,099 2,562,985 Refuse 2,125,540 -- - Storm Water 1,287,202 1,325,803 1,373,546 1,485,390 Wireless 151,708 - - - Total business-type activities expenses 11,882,967 11,540,744 12,105,106 12,532,401 Total expenses 56,563,573$ 69,371,103$ 56,831,128$ 67,258,643$ Program revenues Governmental activities Charges for services General government 888,246$ 1,065,209$ 1,059,527$ 1,060,679$ Public safety 2,958,383 2,898,634 2,917,525 3,344,449 Public works 2,292,287 601,890 315,163 - Public information - - 200,000 - Culture and recreation 2,083,015 1,959,556 2,111,348 2,438,841 Operations and recreation - - - - Engineering - - - - Housing and rehabilitation 562,930 8,833 62,191 8,162 Housing maintenance - - - - Social and economic development 184,236 588,757 316,935 281,002 Interest on long-term debt 318,134 - - - Operating grants and contributions 2,664,563 1,735,926 2,065,312 2,360,465 Capital grants and contributions 2,131,755 14,908,522 1,878,697 6,290,076 Total governmental activities program revenue 14,083,549 23,767,327 10,926,698 15,783,674 Business-type activities Charges for services Water 4,294,962 4,148,394 4,475,068 5,109,446 Sewer 5,153,171 5,277,473 5,768,266 5,959,931 Solid Waste - 2,719,376 2,894,726 2,858,930 Refuse 2,458,555 -- - Storm Water 1,699,557 1,829,792 1,904,587 1,977,663 Wireless 16,140 - - - Operating grants and contributions 167,604 103,342 103,166 105,976 Capital grants and contributions - 2,890 - - Total business-type activities program revenue 13,789,989 14,081,267 15,145,813 16,011,946 Total program revenues 27,873,538$ 37,848,594$ 26,072,511$ 31,795,620$ Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 163 Table 2 Page 1 of 2 2013 2014 2015 2016 2017 2018 10,085,905$ 9,161,922$ 10,712,749$ 11,182,348$ 10,648,181$ 11,051,775$ 13,365,297 13,954,604 15,336,854 20,091,787 17,870,131 17,621,109 ------ 466,043 507,928 3,057,509 549,940 647,316 642,350 ------ 13,487,238 13,318,552 9,996,885 13,352,637 13,448,470 15,146,290 16,046,665 21,045,392 10,185,956 5,091,818 7,859,907 7,491,753 1,774,657 909,051 707,661 528,467 480,911 530,192 141,250 130,534 84,505 144,204 72,244 19,768 9,040,280 8,058,914 8,872,479 8,826,281 10,987,654 12,549,378 ------ 1,295,298 1,185,975 1,233,107 1,620,489 1,511,329 1,456,241 65,702,633 68,272,872 60,187,705 61,387,971 63,526,143 66,508,856 5,747,116 4,609,579 4,684,190 4,773,624 4,786,816 5,445,760 5,272,646 4,885,748 5,333,887 6,002,088 6,227,919 6,083,196 3,614,118 2,813,587 2,917,214 3,256,804 3,390,874 3,463,412 ----- 1,390,235 1,422,645 1,400,975 1,514,761 1,611,785 2,372,829 ------ 16,024,115 13,731,559 14,336,266 15,547,277 16,017,394 17,365,197 81,726,748$ 82,004,431$ 74,523,971$ 76,935,248$ 79,543,537$ 83,874,053$ 1,024,253$ 1,142,294$ 1,185,881$ 1,184,122$ 1,143,220$ 1,214,710$ 3,109,813 3,477,244 4,237,819 4,354,793 3,962,306 4,049,914 ------ --10,000 --- -----576 2,035,715 2,089,052 2,344,863 2,122,730 2,308,221 2,516,191 1,032 318,873 144,151 97,688 134,508 136,648 8,606 7,537 6,315 7,607 4,514 633,932 -241 ---- 250,015 224,252 256,557 259,910 255,109 213,944 ------ 2,709,644 2,024,171 3,586,440 2,512,011 3,670,054 2,666,090 11,881,109 12,066,132 3,178,294 3,960,739 5,205,879 3,526,377 21,020,187 21,349,796 14,950,320 14,499,600 16,683,811 14,958,382 5,037,067 5,188,065 5,766,601 5,674,239 6,089,295 6,469,268 5,822,085 5,841,377 6,112,024 6,663,731 7,261,014 7,360,679 2,912,415 3,179,732 3,189,566 2,905,899 3,237,506 3,348,948 ------ 2,054,915 2,246,201 2,472,134 2,642,860 2,816,349 2,887,425 ------ 135,642 127,742 128,610 181,525 159,376 174,250 ---799,894 279,801 429,928 15,962,124 16,583,117 17,668,935 18,868,148 19,843,341 20,670,498 36,982,311$ 37,932,913$ 32,619,255$ 33,367,748$ 36,527,152$ 35,628,880$ Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 164 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2009 2010 2011 2012 Net (expenses) revenues Governmental activities (30,597,057)$ (34,063,032)$ (33,799,324)$ (38,942,568)$ Business-type activities 1,907,022 2,540,523 3,040,707 3,479,545 Total primary government (28,690,035)$ (31,522,509)$ (30,758,617)$ (35,463,023)$ General Revenues and Other Changes in Net Position Governmental activities Taxes Property taxes 29,512,631$ 29,642,090$ 23,527,322$ 24,625,789$ Tax increment - - 7,222,976 6,446,389 Franchise taxes 1,503,075 1,497,178 1,894,714 1,954,557 Lodging taxes - - - - Grants and contributions not restricted to specific programs 153,108 151,624 156,325 46,422 Unrestricted investment earnings 1,452,176 629,094 1,048,395 663,978 Gain on sale of capital assets 91,149 34,453 51,686 60,416 Miscellaneous 11,229 950,231 2,300,478 2,183,685 Transfers 5,202,312 3,358,921 2,457,867 1,660,035 Total governmental activities expenses 37,925,680 36,263,591 38,659,763 37,641,271 Business-type activities Unrestricted investment earnings 201,825 88,991 136,674 113,260 Miscellaneous - - - - Transfers (5,202,312) (3,358,921) (2,457,867) (1,660,035) Total business-type activities expenses (5,000,487) (3,269,930) (2,321,193) (1,546,775) Total primary government 32,925,193$ 32,993,661$ 36,338,570$ 36,094,496$ Change in net position Governmental activities 7,328,623$ 2,200,559$ 4,860,439$ (1,301,297)$ Business-type activities (3,093,465) (729,407) 719,514 1,932,770 Total primary government 4,235,158$ 1,471,152$ 5,579,953$ 631,473$ Note: GASB 65 was implemented in 2013. Governmental and business-type activities expenses were restated for 2012 to reflect the expensing of bond issuance costs in the year of issuance. Expenses for years prior to 2012 were not restated. GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated. Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 165 Table 2 Page 2 of 2 2013 2014 2015 2016 2017 2018 (44,682,446)$ (46,923,076)$ (45,237,385)$ (46,888,371)$ (46,842,332)$ (51,550,474)$ (61,991) 2,851,558 3,332,669 3,320,871 3,825,947 3,305,301 (44,744,437)$ (44,071,518)$ (41,904,716)$ (43,567,500)$ (43,016,385)$ (48,245,173)$ 26,963,176$ 27,398,157$ 28,209,567$ 30,185,703$ 31,582,993$ 33,449,668$ 6,647,729 7,380,995 6,763,951 7,733,689 8,961,792 10,266,075 2,211,569 2,268,213 2,915,732 3,079,399 3,763,394 3,804,678 -----1,021,855 45,266 504,035 557,671 584,639 590,978 618,645 138,899 407,753 221,408 388,647 408,945 739,130 69,237 464,629 577,248 142,713 106,204 1,751,339 2,199,629 2,609,539 2,985,997 3,201,122 2,091,334 491,591 1,761,927 5,995,095 3,620,449 1,879,956 2,075,742 2,004,593 40,037,432 47,028,416 45,852,023 47,195,868 49,581,382 54,147,574 (3,348)78,003 59,330 65,391 65,900 159,537 ------ (1,761,927) (5,995,095) (3,620,449) (1,879,956) (2,075,742) (2,004,593) (1,765,275) (5,917,092) (3,561,119) (1,814,565) (2,009,842) (1,845,056) 38,272,157$ 41,111,324$ 42,290,904$ 45,381,303$ 47,571,540$ 52,302,518$ (4,645,014)$ 105,340$ 614,638$ 307,497$ 2,739,050$ 2,597,100$ (1,827,266) (3,065,534) (228,450) 1,506,306 1,816,105 1,460,245 (6,472,280)$ (2,960,194)$ 386,188$ 1,813,803$ 4,555,155$ 4,057,345$ Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 166 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 167 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 3 GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS Fiscal Property Franchise Year Tax Tax Total 2009 28,523,119$ 1,503,075$ 30,026,194$ 2010 29,316,753 1,497,178 30,813,931 2011 30,853,927 1,894,714 32,748,641 2012 31,220,365 1,954,557 33,174,922 2013 33,610,905 2,211,569 35,822,474 2014 34,779,152 2,268,213 37,047,365 2015 34,973,518 2,915,732 37,889,250 2016 37,919,392 3,079,399 40,998,791 2017 40,544,785 3,763,394 44,308,179 2018 43,715,743 3,804,678 47,520,421 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 168 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2009 2010 2011 2012 General fund Reserved 572,206$ -$ -$ -$ Unreserved 7,326,638 - - - Nonspendable - 80,664 71,192 70,450 Restricted - 425,967 427,718 458,448 Assigned - 124,503 139,483 690,242 Unassigned - 10,399,401 10,799,829 10,757,776 Total General fund 7,898,844$ 11,030,535$ 11,438,222$ 11,976,916$ All other governmental funds Reserved 7,540,696$ -$ -$ -$ Unreserved, reported in Special revenue funds 7,568,944 - - - Capital projects funds 40,680,331 - - - Nonspendable - 250,008 306,058 426,736 Restricted - 35,515,318 21,476,374 20,464,874 Committed - 466,792 511,610 459,160 Assigned - 33,253,313 34,425,344 35,947,479 Unassigned - (7,872,234) (5,042,828) (7,567,117) Total all other governmental funds 55,789,971$ 61,613,197$ 51,676,558$ 49,731,132$ Note: The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2010, resulting in significant reclassification of the components of fund balance. Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 169 Table 4 2013 2014 2015 2016 2017 2018 -$ -$ -$ -$ -$ -$ - - - - - - 256,251 397,873 566,574 330,483 292,821 258,932 498,922 492,223 464,469 413,787 392,004 272,840 691,171 696,293 758,084 936,663 1,050,569 1,025,207 14,342,422 14,576,348 15,242,009 16,193,763 17,054,520 17,697,405 15,788,766$ 16,162,737$ 17,031,136$ 17,874,696$ 18,789,914$ 19,254,384$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - 23,563 6,500 19,700 15,102,011 12,663,957 12,457,701 10,057,843 11,725,590 12,196,553 467,682 483,590 481,009 466,287 696,235 1,064,284 33,481,454 38,701,128 39,567,878 41,068,221 33,609,392 33,843,896 (7,020,483) (8,819,377) (6,551,326) (5,187,339) (3,628,247) (7,382,436) 42,030,664$ 43,029,298$ 45,955,262$ 46,428,575$ 42,409,470$ 39,741,997$ Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 170 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2009 2010 2011 2012 Revenues Taxes 21,700,329$ 22,667,190$ 23,336,537$ 24,259,861$ Tax increments 7,846,204 6,649,563 7,222,976 6,446,389 Lodging tax - - - - Franchise taxes 1,503,075 1,497,178 1,894,714 1,954,557 Licenses and permits 2,786,032 2,359,716 2,797,700 3,241,813 Intergovernmental 3,867,795 11,879,601 3,105,500 2,983,191 Charges for services 4,228,179 4,051,971 3,897,710 3,547,900 Fines and forfeits 332,694 401,610 281,047 341,356 Special assessments 800,054 1,550,110 985,912 2,233,715 Investment earnings 1,358,170 612,098 949,510 622,450 Miscellaneous 2,615,062 3,050,231 2,285,608 2,188,262 Total revenues 47,037,594 54,719,268 46,757,214 47,819,494 Expenditures General government 6,472,022 6,219,751 6,415,318 6,503,965 Public safety 11,949,612 11,771,246 11,885,577 12,571,356 Public works 4,637,289 15,624,494 4,437,939 - Operations and recreation - - - 13,955,142 Engineering - - - 939,416 Public information 445,146 387,459 383,586 470,280 Culture and recreation 6,027,059 6,234,938 6,546,054 - Housing and rehabilitation 1,550,264 4,144,378 790,918 3,881,500 Housing maintenance 128,099 241,170 79,786 116,949 Social and economic development 6,241,123 4,720,638 6,426,013 7,681,176 General services 7,662 - - - Debt service Principal 4,709,000 2,170,000 5,420,000 1,285,000 Interest 1,322,477 1,170,286 1,170,549 1,235,118 Other charges - 453,288 1,040 46,435 Bond issuance costs - -- - Capital outlay 10,314,002 6,306,083 14,295,009 3,930,528 Total expenditures 53,803,755 59,443,731 57,851,789 52,616,865 Revenues over (under) expenditures (6,766,161)(4,724,463) (11,094,575) (4,797,371) Other financing sources (uses) Transfers in 9,939,299 11,809,353 7,086,529 6,395,355 Transfers out (10,579,081) (14,974,391) (5,520,906) (5,580,044) Refunding bonds issued - 3,615,000 - 1,290,000 Bonds issued 2,000,000 20,560,000 - - Proceeds from long term debt - - - - Premium on bonds issued 10,202 2,792 - - Redemption of refunded bonds - (1,825,000) - - Payments to refunded bond escrow agent (6,244,425) (4,164,000) - - Costs paid to refunded bond escrow agent - - - - Proceeds from sale of capital assets - 27,412 - 885,328 Total other financing sources (uses)(4,874,005) 15,051,166 1,565,623 2,990,639 Net change in fund balances (11,640,166)$ 10,326,703$ (9,528,952)$ (1,806,732)$ Debt service as a percentage of noncapital expenditures 13.84%6.29%15.26%5.18% Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 171 Table 5 2013 2014 2015 2016 2017 2018 25,658,762$ 24,361,524$ 26,598,373$ 27,734,546$ 28,941,646$ 31,853,551$ 6,647,729 7,380,995 6,763,951 7,733,689 8,961,792 10,266,075 - - - - - 1,021,855 2,211,569 2,268,213 2,915,732 3,079,399 3,763,394 3,804,678 3,069,090 3,413,683 4,312,702 4,320,078 3,985,517 4,001,645 13,887,247 13,216,055 6,017,025 4,345,482 8,228,158 5,240,175 3,052,789 3,476,264 3,608,933 3,406,964 3,529,125 3,708,327 311,882 369,546 263,951 299,808 293,236 282,146 1,505,568 1,268,539 1,238,873 1,192,628 1,169,859 1,150,577 123,306 386,263 199,747 362,196 369,203 677,131 2,216,820 2,577,300 3,051,946 3,230,390 2,218,712 1,529,337 58,684,762 58,718,382 54,971,233 55,705,180 61,460,642 63,535,497 7,162,588 7,376,380 7,813,046 8,188,193 8,142,675 9,075,636 12,435,341 13,239,729 14,025,463 14,669,251 15,824,577 17,050,302 - - - - - - 10,083,541 10,450,789 9,710,604 9,688,872 10,665,329 11,031,544 15,998,842 21,013,383 10,068,447 480,162 7,754,421 4,449,897 408,683 462,341 561,252 477,721 495,256 567,653 - - - - - - 1,715,540 875,225 538,411 482,313 453,940 512,029 141,250 130,534 84,505 144,204 57,370 12,040 8,910,821 7,928,905 8,872,479 8,673,638 10,857,645 10,479,359 - - - - - - 3,275,000 1,970,000 1,612,827 1,681,876 3,650,297 2,055,000 1,298,016 1,138,100 1,210,971 1,446,371 1,493,780 1,462,325 3,895 54,433 2,640 2,717 - - - - - 111,922 40,419 33,060 2,089,798 2,271,988 3,486,864 19,894,828 10,159,659 14,388,878 63,523,315 66,911,807 57,987,509 65,942,068 69,595,368 71,117,723 (4,838,553)(8,193,425)(3,016,276)(10,236,888)(8,134,726)(7,582,226) 10,472,534 19,317,129 13,296,241 8,148,651 5,586,488 7,282,081 (9,531,189) (15,241,005) (9,462,850) (6,994,545) (4,182,613) (5,608,462) - - - - - - - 5,070,000 - 10,000,000 3,430,000 2,020,000 - -2,200,000 - - - - 98,040 - 396,655 196,964 5,659 - - - -- - - - - -- - - - - -- - 8,590 321,866 777,248 3,000 - 1,679,945 949,935 9,566,030 6,810,639 11,553,761 5,030,839 5,379,223 (3,888,618)$ 1,372,605$ 3,794,363$ 1,316,873$ (3,103,887)$ (2,203,003)$ 7.44%4.81%5.18%6.02%8.61%5.6% Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 172 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) ASSESSED VALUE/TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS 2009 2010 2011 2012 Population 47,221 45,250 44,665 45,505 Real Property Total assessed/tax capacity value 69,704,858$ 68,386,268$ 65,611,006$ 62,602,680$ Less tax increment districts -(8,276,993) (6,976,791) (6,379,980) (5,426,995) Area-wide allocation (net)(1,635,724) (1,231,482) (2,775,483) (3,220,881) Net assessed/tax capacity value 59,792,141$ 60,177,995$ 56,455,543$ 53,954,804$ Estimated market value 5,633,028,200$ 5,550,563,700$ 5,302,557,500$ 5,226,900,300$ Personal Property Assessed/tax capacity value 434,825$ 428,760$ 478,864$ 490,122$ Estimated market value 22,006,100$ 21,712,100$ 24,363,800$ 24,962,100$ Total Real and Personal Property Assessed/tax capacity value 60,226,966$ 60,606,755$ 56,934,407$ 54,444,926$ Estimated market value 5,655,034,300$ 5,572,275,800$ 5,326,921,300$ 5,251,862,400$ Tax Capacity Rate 36.7% 37.1% 41.5% 43.9% Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 173 Table 6 2013 2014 2015 2016 2017 2018 46,362 47,411 47,502 48,354 48,747 49,039 61,348,576$ 62,068,742$ 65,599,841$ 71,118,692$ 77,324,247$ 81,272,437$ (5,587,609) (6,130,653) (5,894,025) (6,798,025) (8,211,886) (8,746,231) (2,940,678) (3,670,487) (3,879,478) (3,168,815) (4,255,021) (4,787,086) 52,820,289$ 52,267,602$ 55,826,338$ 61,151,852$ 64,857,340$ 67,739,120$ 5,103,186,900$ 5,123,316,900$ 5,435,136,500$ 5,841,548,800$ 6,306,324,900$ 6,637,473,500$ 559,718$ 576,427$ 607,025$ 614,793$ 650,504$ 710,227$ 28,487,900$ 29,320,000$ 30,852,400$ 31,212,200$ 33,056,300$ 36,048,400$ 53,380,007$ 52,844,029$ 56,433,363$ 61,766,645$ 65,507,844$ 68,469,347$ 5,131,674,800$ 5,152,636,900$ 5,465,988,900$ 5,872,761,000$ 6,339,381,200$ 6,673,521,900$ 46.6%48.6%47.8%46.2%46.2%46.4% Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 174 STATISTICAL SECTION (UNAUDITED) 2009 2010 2011 2012 Operating Rate 34.402 34.869 39.689 40.303 Debt Service Rate 2.265 2.247 1.770 3.563 Total City Direct Rates 36.667 37.116 41.459 43.866 County Operating Rate 40.413 42.640 45.840 48.231 School District Operating Rate 9.080 9.295 12.917 13.324 Debt Service Rate 11.257 11.803 13.539 15.946 Other Taxing Districts St. Louis Park HRA Levy 1.759 1.718 1.817 1.806 Metro Mosquito Control 0.489 0.461 0.525 0.537 Metro Council 0.817 0.793 0.885 0.940 Metro Transit Debt 1.273 1.366 1.539 1.607 Hennepin County HRA - 0.241 0.397 0.403 Hennepin Parks 3.334 3.499 3.765 3.943 Park Museum 0.771 0.778 0.815 0.799 HC Regional Railroad Authority 0.470 1.000 1.246 1.294 Referendum Market Value Based Rate - 0.152 0.148 - Watershed 1.489 1.511 1.606 1.705 Total Overlapping Rates 71.152 75.257 85.039 90.535 Total Direct and Overlapping Rates 107.819 112.373 126.498 134.401 City of St. Louis Park Overlapping Rates CITY OF ST. LOUIS PARK, MINNESOTA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 175 Table 7 2013 2014 2015 2016 2017 2018 42.902 45.868 45.234 43.744 42.933 41.759 3.650 2.702 2.520 2.451 3.267 4.624 46.552 48.570 47.754 46.195 46.200 46.383 49.461 49.959 46.398 45.356 44.087 42.808 13.976 16.741 15.642 14.887 12.364 14.506 15.754 15.617 14.698 13.627 13.247 14.529 1.676 1.808 1.679 1.634 1.661 1.718 0.556 0.563 0.507 0.483 0.475 0.456 0.997 1.069 0.976 0.925 0.883 0.844 1.689 1.703 1.523 1.491 1.463 1.383 0.478 0.514 0.471 0.439 0.497 0.457 4.054 4.169 3.789 3.601 3.365 3.161 0.754 0.766 0.702 0.712 0.711 0.710 1.561 1.777 1.817 1.879 1.925 1.962 - - - - - - 1.769 1.806 1.738 1.724 1.738 1.694 92.725 96.492 89.940 86.758 82.416 84.228 139.277 145.062 137.694 132.953 128.616 130.611 Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 176 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 8 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Rank Value Value Rank Value ARC WEMPSMN001, LLC 111,533,000$ 1 1.67 % 72,900,000$ 1 1.29 % Interchange Investors 96,800,000 2 1.45 Excelsior & Grand Apartments, LLC 88,665,000 3 1.33 BRI 1880 Towers At West End, LLC 82,478,000 4 1.24 Gatewood Knoowood, LLC 81,181,600 5 1.22 Middleton Park Place Investors, LLC 62,683,000 6 0.94 West End Office MN, LLC 62,211,000 7 0.93 PNMC Holdings 59,950,700 8 0.90 MFREVF III - Ellipse, LLC 51,397,000 9 0.77 WTC No 459 Corp 45,650,000 10 0.68 Thompson Reuters Property Tax Service 57,000,000 2 1.01 AEW VIF II Acquisition LLC 49,420,000 3 0.87 Parkdale Property LLC 39,273,000 4 0.69 Park Nicollet 38,500,300 5 0.68 Park Glen 26,390,000 6 0.47 Target 18,325,000 7 0.32 General Growth/Knollwood Co.18,250,000 8 0.32 Park Shore Senior Campus, LLC 23,805,000 9 0.42 Xcel Energy 14,489,900 10 0.26 Total 742,549,300$ 11.13 % 358,353,200$ 6.33 % Total taxable assessed value 6,673,521,900$ 5,655,034,300$ Source: Hennepin County Assessor's Office Taxpayer 2018 2009 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 177 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 9 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Total Tax Ended Levy for Percentage Percentage December 31 Fiscal Year Amount of Levy Amount of Levy 2009 22,204,522$ 21,796,296$ 98.16 % 22,204,522$ 100.00 % 2010 22,841,195 22,465,478 98.36 22,841,195 100.00 2011 23,724,816 23,368,028 98.50 23,724,816 100.00 2012 24,746,325 24,435,571 98.74 24,690,024 99.77 2013 25,613,874 25,379,070 99.08 25,611,682 99.99 2014 26,527,267 26,129,048 98.50 26,515,779 99.96 2015 27,938,615 27,590,682 98.75 27,899,442 99.86 2016 29,615,682 29,462,804 99.48 29,438,804 99.40 2017 31,350,534 30,559,213 97.48 30,719,890 97.99 2018 32,921,154 32,737,859 99.44 32,737,859 99.44 Collected Within the Fiscal Year of the Levy Total Collections to Date Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 178 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 10 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Business Type Activities General Net Unamortized Total Percentage Fiscal Obligation Tax Increment Capital Notes Revenue Premiums/ Primary of Personal Per Year Bonds Bonds Leases Payable Bonds (Discounts) Government Income (1) Capita (1) 2009 9,590,000$ 8,405,000$ -$ -$ 9,185,000$ 43,692$ 27,223,692$ 1.55 576.52 2010 26,335,000 7,410,000 - - 11,334,924 41,847 45,121,771 2.72 997.17 2011 21,420,000 6,905,000 26,220 - 10,555,000 (136,030) 38,770,190 2.31 868.02 2012 21,730,000 6,600,000 - - 9,600,000 (141,310) 37,788,690 2.17 830.43 2013 20,185,000 4,870,000 - - 12,785,000 (93,362) 37,746,638 2.06 814.17 2014 23,609,091 4,520,700 33,075 - 16,826,503 101,294 45,090,663 2.39 951.06 2015 22,445,000 4,175,000 24,975 2,122,173 13,510,000 78,070 42,355,218 2.26 891.65 2016 31,230,000 3,805,000 215,619 2,025,297 10,515,000 439,637 48,230,553 2.46 997.45 2017 33,430,000 3,410,000 165,931 - 14,070,000 873,267 51,949,198 2.53 1,065.69 2018 33,810,000 2,995,000 180,382 - 19,475,000 1,122,736 57,583,118 2.67 1,174.23 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See the Schedule of Demographic Statistics on page 171 for personal income and population data. Governmental Activities Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 179 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 11 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Percentage of Less: Amounts Estimated General Restricted Net Unamortized Actual Taxable Fiscal Obligation for Debt Premiums/Value of Per Year Bonds Service Funds (Discounts)Total Property (1) Capita (2) 2009 9,590,000$ (2,198,070)$ 12,514$ 7,404,444$ 0.13 156.80 2010 26,335,000 (2,765,611) (114,863) 23,454,526 0.42 518.33 2011 21,420,000 (2,792,922) (111,310) 18,515,768 0.35 414.55 2012 21,730,000 (3,862,611) (123,684) 17,743,705 0.34 389.93 2013 20,185,000 (3,703,071) (119,339) 16,362,590 0.32 352.93 2014 23,609,091 (3,152,137) (16,954) 20,440,000 0.40 431.12 2015 22,445,000 (3,092,198) (20,758) 19,332,044 0.35 406.97 2016 31,230,000 (3,146,018) 355,124 28,439,106 0.48 588.14 2017 33,430,000 (3,325,205) 503,370 30,608,165 0.48 627.90 2018 33,810,000 (4,727,310) 445,293 29,527,983 0.44 602.13 (1) See the Schedule of Assessed Value/Tax Capacity Value and Estimated Market Value on page 158 for property value data. (2) Population data can be found in the Schedule of Demographic Statistics on page 171. Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 180 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 181 Table 12CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2018 Share of Debt Percentage Overlapping Outstanding (1) Applicable (2) Debt Overlapping Debt Hennepin County 1,056,890,798$ 4.06 % 42,909,766$ St. Louis Park Independent School District 120,593,922 99.43 119,906,537 Hopkins Independent School District 178,684,351 3.22 5,753,636 Edina Independent School District 173,510,411 0.06 104,106 Hennepin County Suburban Park District 43,575,708 5.67 2,470,743 Hennepin Regional RR Authority 24,600,380 5.67 1,394,842 Metropolitan Council 75,902,689 1.93 1,464,922 Subtotal of Overlapping Debt 1,673,758,259 174,004,552 Direct Debt City of St. Louis Park 37,430,675 100 37,430,675 Total of Direct and Overlapping Debt 1,711,188,934$ 211,435,227$ Source: Hennepin County, Minnesota Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of St. Louis Park. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of St. Louis Park. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. (1) Net debt which excludes revenue and special assessment bonds. (2) The percentage applicable to the City of St. Louis Park was determined by dividing the portion of tax capacity within the City by the total tax capacity of the of the taxing jurisdiction. Governmental Unit Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 182 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2009 2010 2011 2012 Debt Limit 169,651,029$ 167,168,274$ 159,807,639$ 157,555,872$ Total Net Debt Applicable to Limit 2,880,000 15,535,000 15,150,000 14,755,000 Legal Debt Margin 166,771,029$ 151,633,274$ 144,657,639$ 142,800,872$ Total Net Debt Applicable to the Limit as a percentage of Debt Limit 1.70%9.29%9.48%9.36% Legal Debt Margin Calculation for Fiscal Year Estimated Taxable Market Value 5,655,034,300$ 5,572,275,800$ 5,326,921,300$ 5,251,862,400$ Debt Limit (3% of taxable market value)169,651,029$ 167,168,274$ 159,807,639$ 157,555,872$ Debt applicable to limit Total Bonded Debt 27,180,000$ 45,079,924$ 38,880,000$ 37,930,000$ Less: G.O. Revenue Bonds (9,185,000) (11,334,924) (10,555,000) (9,600,000) G.O. Improvement Bonds (6,710,000) (10,800,000) (6,270,000) (6,975,000) G.O. Tax Increment Bonds (8,405,000) (7,410,000) (6,905,000) (6,600,000) Notes payable - - - - Total Net Debt Applicable to Limit:2,880,000 15,535,000 15,150,000 14,755,000 Legal Debt Margin:166,771,029$ 151,633,274$ 144,657,639$ 142,800,872$ Note: Under State of Minnesota law, the City of St. Louis Park's outstanding general obligation debt should not exceed 3 percent of the market value of the taxable property. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 183 Table 13 2013 2014 2015 2016 2017 2018 153,950,244$ 154,579,107$ 163,979,667$ 176,182,830$ 190,181,436$ 200,205,657$ 13,726,638 18,053,460 17,063,045 23,934,703 28,375,000 28,975,000 140,223,606$ 136,525,647$ 146,916,622$ 152,248,127$ 161,806,436$ 171,230,657$ 8.92%11.68%10.41%13.59%14.92%14.47% 5,131,674,800$ 5,152,636,900$ 5,465,988,900$ 5,872,761,000$ 6,339,381,200$ 6,673,521,900$ 153,950,244$ 154,579,107$ 163,979,667$ 176,182,830$ 190,181,436$ 200,205,657$ 37,746,638$ 45,090,663$ 42,355,218$ 45,550,000$ 50,910,000$ 56,280,000$ (12,785,000) (16,826,503) (13,510,000) (10,515,000) (14,070,000) (19,475,000) (6,365,000) (5,690,000) (5,485,000) (5,270,000) (5,055,000) (4,835,000) (4,870,000) (4,520,700) (4,175,000) (3,805,000) (3,410,000) (2,995,000) - - (2,122,173) (2,025,297) - - 13,726,638 18,053,460 17,063,045 23,934,703 28,375,000 28,975,000 140,223,606$ 136,525,647$ 146,916,622$ 152,248,127$ 161,806,436$ 171,230,657$ Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 184 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 14 PLEDGED REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Less:Net Fiscal Gross Operating Revenue Year Revenue 2 Expenses 3 Available Principal Interest Coverage 2009 5,985,714$ (4,982,093)$ 1,003,621$ 385,000$ 374,208$ 1.32 2010 5,981,074 (3,851,018) 2,130,056 400,000 327,325 2.93 2011 12,186,180 (8,269,813) 3,916,367 525,000 363,435 4.41 2012 13,079,123 (8,387,329) 4,691,794 1,405,000 375,218 2.64 2013 12,659,936 (10,417,099) 2,242,837 985,000 324,393 1.71 2014 13,277,524 (10,514,981) 2,762,543 1,015,000 352,614 2.02 2015 14,379,975 (9,041,931) 5,338,044 1,045,000 4 381,359 3.74 2016 15,481,494 (10,328,560) 5,152,934 1,155,000 5 301,051 3.54 2017 16,495,157 (10,186,997) 6,308,160 1,360,000 6 197,658 4.05 2018 16,851,218 (11,354,272) 5,496,946 1,375,000 320,608 3.24 Note: Details regarding the government's outstanding debt can be found in the notes to the financial statements. 1 Includes Water Utility, Sewer Utility and Storm Water Utility revenue bonds. 2 Gross revenue includes investment income and excludes intergovermental and miscellaneous revenues. 3 Expenses exclude depreciation, interest on bonds and miscellaneous expenses. 4 Excludes $2,145,000 refunded principal paid through cash with fiscal agent. 5 Excludes $1,840,000 refunded principal paid through cash with fiscal agent. 6 Excludes $1,555,000 refunded principal paid through issuance of 2017A bonds. Debt Service Revenue Bonds1 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 185 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Personal Income (amounts expressed Per Capita Median School Unemployment Year Population (1) in thousands) Income (1) Age (1) Enrollment (2) Rate (3) 2009 47,221 1,761,674$ 37,307$ 35.7 4,447 5.9 2010 45,250 1,660,539 36,697 35.5 4,347 3.9 2011 44,665 1,680,297 37,620 35.4 4,365 4.4 2012 45,505 1,744,525 38,337 35.4 4,472 4.6 2013 46,362 1,828,193 39,433 35.4 4,545 4.4 2014 47,411 1,884,398 39,746 35.4 4,590 2.6 2015 47,502 1,876,424 39,502 35.5 4,590 2.3 2016 48,354 1,962,641 40,589 35.2 4,627 2.9 2017 48,747 2,053,370 42,123 35.7 4,571 2.1 2018 49,039 2,157,275 43,991 35.7 4,560 2.2 Source: (1) Federal Census Bureau data (2) St. Louis Park School District (3) Minnesota Department of Employment and Economic Development Table 15 Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 186 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 187 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 16 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employees (1) Rank Employees (1) Rank Park Nicollet Health Services and Methodist Hospital 6,708 1 16.2 % 6,022 1 15.1 % Wells Fargo Mortgage 1,450 2 3.5 St. Louis Park Public Schools (I.S.D. No. 283)860 3 2.1 682 2 1.7 Japs-Olson Company 645 4 1.6 507 8 1.3 Healthland 564 5 1.4 Shalom Houme SLP 497 6 1.2 MoneyGram International 442 7 1.1 535 7 1.3 Center for Diagnostic Imaging 400 8 1.0 HealthPartners 400 9 1.0 Southwest Research Institute 326 10 0.8 Knollwood Mall 600 3 1.5 Target 595 4 1.5 Sholom Home West 589 5 1.5 Allied Interstate 577 6 1.4 Byerly's 350 9 0.9 Miracle Mile Shopping Center 350 10 0.9 Total 12,292 29.90 % 10,807 27.10 % Total City employment (2)41,438 39,809 Source: (1) St. Louis Park Community Development Department (2) Metropolitan Council Community Profiles Data of Total City of Total City Employer Employment Employment Percentage Percentage 2018 2009 Fiscal Year Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 188 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2009 2010 2011 2012 Function General government 114.5 105.5 95.4 90.3 Public safety Police Officers 51.0 51.0 51.0 52.0 Civilians 17.0 20.0 23.0 30.0 Fire Firefighters and officers 25.0 25.0 24.0 24.0 Operations and recreation and Engineering 32.0 32.0 32.0 33.0 Water 11.4 9.9 11.2 11.2 Sewer 2.7 3.6 4.9 4.9 Solid Waste 1.8 1.8 3.3 3.3 Storm Water 2.6 3.3 4.9 4.8 Total Employees 258.0 252.0 249.7 253.5 Source: St. Louis Park Human Resources Department Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 189 Table 17 2013 2014 2015 2016 2017 2018 88.8 88.4 89.4 91.6 97.9 91.8 52.0 53.0 55.0 55.0 57.0 57.0 34.0 35.0 35.0 35.0 35.0 35.0 24.0 24.0 25.0 26.0 28.0 28.0 35.0 34.0 35.0 35.0 28.1 35.0 10.9 11.2 11.5 11.4 12.5 14.6 4.9 5.5 6.0 6.0 6.4 5.1 3.3 4.7 5.8 5.8 5.3 4.9 4.8 6.2 6.7 6.7 7.1 6.2 257.7 262.0 269.4 272.5 277.3 277.6 Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 190 Table 18 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Police Medical calls 3,110 3,188 3,101 3,152 3,296 2,391 3,756 3,623 3,705 4,375 Traffic stops 2,462 4,236 5,362 7,146 6,674 6,907 6,692 6,939 7,401 6,267 Other 22,562 21,355 21,742 24,354 25,014 27,752 29,299 31,462 31,052 31,882 Fire Inspections/Medical/All other calls 4,429 3,893 3,078 3,117 3,360 4,747 5,118 6,130 5,513 6,308 Fire calls - residential/structural 96 107 153 142 66 116 135 53 202 297 Fire calls - other 68 37 53 64 48 91 115 41 85 68 Cable TV Hours of new programming 250 456 535 - 549.5 311 400 400 368 362 Inspections Permits 8,895 8,397 9,220 9,091 10,254 11,111 9,684 10,099 11,246 10,106 Inspections 27,332 20,204 22,818 23,667 26,902 32,543 23,031 23,372 28,484 25,187 Culture and recreation Aquatic park attendance 67,617 69,825 67,422 70,270 52,557 51,894 68,355 72,439 65,665 71,977 Hours of ice time 6,354 6,493 4,687 5,444 4,701 4,773 4,626 4,125 6,000 6,400 Water Gallons of water production (billions)2.4 2.1 2.1 2.4 2.2 2.09 2.01 1.78 1.79 1.91 Average watermain breaks per year 30 30 30 30 27 40 41 20 11 38 Public Works Snowplowing hours 2,454 3,216 2,543 1,173 6,449 3,752 2,284 3,781 2,859 5,466 Source: St. Louis Park Departments Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 191 Table 19CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function Public safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 26 26 26 28 26 25 28 28 29 29 Fire Stations 2 2 2 2 2 2 2 2 2 2 Vehicles 13 13 13 14 13 13 10 14 15 15 Fire hydrants 1,699 1,699 1,699 1,699 1,699 1,699 1,699 1,772 1,773 1,774 Culture and recreation Parks 53 53 57 57 57 57 52 53 53 53 Trails 10 10 10 10 10 10 10 22 22 22 Streets Lane miles of streets 310 311 311 311 311 311 311 311 311 314 Miles of streets 155 155 155 155 155 155 155 155 155 157 Water Wells 11 11 11 11 11 11 10 10 10 10 Water treatment plants 6 6 6 6 6 6 6 6 6 6 Miles of watermain 148 149 160 160 160 160 160 175 175 175 Sanitary Sewer Lift stations 23 23 23 23 23 23 23 23 23 23 Miles of sewermain 138 139 147 147 147 147 147 143 143 143 Storm Sewer Lift stations 10 10 10 10 10 10 10 10 11 11 Ponds and lakes 26 52 52 52 52 52 52 52 52 52 Catch basins 3,154 3,731 3,731 3,731 3,731 3,731 3,731 3,885 3,885 3,940 Source: St. Louis Park Departments Fiscal Year Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 192 - This page intentionally left blank - Special study session meeting of June 17, 2019 (Item No. 1) Title: CAFR for year ended December 31, 2018 - auditors discussion and review Page 193 Meeting: Special study session Meeting date: June 17, 2019 Discussion item: 2 Executive summary Title: 2020 budget Recommended action: No formal action required. This item is intended to be a check-in/follow- up to the May 13 budget discussion. Policy consideration: •Based on the May 13 budget discussion, can staff still assume the council is willing to consider setting a preliminary property tax levy increase in the range of 4 to 6 percent due to various factors anticipated to impact the city’s budget in 2020? (These factors relate to staffing costs associated with program support items noted in this report, growth in the demand for services, and debt service, among other items) •Does the 2020 budget process and timeline and direction meet council expectations? •Is there other information that council would like to review during the upcoming process including any other service delivery change considerations? Summary: Staff is actively working on preparing budget recommendations for 2020. As listed above, staff would like the council to reaffirm the levy considerations and any major changes, programs, or policy considerations that should be deliberated as part of preparing the 2020 budget. Financial or budget considerations: Details regarding financials are provided in this report. Strategic priority consideration: All areas of the adopted strategic priorities are impacted by the city’s budget. Supporting documents: Discussion Prepared by: Tim Simon, Chief Financial Officer Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Special study session meeting of June 17, 2019 (Item No. 2) Page 2 Title: 2020 budget Discussion Background: The purpose of the discussion is to make sure staff and council have a plan in place based on our budget discussion on May 13, 2019 and the “systems thinking” approach. Staff is planning to continue to use the newly adopted strategic priorities as well as vision and the key organizational cultural behaviors of collaboration, quality and responsiveness when developing the budget. This study session discussion is intended to be at the higher level and, based on the direction provided, will allow staff to then prepare more detailed budgetary information for council which will assist in setting property tax levies, fees and utility rates for 2020. 2020 budget preparation: City staff is currently preparing the operating and capital budgets for 2020 and beyond. In upcoming sessions, the city council will be provided with more detail on budget recommendations, with time allowed for review of materials and questions. Directors or their designees will also be present for questions or sharing information as needed or requested. All budgets, capital improvement plan (CIP), long range financial management plan (LRFMP), debt model, fee schedules, utility rates and relevant information will be included in future materials. Budget Communication: Staff plans to repeat many of the same outreach steps that were taken for the 2019 budget, including; •Park Perspective, the city’s quarterly newsletter, will include a variety of articles about the 2020 budget. An example from the February 2019 Park Perspective is at https://www.stlouispark.org/home/showdocument?id=13054 •Various social media posts (Facebook, Twitter, Nextdoor) on budget related matters including a Facebook Live presentation this fall. •All budget materials and staff reports are posted and additional materials if presented at a meeting are also posted shortly after meeting to allow residents to follow the budget process. https://www.stlouispark.org/government/departments- divisions/finance/city-budget •A budget email address: budget@stlouispark.org is monitored year round for questions, and responses can be sent or data gathered and can be shared. New this year, the following communication tools will also be available: •A financial transparency tool so interested parties can review and look at financial and budget data. We plan to start with the General fund and work our way to the enterprise funds as time allows. You can see an example of this tool at: www.cleargov.com •We are also researching relevant content for a short video to produce on the budget/tax process. Our goal is to have this done before the TNT hearing. •This fall for the TNT notices we plan to put an insert in the mailing with some interesting facts to learn about the proposed 2020 budget for our city in an appealing and easy-to-understand format. Special study session meeting of June 17, 2019 (Item No. 2) Page 3 Title: 2020 budget Legislative directives: •There are no levy limits in place for 2020. •Local Government Aid has not been certified yet, but early Minnesota House Research estimates show St. Louis Park will receive $267,271 in 2020, which is same as 2019. These dollars go into the Capital Replacement Fund and not the General Fund budget. As you may recall, just two years ago we received $566,591. Staffing costs/wages: Being an organization that delivers services, programs and projects etc., funds for staffing are the largest expenditure of the City’s operating budget. In building the 2020 budget recommendations, a wage adjustment of 3% is being used as an assumption. Contracts for Local 49ers and sergeants are settled through December 31, 2020 (3% basic adjustment for 2019-20). In the fall of this year we will start negotiations with police, fire, and dispatch for their contracts that open year end. PERA coordinated plan: Employee contribution of 6.50% of salary and employer contribution of 7.50% of salary in 2019 will remain the same at this point in 2020. PERA police and fire: Employee contribution of 11.3% and employer contribution of 16.95% in 2019 will increase to 11.8% employee contribution and 17.70% employer contribution in 2020. Benefits: For 2019, we solicited bids for health insurance as required by state statute and received a very favorable bid from our current health insurance provider (HealthPartners) for an aggregate decrease in premiums of 5%. This resulted in a lower employer contribution in 2019 based on the funding philosophy. We were also pleased to receive a rate guarantee for 2020 and 2021 not to exceed a 9% increase in premiums each year. This 3 year contract provides stability in rates and gives the city the ability to plan and budget for future years with more accuracy. With this, we have active claims experience and anticipate a 9% increase for 2020. We will need to obtain a bid for dental as we are finishing the second year of our two year contract, and recommend to continue keep the same amount for those that qualify for the wellness benefit at $40 per employee per month (same level since 2014). These estimates are incorporated into the 2020 budget. Operational costs: Staff is being asked to look at how operational costs have been changing and take into consideration market conditions, as well as planning ahead for operational needs. The focus areas relate to the strategic priorities and include, but are not limited to: environment, climate action plan work, rank choice voting, race equity and inclusion, trails and sidewalks, housing and business programs, transportation, ongoing redevelopment. Support and outreach activities continue in public safety, fire prevention, neighborhoods and housing. Energy costs will continue to be monitored closely given the potential for volatility in this sector of the economy and also monitoring use as we continue to incorporate improvements in energy saving in our operations. Program support: SWLRT: Staff resources have been reallocated to meet increased demand for work and planning related to SWLRT. Community development along with engineering are closely working with other agencies and will incorporate changes as needed. Increases in consultant Special study session meeting of June 17, 2019 (Item No. 2) Page 4 Title: 2020 budget costs from SWLRT have been and will continue to be paid from the Development Fund when appropriate. Vision/comprehensive plan update/strategic priorities: The vision process and comprehensive plan were completed in 2018 and work continues to align these plans with our strategic priorities. Work to support strategic priorities are part of the budget analysis and planning and is being conducted by departments for 2020 funding recommendations. Race equity and inclusion: We have learned through last year’s baseline data and measures our biggest area of growth for racial equity and inclusion within the city is our personnel profile. Our 2020 year will be spent on recruiting, hiring and retaining staff of color, especially within leadership rolls and this includes representation on boards and commissions and other groups. We will continue working on normalizing the conversation of race, especially within areas where the conversation is not at the forefront. Expansion in the area of outreach will continue happening with connections within departments and with historically underrepresented communities. Research and strategic planning will focus on how to best engage youth within our city in order to create a sustainable model of engagement. Continued planning and working with other agencies will happen as well as further work on action plans with staff and council to make this part of the fabric of what we do in our city. Elections: In 2020 we will be responsible for administering three separate election cycles, including the brand new statewide Presidential Nomination Primary. Each cycle will require administration of absentee voting for 46 days, recruitment and training of election judges, programming and deployment of equipment, preparation of supplies and precinct materials, ballot design, and extensive voter outreach and education. Voters in St. Louis Park will need to be educated on the technical details and timing of the Presidential Nomination Primary system, why and how the Primary in March is different than the Primary in August, and the switch back to plurality voting from the most recent ranked-choice election. The November, 2020 election will likely see a historic number of people registering to vote, voting early at city hall and at the polls on Election Day. Additional temporary staff and election judges will be needed to adequately meet the needs of voters in St. Louis Park, maintain expected service levels, and address areas of need to increase voter engagement amongst traditionally underrepresented populations in the community. In addition to running three election cycles, staff will concurrently be reviewing and evaluating the 2019 ranked-choice election to address any potential changes or updates that may be needed to the system prior to 2021 and preparing for the city to go through the 2021 redistricting cycle. The redistricting process in particular will need to have an extensive public engagement and outreach process as we consider potential changes to precinct boundaries and polling places to ensure that we are adapting to the changing demographics and voter needs in St. Louis Park. Environment/climate action plan (CAP): Based on recent council discussions, some organizational changes are being made to provide more focus, resources and connections in this area. Issues revolving around sustainability and the environment are of extreme importance to our community and a very high priority of the city council. The city’s Climate Action Plan (CAP), adopted by the city council over a year ago, is a very strong reflection of that. Special study session meeting of June 17, 2019 (Item No. 2) Page 5 Title: 2020 budget This plan has extremely ambitious goals, most notably that the community as a whole will achieve carbon neutrality by the year 2040. In order to move ahead with support and programs in this area that helps meet council expectations, we will be creating a Division of Sustainability and its activities will move from Administration and become part of the Inspections Department. You may ask - why Inspections? • The CAP focus is on energy usage and related greenhouse gas emissions and some of the largest contributors are structures in the community (residential, commercial, and industrial). The Inspections Department has connections with all types of properties in the community and their expertise can be utilized to support CAP programs, incentives and activities. • Inspections staff are well versed in energy efficient design and construction systems, and meet with designers and contractors early in the construction process. • Synergy of services can be achieved by weaving CAP goals into the fabric of the current programs and services of the department. For example, our current business licensing program can be expanded as new programs, such as energy benchmarking, are considered. • Facilities is located in Inspections and can provide support and initiatives that fit with CAP and the city’s buildings and facilities. • Along with Inspections, there are many connections that Community Development has when dealing with economic development and business support. The synergies that can be made between the two departments will continue to help support the CAP initiatives and the goal of carbon neutrality by 2040. As we did in growing and supporting other important council priorities such as race equity and inclusion, curbside organics, ranked choice voting, etc., more resources will be needed to develop and support this initiative. Along with the existing Environment and Sustainability Coordinator we are recommending two additional positions: Sustainability Manager to lead the division and Sustainability Specialist to focus on outreach and education. We are also looking at changing the name of the Inspections Dept. to align it more closely with the services it provides. Changes are already taking place, funding is under research to continue to move ahead in 2019 and 2020. Given the magnitude of this undertaking long term, consideration should be given to creating a dedicated funding source. Utility funds: All utility funds will be presented during the budget process as in previous years. In 2018, we did a rate study and came away with a number of goals: • Assuring our rates are promoting water conservation in alignment with our climate action plan. • Assuring adequate revenue to pay capital needs for our infrastructure. • Fairness/Equity (are certain users paying more or less than they should). • Fixed costs are covered by the base fee. • Try to build upon and achieve “pay as you throw” • Encourage less water and more recycling. • Assure operations and capital are funded short and long term. Special study session meeting of June 17, 2019 (Item No. 2) Page 6 Title: 2020 budget We are in the first part of the implementation and will review in greater detail in August on any recommended changes/adjustments. Franchise fees: In 2019, council increased the franchise fee for all the related pavement management infrastructure in the 10 year capital improvement plan. We typically have only changed the amount every two year so in 2020 the amounts are anticipated to remain the same with a 2021 possible adjustment. The current monthly amount is $5.50 per utility (Gas and Electric). Fees, charges and other revenues: Staff will continue to review current fee data based on cost analyses and other communities before making recommendations for the 2020 fee schedules. LRFMP (long range financial management plan): This document will be presented at future meetings with council to assist in setting property tax levies, debt management, fees, utility rates and budgets. CIP (capital improvement plan): Staff has completed the first round work on the CIP (2020- 2029). This information has been programmed into the LRFMP and finance is analyzing the results in an effort to create long-term sustainability in funds and also looking at where changes in funding or expenditures/expenses need to occur for the city council and city manager to consider. The council will see a draft of the plan in August and again in the fall. Trends in valuations and possible property tax implications: For the 2019 assessment, St. Louis Park’s taxable market value increased by 8.5% with all of the dominant property types increasing in value. Composition of the change is summarized as +7.4% for single-family homes, +6.5% for condos, +9.5% for townhomes, +11.4% for apartments, and the commercial-industrial sectors at +9.5%. As can be surmised by the above figures, there will be a slight shift of the property tax burden to commercial, condos, and apartment properties for the payable 2020 tax period. This shift will be mitigated somewhat when considering all taxing jurisdictions that make up the typical property tax bill. The board of equalization was held in April 2019 which is where values are discussed and considered. City property tax levy: As a point of reference, the city’s 10 year average property tax levy increase is 4.57%. As the year progresses, and more firm information becomes available, staff will bring property tax levy recommendations and the potential impact on property owners for council to consider. Before this occurs though, and in preparation to bring budget and property tax levy recommendations to the council, staff would like to have council consider the following question: • At the May budget meeting staff heard that a majority of the council would be willing to consider a budget and related property tax levy increase in the range of 4 to 6 percent due to various factors anticipated to impact the city’s budget in 2020. These factors relate to staffing costs associated with program support items noted in this report, growth in the demand for services, and debt service, among other items. Can staff still assume the council is willing to consider setting a preliminary property tax levy increase in the range of 4 to 6 percent? HRA property tax levy: Based on current and future infrastructure needs, the HRA levy is recommended to be set at the maximum allowed of 0.0185% of estimated market value, which Special study session meeting of June 17, 2019 (Item No. 2) Page 7 Title: 2020 budget is consistent with previous years. This levy has been committed to pay back a loan from the development fund that helped cash flow the city’s obligation for Highway 7 and Louisiana Avenue and is expected to be paid off in 2019. A future policy discussion regarding the use of the levy will be presented at the August budget study session. City and HRA tax levies: The council and EDA will meet to adopt preliminary 2019 levies on September 16. After adoption of the preliminary property tax levies, the levies may be reduced, but not increased. The preliminary property tax levies that are adopted will then be used to determine the preliminary property taxes on the statements that Hennepin County mails out in November to all property owners. Next steps: The following preliminary timeline has been developed for council: July 22 Review and discussion of 2020 budget. Also added to this discussion based on council request is an overview of Police and Fire operations. (Also note, a follow up on Connect the Park initiative will be added as a discussion item by Engineering in the future.) August 12 Review and discussion of 2020 budget and draft 2020-2029 CIP. Department Directors or their designees will also be in attendance. September 3 (Tues) High level 2020 Budget, CIP, fees, utility rates discussion. This meeting will be more of a proposed preliminary levy discussion with direction provided to staff to prepare information for the September 16th meeting adopting preliminary levies. September 16 Council establishes 2019 preliminary property tax levy and HRA levy. (Levies can be reduced, but not increased for final property tax levies.) October 7 Review and discussion of 2020 budget, CIP, utility rates and LRFMP. Directors or their designees in attendance as needed. October 21 Public Hearing - 1st Reading of Fees, and adoption of 2020 Utility Rates November 4 (If necessary) Budget and CIP discussion prior to Truth in Taxation Public Hearing and budget presentation. 2nd Reading of Fee on Consent. November Live Facebook chat on 2020 budget and CIP. December 2 Truth in Taxation Public Hearing and budget presentation December 16 Council adopts 2019 Revised Budget, 2020 Budgets, final tax levies (City and HRA), and 2020 - 2029 CIP. Meeting: Economic development authority Meeting date: June 17, 2019 Minutes: 3a Unofficial minutes Economic development authority St. Louis Park, Minnesota May 6, 2019 1. Call to order President Pro Tem Brausen called the meeting to order at 7:20 p.m. Commissioners present: President Pro Tem Tim Brausen, Rachel Harris, Anne Mavity (arrived 7:23 p.m.) Thom Miller, Margaret Rog, and Jake Spano. Commissioners absent: President Hallfin Staff present: Executive Director (Mr. Harmening), Inspections Director (Mr. Hoffman), City Attorney (Mr. Mattick), Management Assistant (Ms. Carrillo Perez), and Recording Secretary (Ms. Pappas). 2. Roll call 3. Approval of minutes 3a. EDA minutes of April 1, 2019 It was moved by Commissioner Spano, seconded by Commissioner Miller, to approve the April 1, 2019 meeting minutes as presented. The motion passed 4-0-1 (Brausen abstained, President Hallfin and Commissioner Mavity absent). Commissioner Anne Mavity arrived 7:23 p.m. 5. Reports 5a. Approval of EDA Disbursements It was moved by Commissioner Miller, seconded by Commissioner Spano, to approve the EDA disbursements as presented. The motion passed 6-0 (President Hallfin absent). 6. Old business - None 7. New business - None 8. Communications - None Economic development authority meeting of June 17, 2019 (Item No. 3a) Page 2 Title: Economic development authority meeting minutes of May 6, 2019 9. Adjournment The meeting adjourned at 7:24 p.m. ______________________________________ ______________________________________ Melissa Kennedy, Secretary President Hallfin Meeting: Economic development authority Meeting date: June 17, 2019 Consent agenda item: 4a Executive summary Title: Approval of EDA disbursements Recommended action: Motion to accept for filing EDA disbursement claims for the period of April 27, through June 7, 2019. Policy consideration: Does the EDA desire to approve EDA disbursements in accordance with Article V – Administration of Finances, of the EDA bylaws? Summary: The finance division prepares this report on a monthly basis for the EDA to review and approve. The attached reports show both EDA disbursements paid by physical check and those by wire transfer or Automated Clearing House (ACH) when applicable. Financial or budget considerations: Review and approval of the information follows the EDA’s charter and provides another layer of oversight to further ensure fiscal stewardship. Strategic priority consideration: Not applicable. Supporting documents: EDA disbursements Prepared by: Kari Mahan, Accounting Clerk Reviewed by: Tim Simon, Chief Financial Officer Approved by: Tom Harmening, City Manager/EDA Executive Director 6/7/2019CITY OF ST LOUIS PARK 13:15:13R55CKS2 LOGIS400V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 1,000.00APPRAISAL PARTNERS, INC.DEVELOPMENT - EDA G&A APPRAISALS 1,000.00 3,216.80ASAKURA ROBINSON COMPANY INC DEVELOPMENT - EDA G&A PLANNING 3,216.80 150,000.00CMDCDEVELOPMENT - EDA BALANCE SHEE LOAN RECEIVABLE - LONG TERM 2,250.00DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 152,250.00 94.00EHLERS & ASSOCIATES INC 4900 EXC BLVD TIF DIST G&A OTHER CONTRACTUAL SERVICES 94.25ELIOT PARK TIF DIST G&A OTHER CONTRACTUAL SERVICES 94.25WEST END TIF DIST G&A OTHER CONTRACTUAL SERVICES 94.25ELLIPSE ON EXC TIF DIST G&A OTHER CONTRACTUAL SERVICES 94.25PARK CENTER HOUSING G&A OTHER CONTRACTUAL SERVICES 94.25CSM TIF DIST G&A OTHER CONTRACTUAL SERVICES 94.25MILL CITY G&A OTHER CONTRACTUAL SERVICES 94.25PARK COMMONS G&A OTHER CONTRACTUAL SERVICES 829.25ELMWOOD VILLAGE G & A OTHER CONTRACTUAL SERVICES 94.25WOLFE LAKE COMMERCIAL TIF G&A OTHER CONTRACTUAL SERVICES 94.25SHOREHAM TIF DIST G&A OTHER CONTRACTUAL SERVICES 94.25AQUILA COMMONS G & A OTHER CONTRACTUAL SERVICES 94.25HWY 7 BUSINESS CENTER G & A OTHER CONTRACTUAL SERVICES 1,960.00 13,437.58HOISINGTON KOEGLER GROUP INC DEVELOPMENT - EDA G&A PLANNING 13,437.58 3,827.50KENNEDY & GRAVEN BELTLINE SWLRT DEVELOPMENT LEGAL SERVICES 790.654900 EXC BLVD TIF DIST G&A LEGAL SERVICES 730.00DEVELOPMENT - EDA G&A LEGAL SERVICES 5,348.15 652.00LHB INC DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 652.00 6,000.00LOCKRIDGE GRINDAL NAUEN PLLP DEVELOPMENT - EDA G&A LEGAL SERVICES 6,000.00 74,950.00MCCDDEVELOPMENT - EDA BALANCE SHEE LOAN RECEIVABLE - LONG TERM 74,950.00 Economic development authority meeting of June 17, 2019 (Item No. 4a) Title: Approval of EDA disbursements Page 2 6/7/2019CITY OF ST LOUIS PARK 13:15:13R55CKS2 LOGIS400V 2Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 2,300.00PARK THEATER COMPANY PUBLIC ART OTHER CONTRACTUAL SERVICES 2,300.00 64.47QUICKSILVER EXPRESS COURIER DEVELOPMENT - EDA G&A DELIVERY 64.47 2,220.00REDICOMPSDEVELOPMENT - EDA G&A SUBSCRIPTIONS/MEMBERSHIPS 2,220.00 2,909.76SLP NEST DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 2,909.76 72,930.59ST LOUIS PARK CONV & VISITORS BUREAU CONVENTION & VISITORS BUREAU COST REIMBURSEMENT-CVB 72,930.59 Report Totals 339,239.35 Economic development authority meeting of June 17, 2019 (Item No. 4a) Title: Approval of EDA disbursements Page 3 Meeting: Economic development authority Meeting date: June 17, 2019 Consent agenda item: 4b Executive summary Title: First Amendment to Preliminary Development Agreement - Sherman Associates Recommended action: Motion to adopt EDA Resolution approving the First Amendment to the Preliminary Development Agreement between the EDA, city, and Sherman Associates relative to the Beltline Blvd Station Redevelopment Site. Policy consideration: Does the EDA/city council wish to extend the Preliminary Development Agreement with Sherman Associates so as to continue joint efforts to prepare a mixed-use development plan for the Beltline Blvd Station Redevelopment Site? Summary: On February 5, 2018, the EDA and city council approved a Preliminary Development Agreement (PDA) between the EDA, city and Sherman Associates in which the parties pledged to work cooperatively together toward a mutually acceptable mixed-use redevelopment plan for the Beltline Blvd Station Redevelopment Site. Over the past year, the parties have been working collaboratively on a joint development vision for the site. However, the necessity to obtain full fee title to the parcels at the southeast quadrant of Highway 7 and Beltline Blvd and the 4725 Highway 7 property took precedence as without them the development potential of the entire site would be severely limited. Now that those title issues have been resolved, the parties are preparing a more definitive site plan and development program for the redevelopment site. The original PDA expires June 30, 2019 unless it is extended. Given the progress made to date and the parties’ ongoing mutual interest in the proposed redevelopment site, the parties wish to extend the PDA to June 30, 2020 by which point the parties hope to reach a formal Purchase and Redevelopment Contract. The proposed PDA extension was noted in the March 18, 2019 special study session staff report and requires approval by both the EDA and city council. The purpose of the PDA is to formalize the respective parties’ obligations under the SWLRT Funding Agreements with the Metropolitan Council and the Congestion Mitigation Air Quality (CMAQ) grant with the Federal Transit Administration for the structured public parking at the SWLRT Beltline Blvd Station, and the parties’ respective responsibilities relative to further defining a redevelopment plan. The PDA also provides Sherman Associates with formal permission to access the Station Site in order to continue conducting its due diligence as well as provide Sherman with exclusive rights to negotiate acquisition of the subject properties with the EDA and the city. This is essential as it provides Sherman with assurance of its ability to secure the subject properties once a mutually acceptable redevelopment plan for the site has been reached. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: EDA Resolution First Amendment to Preliminary Development Agreement Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager Economic development authority meeting of June 17, 2019 (Item No. 4b) Page 2 Title: First Amendment to Preliminary Development Agreement - Sherman Associates St. Louis Park Economic Development Authority EDA Resolution No. 19 -____ Resolution approving a First Amendment to the Preliminary Redevelopment Agreement between the St. Louis Park Economic Development Authority and, the City of St. Louis Park and Beltline Development LLC Be it resolved by the Board of Commissioners ("Board") of the St. Louis Park Economic Development Authority, St. Louis Park, Minnesota (the "Authority") as follows: Recitals. Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1081, as amended, the Authority administers its Redevelopment Project No. 1 (the “Project”), for the purpose of facilitating the redevelopment of certain substandard property within the Project. The Authority and the City of St. Louis Park (the “City”) own certain property (the “Property”) within the Project, which Property has been the subject of certain preliminary negotiations with Beltline Development LLC (the “Developer”) for purposes of constructing a mixed-use (multi-family residential and commercial) development on the Property and related parking, including a parking ramp serving in part as a park and ride facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station (the “Development”). 1.03. The Authority, the City, and the Developer executed a Preliminary Development Agreement, dated as of February 5, 2018 (the “Agreement”), providing for the performance of certain activities on the part of the parties in preparation for the negotiation of a definitive Purchase and Redevelopment Contract in connection with the Property. 1.04. The parties have negotiated and propose to execute a First Amendment to the Agreement (the “First Amendment”) to extend the deadline for the completion of these preliminary activities for a period of up to twelve months. Section 2. First Amendment Approved. 2.01. The First Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the First Amendment by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the First Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. Economic development authority meeting of June 17, 2019 (Item No. 4b) Page 3 Title: First Amendment to Preliminary Development Agreement - Sherman Associates 2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Reviewed for Administration: Adopted by the Economic Development Authority June 17, 2019 Thomas K. Harmening, Executive Director Steve Hallfin, President Attest: Melissa Kennedy, Secretary Economic development authority meeting of June 17, 2019 (Item No. 4b) Page 4 Title: First Amendment to Preliminary Development Agreement - Sherman Associates FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT (this “First Amendment”), dated June __, 2019, by and between the St. Louis Park Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota (the “Authority”), the City of St. Louis Park, a Minnesota municipal corporation (the “City”), and Beltline Development LLC, a Minnesota limited liability company, as assignee of Sherman Associates Development LLC (the “Developer”); WITNESSETH: WHEREAS, the Authority and the City desire to promote development of certain property within Redevelopment Project No. 1 (the “Project”) in the City depicted and described in Exhibit A hereof (the “Property”); and WHEREAS, the Property is made up of four parcels, of which the three parcels constituting the City and Authority Property are owned by the City or the Authority, and the parcel constituting the Developer Property has been acquired by the Developer; and WHEREAS, the City and Authority previously determined that it is in the best interests of the City that the Developer be designated as the sole developer of the Property during the term of an initial Preliminary Development Agreement between the parties, dated as of February 5, 2018 (the “Initial Agreement”); and WHEREAS, the parties have worked diligently to perform their obligations under the Initial Agreement and now wish to extend the term of the Initial Agreement pursuant to this First Amendment. NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the Authority, the City and the Developer hereby agree as follows: 1. During the term of this First Amendment, the parties agree to continue working cooperatively toward the goals outlined in the Initial Agreement, pursuant to its terms. 2. This First Amendment shall terminate by its terms if the governing bodies of the Authority and City have not approved the Contract (as defined in the Initial Agreement) by June 30, 2020. Upon such termination, the Developer remains obligated to pay any costs payable under paragraph 14 of the Initial Agreement that were incurred by the Authority and the City prior to such date. 3. Paragraph 1(c) of the Initial Agreement is hereby amended to provide as follows: (c) If the parties execute the Contract and proceed to closing on the conveyance of all or a portion of the City and Authority Property by August 31, 2020, all Development Deposit amounts paid to the City by the Developer shall be applied to the purchase price of such property. 4. Except as amended by this First Amendment, the Initial Agreement shall remain in full force and effect. Upon execution, the Developer shall reimburse the Authority for all reasonable Economic development authority meeting of June 17, 2019 (Item No. 4b) Page 5 Title: First Amendment to Preliminary Development Agreement - Sherman Associates out-of-pocket costs incurred by the Authority in connection with negotiating, drafting and approval of this First Amendment. (The remainder of this page is intentionally left blank.) Economic development authority meeting of June 17, 2019 (Item No. 4b) Page 6 Title: First Amendment to Preliminary Development Agreement - Sherman Associates IN WITNESS WHEREOF, the City and Authority have caused this First Amendment to be duly executed in their name and behalf and their seal to be duly affixed hereto and the Developer has caused this First Amendment to be duly executed as of the date and year first above written. DEVELOPER: AUTHORITY: BELTLINE DEVELOPMENT LLC ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By: By: George E. Sherman, President Steve Hallfin, President By: _________________________ Thomas K. Harmening, Executive Director CITY: CITY OF ST. LOUIS PARK By: Jake Spano, Mayor By: Thomas K. Harmening, City Manager Economic development authority meeting of June 17, 2019 (Item No. 4b) Page 7 Title: First Amendment to Preliminary Development Agreement - Sherman Associates EXHIBIT A PROPERTY: City and Authority Property: Parcel A, located at 4601 Highway 7; Parcel B, located at 3130 Monterey Avenue South; and Parcel C, consisting of certain right-of-way along Highway 7 and Monterey Avenue South. Developer Property: Parcel D, located at 4725 Highway 7. Meeting: Economic development authority Meeting date: June 17, 2019 Consent agenda item: 4c Executive summary Title: Amend Economic Development Authority bylaws Recommended action: Motion to approve amending the bylaws of the St. Louis Park Economic Development Authority relating to meeting start times. Policy consideration: Does the EDA want to amend their bylaws to change the start time for regular meetings? Summary: The bylaws of the St. Louis Park Economic Development Authority were originally adopted in December, 1998 and were amended in October, 2006. The bylaws provide guidelines for the structure, duties, and conduct of business by the Economic Development Authority. Amendments to the bylaws require approval of at least four (4) members of the EDA at a regular or a special meeting. According to current provisions of the EDA bylaws, regular meetings of the EDA (held on the first and third Monday of each month) are scheduled to occur at 7:00 p.m. Because the EDA generally meets prior to each regular meeting of the city council, and because the start time for regular meetings of the city council is proposed to change to 6:30 p.m., an amendment to the EDA bylaws is needed. Section 4.1 of the bylaws of the Economic Development Authority would be amended to read as follows: 4.1) Regular Meetings. Regular meetings of the EDA shall be held at the regular meeting place of the St. Louis Park City Council on the first and third Monday of each month, at 7:00 6:00 p.m., provided, however, that when the schedule of regular meetings of the St. Louis Park City Council in any year provides for a city council meeting on a day other than the first and third Monday, the regular meeting of the EDA shall be held at 7:00 6:00 p.m. on the date of the regular city council meeting. If approved, the proposed changes would take effect for the July 15, 2019 regular EDA meeting. Financial or budget considerations: None. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: St. Louis Park Economic Development Authority Bylaws (proposed) Prepared by: Melissa Kennedy, Secretary Reviewed by: Nancy Deno, Deputy Executive Director Approved by: Tom Harmening, Executive Director Economic development authority meeting of June 17, 2019 (Item No. 4c) Page 2 Title: Amend Economic Development Authority bylaws St. Louis Park Economic Development Authority Bylaws Adopted by the Economic Development Authority December 7, 1998 Amended October 16, 2006 Amended June 15, 2019 Article I – The EDA 1.1) Name. The name of the public body shall be the “St. Louis Park Economic Development Authority” which is referred to herein from time to time as the “EDA.” 1.2) Seal of EDA. The seal of the EDA shall be in the form of a circle and shall bear the name of the EDA and the year of its organization. 1.3) Commissioners. The seven members of the St. Louis Park City Council shall serve as Commissioners of the EDA pursuant to Resolution 88-134 of the city council of the City of St. Louis Park. 1.4) Powers. The powers of the EDA shall be vested in the commissioners thereof in office from time to time. Article II - Officers 2.1) Officers. The officers of the EDA shall consist of a President, a Vice President, a Secretary, a Treasurer, an Executive Director and such other officers and agents as may from time to time be chosen. Any of the offices, except those of President and Vice President, may be held by one person. The offices of Executive Director and Secretary shall not be held by a commissioner. 2.2) President. The President shall preside at all meetings of the EDA. At each meeting the President shall submit such recommendations and information as the President may consider proper concerning the business, affairs and policies of the EDA. 2.3) Vice-President. The Vice-President shall have such powers and perform such duties as may be prescribed by the EDA. In the event of absence or disability of the President, the Vice- President shall succeed to the power and duties of the office of President. 2.4) Secretary. The city clerk of the City of St. Louis Park shall serve as the Secretary. The Secretary shall give proper notice of all meetings. The Secretary shall keep the seal, and shall affix the same to any instrument requiring it and shall attest the seal by the Secretary’s signature. The Secretary shall also be responsible for the minutes of all meetings and shall perform such other duties as the EDA shall prescribe. 2.5) Treasurer. The Treasurer shall keep accurate accounts of all moneys, drafts, and checks in the name of and to the credit of the EDA in such banks and depositories as a majority of the commissioners shall designate from time to time The Treasurer shall have power to endorse for deposit all notes, checks, and drafts received by the EDA. 2.6) Executive director. The city manager of the City of St. Louis Park shall serve as Executive Director, who shall have general supervision over the administration of its business and affairs, subject to the direction of the EDA. The Executive Director shall also serve as Assistant Economic development authority meeting of June 17, 2019 (Item No. 4c) Page 3 Title: Amend Economic Development Authority bylaws Treasurer. The deputy city manager of the city shall serve as Deputy Executive Director, who in the absence or disability of the Executive Director, shall succeed to the powers and duties of the Executive Director. 2.7) Additional duties. The officers shall perform such duties and functions as may from time to time be required by the EDA or the bylaws or rules and regulations of the EDA. Article III – Election or Appointment of Officers 3.1) Elections, term of office, and qualifications. The President, Vice President, and Treasurer shall be elected annually at the first regular meeting of the EDA in January of each year. Such officers shall hold office until the next election successors are elected and qualify. 3.2) Appointed offices. The Executive Director and Secretary shall by appointed by the EDA. Any person appointed to fill the offices of Executive Director, Secretary, or any vacancy therein, shall have such term as the EDA fixes, but no commissioner of the EDA shall be eligible to these offices. 3.3) Vacancies. Should the office of President or Vice-President become vacant the EDA shall elect a successor from its membership at the next regular meeting, and such election shall be for the unexpired term of said office. When the offices of Executive Director or Secretary become vacant, the EDA may appoint a successor. 3.4) Additional personnel. The EDA may from time to time employ or use such personnel as it deems necessary to exercise its powers, duties and functions as prescribed by law. The selection and compensation of such personnel (including the Executive Director and any Deputy Executive Director) shall be determined by the EDA in accordance with law. Article IV - Meetings 4.1) Regular meetings. Regular meetings of the EDA shall be held at the regular meeting place of the St. Louis Park City Council on the first and third Monday of each month, at 6:00 p.m., provided, however, that when the schedule of regular meetings of the St. Louis Park City Council in any year provides for a city council meeting on a day other than the first and third Monday, the regular meeting of the EDA shall be held at 6:00 p.m. on the date of the regular city council meeting. 4.2) Special meetings. Special meetings of the EDA may be called by the President or three (3) commissioners for the purpose of transacting any business designated in the call. The call for special meeting shall be delivered in compliance with state law and shall conform with the procedures applicable to the city council for the calling of special meetings. 4.3) Quorum. Four (4) commissioners shall constitute a quorum for the purpose of conducting the business of the EDA and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. 4.4) Voting. When a quorum is in attendance, action may be taken by the EDA upon an affirmative vote of four (4) commissioners. Economic development authority meeting of June 17, 2019 (Item No. 4c) Page 4 Title: Amend Economic Development Authority bylaws 4.5) Order of business. At the regular meetings of the EDA, the following shall be the order of business: 1. Roll call 2. Approval of agenda 3. Approval of consent agenda 4. Approval of minutes 5. Unfinished business 6. New business 7. Communications and bills 8. Adjournment 4.6) Resolutions. All resolutions shall be in writing and shall be copied in the journal of the proceedings of the EDA. 4.7) Manner of voting. The manner of voting on all questions coming before the EDA shall conform to the procedures applicable to the St. Louis Park City Council and may be by voice or roll call. Upon request of any commissioner, the yeas and nays shall be entered upon the minutes of such meeting. Article V - Administration of finances 5.1) Contracts, checks and drafts. The Executive Director shall be the chief purchasing agent of the EDA. All purchases on behalf of the EDA shall be made, and all contracts shall be let, by the Executive Director, provided that the approval of the EDA must be given whenever the amount of such purchase or contract exceeds $50,000. All contracts, bonds, and instruments of every kind to which the EDA is a party shall be executed in the name of the EDA, and shall be signed by the President and Executive Director. Execution of any instruments by the President and Executive prior to October 16, 2006, but not attested by the Secretary or endorsed with the EDA seal, is ratified. 5.2) Manner of presentation of claims. All bills, invoices, statements and claims for payment of money in discharge of any obligation of the EDA shall be filed with the Executive Director/Assistant Treasurer who shall cause the same to be examined and entered into the record. Each claim against the EDA shall be accompanied by either an itemized bill or payroll, or time sheet, each of which shall be approved and signed by the responsible officer who vouches for the correctness and reasonableness thereof and, except in the case of salaries and wages of employees and laborers of the EDA, shall be accompanied by the claimant’s verified statement of claim as required by law. 5.3) Payment of claims. The Executive Director/Assistant Treasurer is authorized to pay all claims determined to be proper obligations of the EDA and consistent with the budget approved by the EDA. The Executive Director/Assistant Treasurer shall cause a list of newly paid claims to be prepared for EDA review at each regular meeting of the EDA. 5.4) Facsimile signatures on EDA checks. Orders and checks may be combined into a single instrument and may be issued on behalf of the EDA upon affixing facsimile signatures of the President and Executive Director/Assistant Treasurer. Economic development authority meeting of June 17, 2019 (Item No. 4c) Page 5 Title: Amend Economic Development Authority bylaws Article VI – Indemnification 6.1) Indemnification. The EDA shall be authorized to the fullest extent permitted by law to indemnify any person against expenses and liabilities arising by reason of the fact that the person is or was a commissioner, officer, employee, or agent of the EDA. 6.2) Insurance. The EDA may purchase and maintain insurance on behalf of any indemnified person in that person’s official capacity against any liability asserted against that person and incurred by that person in such capacity whether or not the EDA would have been required to indemnify the person against the liability under Section 6.1 hereof. Article VII – Amendments to bylaws 7.1) Amendments to bylaws. These bylaws shall be amended only with the approval of at least four (4) of the members of the EDA at a regular or a special meeting. Amendments adopted October 16, 2006; June 17, 2019 Meeting: Economic development authority Meeting date: June 17, 2019 Action agenda item: 7a Executive summary Title: Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC Recommended action: Motion to adopt EDA Resolution approving the Fifth Amendment to Purchase and Redevelopment Contract – PLACE E-Generation One, LLC. Policy consideration: Does the EDA wish to extend the deadline for conveyance of the South Parcels to PLACE and extend the required construction dates for its Via Sol and Via Luna projects? Summary: As stated in the June 10, 2019 study session staff report and as discussed that evening, design work on the Via Luna apartment and hotel buildings (South Components) will not be construction approval-ready by the required closing date of June 28, 2019. Likewise financing for the South Components has not yet been secured. Since these and other actions are required to be complete prior to acquisition of the South Parcels per the fourth amendment to the Purchase and Redevelopment Contract, PLACE is requesting that the closing date for acquisition of the South Parcels be extended to December 31, 2019. Given the additional time needed to close on the South Parcels and the current construction status of Via Sol on the North Parcels, PLACE is requesting that the construction commencement date for Via Luna be extended to January 31, 2020 and that the completion dates for both Via Sol and Via Luna projects be extended to December 31, 2020 and July 31, 2021, respectively. The above requested revisions require a fifth amendment to the Purchase and Redevelopment Contract (attached) which was prepared for approval by the EDA’s legal counsel. Financial or budget considerations: The proposed revisions in and of themselves have no significant financial impact for the EDA. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: EDA Resolution Fifth Amendment to Purchase and Redevelopment Contract Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager Economic development authority meeting of June 17, 2019 (Item No. 7a) Page 2 Title: Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC St. Louis Park Economic Development Authority EDA Resolution No. 19 -___ Resolution approving a Fifth Amendment to Purchase and Redevelopment Contract between the Authority and PLACE E-Generation One, LLC Be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park Economic Development Authority (the “Authority”) as follows: Section 1. Recitals 1.01. The Authority and the City of St. Louis Park have heretofore approved the establishment of the Wooddale Station Tax Increment Financing District (the “TIF District”) within Redevelopment Project No. 1 (the “Project”), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. 1.02. To facilitate the redevelopment of certain property within the Project and TIF District, the Authority and PLACE E-Generation One LLC (the “Redeveloper”) have previously negotiated a Purchase and Redevelopment Contract (as subsequently amended, the “Agreement”) which provides for the conveyance of certain property described in Exhibit A hereto (the “Property”) to the Redeveloper, the construction by the Redeveloper of a mixed- use, mixed-income, transit-oriented development, including rental housing, and associated parking on the Property, and the issuance of one or more Tax Increment Revenue Notes to the Redeveloper. 1.03. In order to allow the Redeveloper adequate time to obtain financing for construction of the Minimum Improvements (as defined in the Agreement), the Redeveloper has requested and the Authority has consented to four prior amendments of the Agreement, extending the dates for closing of the Property and amending various other provisions. 1.04. The Redeveloper has requested an additional extension of the dates for closing on a portion of the Property (the “South Parcels”) and for completion of construction of the Minimum Improvements, and the parties have negotiated a Fifth Amendment to the Agreement (the “Fifth Amendment”) in the form presented to the Board. 1.05. The Board has reviewed the Fifth Amendment and finds that the execution thereof and performance of the Authority’s obligations thereunder, including extension of the dates of conveyance of the South Parcels to the Redeveloper, are in the best interest of the City and its residents. Economic development authority meeting of June 17, 2019 (Item No. 7a) Page 3 Title: Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC Section 2. Approval of Documents. 2.01. The Fifth Amendment as presented to the Board, including the provisions for the conveyance of the South Parcels, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Fifth Amendment by such officials shall be conclusive evidence of approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority’s obligations under the Agreement as amended, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreement, and any deed or other documents necessary to convey the South Parcels to Redeveloper, all as described in the Agreement as amended by the Fifth Amendment. Section 3. Effective Date. This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority June 17, 2019 Thomas K. Harmening, Executive Director Steve Hallfin, President Attest Melissa Kennedy, Secretary Economic development authority meeting of June 17, 2019 (Item No. 7a) Page 4 Title: Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC EXHIBIT A PROPERTY North Parcels: Lot 1, Blocks 1 and 2, PLACE, according to the recorded plat thereof, Hennepin County, Minnesota. South Parcels: Lot 1, Block 3, PLACE, according to the recorded plat thereof, Hennepin County, Minnesota. Economic development authority meeting of June 17, 2019 (Item No. 7a) Page 5 Title: Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC FIFTH AMENDMENT TO PURCHASE AND REDEVELOPMENT CONTRACT This Fifth Amendment to Purchase and Redevelopment Contract (the “Amendment”) is dated as of __________, 2019, by and between ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of the State of Minnesota (the “Authority”), and PLACE E-GENERATION ONE LLC, a Delaware limited liability company (the “Redeveloper”). RECITALS A. The Authority and the Redeveloper executed a certain Purchase and Redevelopment Contract, dated as of May 1, 2017, as amended by a First Amendment thereto dated as of November 6, 2017 and a Second Amendment thereto dated as of December 18, 2017, a Third Amendment thereto dated as of May 7, 2018, and a Fourth Amendment thereto dated as of November 5, 2018 (as so amended, the “Agreement”), pursuant to which the Authority agreed to convey certain property described in the Agreement (the “Redevelopment Property”) to the Redeveloper and pledged Available Tax Increment (as defined in the Agreement) to pay or reimburse certain costs incurred by the Redeveloper in connection with the development of certain North Components, consisting of the North Apartments Component, the North Commercial Space Component, and associated parking on the northern portion of the Redevelopment Property (the “North Parcels”); and certain South Components, consisting of the South Apartments Component, the South Commercial Space Component, the Hotel Component, the E-Generation Facility Component, and associated parking (all as defined in the Agreement) on the southern portion of the Redevelopment Property (the “South Parcels”) (collectively, the “Minimum Improvements”). B. The Agreement provided for closing on conveyance of the North Parcels of the Redevelopment Property by a date no later than December 31, 2018, and on the South Parcels by a date no later than June 28, 2019. C. In order to provide more time for the Redeveloper to finalize Construction Plans and to secure the financing required for construction of the South Components as provided in the Agreement, the parties agree to extend the date of closing on conveyance of the South Components of the Redevelopment Property and to amend certain other provisions of the Agreement, as set forth herein. Economic development authority meeting of June 17, 2019 (Item No. 7a) Page 6 Title: Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Amendment of Section 3.3(b). Section 3.3(b) of the Agreement is amended as follows: Section 3.3. Conditions of Conveyance. (b) The closing on conveyance of the North Parcels of the Redevelopment Property from the Authority to the Redeveloper (the “North Closing”) occurred on December 28, 2018. The closing on conveyance of the South Parcels of the Redevelopment Property from the Authority to the Redeveloper (the “South Closing”) shall occur within thirty (30) days of satisfaction or waiver of conditions (1) through (9) specified in Section 3.3(a) hereof, and subject to the continued satisfaction at the South Closing of condition (10), but no later than December 31, 2019 (the “South End Date”); provided that the South End Date shall be subject to extension upon mutual agreement of the parties. Time is of the essence of this Agreement. 2. Amendment of Section 4.3(a). Section 4.3(a) of the Agreement is amended as follows: (a) Subject to Unavoidable Delays, the Redeveloper shall commence construction of the Minimum Improvements as follows: (i) with respect to the North Components, by December 31, 2018; and (ii) with respect to the South Components, by January 31, 2020. Subject to Unavoidable Delays, the Redeveloper shall complete the construction of the Minimum Improvements as follows: (1) with respect to the North Components, by December 31, 2020; and (2) with respect to the South Components, by July 31, 2021. For purposes of this paragraph, commencement of construction shall mean commencement of environmental remediation activities. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority. If the Redeveloper becomes aware that Redeveloper is not likely to meet the required deadline for commencement and/or completion of construction of the Minimum Improvements, the Redeveloper agrees to provide a written and oral report to the City Council of the City at a regular City Council meeting prior to the applicable deadline. The report must describe the reasons for the expected failure to meet the applicable deadline, evidence of the Redeveloper’s good faith efforts to construct the Minimum Improvements, and a detailed revised schedule. Approval of a modified schedule for construction by the Authority shall not be unreasonably withheld, conditioned or delayed. Failure to timely provide such written and oral report is an Event of Default. 3. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain in full force and effect. Upon execution of this Amendment, Redeveloper shall reimburse the Authority for all out-of-pocket costs incurred by the Authority in connection with negotiating, drafting and approval of this Amendment. (Signature pages follow.) Economic development authority meeting of June 17, 2019 (Item No. 7a) Page 7 Title: Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC IN WITNESS WHEREOF, the Authority and the Redeveloper have caused this Amendment to be duly executed by their duly authorized representatives. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________, 2019, by Steve Hallfin and Thomas K Harmening, the President and Executive Director of the St. Louis Park Economic Development Authority, a public body corporate and politic, on behalf of the Authority. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Kennedy & Graven, Chartered (MNI) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, Minnesota 55402 Economic development authority meeting of June 17, 2019 (Item No. 7a) Page 8 Title: Fifth Amendment to Purchase and Redevelopment Contract with PLACE E-Generation One, LLC PLACE E-GENERATION ONE LLC By ___________________________________ Its President STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________, 2019, by Chris Velasco, the President of PLACE E-Generation One LLC, a Delaware limited liability company, on behalf of the company. Notary Public Meeting: City council Meeting date: June 17, 2019 Presentation: 2a Executive summary Title: Presentation accepting monetary donation from the Rotary Club of St. Louis Park Recommended action: Nate Rosa, Recreation Supervisor, will be present to accept a donation in the amount of $2,000 from Paul Bierhaus, a member of the Rotary Club of St. Louis Park, for the recreation department’s Family Movie Nights program ($2000). The donation will be officially accepted by the city council as a consent item following the presentation. Policy consideration: Does the city council wish to accept the gift with restrictions on its use? Summary: State statute requires city council’s acceptance of donations. This requirement is necessary to make sure the city council has knowledge of any restrictions placed on the use of each donation prior to it being expended. The Rotary Club of St. Louis Park is graciously donating an amount of $2,000. The donation is given with the restriction that it be used toward the Recreation Division’s Family Movie Nights. Financial or budget considerations: The Rotary Club of St. Louis Park accepted donations at the Annual Bundled Up event held on January 26, 2019. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: None Prepared by: Nate Rosa, Recreation Supervisor Reviewed by: Cynthia S. Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager Meeting: City council Meeting date: June 17, 2019 Presentation: 2b Executive summary Title: Retirement recognition for Police Officer Dennis Maki Recommended action: Read resolution and present plaque to Dennis for his 23 years of service to the City of St. Louis Park. Policy consideration: None at this time. Summary: City policy states that employees who retire or resign in good standing with over 20 years of service will be presented with a resolution from the mayor, city manager and city council. Police Officer Dennis Maki will be in attendance for the presentation at the beginning of the meeting. The mayor pro-tem is asked to read the resolution and present plaque to Dennis in recognition of his years of service to the city. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Ali Timpone, HR Manager Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 2b) Page 2 Title: Retirement recognition for Police Officer Dennis Maki Resolution No. 19-___ Resolution of the City Council of the City of St. Louis Park, Minnesota recognizing the contributions and expressing appreciation to Police Officer Dennis Maki Whereas, Dennis Maki began his employment with the City of St. Louis Park over 23 years ago on November 27, 1995; and Whereas, Dennis faithfully served the citizens of St. Louis Park for 17 years as a patrol officer; and Whereas, Dennis served as the department’s Drug Abuse and Resistance Education Officer from January 1999 to January 2003 where he developed lasting relationships with students and staff members in the St. Louis Park Public Schools, Jewish Day School and Torah Academy; and Whereas, Dennis served as the department’s School Resource Officer from September 2017 until his retirement, and during this assignment Dennis continued to develop lasting relationships with students and staff members with Benilde St. Margaret’s, Torah Academy, community members and business owners; and Whereas, prior to starting his career with the St. Louis Park Police Department, Dennis served as a Corporal in the United States Marine Corps from August 1984 to June 1988 and as a police officer with the Fort Dodge Iowa Police Department from February 1994 to November 1995; and Now therefore be it resolved that the City Council of the City of St. Louis Park, Minnesota, by this resolution and public record, would like to thank Dennis Maki for his great contributions and more than 23 years of dedicated service to the City of St. Louis Park and wish him the best in his retirement. Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: June 17, 2019 Presentation: 2c Executive summary Title: Recognition of donation Recommended action: Mayor to announce and express thanks and appreciation for the following donations being accepted at the meeting and listed on the consent agenda: From Donation For Mackenzie Ann Kerska $500 value Elliptical machine for the police department fitness facility Strategic priority consideration: Not applicable. Supporting documents: None Prepared by: Debbie Fischer, Administrative Services Office Assistant Approved by: Tom Harmening, City Manager Meeting: City council Meeting date: June 17, 2019 Presentation: 2d Executive Summary Title: Comprehensive annual financial report for the year ended December 31, 2018 Recommended action: No action required. David J. Mol, Partner from Redpath and Company, will make a presentation on the opinion issued and other required forms of communication to the city council. Policy consideration: What additional information may the council want relative to the 2018 CAFR? Summary: The city is required to have an annual independent audit of its financial statements in which the audit firm issues an opinion on the financial statements. The city received a “clean” audit opinion, or unmodified opinion, which means that Redpath and Company believe the financial statements, as presented by city staff, present fairly, in all material respects, the financial position of the City as of December 31, 2018. After the city council reviews the CAFR for 2018, it will be submitted to the office of the state auditor as required and also submitted to the Government Finance Officers Association (GFOA) to be considered for the Achievement for Excellence in Financial Reporting certificate program for which the City of St. Louis Park has been recognized for 35 consecutive years. Financial or budget considerations: This report shows the City of St. Louis Park continues to remain in strong financial condition. Strategic priority consideration: Not applicable. Supporting documents: 1) 2018-Communication with those charged with governance* 2) 2018-Auditor’s report on internal control* 3) 2018-MN legal compliance report* 4) 2018-Comprehensive annual financial report* (*See Special Study Session Report for Attachments) Prepared by: Mark Ebensteiner, Finance Manager Reviewed by: Nancy Deno, Deputy City Manager/HR Director Tim Simon, Chief Financial Officer Approved by: Tom Harmening, City Manager Meeting: City council Meeting date: June 17, 2019 Minutes: 3a Unofficial minutes Joint city council/ school board meeting St. Louis Park, Minnesota April 16, 2019 Call to Order Mayor pro tem Anne Mavity called the meeting to order at 5:50 p.m. Councilmembers present: Mayor pro tem Anne Mavity, Councilmembers Rachel Harris, Steve Hallfin, Margaret Rog and Tim Brausen. School board members present: Board Chair (Nancy Gores), Vice Chair (Mary Tomback), Treasurer (Ken Morrison), Directors Anne Casey, Joe Tatalovich and Karen Waters. City staff present: City Manager (Tom Harmening), Operations and Recreation Director (Cindy Walsh), Deputy Police Chief (Chad Kraayenbrink), Management Assistant (Maria Carrillo Perez), Community Development Director (Karen Barton) and Environment and Sustainability Coordinator (Shannon Pinc), Communications and Marketing Manager (Jacque Larson). School district staff present: Superintendent (Astein Osei), Communications Director (Sara Thompson), Curriculum and Instruction Director (Patrick Duffy), Community Education Director (Lisa Greene), Human Services Director (Richard Kreyer) and Facilities Manager (Tom Bravo). City and school board discussion was as follows: School start-end times discussion led by Sara Thompson (school district) • In what ways should the city and school district collaborate regarding school start times? Climate Action Plan discussion led by Shannon Pinc (city) and Tom Bravo (school district) • What is the status of each organizations actions relative to the environment, climate action planning and implementation, etc.? • What opportunities exist for continued collaboration between the city and school district? Race, Equity and Inclusion discussion led by Maria Carrillo Perez (city) and Richard Kreyer (school district) • What is the status of each organizations activities or initiatives? • What opportunities exist for the city and school district to collaborate? Q & A regarding written reports: Southwest Light Rail Transit (city), WHNC curriculum update (city), status of modifications to agreements between city and school district re: facilities – (city/school district), and Housing initiatives (city). Dates for next joint meeting City council meeting of June 17, 2019 (Item No. 3a) Page 2 Title: Joint city council/school board meeting minutes of April 16, 2019 • Suggested date to consider: Tuesday meeting in October 9:00 p.m. Adjourn ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Jake Spano, Mayor Meeting: City council Meeting date: June 17, 2019 Minutes: 3b Unofficial minutes City council meeting St. Louis Park, Minnesota May 6, 2019 1. Call to order Mayor Spano called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Rachel Harris, Anne Mavity, Thom Miller, and Margaret Rog. Councilmembers absent: Steve Hallfin Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Mattick), Inspections Director (Mr. Hoffman), Fire Chief Koering, Engineering Director (Ms. Heiser), Senior Engineering Project Manager (Mr. Sullivan), Transportation Engineer (Mr. Manibog), Management Assistant (Ms. Carillo-Perez), and Recording Secretary (Ms. Pappas). Guests: Boy Scout Troop 307; CERT representatives; St. Louis Park Parktacular representatives 1a. Pledge of allegiance 1b. Roll call 2. Presentations 2a. Bike Month Proclamation Mayor Spano read the proclamation stating that biking improves health and well-being, and that May 2019 will be bike month in St. Louis Park. He added that on May 17th it is bike to work day in the city as well. 2b. Building safety month Mayor Spano read the proclamation which ensure city buildings are well constructed and maintained as a vital part of remaining an inviting, safe and vibrant community. Mayor Spano also pointed out that Home Depot is the sponsor of the International Code Conference this year and is promoting building safety month. Local stores are inviting city code officials to partner in offering education about construction standards and materials. Mr. Hoffman added the city will host an open house on May 21 from 5:30 – 7:30 p.m. for community members to talk with inspectors about home remodeling projects and construction. City council meeting of June 17, 2019 (Item No. 3b) Page 2 Title: City council meeting minutes of May 6, 2019 2c. St. Louis Park Parktacular Ambassador introduction, recap and retirement recognition Mayor Spano thanked the group for their travels around the region and for representing St. Louis Park at parades and events throughout 2018-19. Marla Destache, co-director of the ambassador program introduced the senior and junior representatives to the city council. The council received dinner invitations to Parktacular which will be held on June 12. Ms. Destache also introduced the co-directors of the Parktacular event who will be retiring after this year. Mayor Spano thanked everyone for their hard work over the years. Councilmember Brausen also thanked the group, adding the council and city are honored to have them represent St. Louis Park around the state, while sharing what a great place St. Louis Park is to live. Councilmember Rog acknowledged the group, also offering her gratitude and respect to Ms. McKenna for her constant smile and complete composure, over the years, which has been so impressive and comforting, when seeing her in the community. She thanked Ms. McKenna for being such an excellent role model throughout the years. 2d. Recognition of Boy Scout Troop 307 and CERT for service to community Chief Koering thanked Boy Scout Troop #307 and CERT for their recent community service project of clearing snow around hydrants. He stated the scout troop cleared 30 hydrants, adding that the city has over 70 hydrant heroes who adopt a hydrant and clean and take care of it. Chief Koering added the community emergency response team (CERT) also organized an event to clear out hydrants, and thanked them for their work. He stated keeping hydrants clear is important for home and business safety throughout the city, and he thanked council for their support. 2e. Recognition of donations Mayor Spano thanked the following groups for their recent donations: • The National Association of Government Web Professionals for up to $2,500 for travel expenses for IT Manager Jason Huber to attend the 2019 National Association of Government professionals National Board Retreat in Salt Lake City, UT. • Sara Mielke and Ryan Johnson for $2,200 for a memorial bench honoring Lisa Johnson. • Arlyce and John Wiersma, Ellen Hopkins, Floyd Olson, Bruce and Julie Ekholm, David and Maureen Ewald, Benton and Susan Ford, Lavonne Blount, Robert and Lori Anderson, Raymond and Colleen Langren, Allen and Shirley City council meeting of June 17, 2019 (Item No. 3b) Page 3 Title: City council meeting minutes of May 6, 2019 Carlson, and Bill and Gail Ewald for $2,200 for a memorial bench honoring Joe and Arlyce Wiersma. 3. Approval of minutes 3a. LBAE minutes of April 8, 2019 It was moved by Councilmember Rog, seconded by Councilmember Brausen to approve the April 8, 2019 LBAE minutes as presented. The motion passed 6-0 (Councilmember Hallfin absent). 3b. City council meeting minutes of April 1, 2019 It was moved by Councilmember Rog, seconded by Councilmember Harris, to approve the April 1, 2019 city council meeting minutes as presented. The motion passed 6-0 (Councilmember Hallfin absent). 3c. Study session minutes of April 8, 2019 Councilmember Brausen stated on page 2, item # 2, the Community Center discussion should read: He stated the costs were substantial and he would not support building a large community center. However, he is interested in having a conversation about a community facility, ideally in Ward 3, which would have additional meeting rooms. There is a constant need in our city (plus health and wellness programs) but not a huge facility. He stated he also supports continuing to explore a joint facility with STEP. Councilmember Brausen also noted on page 9, item #5, should read: He also advocated that staff in future do a Connect the Park notice and include the following language at the top of the letter in bold, and highlighted in yellow, “these plans propose changes that may impact you”. It was moved by Councilmember Miller, seconded by Councilmember Harris, to approve the April 8, 2019 study session minutes as amended. The motion passed 6-0 (Councilmember Hallfin absent). 3d. City Council meeting minutes of April 15, 2019 Councilmember Brausen noted on page 9 regarding grants, it should read: “…. funds to be used for community building…” It was moved by Councilmember Brausen seconded by Councilmember Rog, to approve the April 15, 2019 city council meeting minutes as amended. The motion passed 6-0 (Councilmember Hallfin absent). City council meeting of June 17, 2019 (Item No. 3b) Page 4 Title: City council meeting minutes of May 6, 2019 3e. Study session minutes of April 22, 2019 Councilmember Rog noted a change on page 2, it should read: “…contrary to the developer’s comments where renters live are neighborhoods too.” Councilmember Mavity noted at the bottom of page 2, it should read: “…in other properties instead of the others being considered at that moment.” She added she does want affordable housing in all the other properties as well. It was moved by Councilmember Brausen, seconded by Councilmember Miller to approve the April 22, 2019 study session minutes as amended. The motion passed 6-0 (Councilmember Hallfin absent). 4. Approval of agenda and items on consent calendar 4a. Accept for filing city disbursement claims for the period of March 23, through April 26, 2019. 4b. Approve second reading and adopt Ordinance No. 2558-19 revising lighting standards for outdoor parking, and approve the summary ordinance for publication. 4c. Approve second reading and adopt Ordinance No. 2559-19 assigning the individuals serving on the planning commission to the board of zoning appeals (BOZA), and approve the summary ordinance for publication. 4d. Approve Resolution No. 19-051 authorizing fund equity transfers. 4e. Approve a temporary on-sale intoxicating liquor license for JCI Hopkins at the West End Festival Site, 5376 Gamble Drive, for the City Pages Beer Festival to be held June 1, 2019. 4f. Adopt Resolution No. 19-052 approving acceptance of a monetary donation from the National Association of Government Web Professionals in an amount not to exceed $2,500 for all related expenses for Jason Huber, Information Technology Manager, to attend the 2019 National Association of Government Web Professionals National Board Retreat in Salt Lake City, Utah. 4g. Approve an estoppel certificate for 1511 Utica Ave. S. 4h. Approve Amendment No. 1, between the city and Sprint Spectrum Realty Company LLC, for additional communication equipment being installed on the city’s water tower at 2541 Nevada Avenue South. 4i. Approve a parking agreement with Sidal Crossroads Company, LLC (Louisiana Oaks Apartments) to lease 20 parking spaces to accommodate overnight guests of Louisiana Oaks apartment complex provided a permit is displayed on the vehicle. 4j. Adopt Resolution No. 19-053 approving acceptance of a $2,200 donation from Sara Mielke and Ryan Johnson for the purchase and installation of a memorial bench on city property, along the paved trail by Minnehaha Creek, honoring Lisa Johnson. 4k. Adopt Resolution No. 19-054 approving acceptance of the following donations for a memorial bench at Westwood Hills Nature Center in honor of Joe and Alyce City council meeting of June 17, 2019 (Item No. 3b) Page 5 Title: City council meeting minutes of May 6, 2019 Wiersma, dedicated, long-time volunteers: Arlyce Wiersma ($1,575), John Wiersma ($105), Ellen Hopkins ($50), Floyd Olson ($50), Bruce and Julie Ekholm ($100), David and Maureen Ewald ($100), Benton and Susan Ford ($25), Lavonne Blount ($25), Robert and Lori Anderson ($20), Raymond and Colleen Langren ($25), Allen and Shirley Carlson ($25), and Bill and Gail Ewald ($100) for a total of $2,200. 4l. Adopt Resolution No. 19-055 to recognize Traffic Field Supervisor Rick Kiefer for more than 29 years of service. 4m. Approve for filing Parks and recreation advisory commission minutes of March 20, 2019. It was moved by Councilmember Mavity seconded by Councilmember Miller to approve the agenda as presented and items listed on the consent calendar; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Councilmember Hallfin absent). 5. Boards and commissions - None 6. Public hearings 6a. The Block Restaurant, LLC dba The Block – on-sale intoxicating and on-sale Sunday liquor license Ms. Carrillo Perez presented the staff report. Mayor Spano opened the public hearing. No speakers were present. Mayor Spano closed the public hearing. Councilmember Harris stated folks are eager for this restaurant to open, and asked about the timeline. Owners Luke Durheim and David Benowitz stated they are excited about the project and will be starting construction soon, with an opening scheduled for the late September. Councilmember Harris thanked the owners for their engagement with the neighborhood and the focus groups held and asked them what inspired them to do this. Mr. Durheim stated it is important for them to provide a product that customers will want vs. what we want, and this has helped their success over the last 15 years in other projects. He added they want to give residents what they want, and will be more successful because of this. Mr. Benowitz added folks want healthier, cleaner food options, and they want to be welcoming to all people and their dietary needs and restrictions. City council meeting of June 17, 2019 (Item No. 3b) Page 6 Title: City council meeting minutes of May 6, 2019 Councilmember Miller thanked them also, especially since the city is working to invigorate the Walker Lake district. He noted they will be an anchor in the area, thanked them for taking a risk, and driving traffic to this area. Councilmember Rog added she is also excited and happy the owners chose this location and asked if the owners had heard any concerns from folks about obtaining a liquor license or parking issues. The owners stated they had not heard anything in their focus groups about this, and noted that staff is addressing parking issues. The owners added they are confident about parking in the area, and will instruct their staff to park offsite. It was moved by Councilmember Harris, seconded by Councilmember Brausen, to approve application from The Block Restaurant, LLC dba The Block for an on-sale intoxicating and on-sale Sunday liquor license for the premises located at 7007 Walker Street. The motion passed 6-0 (Councilmember Hallfin absent). 7. Requests, petitions, and communications from the public – None 8. Resolutions, ordinances, motions and discussion items 8a. Dakota bikeway and bridge project No. 4019-2000. Resolution No. 19-056. Mr. Manibog presented the staff report. Councilmember Brausen stated folks in the 4th Ward have asked him about the proposal of the trail and bridge, since he has been on the council since 2011. He added folks are very excited to see this project moving forward and believe it will be a crucial link to establishing north/south routes across the city. He added he appreciates that staff will wait on the rest of the project in order to get more community input, but is hopeful the full project will be completed. Councilmember Rog added she too supports this, and appreciates the hard work of staff to find a design that works well for most folks as well as the public engagement on this project. She noted the project is expensive, but added that residents in her ward are very supportive of the north/south connection, and of kids attending Peter Hobart being able to walk and bike to school. She hopes the costs will be lower in the end and encouraged staff to work on that, adding; however, this must be done now. She stated the bridge has potential to be a community landmark, which could involve artists and design elements, and could make this area a destination and point of pride for the community. Councilmember Harris stated this project is a key piece in promoting more active uses of parks, biking, and walking. She added this will allow for alternatives to taking the bus to school and will add access to safer connections and routes. She noted the approval tonight will be up to Minnetonka Boulevard, and the conversation will continue later City council meeting of June 17, 2019 (Item No. 3b) Page 7 Title: City council meeting minutes of May 6, 2019 this summer about the rest of the route. She thanked staff for collaborating and editing the timeline of the project. It was moved by Councilmember Brausen, seconded by Councilmember Rog, to adopt Resolution No. 19-056, accepting the project report, establishing Improvement Project No. 4019-2000, approving the staff recommended layout for the Dakota/Edgewood corridor from Cedar Lake Road to Minnetonka Boulevard. The motion passed 5-1 (Councilmember Miller opposed and Councilmember Hallfin absent). 9. Communications Councilmember Brausen noted item 4d on the consent agenda tonight was a routine item authorizing the transfer of excess balances when cash on hand is exceeded. He added the redirection of funds adds $50,000 to the general budget for unanticipated expenses. He reiterated this can be used for the city to sign up for the 100% renewable windsource program, to power city facilities. He added although this is more expensive, he feels it is consistent with the city’s Climate Action Plan, addressing greenhouse emissions, and the operations of city facilities. He thanked the ESC for addressing this during this year’s budget cycle, noting it is another step that addresses climate change sooner rather than later. Councilmember Rog stated the Walker Lake public meeting will take place on May 9 at 6:30 p.m. at Perspectives. She noted the SLP Nest will have upcoming events on Wednesday, May 8, and Wednesday, May 15, and referred folks to the website for more details. She noted also that former councilmember Sue Sanger will present Workplace Stories on May 9 at 6:30 p.m. at the Library, and added the Children First Ice Cream Social will be held on May 15 at The Roc, and the SLP Unity Sing will be held at Wat Prom in Birchwood on May 20 at 6:30 p.m. Councilmember Harris stated an open house on zoning changes in St. Louis Park will take place on May 8 at City Hall at 6:30 p.m., adding there is a map on the city website under the development section. Councilmember Mavity noted on May 8 at 6 p.m., there is a meeting at the MSC regarding different components of city bike trails in the Minnekada Vista area. 10. Adjournment The meeting adjourned at 8:30 p.m. ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Jake Spano, Mayor Meeting: City council Meeting date: June 17, 2019 Minutes: 3c Unofficial minutes City council study session St. Louis Park, Minnesota May 13, 2019 The meeting convened at 6:10 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Rachel Harris, Anne Mavity, Thom Miller, and Margaret Rog. Staff present: City Manager (Mr. Harmening), Chief Financial Officer (Mr. Simon), Director of Inspections (Mr. Hoffman), Police Chief Harcey, Fire Chief Koering, CIO (Mr. Pires), Director of Operations and Recreation (Ms. Walsh), Engineering Director (Ms. Heiser), Deputy City Manager/Human Resources Director (Ms. Deno), Director of Community Development (Ms. Barton), Finance staff (Mr. Ebensteiner), (Ms. Mauseth), (Ms. Monson), (Ms. Simonsen), Management Assistant (Ms. Carrillo Perez), Communications Manager (Ms. Smith), and Recording Secretary (Ms. Pappas). Guest: Mike Sable, Facilitator with The Work of Leadership 1. 2020 Budget/Maintaining Financial Sustainability Mr. Harmening stated the process will be done a bit differently this year. He stated the council will use a systems thinking approach and how they influence each other, and also address financial needs more strategically, while considering operations, programs, policies and opportunities for St. Louis Park. He explained the discussion around the 2020 budget this year will include the use of a facilitator, Mike Sable of The Work of Leadership. Mr. Harmening stated the community is in strong financial health at this time, and the city has the luxury of doing system planning at this time. Mr. Sable gave his background, noting he has extensive history in city government and this type of work in cities. He is looking to help the council clarify budget considerations and a path forward, along with operational risks of the city, and discussing concerns of both staff and council. He stated he hopes questions can be answered, and clarity will be found during the discussion this evening. Mr. Harmening reviewed policy considerations including the following, noting the first item has the highest priority: • Does council have sufficient information to provide parameters to staff for 2020 budget development? • Does council have sufficient information to provide direction on capital and debt service plans for 2020 and future years? • Are there shifts that need to be made for continued fiscal health and sustainability while taking into consideration strategic priorities and overall service delivery for the city’s system? City council meeting of June 17, 2019 (Item No. 3c) Page 2 Title: Study session minutes of May 13, 2019 • What additional information would the council wish to review during the upcoming budget and capital processes? Mr. Harmening noted the systems within the city, adding it is a natural location which is to its advantage. He added there are 2,000 businesses within St. Louis Park, with over 50,000 employed in the city. He stated 10’s of thousands pass through the city each day and more will in the near future with the SWLRT, which has an impact on the city’s system. The value of the property within the city is $8.7 billion. There are 24,000 housing units in the city and the population trend is growing older and becoming more diverse. Mr. Harmening stated the city’s buildings and services total worth is $300 million, and the community is a very high-touch place to live. Mr. Harmening added the community values include, that it is responsive, collaborative, and quality-oriented. The city’s core services are strong, which allow it to be able to be progressing in other areas. Mr. Simon stated St. Louis Park is a full-service city with over $260 million assets to manage and replace. It is a AAA rated city, one of 26 in Minnesota, with a strong economy, strong budgetary flexibility and liquidity, and strong budget performance and debt profile. It is only one of a few cities that look 10 years out with a capital improvement plan which is updated annually. Mr. Simon reviewed the tax levy percentage changes since 2010, noting incremental changes vs. larger impactful changes, adding the 10-year average is 4.5%. He noted the 2019 tax levy breakout, with 81% in the general fund, 3% in park improvement, 10% debt service, 5% Capital replacement fund, and 1% employee administrative fund. Mr. Simon also reviewed the city’s general fund revenues and expenditures. Mr. Simon noted fluctuations as well, including items such as the climate action plan and wind source program costs adjusted for the 2020 budget. He also pointed out infrastructure reinvestment projects including state-aid road, pavement management program, watermain/sewer/storm, Connect the Park, fleet and building repairs, and park improvements. GO bonding estimates include SWLRT, Connect the Park, and additional sidewalk segment projects. Mr. Sable began the discussion with council. Councilmember Harris asked how council should gauge debt capacity vs. residential appetite for tax increases. Mr. Sable stated that local governments must do this every year and the good news in St. Louis Park is the council has worked through this before and has good skill at this. Mr. Harmening added this is more of a political question, where elections play a role. He added the council can also influence some of this by making decisions to not do certain projects and then mitigate, and be more strategic on certain items, while making choices. Councilmember Mavity asked about the undesignated fund used in the past for budgeting unplanned items that may come up during the year, and how this fund works. Mr. Harmening noted this year’s undesignated funds were used for racial equity projects, climate action, and ranked choice voting. In 2020, these three items will have their own line item. City council meeting of June 17, 2019 (Item No. 3c) Page 3 Title: Study session minutes of May 13, 2019 Councilmember Rog stated she does not see a difference between the city’s core services and strategic priorities, adding these items intermingle. She noted she would like to look at budgeting on operational assumptions. Mayor Spano asked if staff looks at including costs of maintenance and repairs on projects, as part of the total cost, or if this is added in after the fact. Mr. Harmening stated this has been done, but not consistently, pointing out Connect the Park as a project that typically will have more costs added on, due to clearing snow off sidewalks, or plowing. He stated staff will do more planning on this moving forward. Councilmember Hallfin asked how the council should budget for snowplowing. Mr. Simon stated staff looks at trends over the last 3 years and then estimates. Councilmember Miller stated he has been a critic on how budgeting is done in the city, adding when looking at it from a business perspective, he would start with a tax levy percentage year over year, then break it down year by year, depending on the budget and what the council is committed to doing. Mr. Sable noted that service reductions will be felt by residents, and would be a concern. Councilmember Brausen stated priorities should be determined, then budgeted. He noted it is hard to analyze return on investments, adding he would like to see the details and breakdown on fire and police budgets and how that is reflected in the city’s strategic priorities, in order to better understand. Councilmember Rog added she feels conflicted, especially when she hears many residents say they are concerned about taxes, but then also say that they love what St. Louis Park is doing. Councilmember Mavity added as the council works on budgeting, they need to involve the larger community in the process, so they are not being swayed one way or another by a few loud voices. Mayor Spano added he is not hearing a large groundswell of folks saying the city is on the wrong track, but conversations with the community are important. Councilmember Hallfin stated having been in budgeting process for profits and non-profits, this discussion is reasonable, but noted the city’s tax levy has been relatively stable the last few years. He stated the council cannot look at this like a business, and must look at the history of budgeting and taxes for the city. He added the city is doing right by the citizens of St. Louis Park by providing the services they are asking for, while keeping tax rates relatively stable over time. Councilmember Miller added he does not want to suggest the city run government like a business; however, there is a budgetary process, and there must be a way to free up money for strategic spending, such as renewable energy projects. He added he would like to see the city carbon neutral by 2040 by spending a certain amount over the years, and get this in as a line item now. City council meeting of June 17, 2019 (Item No. 3c) Page 4 Title: Study session minutes of May 13, 2019 Councilmember Rog stated the council needs to look at other opportunities for funding besides the levy. Mayor Spano added the council will need to look at what are the most impactful projects to spend money on, and how comfortable it would be for the city to hand out money to businesses for climate action work. Councilmember Brausen asked how long the city is committed to Connect the Park. Mr. Harmening stated it is a 10 year commitment and the city is in the 5th year of construction. The council came to a consensus that the tax levy should fall somewhere between 3-6% for the 2020 budget. However, Mayor Spano noted with the climate action plan, the rate could be higher. Councilmember Mavity stated she feels like the city is absolutely on track, adding she does not support a 3% tax levy, unless some items are not funded. She stated this rate is not realistic, and she is not looking for major disruptions. She added the council needs to be strategic, and not do across-the-board cuts. Councilmember Mavity added she has not heard an outcry from the community to stop doing something, as it relates to the climate action plan, she would be interested in hearing proposals for upfront one-time investments in equipment or strategy that are innovative and cost-saving, in order to get to long-term stability. Mr. Harmening thanked the council for their comments, stating it is important for staff to know where the council is on this, in order to know the work staff will have to do. He added if the council is looking for a dramatic shift, staff will need to know this sooner rather than later. Councilmember Rog stated she would like to see the budget process done differently this year, with more detail, and engagement with the public, on a more interactive and dynamic level. She added she would like to see staff provide more engaging communication vs. only explaining. Mayor Spano added he would like to see staff provide open houses for residents on the budget process, perhaps at the Rec Center. He would like to see staff walk through the budget process, and explain that and TIF and how it all works, as it is difficult for folks to understand. Councilmember Mavity added it will be important for the city to frame this correctly, while explaining how home values have increased, and corrected. Councilmember Harris asked how the city monetizes strategic goals so as to know how much to spend in order to achieve the objective, especially related to affordable housing, climate action, and race equity. Councilmember Rog added she would like to have staff look at outcome-based budgeting also, and present creative ways to achieve goals and costs. She added it is time to reexamine various projects within the city, such as Connect the Park, and look at the ROI, especially as costs are going up. She added there may be places where the council can scrutinize items better, and look for places to save. City council meeting of June 17, 2019 (Item No. 3c) Page 5 Title: Study session minutes of May 13, 2019 Councilmember Brausen stated, however, the city’s system is working well, and the council just examined pavement management in depth last year. He added he is concerned about micromanagement, and trusts staff to look for places to save, and bring that information back to council. Councilmember Mavity added council has laid out strategic priorities and staff built a budget on those items, including changes in climate action. She stated council needs to give staff boundaries, but she does not want staff to waste time on this. She noted many of the city’s strategic priorities are how we work and not just outcomes. Mayor Spano stated the city should take a break next year on Connect the Park, and review, to see if it is working. He added there are new priorities now, and the city will need to consider recalibrating to move forward. Councilmember Brausen noted he doesn’t mind getting community feedback on Connect the Park, but is not in favor of pausing it next year. Councilmember Hallfin added he appreciated the discussion this evening, but also did not think it was necessary. Mr. Harmening stated the council will have another discussion with staff on the budget process in June, and staff will look at additional ways to gather more public input and engagement into the process, and build on that year after year. Mr. Sable noted the dialogue did provide more clarity for staff, which will help them be better at their work. 2. Future study session agenda planning – June, 2019 Councilmember Rog suggested if several items are on the study session agenda, one issue could be discussed as a deep dive. Councilmember Brausen stated the topic of Walker Lake comes up all the time, noting council could do one deep dive on this topic, and then be done. Mayor Spano stated he would like a deep dive discussion on the former Sam’s Club site. Mr. Harmening asked about changing the start time for meetings to 6:30 p.m. or 7 p.m. Councilmember Mavity suggested removing the Pledge of Allegiance from the agenda, in order to save time. Mayor Spano stated this will be discussed at a future study session. The meeting adjourned at 9:10 p.m. Written Reports provided and documented for recording purposes only: City council meeting of June 17, 2019 (Item No. 3c) Page 6 Title: Study session minutes of May 13, 2019 3. Mixed –use zoning district density bonus 4. PLACE Via Sol and Via Luna projects update 5. 2018 Housing Activity Report ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Jake Spano, Mayor Meeting: City council Meeting date: June 17, 2019 Minutes: 3d Unofficial minutes City council meeting St. Louis Park, Minnesota May 20, 2019 1. Call to order Mayor Spano called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Rachel Harris, Anne Mavity, and Thom Miller. Councilmembers absent: Margaret Rog Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Mattick), Deputy City Manager/Human Resources Director (Ms. Deno), Director of Community Development (Ms. Barton), Management Assistant (Ms. Carrillo Perez), Solid Waste Specialist (Ms. Barker), Public Works Services Manager (Mr. Merkley), Water Resources Manager (Mr. Francis), Engineering Director (Ms. Heiser), Planner (Ms. Monson), Planning and Zoning Supervisor (Mr. Walther), and Recording Secretary (Ms. Pappas). Guests: Sherrill Mozey; Family members of police officers; Joan Gainsley; SLP high school students. 1a. Pledge of allegiance 1b. Roll call 2. Presentations 2a. Proclamation honoring Betty Engebretson and declaring “Betty Engebretson Day” Mayor Spano read the proclamation and presented it to Sherrill Mozey in honor of Betty Engebretson for her many years of living in the community. Ms. Engebretson will turn 100 years old on May 25, and will be honored and recognized by the community and city council on that day. 2b. Honoring James Gainsley for 40 years of service to the City of St. Louis Park and BOZA Mayor Spano thanked Mr. Gainsley posthumously for his 40 years of service to the city and the Board of Zoning Appeals. His wife and daughter thanked the council for their recognition, adding Jim loved the work he did for the city, and was happy to give back to the community. His family was presented with a plaque. Councilmember Brausen stated he had met Mr. Gainsley and appreciated his work. City council meeting of June 17, 2019 (Item No. 3d) Page 2 Title: City council meeting minutes of May 20, 2019 Councilmember Hallfin added that Mr. Gainsley had been chair of Camp Tiko for many years, and thanked him for his service to the much broader community, adding he will be missed. 2c. Recognition of 2019 police officer of the year and award of valor recipients Police Chief Harcey presented the 2018 police officer of the year award and the 2018 award of valor to police officers. Officer Matt Blomsness was presented with the Robert Linelle officer of the year award for his demonstrated commitment to the police force and the city. Officer Blomsness is a member of the SWAT team and a patrol training officer. Chief Harcey stated Officer Blomsness’ integrity, fairness, and positive attitude, are an example to all St. Louis Park officers. Chief Harcey also presented Officer Jacob Erickson the award of valor, noting this award is given to an officer or citizen who, conscious of danger, intelligently, and in the furtherance of public safety, distinguishes himself or herself by outstanding performance of an act of gallantry and valor at imminent personal hazard to live, above and beyond the call of duty or routine humanity. Chief Harcey also noted Sgt. Barnes, Officers Heffernan, Nordrum, Diersen and dispatchers Shoen and Dyals also received department commendations for their involvement in this same incident. Councilmember Harris thanked the officers for their courage and commitment to the city, adding it is truly appreciated and the city values them. Councilmember Brausen agreed, adding he is proud of the officer’s work, and the fact that they both stated they love their jobs. Mayor Spano stated the officer’s use of good judgement to de-escalate a situation is a great reflection of the city’s police force and he appreciates their work very much. 3. Approval of minutes 3a. LBAE minutes of April 22, 2019 It was moved by Councilmember Mavity, seconded by Councilmember Hallfin, to approve the LBAE minutes of April 22, 2019 as presented. The motion passed 6-0 (Councilmember Rog absent). 4. Approval of agenda and items on consent calendar 4a. Designate Telemetry & Process Controls, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $1,265,955.00 for the 2019 Supervisory Control and Data Acquisition (SCADA) System Replacement Project No. 5318-5006. City council meeting of June 17, 2019 (Item No. 3d) Page 3 Title: City council meeting minutes of May 20, 2019 4b. Moved to 8d. 4c. Approve an agreement between the City of St. Louis Park and Xcel Energy for 3- year subscriptions for all city managed electricity accounts not covered by Renewable-Connect. 4d. Adopt Resolution No. 19-057 approving acceptance of a product donation from Jonny Pops (estimated value of $300) to be used in conjunction with the mock election to be held at the Parktacular Expo on June 15, 2019. 4e. Adopt Resolution No. 19-058 amending Resolution No. 19-006 authorizing the special assessment for the repair of the sewer service line at 4124 Yosemite Avenue South, St. Louis Park, MN P.I.D. 21-117-21-31-0091 by correcting the interest rate for the proposed special assessment 4f. Adopt Resolution No. 19-059 authorizing a minor amendment to the Knollwood Village special permit to modify the mall building elevations. 4g. Designate G.L. Contracting, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $379,932.30 for the 2019 Alley Reconstruction Project No. 4019-1500. Councilmember Brausen requested that Consent Calendar item 4b be removed and placed on the Regular Agenda to 8d. It was moved by Councilmember Miller, seconded by Councilmember Harris, to approve the agenda and items listed on the consent calendar as amended to move consent calendar item 4b to the regular agenda as item 8d; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Councilmember Rog absent). 5. Boards and commissions 5a. Appointment of citizen representatives to boards and commissions Ms. Carrillo Perez noted there were 57 applications this year and 17 new commission members chosen. She stated for those applicants not chosen this year, staff will maintain their applications for one year and if new members are needed for any of the commissions throughout the year, staff will reach out to these folks. Councilmember Brausen stated the process for selection of commissioners is cumbersome, and while not always perfect, the council is doing their best in the selection process. He added he would like to review this process during a future study session, noting the Park and Rec Commission has an even number of commissioners, when there should be an odd number. Councilmember Mavity added with 57 applicants for 17 positions there is clearly a wealth of talent in St. Louis Park, and compassion by those who wish to serve. She noted there are many ways to serve in the community, and added for those not selected, please look to contribute in other ways, such as through city organizations, non-profits, or other groups within St. Louis Park. City council meeting of June 17, 2019 (Item No. 3d) Page 4 Title: City council meeting minutes of May 20, 2019 Councilmember Miller stated staff and council have committed themselves to racial equity in this process as well, and he is appreciative of the process being used, which has helped create a more diverse makeup of commissioners this year. It was moved by Councilmember Brausen, seconded by Councilmember Miller, to appoint citizen representatives to the boards and commissions as listed in exhibit A. The motion passed 6-0 (Councilmember Rog absent). 6. Public hearings 6a. Annual Storm Water Pollution Prevention Program public meeting. Mr. Francis stated there is no recommended action at this time. This item serves to meet the city’s Municipal Separate Storm Sewer System (MS4) permit and Storm Water Pollution Prevention Program (SWPPP) requirements. Mr. Francis updated the council on the city’s storm sewer system, as well as initiatives in the city including the rain garden program, adopt a drain, and the partnership with Clean Water MN and Metro Blooms. He stated an open house and educational programs will be held for the public, especially related to the rain garden program. Mr. Francis added the city has been awarded Blue Star City status, which is similar to the Green Steps Cities program, where the city is assessed and rated on their water systems and initiatives. Councilmember Harris asked how many interactions staff has had with residents regarding water. Mr. Francis stated he has interacted with several hundred residents over the past 5 years. Mayor Spano asked for public comment. Barb Patterson, 4326 Wooddale Avenue thanked Mr. Francis for transparency and the open sessions and indicated she is looking forward to future programs and education from staff. Betty Danielson, safety and environment manager at Nordicware, stated she would like staff to do more outreach to businesses, and possibly provide incentives for business to help rainwater management. She is a current master water steward in training and has been in communication with staff on this and how they are assessed for stormwater management by the city. Mayor Spano closed public comments. Councilmember Mavity stated her regular walk route includes Bass Lake and she is very encouraged about a more structured process to learn about stormwater management. City council meeting of June 17, 2019 (Item No. 3d) Page 5 Title: City council meeting minutes of May 20, 2019 She noted links to documents on the city web site, and asked if there will be updates to the stormwater pond inventory information from 2011, and stormwater prevention plan information from 2008. Mr. Heiser stated the city is currently working on the comprehensive water surface model plan, which is a more sophisticated way to talk about that inventory, and allows for looking at different loadings for different watersheds, in order to determine potential flooding area. She noted this is updated every 10 years. Councilmember Brausen stated Minnesota is blessed to have clean water and added it cannot be taken for granted. He noted all residents need to do their own part, and education from staff is important so folks do not pollute ground water. He thanked staff for their work and asked them to be more intentional about this. He added he is a giant proponent of rain gardens and hopes all that are interested are able to create rain gardens in their own yards. Councilmember Brausen encouraged the city to incorporate rain gardens as part of street and sidewalk construction, adding he would like to see cost estimates on this, and on the outcomes of the hundreds of rain barrels sold to residents. He thanked all for their work on this initiative. 7. Requests, petitions, and communications from the public – None 8. Resolutions, ordinances, motions and discussion items 8a. First reading of ordinance related to zero waste packaging Ms. Barker presented the staff report. She noted four areas where staff is requesting to amend the Environment and Public Health (Chapter 12) code in attempt to decrease waste, reduce confusion for businesses and residents, and minimize contamination in organics and recycling. The four areas of concern include: • Packaging – lids and cups – compostable cups and lids required, with labeling required for compostable cups • Non-packaging items – plastic utensils, straws • Collection – change to organics and/or recycling where host organization must provide containers • Removal of specific fines and include fees in city’s annual fee schedule Councilmember Miller stated he has concerns about smaller business who order cups online and are not in control of branding and printing of their cups. Ms. Barker stated some of the unbranded cups actually have the composting language on them, which is helpful. She noted staff is looking more at larger companies who print their own cups and are responsible for including the labeling on their cups. Councilmember Miller asked if the straw dispenser would be on the counter or behind it. Ms. Barker stated it could still be on the counter, in front of the house and would still meet the intent of the ordinance. City council meeting of June 17, 2019 (Item No. 3d) Page 6 Title: City council meeting minutes of May 20, 2019 Councilmember Mavity asked how common the composting text is on cups in Minnesota and across the United States. Ms. Barker stated the MN Composting Council is working on this, and the understanding is that the governor is supportive of this as well. She added this issue is recognized and is a concern. Councilmember Mavity told staff this might be included in the city’s legislative topics and St. Louis Park might drive this initiative for the state. Councilmember Mavity asked about plastic utensils vs. compostable and what Minneapolis is doing about this. She also asked if what is being proposed tonight is in alignment with Minneapolis and if any other cities are doing this same thing. Ms. Barker stated that the existing ordinance is in alignment with Minneapolis, but most of the changes would be above and beyond what Minneapolis currently has. Councilmember Harris thanked staff for their clarification and asked what sort of feedback they have heard during outreach with residents and businesses. Ms. Barker stated they have only heard back from a handful of folks, and primarily about compostable lid functionality with hot applications. Councilmember Harris noted she supports clear labeling and these clarifications will help consumers streamline better, noting it is exciting to be out in front on these initiatives. Councilmember Brausen asked if the city licenses food trucks. Ms. Barker stated no, adding the city has authority with this ordinance though, since food trucks are operating in the community. Councilmember Brausen added the zero waste packaging ordinance is positive and there have not been many complaints since the ordinance passed. He stated staff continues to review and broaden this each year, and he wholeheartedly supports this. Michelle Longest, Showplace Icon Theater, 1625 West End, stated she has been emailing with staff about cups, and while they totally support environmental stewardship, they do use different cups for their various beverages, both hot and cold. She stated while they are not all labeled correctly, they do use environmentally friendly products including Karat Earth, Environ, and others for their cup selection. She stated they do have concerns about their specialty lids, which are not all available in PLA, adding they had to go back to using recyclable lids for some of their cups. She asked for a process on exemptions, and added there was no language in the new ordinance about landlords in charge of garbage collection, and she has concerns about this as well. Ms. Barker stated the process for exemptions will be conducted as in the past for the business community as a whole and will be presented to council in the fall, reviewed and then approved. She added they will go into effect the next calendar year. City council meeting of June 17, 2019 (Item No. 3d) Page 7 Title: City council meeting minutes of May 20, 2019 Mayor Spano suggested Ms. Longest stay in touch with staff related to the exemptions process. Mayor Spano asked staff when they envision two bins, one for composting and one for recycling. Ms. Barker stated there are some examples right now, but added it is a significant overhaul. It is a conversation and discussion that could happen, but would need a lot more involvement from the business community, as it would be a significant change. One big challenge is pre-packaged food, which restaurants do not have control over. Mr. Merkley added the changes being made are moving the city in this direction – incrementally. Councilmember Brausen encouraged St. Louis Park’s neighbors, such as Plymouth and Hopkins, to start doing more with recycling or composting in their businesses. It was moved by Councilmember Miller, seconded by Councilmember Brausen, to approve the first reading of an ordinance amending the Zero Waste Packaging Ordinance, and to set the second reading for June 17, 2019. The motion passed 6-0 (Councilmember Rog absent). 8b. Mixed use zoning district amendment Ms. Monson presented the staff report. She stated council reviewed and discussed portions of the proposed mixed-use zoning ordinance at the March 11 meeting and staff provided a written report on May 13 to council, explaining density bonus concepts and points values that are proposed in the ordinance. She added on April 17, 2019, the planning commission held a public hearing, and voted unanimously to recommend adoption of the updated mixed-use zoning ordinance. Councilmember Mavity asked if permitted parking in commercial and residential space is subject to minimal requirements. Ms. Monson stated the ordinance specifies where the parking can be located, but refers to the parking ordinance for number of required spaces. Councilmember Mavity asked if this reduces the parking requirement across the board. Ms. Monson stated no. Councilmember Harris asked if the objective of this amendment is the intent to weave more mixed use throughout the city. Ms. Monson stated yes. Councilmember Harris added generally this would be done by PUD, and asked if the amendment would reduce administrative overhead time and negotiations. Ms. Monson stated yes. She noted this will combine everything into an ordinance to reduce negotiations. Councilmembers Brausen and Miller thanked staff and the planning commission and indicated they will support this. Councilmember Miller added this is a good example of City council meeting of June 17, 2019 (Item No. 3d) Page 8 Title: City council meeting minutes of May 20, 2019 what staff does to streamline processes. He noted this all aligns well with the market and puts in place bonus points for density, environmental elements, and affordable commercial – all items that came out of the visioning process. It was moved by Councilmember Miller, seconded by Councilmember Harris, to approve the first reading of an ordinance amending Division 9. M-X Mixed Use and additional amendments relating to the MX district to land use, parking regulations, sign regulations, and architectural design (Sections 36-115, 36-361, 36-362, and 36-366) and set the second reading of the ordinance for June 17, 2019. The motion passed 6-0 (Councilmember Rog absent). 8c. Zoning ordinance amendment regarding home occupations Mr. Walther presented the staff report. He noted this ordinance will prohibit fire arm sales as home occupations, includes changes to allow retail sales with conditions, and adds five other uses to the list of prohibited home occupations. Councilmember Harris asked how much latitude the city has and if this is limited by state statute. Mr. Walther stated the city has authority to restrict home occupations and fire arm sales. Mr. Mattick concurred, adding the city has quite a bit of latitude on this topic. Councilmember Harris asked for a recap of comments on this item from the planning commission. Mr. Walther stated there were three votes opposed to changing the fire arm sales and reasons for their opposition varied. He stated these three did not feel there were any problems with existing businesses operating in the city. He added five of the commissioners did not want to move forward on this ordinance without looking at a comprehensive review of all the home occupation regulations beyond the scope of what this ordinance proposed to amend. Councilmember Harris asked how easy this will be to enforce. Mr. Walther stated it will be simple to enforce the firearm sales restriction because the business requires a federal firearm license, and licenses are renewed every three years. City staff can indicate to the Bureau of Alcohol, Tobacco and Firearms (ATF) that any new license applicant is not allowed to operate as a home occupation and the ATF will deny the license. He added the four existing firearm sales home occupations will be allowed to continue as are today under the zoning code as legal, non-conforming uses; however, they will not be allowed to expand or modify their business. Again, no applications will be approved for new locations in residential areas, if the ordinance passes, as they would be prohibited. Councilmember Miller thanked the St. Louis Park students for pushing this item and thanked staff for addressing it. He noted the mayor encouraged the students to mobilize on this effort after requesting to be safe in their schools and in their community. City council meeting of June 17, 2019 (Item No. 3d) Page 9 Title: City council meeting minutes of May 20, 2019 Councilmember Brausen agreed, adding it is sad how slow we have been to do any gun control, so he is happy to take this small step. Mayor Spano thanked staff and agreed that while there has been no problem with this issue in St. Louis Park, he had concerns about who might be coming into the city. He noted letters he reads each year from 5th graders, and one in particular which comes to mind, the student notes he has a fear of being murdered at his school. Mayor Spano pointed out that 45,000 people have died by guns in the US since the council’s last conversation on this topic, eight more have died since the meeting began this evening, and while the city is limited in what it can do, the city will continue to work on school safety. He added the city police department no longer sells old firearms to dealers who sell to the public, and tonight this ordinance is being passed in order to make the city safer. He stated he is saying all of this as a gun owner himself, and he will enthusiastically support this ordinance, and remain open to talking more about this with anyone. He thanked the students for attending this evening. It was moved by Councilmember Miller, seconded by Councilmember Brausen, to approve the first reading of an ordinance amending Chapters 36 of the St. Louis Park Code of Ordinances regarding home occupations, and set the second reading for June 17, 2019. The motion passed 6-0 (Councilmember Rog absent). 8d. Bid Tabulation: 2019 Historic Walker Lake Phase 1 improvement project no. 4018-1050 Councilmember Brausen stated he moved this item off the consent agenda in order to note the bid for the historic Walker Lake District project, which was estimated at $1.8 million and came in at $2.7 million. He noted this was a significant increase, adding while the environment is fluid, and bids are variable, he felt uncomfortable having a large ticket item being approved by consent agenda, with no discussion. Councilmember Mavity corrected Councilmember Brausen, noting the bid came in at $2.2 million, not at $2.7 million. Councilmember Miller agreed with Councilmember Brausen, noting council should always evaluate high ticket items. Mayor Spano asked why the higher amount for the bid. Ms. Heiser stated it is a 23% overrun over the original estimate, which is now happening all over the metro in this bidding climate because there is so much construction going on. She also noted the increases are reflective of the pricing of oil/bituminous and concrete. It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to designate Minger Construction, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $2,297,991.30 for the 2019 Historic Walker Lake Phase 1 improvements project no. 4018-1050. City council meeting of June 17, 2019 (Item No. 3d) Page 10 Title: City council meeting minutes of May 20, 2019 The motion passed 6-0 (Councilmember Rog absent). 9. Communications Councilmember Brausen thanked all the volunteers who worked on the Children’s First ice cream social this past weekend, even though weather was bad. He also thanked his fellow council members for volunteering and all who attended. Mayor Spano noted on May 30, 6 p.m. at the ROC, there will be a brief program addressing the current state of the city. Mayor Spano will present remarks, there will be comments from the school district and Twin West, and many city organizations will be present with information for the public. He encouraged all to attend. 10. Adjournment The meeting adjourned at 9:40 p.m. ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Jake Spano, Mayor Meeting: City council Meeting date: June 17, 2019 Minutes: 3e Unofficial minutes Representative Omar meeting St. Louis Park, Minnesota May 31, 2019 The meeting convened at 10 a.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Rachel Harris, and Margaret Rog. Staff present: City Manager (Mr. Harmening), Engineering Director (Ms. Heiser), Housing Supervisor/Deputy Community Development Director (Ms. Schnitker) Guests: Representative Ilhan Omar 1. Tour of STEP (10 a.m.) Derek Reise, Executive Director of STEP, provided the group with a tour of the STEP facility, gave an overview of the organization’s purpose and programming and answered questions. 2. Tour of the Nest (10:45 a.m.) The group toured the Nest and learned about the purpose of the facility, how the city and school district support the operations of the facility, and how the concept for The Nest was developed. The group informed Representative Omar of several issues of legislative importance to St. Louis Park including: • Affordable housing • Climate change • Transportation funding • Pre-emption (small cell wireless) • Reilly Superfund Site Representative Omar thanked the group for their time and for the opportunity to learn more about St. Louis Park and the work that is being done in the community. The meeting adjourned at 12:00 p.m. ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Jake Spano, Mayor Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4a Executive summary Title: Approval of city disbursements Recommended action: Motion to accept for filing city disbursement claims for the period of April 27, through June 7, 2019. Policy consideration: Does the city council desire to approve city disbursements in accordance with Section 6.11 – Disbursements – How Made, of the City’s Charter? Summary: The Finance Division prepares this report on a monthly basis for the city council to review and approve. The attached reports show both City disbursements paid by physical check and those by wire transfer or Automated Clearing House (ACH) when applicable. Financial or budget considerations: Review and approval of the information follows the city’s charter and provides another layer of oversight to further ensure fiscal stewardship. Strategic priority consideration: Not applicable. Supporting documents: City disbursements Prepared by: Kari Mahan, Accounting Clerk Reviewed by: Tim Simon, Chief Financial Officer Approved by: Tom Harmening, City Manager 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 55.99A-1 OUTDOOR POWER INC GENERAL FUND BALANCE SHEET INVENTORY 95.97PARK MAINTENANCE G & A GENERAL SUPPLIES 151.96 140.00AAA LAMBERTS LANDSCAPE PRODUCT SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 140.00 63.30ABELSON, SHARON HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 63.30 16,452.14ABRA AUTO BODY - EDEN PRAIRIE UNINSURED LOSS G&A UNINSURED LOSS 715.20ACCIDENT REPAIR EQUIPMENT MTCE SERVICE 17,167.34 20,825.73ACCELA INC #774375 TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 20,825.73 3,060.81ACCOUNTEMPSASSESSING G & A OTHER CONTRACTUAL SERVICES 135.00FINANCE G & A GENERAL PROFESSIONAL SERVICES 3,195.81 5,280.00ACOUSTICS ASSOCIATES INC MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 5,280.00 2,450.00ACROSS THE STREET PRODUCTIONS OPERATIONS TRAINING 2,450.00 450.00ADS ON BOARDS RECREATION OUTDOOR CENTER OTHER CONTRACTUAL SERVICES 450.00 19,818.43ADVANCED ENG & ENVIRONMENTAL SRVCS INC WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 19,333.43SEWER UTILITY G&A GENERAL PROFESSIONAL SERVICES 19,333.43STORM WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 58,485.29 1,117.03AFRO DELI & COFFEE JOINT COMM POLICE PARTNERSHIP MEETING EXPENSE 1,117.03 2,555.00AIM ELECTRONICS PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIES 2,555.00 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 2 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 2Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 27.40ALI KATLUN DAYB POLICE G & A LICENSES 27.40 159.02ALL WAYS PLUMBING WATER UTILITY G&A PUBLIC WORKS 159.02 5,364.00ALLIANCE MECH SRVCS INC FACILITIES MCTE G & A BUILDING MTCE SERVICE 177.00UNINSURED LOSS G&A UNINSURED LOSS 1,050.00MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 177.00PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 6,768.00 5,494.87ALLSTREAMIT G & A TELEPHONE 5,494.87 914.00ALTEC INDUSTRIES INC GENERAL REPAIR EQUIPMENT MTCE SERVICE 914.00 290.24AMAZON CAPITAL SERVICES TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 290.24 15.32AMERICAN TIRE DISTRIBUTORS GENERAL FUND BALANCE SHEET INVENTORY 15.32 162.50AMERIPRIDE LINEN & APPAREL SERVICES OPERATIONS HEALTH & WELLNESS 162.50 1,883.50ANCOM COMMUNICATIONS E-911 PROGRAM EQUIPMENT MTCE SERVICE 682.00E-911 PROGRAM IMPROVEMENTS OTHER THAN BUILDI 2,565.50 402.90ANDERSEN, NORMAN PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICES 402.90 50.00ANDERSON, DEANNA BEAUTIFICATION / FLOWERS OPERATIONAL SUPPLIES 50.00 32,523.06ANOVAPARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 32,523.06 266.97APPLIED MAINTENANCE SUPPLIES & SOLUTIONSGENERAL REPAIR GENERAL SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 3 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 3Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 266.97 5,291.45AR500 ARMOR EQUIP/VEHICLE REPLACEMENT MACHINERY & AUTO EQUIPMENT 5,291.45 1,306.40ARC DOCUMENT SOLUTIONS, LLC TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 1,306.40 229.77ARGUEDAS MARIANO WATER UTILITY G&A GENERAL CUSTOMERS 229.77 47,675.00ARTHUR J. GALLAGHER RISK MGMT SERVICE GO BONDS - NATURE CENTER G&A BUILDINGS & STRUCTURES 47,675.00 326.78ASPEN EQUIPMENT CO GENERAL FUND BALANCE SHEET INVENTORY 326.78 1,174.48ASPEN MILLS OPERATIONS UNIFORMS 285.00OPERATIONSPROTECTIVE CLOTHING 1,459.48 66.56AT&T MOBILITY CELLPHONES, IPADS, ETC.OFFICE EQUIPMENT 66.56 326.60ATIR ELECTRIC CORPORATION FACILITIES MCTE G & A BUILDING MTCE SERVICE 9,579.15MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 9,905.75 221.50ATOMIC RECYCLING FACILITIES MCTE G & A CLEANING/WASTE REMOVAL SERVICE 221.50PUBLIC WORKS OPS G & A CLEANING/WASTE REMOVAL SERVICE 221.50WATER UTILITY G&A CLEANING/WASTE REMOVAL SERVICE 221.50VEHICLE MAINTENANCE G&A CLEANING/WASTE REMOVAL SERVICE 886.00 247.25AUTOMATIC SYSTEMS CO.WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 247.25 698.91AVI SYSTEMS INC CABLE TV G & A REPAIRS 698.91 3,490.00B&H PHOTO VIDEO CABLE TV G & A OTHER City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 4 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 4Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 3,490.00 5,170.35BACHMANSNATURAL RESOURCES G & A LANDSCAPING MATERIALS 1,859.67BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 7,030.02 166.82BACKSTROM COURTNEY WATER UTILITY G&A GENERAL CUSTOMERS 166.82 462.50BALLOON ARTISTRY BY MANDANA SPECIAL EVENTS OTHER CONTRACTUAL SERVICES 462.50 154.18BARCLAY MURIEL WATER UTILITY G&A GENERAL CUSTOMERS 154.18 6,936.50BARR ENGINEERING CO STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 6,936.50 204.73BARTEN JOSEPH WATER UTILITY G&A GENERAL CUSTOMERS 204.73 265.00BARTON SAND & GRAVEL CO PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 80.00WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 345.00 91.55BATTERIES + BULBS ROUTINE MAINTENANCE SMALL TOOLS 247.55WATER UTILITY G&A GENERAL SUPPLIES 339.10 493.30BECK EMILY GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 493.30 20.85BECKER ARENA PRODUCTS REC CENTER BUILDING OPERATIONAL SUPPLIES 20.85 800.80BEDFORD TECHNOLOGY LLC PARK EQUIPMENT MAINTENANCE BLDG/STRUCTURE SUPPLIES 800.80 27.49BENDER KARA WATER UTILITY G&A GENERAL CUSTOMERS 27.49 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 5 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 5Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 276.66BENSON, BRAD HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 276.66 34.95BERANEK KARL WATER UTILITY G&A GENERAL CUSTOMERS 34.95 5,000.00BERGSTROM AMY ESCROWS PMC ESCROW 5,000.00 287.89BERSCHEID, GARY HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 287.89 2,000.00BLUE SKY ENDEAVORS LLC ESCROWS PMC ESCROW 2,000.00 1,110.38BOBBY & STEVE'S AUTO WORLD GENERAL FUND BALANCE SHEET CLEARING ACCOUNT 1,110.38 1,204.10BOHN WELDING INC PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICES 1,204.10 1,000.00BONGAARTS JOANNE HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 1,000.00 14,820.00BORMANN CONSTRUCTION INC PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 14,820.00 514.00BOUND TREE MEDICAL, LLC POLICE G & A OPERATIONAL SUPPLIES 1,209.55OPERATIONSOPERATIONAL SUPPLIES 1,723.55 274.90BOYER TRUCKS GENERAL FUND BALANCE SHEET INVENTORY 274.90 320.00BREDEMUS HARDWARE COMPANY INC FACILITIES MCTE G & A BUILDING MTCE SERVICE 1,250.00MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 1,894.00PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 5,154.34REC CENTER BUILDING MAINTENANCE 8,618.34 37.20BREDENBERG, JASON INSPECTIONS G & A GENERAL SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 6 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 6Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 37.20 215.69BRINK JUDY WATER UTILITY G&A GENERAL CUSTOMERS 215.69 250.00BROWN LEWIS LIFEGUARDING TRAINING 250.00 2,062.50BRUSH STUDIO ADMINISTRATION G & A LIQUOR 2,062.50 1,254.50BRYAN ROCK PRODUCTS INC PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 1,254.50 613.52BTR OF MINNESOTA LLC GENERAL FUND BALANCE SHEET INVENTORY 613.52 180.49BUCKEL, KARI OPERATIONS SEMINARS/CONFERENCES/PRESENTAT 180.49 1,016.62BURR JOANNE EMPLOYEE BENEFITS FUND G&A TUITION 1,016.62 1,251.96BUSINESS ESSENTIALS COMM & MARKETING G & A OFFICE SUPPLIES 1,251.96 2,964.00CALHOUN TOWERS LLC OPERATIONS RADIO COMMUNICATIONS 2,964.00 13,767.52CAMPBELL KNUTSON PROF ASSOC ADMINISTRATION G & A LEGAL SERVICES 4,941.75ENGINEERING G & A LEGAL SERVICES 1,006.50CABLE TV G & A LEGAL SERVICES 833.25HOUSING REHAB G & A LEGAL SERVICES 29,965.07STREET CAPITAL PROJ G & A LEGAL SERVICES 1,452.00STREET CAPITAL PROJ G & A IMPROVEMENTS OTHER THAN BUILDI 115.50WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 231.00SEWER UTILITY G&A GENERAL PROFESSIONAL SERVICES 198.00SOLID WASTE G&A LEGAL SERVICES 52,510.59 4,204.44CANON FINANCIAL CENTER DRIVE TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 7 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 7Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 4,204.44 3,036.00CAPOBIANCO, JENNIFER EMPLOYEE BENEFITS FUND G&A TUITION 3,036.00 3,800.00CAPTIVATE MEDIA & CONSULTING ADMINISTRATION G & A OTHER CONTRACTUAL SERVICES 3,800.00 4,166.00CARE RESOURCE CONNECTION OPERATIONS GENERAL PROFESSIONAL SERVICES 4,166.00 1,710.72CARLSON, ARTHUR J EMPLOYEE BENEFITS FUND G&A TUITION 1,710.72 186.39CARRILLO PEREZ MARIA ADMINISTRATION G & A MILEAGE-PERSONAL CAR 186.39 20,000.00CBIZ BENEFITS & INSURANCE SERVICES INC EMPLOYEE BENEFITS FUND G&A GENERAL PROFESSIONAL SERVICES 20,000.00 680.47CBIZ FINANCIAL SOLUTIONS INC EMPLOYEE BENEFITS FUND G&A GENERAL PROFESSIONAL SERVICES 680.47 3,961.55CDW GOVERNMENT INC TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 3,961.55 5.16CEDAR SMALL ENGINE GENERAL FUND BALANCE SHEET INVENTORY 5.16 7,276.56CENTER FOR ENERGY AND ENVIRONMENT MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 7,276.56 7,332.65CENTERPOINT ENERGY FACILITY OPERATIONS HEATING GAS 3,292.58WATER UTILITY G&A HEATING GAS 205.91REILLY G & A HEATING GAS 243.12SEWER UTILITY G&A HEATING GAS 683.54PARK MAINTENANCE G & A HEATING GAS 77.64WESTWOOD G & A HEATING GAS 108.32NATURALIST PROGRAMMER HEATING GAS 9,472.40REC CENTER BUILDING HEATING GAS 21,416.16 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 8 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 8Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 15,730.00CENTRAL PENSION FUND EMPLOYEE BENEFITS FUND BAL SHT OTHER RETIREMENT 15,730.00 310.00CENTURY COLLEGE OPERATIONS TRAINING 310.00 20,720.29CENTURY LINK E-911 PROGRAM OTHER CONTRACTUAL SERVICES 6,795.61E-911 PROGRAM EQUIPMENT MTCE SERVICE 4,537.36E-911 PROGRAM SEMINARS/CONFERENCES/PRESENTAT 36,253.41E-911 PROGRAM MACHINERY & AUTO EQUIPMENT 261.60CELLPHONES, IPADS, ETC.TELEPHONE 68,568.27 1,050.00CHAMPION WINDOW REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 1,050.00 150.00CHEF MARSHALL O'BRIEN LLC OPERATIONS TRAINING 150.00 250.00CHRISTENSEN DAVID GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 250.00 24.38CHRISTOPHERSON PROPERTIES INSPECTIONS G & A BUILDING 24.38 2,102.00CHUXYOUTH PROGRAMS OPERATIONAL SUPPLIES 280.50WESTWOOD G & A OPERATIONAL SUPPLIES 536.25JUNIOR NATURALISTS OPERATIONAL SUPPLIES 2,918.75 217.85CINTAS CORPORATION FACILITIES MCTE G & A OPERATIONAL SUPPLIES 374.32FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 948.96INSPECTIONS G & A GENERAL SUPPLIES 19.56REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 516.16VEHICLE MAINTENANCE G&A OPERATIONAL SUPPLIES 2,076.85 746.15CITIZENS INDEPENDENT BANK GENERAL FUND BALANCE SHEET INVENTORY GENERAL FUND BALANCE SHEET CLEARING ACCOUNT 129.37ADMINISTRATION G & A GENERAL SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 9 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 9Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 535.66ADMINISTRATION G & A OTHER CONTRACTUAL SERVICES 281.38ADMINISTRATION G & A TRAINING 4,235.39ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 44.27ADMINISTRATION G & A TRAVEL/MEETINGS 1,276.07ADMINISTRATION G & A MEETING EXPENSE 32.14-ADMINISTRATION G & A BANK CHARGES/CREDIT CD FEES 3.97HUMAN RESOURCES OFFICE SUPPLIES 10.68HUMAN RESOURCES GENERAL SUPPLIES 157.06HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 550.00HUMAN RESOURCES RECRUITMENT 1,150.00HUMAN RESOURCES RECOGNITION 1,004.46HUMAN RESOURCES TRAINING 557.48HUMAN RESOURCES MEETING EXPENSE 194.57COMM & MARKETING G & A OTHER CONTRACTUAL SERVICES 255.00COMM & MARKETING G & A SUBSCRIPTIONS/MEMBERSHIPS 58.00COMM & MARKETING G & A TRAINING 342.60COMM & MARKETING G & A SEMINARS/CONFERENCES/PRESENTAT 866.46COMM & MARKETING G & A TRAVEL/MEETINGS 181.23IT G & A GENERAL SUPPLIES 54.95IT G & A OFFICE EQUIPMENT 165.00POSTAL SERVICES POSTAGE 119.00ASSESSING G & A SUBSCRIPTIONS/MEMBERSHIPS 400.00ASSESSING G & A SEMINARS/CONFERENCES/PRESENTAT 35.00ASSESSING G & A MEETING EXPENSE 15.01COMM DEV PLANNING G & A DELIVERY 130.00COMM DEV PLANNING G & A TRAINING 39.00COMM DEV PLANNING G & A TRAVEL/MEETINGS 426.07COMM DEV PLANNING G & A MEETING EXPENSE 831.79FACILITIES MCTE G & A GENERAL SUPPLIES 16.98POLICE G & A OFFICE SUPPLIES 74.00POLICE G & A GENERAL SUPPLIES 2,294.25POLICE G & A OPERATIONAL SUPPLIES 50.00POLICE G & A COMPUTER SUPPLIES 54.96POLICE G & A EQUIPMENT PARTS 180.00POLICE G & A POLICE EQUIPMENT 258.70POLICE G & A OTHER 16.10POLICE G & A POSTAGE 40.00-POLICE G & A SUBSCRIPTIONS/MEMBERSHIPS 3,065.00POLICE G & A TRAINING 1,696.36POLICE G & A SEMINARS/CONFERENCES/PRESENTAT 1,875.83POLICE G & A MEETING EXPENSE City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 10 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 10Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 1,444.48POLICE G & A LICENSES 214.09DARE PROGRAM OPERATIONAL SUPPLIES 106.80NEIGHBORHOOD OUTREACH OPERATIONAL SUPPLIES 384.00RESERVESOPERATIONAL SUPPLIES 303.84ERUOPERATIONAL SUPPLIES 389.81OPERATIONSGENERAL SUPPLIES 893.77OPERATIONSFIRE PREVENTION SUPPLIES 765.27OPERATIONSOPERATIONAL SUPPLIES 77.35OPERATIONSSMALL TOOLS 316.48OPERATIONSUNIFORMS 325.00OPERATIONSSUBSCRIPTIONS/MEMBERSHIPS 1,622.13OPERATIONSTRAINING 7,364.40OPERATIONSSEMINARS/CONFERENCES/PRESENTAT 1,977.04INSPECTIONS G & A TRAINING 762.08PUBLIC WORKS G & A SEMINARS/CONFERENCES/PRESENTAT 150.00ENGINEERING G & A TRAINING 20.95ENGINEERING G & A MEETING EXPENSE 98.99PUBLIC WORKS OPS G & A GENERAL SUPPLIES 943.70TRAININGTRAINING 1,271.79CABLE TV G & A OTHER 300.00CABLE TV G & A SUBSCRIPTIONS/MEMBERSHIPS 15.00CABLE TV G & A SEMINARS/CONFERENCES/PRESENTAT 193.02CABLE TV G & A TRAVEL/MEETINGS 384.00CABLE TV G & A MEETING EXPENSE 4,372.95PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 800.00STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 8.95CONSTRUCTION MATERIAL OTHER CONTRACTUAL SERVICES 330.00WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 483.22WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 366.44SOLID WASTE G&A OPERATIONAL SUPPLIES 40.00SOLID WASTE G&A SUBSCRIPTIONS/MEMBERSHIPS 60.00SOLID WASTE G&A SEMINARS/CONFERENCES/PRESENTAT 33.40ENVIRONMENT & SUSTAINABILITY OFFICE SUPPLIES 55.00ENVIRONMENT & SUSTAINABILITY SUBSCRIPTIONS/MEMBERSHIPS 28.25ENVIRONMENT & SUSTAINABILITY TRAINING 150.00STORM WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 3,018.93TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 3,951.30MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 281.87CELLPHONES, IPADS, ETC.OFFICE EQUIPMENT 46.93ORGANIZED REC G & A GENERAL SUPPLIES 207.22ORGANIZED REC G & A CONCESSION SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 11 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 11Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 353.67ORGANIZED REC G & A TRAINING 78.17ADULT PROGRAMS GENERAL SUPPLIES 15.44SPECIAL PROGRAMS GENERAL SUPPLIES 1,205.98HOLIDAY PROGRAMS GENERAL SUPPLIES 760.00YOUTH PROGRAMS OPERATIONAL SUPPLIES 150.00FABULOUS FRIDAYS OTHER CONTRACTUAL SERVICES 168.06LITTLE TOT PLAYTIME GENERAL SUPPLIES 172.00WARMING HOUSES GENERAL SUPPLIES 88.52PARK MAINTENANCE G & A GENERAL SUPPLIES 541.07PARK MAINTENANCE G & A OPERATIONAL SUPPLIES 55.98PARK MAINTENANCE G & A SUBSCRIPTIONS/MEMBERSHIPS 11.00PARK MAINTENANCE G & A TRAINING 282.34PARK BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 959.16NATURAL RESOURCES G & A TRAINING 181.00BEAUTIFICATION / FLOWERS OTHER IMPROVEMENT SUPPLIES 1,291.44WESTWOOD G & A GENERAL SUPPLIES 258.91SUMMER CAMP GENERAL SUPPLIES 1,584.56REC CENTER BUILDING OPERATIONAL SUPPLIES 919.53REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 82.69REC CENTER BUILDING SEMINARS/CONFERENCES/PRESENTAT 237.48INSTRUCTIONAL SKATING LESSONS OPERATIONAL SUPPLIES 211.02AQUATIC PARK BUDGET OPERATIONAL SUPPLIES 1,246.74LIFEGUARDINGGENERAL SUPPLIES 500.00VEHICLE MAINTENANCE G&A SUBSCRIPTIONS/MEMBERSHIPS 70,218.87 199.95CLAREY'S SAFETY EQUIPMENT INC OPERATIONS REPAIRS 199.95 1,500.00CLARITY CENTRAL COMM DEV PLANNING G & A TRAINING 1,500.00 153.70CLARKE LISA ASSESSING G & A MILEAGE-PERSONAL CAR 153.70 4,500.00COACHOLOGY.US HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 4,500.00 365.40COLE PAPERS FACILITIES MCTE G & A CLEANING/WASTE REMOVAL SUPPLY 365.40 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 12 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 12Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 18,568.17COLICH & ASSOCIATES ADMINISTRATION G & A LEGAL SERVICES 18,568.17 999.21COLLINS ELECTRICAL CONSTRUCTION CO SYSTEM REPAIR OTHER CONTRACTUAL SERVICES 1,284.25INSTALLATIONOTHER CONTRACTUAL SERVICES 2,283.46 252.13COMCASTOPERATIONSEMERGENCY PREPAREDNESS 199.10CABLE TV G & A OTHER CONTRACTUAL SERVICES 32.65OTHER CITY DEPARTMENTS OTHER CONTRACTUAL SERVICES 314.55WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 58.88REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 857.31 4,527.22COMMERCIAL ASPHALT COMPANY PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIES 7,609.72WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 12,136.94 2,092.00COMMERCIAL REFRIGERATION SYSTEM INC REC CENTER BUILDING EQUIPMENT MTCE SERVICE 2,092.00 584.00COMMUNITY REINVESTMENT FUND MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 584.00 1,758.67CONCEPT SEATING MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 1,758.67 4,832.00COPPERHEAD INNOVATIONS LLC WATER UTILITY G&A OTHER 4,832.00 11,940.75CORE & MAIN LP WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 11,940.75 8,750.00CORNERSTONE ADVOCACY SERVICE POLICE G & A OTHER CONTRACTUAL SERVICES 8,750.00 200.00CORNWALL BRUCE GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 200.00 100.00COSTCO WHOLESALE GENERAL FUND BALANCE SHEET CLEARING ACCOUNT 100.00 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 13 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 13Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 3,450.00COURT SURFACES & REPAIR PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 3,450.00 600.00COVER TRACK GROUP INC.POLICE G & A OTHER CONTRACTUAL SERVICES 600.00 10,650.00COVERALL OF THE TWIN CITIES FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 10,650.00 15.00COWLING EMMA PRE-SCHOOL PROGRAMS REFUNDS & REIMBURSEMENTS 65.00SUMMER CAMP REFUNDS & REIMBURSEMENTS 80.00 112.36CRESTVIEW NEIGHBORHOOD ASSOCIATION HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 112.36 286.94CROWN MARKING INC.COMM & MARKETING G & A OFFICE SUPPLIES 153.70OPERATIONSUNIFORMS 440.64 807.73CROWN RENTAL - BURNSVILLE PARK MAINTENANCE G & A SMALL TOOLS 807.73 137.01CUB KNOLLWOOD POLICE G & A JAIL SUPPLIES 137.01 4,664.84CUMMINS INC SEWER UTILITY G&A EQUIPMENT MTCE SERVICE 4,664.84 147,671.00CUSHMAN MOTOR CO INC CAPITAL REPLACEMENT B/S INVENTORY 147,671.00 2,600.00CUSTOM PRODUCTS & SERVICES SSD 1 G&A OTHER CONTRACTUAL SERVICES 1,350.00SSD 2 G&A OTHER CONTRACTUAL SERVICES 750.00SSD 3 G&A OTHER CONTRACTUAL SERVICES 1,040.00SSD #4 G&A OTHER CONTRACTUAL SERVICES 1,124.00SSD #5 G&A OTHER CONTRACTUAL SERVICES 944.00SSD #6 G&A OTHER CONTRACTUAL SERVICES 7,808.00 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 14 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 14Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 1,490.35CUSTOM REFRIGERATION INC FACILITIES MCTE G & A BUILDING MTCE SERVICE 1,490.35 198.39DAHL DAVID WATER UTILITY G&A GENERAL CUSTOMERS 198.39 2,937.50DALCO ENTERPRISES INC FACILITIES MCTE G & A CLEANING/WASTE REMOVAL SUPPLY 273.54REC CENTER BUILDING OPERATIONAL SUPPLIES 2,359.77REC CENTER BUILDING EQUIPMENT MTCE SERVICE 5,570.81 1.00DAMYAN'S ELECTRIC INSPECTIONS G & A DUE TO OTHER GOVTS 65.00INSPECTIONS G & A ELECTRICAL 66.00 26.50DAVIS STEVE WATER UTILITY G&A GENERAL CUSTOMERS 26.50 581.79DELEGARD TOOL CO VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 581.79 460.00DEPARTMENT OF HUMAN SERVICES REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 460.00 9,424.73DEPT LABOR & INDUSTRY INSPECTIONS G & A DUE TO OTHER GOVTS 9,424.73 3,500.00DICKMAN, JANICE ESCROWS PMC ESCROW 3,500.00 425.89DISCOUNT STEEL INC GENERAL REPAIR GENERAL SUPPLIES 425.89 609.26DISE, SHEILA HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 609.26 10.91DISTRESSED HOUSING INVESTMENTS WATER UTILITY G&A GENERAL CUSTOMERS 10.91 40.00DIVALL SARAH T-BALL/BASEBALL REFUNDS & REIMBURSEMENTS 36.00SOCCERREFUNDS & REIMBURSEMENTS City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 15 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 15Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 76.00 20,510.00DJ ELECTRIC SERVICES INC PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 1,518.34REC CENTER BUILDING MAINTENANCE 22,028.34 2,645.40DO-GOOD.BIZ INC COMM & MARKETING G & A POSTAGE 2,490.04COMM & MARKETING G & A PRINTING & PUBLISHING 234.61HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 5,370.05 56.61DOORNEK JAME & LOUISE LIVING TRUST WATER UTILITY G&A GENERAL CUSTOMERS 56.61 225.00DORGAN ANNE GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 225.00 1,452.90DUNDEE NURSERY BEAUTIFICATION / FLOWERS OTHER IMPROVEMENT SUPPLIES 1,452.90 41.10EBENSTEINER MARK ADMINISTRATION G & A TRAINING 15.00FINANCE G & A SEMINARS/CONFERENCES/PRESENTAT 20.88FINANCE G & A MILEAGE-PERSONAL CAR 76.98 4,094.50EBERT CONSTRUCTION MUNICIPAL BLDG BUILDINGS & STRUCTURES 4,094.50 1,184.05ECM PUBLISHERS INC ADMINISTRATION G & A LEGAL NOTICES 1,184.05 1,171.56EGANSTREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 1,171.56 147.50EHLERS & ASSOCIATES INC ESCROWS PLATIA PLACE 245.00HOUSING REHAB G & A OTHER CONTRACTUAL SERVICES 245.00HIA ADMIN OTHER CONTRACTUAL SERVICES 637.50 1,432.71ELECTRIC PUMP INC EMPLOYEE BENEFITS FUND G&A OTHER IMPROVEMENT SERVICE 1,432.71 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 16 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 16Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 8,100.00EMERGENCY AUTOMOTIVE TECHNOLOGIES INC DWI ENFORCEMENT POLICE EQUIPMENT 2,343.84UNINSURED LOSS G&A UNINSURED LOSS 10,443.84 42.00ENNEN AMY ART REFUNDS & REIMBURSEMENTS 42.00 6,382.99ENTERPRISE FM TRUST EQUIP/VEHICLE REPLACEMENT RENTAL EQUIPMENT 6,382.99 38,820.00ESS BROTHERS & SONS INC STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 38,820.00 15,750.00EVERBRIDGE INC E-911 PROGRAM TELEPHONE 15,750.00 5,000.00EXCELSIOR 6111 LLC ESCROWS PMC ESCROW 5,000.00 115.55EXPRESSIMAGESOLID WASTE G&A OPERATIONAL SUPPLIES 115.55 2,819.48F.I.R.E.OPERATIONS TRAINING 2,819.48 2,577.40FACTORY MOTOR PARTS CO GENERAL FUND BALANCE SHEET INVENTORY 113.78GENERAL REPAIR GENERAL SUPPLIES 2,691.18 6.31FASTENAL COMPANY GENERAL FUND BALANCE SHEET INVENTORY 3.17FACILITIES MCTE G & A GENERAL SUPPLIES 81.39SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 218.39WATER UTILITY G&A SMALL TOOLS 309.26 416.18FERGUSON ENTERPRISES INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 416.18 64.68FERGUSON WATERWORKS WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 64.68 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 17 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 17Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 617.26FINANCE & COMMERCE, INC.STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 617.26 128.00FIRE ENGINEERING OPERATIONS SUBSCRIPTIONS/MEMBERSHIPS 128.00 370.00FIRE SAFETY USA INC GENERAL FUND BALANCE SHEET INVENTORY 370.00 79.90FIREHOUSE- SOUTHCOMM BUSINESS MEDIA OPERATIONS SUBSCRIPTIONS/MEMBERSHIPS 79.90 838.00FIRST ADVANTAGE HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 838.00 157.10FIRST QUALITY SUPPLY PARK MAINTENANCE G & A GENERAL SUPPLIES 157.10 1,000.00FIRST SYSTEMS TECHNOLOGY, INC.WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 1,000.00 8,551.89FISCHER MINING LLC WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 8,551.89 38.73FISHER, JON POLICE G & A TRAVEL/MEETINGS 38.73 2,189.00FLAGSHIP RECREATION LLC PARK EQUIPMENT MAINTENANCE OTHER IMPROVEMENT SUPPLIES 2,189.00 75.00FLAHERTY JOHN GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 75.00 26.00FLOYD TOTAL SECURITY REC CENTER BUILDING OPERATIONAL SUPPLIES 26.00 495.00FORCE SCIENCE INSTITUTE LTD POLICE G & A TRAINING 495.00 470.00FOX VALLEY TECHNICAL COLLEGE POLICE G & A TRAINING City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 18 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 18Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 470.00 25.52FRANCIS, ERICK STORM WATER UTILITY G&A MILEAGE-PERSONAL CAR 25.52 249.88FRANCOUAL JOANNE HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 249.88 280.50FRANCZAK JOHN SOFTBALL OTHER CONTRACTUAL SERVICES 280.50 250.00FRANTA NATHAN GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 250.00 26.28FRATTALONE'S/ST. LOUIS PARK GENERAL FUND BALANCE SHEET INVENTORY 7.17POLICE G & A BLDG/STRUCTURE SUPPLIES 28.89GENERAL REPAIR GENERAL SUPPLIES 62.34 13,043.66GALLS, LLC - DBA UNIFORMS UNLIMITED POLICE G & A OPERATIONAL SUPPLIES 13,043.66 367.76GARCIA LARA HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 367.76 1,875.00GARY L FISCHLER & ASSOCIATES PA POLICE G & A GENERAL PROFESSIONAL SERVICES 1,875.00 62.21GEIGER NATHAN WATER UTILITY G&A GENERAL CUSTOMERS 62.21 625.00-GENERAL SHEET METAL COMPANY, LLC. CAPITAL REPLACEMENT B/S RETAINAGE PAYABLE 12,500.00MUNICIPAL BLDG BUILDINGS & STRUCTURES 11,875.00 8,040.00GEOTAB INC.GENERAL REPAIR LICENSES 8,040.00 379.80GERTENSWATER UTILITY G&A OPERATIONAL SUPPLIES 379.80 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 19 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 19Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 3,200.00GETTY IMAGES COMM & MARKETING G & A SUBSCRIPTIONS/MEMBERSHIPS 3,200.00 750.00GHUGALE JYOTI AND AMEYA KHANDEKAR ESCROWS PMC ESCROW 750.00 41,536.50-GMH ASPHALT CORPORATION STREET CAPITAL PROJ BAL SHEET RETAINAGE PAYABLE 830,730.05STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 789,193.55 1,020.60GOPHER STATE ONE-CALL INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 1,020.60 67.86GRAFIX SHOPPE GENERAL FUND BALANCE SHEET INVENTORY 441.00UNINSURED LOSS G&A UNINSURED LOSS 508.86 81.09GRAGE, ANDREA HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 81.09 181.48GRAINGER INC, WW GENERAL FUND BALANCE SHEET INVENTORY 62.66PARK BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 244.14 10,473.75GRANICUSTECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 10,473.75 500.00GTRE COMMERCIAL LLC RIGHT-OF-WAY OTHER CONTRACTUAL SERVICES 500.00 75.00GUGGENBERGER, ANDREW GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 75.00 111.00GUNDERSON NICHOLAS INSPECTIONS G & A PLUMBING 111.00 8.00H & L MESABI GENERAL FUND BALANCE SHEET INVENTORY 8.00 520.70HACH CO WATER UTILITY G&A GENERAL SUPPLIES 520.70 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 20 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 20Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 800.00HALE, WILLIAM PERFORMING ARTS OTHER CONTRACTUAL SERVICES 800.00 612.00HAMILTON, MIKE SOFTBALL OTHER CONTRACTUAL SERVICES 612.00 21,006.36HAMMEL GREEN & ABRAHAMSON INC GO BONDS - NATURE CENTER G&A BUILDINGS & STRUCTURES 21,006.36 3,625.44HANCOCK CONCRETE PRODUCTS LLC STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 3,625.44 .75HANSON BOBBI INSPECTIONS G & A DUE TO OTHER GOVTS 225.25INSPECTIONS G & A BUILDING 226.00 1,500.00HANSON PERRY ESCROWS PMC ESCROW 2.00INSPECTIONS G & A DUE TO OTHER GOVTS 130.00INSPECTIONS G & A PLUMBING 1,632.00 3,630.00HAPCO POLE PRODUCTS PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 3,630.00 3,975.00HARRIS FRANK D. & KARIS A. BARNES SLOSS RIGHT-OF-WAY OTHER CONTRACTUAL SERVICES 3,975.00 12,820.20HAWKINS INC WATER UTILITY G&A OPERATIONAL SUPPLIES 3,658.78AQUATIC PARK BUDGET OPERATIONAL SUPPLIES 16,478.98 1,300.00HAYO SHAI PERFORMING ARTS OTHER CONTRACTUAL SERVICES 1,300.00 1,898.00HEALTHPARTNERSHUMAN RESOURCES RECRUITMENT 105.00POLICE G & A GENERAL PROFESSIONAL SERVICES 2,003.00 37.50HEDBERG SUPPLY WESTWOOD G & A GENERAL SUPPLIES 166.90WESTWOOD G & A LANDSCAPING MATERIALS City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 21 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 21Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 204.40 213.02HENNEPIN COUNTY ELECTIONS ADMINISTRATION G & A GENERAL SUPPLIES 213.02 87.00HENNEPIN COUNTY TREASURER IT G & A COMPUTER SERVICES 55.50ASSESSING G & A OTHER CONTRACTUAL SERVICES 2,933.55POLICE G & A EQUIPMENT MTCE SERVICE 7,968.75POLICE G & A JAIL/DETENTION SERVICES 2,303.38OPERATIONSRADIO COMMUNICATIONS 550.00HOUSING REHAB BALANCE SHEET LAND HELD FOR RESALE 490.83PARK MAINTENANCE G & A GARBAGE/REFUSE SERVICE 14,389.01 850.00HENNEPIN HEALTHCARE POLICE G & A TRAINING 2,568.00OPERATIONSTRAINING 3,418.00 6,237.48HENRICKSENMUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 6,237.48 56,718.87HENRICKSEN PSG MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 56,718.87 7,000.00HERMAN JULIE ESCROWS PMC ESCROW 7,000.00 250.00HILDESTAD, JODIE HUMAN RESOURCES MEETING EXPENSE 250.00 1,512.50HIRSHFIELD"S PAINT MFG INC PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 1,512.50 563.30HIRSHFIELDSMUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 563.30 500.00HOBSON RON HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 500.00 527.94HOFFMAN, BRIAN INSPECTIONS G & A TRAINING 527.94 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 22 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 22Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 17,000.00HOLLYWOOD PYROTECHNICS INC HOLIDAY PROGRAMS OTHER CONTRACTUAL SERVICES 17,000.00 1,032.00HOLM AUSTIN EMPLOYEE BENEFITS FUND G&A TUITION 1,032.00 36.85HOME DEPOT CREDIT SERVICES GENERAL FUND BALANCE SHEET INVENTORY 173.77FACILITIES MCTE G & A GENERAL SUPPLIES 218.62FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 21.74ROUTINE MAINTENANCE SMALL TOOLS 34.66DAMAGE REPAIR OTHER IMPROVEMENT SUPPLIES 9.97INSTALLATIONSMALL TOOLS 333.67WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 45.91TECHNOLOGY REPLACEMENT IMPROVEMENTS OTHER THAN BUILDI 460.95PARK MAINTENANCE G & A GENERAL SUPPLIES 21.48PARK MAINTENANCE G & A SMALL TOOLS 371.32PARK BUILDING MAINTENANCE GENERAL SUPPLIES 42.49PARK BUILDING MAINTENANCE EQUIPMENT PARTS 184.47-PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 43.81PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 18.94WESTWOOD HILLS NATURE CENTER GENERAL SUPPLIES 446.17BEAUTIFICATION / FLOWERS OTHER IMPROVEMENT SUPPLIES 288.08BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 175.62REC CENTER BUILDING OPERATIONAL SUPPLIES 106.43REC CENTER BUILDING BLDG/STRUCTURE SUPPLIES 28.93VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 2,694.94 210.00HOPKINS, CITY OF POLICE G & A TRAINING 35.00COMMUNICATIONS/GV REIMBURSEABL TRAINING 245.00 165.00HORIZON AFO SEMINARS REC CENTER BUILDING TRAINING 165.00 17.03HOUSE JOSEPH & SAMANTHA WATER UTILITY G&A GENERAL CUSTOMERS 17.03 32,661.99HOUSING AUTHORITY KIDS IN THE PARK RENT ASSIST OTHER CONTRACTUAL SERVICES 32,661.99 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 23 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 23Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 153.00HOWES, KRISTINE SOFTBALL OTHER CONTRACTUAL SERVICES 153.00 680.00HTPO INC STREET CAPITAL PROJ G & A IMPROVEMENTS OTHER THAN BUILDI 680.00 423.60HUBER, JASON IT G & A TRAINING 423.60 1,750.00I.U.O.E. LOCAL NO 49 EMPLOYEE BENEFITS FUND BAL SHT UNION DUES 1,750.00 2,660.00IACPPOLICE G & A TRAINING 2,660.00 225.00ICE SPORTS INDUSTRY INSTRUCTIONAL SKATING LESSONS SUBSCRIPTIONS/MEMBERSHIPS 225.00 970.69IDEAL SERVICE INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 970.69 13,426.00IMAGETREND, INC TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 13,426.00 872.72IMAGINE! EXPRESS LLC SOLID WASTE G&A OPERATIONAL SUPPLIES 872.72 794.56IMPACT PROVEN SOLUTIONS WATER UTILITY G&A POSTAGE 794.56SEWER UTILITY G&A POSTAGE 794.56SOLID WASTE G&A POSTAGE 794.55STORM WATER UTILITY G&A POSTAGE 3,178.23 1,470.00INDELCOOPERATIONSSMALL TOOLS 6,473.45WATER UTILITY G&A EQUIPMENT MTCE SERVICE 60.00IRRIGATION MAINTENANCE GENERAL SUPPLIES 8,003.45 335.00INDEPENDENT BLACK DIRT CO WATER UTILITY G&A GENERAL SUPPLIES 335.00PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 24 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 24Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 335.00BEAUTIFICATION / FLOWERS OTHER IMPROVEMENT SUPPLIES 1,005.00 5,711.00INFINITY WIRELESS TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 5,711.00 21.11INGRAM, LUKE ENGINEERING G & A MILEAGE-PERSONAL CAR 21.11 1,054.23INTERSTATE POWER SYSTEMS INC GENERAL REPAIR EQUIPMENT MTCE SERVICE 1,054.23 608.22INVER GROVE FORD GENERAL FUND BALANCE SHEET INVENTORY 997.22GENERAL REPAIR EQUIPMENT MTCE SERVICE 1,605.44 29,500.00IRC PARK PLACE PLAZA MINNESOTA, LLC. RIGHT-OF-WAY OTHER CONTRACTUAL SERVICES 29,500.00 180.90J & F REDDY RENTS WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 185.62PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 366.52 888.03J. H. LARSON CO.WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 888.03 875.81JEFFERSON FIRE & SAFETY INC OPERATIONS SMALL TOOLS 875.81 60.00JERRY DAHL HEATING AND AIR INSPECTIONS G & A MECHANICAL 60.00 25.26JERRY'S HARDWARE GENERAL FUND BALANCE SHEET INVENTORY 22.45POLICE G & A BLDG/STRUCTURE SUPPLIES 23.38PUBLIC WORKS G & A GENERAL SUPPLIES .88WATER UTILITY G&A GENERAL SUPPLIES 77.02WATER UTILITY G&A EQUIPMENT PARTS 58.42SOLID WASTE G&A OPERATIONAL SUPPLIES 20.73PARK MAINTENANCE G & A GENERAL SUPPLIES 13.12IRRIGATION MAINTENANCE GENERAL SUPPLIES 26.43PARK BUILDING MAINTENANCE GENERAL SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 25 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 25Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 22.00VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 289.69 6,035.00JOHNSON FITNESS & WELLNESS POLICE G & A MACHINERY & AUTO EQUIPMENT 6,035.00 102.00JOHNSON III JAMES SOFTBALL OTHER CONTRACTUAL SERVICES 102.00 80.00JONES BRENDAN OPERATIONS TRAINING 80.00 54.09JORGENSON ADAM WATER UTILITY G&A GENERAL CUSTOMERS 54.09 129.92JUREK JESSIE ASSESSING G & A MILEAGE-PERSONAL CAR 129.92 43.26KADRLIK JILL WATER UTILITY G&A GENERAL CUSTOMERS 43.26 357.75KENNEDY & GRAVEN ESCROWS 5605 W 36TH (AMER LEGION SITE) 225.00HOUSING REHAB G & A LEGAL SERVICES 582.75 39.13KERSEY MCKENZIE WATER UTILITY G&A GENERAL CUSTOMERS 39.13 720.00KILLMER ELECTRIC CO INC INSTALLATION OTHER CONTRACTUAL SERVICES 311.20UNINSURED LOSS G&A UNINSURED LOSS 1,031.20 9,472.04KIMLEY-HORN AND ASSOCIATES, INC STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 9,472.04 42,949.00KLEIN UNDERGROUND LLC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 42,949.00 98.54KN REAL ESTATE INVESTING LLC WATER UTILITY G&A GENERAL CUSTOMERS 98.54 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 26 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 26Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 430.00KNOPS ESTHER GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 430.00 2,191.31-KRAEMER NORTH AMERICA LLC STREET CAPITAL PROJ BAL SHEET RETAINAGE PAYABLE 43,826.22CONSTRUCTION MATERIAL OTHER CONTRACTUAL SERVICES 41,634.91 4,143.15KRECH, O'BRIEN, MUELLER & WASS INC PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 1,859.09MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 6,002.24 179.00KRUGE-AIR INC BLDG/GROUNDS OPS & MAINT BUILDING MTCE SERVICE 179.00 140.25KUBES, JON SOFTBALL OTHER CONTRACTUAL SERVICES 140.25 151.79KURTH NANCY WATER UTILITY G&A GENERAL CUSTOMERS 151.79 100.00LADEN'S BUSINESS SOLUTIONS INC HUMAN RESOURCES GENERAL SUPPLIES 100.00FINANCE G & A GENERAL SUPPLIES 200.00 240.00LAKELAND SERVICES, INC.MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 240.00 1.00LANGER PLUMBING INSPECTIONS G & A DUE TO OTHER GOVTS 100.00INSPECTIONS G & A PLUMBING 101.00 98.95LANGUAGE LINE SERVICES INC POLICE G & A OTHER CONTRACTUAL SERVICES 98.95 500.00LANI WESSER KAYE GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 500.00 475.00LAU BOB GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 475.00 2,958.00LAW ENFORCEMENT LABOR SERVICES INC EMPLOYEE BENEFITS FUND BAL SHT UNION DUES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 27 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 27Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 2,958.00 86.00LAWRENCE TERRYN SOCCER REFUNDS & REIMBURSEMENTS 86.00 176.37LAWSON PRODUCTS INC VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 176.37 11,903.84LEAGUE OF MINNESOTA CITIES EMPLOYEE BENEFITS FUND G&A League of MN Cities dept'l exp 11,903.84 182,721.00LEAGUE OF MN CITIES INSURANCE TRUST EMPLOYEE BENEFITS FUND G&A League of MN Cities dept'l exp 52,727.09UNINSURED LOSS G&A UNINSURED LOSS 235,448.09 558.07LEWIS, DON POLICE G & A OPERATIONAL SUPPLIES 558.07 6,683.89LEXICOCABLE TV G & A GENERAL PROFESSIONAL SERVICES 6,683.89 290.80LIBERTY TIRE SERVICES LLC VEHICLE MAINTENANCE G&A CLEANING/WASTE REMOVAL SERVICE 290.80 .25LINN STAR TRANSFER INSPECTIONS G & A DUE TO OTHER GOVTS 73.75INSPECTIONS G & A PLUMBING 74.00 210.89LITIN PAK POLICE G & A OFFICE SUPPLIES 210.89 190.85LITTLE FALLS MACHINE INC GENERAL FUND BALANCE SHEET INVENTORY 190.85 15,537.02LOCKRIDGE GRINDAL NAUEN PLLP REILLY G & A LEGAL SERVICES 15,537.02 563.18LOFFLERIT G & A EQUIPMENT MTCE SERVICE 563.18 2,260.73LOFFLER COMPANIES IT G & A OFFICE EQUIPMENT City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 28 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 28Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 2,260.73 39,839.22LOGISIT G & A COMPUTER SERVICES 15,530.25TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 55,369.47 338.00LONSKY MELISSA INSPECTIONS G & A BUILDING 338.00 14,820.00LOTUS ENGINEERING & SUSTAINABILITY MUNICIPAL BLDG GENERAL PROFESSIONAL SERVICES 14,820.00 2,453.57LUBE-TECH & PARTNERS LLC GENERAL FUND BALANCE SHEET INVENTORY 2,453.57 100.00LUND JANET SOFTBALL PROGRAM REVENUE 100.00 10.26LUSE KIEL WATER UTILITY G&A GENERAL CUSTOMERS 10.26 116.89MACQUEEN EQUIP CO GENERAL FUND BALANCE SHEET INVENTORY 43.22SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 160.11 1,194.00MACTACABLE TV G & A SEMINARS/CONFERENCES/PRESENTAT 1,194.00 46.26MAGNUSON, ASHLEY CONCESSIONS CONCESSION SUPPLIES 46.26 369.02MAGTEKTECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 369.02 275.00MANNING, CATHERINE GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 275.00 19,268.56MANSFIELD OIL COMPANY GENERAL FUND BALANCE SHEET INVENTORY 19,268.56 376.29MARTENS, AFTON JOINT COMM POLICE PARTNERSHIP MEETING EXPENSE City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 29 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 29Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 376.29 205.32MASKO, MARSHALL WATER UTILITY G&A GENERAL CUSTOMERS 205.32 286.00MASTER TECHNOLOGY GROUP TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 286.00 14.27MCCONNELL LAUREN POLICE G & A TRAVEL/MEETINGS 14.27 436.00MCGARRY ROB HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 436.00 138.80MCKEOWN COURTNEY HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 138.80 284.67MCLAIN MITCHELL WATER UTILITY G&A GENERAL CUSTOMERS 284.67 75.00MCMAADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 75.00 425.95MCNAMARA LAUREN HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 425.95 60.00MCPAPOLICE G & A SUBSCRIPTIONS/MEMBERSHIPS 60.00 1,500.00MCPHILLIPS BROS ROOFING COMPANY FACILITIES MCTE G & A BUILDING MTCE SERVICE 1,500.00 108.10MENARDSFACILITIES MCTE G & A GENERAL SUPPLIES 60.91ROUTINE MAINTENANCE GENERAL SUPPLIES 313.87WATER UTILITY G&A GENERAL SUPPLIES 94.46BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 358.14WESTWOOD G & A GENERAL SUPPLIES 41.49FAMILY PROGRAMS GENERAL SUPPLIES 25.38REC CENTER BUILDING OPERATIONAL SUPPLIES 1,002.35 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 30 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 30Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 280.14MERKLEY, SCOTT PUBLIC WORKS G & A MILEAGE-PERSONAL CAR 280.14 930.44METHODIST HOSPITAL SEWER UTILITY G&A GENERAL CUSTOMERS 930.44 12,375.00METRO BLOOMS STORM WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 12,375.00 1,088.00METRO VOLLEYBALL OFFICIALS ASSOC.VOLLEYBALL OTHER CONTRACTUAL SERVICES 1,088.00 455,127.75METROPOLITAN COUNCIL INSPECTIONS G & A DUE TO OTHER GOVTS 3,325.00WATER UTILITY G&A CLEANING/WASTE REMOVAL SERVICE 1,675.00REILLY BUDGET CLEANING/WASTE REMOVAL SERVICE 355,040.71OPERATIONSCLEANING/WASTE REMOVAL SERVICE 815,168.46 235.00MEYER JACKIE DANCE REFUNDS & REIMBURSEMENTS 235.00 2,975.00MHSRC/RANGE POLICE G & A TRAINING 2,975.00 1,500.00MICHAEL HAYES HOMES STORM WATER UTILITY BAL SHEET GENERAL 1,500.00 51.99MICRO CENTER TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 51.99 695.00MID AMERICA BUSINESS SYSTEMS TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 695.00 9,000.00MIDWEST GROUNDCOVER PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 9,000.00 1,329.30MINNEAPOLIS FINANCE DEPT PAWN FEES OTHER CONTRACTUAL SERVICES 1,329.30 26.33MINNEAPOLIS SIGNS INSPECTIONS G & A BUILDING 26.33 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 31 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 31Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 750.00MINNESOTA ALLIANCE WITH YOUTH ADMINISTRATION G & A OTHER CONTRACTUAL SERVICES 750.00 1,409.85MINNESOTA CHILD SUPPORT PYT CTR EMPLOYEE BENEFITS FUND BAL SHT WAGE GARNISHMENTS 1,409.85 1,500.00MINNESOTA CIT OFFICER'S ASSOCIATION POLICE G & A TRAINING 1,500.00 23.00MINNESOTA DEPARTMENT OF HEALTH WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 23.00 23.00MINNESOTA DEPT OF HEALTH WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 23.00 1,648.86MINNESOTA DEPT PUBLIC SAFETY CAPITAL REPLACEMENT B/S INVENTORY 1,648.86 1,590.00MINNESOTA NATIVE LANDSCAPES NATURAL RESOURCES MANAGEMENT OTHER IMPROVEMENT SUPPLIES 1,590.00 260.12MINNESOTA POLLUTION CONTROL AGENCY PARK MAINTENANCE G & A GENERAL SUPPLIES 260.12 90.00MINNESOTA POLLUTION CONTROLAGENCY SEWER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 90.00 280.00MINUTEMAN PRESS COMM & MARKETING G & A OFFICE SUPPLIES 280.00 292.00MINVALCO INC WATER UTILITY G&A OPERATIONAL SUPPLIES 292.00 51.77MLFP4725 LLC WATER UTILITY G&A GENERAL CUSTOMERS 51.77 2,200.00MOBOTREXSYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 2,200.00 270.95MOST DEPENDABLE FOUNTAINS PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 32 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 32Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 270.95 260.12MPCAFACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 250.00STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 45.00SEWER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 555.12 350.00MR CUTTING EDGE REC CENTER BUILDING EQUIPMENT MTCE SERVICE 350.00 1,876.11MTI DISTRIBUTING CO GENERAL FUND BALANCE SHEET INVENTORY 1,876.11 16.00MURPHY JULIE ART REFUNDS & REIMBURSEMENTS 16.00 192.00MVTL LABORATORIES REILLY BUDGET OTHER CONTRACTUAL SERVICES 192.00 29.55NAGLE BETSY REVCBL & MARY COLLERAN REVCBWATER UTILITY G&A GENERAL CUSTOMERS 29.55 4,128.73NAPA (GENUINE PARTS CO)GENERAL FUND BALANCE SHEET INVENTORY 29.16FACILITIES MCTE G & A GENERAL SUPPLIES 22.35WATER UTILITY G&A EQUIPMENT PARTS 4.14PARK MAINTENANCE G & A GENERAL SUPPLIES 352.63VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 231.36VEHICLE MAINTENANCE G&A SMALL TOOLS 4,768.37 3,927.39NATIONAL LEAGUE OF CITIES ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPS 3,927.39 105.00NAVAS QUEVEDO GERARDO PICNIC SHELTERS RENT REVENUE 105.00 569.10ND CHILD SUPPORT DIVISION EMPLOYEE BENEFITS FUND BAL SHT WAGE GARNISHMENTS 569.10 139.22NEUMANN DEREK WATER UTILITY G&A GENERAL CUSTOMERS 139.22 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 33 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 33Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 113.75NEW CENTURY SYSTEMS INSPECTIONS G & A MECHANICAL 113.75 16.62NEZZANGA GABRIEL WATER UTILITY G&A GENERAL CUSTOMERS 16.62 129.95NOKOMIS SHOE SHOP INSPECTIONS G & A GENERAL SUPPLIES 129.95 213.90NORTH AMERICAN SAFETY INC PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 289.93PARK MAINTENANCE G & A OPERATIONAL SUPPLIES 503.83 35,325.00NORTH METRO COMPANIES PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 22,480.00CONSTRUCTION MATERIAL OTHER CONTRACTUAL SERVICES 57,805.00 38.04NORTHERN AIRE POOLS INC SPLASH PAD MAINT - Oak Hill Pk GENERAL SUPPLIES 38.04 563.36NORTHERN SAFETY TECHNOLOGY INC GENERAL FUND BALANCE SHEET INVENTORY 563.36 193.96NORTHERN TOOL AND EQUIPMENT WESTWOOD G & A GENERAL SUPPLIES 193.96 35,498.00NORTHWEST ASPHALT CORP PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 35,498.00 340.00NORTHWEST LASERS & INSTRUMENTS ENGINEERING G & A OTHER 340.00 600.00OAK KNOLL ANIMAL HOSPITAL POLICE G & A OTHER CONTRACTUAL SERVICES 600.00 17.01OAKWOOD PARTNERS WATER UTILITY G&A GENERAL CUSTOMERS 17.01 519.29OCCUPATIONAL DEVELOPMENT CENTER INC ENGINEERING G & A OPERATIONAL SUPPLIES 519.29 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 34 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 34Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 95.67OFFICE DEPOT ADMINISTRATION G & A OFFICE SUPPLIES 124.86COMM & MARKETING G & A GENERAL SUPPLIES 80.52COMM & MARKETING G & A PRINTING & PUBLISHING 197.53FINANCE G & A OFFICE SUPPLIES 268.60POLICE G & A OFFICE SUPPLIES 119.21POLICE G & A OPERATIONAL SUPPLIES 210.03INSPECTIONS G & A GENERAL SUPPLIES 105.25PUBLIC WORKS G & A OFFICE SUPPLIES 98.37WATER UTILITY G&A OFFICE SUPPLIES 400.21ORGANIZED REC G & A CONCESSION SUPPLIES 84.22WESTWOOD G & A OFFICE SUPPLIES 71.97SUMMER CAMP GENERAL SUPPLIES 2.21VEHICLE MAINTENANCE G&A OFFICE SUPPLIES 1,858.65 112.50OFFICE TEAM COMM & MARKETING G & A GENERAL PROFESSIONAL SERVICES 112.50 2,000.00O'LEARY DARBY ESCROWS PMC ESCROW 2,000.00 383.45OLSON JEROME AND NANCY WATER UTILITY G&A GENERAL CUSTOMERS 383.45 140.00OLSON STEVE WESTWOOD G & A GENERAL SUPPLIES 140.00 53.00ON SITE SANITATION NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICES 1,068.67FIELD MAINT OTHER CONTRACTUAL SERVICES 106.00SPECIAL EVENTS GENERAL SUPPLIES 1,076.86PORTABLE TOILETS OTHER CONTRACTUAL SERVICES 103.50ICE RENTAL NON-TAXABLE OTHER CONTRACTUAL SERVICES 2,408.03 8,327.19ONE HOUR HEATING & AIR CONDITIONING WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 8,327.19 4.09ORRICK JULIE WATER UTILITY G&A GENERAL CUSTOMERS 4.09 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 35 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 35Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 290.37OXYGEN SERVICE COMPANY INC OPERATIONS OPERATIONAL SUPPLIES 290.37 2,833.50PACE ANALYTICAL SERVICES INC REILLY BUDGET OTHER CONTRACTUAL SERVICES 2,833.50 55.69PAINTERS GEAR INC PAINTING EQUIPMENT PARTS 55.69 31.25PANNKUK MGMT GROUP WATER UTILITY G&A GENERAL CUSTOMERS 31.25 890.00PAPER ROLL PRODUCTS POLICE G & A OPERATIONAL SUPPLIES 890.00 19.45PARIS JASON AND AMY WATER UTILITY G&A GENERAL CUSTOMERS 19.45 169.23PARKER, JON POLICE G & A MEETING EXPENSE 169.23 354.06PARTSMASTERGENERAL REPAIR GENERAL SUPPLIES 354.06 279.03PARTSTREE.COM GENERAL FUND BALANCE SHEET INVENTORY 279.03 700.00PATRIOT 2000 INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 700.00 75.00PAULIS KENNETH WATER UTILITY G&A GENERAL CUSTOMERS 75.00 15,200.00PEARSON BROTHERS INC STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 15,200.00 28.08PETERSON AARON WATER UTILITY G&A GENERAL CUSTOMERS 28.08 38.31PETERSON MEGAN WATER UTILITY G&A GENERAL CUSTOMERS 38.31 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 36 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 36Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 2,500.00PETTY CASH GENERAL FUND BALANCE SHEET PETTY 60.00POLICE G & A SEMINARS/CONFERENCES/PRESENTAT 6.00POLICE G & A TRAVEL/MEETINGS 150.00SPECIAL EVENTS OTHER CONTRACTUAL SERVICES 2,716.00 69.39PETTY CASH - WWNC WESTWOOD G & A GENERAL SUPPLIES 39.17FAMILY PROGRAMS GENERAL SUPPLIES 19.32SUMMER CAMP GENERAL SUPPLIES 127.88 480.00PFANNENSTEIN, CHARLES GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 480.00 5,927.34PFM ASSET MANAGEMENT CITY POOLED INVESTMENTS BANK CHARGES/CREDIT CD FEES 5,927.34 3,500.00PICKETT MICHEAL ESCROWS PMC ESCROW 3,500.00 18.28PLANT & FLANGED EQUIPMENT WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 18.28 990.00POLICEONE.COM POLICE G & A TRAINING 990.00 3,221.34POLLARD WATER WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 3,221.34 757.75POMP'S TIRE SERVICE INC GENERAL FUND BALANCE SHEET INVENTORY 757.75 1,350.00POVOLNY SPECIALTIES CONSTRUCTION MATERIAL OTHER CONTRACTUAL SERVICES 1,350.00 424.90POWERPLAN OIB NATURAL RESOURCES G & A GENERAL SUPPLIES 424.90 4,965.00PRAIRIE RESTORATIONS INC PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 1,570.00STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 37 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 37Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 540.00FIELD MAINT OTHER CONTRACTUAL SERVICES 280.00INVASIVE PLANT MGMT/RESTORATIO OTHER CONTRACTUAL SERVICES 7,355.00 446.87PRECISE MRM LLC PUBLIC WORKS OPS G & A MACHINERY & AUTO EQUIPMENT 446.86WATER UTILITY G&A MACHINERY & AUTO EQUIPMENT 446.87SEWER UTILITY G&A MACHINERY & AUTO EQUIPMENT 446.87STORM WATER UTILITY G&A MACHINERY & AUTO EQUIPMENT 1,787.47 321.77PREMIUM WATERS INC OPERATIONS OPERATIONAL SUPPLIES 321.77 469.70PRO HEADSETS E-911 PROGRAM OFFICE EQUIPMENT 469.70 900.00PROS OF THE ROPE LLC HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 900.00 787.00PUMP & METER SERVICE VEHICLE MAINTENANCE G&A EQUIPMENT MTCE SERVICE 1,342.00GENERAL REPAIR BUILDING MTCE SERVICE 2,129.00 16,240.00QUALITY FLOW SYSTEMS INC SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 16,240.00 555.00R & R SPECIALTIES REC CENTER BUILDING EQUIPMENT PARTS 22.95REC CENTER BUILDING EQUIPMENT MTCE SERVICE 577.95 1,635.00RAINBOW LAWNCARE SSD 1 G&A OTHER CONTRACTUAL SERVICES 1,695.00SSD 2 G&A OTHER CONTRACTUAL SERVICES 810.00SSD 3 G&A OTHER CONTRACTUAL SERVICES 900.00SSD #4 G&A OTHER CONTRACTUAL SERVICES 870.00SSD #5 G&A OTHER CONTRACTUAL SERVICES 5,910.00 214.20RAINBOW TREECARE BEAUTIFICATION / FLOWERS OTHER CONTRACTUAL SERVICES 214.20 1.17RANDY'S ELECTRIC INSPECTIONS G & A DUE TO OTHER GOVTS City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 38 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 38Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 106.11INSPECTIONS G & A ELECTRICAL 107.28 7,945.89RANDY'S ENVIORMENTAL SERVICES FACILITIES MCTE G & A GARBAGE/REFUSE SERVICE 4,317.20REC CENTER BUILDING GARBAGE/REFUSE SERVICE 12,263.09 1,468.00READY PROPERTY PRESERVATION SPEC ASSMT CONSTRUCTION OTHER CONTRACTUAL SERVICES 1,468.00 3,210.00READY WATT ELECTRIC OPERATIONS EMERGENCY PREPAREDNESS 3,210.00 15,645.00RECON ROBOTICS INC EQUIP/VEHICLE REPLACEMENT MACHINERY & AUTO EQUIPMENT 15,645.00 157.83RECREATION SUPPLY CO AQUATIC PARK BUDGET OPERATIONAL SUPPLIES 157.83 4,463.50RECYCLING ASSOC OF MN STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 4,463.50 256.22REGENCY BUSINESS SOLUTIONS POLICE G & A OFFICE SUPPLIES 256.22 450.00REGENTS OF THE UNIVERSITY OF MINNESOTA PUBLIC WORKS OPS G & A TRAINING 225.00SEWER UTILITY G&A TRAINING 396.00WESTWOOD G & A GENERAL SUPPLIES 1,071.00 2,920.00REHRIG PACIFIC CO SOLID WASTE COLLECTIONS OTHER 2,920.00 960.00RENAISSANCE LEARNING LLC HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 960.00 336.58REVITALIZE DESIGN AND REHABILITATION WATER UTILITY G&A GENERAL CUSTOMERS 336.58 2,721.95RICOH USA INC IT G & A EQUIPMENT MTCE SERVICE 2,721.95 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 39 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 39Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 72,028.45RJM CONSTRUCTION LLC MUNICIPAL BLDG BUILDINGS & STRUCTURES 72,028.45 327.63ROBERT B HILL CO REC CENTER BUILDING OPERATIONAL SUPPLIES 327.63 24,590.92ROSEVILLE MIDWAY FORD CAPITAL REPLACEMENT B/S INVENTORY 24,590.92 3,600.00RTVISION INC ENGINEERING G & A COMPUTER SERVICES 3,600.00 3,376.80SAFE LIFE DEFENSE EQUIP/VEHICLE REPLACEMENT MACHINERY & AUTO EQUIPMENT 3,376.80 322.16SAFELITE FULFILLMENT INC GENERAL REPAIR EQUIPMENT MTCE SERVICE 322.16 225.00SALA ARCHITECTS INC MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 225.00 88.01SAUTBINE ERIC & JESSICA WATER UTILITY G&A GENERAL CUSTOMERS 88.01 837.00SAVATREETREE DISEASE PRIVATE CLEANING/WASTE REMOVAL SERVICE 837.00 152.60SCHAAKE COMPANY, AJ HUMAN RESOURCES RECOGNITION 152.60 235.00SCHARPEN HANNAH VOLLEYBALL PROGRAM REVENUE 235.00 2,582.88SCHINDLER ELEVATOR CORP FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 2,582.88 84.94SCHLETTY CHRIS WATER UTILITY G&A GENERAL CUSTOMERS 84.94 2,022.14SCHMITZ AMBER INSTRUCTIONAL SKATING LESSONS GENERAL SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 40 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 40Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 2,022.14 35.00SCHUTZ, JOANN BEAUTIFICATION / FLOWERS PARK MAINTENANCE 35.00 500.00SCOTT NELSON COACHING INC COMM DEV PLANNING G & A TRAINING 625.00ENGINEERING G & A TRAINING 1,125.00 48.54SEARLE, HUGO OPERATIONS SEMINARS/CONFERENCES/PRESENTAT 48.54 2,150.00SEHENGINEERING G & A GENERAL PROFESSIONAL SERVICES 4,240.87STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 6,390.87 145.00SETS DESIGN INC.POLICE G & A OPERATIONAL SUPPLIES 230.00COMMUNICATIONS/GV REIMBURSEABL OPERATIONAL SUPPLIES 375.00 1,545.00SHADYWOOD TREE EXPERTS & LANDSCAPING TREE DISEASE PRIVATE CLEANING/WASTE REMOVAL SERVICE 4,868.00TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICE 6,413.00 9,831.00SHAPCO PRINTING INC COMM & MARKETING G & A PRINTING & PUBLISHING 9,831.00 15.96SHRED-IT USA MINNEAPOLIS ADMINISTRATION G & A GENERAL PROFESSIONAL SERVICES 14.25FINANCE G & A GENERAL PROFESSIONAL SERVICES 79.80POLICE G & A OTHER CONTRACTUAL SERVICES 15.96WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 125.97 209.00SHRMHUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPS 209.00 250.00SIEGEL, DIANE GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 250.00 4,335.00SIGNATURE MECHANICAL INC PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 2,376.00UNINSURED LOSS G&A UNINSURED LOSS City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 41 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 41Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 6,711.00 212.50SINGER ANN GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 212.50 3,388.00SITEIMPROVE INC TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 3,388.00 994.92SITEONE LANDSCAPE SUPPLY LLC IRRIGATION MAINTENANCE GENERAL SUPPLIES 88.25PARK BUILDING MAINTENANCE GENERAL SUPPLIES 1,083.17 1,670.40SLP FF ASSOC IAFF LOCAL #993 EMPLOYEE BENEFITS FUND BAL SHT UNION DUES 1,670.40 887.77SLP SEEDS HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 1,000.00YOUTH PROGRAMS OTHER CONTRACTUAL SERVICES 1,887.77 122.96SMITH JACQUELINE COMM & MARKETING G & A MILEAGE-PERSONAL CAR 122.96 84.00SNEAD CHRISTINA SUMMER CAMP REFUNDS & REIMBURSEMENTS 84.00 1,815.48SNYDER ELECTRIC PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 1,368.04PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICES 3,183.52 209.00SOCIETY FOR HUMAN RESOURCE MANAGEMENTHUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPS 209.00 342.54SOJOURNER ALICIA ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 342.54 994.00SOLARWINDSTECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 994.00 4,210.21SPECIALIZED ENVIRONMENTAL TECH INC SOLID WASTE COLLECTIONS YARD WASTE SERVICE 4,210.21 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 42 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 42Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 182.27SPEER SARAH WATER UTILITY G&A GENERAL CUSTOMERS 182.27 105.67SPS COMPANIES INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 98.43PARK BUILDING MAINTENANCE GENERAL SUPPLIES 1,903.64REC CENTER BUILDING MAINTENANCE 2,107.74 5,152.46SRF CONSULTING GROUP INC TRAFFIC MGMT ADMIN FEE TRAFFIC MGMT FEE STUDY REVENUE 179.27TRAFFIC CONTROL OTHER CONTRACTUAL SERVICES 105,793.17STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 111,124.90 13,000.00SS MNRI, LLC RIGHT-OF-WAY OTHER CONTRACTUAL SERVICES 13,000.00 51,500.00ST CROIX RECREATION FUN PLAYGROUNDS INC PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 17,172.96PARK BUILDING MAINTENANCE OTHER IMPROVEMENT SUPPLIES 68,672.96 1,200.00ST. CLOUD REFRIGERATION, INC.RECREATION OUTDOOR CENTER OPERATIONAL SUPPLIES 1,200.00 252.72STAR TRIBUNE ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPS 252.72 115.94STARRETT JW HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 115.94 637.50STEARNS, DAVID SOFTBALL OTHER CONTRACTUAL SERVICES 637.50 250.00STEFFENHAGEN SERENA GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 250.00 1,357.00STEPP MANUFACTURING CO INC GENERAL FUND BALANCE SHEET INVENTORY 1,357.00 927.06STEVENS JEFF TRAINING SEMINARS/CONFERENCES/PRESENTAT 927.06 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 43 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 43Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 142.58STILLMAN JUSTIN WATER UTILITY G&A GENERAL CUSTOMERS 142.58 425.00STREICHER'S POLICE G & A POLICE EQUIPMENT 72.00ERUOPERATIONAL SUPPLIES 28.99OPERATIONSPROTECTIVE CLOTHING 525.99 325.26SUBURBAN TIRE WHOLESALE GENERAL FUND BALANCE SHEET INVENTORY 325.26 46,519.54SUMMIT ENVIROSOLUTIONS INC REILLY G & A GENERAL PROFESSIONAL SERVICES 46,519.54 608.95SUNSOURCEGENERAL REPAIR EQUIPMENT MTCE SERVICE 608.95 4,014.00SWANSON & YOUNGDALE INC MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 4,014.00 201.05SWANSON FLO-SYSTEMS CO WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 201.05 1,047.50TAHO SPORTSWEAR PLAYGROUNDS OPERATIONAL SUPPLIES 937.10LIFEGUARDINGOPERATIONAL SUPPLIES 869.70POOL MONITORS OPERATIONAL SUPPLIES 2,854.30 243.75TEGEN KRISTEN GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 243.75 116.10TELELANGUAGE INC ADMINISTRATION G & A OTHER CONTRACTUAL SERVICES 116.10 134.00TENNANT SALES AND SERVICE CO.GENERAL FUND BALANCE SHEET INVENTORY 840.15GENERAL REPAIR EQUIPMENT MTCE SERVICE 974.15 135.60TERMINAL SUPPLY CO GENERAL REPAIR GENERAL SUPPLIES 135.60 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 44 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 44Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 2,118.48TERMINIX INT FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 87.00BRICK HOUSE (1324)BUILDING MTCE SERVICE 87.00WW RENTAL HOUSE (1322)BUILDING MTCE SERVICE 2,292.48 40.00TEXA TONKA TAILORING OPERATIONS GENERAL PROFESSIONAL SERVICES 40.00 2,709.68THE MPX GROUP COMM & MARKETING G & A PRINTING & PUBLISHING 2,709.68 93.42THE SHERWINN WILLIAMS CO WATER UTILITY G&A BLDG/STRUCTURE SUPPLIES 57.20MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 302.01REC CENTER BUILDING OPERATIONAL SUPPLIES 452.63 134.00THE SIGN PRODUCERS FACILITIES MCTE G & A GENERAL SUPPLIES 134.00 138.68THE STANDARD ADMINISTRATION G & A LIFE INSURANCE 141.11ADMINISTRATION G & A LONG TERM DISABILITY 85.09HUMAN RESOURCES LIFE INSURANCE 88.48HUMAN RESOURCES LONG TERM DISABILITY 61.21COMM & MARKETING G & A LIFE INSURANCE 59.99COMM & MARKETING G & A LONG TERM DISABILITY 111.63IT G & A LIFE INSURANCE 121.89IT G & A LONG TERM DISABILITY 106.30ASSESSING G & A LIFE INSURANCE 104.22ASSESSING G & A LONG TERM DISABILITY 121.79FINANCE G & A LIFE INSURANCE 120.48FINANCE G & A LONG TERM DISABILITY 269.11COMM DEV G & A LIFE INSURANCE 276.49COMM DEV G & A LONG TERM DISABILITY 64.01FACILITIES MCTE G & A LIFE INSURANCE 62.83FACILITIES MCTE G & A LONG TERM DISABILITY 1,053.85POLICE G & A LIFE INSURANCE 1,039.19POLICE G & A LONG TERM DISABILITY 96.77COMMUNICATIONS/GV REIMBURSEABL LIFE INSURANCE 95.04COMMUNICATIONS/GV REIMBURSEABL LONG TERM DISABILITY 479.81OPERATIONSLIFE INSURANCE 474.40OPERATIONSLONG TERM DISABILITY City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 45 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 45Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 312.29INSPECTIONS G & A LIFE INSURANCE 325.63INSPECTIONS G & A LONG TERM DISABILITY 98.17PUBLIC WORKS G & A LIFE INSURANCE 100.38PUBLIC WORKS G & A LONG TERM DISABILITY 223.52ENGINEERING G & A LIFE INSURANCE 222.70ENGINEERING G & A LONG TERM DISABILITY 209.55PUBLIC WORKS OPS G & A LIFE INSURANCE 206.60PUBLIC WORKS OPS G & A LONG TERM DISABILITY 48.51CABLE TV G & A LIFE INSURANCE 47.52CABLE TV G & A LONG TERM DISABILITY 20.19HOUSING REHAB G & A LIFE INSURANCE 19.85HOUSING REHAB G & A LONG TERM DISABILITY 136.40WATER UTILITY G&A LIFE INSURANCE 121.95WATER UTILITY G&A LONG TERM DISABILITY 67.31SEWER UTILITY G&A LIFE INSURANCE 78.47SEWER UTILITY G&A LONG TERM DISABILITY 25.91SOLID WASTE G&A LIFE INSURANCE 25.27SOLID WASTE G&A LONG TERM DISABILITY 16.89ENVIRONMENT & SUSTAINABILITY LIFE INSURANCE 16.59ENVIRONMENT & SUSTAINABILITY LONG TERM DISABILITY 68.58STORM WATER UTILITY G&A LIFE INSURANCE 54.67STORM WATER UTILITY G&A LONG TERM DISABILITY 8,772.42EMPLOYEE BENEFITS FUND G&A LIFE INSURANCE 125.98ORGANIZED REC G & A LIFE INSURANCE 128.64ORGANIZED REC G & A LONG TERM DISABILITY 137.80PARK MAINTENANCE G & A LIFE INSURANCE 135.18PARK MAINTENANCE G & A LONG TERM DISABILITY 20.19NATURAL RESOURCES G & A LIFE INSURANCE 19.85NATURAL RESOURCES G & A LONG TERM DISABILITY 64.77WESTWOOD G & A LIFE INSURANCE 56.38WESTWOOD G & A LONG TERM DISABILITY 125.73REC CTR DIV NON DPT BUDGET LIFE INSURANCE 123.32REC CENTER SALARIES LONG TERM DISABILITY 68.20VEHICLE MAINTENANCE G&A LIFE INSURANCE 66.77VEHICLE MAINTENANCE G&A LONG TERM DISABILITY 17,464.55 205.05THE UPS STORE WATER UTILITY G&A OPERATIONAL SUPPLIES 205.05 7,703.75THE WILEY LAW OFFICE HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 46 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 46Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 7,703.75 1,000.00THOMPSON PAUL ESCROWS PMC ESCROW 1,000.00 290.23THOMSON REUTERS WEST PAYMENT CENTER POLICE G & A OTHER CONTRACTUAL SERVICES 290.23 685.85THRIVEPASSEMPLOYEE BENEFITS FUND G&A GENERAL PROFESSIONAL SERVICES 685.85 50.66THUROW NICHOLAS WATER UTILITY G&A GENERAL CUSTOMERS 50.66 1,026.00TIMESAVER OFF SITE SECRETARIAL ADMINISTRATION G & A OTHER CONTRACTUAL SERVICES 1,026.00 151.67TKDAWATER UTILITY G&A ENGINEERING SERVICES 151.67 172.00TNC INDUSTRIES INC FACILITIES MCTE G & A GENERAL SUPPLIES 172.00 110.00TODD ERIKA WATER UTILITY G&A GENERAL CUSTOMERS 110.00 10.98TOLL GAS & WELDING SUPPLY WATER UTILITY G&A GENERAL SUPPLIES 10.98 109.77TOMINI JENNIFER WATER UTILITY G&A GENERAL CUSTOMERS 109.77 9,093.75TRAFFIC DATA INC ENGINEERING G & A GENERAL PROFESSIONAL SERVICES 7,505.63STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 16,599.38 206.00TRANSPORT GRAPHICS OPERATIONS OPERATIONAL SUPPLIES 206.00 204.00TRAUTMANN, JOHN SOFTBALL OTHER CONTRACTUAL SERVICES 204.00 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 47 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 47Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 26,800.00TRI STATE BOBCAT CAPITAL REPLACEMENT B/S INVENTORY 26,800.00 2,978.38TRUGREEN - MTKA 5640 PARK GROUNDS MAINTENANCE OTHER CONTRACTUAL SERVICES 2,978.38 947.61TURNQUIST MADELINE EMPLOYEE BENEFITS FUND G&A TUITION 947.61 817.87TUURI CHRISTINE POLICE G & A TRAVEL/MEETINGS 817.87 5,529.90TWIN CITY GARAGE DOOR CO FACILITIES MCTE G & A BUILDING MTCE SERVICE 5,529.90 3,189.62TWIN CITY OUTDOOR SERVICES INC SNOW PLOWING OTHER CONTRACTUAL SERVICES 17,962.00SSD 1 G&A OTHER CONTRACTUAL SERVICES 6,377.00SSD 3 G&A OTHER CONTRACTUAL SERVICES 27,528.62 300.00TWIN CITY SIGN INSTALLATIONS SSD 1 G&A OTHER CONTRACTUAL SERVICES 250.00SSD 2 G&A OTHER CONTRACTUAL SERVICES 200.00SSD 3 G&A OTHER CONTRACTUAL SERVICES 150.00SSD #4 G&A OTHER CONTRACTUAL SERVICES 1,000.00SSD #5 G&A OTHER CONTRACTUAL SERVICES 1,900.00 720.00UHL CO INC FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 963.58FACILITIES MCTE G & A BUILDING MTCE SERVICE 513.56TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 4,587.85TECHNOLOGY REPLACEMENT IMPROVEMENTS OTHER THAN BUILDI 4,073.00MUNICIPAL BLDG OFFICE EQUIPMENT 1,369.84PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 465.00REC CENTER BUILDING BUILDING MTCE SERVICE 12,692.83 373.14ULINEWATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 373.14 39.93UNDIS DON WATER UTILITY G&A GENERAL CUSTOMERS City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 48 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 48Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 39.93 168.00UNITED WAY OF MINNEAPOLIS AREA EMPLOYEE BENEFITS FUND BAL SHT UNITED WAY 168.00 266.92US AUTOFORCE GENERAL FUND BALANCE SHEET INVENTORY 266.92 944.29US DEPARTMENT OF TREASURY EMPLOYEE BENEFITS FUND BAL SHT WAGE GARNISHMENTS 944.29 1,451.46USA BLUE BOOK SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 1,451.46 8,940.00VALLEY LAKE FLOORING CO INC PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 8,940.00 17,138.13-VALLEY PAVING INC STREET CAPITAL PROJ BAL SHEET RETAINAGE PAYABLE 342,762.63STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 325,624.50 13,131.43VALLEY-RICH CO INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 5,534.64SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 18,666.07 610.14VAN PAPER COMPANY CONCESSIONS CONCESSION SUPPLIES 610.14 31.90VAUGHAN, JIM NATURAL RESOURCES G & A MILEAGE-PERSONAL CAR 31.90 20.00VERIFIED CREDENTIALS HUMAN RESOURCES RECRUITMENT 20.00 50.04VERIZON WIRELESS SEWER UTILITY G&A TELEPHONE 36,149.07CELLPHONES, IPADS, ETC.OFFICE EQUIPMENT 140.92CELLPHONES, IPADS, ETC.TELEPHONE 36,340.03 764.17VIKING INDUSTRIAL CTR ROUTINE MAINTENANCE OPERATIONAL SUPPLIES 2,620.40WATER UTILITY G&A OPERATIONAL SUPPLIES City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 49 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 49Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 3,384.57 588.50-VINCO, INC.CAPITAL REPLACEMENT B/S RETAINAGE PAYABLE 11,770.00MUNICIPAL BLDG BUILDINGS & STRUCTURES 11,181.50 105.12VIPOND KARA WATER UTILITY G&A GENERAL CUSTOMERS 105.12 693.60VOIGT JUDY BEAUTIFICATION / FLOWERS OTHER IMPROVEMENT SUPPLIES 693.60 391.00WARNING LITES OF MN INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 338.00HOLIDAY PROGRAMS GENERAL SUPPLIES 729.00 3,121.60WASHINGTON COUNTY E-911 PROGRAM OTHER CONTRACTUAL SERVICES 3,121.60 3,627.64WASTE MANAGEMENT OF WI-MN SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 4,458.58SOLID WASTE G&A GENERAL CUSTOMERS 66,929.36SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 37,539.40SOLID WASTE COLLECTIONS RECYCLING SERVICE 24,000.60SOLID WASTE COLLECTIONS YARD WASTE SERVICE 37,086.96SOLID WASTE COLLECTIONS ORGANICS 32,933.56SOLID WASTE DISPOSAL GARBAGE/REFUSE SERVICE 206,576.10 4,597.78WATER CONSERVATION SERVICE INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 4,597.78 2,215.00WEBBER RECREATIONAL DESIGN PARK EQUIPMENT MAINTENANCE OTHER IMPROVEMENT SUPPLIES 2,215.00 108.72WEBER COREY WATER UTILITY G&A GENERAL CUSTOMERS 108.72 59.12WEBER JOE WATER UTILITY G&A GENERAL CUSTOMERS 59.12 1,106.65WEIGEL, GREG POLICE G & A TRAVEL/MEETINGS City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 50 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 50Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 1,106.65 38.00WELLS FARGO POLICE G & A OTHER CONTRACTUAL SERVICES 38.00 117.35WELLS JULIE HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 117.35 185.00WENDORFF MICHAEL WATER UTILITY G&A GENERAL CUSTOMERS 185.00 331.16WESTWOOD HILLS NEIGHBORHOOD ASSOC.HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 331.16 1,404.07WHITE, PERRY PUBLIC WORKS G & A SEMINARS/CONFERENCES/PRESENTAT 1,404.07 158.31WILLENBRING, ANDY OPERATIONS SEMINARS/CONFERENCES/PRESENTAT 158.31 540.15WILLIAMS CASSANDRA WATER UTILITY G&A GENERAL CUSTOMERS 540.15 1,697.96WILLIAMS, TIM PUBLIC WORKS G & A SEMINARS/CONFERENCES/PRESENTAT 1,697.96 12,005.00WILLMAR WOOD PRODUCTS INC MUNICIPAL BLDG IMPROVEMENTS OTHER THAN BUILDI 12,005.00 1,500.00WINCAN LLC SEWER UTILITY G&A OFFICE EQUIPMENT 1,500.00 135.97WINSUPPLY OF EDEN PRAIRIE SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 135.97 134.38WITMER PUBLIC SAFETY GROUP INC OPERATIONS SMALL TOOLS 134.38 12.92WS & D PERMIT SERVICE INSPECTIONS G & A DUE TO OTHER GOVTS 450.00INSPECTIONS G & A BUILDING 462.92 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 51 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 51Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 825.00WSB ASSOC INC ENGINEERING G & A GENERAL PROFESSIONAL SERVICES 1,144.00PUBLIC WORKS OPS G & A GENERAL PROFESSIONAL SERVICES 12,717.25PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 17,592.50STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 4,781.50TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 37,060.25 12,846.94XCEL ENERGY FACILITIES MCTE G & A ELECTRIC SERVICE 23.76OPERATIONSEMERGENCY PREPAREDNESS 20,719.29PUBLIC WORKS OPS G & A ELECTRIC SERVICE 40.69HOUSING REHAB BALANCE SHEET LAND HELD FOR RESALE 44,639.55GO BONDS - NATURE CENTER G&A BUILDINGS & STRUCTURES 27,116.92WATER UTILITY G&A ELECTRIC SERVICE 1,336.61REILLY BUDGET ELECTRIC SERVICE 4,384.82SEWER UTILITY G&A ELECTRIC SERVICE 2,821.91STORM WATER UTILITY G&A ELECTRIC SERVICE 3,597.79PARK MAINTENANCE G & A ELECTRIC SERVICE 32.62BRICK HOUSE (1324)ELECTRIC SERVICE 46.36WW RENTAL HOUSE (1322)ELECTRIC SERVICE 529.51WESTWOOD G & A ELECTRIC SERVICE 16,857.34REC CENTER BUILDING ELECTRIC SERVICE 134,994.11 2,333.00YTS COMPANIES LLC TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICE 2,333.00 241.32ZANDER, LOIS HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLE 241.32 2,400.00ZEMSKY & ASSOCIATE CONSULTING ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 2,400.00 86.06ZEP SALES AND SERVICE GENERAL REPAIR GENERAL SUPPLIES 86.06 485.35ZIEGLER INC GENERAL FUND BALANCE SHEET INVENTORY 485.35 905.96ZIP PRINTING ASSESSING G & A OFFICE SUPPLIES 905.96 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 52 6/7/2019CITY OF ST LOUIS PARK 13:17:51R55CKS2 LOGIS400V 52Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20194/27/2019 - Amount ObjectVendorBU Description 819.00ZUERCHER TECHNOLOGIES LLC TECHNOLOGY REPLACEMENT IMPROVEMENTS OTHER THAN BUILDI 819.00 Report Totals 5,064,495.41 City council meeting of June 17, 2019 (Item No. 4a) Title: Approval of city disbursements Page 53 Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4b Executive summary Title: Second reading - mixed use zoning district amendment Recommended action: Motion to approve second reading and adopt Ordinance amending Division 9. M-X Mixed Use and additional amendments relating to the M-X district allowed land uses, density and building massing, and amendments relating to parking regulations, sign regulations, and architectural design for properties in the M-X district (Sections 36-115, 36-361, 36-362, and 36-366) and approve the Summary Ordinance for publication. Policy consideration: Does city council wish to update the mixed use zoning district and related provisions? Summary: The City of St. Louis Park’s current M-X Mixed Use zoning district requires a planned unit development (PUD) overlay in order to allow for mixed-use buildings. In 2015, the city adopted a specific PUD zoning district, which made the existing M-X district obsolete, except for mixed use developments previously approved under the old code. On December 17, 2018 the city council approved the St. Louis Park 2040 comprehensive plan for submittal to the Metropolitan Council. It is expected that the Metropolitan Council will accept the plan July 10, 2019, and the plan will be placed into effect immediately following. The plan re-guides several properties on the future land use map to mixed use. Therefore, it is a high priority to update the mixed-use zoning ordinance so it is consistent with the St. Louis Park 2040 land use plan. City council voted 6 to 0 to approve the first reading of the ordinance on May 20, 2019 and set the second reading for June 17, 2019. Financial or budget considerations: None. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: • Discussion • 2040 comprehensive plan future land use map highlighting properties guided mixed use • Summary Ordinance for publication • Ordinance Prepared by: Jennifer Monson, Planner Reviewed by: Sean Walther, Planning and Zoning Supervisor Karen Barton, Community Development Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4b) Page 2 Title: Second reading - mixed use zoning district amendment Discussion Background: Historically, the City of St. Louis Park rezoned properties to an M-X Mixed Use zoning district and applied a planned unit development (PUD) overlay to allow for mixed-use buildings. In 2015, the city adopted a new PUD zoning district, which made the existing M-X district obsolete, except for existing mixed use developments that had previously been approved by the city. On December 17, 2018 the city council approved the St. Louis Park 2040 comprehensive plan for submittal to the Metropolitan Council. It is expected that the Metropolitan Council will accept the plan on July 10, 2019, and the plan will be placed into effect immediately following. The plan re-guides several properties on the future land use map to mixed use. Therefore, it is a high priority to update the mixed use district regulations so it they are consistent with the St. Louis Park 2040 land use plan. Present considerations: The city proposes amendments to the existing M-X district to provide a zoning district that creates a district-wide standard for mixed-use developments that are site and context sensitive, and will weave more mixed-use buildings into the fabric of St. Louis Park’s built environment. As of today, there are no undeveloped (or underdeveloped) parcels zoned for mixed-use, so the city will need to amend the zoning map to apply this new district to more properties. An open house meeting regarding proposed re-zonings of properties throughout the city due to the comprehensive plan, including specific properties proposed to be rezoned to the M-X District, was held on May 8, 2019. Approximately 10 people attended and feedback received regarding the mixed use district was positive. Since the fall of 2017, the planning commission conducted 10 study sessions, including a walking tour of the West End, to discuss regulations within the M-X district including building orientation, scale, height, build-to-lines, building length, uses, density, density bonuses, and the draft ordinance. Items that were not discussed during study sessions, including references to other portions of the code, have no proposed changes. City council conducted a study session on March 11, 2019 to review and discuss new concepts and portions of the draft ordinance, and on May 13, 2019 staff provided a written report to city council that presented more details about the density bonus concepts and point values proposed in the ordinance. The planning commission held a public hearing on April 17, 2019. There were no public comments made, and the commission voted unanimously to recommend the adoption of the updated mixed-use zoning ordinance. City council voted 6 to 0 to approve the first reading of the ordinance on May 20, 2019 and set the second reading for June 17, 2019. City council meeting of June 17, 2019 (Item No. 4b) Page 3 Title: Second reading - mixed use zoning district amendment 2040 comprehensive plan future land use map highlighting mixed use guided properties City council meeting of June 17, 2019 (Item No. 4b) Page 4 Title: Second reading - mixed use zoning district amendment SUMMARY FOR PUBLICATION Ordinance No. ____-19 An ordinance relating to the mixed use zoning district and related land use, parking, sign, and architectural design requirements This ordinance amends Division 9. M-X Mixed Use Zoning District, including amendments to allowed uses, density, and building massing. Additional amendments relating to the M-X district are proposed to land use, parking regulations, sign regulations, and architectural design provisions of the zoning code (Sections 36-115, 36-361, 36-362, and 36-366). This ordinance shall take effect 15 days after publication. Adopted by the City Council June 17, 2019 Jake Spano /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: June 27, 2019 City council meeting of June 17, 2019 (Item No. 4b) Page 5 Title: Second reading - mixed use zoning district amendment Ordinance No. -19 Ordinance relating to the mixed use district and related land use, parking, sign, and architectural design requirements The City of St. Louis Park does ordain: Section 1. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 19-08-ZA). Section 2. Chapter 36 of the St. Louis Park City Code is hereby amended by completely deleting and reinstating Division 9. M-X Mixed Use District. d deleting strikethrough text. Section breaks are represented by ***. Section 3. Sections of Chapter 36 of the St. Louis Park City Code are hereby amended by adding underscored text an ARTICLE IV. ZONING DISTRICTS DIVISION 9. M-X MIXED USE DISTRICT Sec. 36-261. Purpose. The purposes of the M-X mixed use district are to: (1) Provide appropriate areas for and facilitate quality mixed use development in activity centers that are consistent with the Comprehensive Plan’s land use and transportation goals and strategies; (2) Provide a variety of residential housing types and densities to assure activity and support a mix of uses, and enhance the housing choices of city residents; (3) Integrate new mixed use development with its surroundings by encouraging connections for pedestrians, bicyclists, and vehicles and by assuring sensitive, compatible use, scale, and operational transitions to neighborhood uses; (4) Encourage reductions in impervious surface by minimizing surface parking and retain open space by encouraging taller buildings for high-density uses; and (5) Promote high quality architectural design, materials, and innovative site design. Sec. 36-262. Definitions. The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning. City council meeting of June 17, 2019 (Item No. 4b) Page 6 Title: Second reading - mixed use zoning district amendment Building Height to Street Width means the percentage of the building height compared to the adjacent street width. The street width means half of the right-of-way width from the centerline, including all sidewalks, easements and street yard. This regulation shall not prohibit additional building height with the addition of a stepback. Example: Building height is 60 percent of the street width. | centerline Build-to Zone means the minimum and maximum distance a structure may be placed from a lot line. Build-to zones are measured from the outside edge of any public access easement for sidewalk or the right-of-way, if no public access easement for sidewalk is required or exists. Commuter Bicycle Facilities means bike lockers, on-site showers, and a bicycle repair station. Courtyard means an outdoor area enclosed by a building facade on at least 3 sides and open to the sky. Frontage means the building and lot area facing and directly adjacent to a street right-of- way line. Frontage, Primary means a frontage that receives priority over other frontages, defining a higher level of pedestrian orientation. The primary frontages is identified in the comprehensive plan as a collector or arterial. If there are two primary streets, or no primary streets, the Zoning Administrator shall determine the most appropriate frontage to serve as the primary street. Orientation of other parcels along the street and status of the street shall be considered. Frontage, Secondary means a frontage that is secondary to the Primary Frontage, requiring less streetwall coverage and lower transparency levels, and permitting more interruptions by driveways. Secondary frontages are all frontages not identified as a primary frontage, and are categorized as a side yard abutting a street. Impervious Site Coverage means the percentage of a lot developed with principal or accessory structures and impervious surfaces, such as driveways, sidewalks, and patios. City council meeting of June 17, 2019 (Item No. 4b) Page 7 Title: Second reading - mixed use zoning district amendment Inclusionary Commercial Space means a specified reduction of commercial rent only for small local businesses, based on the fair market commercial rents for the building. Lot Line Coverage means the minimum percent of lot frontage that must contain a building. Micro Store Front means a commercial or industrial space a maximum of 1,500 square feet in size only for a small local business. Occupied Space means an interior building space regularly occupied by the building users. It does not include storage areas, utility space, or parking. Pedestrianway means an open and available pathway designed for use by pedestrians; it can be located mid-block allowing pedestrian movement from one street to another without traveling along the block’s perimeter. Small Local Business means a local, independently owned, non-franchised business. Local means located in the Twin Cities Metro Area. Story, Ground. Also referred to as ground floor means the first floor of a building that is level to or elevated above the finished grade on the front and corner facades, excluding basements or cellars. Story, Half means a story either in the base of the building, partially below grade and partially above grade, or a story fully within the roof structure with transparency facing the street. Story, Upper. Also referred to as upper floor means the floors located above the ground story of a building. Street Face means the facade of a building that faces a street right-of-way. Yard, Street means the space on a lot between the principal structure and the primary or secondary street frontage line or street side lot line for the lot and extending to any minimum side or rear setback line. Yard Definition. Yard is defined in Section 36-3 Definitions. For the purposes of this Section, the following standards shall supplement and, where inconsistent, supersede the definition of Section 36-3: 1. Side and Rear Yards Abutting Other Lots, an Alley, or a Rail Right-of-Way means a property located in an area designated as Mixed Use MX, only yards abutting a lot, an alley, or a rail right-of-way at the lot line, and not a street, waterway or other Primary or Secondary frontage, are considered side or rear yards. 2. Front Yards and Side Yards abutting a street are regulated through the designation of Primary and Secondary frontages. Visible Basement means a half story partially below grade and partially exposed above with required transparency on the street facade. City council meeting of June 17, 2019 (Item No. 4b) Page 8 Title: Second reading - mixed use zoning district amendment Zoning Administrator means the zoning administrator or her/his designee. Sec. 36-263. Mixed use restrictions and performance standards. The following restrictions and performance standards shall govern structures and uses permitted in any MX mixed use district: (1) All buildings shall have a vertical mix of land uses, such as residential and commercial, with a strong pedestrian orientation. A use on the ground floor must be different from a use on an upper floor. The second floor may be designed to have the same use as the ground floor so long as there is at least one more floor above the second floor that has a different use from the first two floors. (2) More than one mixed-use building may be placed on one lot in the MX District. (3) Along at least 75 percent of the primary frontage, the building must be designed for non- residential uses. Lobbies and amenity areas serving a residential use or a hotel lobby in the building shall not count as a non-residential use. (4) All non-residential uses located on the ground floor primary and secondary frontage shall have a direct and primary access to and from the primary and/or secondary frontage building façade and the access shall remain open during business hours. (5) All business activities including but not limited to sales, rentals, service, storage, merchandise display, repair, and processing, except for off-street vehicular parking and off-street loading, shall be conducted wholly within an enclosed structure except as specifically permitted elsewhere in this chapter. (6) Outdoor storage shall be prohibited except when specifically permitted elsewhere in this chapter. (7) Business uses shall front on a public way or an interior arcade. (8) All delivery service entrances to a building shall be from a public alley, service-alley, off- street parking lot, or all deliveries shall be made from the curb. (9) All trash, garbage, waste materials, trash containers, and recycling containers shall be located within the building or behind all build-to-lines and shall be kept in the manner required by this Code. All trash handling and loading areas shall be screened from view within a waste enclosure which shall be constructed of complementary materials as the principal building. (10) There shall be no vehicular access within 50 feet of the intersection of the projection of the nearest curblines of any public streets to a parcel on which a commercial use is operated. (11) No storage, display or parking of vehicles shall be allowed in any of the required yards or landscaped areas. City council meeting of June 17, 2019 (Item No. 4b) Page 9 Title: Second reading - mixed use zoning district amendment (12) Surface parking spaces, mechanical equipment, refuse and recycling areas, and loading areas shall not be located within any build-to zone, minimum setback, or street yard. (13) New structures and structures which expand the gross square footage of the structure by more than 50 percent shall be required to place all utility service lines underground. Any new service to an existing building shall be placed underground. (14) Vehicular access for all non-residential uses shall be from a roadway identified in the comprehensive plan or as a collector or arterial or otherwise located so that access can be provided without generating significant traffic on local residential streets. (15) Sidewalks shall be provided along all sides of the lot that abut a public street. (16) A separate pedestrian access shall connect the principal building to the public street or a public trail, on all sides of the lot which front on a public right-of-way or public trail. This access shall be separated from parking areas by curbed, landscaped islands which have a minimum width of 20 feet inclusive of sidewalk. If a transit stop is located on any adjacent public street, access shall be located convenient to that transit stop. Sec. 36-264. Uses. (1) Permitted uses (P). Uses listed in Table 36-264 with a “P” symbol are permitted by- right in the Frontage Types in which they are listed. (2) Uses permitted in limited stories (PL). Uses listed in Table 36-264 with a “PL” symbol are permitted by-right in the Frontage Types in which they are listed, provided that the uses are located in the upper stories of a structure; the basement; or in the ground story, a minimum of 30 feet behind any primary street façade and behind a permitted use. (3) Uses permitted with conditions (PC). Uses listed in Table 36-264 with a “PC” symbol are permitted provided compliance with the listed conditions and requirements. (4) Uses permitted by conditional use permit (CUP). Uses listed in Table 36-264 with a “CUP” symbol require a Conditional Use Permit; refer to 36-33 Conditional Use Permits. City council meeting of June 17, 2019 (Item No. 4b) Page 10 Title: Second reading - mixed use zoning district amendment Table 36-264 Mixed Use District Uses Primary Frontage Secondary Frontage RESIDENTIAL & LODGING USES Multifamily Residential PC PC Live-Work Unit PC PC Roominghouse PL PL State-licensed residential facility PL PL Group home/non-statutory PL PL Nursing Home PL PL Hotel/Motel PC PC Bed and Breakfast establishment PC PC CIVIC & INSTITUTIONAL USES Education/Academic PL P Museum/Library Category P P Police/Fire Station PC PC COMMERCIAL USES Brewery/Micro-distillery PC PC Business/trade school/college PL P Dental Office P P Food Service P P Grocery Store PC PC Liquor Store CUP CUP Medical Office P P Offices PL P Private Entertainment (Indoor) CUP CUP Research and development PL P Retail, less than 8,000 square feet P P Retail, 8,000 square feet or larger PC PC Retail, Large Item PC PC Restaurants PC PC Service facilities, less than 8,000 square feet P P Service facilities, 8,000 square feet or larger PC PC INDUSTRIAL USES Catering PC PC Studios PC PC Printing process/supply PC PC Showrooms PC PC TRANSPORTATION & INFRASTRUCTURE USES Communication antennas CUP CUP Transit Stations P P Sec. 36-265. Uses permitted with conditions (PC). Multifamily Residential Category. (1) Shall be located in the upper stories of a structure; the basement; or in the ground story, a minimum of 30 feet behind any primary street façade and behind a permitted use, or on a secondary, rear, or side facade. City council meeting of June 17, 2019 (Item No. 4b) Page 11 Title: Second reading - mixed use zoning district amendment (2) Dwelling unit entrances are not required to be internal to the building, and individual exterior entrances are encourage for ground floor units (3) Balconies shall serve a single dwelling unit (4) Buildings are discouraged from being massive in scale or institutional in appearance. (5) Use may include leasing and/or property management offices, gym or other fitness facilities for tenants, and meeting rooms as accessory uses. Live-Work Unit. (1) The units shall only be located on a Secondary Street Frontage. Hotel/motel. (1) Shall be located in the upper stories of a structure; the basement; or in the ground story, a minimum of 30 feet behind any primary street façade and behind a permitted use. (2) Rooms shall be accessed from the interior of the building. (3) Secondary service uses may also be provided, such as food service, meeting rooms, pools, and fitness rooms as accessory uses. (4) A lobby and secondary service uses serving the hotel/motel may be provided along 25 percent of the primary frontage. The remaining 75 percent of the primary frontage shall be non-residential uses. Bed and Breakfast establishment. (1) Shall be located in the upper stories of a structure; the basement; or in the ground story, a minimum of 30 feet behind any primary street façade and behind a permitted use. (2) Rooms shall be accessed from the interior of the building. (3) Secondary service uses may also be provided, such as food service and meeting rooms as accessory uses. Police/Fire Station. (1) Garage doors are permitted on the front facade. (2) Stations are exempt from maximum driveway widths. Brewery/Micro-distillery. (1) The brewery/distillery shall not produce more than 20,000 barrels of malt liquor or cases of hard liquor per year. (2) The following additional conditions apply: a. The maximum overall gross floor area is limited to 20,000 square feet. b. A taproom and/or retail outlet is required and shall be located in the Primary Street storefront of the building. c. The taproom and/or retail outlet shall occupy a minimum of 20 percent of the gross floor area with no maximum limit. d. Retail outlet does not include liquor store, which shall be permitted only in accordance with the requirements for liquor store uses for the frontage type. (3) This use may also include associated facilities such as offices and small scale warehousing, but distribution is limited to vans and small trucks. Distribution access shall be from the rear. City council meeting of June 17, 2019 (Item No. 4b) Page 12 Title: Second reading - mixed use zoning district amendment Grocery Store. (1) When the grocery store is part of a mixed use development with residential or office uses above the grocery, the following applies: a. No activity results in any noxious or offensive odors, sounds, vibrations, emissions, or any external nuisances upon adjacent properties. b. Hours of operation, including deliveries, shall be limited to 6 a.m. to 12 a.m. Retail, 8,000 square feet or larger. (1) The retail space shall have an exterior entrance on the primary facade. (2) The retail space shall be located at a corner of the building or near a primary building entrance. (3) The retail space shall not occupy more than 25 percent of the gross floor area of the ground floor. Retail, Large Item (1) The establishment shall be less than 20,000 square feet in size. Restaurant (1) Restaurants with or without intoxicating liquor licenses. a. If there is a wine and/or beer liquor and/or intoxicating liquor license, there shall be no separate bar area within the restaurant. Service Facilities, 8,000 square feet or larger. (1) The service space shall have an exterior entrance on the primary facade. (2) The service space shall be located at a corner of the building or near a primary building entrance. (3) The service space shall not occupy more than 25 percent of the gross floor area of the ground floor. Catering; studio; printing process/supply; showrooms. (1) This use may also include associated facilities such as offices and small scale warehousing, but distribution is limited to vans and small trucks. Distribution access shall be from the rear. (2) The maximum overall gross floor area is limited to 12,000 square feet. (3) A showroom or retail outlet is permitted. (4) If located on a Secondary Frontage the following additional conditions apply: a. The use is permitted only in specifically designated live/work spaces on the ground floor and with its own exterior entrance. b. Distribution shall be from a designated loading area only. (5) If located on a Primary Frontage, the following additional conditions apply: a. A showroom and/or retail outlet is required and shall be located in the Primary Street storefront of the building. b. The showroom and/or retail outlet shall occupy a minimum of 25 percent of the gross floor area. City council meeting of June 17, 2019 (Item No. 4b) Page 13 Title: Second reading - mixed use zoning district amendment Sec. 36-266. Uses permitted by conditional use permit (CUP). Uses listed in Table 36-264 with a “CUP” symbol require a Conditional Use Permit; refer to 36-33 Conditional Use Permits. Liquor Store. (1) The lot must be at least 1,000 feet from the property line of a site containing a pawnshop, currency exchange, payday loan agency, firearms sales or sexually-oriented business. The distance shall be measured from the portion of the center or building occupied by the liquor store. Private Entertainment (Indoor). (1) No activity results in any noxious or offensive odors, sounds, vibrations, emissions, or any external nuisances upon adjacent properties. Communication antennas. (1) Shall be developed in accordance with 36-368 Communication towers and antennas, except that communication antennas located in the MX district shall be co-located atop a permitted building. Sec. 36-267 Accessory Uses. The following uses shall be permitted accessory uses in any MX district. (1) Accessory Off-Street Parking. The following are types of accessory parking permitted: a. Parking Lot. b. Accessory Parking Ramp. i. Accessory parking ramps may be located only behind the rear of the building. ii. Accessory parking ramps located on the secondary frontage shall have active uses on the ground floor street facing facades, and. iii. Accessory parking ramps shall meet the façade requirements for the building. c. Accessory Parking in the Building. Parking may be provided in the rear of the building or fully in any basement, and shall meet the façade requirements for the building. d. Residential parking may be allowed for more than 24 hours. (2) Incidental repair or processing which is necessary to conduct a permitted use and not to exceed 10 percent of the gross floor area of the associated permitted use. (3) Outdoor seating and service of food and beverage, subject to the following conditions: a. Shall be directly adjacent to the structure containing the associated use; City council meeting of June 17, 2019 (Item No. 4b) Page 14 Title: Second reading - mixed use zoning district amendment b. No speakers or other electronic devices which emit sound are permitted if the use is located within 500 feet of a residential use; c. The hours of operation shall be limited to 7:00 a.m. to 10:00 p.m. if the use is located within 500 feet of a residential use; and d. Additional parking will not be required if the outdoor seating area does not exceed 500 square feet or ten percent of the gross floor area of the principal use, whichever is less. Parking will be required at the same rate as the principal use for that portion of outdoor seating area in excess of 500 square feet or ten percent of the gross building area, whichever is less. (4) Bar, if accessory to a restaurant, hotel or private entertainment (indoor). (5) Catering, if accessory to a restaurant, food service, delicatessen, grocery store or retail bakery. (6) Break rooms, if accessory to a non-residential use and are not located along the primary frontage. (7) Visitor lodging associated with residential care facilities. (8) Warehouse/storage which is necessary for a permitted use and not to exceed 20 percent of the gross floor area of the associated permitted use. (9) Home occupations complying with all of the conditions in the R-C district. (10) Outdoor sales are permitted only as accessory uses with garden and nursery sales. (11) Public transit stops/shelters. (12) Community gardens (13) Accessory Utility Structures including: a. Anaerobic digesters; b. Small wind energy conversion system, as defined in 36-4 Definitions. c. Solar energy systems. A solar energy system with a supporting framework that is either placed on, or anchored in, the ground and that is independent of any building or other structure; or that is affixed to or an integral part of a principal or accessory building, including but not limited to photovoltaic or hot water solar energy systems which are contained within roofing materials, windows, skylights, and awnings. d. Cisterns and Rainwater Collection Systems. A container or series of containers for the collection and reuse of rainwater. A cistern may be exempted from inclusion in the Site Impervious Area calculation. City council meeting of June 17, 2019 (Item No. 4b) Page 15 Title: Second reading - mixed use zoning district amendment e. Where accessory utility structures are permitted with conditions, the following apply: i. Accessory Use. The equipment shall be located on a lot with a building and is a secondary use for the lot. ii. Roof Mounted Location. Roof mounted equipment shall be located per one of the following: 1. Pitched Roof. Locate the equipment on a rear facing surface of the roof, if feasible for communication purposes. 2. Flat Roof. Locate the equipment towards the rear portion of the roof, where visibility is limited from the street to the maximum extent possible. iii. Ground Mounted Location. Ground mounted equipment is limited to the rear yard. Equipment may be located in the side yard if the equipment is screened from the street with an opaque wall, of the same or similar material of the street facade of the building. iv. Height. The height of the equipment is either a maximum of 12 feet or the maximum that is not visible from any street sidewalk, whichever is greater. v. Performance Standards. When noxious or offensive odors, sounds, vibrations, emissions, or any external nuisances upon adjacent properties, including truck traffic, will be generated by this accessory use above any generated by the principal use, a conditional use permit is required. Refer to 36-33 Conditional Use Permits. vi. Freestanding Wind Energy Conversion Systems (WECS). Refer to Sec. 36- 369, with the exception of the following requirements which shall replace the provisions of Table 36-369 A for all projects within the Mixed use District: 1. Height Limit: 110 feet 2. Maximum Number of WECS per lot: 2 3. Minimum Lot Size: 1.5 acres Sec. 36-268. Dimensional standards and general requirements. Notwithstanding the provisions of Section 36-32, the following standards and requirements cannot be modified or waived except as specifically stated: (1) The maximum nonresidential density is 1.5 FAR and the maximum residential density is 50 units per acre. In determining density, the total nonresidential floor area or number City council meeting of June 17, 2019 (Item No. 4b) Page 16 Title: Second reading - mixed use zoning district amendment of residential units shall be divided by the land associated with each use, including building coverage and parking areas associated with the use and a proportion of the on- site usable open space. Stormwater ponds and public/private streets and alleys shall be excluded from land calculations. Maximum residential densities may be increased by up to 50 percent based on Table 36-268 (a). Table 36-268 (a) 3 points 10% increase in density 6 points 20% increase in density 9 points 30% increase in density 12 points 40% increase in density 15 points 50% increase in density a. Inclusionary housing (maximum 6 points may be earned) i. Provide affordable housing at the levels required in the city’s Inclusionary Housing Policy, as amended from time to time, whether or not the development includes city financial assistance (6 points); b. Environmental, energy, and water resources (maximum 8 points may be earned) i. Meet the requirements of the city’s Green Building Policy as amended from time to time, whether or not the development includes city financial assistance (5 points); ii. Provide 0.5 W of on-site renewable energy per gross square foot of building area (3 points) c. Inclusionary commercial (Maximum 4 points may be earned) i. Inclusionary commercial space for retail and service less than 8,000 square feet, food service, and restaurant uses (4 points): 1. 10 percent of total commercial space provided at 80 percent fair market rent for 10 years; or 2. 20 percent of total commercial space provided 90 percent fair market rent for 10 years. ii. Provide 20 percent or up to 5,000 square feet, whichever is less, of the total commercial space as micro storefronts (4 points) d. Travel demand management (maximum 2 points may be earned) City council meeting of June 17, 2019 (Item No. 4b) Page 17 Title: Second reading - mixed use zoning district amendment i. Complete a travel demand management plan and implement all recommended strategies (1 points) ii. Commuter Bicycle Facilities provided onsite (1 points) 1. In addition to the bicycle parking requirements in Section 36- 361, an additional 10 percent of the required bicycle parking facilities shall be provided as bike lockers, on-site showers shall be available for building occupants, and a bicycle repair station shall be provided. e. Gathering spaces (maximum 2 points may be earned) i. Provide and maintain a publically accessible space which may include a plaza, courtyard, or community room (1 points) ii. Provide and maintain a publically accessible community garden (1 points) (2) The development site shall include a minimum of 12 percent designed outdoor recreation area based on private developable land area. (3) Building shall be constructed to the form requirements specific to the frontage type in Table 36- 268(b). Table 36-268 (b) Primary Frontage Secondary Frontage BUILDING SITING Minimum Primary Lot Line Coverage 80% 50% Build-to Zone 10’ to 15’ 10’ to 20’ Maximum Building Length 200 feeta HEIGHT Building to Street Width Minimum 60% 60% Building to Street Width Maximum 100% 200% Minimum Height 2 stories 2 stories Maximum Height 6 storiesb or 75 feet, whichever is less Primary Ground Story Height 12’ to 20’c All Other Stories Height 10’ to 15’ FAÇADE Entrance Elevation Each street entrance shall be within 30” of adjacent street sidewalk average grade a. Maximum Building Length may be increased up to 50 percent if a pedestrianway is provided. These pedestrianways can be pedestrian easements and pathways or exterior through building linkages at least every 200 feet. b. Step-backed stories. All stories that exceed the maximum building to street width shall be stepped back from the front façade a minimum of 10 feet and a maximum of 30 feet. c. Tall stories: 18’ or more in floor-to-floor ground story height counts as 2 stories City council meeting of June 17, 2019 (Item No. 4b) Page 18 Title: Second reading - mixed use zoning district amendment toward maximum building height. (4) Side and Rear Yards: a. Buildings with side or rear property lines adjacent to R-1 or R-2 zoned and used districts shall have a maximum building height of 40 feet, and minimum side and rear yards of 15 feet. Buildings may exceed 40 feet in height if the portion of the building above 40 feet is stepped back from the side and rear property lines a distance equal to the additional height. (5) Parapet walls shall be utilized to completely screen rooftop equipment from ground and street level view and rooftop equipment must be painted to match the color of the roof in order to minimize the visual impact as viewed from other buildings. (6) Developments shall include sidewalks and/or bikeways along all private and public street rights-of- way as determined appropriate and on-site pedestrian/bicycle facilities that provide logical connections to off-site uses and are separated from off-street surface parking areas by curbed, landscaped islands a minimum of 20 feet in width inclusive of sidewalk. (7) Developments served by public transit must provide at least one transit stop that conveniently serves the development. (8) Driveway location. Vehicular driveway access is managed through the primary and secondary street frontages. The order of access is as follows: a. An alley permits unlimited access. b. If no alley exists, one driveway per secondary street frontage is permitted. c. If no other option exists, one driveway may be permitted off the primary street and shared access with abutting properties is encouraged. (9) Signage shall be allowed with the following conditions: a. Pylon signs are prohibited; b. Freestanding monument signs shall utilize the same exterior materials as the principal buildings and shall not interfere with pedestrian, bicycle or automobile circulation and visibility. c. Maximum allowable number, sizes, heights and yards for signs shall be regulated by Section 36-362, MX requirements. d. Wall signs of non-residential uses shall only be placed on the ground floor and exterior walls of the occupied tenant lease space, and/or a monument sign. e. Wall signs shall not be included in calculating the aggregate sign area on the lot if they meet the following outlined conditions: i. Non-residential wall signs permitted by this section that do not exceed City council meeting of June 17, 2019 (Item No. 4b) Page 19 Title: Second reading - mixed use zoning district amendment seven percent of the exterior wall area of the ground floor tenant lease space. ii. The sign is located on the exterior wall of the ground floor tenant lease space from which the seven percent sign area was derived. iii. No individual wall sign shall exceed 100 square feet in area. f. Pedestrian scale signs visible from public sidewalks shall be encouraged. Such signs shall be no more than three feet in vertical dimension unless flush with the building wall. (10) A development agreement is required as part of the development approval and shall address, at a minimum, approved site and building design criteria, approved sign locations and design criteria, construction phasing, density bonuses, specifications for inclusionary commercial space, cash escrow or letter of credit for construction of on- site and off-site improvements generated by the development, and maintenance. (11) The development shall comply with all other applicable chapter provisions unless specifically modified by subsections (1) through (10) of this section. *********** Section 36-115 Land Use Land uses permitted in limited stories. Land uses listed as “permitted in limited stories” are permitted subject to all of the requirements of land uses permitted by right plus those additional controls which specify the story of a building the use can occur. Land uses permitted in limited stories do not require a public hearing process. *********** 36-361 Parking Regulations ** (k) Design Requirements ** (10) Yards. Required parking areas shall be subject to the following requirements: a. In the R-4 and R-C districts, parking areas shall be subject to the requirements for front yards and side yards abutting a street. b. In the C-2, O, I-P and I-G districts, parking areas shall be permitted in the front yard and side yards abutting a street, provided that the yard shall not be reduced to less than five feet. (Ord. No. 2466-15, 5-18-2015) c. In the C-1 and MX districts district: 1. Parking spaces and drive aisles shall not be located between a building and a street, except that a through lot may have parking between the building City council meeting of June 17, 2019 (Item No. 4b) Page 20 Title: Second reading - mixed use zoning district amendment and less prominent street, as determined by the Zoning Administrator. 2. The minimum yard requirement for parking spaces and drive aisles shall be zero (0.0) when located adjacent to a non-residential district 3. The minimum yard requirement for parking spaces and drive aisles shall be eight feet when abutting a residentially zoned property. 4. The minimum yard requirement for parking spaces shall be five feet when adjacent to a street. (Ord. No. 2466-15, 5-18-15) *********** 36-362 Sign Regulations ** (f) General provisions. Subject to the following regulations, signs are a permitted accessory use in all use districts: ** (12) Durable Materials. All permanent sign faces and supports shall be made of durable materials. Canvas, cloth and similar materials such as flexible vinyl, are not allowed except for canopies, awnings and temporary signs other than pedestrian signs. Awnings shall be constructed of heavy canvas fabric, metal, and/or glass. Plastic, vinyl, and backlit awnings are prohibited. All permanent wood signs must be constructed of durable hardwood products. The wood must be treated against rot and decay, and cannot be constructed of plywood, chipped wood, hardboard, fiber board or similar materials. Sign Support structures shall not be constructed of wood ************ 36-366 Architectural design ** (b) Standards. (1) Building Design. ** g. All developments shall consider the effect of sun angles and shade patterns on other buildings. All new multiple-family and nonresidential buildings and additions thereto shall be located so that the structure does not cast a shadow that covers more than 50 percent of another building wall for a period greater than two hours between 9:00 a.m. and 3:00 p.m. for more than 60 days of the year. This section will not prohibit shading of buildings in an industrial use district, two or more buildings on the same lot in the MX district, or as approved for buildings covered by the same PUD, CUP, or Special Permit. Shading of existing public spaces and outdoor employee break areas shall be minimized to the extent reasonable and possible. City council meeting of June 17, 2019 (Item No. 4b) Page 21 Title: Second reading - mixed use zoning district amendment Section 4. This ordinance shall take effect (July 12, 2019) First Reading May 20, 2019 Second Reading June 17, 2019 Date of Publication June 27, 2019 Date Ordinance takes effect July 12, 2019 Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Approved as to form and execution: Melissa Kennedy, City Clerk Soren Mattick, City Attorney Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4c Executive summary Title: Second reading of ordinance related to zero waste packaging Recommended action: Motion to approve second reading and adopt Ordinance amending the Zero Waste Packaging Ordinance. Policy consideration: Does the city council wish to amend the Zero Waste Packaging Ordinance? Summary: Staff initiated this request to amend the Environment and Public Health (Chapter 12) code in an attempt to decrease waste, reduce confusion for business and residents, and minimize contamination in organics and recycling. The proposed ordinance was reviewed by the city attorney. A summary of proposed changes was provided to city council (study session report on April 8, 2019) and to primary stakeholders (via emails on April 8 and 22, 2019). A draft of the revised ordinance was posted to the city’s website on April 19, 2019. Stakeholders were asked to provide feedback by April 30, 2019. Edits were made to the draft ordinance to clarify intent on two items in response to feedback. On May 20, 2019, staff presented the proposed ordinance to city council for the first reading. During the discussion regarding the annual exemptions process, staff confirmed that exemptions will be reviewed annually in the fall. Council voted 6-0 to approve the first reading of the ordinance. The original Zero Waste Packaging Ordinance went into effect on January 1, 2017. Over the past two years, staff have identified circumstances where clarification and changes in the ordinance would help decrease waste, reduce confusion for business and residents and minimize contamination in organics and recycling. This amendment updates much of Chapter 12, Article VI, and proposes changes that would update definitions, set expectations for some types of packaging, remove certain exclusions, clarify collection requirements and change the penalty process. These changes will help increase the impact of the ordinance by moving single-use food packaging toward zero waste. Financial or budget considerations: None Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion Draft Ordinance (redline) Prepared by: Emily Barker, Solid Waste Specialist Reviewed by: Scott Merkley, Public Works Services Manager Mark Hanson, Public Works Superintendent Cynthia S. Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4c) Page 2 Title: Second reading of ordinance related to zero waste packaging Discussion A draft copy of the ordinance is attached. Listed below is a summary of the proposed changes. (Sec. 12-33, 12-34, 12-91, 12-124, 12-125) Updating definitions. Harmonizes terms with Chapter 8 and 22. (Sec. 12-124) Updating of allowed collection hours. Harmonizes with Chapter 22. (Sec. 12-201) Clarifying and refining legislative purpose. Puts the legislative purpose into plain language, so it will be easier for impacted parties to understand. (Sec. 12-202) Updating definitions. Adds and updates several definitions. (Sec. 12-203) Prohibitions and duties. This section includes several proposed changes. Item (b)(1) would require that lids for cups and containers be of the same category of packaging (i.e. lids for compostable cups and containers would need to be compostable and lids for recyclable cups and containers would need to be recyclable). Item (b)(2) would require all compostable cups (paper or plastic) be labeled to indicate compostability. Item (c)(1) would remove plastic utensils from the current exclusions and require single-use utensils to be compostable; effective January 1, 2020. Item (c)(2) would require that straws be provided to customers “by request only.” This change would require that food establishments not automatically give straws to customers, unless one is explicitly requested; effective January 1, 2020. (Sec. 12-204) On-site collection requirements. There are two amendments being proposed in this section. Item (a)(3) would require that the organizations hosting food trucks provide collection containers for organics and/or recycling. Item (b) would add the requirement for co-location of collection containers to the ordinance. The co-location of bins is currently being required through the Administrative Rules. (Sec. 12-206) Exclusions and exemptions. Moves all exclusions and exemptions to one section, instead of throughout the ordinance as is currently the case. (Sec. 12-207) Violations and enforcement. Removes specific administrative penalty information from the ordinance and adds it to the city’s fee schedule approved annually by council. City council meeting of June 17, 2019 (Item No. 4c) Page 3 Title: Second reading of ordinance related to zero waste packaging Ordinance No. _____-19 An ordinance amending the St. Louis Park ordinance code relating to environment and public health The City of St. Louis Park does ordain: SECTION 1. That Chapter 12 of the Code of Ordinances, City of St. Louis Park, Minnesota, is hereby amended to read as follows: CHAPTER 12 ENVIRONMENT AND PUBLIC HEALTH Article VI. Zero Waste Packaging Sec. 12-201. Legislative purpose. Sec. 12-202. Definitions. Sec. 12-203. Prohibitions and duties. Sec. 12-204. On-site collection for recyclable and compostable packaging. Sec. 12-205. Rules and regulations. Sec. 12-206. Exclusions and exemptions. Sec. 12-207. Violations and enforcement. Sec. 12-208. Severability. Sec. 12-209. Effective Ddate. Sec. 12-210209—12-250. Reserved ARTICLE II. NUISANCES DIVISION 1. GENERALLY Sec. 12-33. Nuisances affecting health. In addition to those conditions identified elsewhere, the following are declared to be nuisances affecting health: (3)Accumulations of decaying animal or plant material, animal or human feces, trash, refuse, yard waste, rubbish, garbage, rotting lumber, packing material, scrap metal, tires or any other substances which can be breeding places for flies, mosquitoes or vermin, except compost maintained in compliance with cChapter 22, article IIIV. (9)The intentional or negligent discharge of items including but not limited to refuse, leaves, grass clippings garbage, yard waste, solvents, antifreeze, oil, gas, fireplace ashes, paint, swimming pool water or cement rein sate into a street, storm sewer system, or water resource such as a wetland, creek, pond or lake. This includes illegal discharge or discard of any item on to any land within the City limits. City council meeting of June 17, 2019 (Item No. 4c) Page 4 Title: Second reading of ordinance related to zero waste packaging Sec. 12-34. Nuisances affecting peace and safety. In addition to those conditions identified elsewhere, the following are declared to be nuisances affecting public peace, welfare and safety: (23)Accumulations of personal property, rubbish solid waste or debris in any residence that could prevent emergency egress. (24)Accumulations of animal feces, rubbish solid waste or junk remaining in any place as to become dangerous or injurious to the safety of any individual or to the public. ARTICLE III. LITTER Sec. 12-91. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Garbage means putrescible animal and vegetable wastes resulting from the handling, preparation, cooking and consumption of food the portion of solid waste that is not separated at the source by the generator for the purpose of reuse, recycling, organics recycling, or yard waste composting. Licensed solid waste collector means any person holding a valid license from the city who shall offer to, or engage in, the collection of solid waste in the city. Litter means garbage, refuse and rubbish, solid waste and all other waste material which, if thrown or deposited as prohibited in this article, tends to create a danger to public health, safety and welfare. Refuse means all putrescible and nonputrescible solid wastes (except body wastes), including garbage, rubbish, trash, ashes, street cleanings, dead animals, junk, abandoned automobiles, and solid market and industrial wastes. Rubbish means nonputrescible solid wastes consisting of both combustible and noncombustible wastes, such as paper, wrappings, cigarettes, cardboard, tin cans, wood, glass, bedding, crockery and similar materials. Solid waste means garbage, recyclable materials, organic materials, yard waste, appliances, bulk waste, and other solid waste from residential or commercial buildings, and activities thereof, that the generator of the material aggregates for collection, but does not include construction demolition debris, hazardous waste, dirt, rocks, sod, or sewage sludge. ARTICLE IV. NOISE, NOISE POLLUTION AND VIBRATION Sec. 12-124. Hourly restrictions on certain operations. (d)Garbage collection. Except in a general industrial zoning district, no person shall collect or remove garbage or refuse solid waste except between the hours of 7:00 a.m. and 108:00 City council meeting of June 17, 2019 (Item No. 4c) Page 5 Title: Second reading of ordinance related to zero waste packaging p.m. on weekdays and between the hours of 98:00 a.m. and 108:00 p.m. on weekends and holidays. Sec. 12-125. Prohibited noises. (h) Apartment Multifamily or multiuse building. No person may cause, allow, or permit any noise pollution in any multiuse or apartment building as determined beyond the property line of the area or premises owned, rented, leased, or used by such person. ARTICLE V. STORMWATER, SOIL EROSION, AND SEDIMENTATION Sec. 12-152. Definitions Pollutant means anything which causes or contributes to pollution. Pollutants may include, but are not limited to: paints, varnishes, and solvents; oil and other automotive fluids; non- hazardous liquid and solid wastes and yard wastes; refuse, rubbish, garbage, litter, or other discarded or abandoned objects, ordinances, and accumulations, so that same may cause or contribute to pollution; floatables; pesticides, herbicides, and fertilizers; hazardous substances and wastes; sewage, fecal coliform and pathogens; dissolved and particulate metals; animal wastes; wastes and residues that result from constructing a building or structure; and noxious or offensive matter of any kind. ARTICLE VI. ZERO WASTE PACKAGING Sec. 12-201. Legislative Purpose. The cCity of St. Louis Park council (council) adopted the strategic direction in March 2007 stating that the city is committed to being a leader in environmental stewardship and will increase to increasing environmental consciousness and responsibility in all areas of city business. As such, the council finds that discarded packaging from foods and beverages prepared for immediate consumption constitutes a portion of the waste stream in St. Louis Park that could be diverted for reuse, recycling, or organics recycling. Regulation of food and beverage packaging, therefore, is a necessary part of any effort to encourage a recyclable and compostable waste stream, thereby reducing the disposal of solid waste and the economic and environmental costs of waste management for the citizens of St. Louis Park and others working or doing business in St. Louis Park. The council also finds that the two (2) main processes used to dispose of discarded nonreusable, nonreturnable, nonrecyclable and noncompostable food and beverage packaging are landfilling and incineration, both of which should be minimized for environmental reasons. The council therefore finds that the minimization of nonreusable, nonreturnable, nonrecyclable and noncompostable food and beverage packaging originating at retail food establishments and at events providing food and/or beverages within the city of St. Louis Park is necessary and desirable in order to minimize the city's waste stream and maximize recycling and organics recycling, so as to reduce the volume of landfilled waste, to minimize toxic by- City council meeting of June 17, 2019 (Item No. 4c) Page 6 Title: Second reading of ordinance related to zero waste packaging products of incineration, and to make our city and neighboring communities more environmentally sound places to live. The purpose and intent of this ordinance is to: (a) Encourage the use of reusable food and beverage packaging when possible; (b) Minimize the amount of single-use, disposable food and beverage packaging that must be thrown in the garbage, and thus disposed via incineration or landfilling; (c) Maximize the amount of single-use food and beverage packaging items that can be recycled or composted; and (d) Minimize contamination in organics and recycling. Sec. 12-202. Definitions. As used in this chapter, the following terms and phrases shall have the meanings as defined in this section: Compostable packaging shall mean packaging that is separable from solid waste prior to collection for the purpose of composting or anaerobic digestion. Compostable packaging must be made of unlined paper (unless lining is certified compostable), certified compostable plastic that meets ASTM D6400 or ASTM D6868 or other material accepted by the facility receiving and processing the materials as determined by the St. Louis Park Public Works Division by rule promulgated pursuant to Section 12-205. Distributor shall mean a business that distributes food and beverages but does not conduct retail food or beverage transactions. Food and beverage packaging shall mean packaging used to serve food and beverage products intended for immediate consumption including cups, plates, bowls, serving trays, to- go containers, clamshells, wrappers, and lids. Food establishment as used in this chapter, shall mean a "food establishment" as defined by Chapter 3.3.1 Hennepin County Code of Ordinances. Mobile use-food establishment as used in this chapter, shall mean “mobile use-food” as defined in Chapter 36-142(g)(5) of the City Code of Ordinances, as a vehicle or cart used to prepare and serve food and/or beverages in individual portions in a ready-to-consume state. Mobile use-food does not include the sale of groceries or vegetables and fruits not prepared for immediate consumption at the vehicle. Packaging shall mean and include food or beverage cans, bottles or containers used to package food and beverage products for distribution including glasses, cups, plates, bowls, serving trays, and to-go containers. The following exclusions apply: foods pre-packaged by the manufacturer, producer or distributor; plastic knives, forks and spoons sold or intended for use as utensils; and plastic films less than ten (10) mils in thickness. City council meeting of June 17, 2019 (Item No. 4c) Page 7 Title: Second reading of ordinance related to zero waste packaging Non-packaging food service items shall mean items that are not packaging, but are used to consume food, including straws and utensils. Recyclable packaging shall mean food or beverage packaging that is separable from solid waste prior to collection for the purpose of recycling. Recyclable packaging must be accepted by the local material recovery facilities receiving and processing the materials and have existing robust recycling markets as determined by the St. Louis Park Public Works division by rule promulgated pursuant to Section 12-205. Reusable packaging shall mean food or beverage packaging that is capable of being refilled at a retail location or returned to the distributor for reuse at least once as a container for the same food or beverage. Single-use shall mean an item designed and intended for a single use. Violation shall mean any time a food establishment is found by the city to be non-compliant with one or more section(s) of this chapter. Zero waste packaging shall mean and include reusable packaging, single-use recyclable packaging, and single-use compostable packaging. Zero waste packaging shall mean and include any of the following: (1) Reusable and returnable packaging: Food or beverage containers or packages, such as, but not limited to, water bottles, growlers, milk containers and bulk product packaging that are is capable of being refilled at a retail location or returned to the distributor for reuse at least once as a container for the same food or beverage. (2) Recyclable packaging: Packaging that is separable from solid waste during collection for the purpose of recycling including, but not limited to, glass bottles, aluminum cans and plastic food and beverage packaging. Recyclable packaging must be accepted by the local material recovery facilities receiving and processing the materials and have existing robust recycling markets as determined by the Public Works Division by rule promulgated pursuant to section 12.205. (3) Compostable packaging: Packaging that is separable from solid waste during collection for the purpose of composting. Compostable packaging must be made of unlined paper (unless lining is certified compostable), certified compostable plastic that meet ASTM D6400 or ASTM D6868 or other material accepted by the commercial compost or anaerobic digestion facility receiving and processing the materials. Sec. 12-203. Prohibitions and duties. (a) No person owning, operating or conducting a food establishment or any person or organization providing free food or beverage products within the cCity of St. Louis Park pursuant to a Hennepin County or Minnesota Department of Agriculture permit or license, or in a manner which would require a permit or license, shall do or allow to be done any of the following within the city: (1) Sell or convey at retail or possess with the intent to sell or convey at retail any food or beverage intended for immediate consumption contained, at any time at or before the City council meeting of June 17, 2019 (Item No. 4c) Page 8 Title: Second reading of ordinance related to zero waste packaging time or point of sale, in packaging which is not zero waste packaging. The presence on the premises of the food establishment of packaging which is not zero waste packaging shall constitute a rebuttable presumption of intent to sell or convey at retail, or to provide to retail customers packaging which is not zero waste packaging; provided, however, that this subparagraph shall not apply to manufacturers, brokers or warehouse operators, who conduct or transact no retail food or beverage business. (b)To reduce contamination in recycling and organics, mobile-use food establishments shall implement the following by January 1, 2020, and all other food establishments shall implement the following by July 1, 2020: (1)Single-use cups and containers that are utilized with lids shall have lids of the same category of packaging. a.Recyclable packaging shall only have recyclable lids; b.Compostable packaging shall only have compostable lids. (2)Compostable cups shall be labeled to clearly indicate to the consumer that the cup is compostable. Labeling must include at least one of the following: a.The words “certified compostable,” “commercially compostable” or other language, as approved by the St. Louis Park Public Works Division by rule promulgated pursuant to Section 12-205. “Made from plants,” “bio-based,” or “biodegradable” are not acceptable alternatives on their own; b.The logo of a third-party certification or testing body indicating the cup meets compostability standards, as approved by the St. Louis Park Public Works Division by rule promulgated pursuant to Section 12-205. (c)All food establishments shall implement the following in relation to non-packaging food service items by January 1, 2020: (1)Single-use utensils including, but not limited to, forks, spoons, and knives shall be compostable. (2)Single-use straws of any kind shall only be provided to consumers upon request. Front- of-house straw dispensers, which allow for customers to self-serve, meet this requirement. Sec. 12-204. On-site collection for recyclable and compostable packaging. (a)A food establishment which utilizes single-use compostable and/or recyclable food packaging to serve consumers on-site shall have on-site collection for recyclable and/or compostable packaging. (1)A food establishment that does not utilize single-use packaging to serve consumers on- site is exempt from the requirement to have on-site collection for recyclable and/or compostable packaging. (2)A food establishment that does not have dine-in seating for consumers is exempt from the requirement to have on-site collection for recyclable and/or compostable packaging. (3)If a mobile use-food establishments is being hosted by an entity as part of an event or regular business, the hosting entity shall provide on-site collection for recyclable and/or compostable packaging. (b)Containers for the on-site collection of recyclable and/or compostable packaging shall be co-located with garbage containers. City council meeting of June 17, 2019 (Item No. 4c) Page 9 Title: Second reading of ordinance related to zero waste packaging (1)If garbage receptacles are available to consumers, then receptacles for separating recyclable and/or compostable packaging must also be made available to consumers in the same location. (2)If garbage receptacles are not available to consumers and are instead placed in areas for use by staff only, then receptacles for separating recyclable and/or compostable packaging are only required in those locations. (c)A food establishment shall arrange for the collection of recyclable and/or compostable packaging by a licensed solid waste collector for delivery to an appropriate transfer station or processing facility. (d)Packaging used to contain food or beverages intended for immediate consumption shall be considered zero waste packaging only when the food establishment provides consumers with an on-site opportunity to recycle and/or appropriately manage compostable packaging and compostable plastics and utilizes a qualified recycling and/or organics management system. (1)A qualified recycling system shall have the following elements: a. A clear and verifiable process for separating recyclable packaging from discarded solid waste. b.Collection and delivery of recyclable packaging to a recycling facility for processing in the same or at least similar manner as recyclable packaging collected in a city approved recycling program; (2)A qualified organics recycling system shall have the following elements: a. A clear and verifiable process for separating organic materials from discarded solid waste; and b.Collection and delivery of organic materials to an organics composting or anaerobic digestion facility in the same manner or at least similar manner as organic materials collected in a municipally approved the city’s organized collection organics management program. (3)A food establishment that does not have dine-in seating for consumers except a mobile use-food establishment, is exempt from the requirement to provide consumers with an on-site opportunity to recycle and/or manage compostable packaging/compostable plastics as defined in Sec. 12-203(b). Sec. 12-204. Violations and Enforcement. (a)When a violation of this ordinance has occurred, the food establishment shall be subject to the penalties set forth below. (b)A violation of this ordinance is a misdemeanor. (c)Violations of this ordinance shall be punishable as an administrative offense pursuant to City Code Section 1-14, Administrative Penalties, as follows: (1)A warning notice in writing for the first violation; (2)A fine of $100 for the second violation; (3)Repeat subsequent violations within 24 months will incur a fine double the amount of the fine imposed for the previous violation, up to a maximum of $2,000. For example, if there were four occurrences of a violation that carried a $100 fine: first is $0 (warning); second is $100, third is $200, fourth is $400. (d)At the time a violation occurs, the food establishment will be given 14 calendar days to take corrective action before a subsequent fine is issued. City council meeting of June 17, 2019 (Item No. 4c) Page 10 Title: Second reading of ordinance related to zero waste packaging (e)The administrative offenses provided for in this article shall be in addition to any other legal or equitable remedy available to the city for city code violations. Sec. 12-205. Rules and regulations. The St. Louis Park pPublic wWorks dDivision may, upon notice and hearing, promulgate such rules and regulations as may be necessary to carry out the purposes of this article and protect the health of the public, including: (a)the development of a list of recyclable and compostable packaging that meets definitions under Section 12-202; (b)a list of third party certification or testing bodies that meet the requirements under Section 12-203(b)(2); (c)and development of a list of exemptions under Section 12-206(e) for packaging for which there is no reasonable commercially available alternative. In promulgating such rules, the division shall consider the legislative purposes provided in Section 12-201 of this ordinance and shall consult with the operators of affected food establishments, local material recovery facilities and local commercial composting facilities. The Ppublic Wworks Ddivision rules and regulations shall be approved by council annually. Sec. 12-206. Exclusions and exemptions. Notwithstanding any other provisions to the contrary, this ordinance shall not apply to: (a)Manufacturers, brokers, distributors or warehouse operators who conduct or transact no retail food or beverage business; (b)Food and beverage service provided through patient care at hospitals and nursing homes; (c)Food packaging pre-packaged by a manufacturer, producer or distributor; (d)Plastic films less than ten (10) mils in thickness; (e)Any packaging which is not zero waste packaging, but for which there is no commercially available alternative as determined by the St. Louis Park Public Works Division by rule promulgated pursuant to Section 12-205. In determining whether there are commercially available alternatives, the Ppublic Wworks Ddivision will consider whether there is availability of zero waste packaging for affected products. Every rule creating an exemption under this paragraph will be reviewed annually by the Ppublic Wworks Ddivision to determine whether current conditions continue to warrant the exemption. Sec. 12-207. Violations and enforcement. (a)Violations of this ordinance shall be punishable as a misdemeanor pursuant to City Code Section 1-13, and/or an administrative offense pursuant to City Code Section 1-14, Administrative Penalties. (b)The administrative offenses provided for in this article shall be in addition to any other legal or equitable remedy available to the city for city code violations. (c)At the time a violation occurs, a warning notice will be given in writing. The food establishment will be given 14 calendar days to take corrective action before a fine is issued. City council meeting of June 17, 2019 (Item No. 4c) Page 11 Title: Second reading of ordinance related to zero waste packaging Sec. 12-208207. Severability. If any part or provision of this ordinance or the application thereof to any person, entity, or circumstances shall be judged unconstitutional or invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision or application which is directly involved in the controversy in which such judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this ordinance or the application thereof to other persons, entities, or circumstances. Sec. 12-210169--12-250200. Reserved. SECTION 2. This ordinance shall take effect fifteen dates after its publication. First Reading May 20, 2019 Second Reading June 17, 2019 Date of Publication June 27, 2019 Date Ordinance takes effect July 12, 2019 Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Approved as to form and execution: Melissa Kennedy, City Clerk Soren Mattick, City Attorney City council meeting of June 17, 2019 (Item No. 4c) Page 12 Title: Second reading of ordinance related to zero waste packaging Summary for publication Ordinance No.____-19 Ordinance amending chapter 12 of the St. Louis Park City Code Environment and Public Health This ordinance amends Chapter 12 (Environment and Public Health) for the City of St. Louis Park, primarily Article VI, Zero Waste Packaging. This amendment updates definitions, sets expectations for some types of packaging, removes the exclusion for utensils and straws, clarifies collection requirements for food trucks and front-of-house containers at restaurants, and change the penalty process. The amended ordinance takes effect July 12, 2019, with the exception of Sections 12-203 (b)(1) and (b)(2) which take effect January 1, 2020, for food trucks, and July 1, 2020, for all other food establishments, and Sections 12-203 (c)(1) and (c)(2) which take effect January 1, 2020, for all food establishments. A printed copy of the entire ordinance is available for inspection by any person during the City Clerk’s regular office hours. Adopted by the City Council June 17, 2019 Jake Spano /s/ Mayor Published in St. Louis Park Sailor: June 27, 2019 Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4d Executive summary Title: Second reading - zoning ordinance amendment regarding home occupations Recommended action: Motion to approve second reading and adopt Ordinance amending Chapter 36 of the St. Louis Park Code of Ordinances regarding home occupations, and approve the summary ordinance for publication. Policy consideration: Does city council support the changes to the home occupations regulations to prohibit firearm sales as a home occupation and allow retail sales with conditions. Summary: Last year the city council directed staff to prepare an ordinance that prohibits firearm sales as a home occupation. Staff drafted a narrowly focused amendment to update the land use description to add firearm sales to the list of uses that do not qualify as home occupations. The planning commission held a public hearing September 5, 2018 and tabled action on the item after raising concerns about the proposed amendment and the existing restriction on retail sales. Following planning commission study sessions on the topic, another public hearing was held April 3, 2019 on a somewhat broader ordinance that allowed retail sales under certain conditions. The home occupation regulations are repeated in each residential district, so the text is amended in multiple locations of the city zoning code. Following the second public hearing, the planning commission voted 4-1-1 (Kraft opposed, Eckholm abstained, Tatalovich absent) to recommend against adoption of the proposed ordinance. Three commissioners opposed the prohibition of firearm sales as a home occupation. Five commissioners had concerns with other existing regulations contained in the city code unrelated to firearm sales or retail sales. The planning commission meeting minutes and the correspondence received for the public hearing were provided in the May 20, 2019 staff report. The city council approved the first reading of the ordinance on May 20, 2019 on a 6-0 vote. Strategic priority consideration: Not applicable. Supporting documents: Discussion Ordinance Prepared by: Sean Walther, Planning and Zoning Supervisor Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4d) Page 2 Title: Second reading - zoning ordinance amendment regarding home occupations Discussion Background: The city council directed staff to prepare an ordinance that prohibits firearm sales as a home occupation. Staff prepared the ordinance and suggested other refinements to the home occupations definition to improve the city’s ability to enforce the code. Previous public input: The planning commission held a public hearing on September 5, 2018. A representative of the Minnesota Gun Owners Caucus spoke at the public hearing in opposition to the prohibition of firearm sales as a home occupation. The city also received approximately 12 emails opposing the firearms sales restriction. All of these emails appeared to be from members of the Minnesota Gun Owners Caucus. Since several months elapsed since the first public hearing, the city re-advertised the public hearing and planning commission held a second public hearing on April 3, 2019 on the expanded home occupations ordinance. The commission did not receive any additional public testimony at the second hearing. Process: On September 5, 2018, the planning commission closed the public hearing and following discussion voted to table the item. The commission requested clarifications regarding retail sales and firearm sales, and more information about firearm sales as a home occupation. Planning commission discussed the ordinance in two study sessions on October 3, 2018, and February 20, 2019. Staff provided examples of other cities’ home occupation regulations related to retail sales and firearm sales, responded to questions raised at the first public hearing, and provided a summary of an applicable Minneapolis court case that was provided by the city attorney. The city attorney’s opinion is that the city has the authority to prohibit firearm sales as a home occupation. Staff further revised the proposed ordinance to modify how product sales are regulated when related to a home occupation, as requested by the planning commission. Below is a description of the current and proposed ordinance language. Current land use description: The zoning code currently describes home occupations as follows: Home occupation means an occupation, profession, or activity which provides gainful employment to a resident of a dwelling unit which is clearly an incidental and subordinate use to the residential use and which does not alter the exterior of the property or affect the residential character of the neighborhood. Auto body/painting, motor vehicle sales, motor vehicle service and repair, retail sales, massage, medical/dental office, animal handling, beauty shop and barbershop, warehouse/storage and manufacturing/processing do not qualify as home occupations. Proposed land use description: The ordinance proposes to remove the list of prohibited uses from the land use description and move the list to the conditions for home occupations. The ordinance also modifies the language to apply the rules to both for-profit and non-profit activities. The proposed land use description would read as follows: City council meeting of June 17, 2019 (Item No. 4d) Page 3 Title: Second reading - zoning ordinance amendment regarding home occupations Home occupation means an occupation, profession, or activity conducted in a dwelling unit, which is clearly an incidental and subordinate use to the residential use and which does not alter the exterior of the property or affect the residential character of the neighborhood. Current home occupation performance standards: The current code allows home occupations to operate as an accessory use in residential districts when they meet the following conditions: a. All material or equipment shall be stored within an enclosed structure. b. Operation of the home occupation is not apparent from the public right-of-way. c. The activity does not involve warehousing, distribution, or retail sales of merchandise produced off the site. d. No person is employed at the residence who does not legally reside in the home except that a licensed group family day care facility may have one outside employee. e. No light or vibration originating from the business operation is discernible at the property line. f. Only equipment, machinery, and materials which are normally found in the home are used in the conduct of the home occupation. g. No more than one non-illuminated wall sign limited to two square feet in area is used to identify the home occupation. h. Space within the dwelling devoted to the home occupation does not exceed one room or ten percent of the floor area, whichever is greater. i. No portion of the home occupation is permitted within any attached or detached accessory building. j. The structure housing the home occupation conforms to the building code. If the home occupation is day care or if there are any customers or students, the home occupation has received a certificate of occupancy. Proposed home occupation performance standards: The ordinance proposes amending the conditions to read as follows: a. The city has approved a Registration of Land Use for any home occupation established after July 12, 2019, that has customers or students coming to the site. b. The home occupation and structure housing the home occupation meets all applicable fire and building codes, as well as any other City, County, State, or Federal regulations. c. The home occupation is clearly incidental and subordinate to the residential use of the property and does not change the character of the property. d. Space within the dwelling devoted to the home occupation does not exceed one room or ten percent of the floor area, whichever is greater. e. No portion of the home occupation is conducted within any attached or detached accessory building. f. Operation of the home occupation is not apparent from the public right-of-way. g. Only equipment, machinery, and materials which are normally found in the home are used in the conduct of the home occupation. h. All material or equipment is stored within an enclosed structure. i. The home occupation does not produce nuisance noise, odors, smoke, heat, glare, vibration, or electrical interference beyond the residential lot occupied by the home occupation. City council meeting of June 17, 2019 (Item No. 4d) Page 4 Title: Second reading - zoning ordinance amendment regarding home occupations j. No person is employed at the residence who does not legally reside in the home except that a licensed group family day care facility may have one outside employee. k. Persons do not come to the location of the home occupation to be dispatched to other locations. l. Sale of products related to the home occupation is allowed with the following conditions: 1. products are shipped to and from the premises, or 2. products sales occur off-site at a permissible location, or 3. a customer visits the premises by appointment only, or 4. products are sold on the premises at garage sales as regulated by this chapter. m. No more than one non-illuminated wall sign up to two square feet in area is used to identify the home occupation. n. The home occupation does not include any of the following uses: auto body/painting, motor vehicle sales, motor vehicle service and repair, small engine repair, massage, medical/dental office, animal handling, beauty shop and barbershop, firearm sales, currency exchange, payday loan agency, sexually-oriented business or high-impact sexually oriented business. Next steps: If city council approves the second reading and adopts the ordinance, the summary ordinance will be published in the official newspaper and the ordinance will be effective on July 12, 2019. City council meeting of June 17, 2019 (Item No. 4d) Page 5 Title: Second reading - zoning ordinance amendment regarding home occupations Ordinance No. ___-19 Ordinance regarding home occupations The City of St. Louis Park does ordain: Section 1. Chapter 36, Section 36-142(d)(14) of the St. Louis Park City Code is hereby amended to read as follows. (14) Home occupation means an occupation, profession, or activity conducted in a dwelling unit, which is clearly an incidental and subordinate use to the residential use and which does not alter the exterior of the property or affect the residential character of the neighborhood. Section 2. Chapter 36, Sections 36-163(e)(4) and (5) of the St. Louis Park City Code are hereby amended in their entirety to read as follows. (4) Family day care facilities serving 14 or fewer persons with the following condition: a. No person is employed at the residence who does not legally reside in the home except that a licensed family day care facility may have one outside employee. (5) Home occupations complying with all the following conditions: a. The city has approved a Registration of Land Use for any home occupation established after July 12, 2019, that has customers or students coming to the site. b. The home occupation and structure housing the home occupation meets all applicable fire and building codes, as well as any other City, County, State, or Federal regulations. c. The home occupation is clearly incidental and subordinate to the residential use of the property and does not change the character of the property. d. Space within the dwelling devoted to the home occupation does not exceed one room or ten percent of the floor area, whichever is greater. e. No portion of the home occupation is conducted within any attached or detached accessory building. f. Operation of the home occupation is not apparent from the public right-of-way. g. Only equipment, machinery, and materials which are normally found in the home are used in the conduct of the home occupation. h. All material or equipment is stored within an enclosed structure. i. The home occupation does not produce nuisance noise, odors, smoke, heat, glare, vibration, or electrical interference beyond the residential lot occupied by the home occupation. j. No person is employed at the residence who does not legally reside in the home. k. Persons do not come to the location of the home occupation to be dispatched to other locations. l. Sale of products related to the home occupation is allowed with the following conditions: 1. products are shipped to and from the premises, or 2. products sales occur off-site at a permissible location, or City council meeting of June 17, 2019 (Item No. 4d) Page 6 Title: Second reading - zoning ordinance amendment regarding home occupations 3. customers visit the premises by appointment only, or 4. products are sold on the premises at garage sales as regulated by this chapter. m. No more than one non-illuminated wall sign up to two square feet in area is used to identify the home occupation. n. The home occupation does not include any of the following uses: auto body/painting, motor vehicle sales, motor vehicle service and repair, small engine repair, massage, medical/dental office, animal handling, beauty shop and barbershop, firearm sales, currency exchange, payday loan agency, sexually-oriented business or high-impact sexually oriented business. Section 3. Chapter 36, Sections 36-164(e)(4) and (5) of the St. Louis Park City Code are hereby amended in their entirety to read as follows. (4) Family day care facilities serving 14 or fewer persons with the following condition: a. No person is employed at the residence who does not legally reside in the home except that a licensed family day care facility may have one outside employee. (5) Home occupations complying with all the following conditions: a. The city has approved a Registration of Land Use for any home occupation established after July 12, 2019, that has customers or students coming to the site. b. The home occupation and structure housing the home occupation meets all applicable fire and building codes, as well as any other City, County, State, or Federal regulations. c. The home occupation is clearly incidental and subordinate to the residential use of the property and does not change the character of the property. d. Space within the dwelling devoted to the home occupation does not exceed one room or ten percent of the floor area, whichever is greater. e. No portion of the home occupation is conducted within any attached or detached accessory building. f. Operation of the home occupation is not apparent from the public right-of-way. g. Only equipment, machinery, and materials which are normally found in the home are used in the conduct of the home occupation. h. All material or equipment is stored within an enclosed structure. i. The home occupation does not produce nuisance noise, odors, smoke, heat, glare, vibration, or electrical interference beyond the residential lot occupied by the home occupation. j. No person is employed at the residence who does not legally reside in the home. k. Persons do not come to the location of the home occupation to be dispatched to other locations. l. Sale of products related to the home occupation is allowed with the following conditions: 1. products are shipped to and from the premises, or 2. products sales occur off-site at a permissible location, or 3. customers visit the premises by appointment only, or 4. products are sold on the premises at garage sales as regulated by this chapter. m. No more than one non-illuminated wall sign up to two square feet in area is used to identify the home occupation. City council meeting of June 17, 2019 (Item No. 4d) Page 7 Title: Second reading - zoning ordinance amendment regarding home occupations n. The home occupation does not include any of the following uses: auto body/painting, motor vehicle sales, motor vehicle service and repair, small engine repair, massage, medical/dental office, animal handling, beauty shop and barbershop, firearm sales, currency exchange, payday loan agency, sexually-oriented business or high-impact sexually oriented business. Section 4. Chapter 36, Sections 36-165(e)(4) and (5) of the St. Louis Park City Code are hereby amended in their entirety to read as follows. (4) Family day care facilities serving 14 or fewer persons with the following conditions: a. No person is employed at the residence who does not legally reside in the home except that a licensed family day care facility may have one outside employee. (5) Home occupations complying with all the following conditions: a. The city has approved a Registration of Land Use for any home occupation established after July 12, 2019, that has customers or students coming to the site. b. The home occupation and structure housing the home occupation meets all applicable fire and building codes, as well as any other City, County, State, or Federal regulations. c. The home occupation is clearly incidental and subordinate to the residential use of the property and does not change the character of the property. d. Space within the dwelling devoted to the home occupation does not exceed one room or ten percent of the floor area, whichever is greater. e. No portion of the home occupation is conducted within any attached or detached accessory building. f. Operation of the home occupation is not apparent from the public right-of-way. g. Only equipment, machinery, and materials which are normally found in the home are used in the conduct of the home occupation. h. All material or equipment is stored within an enclosed structure. i. The home occupation does not produce nuisance noise, odors, smoke, heat, glare, vibration, or electrical interference beyond the residential lot occupied by the home occupation. j. No person is employed at the residence who does not legally reside in the home. k. Persons do not come to the location of the home occupation to be dispatched to other locations. l. Sale of products related to the home occupation is allowed with the following conditions: 1. products are shipped to and from the premises, or 2. products sales occur off-site at a permissible location, or 3. customers visit the premises by appointment only, or 4. products are sold on the premises at garage sales as regulated by this chapter. m. No more than one non-illuminated wall sign up to two square feet in area is used to identify the home occupation. n. The home occupation does not include any of the following uses: auto body/painting, motor vehicle sales, motor vehicle service and repair, small engine repair, massage, medical/dental office, animal handling, beauty shop and barbershop, firearm sales, currency exchange, payday loan agency, sexually-oriented business or high-impact sexually oriented business. City council meeting of June 17, 2019 (Item No. 4d) Page 8 Title: Second reading - zoning ordinance amendment regarding home occupations Section 5. Chapter 36, Section 36-166(e)(4) of the St. Louis Park City Code is hereby amended in its entirety to read as follows. (4) Family day care facilities serving 14 or fewer persons with the following conditions: a. No person is employed at the residence who does not legally reside in the home except that a licensed family day care facility may have one outside employee. Section 6. Chapter 36, Section 36-166(e)(7) of the St. Louis Park City Code is hereby amended in its entirety to read as follows. (7) Home occupations complying with all the following conditions: a. The city has approved a Registration of Land Use for any home occupation established after July 12, 2019, that has customers or students coming to the site. b. The home occupation and structure housing the home occupation meets all applicable fire and building codes, as well as any other City, County, State, or Federal regulations. c. The home occupation is clearly incidental and subordinate to the residential use of the property and does not change the character of the property. d. Space within the dwelling devoted to the home occupation does not exceed one room or ten percent of the floor area, whichever is greater. e. No portion of the home occupation is conducted within any attached or detached accessory building. f. Operation of the home occupation is not apparent from the public right-of-way. g. Only equipment, machinery, and materials which are normally found in the home are used in the conduct of the home occupation. h. All material or equipment is stored within an enclosed structure. i. The home occupation does not produce nuisance noise, odors, smoke, heat, glare, vibration, or electrical interference beyond the residential lot occupied by the home occupation. j. No person is employed at the residence who does not legally reside in the home. k. Persons do not come to the location of the home occupation to be dispatched to other locations. l. Sale of products related to the home occupation is allowed with the following conditions: 1. products are shipped to and from the premises, or 2. products sales occur off-site at a permissible location, or 3. customers visit the premises by appointment only, or 4. products are sold on the premises at garage sales as regulated by this chapter. m. No more than one non-illuminated wall sign up to two square feet in area is used to identify the home occupation. n. The home occupation does not include any of the following uses: auto body/painting, motor vehicle sales, motor vehicle service and repair, small engine repair, massage, medical/dental office, animal handling, beauty shop and barbershop, firearm sales, currency exchange, payday loan agency, sexually-oriented business or high-impact sexually oriented business. City council meeting of June 17, 2019 (Item No. 4d) Page 9 Title: Second reading - zoning ordinance amendment regarding home occupations Section 7. Chapter 36, Section 36-167(e)(4) of the St. Louis Park City Code is hereby amended in its entirety to read as follows. (4) Family day care facilities serving 14 or fewer persons with the following conditions: a. No person is employed at the residence who does not legally reside in the home except that a licensed family day care facility may have one outside employee. Section 8. Chapter 36, Section 36-167(e)(6) of the St. Louis Park City Code is hereby amended in its entirety to read as follows. (6) Home occupations complying with all the following conditions: a. The city has approved a Registration of Land Use for any home occupation established after July 12, 2019, that has customers or students coming to the site. b. The home occupation and structure housing the home occupation meets all applicable fire and building codes, as well as any other City, County, State, or Federal regulations. c. The home occupation is clearly incidental and subordinate to the residential use of the property and does not change the character of the property. d. Space within the dwelling devoted to the home occupation does not exceed one room or ten percent of the floor area, whichever is greater. e. No portion of the home occupation is conducted within any attached or detached accessory building. f. Operation of the home occupation is not apparent from the public right-of-way. g. Only equipment, machinery, and materials which are normally found in the home are used in the conduct of the home occupation. h. All material or equipment is stored within an enclosed structure. i. The home occupation does not produce nuisance noise, odors, smoke, heat, glare, vibration, or electrical interference beyond the residential lot occupied by the home occupation. j. No person is employed at the residence who does not legally reside in the home. k. Persons do not come to the location of the home occupation to be dispatched to other locations. l. Sale of products related to the home occupation is allowed with the following conditions: 1. products are shipped to and from the premises, or 2. products sales occur off-site at a permissible location, or 3. customers visit the premises by appointment only, or 4. products are sold on the premises at garage sales as regulated by this chapter. m. No more than one non-illuminated wall sign up to two square feet in area is used to identify the home occupation. n. The home occupation does not include any of the following uses: auto body/painting, motor vehicle sales, motor vehicle service and repair, small engine repair, massage, medical/dental office, animal handling, beauty shop and barbershop, firearm sales, currency exchange, payday loan agency, sexually-oriented business or high-impact sexually oriented business. City council meeting of June 17, 2019 (Item No. 4d) Page 10 Title: Second reading - zoning ordinance amendment regarding home occupations Section 9. This ordinance shall take effect fifteen days after its publication. Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Approved as to form and execution: Melissa Kennedy, City Clerk Soren Mattick, City Attorney First Reading May 20, 2019 Second Reading June 17, 2019 Date of Publication June 27, 2019 Date Ordinance takes effect July 12, 2019 City council meeting of June 17, 2019 (Item No. 4d) Page 11 Title: Second reading - zoning ordinance amendment regarding home occupations SUMMARY FOR PUBLICATION Ordinance No. ____-19 An ordinance regarding home occupations This ordinance amends the home occupation regulations in the City of St. Louis Park. It amends the home occupations land use description. It allows limited retails sales with certain conditions. It specifically prohibits firearm sales, currency exchange, payday loan agency, and sexually-oriented business from being operated as a home occupation. It requires an approved Registration of Land Use for any home occupation established after July 12, 2019 when the home occupation has customers or students coming to the site. The ordinance effects several sections and subsections in Chapter 36 of the city code, including Sections 36-142(d)(14), 36- 163(e)(4) and (5), 36-164(e)(4) and (5), 36-165(e)(4) and (5), Section 36-166(e)(4), 36-166(e)(7), and 36-167(e)(4) and (6). This ordinance shall take effect 15 days after publication. Adopted by the City Council July 12, 2019 Jake Spano /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: June 27, 2019 Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4e Executive summary Title: First Amendment to Preliminary Development Agreement - Sherman Associates Recommended action: Motion to adopt Resolution approving the First Amendment to the Preliminary Development Agreement between the EDA, city, and Sherman Associates relative to the Beltline Blvd Station Redevelopment Site. Policy consideration: Does the EDA/city council wish to extend the Preliminary Development Agreement with Sherman Associates so as to continue joint efforts to prepare a mixed-use development plan for the Beltline Blvd Station Redevelopment Site? Summary: On February 5, 2018, the EDA and city council approved a Preliminary Development Agreement (PDA) between the EDA, city and Sherman Associates in which the parties pledged to work cooperatively together toward a mutually acceptable mixed-use redevelopment plan for the Beltline Blvd Station Redevelopment Site. Over the past year, the parties have been working collaboratively on a joint development vision for the site. However, the necessity to obtain full fee title to the parcels at the southeast quadrant of Highway 7 and Beltline Blvd and the 4725 Highway 7 property took precedence as without them the development potential of the entire site would be severely limited. Now that those title issues have been resolved, the parties are preparing a more definitive site plan and development program for the redevelopment site. The original PDA expires June 30, 2019 unless it is extended. Given the progress made to date and the parties’ ongoing mutual interest in the proposed redevelopment site, the parties wish to extend the PDA to June 30, 2020 by which point the parties hope to reach a formal Purchase and Redevelopment Contract. The proposed PDA extension was noted in the March 18, 2019 special study session staff report and requires approval by both the EDA and city council. The purpose of the PDA is to formalize the respective parties’ obligations under the SWLRT Funding Agreements with the Metropolitan Council and the Congestion Mitigation Air Quality (CMAQ) grant with the Federal Transit Administration for the structured public parking at the SWLRT Beltline Blvd Station, and the parties’ respective responsibilities relative to further defining a redevelopment plan. The PDA also provides Sherman Associates with formal permission to access the Station Site in order to continue conducting its due diligence as well as provide Sherman with exclusive rights to negotiate acquisition of the subject properties with the EDA and the city. This is essential as it provides Sherman with assurance of its ability to secure the subject properties once a mutually acceptable redevelopment plan for the site has been reached. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting Documents: Resolution First Amendment to Preliminary Dev Agreement – see EDA agenda Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager Choose an item. meeting of June 17, 2019 (Item No. 4e) Page 2 Title: First Amendment to Preliminary Development Agreement - Sherman Associates Resolution No. 19-___ Resolution approving a First Amendment to the Preliminary Redevelopment Agreement between the St. Louis Park Economic Development Authority and, the City of St. Louis Park and Beltline Development LLC Be it resolved by the City Council (the “Council”) of the City of St. Louis Park, Minnesota (the “City”) as follows: Recitals. Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1082, as amended, the St. Louis Park Economic Development Authority (the “Authority”) administers its Redevelopment Project No. 1 (the “Project”), for the purpose of facilitating the redevelopment of certain substandard property within the Project. The City and the Authority own certain property (the “Property”) within the Project, which Property has been the subject of certain preliminary negotiations with Beltline Development LLC (the “Developer”) for purposes of constructing a mixed-use (multi-family residential and commercial) development on the Property and related parking, including a parking ramp serving in part as a park and ride facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station (the “Development”). 1.03. The City, the Authority, and the Developer executed a Preliminary Development Agreement, dated as of February 5, 2018 (the “Agreement”), providing for the performance of certain activities on the part of the parties in preparation for the negotiation of a definitive Purchase and Redevelopment Contract in connection with the Property. 1.04. The parties have negotiated and propose to execute a First Amendment to the Agreement (the “First Amendment”) to extend the deadline for the completion of these preliminary activities for a period of up to twelve months. Section 2. First Amendment Approved. 2.01. The First Amendment as presented to the Council is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Mayor and City Manager, provided that execution of the First Amendment by such officials shall be conclusive evidence of approval. 2.02. The Mayor and City Manager are hereby authorized to execute on behalf of the City the First Amendment and any documents referenced therein requiring execution by the City, and to carry out, on behalf of the City, its obligations thereunder. Choose an item. meeting of June 17, 2019 (Item No. 4e) Page 3 Title: First Amendment to Preliminary Development Agreement - Sherman Associates 2.03. City staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Reviewed for Administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4f Executive summary Title: Resolution authorizing the city’s participation in local performance measurement program Recommended action: Motion to adopt Resolution authorizing the city’s participation in local performance measurement program. Policy consideration: Does the city council wish to participate in the local performance measurement program for 2019? Summary: In 2010, the Legislature created the Council on Local Results and Innovation (CLRI) and charged the group with developing a voluntary performance measurement reporting program for Minnesota cities and counties. In order to participate in the program, each city or county must pass a resolution that confirms participation and implement a minimum of ten performance measures developed by the CLRI. All participants are required to file a report with the Office of the State Auditor by July 1, 2019. The report must include a resolution declaring participation in the program and a report with a minimum of ten performance measures. The city began participation in 2018 and received $6,849. Staff have developed the tools necessary to participate in the program for 2019. If the city’s participation is approved by the council, staff will submit the attached data for 2018 and the signed resolution to the Office of the State Auditor by July 1, 2019. In order to comply with the posting requirements, the data will be available to residents on the city’s website. Financial or budget considerations: A city or county that chooses to participate in the program is eligible for a reimbursement of $0.14 cents per capita from the State. In addition, the city would also be exempt from levy limits under sections 275.70 to 275.74 for taxes payable in the following calendar year, if levy limits are in effect. Strategic priority consideration: Not applicable. Supporting documents: Resolution Report on Performance Measures for 2019 Prepared by: Tim Simon, Chief Financial Officer Maria Carrillo Perez, Management Assistant Reviewed by: Nancy Deno, Deputy City Manager Approved by: Tom Harmening, City Manager Page 2 City council meeting of June 17, 2019 (Item No. 4f) Title: Resolution authorizing the city’s participation in local performance measurement program Resolution No. 19-___ Authorizing reporting requirements for the local performance measurement program Whereas, in 2010, the Minnesota Legislature created the Council on Local Results and Innovation; and Whereas, the Council on Local Results and Innovation developed a standard set of performance measures that will aid residents, taxpayers, and state and local elected officials in determining the efficiency of cities in providing services and measure residents’ opinion of those services; and Whereas, benefits to the City of St. Louis Park are outlined in MS 6.91 and include eligibility for a reimbursement as set by State statute; and Whereas, any city/county participating in the comprehensive performance measurement program is also exempt from levy limits for taxes, if levy limits are in effect; and Whereas, the City Council of St. Louis Park has adopted and implemented at least 10 of the performance measures, as developed by the Council on Local Results and Innovation, and a system to use this information to help plan, budget, manage and evaluate programs and processes for optimal future outcomes; and Now therefore let it be resolved that, the City Council of St. Louis Park will report the results of the performance measures to its citizenry by the end of the year through publication, direct mailing, posting on the city’s/county’s website, or through a public hearing at which the budget and levy will be discussed and public input allowed. Be it further resolved, the City Council of St. Louis Park will submit to the Office of the State Auditor the actual results of the performance measures adopted by the city. Wherefore, I set my hand and cause the Great Seal of the City of St. Louis Park to be affixed this 17th day of June, 2019. Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk St. Louis Park • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2575 • Fax: 952.928.2662 • TTY: 952.924.2518 Report on Performance Measures for 2018 City of St. Louis Park Category # Performance Measure Data General 1. Percent change in the taxable property market value 8.45% 2. Number of nuisance code enforcement cases per 1,000 population 6 3. Bond Rating AAA Police Service 4. Part I and II Crime Rates Part I: 1,315 Part II: 1,112 Fire & EMS Service 5. Insurance industry rating of fire services ISO 2 6. EMS calls per 1,000 population 78.56 Streets 7. Average city street pavement condition rating 65.4 8. Expenditures for road rehabilitation per paved lane mile rehabilitated (jurisdiction only roads) $382,530.87 9. Percentage of all jurisdiction lane miles rehabilitated in the year 1.90% Water 10. Operating costs per 1,000,000 gallons of water pumped/produced $3,343.41 City council meeting of June 17, 2019 (Item No. 4f) Title: Resolution authorizing the city’s participation in local performance measurement program Page 3 Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4g Executive summary Title: Approve out-of-state travel – NLC Summer Board & Leadership Meeting Recommended action: Motion to approve out-of-state travel of Mayor Jake Spano to attend the National League of Cities (NLC) Summer Board & Leadership Meeting in Indianapolis, IN on June 25-27, 2019. Policy consideration: Pursuant to MN Statute 471.661 and Resolution No. 06-007, City of St. Louis Park Elected Official Out-of-State Travel Policy, the city council is required to approve any travel outside the State of Minnesota for elected officials. Financial or budget considerations: This is a 2019 budgeted item. Strategic priority consideration: Not applicable. Supporting documents: None Prepared by: Debbie Fischer, Administrative Services Office Assistant Approved by: Tom Harmening, City Manager Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4h Executive summary Title: Approve consultant contract amendment - SCADA system replacement project (5318- 5006) Recommended action: Motion to authorize execution of an amendment to a professional services contract with Advanced Engineering and Environmental Services (AE2S) in the amount of $470,925 for the 2019 SCADA system replacement project (5318-5006). Policy consideration: Does the city council wish to pursue the replacement and upgrade of the SCADA system to ensure that the city can continue to serve the current and future needs of the community? Summary: Reliable water systems within a community, whether it's drinking water, wastewater, or stormwater, are critical to meeting the basic needs of its citizens. Operating and maintaining each of these complex utility systems relies heavily upon the effective performance of the Supervisory Control and Data Acquisition (SCADA) system. A SCADA system continuously monitors these various systems and alerts staff when issues arise before they become a major problem. On May 20, 2019, the city entered into a contract with Telemetry & Process Controls, Inc. to upgrade the city’s SCADA system. In addition to the installation of physical improvements, the system also needs to be programmed to operate effectively. To do this, the city has contracted with AE2S. AE2S will provide SCADA programming services which consist of professional programming services for the Programmable Logic Controllers (PLC), Operator Interface Terminals (OIT), networking equipment, SCADA software and computer hardware related to the project. The cost for AE2S to complete these services is $470,925. Financial or budget considerations: This project is included in the city’s 2019 capital improvement plan (CIP) and will be paid for using the water utility, sanitary sewer and storm sewer funds. Strategic priority consideration: Not applicable. Supporting documents: Discussion City Council report May 20, 2019 (page 16-18) Prepared by: Aaron Wiesen, Project Engineer Reviewed by: Mark Hanson, Public Works Superintendent Debra Heiser, Engineering Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4h) Page 2 Title: Approve consultant contract amendment - SCADA system replacement project (5318-5006) Discussion The SCADA programming services contract consists of professional programming services for the PLCs, OITs, networking equipment, SCADA software, and computer hardware related to the Project, including: •Coordination with Owner to have the General Contractor purchase computer hardware and software components in accordance with the specifications and drawings. •Programming and equipment for: o Eight (8) water treatment plant sites o One (1) water storage site o Twenty-three (23) sanitary lift station sites o Five (5) storm water lift station sites o Telemetry Master PLC •Review field Input/output (I/O) scheme for proper operation, provide I/O checkout and verify proper operation and control of system components. •Installing SCADA software and configuring computer hardware for: o Two (2) SCADA system servers: One (1) configured for virtual machine operation One (1) configured as stand-alone server and workstation •OIT and SCADA screen development in collaboration with Owner. o Anticipating 5 OIT screens per site with an OIT. o Anticipating 55 SCADA screens: One (1) screen per site with a PLC Ten (10) system operations screens •Decommissioning of the two (2) existing SCADA servers and software. •Programming of four (4) separate system operation reports. •SCADA system and site operational training (16 hrs. anticipated). Contract Amendment: AE2S was awarded the original contract for this project on December 4, 2017 for $208,182. This contract was for SCADA system assessment, SCADA system design and construction/build phase services. During a 50% design meeting there was an agreed upon change in the scope of the project from the assessment phase. The change in scope required additional fees for AE2S to conduct the SCADA system design and the construction/build phase services. On February 11, 2019, the city manager approved a change order of $99,435 to amend the original contract to account for these changes in scope. This change order modified the contract limit to $307,617. This amendment, which adds the SCADA programing services to the current AE2S contract, is necessary to complete the SCADA system replacement project. The programming services are vital to ensure these complex utility systems are operated and maintained correctly. The SCADA system continuously monitors these various systems and alerts staff when issues arise before they become a major problem. A summary of the contract and amendments with AE2S is shown in the table below. City council meeting of June 17, 2019 (Item No. 4h) Page 3 Title: Approve consultant contract amendment - SCADA system replacement project (5318-5006) Amount Original contract $208,182 Change order #1 (approved by city manager) $99,435 Amendment #1 $470,925 Total AE2S Contract $778,542 This SCADA programing services work is an expected phase of the overall SCADA system replacement project and the associated costs was included in the original CIP budget. The city is still well within the CIP budget. See the SCADA system replacement project bid tabulation report in the May 20, 2019, city council packet for additional information on the funding for this project (attached). Proposed Schedule: SCADA system replacement project schedule SCADA system construction/ administration June 2019 - June 2020 Substantial completion May 2020 SCADA system training - final/ review June 2020 Final completion/ installation completed June 2020 Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4i Executive summary Title: Retirement recognition for Police Officer Dennis Maki Recommended action: Motion to adopt Resolution to recognize Dennis Maki for his 23 plus years of service. Policy consideration: None at this time. Summary: City policy states that employees who retire or resign in good standing with over 20 years of service will be presented with a resolution from the mayor, city manager and city council. This consent item will officially adopt the resolution that honors Dennis for his years of service. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Ali Timpone, HR Manager Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4i) Page 2 Title: Retirement recognition for Police Officer Dennis Maki Resolution No. 19-___ Resolution of the City Council of the City of St. Louis Park, Minnesota recognizing the contributions and expressing appreciation to Police Officer Dennis Maki Whereas, Dennis Maki began his employment with the City of St. Louis Park over 23 years ago on November 27, 1995; and Whereas, Dennis faithfully served the citizens of St. Louis Park for 17 years as a patrol officer; and Whereas, Dennis served as the department’s Drug Abuse and Resistance Education Officer from January 1999 to January 2003 where he developed lasting relationships with students and staff members in the St. Louis Park Public Schools, Jewish Day School and Torah Academy; and Whereas, Dennis served as the department’s School Resource Officer from September 2017 until his retirement, and during this assignment Dennis continued to develop lasting relationships with students and staff members with Benilde St. Margaret’s, Torah Academy, community members and business owners; and Whereas, prior to starting his career with the St. Louis Park Police Department, Dennis served as a Corporal in the United States Marine Corps from August 1984 to June 1988 and as a police officer with the Fort Dodge Iowa Police Department from February 1994 to November 1995; and Now therefore be it resolved that the City Council of the City of St. Louis Park, Minnesota, by this resolution and public record, would like to thank Dennis Maki for his great contributions and more than 23 years of dedicated service to the City of St. Louis Park and wish him the best in his retirement. Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4j Executive summary Title: Accept monetary donation from Rotary Club of St. Louis Park Recommended action: Motion to adopt Resolution approving acceptance of a monetary donation from the Rotary Club of St. Louis Park in the amount of $2,000 for the Recreation Division’s Family Movie Nights program. Policy consideration: Does the city council wish to accept the gift with restrictions on its use? Summary: State statute requires city council’s acceptance of donations. This requirement is necessary to make sure the city council has knowledge of any restrictions placed on the use of each donation prior to it being expended. The Rotary Club of St. Louis Park is graciously donating an amount of $2,000. The donation is given with the restriction that it be used toward the Family Movie Nights program. The Rotary Club of St. Louis Park accepted donations at the Annual Bundled Up event held on January 26, 2019. Financial or budget considerations: This donation will be used to support the Recreation Division’s Family Movie Nights. The series is budgeted in the Organized Recreation budget. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Resolution Prepared by: Nate Rosa, Recreation Supervisor Reviewed by: Cynthia S. Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4j) Page 2 Title: Accept monetary donation from Rotary Club of St. Louis Park Resolution No. 19-____ Resolution approving acceptance of donation in the amount of $2,000 to be used for the family movie nights program Whereas, The City of St. Louis Park is required by State statute to authorize acceptance of any donations; and Whereas, the city council must also ratify any restrictions placed on the donation by the donor; and Whereas, the Rotary Club of St. Louis Park donated $2,000 to assist in the funding of the Recreation Division’s Family Movie Nights; and Now therefore be it resolved, by the City Council of the City of St. Louis Park that the gift is hereby accepted with thanks to the Rotary Club of St. Louis Park with the understanding that it must be used to assist in funding the Recreation Division’s Family Movie Nights. Reviewed for Administration Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4k Executive summary Title: Temporary on-sale intoxicating liquor license – Beth El Synagogue Recommended action: Motion to approve a temporary on-sale intoxicating liquor license for Beth El Synagogue, 5225 Barry Street, intended for the Common Sound Music Festival to be held June 30, 2019. Policy consideration: Does the applicant meet the requirements for issuance of a temporary on-sale intoxicating liquor license? Summary: Beth El Synagogue has made application for a temporary on-sale liquor license for the Common Sound Music Festival. The second annual festival will take place in the parking lot of the Beth El Synagogue, 5225 Barry Street, on Sunday June 30, 2019 from 2 – 9:30 p.m. The afternoon will feature all ages programming and entertainment with several artists performing throughout the day. Multiple food trucks will accompany the beer garden, where Steel Toe Brewing will again be the exclusive provider of beer for the festival. Net proceeds from the festival will be used to fund financial aid for families in need at both Benilde-St. Margaret and Beth El Synagogue. The police department has completed a background investigation on all parties and no concerns have been found regarding issuance of the temporary license. The applicant has met all requirements for issuance of the license. Financial or budget considerations: The fee for a temporary liquor license is $100 per day of the event. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: None Prepared by: Chase Peterson-Etem, Office Assistant – City Clerk’s Office Reviewed by: Melissa Kennedy, City Clerk Approved by: Tom Harmening, City Manager Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4l Executive summary Title: Resolution supporting the city hosting a Minnesota GreenCorps member in St. Louis Park Recommended action: Motion to adopt Resolution supporting the City of St. Louis Park serving as a 2019-2020 MN GreenCorps member host site. Policy consideration: Does the city council wish to participate as a host site for the MN GreenCorps program? Summary: The city applied to host an AmeriCorps member from the Minnesota GreenCorps, a program of the Minnesota Pollution Control Agency (MPCA). The Minnesota GreenCorps program is as an environmentally focused initiative. Following a competitive solicitation process, St. Louis Park was approved as a host site for the 2019-2020 year of the Minnesota GreenCorps program. MPCA recruits and selects environmentally-focused new college graduates or late year college students as members and places them with various host sites to spend a year of service addressing critical and current environmental issues. The goal is for the member to gain valuable work and job skills experience, while the host site accomplishes environmental goals and objectives. The St. Louis Park GreenCorps member will assist with: •Community tree inventory – updating current tree inventory and integrate data into the Cartegraph asset management program. •Create outreach and education items using tree inventory data and other software such as i-tree. •Natural resource management. •Facilitating partnerships with related organizations. Financial or budget considerations: The cost to the city for this opportunity are in-house items, such as office space, office phone and supervision time. The MPCA will directly pay and insure the GreenCorps member. The city of St. Louis Park Natural Resources Coordinator will supervise the member and coordinate requisite logistics with the MPCA. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Resolution Prepared by: Jim Vaughan, Natural Resource Coordinator Reviewed by: Cynthia S. Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4l) Page 2 Title: Resolution supporting the city hosting a Minnesota GreenCorps member in St. Louis Park Resolution No. 19-__ Resolution supporting City of St. Louis Park becoming a 2019-2020 MN GreenCorps member host site Whereas, the City of St. Louis Park has applied to host an AmeriCorps member from the Minnesota GreenCorps, a program of the Minnesota Pollution Control Agency (MPCA), for the 2019-2020 program year; and Whereas, the Minnesota GreenCorps member proposed work plan for the City of St. Louis Park is to include community forestry duties of inventory, environmental outreach and education and asset management; and Whereas, the MPCA requires a board/council resolution in support of GreenCorps host site application, indicating the organization’s commitment to host a Minnesota GreenCorps member; and Whereas, to realize the opportunity to serve as a host for Minnesota GreenCorps, the City of St. Louis Park must enter a host site agreement with the MPCA that identifies the terms, conditions, roles and responsibilities; and Whereas, The City of St. Louis Park, on May 2, 2019, was notified that it has been granted tentative approval to host a Minnesota GreenCorps member; Now therefore be it resolved the St. Louis Park City Council supports the city as host to a 2019-2020 Minnesota GreenCorps member and authorizes staff to enter into and sign a host site agreement with the MPCA. Reviewed for Administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4m Executive summary Title: Bond reimbursement resolution for water and storm water projects Recommended action: Motion to adopt Resolution declaring the official intent of the City of St. Louis Park to reimburse certain expenditures from the proceeds of bonds to be issued by the city. Policy consideration: Does the city council want to be able to preserve our ability to reimburse ourselves for all of our city costs related to upcoming water and storm water projects? Summary: The city has in the past adopted reimbursement resolutions for projects to ensure, based on the project timeline, we have the ability to go back and reimburse ourselves for the costs incurred before we receive the bond proceeds. In order to preserve the ability to reimburse ourselves a resolution of intent by the city to use bond proceeds to finance all or a portion of the expenditures is required prior to incurring those costs. The city is also eligible to be reimbursed for “preliminary expenditures”, such as architectural, engineering, and surveying costs, etc., up to an amount allowed under the reimbursement regulations. The attached resolution covers both the construction and preliminary expenditures. The $6,400,000 (project budget) reimbursement maximum would cover all projected costs for water and storm water related infrastructure related to Walker Lake, Cedar Lake Road and the 2019 pavement management projects. The issuance of these G.O. utility revenue bonds for these projects is consistent with the Long Range Financial Management Plan, and the rate study from 2018 and best allows the city to keep its very strong financial position. The issuance of bonds for projects such as these allows the costs to be paid over the course of fifteen years. This spreads the cost of the improvements to future property owners or businesses that will benefit from the improvements, and not just the current residents and businesses. Financial or budget considerations: It is currently anticipated bonds will be issued in the fall of 2019 or early 2020. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Tim Simon, Chief Financial Officer Reviewed by: Nancy Deno, Deputy City Manager/ HR Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4m) Page 2 Title: Bond reimbursement resolution for water and storm water projects Resolution No. 19-____ Resolution declaring the official intent of the City of St. Louis Park to reimburse certain expenditures from the proceeds of bonds to be issued by the city Whereas, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the “Reimbursement Regulations”) providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and Whereas, the City expects to incur certain expenditures that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-exempt bond; Whereas, the City has determined to make this declaration of official intent (the “Declaration”) to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations. Now, therefore, be it resolved by the city council of the city of st. Louis park as follows: 1.The City proposes to undertake a project consisting of the construction of improvements to its municipal water and storm water facilities (the “Project”). 2.The City reasonably expects to reimburse the expenditures made for certain costs of the Project from the proceeds of one or more series of bonds in an estimated maximum aggregate principal amount of $6,400,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. 3.This Declaration has been made not later than 60 days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) “preliminary expenditures” up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term “preliminary expenditures” includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commencement of construction. 4.This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the bonds described in paragraph 2 are consistent with the City’s budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, City council meeting of June 17, 2019 (Item No. 4m) Page 3 Title: Bond reimbursement resolution for water and storm water projects allocated on a long-term basis, or otherwise set aside pursuant to the City’s budget or financial policies to pay such Project expenditures. 5. This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. Reviewed for Administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4n Executive summary Title: Amend city council rules of procedure Recommended action: Motion to adopt Resolution amending the St. Louis Park City Council rules of procedure relating to meeting start times and the pledge of allegiance. Policy consideration: Does the city council want to amend the rules of procedure to change the start time for regular council meetings and remove from the agenda the reciting of the pledge of allegiance? Summary: St. Louis Park City Code Section 2-31 states that the city council shall establish meeting times and adopt rules of procedure from time to time by resolution. In August, 2000 the city council rules of procedure were adopted to provide guidelines for the conduct of public business by the city council. The rules of procedure were amended in 2014 to establish a new procedure for the selection of Mayor Pro Tem. The city council recently discussed several potential amendments and directed staff to prepare a resolution that would amend the city council rules of procedure by changing the start time of regular meetings (held on the first and third Mondays of each month) to 6:30 p.m. and to eliminate the requirement that the council recite the Pledge of Allegiance at the start of each meeting. If approved, the proposed changes would take effect for the July 15, 2019 regular city council meeting. Financial or budget considerations: None. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Resolution City council rules of procedure (proposed) Prepared by: Melissa Kennedy, City Clerk Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4n) Page 2 Title: Amend city council rules of procedure Resolution No. 19-___ Resolution amending the city council rules of procedure relating to the start time for regular meetings and eliminating the recitation of the Pledge of Allegiance at the start of every meeting. Whereas, St. Louis Park City Code Section 2-31 states that the city council shall establish meeting times and adopt rules of procedure from time to time by resolution; and Whereas, by Resolution No. 00-108, the city council adopted the rules of procedure and shall adhere to the rules as stated therein unless revised by a majority vote of the city council; and Whereas, the city council desires to amend its rules of procedure as they relate to the start time for regular meetings and the recitation of the Pledge of Allegiance. Now therefore be it resolved that Section II. E. and Section III. E. are hereby amended by deleting stricken language and adding underlined language: II. Meetings. E. Regular meetings. Regular meetings will be held on the first and third Mondays of each month at 7:30 6:30 p.m. If the meeting date falls on a holiday, the meeting will be scheduled on the next succeeding day that is not a holiday, unless another day has been designated in advance. A schedule of all regular meetings and recognized holidays will be kept on file at city hall. Regular meetings can be cancelled or rescheduled at any time, provided council meets at least once per month. III. Agenda and order of business. E. Call to order. At the hour appointed for meeting, the members shall be called to order by the mayor, and in their absence, by the mayor pro tem. The mayor will lead all present in the Pledge of Allegiance and instruct the secretary to call the roll and note the absences. The secretary will note in the minutes the time and point in proceedings when any member absent for roll call arrives, or when any member leaves prior to adjustment. Reviewed for administration: Adopted by the city council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk - i - City council rules of procedure Adopted August 21, 2000 by Resolution No. 00-108 Amended March 3, 2014 by Resolution No. 14-034 Amended June 17, 2019 by Resolution No. 19-XXX City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 3 City of St. Louis Park Council rules of procedure - i - Table of contents I. INTRODUCTION II. MEETINGS A. Quorum ............................................................................................. 1 B. Location ............................................................................................. 1 C. Notice of meetings ...................................................................................... 1 D. Meetings to be public ................................................................................. 1 E. Regular meetings ........................................................................................ 1 F. Study sessions. ............................................................................................ 2 G. Continued meetings .................................................................................... 2 H. Special meetings ......................................................................................... 2 I. Emergency meetings ................................................................................... 2 J. Annual meeting ........................................................................................... 3 III. AGENDA AND ORDER OF BUSINESS A. Agenda………………… ..................................................................................... 3 B. Preparation and introduction of items for consideration .......................... 3 C. Delivery of the agenda ................................................................................ 4 D. Order of business for regular meetings ...................................................... 4 E. Call to order ............................................................................................. 4 F. Presentations ............................................................................................. 4 G. Approval of minutes ................................................................................... 4 H. Approval of agenda and consent items ...................................................... 5 I. Petitions, requests, communications from the public ............................... 5 J. Public hearings ............................................................................................ 5 K. Ordinances, resolutions and motions ......................................................... 5 L. Matters concerning boards and committees ............................................. 5 M. Communications ......................................................................................... 6 N. Adjournment ............................................................................................. 6 City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 4 City of St. Louis Park Council rules of procedure - ii - Table of contents (continued) IV. GENERAL RULES OF ORDER A. Parliamentary procedure ............................................................................ 6 B. Presiding officer .......................................................................................... 6 C. Preservation of order ................................................................................. 6 D. Points of order ............................................................................................ 6 E. Public order and decorum .......................................................................... 6 F. Manner of addressing the council .............................................................. 7 G. Time limit ............................................................................................. 7 City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 5 - 1 - City of St. Louis Park Council Rules of Procedure I. INTRODUCTION The purpose of these rules is to provide guidelines for the conduct of public business by the St. Louis Park City Council. All meetings of the city council will be conducted in accordance with the Minnesota Open Meeting Law, the City Charter and the Municipal Code of Ordinances. The proceedings of the council will be conducted as outlined in the third edition of The Standard Code of Parliamentary Procedure, written by Alice Sturgis and revised by the American Institute of Parliamentarians. II. MEETINGS A. Quorum A majority of all members elected to the council shall constitute a quorum to do business. Certain matters, however, may require more than a simple majority for passage. B. Location All meetings of the city council, including special, continued and emergency meetings, will be held in the council chambers of city hall, 5005 Minnetonka Blvd. unless the meeting notice published in advance of the meeting designates a different location. C. Notice of meetings Notice of all regular meetings, study sessions, special, emergency and continued meetings will be posted at city hall. D. Meetings to be public Meetings of the city council are open to the public, with the exception of executive sessions from which the public may be excluded for consideration of issues directly related to:  Labor negotiations;  Comply with provisions contained in MN Data Privacy Act;  Preliminary consideration of allegations or charges against an employee of the city (the employee has the right to ask that the meeting be public);  Performance evaluation of an employee (the employee has the right to ask that the meeting be public);  Pending litigation and matters subject to attorney/client privilege. E. Regular meetings Regular meetings will be held on the first and third Mondays of each month at 6:30 p.m. If the meeting date falls on a holiday, the meeting will be scheduled on the next succeeding day that is not a holiday, unless another day has been designated in advance. A schedule of all regular meetings and recognized holidays will be kept on file at city hall. Regular meetings can be cancelled or rescheduled at any time, provided council meets at least once per month. City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 6 City of St. Louis Park Council rules of procedure - 2 - F. Study sessions Study sessions are held on the second and fourth Monday of each month and are scheduled at such time as to allow the council adequate time to discuss issues as noted on the agenda. Starting times will be noted on the meeting agenda and posted at city hall prior to the study session meeting. Study sessions may be cancelled at any time and need not be rescheduled. Study sessions are intended to be an opportunity for council to fully discuss issues and to gather information from staff, consultants or other sources concerning those issues. All general rules of decorum apply to study sessions with the exception that council is not required to hear testimony from the public unless that testimony is solicited by the council. G. Continued meetings Any meeting may be continued to a specified time, place and date. Less than a quorum of councilmembers may continue or postpone a meeting to a fixed, future time. If the time, date and place of a continued meeting is announced at an open meeting and that information is recorded in the minutes, no additional public notice is necessary. Otherwise, notice of the continued meeting is necessary. Continued meetings may themselves be continued to a later continued meeting. No continued meeting may be set for the same time as, or a time later than, the next regular meeting. H. Special meetings The mayor or any three members of the council may call a special meeting by filing a written statement with the city clerk. The clerk must deliver to the council at least one day prior to the meeting a notice of the date, time, place and purpose of the special meeting. If, however, all councilmembers attend and participate in the meeting, these notice requirements are not necessary. The presence of any member of the council at a special meeting shall constitute a waiver of any formal notice unless the councilmember appears for the special purpose of objecting to the holding of such meeting. Notice of the date, time, place and purpose of a special meeting must also be posted by the clerk on the principal bulletin board of the city at least three days prior to the date of the meeting. I. Emergency meetings An emergency meeting may be called due to circumstances which require immediate consideration. The clerk may notify council by any means available. A good faith effort shall be made to provide notice of the meeting to any news medium that has filed a written request for notice of meetings. The notice shall include the purpose of the meeting. City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 7 City of St. Louis Park Council rules of procedure - 3 - J. Annual meeting The council will hold its first meeting of the year on the first Monday in January to:  Establish council meeting dates for the year;  Designate the official newspaper;  Designate official depositories;  Appoint the councilmembers who will serve as mayor pro tem to perform the duties of the mayor during disability or absence, or, in the case of a vacancy in the office of mayor, until a successor has been appointed or elected. Commencing in 2014, councilmembers appointed as mayor pro tem serve a four month term beginning in January of each year, with the appointments made on a rotating basis based upon seniority. For councilmembers elected at the same time, seniority is based on alphabetical order of last name. All councilmembers willing to serve as mayor pro tem shall be appointed to a term before the rotation starts again with the most senior member. In the absence of the mayor and mayor pro tem, the most senior available councilmember will serve as acting mayor pro tem. In the event that a councilmember is unable to or chooses not to complete his or her term as mayor pro tem, the next councilmember in the rotation will complete the term and continue to serve his or her term as scheduled. III. AGENDA AND ORDER OF BUSINESS A. Agenda All reports, communications, ordinances, resolutions, contract documents and other matters intended for the agenda will be filed with the city manager’s office no later than 12:00 noon on the Wednesday prior to the Monday council meeting at which consideration is requested. No item of business or action of council which does not appear on the agenda for the meeting will be considered. Items of business that are of an emergency nature or which require immediate consideration may be added to the agenda if declared as such by a majority vote of the councilmembers present. B. Preparation and introduction of items for consideration Ordinances, resolutions and other matters which require action by the council may be prepared and introduced by the council, the city manager or city attorney and will be reviewed and approved prior to submission to the council by the city manager and/or city attorney. Members of the public may make requests to the council on any matter considered to be of concern to the city provided that the request is communicated in advance of the meeting so that the item of business can be added to the meeting agenda. Prior to placement on the agenda, requests from the public will be reviewed by appropriate city staff and measures to resolve the situation or assist the petitioner in making the presentation will be taken wherever appropriate. City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 8 City of St. Louis Park Council rules of procedure - 4 - Every ordinance and resolution shall be presented in writing and read in full at a council meeting. However, the reading of a resolution or an ordinance may be dispensed with by unanimous consent of the council. C. Delivery of the agenda The agenda will ordinarily be delivered to Councilmembers by each Friday preceding the scheduled meeting. At the time it is delivered to the Council, the agenda and all pertinent material not of a confidential nature shall also be available to the general public and the media. D. Order of business for regular meetings The order of business for each meeting shall be as contained in the agenda prepared by the city manager, as follows: 1. Call to order 2. Presentations 3. Approval of minutes 4. Approval of agendas and consent items 5. Boards and commissions 6. Public hearings 7. Requests and communications from the public 8. Resolutions, ordinances, motions 9. Communications 10. Adjournment Unless objection is made by motion of the council, the presiding officer may modify the foregoing order of business in order to accommodate citizens present or to expedite the business of the council. E. Call to order At the hour appointed for meeting, the members shall be called to order by the mayor, and in their absence, by the mayor pro tem. The mayor will instruct the secretary to call the roll and note the absences. The secretary will note in the minutes the time and point in the proceedings when any member absent for roll call arrives, or when any member leaves prior to adjournment. F. Presentations May include proclamations, service awards and other presentations of general community interest by the city council or an invited member of the public. G. Approval of minutes The minutes of each meeting will be recorded by the clerk or designated representative, and delivered to each councilmember with approval to be considered at a subsequent regular council meeting. Unless a reading of the minutes is requested by a council member, the minutes may be corrected and approved as printed without reading aloud. If there is no objection to the correction, it may be made without a vote of the council. If there is an objection, the council will vote on the correction. Upon approval the clerk will make City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 9 City of St. Louis Park Council rules of procedure - 5 - revisions and enter the minutes into the public record as the official minutes of the council. H. Approval of agenda and consent items The mayor will ask those present if there are changes or additions to the agenda. The mayor will also ask if there are any present who wish to move items from the list of consent items to another section of the agenda for discussion. Consent items are those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a councilmember or a member of the audience, that item will be moved to an appropriate section of the regular agenda for discussion. I. Petitions, requests, communications from the public Members of the public may make requests or present issues to the council on any matter considered to be of concern to the city. All pertinent procedures for placement of items on the agenda apply. J. Public hearings Public hearings are conducted when required by statute, charter or city ordinance. Council reserves the right to hold public hearings on any item. Notification is given to the public in advance of the meeting through the city’s official newspaper, or through direct mailing to interested and affected parties. K. Ordinances, resolutions and motions 1. Ordinance – used when the action of council regulates or governs people or property and provides a penalty for its violation. Any ordinance should be of general application within the city, and of a permanent and continuing nature. State statute and city charter also require certain actions to be in ordinance form. 2. Resolution – used for any action of a temporary or administrative nature when it is reasonably certain that the action to be taken is of significant historical value. 3. Motion – used for simple, administrative acts. Proceedings in the form of motions are considered to be equivalent to resolutions. L. Matters concerning boards and committees Council may hear or receive reports, make appointments, establish committees, hold discussion or conduct any other business regarding boards and commissions. City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 10 City of St. Louis Park Council rules of procedure - 6 - M. Communications At this time council and staff may raise issues to be considered for future discussion and provide information of interest to council, staff and the general public. Communication items needs not be placed on the agenda as they require no immediate action by the council. N. Adjournment The Mayor will ask those present if there are additional items of business. If there are no additional items and if no objection is heard from members present, the mayor will declare the meeting adjourned. IV. GENERAL RULES OF ORDER A. Parliamentary procedure The proceedings of the city council shall be conducted in accordance with the third edition of The Standard Code of Parliamentary Procedure, written by Alice Sturgis and revised by the American Institute of Parliamentarians. Failure to comply with these rules does not invalidate council action unless at the time the action is taken or promptly thereafter, a councilmember or other interested person objects to the method of procedure and points out to the council the particular rule which was not observed. B. Presiding officer The mayor shall be the presiding officer of the council. The mayor may make motions, second motions, or speak on any question and shall be entitled to vote like other members of the council. The mayor pro tem shall serve in the absence or disability of the mayor. In the absence of both the mayor and the mayor pro tem, the most senior available councilmember will serve as acting mayor pro tem. C. Preservation of order The mayor shall preserve order and decorum at all meetings of the council. All questions and remarks shall be addressed to the mayor, or through the mayor to the appropriate councilmember, staff member, citizen or other appropriate person. Before speaking, each person shall address the mayor and shall not proceed until being recognized by the mayor. Persons shall speak respectfully and shall confine remarks to the matter under debate. D. Points of order The mayor decides questions of order subject to the right of any councilmember to appeal to the council. In the event of an appeal, a majority vote of the council will govern and conclusively determine the question of order. E. Public order and decorum Members of the public attending council meetings will observe the same rules of order and decorum applicable to the council. Any person making inappropriate remarks or who becomes boisterous while addressing the council may, at the City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 11 City of St. Louis Park Council rules of procedure - 7 - discretion of the mayor or a majority of the council, be removed from the room and may be barred from further audience with the council. F. Manner of addressing the council Members of the public may speak to any item on the agenda. Each person addressing the council shall come forward and state their name and address for the record. All remarks should be addressed to the council as a body. G. Time limit If requested by the mayor, each person shall limit their address to 10 minutes. City council meeting of June 17, 2019 (Item No. 4n) Title: Amend city council rules of procedure Page 12 Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4o Executive summary Title: Amend Resolution No. 19-002 declaring city council meeting dates Recommended action: Motion to approve resolution amending Resolution No. 19-002 establishing city council meeting dates for 2019. Policy consideration: Does the city council wish to amend Resolution No. 19-002 to reflect the change in council meeting start times? Summary: The St. Louis Park City Council Rules of Procedure require the city council to set and approve their meeting dates annually. On January 7, 2019 the city council adopted Resolution No. 19-002 declaring city council meeting dates for 2019. The resolution includes a clause that references the start time for regular meetings. Because the council has requested a change in the start time for regular meetings the city attorney has advised that Resolution No. 19-002 be amended to match and reflect this change. The previously approved meeting dates outlined in Exhibit A of the resolution remain unchanged. Financial or budget considerations: None. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Resolution Prepared by: Melissa Kennedy, City Clerk Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4o) Page 2 Title: Amend Resolution No. 19-002 declaring city council meeting dates Resolution No. 19-____ Resolution amending Resolution No. 19-002 declaring 2019 city council meeting dates Whereas, the City Council Rules of Procedure require council to annually declare its public meetings for the year, and Whereas, the city council takes holidays into consideration when declaring public meetings and has chosen to not meet on New Year's Day, Martin Luther King Day, President's Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Christmas Day, Rosh Hashanah, Yom Kippur, Passover, Eid al-Fitr and Eid al-Adha of each year. For New Year’s Day, Christmas Day, Yom Kippur, Eid al-Fitr and Eid al-Adha, this includes the evening before the holiday. For Rosh Hashanah and Passover, this includes the evening before the holiday and the first and second evenings of the holiday, and Whereas, regular meetings will be held on the first and third Mondays of each month at 6:30 p.m. If the meeting date falls on a holiday, the meeting will be scheduled on the next succeeding day that is not a holiday, unless another day has been designated in advance. Regular meetings can be cancelled or rescheduled at any time, provided council meets at least once per month, and Whereas, the city council recognizes that not all religious holidays are included in this resolution and the council makes it known that reasonable accommodation will be made for religious reasons when notified by an applicant or a member of the public, Now, therefore be it resolved that the City Council of St. Louis Park has reviewed Exhibit A and declares those dates to be the public meeting dates of the city council. Reviewed for Administration: Adopted by the city council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk City council meeting of June 17, 2019 (Item No. 4o) Page 3 Title: Amend Resolution No. 19-002 declaring city council meeting dates Exhibit A 2019 City council meeting dates Jan. 7 Regular Meeting July 1 Regular Meeting Jan. 14 Study Session July 8 Study Session Jan. 22 Regular Meeting - Tuesday (Monday - Martin Luther King Jr. Day) July 15 Regular Meeting Jan. 28 Study Session July 22 Study Session Feb. 4 Regular Meeting Aug. 5 Regular Meeting Feb. 11 Study Session Aug. 12 Study Session Feb. 19 Regular Meeting - Tuesday (Monday - President’s Day) Aug. 19 Regular Meeting Feb. 25 Study Session Aug. 26 Study Session Mar. 4 Regular Meeting Sept. 3 Regular Meeting - Tuesday (Monday-Labor Day) Mar. 11 Study Session Sept. 9 Study Session Mar. 18 Regular Meeting Sept. 16 Regular Meeting Mar. 25 Study Session Sept. 23 Study Session Apr. 1 Regular Meeting Oct. 7 Regular Meeting Apr. 8 Study Session Oct. 14 Study Session Apr. 15 Regular Meeting Oct. 21 Regular Meeting Apr. 22 Study Session Oct. 28 Study Session May 6 Regular Meeting Nov. 4 Regular Meeting May 13 Study Session Nov. 12 Study Session – Tuesday (Monday – Veterans Day) May 20 Regular Meeting Nov. 18 Regular Meeting May 28 Study Session – Tuesday (Monday – Memorial Day) Nov. 25 Study Session June 3 No Meeting – Eid al-Fitr Dec. 2 Regular Meeting June 10 Study Session Dec. 9 Study Session June 17 Regular Meeting Dec. 16 Regular Meeting June 24 Study Session Dec. 23 Study Session Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4p Executive summary Title: Cooperative agreement and use of facilities for school district and city programs Recommended action: Motion to approve the Cooperative Agreement and Use of Facilities For School District Programs and City Programs. Policy consideration: Does the city council want to move forward with approval of the joint cooperative agreement for the use of facilities for the school district and city programs? Summary: On January 25, 1971, the city and school district established an agreement to jointly operate a Community Education program. This was one of six pilot programs in Minnesota. As a result of that pilot program, the district and city created a cooperative agreement for the use of each other’s facilities. Lisa Greene, Community Education Director, along with Operations and Recreation staff, have worked together to edit and update the Cooperative Agreement and Use of Facilities between Independent School District 283 and the City of St. Louis Park. This topic has been discussed at recent joint meetings of the city council and school board. The current agreement, which has not been updated or edited for many years, relates to the joint use of facilities. A lot of what was currently in the agreement was outdated and not relevant since it referenced state statues that are no longer valid. The agreement does not mention the amount of money exchanged between the two entities or what that money is used for. This piece was intentionally left out since it does not relate to the joint use of facilities. That discussion between the city council and school board should be separate and can happen as a part of the budget process. The city and school district attorneys have reviewed and approved this agreement. The Community Education Advisory Council (CEAC) and the Park and Recreation Advisory Commission (PRAC) have reviewed and discussed the updated agreement. Financial or budget considerations: There are no financial components to this agreement. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: - Cooperative Agreement and Use of Facilities for School District and City Programs Prepared by: Jason T. West, Recreation Superintendent Reviewed by: Cindy S. Walsh, Operations and Recreation Director Approved by: Tom Harmening, City Manager 198844v5 AGREEMENT Between City of St. Louis Park And Independent School District No 283 Relating To The Cooperative Agreement and Use of Facilities For School District Programs and City Programs AGREEMENT, made this ____day of __________, 2019 between the City of St. Louis Park, a Minnesota municipal corporation (hereinafter “City”), and Independent School District No. 283, Hennepin County, Minnesota, a Minnesota municipal corporation (hereinafter “School District”), superseding all existing joint powers agreements relating to the use of facilities for School District Programs and City Programs and the agreements regarding the Cooperative Agreement with Community Education. The City and the School District are referred to herein individually as a Party and collectively as the “Parties.” WHEREAS, the School District is authorized to provide Community Education programs exclusively pursuant to Minn. Stat. § 124D.19, Subd. 1, and the City to provide Park and Recreation programs pursuant to Minn. Stat. S'471.16. WHEREAS, Minnesota Statutes ' 471.59 authorizes governmental units to jointly exercise any power common to the contracting parties. WHEREAS, the City and the School District believe that providing adequate facilities for Park and Recreation and Community Education programs is important for the citizens of St. Louis Park and they wish to ensure that adequate facilities will be available for these related purposes. WHEREAS, the School District shall be responsible for Community Education Programs and the City shall be responsible for the Park and Recreation Programs. WHEREAS, the long history of coordination and collaboration between the School District and the City in successfully implementing these and related programs should be continued pursuant to the terms of this “Agreement”. NOW, THEREFORE, the City and the School District hereby agree as follows: 1. Joint Participation. A. The School shall create a Community Education Advisory Council (“Advisory Council”) to provide recommendations regarding the Community Education Program and a proposed budget for both operating and/or capital expenditures. Up to 2 City Council members or their designees may be members of the Advisory Council. Each Party shall determine their amount of financial contribution to perform the functions of the Community Education Program. All personnel hired to establish and operate the Community Education Program shall be paid and supervised by the School District. City council meeting of June 17, 2019 (Item No. 4p) Title: Cooperative agreement and use of facilities for school district and city programs Page 2 198844v5 B. The City shall create a Parks and Recreation Advisory Commission (“Park Commission”). Up to 2 School Board members or their designees may be members of the Park Commission. Each Party shall determine their amount of financial contribution to perform the functions of the Park Commission. 2.Facilities Currently Utilized. A.The facilities listed in Subparts B and C are hereby made available by the City and the School District for use by Community Education and Park and Recreation programs, subject to conditions outlined in Section 2, infra. Utilization shall include educational, extra-curricular, and City activities as well. B.The School District hereby makes available the following building and grounds for School District and City use: (I)St. Louis Park High School (II)St. Louis Park Middle School (III)Aquila Elementary School (IV)Park Spanish Immersion Elementary School (V)Peter Hobart Elementary School (VI)Susan Lindgren Elementary School (VII)Central Community Center (VIII)Lenox Community Center C.The City hereby makes available the following buildings and grounds for City and School District use: (I)Wolfe Park and Recreation Center (II)Lamplighter Park (III)Parkview Park (IV)Freedom Park/(Paul Frank Field) (V)Louisiana Oaks Park (VI)Walker Park (VII)Dakota Park (VIII)Carlson Park (IX)Nelson Park (X)Aquila Park (XI)Northside Park (XII)Westwood Hills Nature Center (XIII)Rec Center (XIV)ROC 3.Amending the facilities made available to use by Community Education and Park and Recreation programs. A.The City or School District, in its sole discretion, may delete facilities made available in Section 2, in the event the facility is sold or undergoes some change in ownership or primary use, or is no longer used by either entity. B.The City and the School District reserve the right to temporarily suspend use in any facility which is undergoing renovation or substantial change, provided that City council meeting of June 17, 2019 (Item No. 4p) Title: Cooperative agreement and use of facilities for school district and city programs Page 3 198844v5 the entity which owns the facilities gives six (6) months’ notice to the other party to this Agreement unless the parties agree upon shorter notice. C.Facilities not listed may be made available, through a supplemental listing of a new facility, by letter between the School Board and the City Council provided that both entities agree. 4.Priority Use of Facilities Covered by this Agreement. A.The City and the School District shall have priority use of all facilities covered by this Agreement over any other user. B.The School District shall have priority use of all of its facilities covered by this Agreement over any other user, including the City, with respect to regular school curriculum and related activities. C.The City shall have priority use of all of its facilities covered by this Agreement over any other user, including the School District, with respect to regular City related activities or programs. D.By September 1 of each calendar year, the School District and the City shall exchange a list of all upcoming uses which each foresees for Community Education and Park and Recreation programs. E.Any objections or conflicts shall be resolved by letter exchanged by the City and the School District by September 15 of each calendar year. F.If a mutual agreement may not be reached regarding the use of any facility, priority should be apportioned by considering: (I)The Nature of the use proposed (II)The period of use including the time of year and the number of years the facility has been utilized. (III)Any previous agreements between the City and the School District regarding use of the facility or the importance of the program being offered. 5. Facility Maintenance and Costs. A.Neither the School District nor the City shall demand any type of payment or remuneration for the use of facilities covered by this Agreement, except for reimbursement of personnel costs for those limited instances in which a facility is used solely for a Community Education or Park and Recreation program and the facility personnel costs would not otherwise be incurred. B.The City and the School District are responsible for the costs of operating and maintaining only those facilities which each respectively owns. C.Notwithstanding subparts A and B of this part 5, the City may charge the School District the market rate for use of the Westwood Hills Nature Center, Rec Center and the ROC and the School District agrees to pay those charges. 6. Liability. A.To the fullest extent permitted by law, the Agreement is intended to be and shall be construed as “cooperative activity” and it is the intent of the parties that they City council meeting of June 17, 2019 (Item No. 4p) Title: Cooperative agreement and use of facilities for school district and city programs Page 4 198844v5 shall be deemed a “single government unit” for the purposes of liability, all as set forth in Minnesota Statutes, Section 471.59, subd. 1a(a); provided further that for purposes of that statute, each party to this Agreement expressly declines responsibility for the acts or omissions of the other party. In addition to the foregoing, nothing herein shall be construed to waive or limit any immunity from, or limitation on, liability available to either party, whether set forth in Minnesota Statutes, Chapter 466 or otherwise. B.To the extent that tort damages or other related costs or fees become payable against a third party as a result of this Agreement or the activities carried out hereunder, the parties to this Agreement shall each pay an amount equal to their respective percentage of liability. Notwithstanding the foregoing, this Agreement is solely for the benefit of the parties hereto and no other person shall have any right, claim, or interest in it. C.Each party shall obtain and maintain adequate General Liability Insurance for their use of facilities owned by the other party. D.Neither party shall be responsible for injuries or death of the other party’s personnel. Each party will maintain workers’ compensation coverage to the extent required by law, on its personnel. E.Each party agrees to promptly notify the other party if it knows or becomes aware of any facts or allegations reasonably giving rise to actual or potential liability, claims, causes of action, judgments, damages, losses, costs or expenses, including attorneys’ fees, involving or reasonably likely to involve the other party and relating to acts or omissions arising from this Agreement. 7.Nondiscrimination. The City and the School District accord full admission to, access to, and full utilization of the facilities covered by this Agreement to all residents of St. Louis Park and no priority usage of facilities under this Agreement shall be made on the basis of race, color, creed, religion, sex, or national origin. 8.Assignment. Neither party shall assign, delegate or otherwise transfer this Agreement or any of its rights or obligations hereunder without the prior written consent of the other. 9.Severability. Every provision of this Agreement shall be construed, to the extent possible, so as to be valid and enforceable. If any provision of this Agreement so construed is held by a court of competent jurisdiction to be invalid, illegal, or otherwise unenforceable, such provision shall be deemed severed from this Agreement, and all other provisions shall remain in full force and effect. 10.Amendments. Any modification or amendment to this agreement shall require a written agreement signed by the both Parties. City council meeting of June 17, 2019 (Item No. 4p) Title: Cooperative agreement and use of facilities for school district and city programs Page 5 198844v5 11.Entire Agreement. This Agreement supersedes any prior or contemporaneous representations or agreements, whether written or oral, between the Parties and contains the entire agreement. 12.Termination. This Agreement shall remain in effect and shall govern the usage of facilities for Community Education and Park and Recreation programs unless and until either party notifies the other of its intent to terminate this Agreement upon six (6) months’ notice and writing of its Intention to terminate given to the other party by March 15 of the calendar year. This agreement supersedes and voids agreements between the City and the School District dated February 25, 1991. 13.Effective Date. The effective date of this agreement shall be _______________, 2019. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers pursuant to the authority granted by resolutions adopted by the City Council of St. Louis Park and the School Board of Independent School District No. 283. INDEPENDENT SCHOOL DISTRICT CITY OF ST. LOUIS PARK NO. 283, Hennepin County, Minnesota By ________________________________ By ____________________________________ Nancy Gores, Chair Jake Spano, Mayor By ________________________________ By ____________________________________ Jim Beneke, Clerk Thomas K. Harmening, City Manager By ________________________________ Astein Oseo, Superintendent ATTEST: _______________________________________ Melissa Kennedy, City Clerk City council meeting of June 17, 2019 (Item No. 4p) Title: Cooperative agreement and use of facilities for school district and city programs Page 6 198844v5 RESOLUTION NO. 18-__ RESOLUTION AUTHORIZING AGREEMENT BETWEEN THE CITY OF ST. LOUIS PARK AND SCHOOL DISTRICT #283 RELATING TO USE OF FACILITIES FOR COMMUNITY EDUCATION AND PARKS AND RECREATION PROGRAMS WHEREAS, cooperative agreements between School District #283 and the City of St. Louis Park have been in effect for over 50 years; and WHEREAS, State Law and circumstances have changed since Joint Powers Agreements were initially adopted in 1956 and 1971 prompting review of the respective agreements; and WHEREAS, such a review presents an opportunity to update policies and practices as relates to the elected officials and advisory groups responsible for the programs; and WHEREAS, such review will enhance the community-wide support for the programs pursuant to State Law and reinvigorate the involvement of the community and elected officials in these programs whose constituents are so important to the health of the community, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park that the Mayor and City Manager be directed to execute an Agreement between the City of St. Louis Park and Independent School District No. 283 relating to the use of facilities for Community Education programs and Park and Recreation programs. _______________________________________ Mayor Reviewed for Administration Thomas K. Harmening, City Manager Adopted by the City Council February 25, 1991 Jake Spano, Mayor Attest: Melissa Kennedy City Clerk Approved as to form and execution Soren M. Mattick, City Attorney City council meeting of June 17, 2019 (Item No. 4p) Title: Cooperative agreement and use of facilities for school district and city programs Page 7 Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4q Executive summary Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Recommended action: Motion to adopt Resolution approving a mobility sharing license for Skinny Labs Inc., d/b/a Spin. Policy consideration: Does the city council want to move forward with the implementation of a mobility sharing pilot program within the city? Summary: On June 10, 2019, staff provided council with a study session report recommending the approval of a mobility sharing license for Spin to operate scooters in St. Louis Park. City staff, the city attorney, and Spin have all reviewed and agreed upon the attached license agreement language. The license would be valid until March 30, 2020. The date was chosen to coincide with the schedules of other Twin Cities mobility sharing programs including Minneapolis. Further information regarding the city’s mobility sharing pilot program will be found on the city’s website at https://www.stlouispark.org/how-do-i/learn-about/mobility-sharing. If approved, city staff and Spin will begin to prepare for the beginning of the pilot program. City staff anticipate that the scooters will be ready to use in St. Louis Park in late July or early August. Financial or budget considerations: The vendor will pay a license fee for each device deployed to help to cover staff time and infrastructure costs. Any other costs related to this policy are negligible and would come from the general operating budget. Strategic priority consideration: •St. Louis Park is committed to continue to lead in environmental stewardship. •St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely, and reliably. Supporting documents: Discussion Resolution License agreement Mobility sharing census tract map Study Session report March 25, 2019 (page 71 – 94) Study Session report June 10, 2019 (page 30 – 32) Prepared by: Ben Manibog, Transportation Engineer Reviewed by: Debra Heiser, Engineering Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4q) Page 2 Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Discussion Background: On June 10, 2019, staff provided council with a study session report to inform council on staff’s progress regarding the implementation of a mobility sharing pilot program. The report, which is attached, includes the following: • Request for qualifications • Recommendation for approval of Spin for a mobility sharing permit • Remaining mobility sharing permits No bike sharing companies responded to our request for qualifications. However, there are two additional licenses available. Should additional scooter, bicycle, or car share vendors show interest in deploying in the city, staff will update the council. Spin: According to their submittal packet, Spin is “a personal mobility company that seeks to help cities…reduce their dependence on cars by offering an affordable, accessible, and sustainable form of personal transportation.” Spin, also known as Skinny Labs Inc., are owned by Ford Motor Company. Spin operates in cities across the country from Jefferson City, MO to San Diego, CA, to South Miami, FL. In the Twin Cities, Spin currently operates in Minneapolis and St. Paul. We also understand that Spin is preparing to launch in the near future in Golden Valley. License agreement: The intended license agreement, which is attached, has been reviewed by city staff, the city attorney, and Spin. The agreement lays out the structure of the pilot program which is also explained in the study session staff report from March 25, 2019 (also attached). A maximum of 250 devices, split among all licensees, will be authorized by the city. The city will evaluate the performance of the program during its length and can increase or decrease the maximum number of devices allowed. At least 40% of the devices are required to be staged in neighborhoods in the center of the city (census tract map is attached). The neighborhoods in this area are Aquila, Oak Hill, South Oak Hill, Texa Tonka, Bronx Park, Lenox, Sorensen, Birchwood, Triangle, Fern Hill, and Lake Forest. The other 60% are allowed to be staged anywhere in the city. Website: Further information regarding the city’s mobility sharing pilot program can be found on the city’s website for mobility sharing at https://www.stlouispark.org/how-do-i/learn- about/mobility-sharing. Next steps: If approved, city staff and Spin will begin to prepare for the beginning of the pilot program. City staff anticipate that the scooters will be ready to use in St. Louis Park in late July or early August. City council meeting of June 17, 2019 (Item No. 4q) Page 3 Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Resolution No. 19-___ Resolution approving a mobility sharing license for Skinny Labs Inc., d/b/a Spin Whereas, St. Louis Park Code of Ordinances 2557-19 provides for mobility sharing licensing, and Whereas, the goal of the shared mobility pilot program is to decrease the use of personal vehicles, increase access to public transit, increase the use of active transportation, ensure safe and equitable access to emerging transportation technologies, and ensure alignment with the work of the city’s strategic priorities, and Whereas, St. Louis Park is committed to continue to lead in environmental stewardship, and Whereas, St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely, and reliably, and, Whereas, the city’s shared mobility workgroup reviewed the RFQ submittal provided by Skinny Labs Inc., d/b/a/ Spin and recommend their approval for a mobility sharing license Now therefore be it resolved by the City of St. Louis Park City Council that Skinny Labs Inc., d/b/a Spin is hereby approved for a mobility sharing license valid through March 30, 2020. Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk LICENSE AGREEMENT FOR PILOT MOBILITY SHARING OPERATIONS THIS AGREEMENT, made as of the ___ day of ___, 2019 by and between the City of St. Louis Park, a Minnesota municipal corporation (herein called “City”) and [NAME OF COMPANY], a [STATE OF INCORPORATION] corporation (herein called “Licensee”) (collectively, “Parties”). WHEREAS, the City recently adopted an ordinance in St. Louis Park’s Code of Ordinances, Chapter 30, Article VII, to facilitate and regulate mobility sharing operations from the City’s right of way (“Ordinance”); and WHEREAS, Licensee owns a fleet of commercial, mobility sharing devices intended or equipped for shared use by paying consumers from right of way locations in the City of St. Louis Park (“Licensee’s Fleet” or “Licensee’s Devices”); and WHEREAS, Licensee’s Devices are bicycles or low power vehicles as defined by the Ordinance; and WHEREAS, Licensee’s operation requires use of City right of way to facilitate the stationing and parking of Licensee’s Fleet within the City of St. Louis Park, and it is considered a mobility sharing operation under the Ordinance (“Licensee’s Operation”); and WHEREAS, Licensee has submitted a written application to the City for a license to implement Licensee’s Operation under the provisions of the Ordinance; WHEREAS, Licensee’s license application is incorporated and attached hereto as Exhibit A (“Licensee’s Application”); and WHEREAS, the City controls certain public rights of way and recreational trails located within its municipal boundaries (“City Right of Way”); and WHEREAS, the City Right of Way contemplated by this Agreement does not cover areas that are not controlled by the City, including but not limited to, all streets, roads, trails, or parkways owned by Three Rivers Park District, the Minneapolis Park and Recreation Board, and/or private property owners; and WHEREAS, the City believes that allowing mobility sharing operations to exist in the City Right of Way is likely to promote the public’s health, safety, and welfare by decreasing the use of personal vehicles, increase access to public transit, and increase the use of active transportation, thereby reducing traffic volumes, noise, and air pollution; and WHEREAS, the City believes mobility sharing has the potential to help achieve the City’s strategic priorities of committing to be a leader in racial equity and inclusion in order to create a more just and inclusive community for all, committing to continue to lead in environmental stewardship, committing to providing a variety of options for people to make their way around the city comfortably, safely, and reliably, and committing to creating opportunities to build social capital through community engagement; and WHEREAS, the City must balance the benefits of mobility sharing operations with its duty to keep streets and sidewalks safe, orderly, and free of unregulated obstructions and encumbrances; and City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 4 WHEREAS, after observing mobility sharing in 2018, the City has authorized a pilot period in 2019 during which time the City will examine mobility sharing operations, and temporarily allow such use of the City Right of Way by approved licensees, coinciding with the anticipated term of this Agreement, (“Pilot Program”); and WHEREAS, the Pilot Program is intended to understand the impact of mobility sharing operations on City Right of Way, and to provide guidance for the development of future policy; and WHEREAS, this Agreement is intended to outline the terms and conditions under which Licensee will be allowed to utilize the City Right of Way during the Pilot Program. NOW, THEREFORE, for and in consideration of the following terms and conditions, the parties hereto agree as follows: ARTICLE I. USE OF CITY RIGHT OF WAY 1. Authorization. In accordance with St. Louis Park Code of Ordinances 2557-19, the City hereby grants a revocable, non-exclusive license to Licensee to implement Licensee’s Operation within the City Right of Way during the term of this Agreement, subject to all of the terms and conditions set forth herein. This authorization is not a lease or an easement, and shall not be construed to transfer any real property interest in the public right of way or other City property. 2. Additional Uses. Licensee expressly understands and agrees that this Agreement does not grant Licensee or its contractors the ability to exclude, or prohibit others from using, the City Right of Way. Licensee further understands and agrees that the City holds its interest in the City Right of Way in trust for the public, and that the City’s uses, needs, and obligations shall at all times supersede Licensee’s privileges under this Agreement. ARTICLE II. TERM The term of this Agreement shall be through March 30, 2020, unless terminated earlier as provided herein. The License set forth in this Agreement may be revoked or terminated at any time, for any reason, in the sole discretion of the City upon twenty-four (24) hours written notice by the City to Licensee. In the event of early termination or revocation, Licensee will be granted a reasonable period of time in which to collect and remove Licensee’s Devices, and any other facilities owned by Licensee, and to restore the City Right of Way in accordance with Article V, Section 4. The provisions of Article V, Section 9 herein shall survive revocation or termination of this Agreement. ARTICLE III. TERMS AND CONDITIONS FOR USE OF CITY RIGHT OF WAY Licensee agrees that it will implement Licensee’s Operation in accordance with the following terms and conditions: 1. Device fleet size and type City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 5 a.A maximum total of 250 devices will be authorized by the City under the Ordinance among all licensees during the first two (2) months of the Pilot Program. If more than one license is issued by the City during the Pilot Program period, then each permitted licensee shall be limited to an equal number of fleet devices to achieve the maximum total number allowed. b.During June 2019 and August 2019, the City will evaluate the Pilot Program, including the average number of rides per device, per day, together with the compliance with distribution requirements listed below. If the monthly average of rides per device, per day exceeds three (3) among all licensees, and if warranted by public good considerations, then the maximum number of devices allowed under the Ordinance may be increased by the City by a total of 65 devices among and between all Licensees at each of the evaluation points. If multiple licensees are operating under the Ordinance at such time, then each licensee shall be limited to an equal number of fleet devices to achieve the maximum allowed. c.Notwithstanding Sections 1 (a), (b), and (c) herein, the City reserves the right to unilaterally limit or reduce the maximum number of devices in Licensee’s Fleet allowed under the Ordinance and this Agreement. If such reduction is related to noncompliance issues governed by this Agreement, then an equivalent reduction may not be applied to all Pilot Program Licensees. d.Licensee must obtain and receive written approval from the City at least two weeks prior to the introduction of any new model of device to be included in Licensee’s Fleet. e.The City will notify Licensee of any increases or decreases applicable to Licensee’s Fleet under this section by sending written or emailed notice under Article V, Section 17 herein. Such increases and/or decreases shall not require an amendment to this Agreement. 2.Licensee’s Fleet equipment, maintenance, and safety requirements a.Licensee’s Fleet shall be equipped with equipment meeting all specifications, including but not limited to brakes, reflectors, and lighting set forth in Minnesota State Statute 169.225, and/or 169.222. b.Licensee’s Fleet must be certified as safe to operate under any applicable standard by Underwriters Laboratories, or an equivalent safety rating. c.Licensee will schedule and attend an on-site meeting with City staff, prior to launching Licensee’s Fleet, to provide a demonstration of equipment and proper use of the Licensee’s Devices. The City may require this meeting to be held in coordination with other Pilot Program licensees. d.All devices in Licensee’s Fleet shall be equipped with both: a) a locking mechanism to prevent theft; and b) an operable, on-board mechanism to provide real-time location when a device is parked. e.Licensee will remain responsible for the maintenance of each device in Licensee’s Fleet, including but not limited to technology mechanisms and locking systems. f.Licensee’s Fleet shall have a unique identifier clearly displayed on each device in the form of numbers and/or letters for the purposes of conveying or documenting parking or safety complaints, and for auditing the quantity and type of devices in the Licensee’s Fleet. g.Each device in the Licensee’s Fleet must visibly display Licensee’s logo or business name on both sides of the device, together with a customer service phone number staffed from at least 7am-10pm on days Licensee’s Fleet is in service on City Right of Way. Licensee’s customer City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 6 service line shall accept voicemail at all other times to report parking or operational complaints, and safety or maintenance concerns. h.Each device in Licensee’s Fleet must visibly display the following instructions, or a substantively similar version thereof: i.“No Sidewalk Riding” (minimum 48-point font) located on the platform of every Fleet Device ii.“Wear A Helmet” iii.“Yield to Pedestrians” iv. “Don’t Ride with a Passenger” i.Licensee shall proactively remove any and all inoperable or unsafe devices from Licensee’s Fleet within twelve (12) hours of the initial onset of such condition. j.Licensee agrees that it will maintain a multilingual website and mobile application which shall be available to the general public twenty-four (24) hours per day, seven (7) days per week, including certain languages as specified by the City. k.Licensee warrants that it complies with Minnesota and federal disabilities laws and regulations, including, but not limited to the Americans with Disabilities Act of 1990, 42 U.S.C. 12101, et seq., as amended. Licensee also warrants that the products or services it will provide under this Agreement comply with the accessibility requirements of Section 508 of the United States Workforce Rehabilitation Act of 1973, as amended (29 U.S.C. 794d), and its implementing regulations set forth at Title 36, Code of Federal Regulations, Part 1194. Licensee agrees to promptly respond to and resolve any complaint regarding accessibility of its products or services. Failure to comply with these requirements shall constitute a material breach of this Agreement. l.Licensee agrees that it will proactively provide all customers of Licensee’s Fleet with a summary of instructions and laws regarding mobility sharing riding, parking, and operations including those set forth in City of St. Louis Park Ordinance 2557-19, Minnesota State Statute 169.225, Minnesota State Statute 169.222, and any other law or regulatory provision applicable to the operation and/or parking of mobility sharing devices. m.Licensee agrees that it will either require or recommend the use of helmets to all customers of Licensee’s Fleet. n.Licensee will keep and maintain a comprehensive and complete record of all Fleet Device collision reports received by Licensee or its contractor(s) during the term of this Agreement. The record shall include date/time, location, and nature of the collision. A copy of such record shall be provided to the City within two (2) business days of a written or emailed request. o.If the city determines, in its sole discretion, that any of Licensee’s consumers or customers have failed to comply with applicable laws governing the safe operation and/or parking of Licensee’s Devices, including but not limited to, breach of any current or future laws governing driver’s license requirements, the use of helmets, operation on sidewalks, and/or parking requirements, or have otherwise demonstrated a threat to public health, safety, or welfare, such determination shall be grounds for suspension or revocation of this Agreement. 3. Licensee’s Fleet distribution. Licensee shall comply with the following daily distribution requirements: a.Licensee shall distribute at least 40% of Licensee’s Fleet, at least once per day, to the areas shown on Appendix B (“Central neighborhoods”). b.The remaining 60% of Licensee’s Fleet may be distributed as proposed in Appendix A. City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 7 c.Distribution requirements will be evaluated by the City monthly, and may be increased or decreased by the City based on any of the criteria set forth in this Agreement. d.Notwithstanding any other provision to the contrary in this Article III, Section 3, the City may require Licensee to rebalance the distribution of Licensee’s Fleet in the specified areas of the City if deemed by the City to be too dense or too sparse, or if doing so will help promote equitable access to and from traditionally underserved areas within the City. Licensee will comply with all such requests within twenty-four (24) hours of receiving written notice from the City. e.All of Licensee’s Devices must be disabled from public use daily, no later than 10 p.m.. Licensee shall be responsible for collecting and removing all of Licensee’s Devices from City Right of Way within two (2) hours of such disabling. Licensee’s Devices may be redistributed or enabled for public use on City Right of Way no earlier than 5 a.m. of the following day. 4.Fleet parking and riding. Licensee and Licensee’s customers shall comply with the following parking and riding rules and restrictions in the City Right of Way: a.No person may operate a Device upon a sidewalk, except when necessary to enter or leave adjacent property. b.No person may operate a Device that is carrying any person other than the operator. c.Devices must be parked upright and stabilized with a kickstand when not in use. d.Sidewalk parking shall be limited to allowed areas within the furnishing zone, outside the pedestrian path of travel. i.The furnishing zone is the section of the sidewalk between the curb and the sidewalk clear zone in which street furnishings and amenities, such as lighting, benches, newspaper kiosks, utility poles, tree pits, and bicycle parking are provided. e.Devices must not be parked and/or ridden in any location or manner that will impede normal and reasonable pedestrian traffic and/or access to: i.Pedestrian ramps ii.Building/property entrances iii.Driveways iv. Loading zones v.Disability parking and transfer zones vi. Transit stops vii. Crosswalks viii. Parklets ix.Street/sidewalk cafes x.Other street furnishings (benches, parking meters, etc.) xi.Underground utility, sewer, or water facilities xii.Sidewalk clear zones 1.The sidewalk clear zone is the accessible, primary pedestrian thoroughfare that runs parallel to the street. The clear zone ensures that pedestrians have a safe, obstruction-free thoroughfare. f.Licensee will be solely responsible for informing its customers as to parking and riding a Device properly and in compliance with state and local laws. g.Licensee will undertake proactive, reasonable measures to prevent and deter improper parking or dumping of Devices on private property or other public property not owned or controlled by the City. City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 8 5. Device parking and riding complaints and enforcement a. Licensee must provide the City with an up-to-date, direct, local contact for Licensee’s Operation, as well as an emergency, after-hours contact. b. During the Pilot Program term, Device parking and riding complaints received by the City shall be referred to Licensee, and Licensee or Licensee’s authorized representative may be provided a limited opportunity to address/respond by re-parking or relocating its noncompliant Devices. i. This provision will be exercised only in instances where, in the City’s discretion, the public’s safety and welfare will not be unduly compromised due to additional passage of time. c. Licensee alone will be fully responsible for re-parking or relocating Devices where a complaint has been received by the City or Licensee, or where Devices are otherwise found to be in violation of parking rules stated herein. d. The City will not be responsible under this License Agreement for monitoring Device parking or dumping on private property, or other public property not owned or controlled by the City, but the City may impound illegally parked Devices in accordance with City ordinances. i. When doing so will not unduly burden the complaining third party, the City will refer such complaints to Licensee, and Licensee or Licensee’s authorized representative will be provided a limited opportunity to remedy the complaint without further City involvement. e. Licensee will be solely responsible to third parties for addressing unauthorized Devices dumped or left unattended on private property, or on other public property not owned or controlled by the City. f. Licensee will act swiftly and exercise due diligence in responding to complaints of unauthorized Devices leaning against, blocking, dumped, or left unattended on private property, or on other public property not owned or controlled by the City. g. The City reserves the right to mandate and apply geofencing specifications to Licensee’s Fleet to prohibit parking/locking Devices in specified areas, and/or to direct customers to specified designated parking areas. Licensee shall comply with any and all geofencing requirements within five (5) business days of a written or emailed request made by the City. The cost of installing and maintaining geofencing equipment or facilities shall be borne by the Licensee. h. If the City incurs any costs or damages arising out of Device parking and riding complaints, violations, or other related costs that are not otherwise recovered with the City’s collection of an impoundment release charge, Licensee shall reimburse the City for such costs within thirty (30) days of receiving written or emailed notice. i. The City may impound any Device parked in the same location without movement for more than three (3) consecutive days. j. A per occurrence impoundment fee will be applied to all Devices owned or controlled by Licensee as follows: i. Initial impoundment fee of $56 per device ii. If not paid and retrieved by Licensee within twenty four (24) hours of impoundment, an $18 storage fee per device, per day shall be added to the initial impoundment fee. k. The City may limit the number of Devices allowed under this Agreement if it determines that the number of parking and riding violations, reported crashes, third party complaints, City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 9 and/or Licensee’s response to such violations or complaints, are deemed by the City to be unacceptable or detrimental to public safety, or otherwise creating or contributing to a nuisance condition. l. Licensee expressly understands that the City may impound any and all Devices found by the City to be in violation of applicable laws and/or the terms of this License Agreement. Seizure and impoundment of Devices may be exercised by the City with or without prior notice to Licensee. m. Any failure by the City to act on the provisions of this section shall not relieve Licensee of any other duty or penalty at equity or law. 6. Data privacy and protection a. Licensee’s Operation shall employ an electronic payment system that is compliant with the Payment Card Industry Data Security Standards (PCI DSS). b. Licensee has submitted a privacy policy to the City with and as part of Licensee’s Application (“Licensee’s Privacy Policy”). Licensee’s Privacy Policy shall continue to expressly limit the collection, storage, or usage of all personally identifiable information. c. Licensee shall not institute retroactive changes to customer conditions, terms of use, or Privacy Policy. d. Licensee’s Privacy Policy must operate to safeguard Licensee’s customers’ personal, financial, and travel information and usage including, but not limited to, trip origination and destination data. Licensee agrees to make all policies, procedures, and practices regarding Licensee’s data security practices available to the City, upon request. e. The City reserves the right to hire or commission a third party to perform a security audit mid-way through the term of this Agreement, or at any other time the City determines that an audit is warranted. f. Licensee must provide its customers with an opportunity to expressly assent to Licensee’s Privacy Policy, terms of service, and/or user agreements when renting or transacting for use of any or all of Licensee’s Devices. Licensee agrees to provide its customers with the ability or option to decline the sharing of any data that is not otherwise required to complete the payment transaction. Customer rights with regard to these requirements and options shall be clearly stated and easily accessed by the customer during each transaction. Licensee will further indicate to its customers that it will share non-personally identifiable data with the City (or government) for legitimate interests as allowed by law. g. Licensee agrees that it will not collect or sort personal or individual data related to race, gender, religion, national origin, age, or sexual orientation, except for survey data collected on an opt-in basis, for the limited use of certain public purposes expressly set forth by the City. Licensee may not deny service to any customer on the basis of refusal to provide any such survey information. h. Licensee agrees that it will not attempt to access or collect any location-based data via customers’ mobile phone or any other electronic mobile device, without first obtaining each affected customer’s explicit permission. i. All current or future customer data sharing agreements between Licensee and any third party must be disclosed and provided to the City. Licensee must further notify the City in advance of any prospective partnership, acquisition, or other data sharing agreement. Licensee may not engage in or facilitate any inter-app operability or other form of private partnership that includes data acquisition or other data sharing model with any entity if the entity does not meet the standards set forth herein. City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 10 j.Customers’ personally identifiable information collected by Licensee may not be transmitted to, processed, or stored at a destination outside of the United States. 7. Data collection/Sharing a.The City and Licensee each understand and agree that the City is not requesting or requiring the collection or creation of any new data with this Agreement, unless expressly provided and stated herein. Any new data collected, created, or stored by Licensee shall be considered Licensee’s private data, and not government data, unless a provision of this Agreement expressly requires its collection or creation, and/or the City requests and receives such data from Licensee. b.Licensee understands and agrees that the City may rely upon a third-party researcher or consultant to evaluate various aspects of the Pilot Program. Upon receiving a request from the City, Licensee will share all data relevant to evaluating or enforcing the terms set forth in this Agreement with the City and any such third-party researcher. Such third- party researcher shall be a public research, academic, or non-profit entity. If the third- party researcher is not a public research, academic or a non-profit entity, the City must have written permission from Licensee to facilitate work with the third-party researcher. c.Licensee agrees to administer two customer surveys during the Pilot Program term, including survey questions submitted by the City. The surveys must address travel behavior and basic socioeconomic indicators to aid the City in evaluating whether and how Licensee’s Operation supports City goals for transportation. The surveys shall not include, and Licensee shall not collect, any personally identifiable data related to or in furtherance of this provision. d.Licensee shall provide an API that meets the requirements of the Mobility Data Specification (“MDS”), as published online at http://github.com/CityOfLosAngeles/mobility-data-specification, or similar data specification. Licensee may not change the API URL without notifying at least thirty (30) days in advance of change. Licensee and the City shall use the “provider” standard of MDS or similar data specification. The City shall not use the “agency” standard of MDS or similar data specification without the written permission of the Licensee. The Licensee shall not use the “agency” standard of MDS or similar data specification without the written permission of the City. e.Licensee shall provide a publicly accessible API that meets the requirements of the General Bikeshare Feed Specification (https://github.com/NABSA/gbfs). Licensee may not change the API URL without notifying at least thirty (30) days in advance of change. Licensee is required to make the API endpoint available for public consumption. f.Licensee shall keep a record of maintenance activities, including but not limited to device identification number and maintenance performed. Licensee will provide a complete copy of the same to the City upon request. g.Licensee shall deliver to the City, upon request, all specified real-time and archival information for each device in its fleet (The purpose of this requirement is to ensure the City can successfully manage the Pilot Program and execute related planning efforts in support of strategic goals and future programs). Information covered by this provision includes real-time location, event, and status information gathered by on-board GPS tools, data for each trip record, historic/archival data, and key system information. All requested data will be shared via the documented MDS, or similar data specification, and GBFS APIs. Except as otherwise provided in this Agreement, Licensee will not be asked to City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 11 share any personally identifiable information with the City. At a minimum, Licensee will supply the City with the following upon request: i.Daily drop-off locations or aggregation sites/zones ii.Real-time location, event, and status information iii.Trip-level details including start/end location/time, duration, and distance traveled iv. Trip-level breadcrumb trails listing all GPS readings for each device This provision is intended to and applies to only such data collected by Licensee pursuant to Licensee’s own initiative. The City is not requiring Licensee to generate or collect any of the above-described data with this Agreement. To the extent that Licensee does generate and/or collect such data, the Parties each understand and agree that the City may seek, and Licensee must then provide, a copy of any such City-requested data. h.Licensee shall create daily, weekly, and monthly reports illustrating the following: number of devices distributed; total number of trips; trips per device per day; number of new users; total number of customers; average miles per trip; and average minutes per trip. The foregoing summaries shall be delivered to City upon request. i.Licensee shall deliver to the City, upon request, a reporting of total vehicle miles traveled resulting from all of Licensee’s employee or contractor operations in support of participation in the Pilot Program. j.Licensee is directly responsible for providing the API key, and all other required information and data covered by this Agreement to the City. Licensee shall not refer the City to another subsidiary or parent company representative for API access. The City will be permitted to publicly utilize Licensee’s API and display real-time data. k.If any data requested by the City and covered by this Agreement is falsified, or the City suspects dishonest reporting, the City reserves the right to either sanction or perform an audit of vehicle availability and/or trip data at any time during the Pilot term. If a third- party audit finds that falsified or dishonest reporting exists, the City reserves the right to suspend or revoke this Agreement, in addition to any other remedy at equity or law. l.Unless otherwise required by law, Licensee agrees that it will not retain any raw trip data related to this Agreement for a period longer than one (1) year after beginning of Pilot Program term. Article IV. Payment terms and conditions Licensee shall receive no compensation from the City under this Agreement. Licensee shall pay the City a per-term charge of $100.00 per deployed Device to offset the City’s costs related to impacted and newly required City infrastructure, as well as implementation and oversight of this License Agreement. All Devices added during the term of the License agreement shall be subject to the same annual charge; the charge shall not apply to replacement Devices. Article V. Representation and general conditions 1.Ownership and condition of Right of Way. This Agreement shall not be construed so as to transfer ownership or control of the City’s Right of Way to Licensee, or to any other party. The City makes no representations or warranties concerning the condition of the City Right of way, or its suitability for use by Licensee, its contractors or customers. City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 12 2.Delegation of police power. This Agreement does not delegate or otherwise transfer the City’s police power to regulate mobility sharing devices, Licensee’s Operation, and/or to enforce City ordinances or other laws, to Licensee, or to any other party. Licensee understands and agrees that ultimate decisions related to City enforcement against third parties and/or public compliance issues, shall remain within the City’s sole discretion. 3.Compliance with laws. Licensee agrees to comply with all applicable Federal, State, and local laws as they may be adopted or amended from time to time. Licensee further acknowledges that its rights hereunder are subject to the lawful exercise of the police power of the City to adopt, amend, and enforce ordinances, resolutions, and policies designed to promote the safety and welfare of the public. 4.Removal upon order. Licensee shall remove at once any or all Devices or other property owned or controlled by Licensee upon being ordered to do so by the City. Licensee shall be responsible for restoring the City Right of Way to its original condition, and the city shall not be liable for any damages resulting to Licensee by reason of such an order. Such removal and restoration of the City Right of Way will be at the sole expense of Licensee. Upon failure of Licensee to remove Devices or other property as ordered within a reasonable time period, the City may perform the removal or work at Licensee’s cost and/or initiate a claim against Licensee. 5.Interest of members of City. Licensee agrees that it has complied with Minnesota Statutes, Section 471.87. No member of the governing body, officer, employee, or agent of the City shall have any interest, financial or otherwise, direct or indirect, in the Agreement. 6.Equal opportunity statement. Licensee agrees to comply with the provisions of all applicable Federal, State, and City of St. Louis Park statutes, ordinances, and regulations pertaining to civil rights and nondiscrimination including, without limitation, Minnesota Statutes, Section 181.59 and Chapter 363A, incorporated herein by reference. 7.Non-discrimination. Licensee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, sex, national origin, affection preference, disability, age, marital status or status with regard to public assistance or as a disabled veteran or veteran of the Vietnam era. Such prohibition against discrimination shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. If required by applicable law, Licensee shall agree to post in conspicuous places, available to employees and applicants for employment, notices setting forth this nondiscrimination clause. In addition, the Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, religion, ancestry, sex, national origin, affectional preference, disability, age, marital status or status with regard to public assistance or status as disabled veteran or veteran of the Vietnam eras, 1991 Gulf and current Afghanistan and Iraq wars, and comply in all other aspects with the requirements of said applicable laws. 8. Insurance. Licensee shall secure and maintain insurance issued by insurance companies acceptable to the City, admitted in Minnesota, and meeting an A.M. Best’s minimum rating of A- and Financial Size Category IX. The insurance specified may be in a policy or policies of insurance, primary or excess. Such insurance shall be in force on the date of execution of the Agreement and shall remain continuously in force for the duration of the Contract. The Licensee and any sub-contractors carrying out work related to this Agreement shall secure and maintain the following insurance: City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 13 a.Workers Compensation insurance that meets the Minnesota statutory obligations with coverage B-Employers Liability limits of at least $100,000 each accident, $500,000 disease - policy limit and $100,000 disease each employee. b.Commercial General Liability insurance with limits of at least $2,000,000 per occurrence; $4,000,000 general annual aggregate; $2,000,000 annual aggregate - products - completed operations. The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage; Personal and Advertising Injury; Blanket Contractual Liability; and Products and Completed Operations Liability. The insurance shall also provide minimum limits of $100,000 each occurrence fire damage, and $10,000 medical expense any one person. The policy shall be on an “occurrence” basis and the City and its officials and employees shall be named an additional insured for ongoing and products/completed operations. c.Commercial Automobile Liability insurance covering all owned, non-owned, and hired automobiles with full automobile coverage including damages, contents, and vandalism and limits with a combined single limit of at least $1,000,000 per accident. d.Computer Security and Privacy Liability for the duration of this agreement providing coverage for, but not limited to, Technology and Internet Errors & Omissions, Security and Privacy Liability, and Media Liability. Insurance will provide coverage against claims that arise from the disclosure of private information from files including but not limited to: 1) Intentional, fraudulent or criminal acts of the Contractor, its agents or employees. 2) Breach of the City’s private data, whether electronic or otherwise. The insurance policy should provide minimum coverage in the amount of $1,000,000 per occurrence and $2,000,000 annual aggregate. If written on a Claims-Made basis, the policy must remain in continuous effect for at least three (3) years after the service is provided or include a three (3) year extended reporting period. Acceptance of the insurance by the City shall not relieve, limit, or decrease the liability of the Licensee. Any policy deductibles or retention shall be the responsibility of the Licensee. Licensee waives its right to subrogation for the above listed coverages. Licensee shall control any special or unusual hazards and be responsible for any damages that result from those hazards. The City does not represent that the insurance requirements are sufficient to protect the Contractor’s interest or provide adequate coverage. Evidence of coverage is to be provided on a current ACORD Form certificate of insurance. A thirty (30) day written notice is required if the policy is canceled, not renewed, or materially changed. Licensee shall require any of its subcontractors, if sub-contracting is allowable under this Agreement, to comply with these provisions, or the Licensee will assume full liability of the subcontractors. 9. Hold harmless. Licensee agrees to defend, indemnify and hold harmless the City, its officers and employees, from any liabilities, claims, damages, costs, judgments, and expenses, including attorney’s fees, resulting directly or indirectly from any intentional or negligent act or omission of Licensee, its employees, its agents, or employees of subcontractors, in the performance of the operation, work, or services provided by or through this License Agreement, or by reason of the failure of the Licensee to fully perform, in any respect, any of its obligations under this License Agreement. 10. Assignment or transfer of interest. Licensee shall not assign any obligation or interest in this Agreement, and shall not transfer any obligation or interest in the same either by assignment or novation without the prior written approval of the City, provided, however, that claims for money due to income in Bankruptcy without such approval. Notice of any such assignment or transfer shall be furnished to the City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 14 city. Except as provided herein, Licensee shall not subcontract any services under this Agreement without prior written approval of the City department contract manager designated herein. 12. Independent contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties . Licensee shall at all times remain an independent contractor with respect to the work and/or services to be performed under this Agreement. Any and all employees of Licensee or other persons engaged in the performance of any work or services required by Contractor under this Agreement shall be considered employees or sub-contractors of the Contractor only and not of the City; and any and all claims that might arise, including Worker’s Compensation claims under the Worker’s Compensation Act of the State of Minnesota or any other state, on behalf of said employees or other persons while so engaged in any of the work or services to be rendered or provided herein, shall be the sole obligation and responsibility of Contractor. 13. Retention of records. Licensee shall retain all records pertinent to this License Agreement for a period of six (6) years. This provision expressly excludes any and all identifiable customer usage or location data. 14. Data practices. Licensee agrees to comply with the Minnesota Government Data Practices Act and all other applicable State and Federal laws relating to data privacy or confidentiality. Licensee must immediately report to the City any requests from third parties for information relating to this License Agreement. The City agrees to promptly respond to inquiries from Licensee concerning data requests. Licensee agrees to hold the City, its officers, and employees harmless from any claims resulting from Licensee’s unlawful disclosure or use of data protected under state and federal laws. 15. Inspection of records. All Licensee records with respect with Licensee’s obligations under this License Agreement shall be made available to the City or its designees, at any time during normal business hours, as often as the City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. 16. Ownership of materials/Intellectual property. All finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports, or other materials furnished by the City in connection with this Agreement shall be the property of the City. The City may use, extend, or enlarge any document produced by the City under this Agreement without the consent, permission of, or further compensation to the Licensee. Each party acknowledges and agrees that each party is the sole and exclusive owner of all right, title, and interest in and to its services, products, software, source and object code, specifications, designs, techniques, concepts, improvements, discoveries, and inventions including all intellectual property rights thereto, including without limitations any modifications, improvements, or derivative works thereof, created prior to, or independently, during the term of this Contract. This Agreement does not affect the ownership of each party’s preexisting, intellectual property. Each party further acknowledges that it acquires no rights under this Agreement to the other party’s preexisting intellectual property, other than any limited right explicitly granted in this Agreement. 17.Contacts. The following are designated as official representatives for each of the Parties, and as points of contact for purposes of delivering or receiving notice, contract management, official requests, and all other communication contemplated under this License Agreement: City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 15 For the City: Contract Manager: Ben Manibog, Transportation Engineer bmanibog@stlouispark.org 5005 Minnetonka Boulevard St. Louis Park, MN 55416 952.924.2669 Or Engineering Director: Deb Heiser 5005 Minnetonka Boulevard St. Louis Park, MN 55416 For Licensee: 18. Entire Agreement. This License Agreement and attachments and other documents named, is the entire agreement between the parties. No modification of this Agreement shall be valid or effective unless made in writing and signed by the parties hereto. 19.Interpretation of Agreement. In interpretation of this Agreement, the language of the Agreement shall prevail, followed by the language of the Licensee’s Application. City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 16 IN TESTIMONY WHEREOF, the said parties have signed and executed this instrument the day and year first above written. For the Licensee: By: . Its: . For the City of St. Louis Park CITY OF ST. LOUIS PARK Approved: By: . Dep. Head Responsible for Monitoring Contract By: . Finance Officer Enterprise Contract Administrator City Purchasing Agent Approved as to form: . City Attorney 3. City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 17 JOPPA AVE SCLUB RDMELROSE AVE S28TH ST W TEXAS AVE SYOSEMITE AVE SDAKOTA AVE S36THSTW 33RD ST WFLAG AVE SSERVICE DR HWY 394 S 29TH ST W 40TH ST W 27TH ST W 25 1/2 ST W 31ST ST W PARK CENTERBLVD32ND ST WHAMPSHIRE AVE S26THSTW ALABAMA AVE SCEDAR LAKERD AQUILALN SLOUISIANA AVE SHIGHWAY 100 SJERSEY AVE SLAKE S T W FRANCE AVE SMONTEREY DRNEVADA AVE SZARTHAN AVE SSALEM AVE STOLEDO AVE SEDGEBR O O K D R WOODDALEAVEDUKE DRHIGHWAY 169FRANKLIN AVE W EXCELSIOR BLVD INTER S T A T E 3 9 4 OXFORD S T RAMP16TH ST WFORD R D RIDGE DRVIRGINIA CIR N MINNETONKA BLVD HIGHWAY 7 WAYZATA BLV D *1225* *1226* *223.02* *224* *227* *228.01* *228.02* 0 0.5 10.25 Miles ´ Mobility sharing census tract map Legend Municipal boundaries *Census tract* City council meeting of June 17, 2019 (Item No. 4q) Title: Approve mobility sharing license for Skinny Labs Inc., d/b/a Spin Page 18 Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4r Executive summary Title: Accept donation from Mackenzie Ann Kerska Recommended action: Motion to adopt a Resolution approving acceptance of a donated Vision Fitness Elliptical machine from Mackenzie Ann Kerska for the police department’s fitness facility. Policy consideration: Does the St. Louis Park City Council wish to accept the donation with restrictions on its use? Summary: State statute requires city council’s acceptance of donations. This requirement is necessary in order to make sure the city council has knowledge of any restrictions placed on the use of each donation prior to it being expended. Ms. Kerska became aware of our department’s efforts to establish a fitness facility at the police department. Ms. Kerska would like to donate a lightly used Vision Fitness Elliptical machine valued at $500 for the fitness facility. The city attorney has reviewed this matter. His opinion is that state law permits the donation of fitness equipment dedicated to the police department’s fitness facility. It is treated as a gift to the city and there needs to be a resolution adopted by the city council determining that attendance at this event serves a public purpose and accepting the gift. Financial or budget considerations: None Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Mike Harcey, Police Chief Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 4r) Page 2 Title: Accept donation from Mackenzie Ann Kerska Resolution No. 19-____ Accept monetary donation from Mackenzie Ann Kerska to the St. Louis Park Police Department Whereas, The City of St. Louis Park is required by State statute to authorize acceptance of any donations; and Whereas, the city council must also ratify any restrictions placed on the donation by the donor; and Whereas, the donation serves the public purpose by providing employee wellness opportunities for our police department employees; and Now therefore be it resolved, Mackenzie Ann Kerska would like to donate a lightly used Vision Fitness Elliptical machine for the police department’s fitness facility. It is further resolved, by the city council of the City of St. Louis Park that the gift is hereby accepted with thanks to Mackenzie Ann Kerska for her generosity and support of the police department. Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: June 17, 2019 Consent agenda item: 4s Executive summary Title: Final payment resolution – rehabilitation of Water Treatment Plant #16 Recommended action: Motion to adopt Resolution accepting work and authorizing final payment in the amount of $4,095.46 for the rehabilitation of Water Treatment Plant #16, Flag Avenue reservoir with Champion Coatings, Inc. (project No. 4018-5000, city contract No. 139- 18). Policy consideration: Not applicable. Summary: On October 15, 2018, the city council awarded the bid for the rehabilitation of Water Treatment Plant #16, Flag Avenue reservoir project. The project was advertised, bid and awarded to Champion Coatings, Inc. in the amount of $384,000.00. This project involved a full reconditioning of the interior wet area of the tank to replace the failing coating and bring it into compliance with current requirements. During construction, it was determined that additional work was needed to remove the existing coating and repair joints in the walls of the tank before recoating could begin. This additional work was deemed necessary for proper recoating of the tank and added $25,545.73 to the contract. The contractor completed this work within the contract time allowed at a final contract cost of $409,545.73. Financial or budget considerations: The cost of the work performed by the contractor under Contract No. 139-18 has been calculated as follows: This project was planned for and included in the city’s capital improvement program (CIP) for 2018. This project will be paid for using water utility funds. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Aaron Wiesen, Project Engineer Reviewed by: Debra Heiser, Engineering Director Approved by: Tom Harmening, City Manager Original contract price $384,000.00 Additional work +$ 25,545.73 Revised contract amount $409,545.73 Previous payments -$405,450.27 Balance due $ 4,095.46 City council meeting of June 17, 2019 (Item No. 4s) Page 2 Title: Final payment resolution – rehabilitation of Water Treatment Plant #16 Resolution No. 19-____ Resolution authorizing final payment and accepting work for the rehabilitation of Water Treatment Plant #16, Flag Avenue Reservoir City Project No. 4018-5000 Contract No. 139-18 Be it resolved by the City Council of the City of St. Louis Park, Minnesota, as follows: 1.Pursuant to a written contract with the City dated October 15, 2018, Champion Coating, Inc. has satisfactorily completed the Rehabilitation of Water Treatment Plant #16, Flag Ave. Reservoir, as per Contract No. 139-18. 2.The Engineering Director has filed her recommendations for final acceptance of the work. 3.The work completed under this contract is accepted and approved. The final contract cost is $409,545.73. 4. The City Manager is directed to make final payment in the amount of $4,095.46 on this contract, taking the contractor's receipt in full. Reviewed for administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: June 17, 2019 Minutes: 4t FIRE CIVIL SERVICE COMMISSION MINUTES February 11, 2019 – 9:00 a.m. FIRE STATION 1 1. The meeting was called to order at 9:09 a.m. by President Tift. 2. In attendance were Commissioners Stuart Williams and Bob Tift. Also present were Ali Timpone, HR Manager/Staff Liaison; Steve Koering, Fire Chief; John Wolff, Deputy Fire Chief; Cary Smith, Assistant Chief and Union President/Firefighter Jake Bolinger. 3. Minutes of the October 3, 2018 Fire Civil Service meeting were approved as presented. 4. Commissioner Williams was appointed as Secretary of the Commission for 2019. 5. Deputy Chief Wolff presented the Fire Lieutenant promotional eligibility roster. He was pleased with the outcome of the process that five (5) candidates participated and completed all portions of the process. The process had new components including a promotability index and essay application. Commissioner Tift asked how the union felt about the changes, Union President Bolinger responded that the union was in favor and overall happy. A motion was made by Commissioner Williams, seconded by President Tift, to approve the 2019 Fire Lieutenant Eligibility Roster. Motion carried unanimously. 6. Chief Koering presented his annual report, including information from 2018 regarding statistics, major fire incidents, recognition, revenue, training, staffing, programs, and equipment. A copy of his report is attached. 7. Other business: The Commissioners expressed gratitude to the Fire Department for all they do and continue to do for the residents and customers of St. Louis Park. The Commissioners also noted the absence of Commissioner MacMillan and all attendees are sending their thoughts to Bill and his family during this time. 8. The Commission adjourned at 10:11 a.m. Respectfully submitted, Ali Timpone HR Manager/City Staff Liaison City council meeting of June 17, 2019 (Item No. 4t) Page 2 Title: Fire civil service commission meeting minutes February 11, 2019 Fire Civil Service Commission Report Steve Koering: Fire Chief I. Introduction I would like to share with the Commission the following report of the Fire Department’s activities in Fiscal Year 2018. II. Fire Statistics 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Structure Fires 96 57 84 76 66 63 73 53 59 54 Other Fires 68 37 53 64 48 28 42 41 43 37 Rescue/Emergency Medical 3,140 3,206 3,078 3,117 3,360 3,571 3,720 3,601 3,792 3,928 False Alarms 270 325 288 278 296 350 309 345 354 379 Mutual Aid Given 64 76 60 70 84 77 69 72 73 65 Mutual Aid Received * 56* 43* 70* 23* 59* 8* 51* 19* 37* 29* HCFIT Response (Aid Given) 9 N/A 3 5 6 3 2 0 0 3 Hazmat Responses 77 85 74 88 95 105 104 101 116 125 Other Hazardous Responses 57 108 101 57 110 91 89 80 74 81 All Other Responses 657 578 597 683 588 691 690 760 740 738 CEMT 0 0 0 0 0 0 0 0 0 124 Total 4,429 4,472 4,335 4,433 4,647 4,976 5,096 5,052 5,251 5,534 * Mutual Aid Received number is not to be included in Total III. Major Fires/Incidents in 2018 January 6, 2018 – 6310 33rd St W At 1844 hours, SLPFD Units responded to the report of a house fire. Upon arrival crews found a working structure fire with smoke coming from a 1st floor bravo side window. Captain Powers assumed command, crews pulled pre-connect lines for an offensive attack. Crews completed an exterior hit from the B-side of residence. After that, Q2 crew entered the front door and completed extinguishment from the interior. A primary and secondary search was completed. We obtained an all clear of the residence. Chief 2 arrived on-scene and assumed command. Edina crews completed salvage and overhaul after Chief 4 photographed the residence. After that, all mutual aid companies were cleared. Once equipment was St. Louis Park Fire Department February 11, 2019 City council meeting of June 17, 2019 (Item No. 4t) Page 3 Title: Fire civil service commission meeting minutes February 11, 2019 picked up and tasks were completed, E1/Q2 cleared. Chief 2 and Chief 4 remained on-scene to work with a restoration company as well as the homeowner. SMP. Damage was estimated at $70,000 January 7, 2018 – 400 Shelard Pkwy At 1249 hours, Fire crews were dispatched to 400 Shelard Parkway on a report of a water leak from a broken pipe. Engine 2 (F146, F144, F151) and Engine 1 (CPT33 and F154) went en route code 2 from their respective stations. E2 arrived and investigated. Resident on scene showed the crew where the leak came from. Water to the entire building was shut down previous to E2's arrival by on site personnel. E2 crew investigated 2 residences and found standing water in both bottom floor residences. E1 was cancelled. An alarm was found sounding in 110. Fire personnel were unable to determine exactly what the alarm was but the resident stated it was more than likely a water alarm for her hot water heater, which was found underneath the sink. No action could be taken with it. A restoration company had been contacted by the building management and was enroute. E2 cleared the scene and returned to service. F146 Damage was estimated at $75,000 February 14, 2018 – 2828 Oregon Ave S At 1248 hours, Crews were called for a basement fire that started near a dryer and was spreading. Engine 1 and Engine 2 responded from a Ridge Drive training session. Engine 1 arrived as first due and spotted to advance cross-lay attack lines up the plowed driveway. Capt. 28 briefly took command; Command was shortly thereafter transferred to Chief 2. Chief 2 conducted a 360 degree survey and confirmed a window well basement fire started in the dryer with extension to the structure. Crews were advised to attack the fire from the Delta side; Engine 2 provided water supply from a hydrant at 29th Street. Based on information from the homeowner, direct access was determined be via the garage man door. Engine 1 and Lt. 31 made entry as a crew into a heavy brown smoke. To the right of the bottom of the stairs they encountered a low burning, apparently vent controlled fire in the area in the front of, behind and to the left of the dryer area. They area was thoroughly cooled with water/foam streams to reduce the chance of possible smoke/carbon monoxide ignition. Once knockdown was determined, Engine 1 with Lt. 31 worked to open windows to vent the basement space while positive pressure ventilation was made on the building. Engine 2 set up ventilation, checked the first level for extension and brought out 1 cat and 2 turtles. Engine 1 exited the basement low on air, recycled and returned to the basement to continue overhaul. The Alpha side of the basement was rechecked for extension, the domestic water and natural gas was located and turned off at the Alpha Delta corner of the basement. Charring was noted on floor decking and floor joist above the fire area, indicating flames and heat were much higher at some point before entry was made. Access was made to the westerly crawl space prior to the second departure of Engine 1. Engine 1 was replaced in basement overhaul by a Minnetonka crew. Engine 2 completed final overhaul in the basement. Engine 1, Engine 2, and Minnetonka crews went through gross decon at the front of Engine 1. PR & JW Damage was estimated at $40,000 May 16, 2018 – 4313 Coolidge Ave S At 1958 hours, Fire units responded to 4313 Coolidge Ave S, in reference to the report of the smell of smoke after a light had been tipped over in the attic insulation. Upon arrival Captain 36 observed smoke coming from the attic vents and determined there was a working attic City council meeting of June 17, 2019 (Item No. 4t) Page 4 Title: Fire civil service commission meeting minutes February 11, 2019 fire. Captain 36 requested a 1st alarm assignment and took command. Crews learned from the homeowner that several hours earlier they had used a work light in the attic and it fell into the insulation. Several hours later they could smell weird smell and noticed charred insulation in the area which prompted their call for service. Crew 1 entered the attic through a garage access, extinguished the fire with a pump can, and moved the burned insulation into a salvage bucket. At this point mutual aid companies were cancelled. We continued to complete salvage/overhaul and removed a large portion of burned cellulose insulation. After all affected insulation was removed we did coat the attic area with foam/water and rechecked the attic with our TIC and found the fire to be out. We used our 4-gas monitor and checked the interior of the building. We obtained readings as high as 50 PPM of CO. Crews ventilated the residence until levels were acceptable. Finally, crews checked the interior detector to make sure it was operational, which it was. We did install a new CO detector for the residents, as theirs never activated in the elevated CO levels. I advised the homeowner to recheck the fire area later to ensure the problem was resolved and to call us back if needed. The residence was turned over to the homeowner and all SLPFD units cleared. Later we contacted SLPPD and requested that they check on the residence throughout the night to ensure there were no ongoing problems. SMP. Damage was estimated at $25,000 May 24, 2018 – 4925 Minnetonka Blvd At 0438 hours, Fire Units were dispatched to 4925 Minnetonka Blvd. for fire alarms sounding in the building. E1, R1 and Q2 responded. Fire Crews were updated that Dispatch was receiving multiple calls on the fire alarms. E1, R1 arrived and found a working fire on the 8th Floor, unit 818. A 1st Alarm was requested, Q2 arrived and supported the sprinkler/standpipe system. E1/R1 removed several people from the 8th Floor hallway that was full of smoke. R1 located the unit of origin (818), located the occupant and extricated her to a safe location. E1/R1 continued to attempt to have persons in the smoke filled hallway to shelter-in-place but several people continued to enter the hallway and were unable to re-enter their units and had to be escorted to the safe hallway. E1/R1 extinguished the remaining fire with a water- can as Q2 brought a hose line to the unit. R1/E1 had to exit due to low air, Q2 remained to ventilate (hydraulically). Chief 3 arrived and command was transferred to him. MRN First and second alarms were requested and resources arrived from Edina, Hopkins, Richfield, Eden Prairie, Excelsior and Minnetonka. HCMC transported the occupant from the apartment of origin to the hospital. A firefighter was also transported by HCMC to Methodist for observation. Ventilation was established to clear the smoke and squeegees were brought to the scene to assist with clearing water from the building. The sprinkler system was shut down and drained. A Russian speaking Firefighter was sent to 8th floor for customer service and translation efforts. Rehab was set up by Excelsior. City building inspector arrived on scene. Chief 4 arrived on scene and began the investigation. Fire units were cleared and command transferred to Chief 4 who continued the investigation and supervised the re-establishment of the sprinkler system and fire alarm system. HDS Damage was estimated at $100,000 May 30, 2018 – 2501 Hwy 100 At 1812 hours, Fire crews were called for a general fire alarm at Benilde-St. Margaret’s School. When crews arrived they found the building evacuated and a duct detector in room 18 as the only alarm on the alarm panel. Crews made entry to locate room 18, starting on the west side of the basement near room 27 and working around to the vicinity of room 18. Upon City council meeting of June 17, 2019 (Item No. 4t) Page 5 Title: Fire civil service commission meeting minutes February 11, 2019 reaching the area of room 18 a light haze was encountered. The art rooms were accessed with lockbox keys to find the rooms had light haze, but no evidence of a source. The kiln room was checked and the duct detector was located in the vicinity with no source evident. An All Call for staffing the stations and a Chief to the scene was requested as the investigation continued. Smoke haze was noted to be present in the east main level hall behind the auditorium, but of no more intensity than below. Search for air handling equipment was commenced and contact with the athletic director was made out front to bring more facility maintenance expertise to bear. Transfer of command was made to the arriving Chief 3. Lt. 29 encountered the main alarm panel while inspecting HVAC equipment in the boiler room and noted the panel was indicating a water flow "high school north". Command was notified there was likely a now sprinkler controlled fire and a search for the water flow was started. Lt 29 moved with Q2 crew to farther north working back south. Capt. 28 rechecked auditorium hall, art hall and then encountered the sound of water flowing through sprinkler pipes in the vicinity of the start of the basement search between rooms 22 and 27. Water was then noted flowing from under the door of room 22. The crew was reassembled, access made and a fire was confirmed sprinkler extinguished in the far left rear room (robotics area) of room 22/24. Light smoke and steam was encountered. Command was advised the fire was out and sprinkler was flowing. Chief 4 had arrived and assisted with shut down of the sprinkler system. Utility 3 arrived and assisted Engine 1 with ventilation of the basement with air flow from the loading dock to exit out an operable window in room 27. Quint 2 was released from the scene. Three electric positive pressure fans were used to assist in ventilation. Command and Chief 4 assisted facilities maintenance staff in locating a preliminary restoration company for water recovery and the sprinkler/alarm company was enroute. Upon completion of the lengthy ventilation process, visible haze was removed but smoke odors remained. Command was transferred to Chief 4 who remained on the scene while all other units cleared. Damage was estimated at $27,000 October 25, 2018 – 2544 Lynn Ave S At 1224 hours, the Fire Department was called for a report of a garage fire. Initial assignment of E1, Q2, U2 and Chief 2 responded for a detached garage with no exposures. A smoke column was seen enroute and an All Call was requested. E1 arrived and Captain 36 took command and hit the fully involved detached garage with the deck gun. Chief 2 secured water supply with Lt31. Lt31 & FF127 pulled the 1 3/4 cross lay to support mop up. The deck gun knocked down the fire. Incident Command was transferred to Chief 2, Captain 36 became Alpha and directed mop up and overhaul operations. Q2 pulled a back-up line and crew assisted with fire control and overhaul. Q2 assisted with checking for extension in the adjacent residence with a focus on the attic space. No extension was found. Chief 4 took safety and set up a perimeter from exposed power lines. Xcel, Comcast and Century Link were requested to secure and repair utilities. 84 YO female homeowner was reported smoking in the garage shortly before the fire was called in by a passerby. Female suffered smoke inhalation and was transported to HCMC for observation. Subsequent report from other family members indicated that the female homeowner was using buckets of water from the kitchen sink to control the fire. This likely had an impact on the fire involvement when crews arrived. EPFD LSU was called to the scene for REHAB. E1 driver set up DECON. Damage was estimated at $150,000 City council meeting of June 17, 2019 (Item No. 4t) Page 6 Title: Fire civil service commission meeting minutes February 11, 2019 December 30, 2018 – 4501 Park Glen Rd At 1248 hours Fire Units were dispatched to 4501 Park Glen Rd. for a fire in unit 114. E1, S3 and Q2 responded. E1 arrived to find a working fire on a first floor apartment, crews made a quick-hit and then moved to the interior. Chief 3 arrived and assumed command. Q2 arrived, laid a supply line and assisted with attack, checking for extension, overhaul and ventilation. Mutual aid units assisted with ventilation, overhaul and were cleared when efforts were completed. The scene was turned over to building management with heavy fire, smoke and water damage to unit 114. MRN Damage was estimated at $70,000 Fire Department Recognition at Annual Meeting The Fire Department held its Annual Meeting on January 29, 2019 at the Sabes Jewish Community Center. Fire Chief Steve Koering invited the Fire Department and CERT members and their families to attend, as well as the Fire Civil Service Commission, City Administration and the Police Department as the following staff were honored for their exemplary performance in 2018: Chief’s Commendation: • Firefighter/FPS Tim Nordstrom • Firefighter Andy Willenbring • Firefighter Adam Younger Unit Citation Award – Captain Mark Nelson, Lt. Matt Nordby, Lt. Jens Andersen, Firefighters Andy Willenbring, Matt Evans, Billy Breckle, Rod Rodriguez, John Myhre, Dispatcher Marv Solberg and Police Officers Troy Peek, Maurice Smith and Joe Dohman Distinguished Service: • Firefighter Nancy Schmelzle • Dispatchers Tony Martin and Jennifer Hellam III. Fire Prevention Bureau Fire Protection Permits: 2012 2013 2014 2015 2016 2017 2018 Permits Issued 392* 397* 378* 398 390 328 287 Permit Valuation $2,211,436 $1,886,652 $1,693,164 $2,336,158 $3,337,218 $1,947,529 $1,536,191 Permit Fees $53,151 $53,783 $48,525 $70,738 $77,835 $57,757 $50,727 * Recreational Fire Permits are now included in the total number of permits issued. The Fire Prevention Bureau, conducted inspections of multi-family dwellings and businesses in St. Louis Park. In 2018, the Fire Department conducted 712 permit inspections and 427 multi- family and commercial inspections/re-inspections. City council meeting of June 17, 2019 (Item No. 4t) Page 7 Title: Fire civil service commission meeting minutes February 11, 2019 Recreational Fire Permits The Fire Department has heavily marketed the need for recreational fire permits to residents. Starting in May of 2012, the Recreational Fire Permits changed from being annual permits to permanent permits, for as long as the person resides at their residence. On-site inspections are also now required prior to permit issuance. Recreational fires have been becoming increasingly popular, however, many residents do not meet the Minnesota State Fire Code for setbacks and are ineligible for a permit. The City implemented a $50.00 Civil Penalty Fine for people who do not have a permit or are in violation of the permit regulations. Permit holders who violate the regulations will have their permit revoked for one calendar year. Year # Permits Issued # Complaint Calls 2005 270 36 2006 302 26 2007 313 36 2008 470 64 2009 548 63 2010 628 25 2011 698 31 2012 521* 79 2013 173 56 2014 112 36 2015 125 47 2016 88 50 2017 88 35 2018 60 40 * 340 Annual and 181 Permanent City council meeting of June 17, 2019 (Item No. 4t) Page 8 Title: Fire civil service commission meeting minutes February 11, 2019 Fire Prevention/Public Education: The St. Louis Park Fire Department worked 178 hours on Public Education in 2018. The largest event of the year was the Fire Station 1 Open House. Approximately 3,000 people attended this event to see the station, emergency vehicles and learn about fire safety. Station tours continue to be a popular event in 2018 as community members, scout troops, pre-schools classes, St. Louis Park Senior High School Youth Development Committee, home schooled and private school groups, special needs children, adults and seniors came to tour the stations. Department members made every effort to accommodate the tours requests and provided educational information on every tour. Fire Department staff provided public education to nearly all of the schools in the city, including Torah Academy, Holy Family, Park Spanish Immersion, Aquila, Peter Hobart and Susan Lindgren, and Kindercare. The events included Career Day at the High School, science fairs, and family reading nights. The Department also provided fire safety and education to parents of Early Childhood Family Education at Central Community Center, to senior groups at Menorah Plaza, Park Shore Apartments, Lenox Community Center. The Fire Department sent personnel and vehicles to safety events put on by businesses in the city. The West End, Costco, Cub Foods, Old Navy and Home Depot all held Safety Days in 2018. Some events had hundreds of people attending. The Fire Department also participated in a number of other city and community events in 2018 – below is a sampling: • Block Parties: Fire engines went to block parties and neighborhood gatherings throughout the year • Fourth of July Fireworks • Parktacular Parade: As always, the Ladder Truck was a popular participant in the Parktacular parade. The Fire Department also provided fire safety handouts and information at the Parktacular Children’s Event at Wolfe Park. • National Night Out: The Fire Department had a strong presence in the community, visiting numerous block parties, talking about fire safety and answering any questions residents had. • Children First Ice Cream Social • Vehicle Fair at Central Community Center • Westwood Halloween March • Toy Drive with Park Tavern • Holiday Train Year End Event Totals • Events – 100 • Hours – 178 • Children in Attendance- 6,485 • Adults in Attendance – 5,464 City council meeting of June 17, 2019 (Item No. 4t) Page 9 Title: Fire civil service commission meeting minutes February 11, 2019 In 2018 Fire Prevention Specialist (FPS) continue doing inspections, complaint follow ups, installation of residential key boxes, smoke alarms and public education. This assignment was made possible by a SAFER grant we received that enabled us to hire additional staff. Also in 2018, 43 residential key boxes were installed for use by emergency responders in the event we are called to individual’s residence. This residential key box program is available to anyone that requests one. Due to the continued success of the program, additional key boxes have been ordered. IV. Fire Department Training and Wellness In 2018, a new class of Part Time Firefighters began their training in the summer with our Recruit Academy and continued in the fall and winter with SW Metro Fire Academy. The following are some of the more interesting or larger trainings and a quick summary of the diverse topics that we covered through the year: In January we focused on decontamination procedures for firefighters on fire scenes. Gross decontamination of firefighters as they exit structures includes washing or brushing off particles of insulation, drywall, ashes or chemicals. Firefighters have to be aware of how to handle their contaminated gear and equipment and how to safely transport it back to the fire station for full decontamination. February training included a lot of hands-on tasks. Pulling hose lines, hooking up to hydrants and working with the Quint’s ladder. One of the drills had firefighters trying to place a traffic cone (that was dangling by a rope from the tip of the Quint’s ladder) on top of another traffic cone that was placed on top of a street light! March is usually our forcible entry training month and this was no exception. Making entry into buildings often requires forcible entry and these are perishable, but essential skills for any firefighter. March is also the beginning of wildland fire season. We trained on this topic because we have significant exposure to wildland/urban interface fires in St Louis Park. In April the City Manager delivered the State of the City presentation to the department. We also had the first of two trainings this year around Calling the Mayday. What to do when things go wrong in a fire. The month ended with more hands-on drills as we relearned our procedures and techniques for combating high rise fires. May was the month for our second EMT refresher. We also focused on crash scene rescue with trainings on auto extrication. At the end of the month we joined our partners from the other South West Metro fire departments for a Joint Ops training where we had our second training of the year that addressed Maydays and procedures for calling and reacting to mayday events. In June instructors from the MnFire initiative led us through training on the three killers of firefighters: Cardiac, Cancer and Psychological Trauma. We became a MnFire-Aware department. We were also able to use a donated house to practice special entry tactics called Vent, Enter, Isolate, Search, or VEIS. In July we had our third EMT refresher training and hosted an instructor from Century College, who taught us about solar power and the special considerations for responding to City council meeting of June 17, 2019 (Item No. 4t) Page 10 Title: Fire civil service commission meeting minutes February 11, 2019 fires in buildings with solar power. Additionally we had instructors from the railroad deliver training about responding to emergencies on the railroad. After National Night Out, August held our final Blue Card refresher training. This training allows us to recertify ourselves in the fireground command tactics certification called Blue Card. We also had our second technical rescue training of the year, focused on rope rescue techniques. The month ended with another social event: the Annual Department Picnic. September was the month for our third and final Hazmat training of the year. Responding to incidents involving the release of hazardous materials is a technically complex process. OSHA requires that all firefighters receive at least 8 hours of continuing education on the subject. This month we were also able to use a car fire prop from the State Fire Marshal’s office. Car fires are one of the most common types of fires we respond to. In October the department was able to participate in a city-wide initiative around race equity. Members participated in assessments, discussions and lectures on the subject and we hope to do more in this area next year. This month was also the date for our annual SCBA confidence course where we take it in turns to wear our full gear, with SCBA and submit ourselves to physically and mentally strenuous tasks. November saw us focus on saws. More hands-on training around the care and operation of our chainsaws and cutoff saws. We also had outside speakers present on the topic of firefighter PTSD. The month ended with our final EMT refresher class of the year. December, this month we held our annual ice rescue refresher training on Wolf Lake. We also held training on our roles and responsibilities during an ASHER incident (Active Shooter Hostile Event Response). We work in Triage Rescue Teams, alongside police officers. CERT Our Citizen Emergency Response Team (CERT) continues to engage in community events including our Open House, Parktacular, 4th of July and the Holiday Train. They have begun to train and work more closely with the Hopkins CERT to provide a more regional capability. They meet monthly for ongoing training and we will be recruiting again this summer. The Team currently sits at 25 members. V. Mutual Aid We are doing automatic mutual aid/auto aid with six cities: Edina, Eden Prairie, Hopkins, Golden Valley, Plymouth and Minnetonka. This program continues to be successful by front loading our fires personnel and equipment. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mutual Aid Given 67 64 76 60 70 84 77 69 71 73 65 Mutual Aid Received 62* 56* 43* 70* 23* 59* 8* 51* 19* 37* 29* *Each mutual aid received number generally represents a minimum of two cities helping St. Louis Park per incident. City council meeting of June 17, 2019 (Item No. 4t) Page 11 Title: Fire civil service commission meeting minutes February 11, 2019 VI. Staffing At the end of July, Lt. Eva Hansen retired. Derek Fladland was hired on June 25 to fill that vacancy. At the beginning of August, Jens Andersen was promoted to a Lieutenant. In September, Mike Lindblom resigned and Brandon Olson was hired at the beginning of October. Additionally, we have increased our daily staffing by deploying our Part Time Firefighters on shift at the stations where Career staff are on vacation. The Part Time staff have become a more valued and integral part of our emergency response capability. In 2018, we started the year out with 20 Part Time Firefighters. Part Time Firefighters Niki Typpo, Nathan Witt, Xander Krohnfeldt, Kevin O’Connell and Dan Buettner resigned from the department during the course of the year. In June we hired seven new Park Time Firefighter Recruits: Jacolby Arcoren, Kyle Bright, Jake Duax, Andrew Fricke, Brendan Jones, Taryn MacMillan and Chad Schneider. The new Recruits have completed Firefighter I and will complete the remainder of their training in 2019. Our Part Time Firefighter Recruits that were hired in 2017 were sworn in at the Annual Meeting: Josh Nemitz, Dave Pacheco and Sveta Vold. In 2018, both the Captain’s list process was conducted and certified by the Fire Civil Service Commission. We had two interns during 2018. Andrew Larkins worked with Fire Prevention between May and September and Yogita Singh worked as a Data Science intern from July to October. We have continued with the Fire Prevention Specialist (FPS) assignment. These FPS have a focused emphasis on Fire Prevention with one member on each shift to support the pre- planning process and inspection workloads. VII. Programs Fire Department Strategic Plan - The Fire Chief completed and presented the 5 Year Strategic Plan for the Fire Department. This plan addressed the four areas of emphasis for the department; Prevention and Education, Suppression and Emergency Response, Emergency Medical Services and Emergency Management. There are ten initiatives that prioritize the work, each with a set of goals and objectives. This five year plan runs from 2018-2023. The St. Louis Park Fire Department remains committed to the innovation and expansion of its Community Health Management work. This area of organizational transformation ties to Initiative number six within the Strategic Plan and builds on the success of the work we have been doing since 2014. A business plan was developed and it identifies three key priorities: 1. Improve Community Health 2. Build Collaborative Partnerships 3. Ensure Sustainability Within the Community Health Management program there were a number of programs that evolved throughout the year. City council meeting of June 17, 2019 (Item No. 4t) Page 12 Title: Fire civil service commission meeting minutes February 11, 2019 Community EMT (CEMT) - In the 2016 Legislative session the responder status of Community EMT was codified in statute. This created a formalized designation recognized by Medicare which could bill for services. Additionally, the expansion of MIH (mobile integrated healthcare) is allowing more ways to utilize CEMT’s in a number of patient contacts. The Community EMT program in St. Louis Park has now evolved into a fully developed delivery system that; 1. Identifies patients and creates a referral 2. Engages care coordination and care navigation to address gaps in service 3. Works under the license of a Primary Care Physician as Medical Director 4. Creates patient contact orders for CEMT’s to ensure improved outcomes 5. Provides for a revenue stream through compliant billing to a variety for payer types This approach allows the work we do to function much like a clinic only outside the walls of the building. Park Nicollet Post Discharge Visits Since its inception in 2014, the program with Park Nicollet has continued to evolve. The partnership continues and today includes the Cities of St. Louis Park, Minnetonka, Eden Prairie and Hopkins. These visits which total over 1,200 have made a significant difference for the patients and the communities they live in. Starting in 2019, the program will transition to expand the involvement of the Care Coordination Department and its ten Care Coordinators. This will provide for a framework to create referrals and CEMT work as patients are discharged form a variety of settings within the Health Partners System. The administration of the process will become part of the overall program within the Fire Department’s Community Health Management program. OTHER PROGRAMS The File of Life program which was launched in June, 2007 is still a very popular program. We will continue to market this program through the city website, Park Perspectives, neighborhood groups and various other groups and organizations, fire events and apartment/condo communities. There is no fee for residents to obtain these kits. This program was established to help Police and First Responders to provide service when a person may not be able to communicate effectively due to a medical reason or personal injury. The kit includes a magnetized refrigerator folder and an information card to indicate health problems, medications, allergies, emergency contacts, etc. Our Child Car Seat Safety Program continues to be in high demand by both residents and non-residents. We conduct inspections two or three times a month for two to three hours. The fees are $40.00 for the first car seat or base and $20.00 for each subsequent car seat or base. We currently have three certified car seat technicians. Car Seat Inspections Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Car Seat Inspections 100 250 205 225 98 122 158 92 47 78 70 Fees $2,340 $5,064 $4,250 $4,390 $2,070 $2,305 $3,185 $1,930 $2,160 $2,820 $2,480 City council meeting of June 17, 2019 (Item No. 4t) Page 13 Title: Fire civil service commission meeting minutes February 11, 2019 The Fire Department also continues to provide training for city employees in Hands Only CPR, First Aid, and Right to Know. Hands Only CPR The Fire Department now offers Hands Only CPR training. Individuals may sign up on line and classes are typically held at least twice a month. Class attendees also learn about automatic external defibrillators (AEDs). At least 300 people went through this valuable training. PulsePoint Respond Along with our Hands Only CPR training, we encourage those going through the training to sign up for PulsePoint Respond. PulsePoint Respond empowers everyday citizens to provide life-saving assistance to victims of sudden cardiac arrest. This mobile phone app is a free and allows users to view and receive alerts on sudden cardiac arrest calls being responded to by our Fire Department and emergency medical services. The app's main feature is that it sends alerts to users at the same time that dispatchers are sending the call to emergency crews. The goal is to increase the possibility that a victim in cardiac arrest will receive cardiopulmonary resuscitation (CPR) quickly. The app uses the current location of a user and will alert them if someone in their vicinity is in need of CPR. The app, which interfaces with our Fire Department Dispatch, sends notifications to users only if the victim is in a public place and only to users that are in the immediate vicinity of the emergency. City council meeting of June 17, 2019 (Item No. 4t) Page 14 Title: Fire civil service commission meeting minutes February 11, 2019 VIII. Stations, Gear and Apparatus In 2018, the Fire Department completed the fleet upgrade program started in 2015. This past year we replaced Squad 2 and Squad 3. Squad 2 and 3 are command staff vehicles and are set up for handling incident management and direct response from home as a part of our Duty Chief program. In addition, we took delivery of a new utility vehicle. Utility 2 serves as a fire prevention vehicle on weekdays and is also used on structure fires to shuttle staff and equipment to and from the scene. Utility 2 is built off of the same cab and chassis as Utility 1, Utility 3, Rescue 1 and Rescue 2. Squad 2 (Squad 3 not shown) Utility 2 The fleet upgrade program started in 2015 was completed in 2018. City council meeting of June 17, 2019 (Item No. 4t) Page 15 Title: Fire civil service commission meeting minutes February 11, 2019 2018 was a busy year for planning and implementing number of proposed large scale technology upgrades. Image Trend Elite was selected to deliver records management and the electronic patient care record (ePCR) solution needed to manage our emergency response and mobile integrated health compliance and record keeping needs. The system is very customizable and user friendly. The Fire Department is deep into the implementation of the new system with the goal of going live in the 2nd Quarter of 2019. We also selected a vendor to upgrade our Station Alerting system. Unfortunately when the station was built, robust off the shelf solutions were not favored in lieu of a homemade solution. The current solution has been challenged with integration issues and difficult service pathways when problems arise. US Digital will be providing an integrated turnkey system that will help to improve response times, enhance 911 dispatcher productivity while remaining flexible to adapt to ongoing service model changes. City council meeting of June 17, 2019 (Item No. 4t) Page 16 Title: Fire civil service commission meeting minutes February 11, 2019 Station Alerting will be implemented in the 3rd Quarter of 2019. Meeting: City council Meeting date: June 17, 2019 Minutes: 4u UNOFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA March 20, 2019 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lisa Peilen; Carl Robertson; Alanna Franklin (youth member) Lynne Carper; Matt Eckholm; Joe Tatalovich; Jessica Kraft MEMBERS ABSENT: Claudia Johnston-Madison STAFF PRESENT: Sean Walther, Gary Morrison, Jacquelyn Kramer 1. Call to Order – Roll Call 2. Approval of Minutes: February 20, 2019 Commissioner Robertson made a motion to approve the minutes. Commissioner Carper seconded the motion, and the motion passed on a vote of 5-1, Commissioner Peilen abstained as she was not present for the February 20th meeting. 3. Public Hearings A. Best Cleaners Conditional Use Permit and Variance Applicant: Robert Colehour (Best Cleaners, Inc.) Location: 8105 Minnetonka Blvd Case Nos: 19-02-CUP and 19-03-VAR Jacquelyn Kramer, Associate Planner, presented the staff report. The applicant applied for a conditional use permit and variance to construct a building addition to expand their existing operations. The property is zoned C-2 General Commercial, and Best Cleaners has operated on the site since 1999. Both the existing and proposed uses are permitted in the C-2 district. Existing building elevations consist of painted brick, glass glazing and the canvas canopy, and the new addition would be over 90% class one materials, which meets city architectural material standards. Zoning code section 36-366 states no building may display more than 5% of any elevation surface in bright pure accent colors. The existing yellow canopy makes up more than 5% of the building elevation, and does not comply with this provision. Staff recommends that as a condition of approval the existing canopy should be renovated to reduce the amount of bright pure accent colors to not more than 5% of the total building elevation. Staff finds this application meets all of the C-2 and general conditions for a CUP. City council meeting of June 17, 2019 (Item No. 4u) Page 2 Title: Planning commission meeting minutes March 20, 2019 The existing and proposed building addition meet the north, east and south setback requirements. The west side of the existing building is only five feet off the property line and the applicant proposes continuing that line for the building addition. The parcel is adjacent to residential zoned parcels, so the required setback is fifteen feet. Applicant requested a variance to reduce the side setback to bring the existing building into compliance with the zoning code and allow the new addition to be built. After reviewing the application, city staff found little chances for negative impacts from a five foot setback due to the location of existing buildings on the site and the apartment building on the southwest. Practical difficulties exist in complying with the zoning code, and the variance will allow for the most efficient use of the interior space in the addition to maximize business operations. On-site parking will also be maximized with this layout, resulting in the least amount of impact of traffic circulation and on-street parking in the neighborhood. Staff recommends the commission close the public hearing and recommend approval of the conditional use permit and variance with conditions recommended by staff within the staff report. Commissioner Robertson questioned the variance of ten feet on the west, and indicated an interest in respecting that buffer between the existing residential use and Best Cleaners. He raised the possibility of the addition shifting 10 feet to comply with the regulation and avoid the variance. Architect for the applicant, John Kosmas with KK Design explained the plans presented best fits the property’s location with the least amount of impact to the neighboring parcels. Mr. Kosmas further explained that the addition would not be adjacent to the residential building. Commissioner Carper asked about the business hours and the long term plans for operations on the site. General Manager for Best Cleaners, Robert Colehour stated the back half of the building is only open for production hours, which is 5:00 a.m. to 1:00 p.m. The front half of the building is a laundry mat and those hours are 7:00 a.m. to 9:00 p.m., Monday through Saturday and then 9:00 a.m. to 9:00 p.m. on Sunday. Robert added they need the extra area so that they can consolidate operations from their Excelsior location. With the consolidation they will be able to add about six to seven full-time employees. Commissioner Carper asked if the business is a solely owned business or a franchise type of business. Mr. Colehour explained they are not a franchise and that they purchased the Excelsior location about three and a half years ago when it was Tonka Cleaners, then changed the name after purchase to Best. Commissioner Carper asked if customers from nearby businesses park in Best Cleaner’s lot, and if the business restricts parking and post signs in their lot. City council meeting of June 17, 2019 (Item No. 4u) Page 3 Title: Planning commission meeting minutes March 20, 2019 Mr. Colehour responded that they do not post any of those signs, though they have thought about it. The restaurant’s busy times are when Best Cleaners isn’t parking or needing the space so it’s never been a real issue. Commissioner Robertson had a follow-up question related to the reaction to the request for reducing the primary color awning, understanding it’s a very prominent part of the signage. Mr. Kosmas says they’ve also discussed the issue of having to change the color or reduce the amount of the canopy that is yellow and would like to request that particular condition be removed. As an established business the color is part of their branding at this site and the other buildings they own and would like to stay with it. He adds that the building rendering exaggerates the color compared to what it actually is today. Commissioner Robertson asked city staff about removing the condition that requires renovating the existing canopy and allowing the canopy to allow it continue as a legal nonconformity. Ms. Kramer responded that the proposed expanded yellow canopy shown on the east elevation would need an additional variance. This would be considered a separate issue from the existing canopy and whether it’s allowed to continue as a legal, non-conforming use. Commissioner Peilen says she agrees with Commissioner Robertson on this point. The canopy has been on the building for some time and people use the color to identify the business. If it’s suddenly gone people may wonder where the cleaners went. She supports keeping the existing canopy. Commissioner Carper asked if the Commission can modify the request to allow the color to continue and have that within what would be approved, or is this something that has to be done outside of this meeting. Planning Supervisor Sean Walther said if the commission makes a recommendation to the council to not require a change to the existing canopy on the north elevation of the building, the existing canopy will continue as a legal non-conformity. Any new canopy would need to be in compliance with the current code or a variance would need to be requested through a separate process. Commissioner Peilen asked if the staff is aware of any complaints regarding the color. Mr. Walther said staff has not received complaints and the only comments received were from two internal people from the city. Chair Eckholm asked for clarification as he was under the impression the issue was more about the size and percentage of the building that was that color versus the color itself. Mr. Walther said Chair Eckholm is correct; it is about the percentage and that the zoning code architectural standards limit bright pure accent colors to five percent of a building elevation, which this exceeds. City council meeting of June 17, 2019 (Item No. 4u) Page 4 Title: Planning commission meeting minutes March 20, 2019 Chair Eckholm asked if the applicant chose to keep the awning would they have to go smaller or could they leave it as-is. Mr. Walther said they can keep the canopy as-is or renovate it to reduce the yellow color. Mr. Kosmas stated the applicant is willing to modify the amount of yellow color on the proposed for the canopy on the east side of the building to comply with the zoning code. Commissioner Carper asked how colors are approved and how does one determine where the cutoff is between shade, tint and pantone. Mr. Walther said as the Zoning Administrator he interprets the regulation, and that if someone challenges the interpretation it can be appealed to the Board of Zoning Appeals and City Council. Commissioner Carper asked if the owner would be willing to change the yellow of the canopy to a less bright color. Owner of the building and business, Dave Colehour stated they did not want to replace the existing canopy at this time. He added he does not care what the color the additional awning is as long as it looks nice and is more than willing to work with the city. The chair opened the public hearing. As no one else was present wishing to speak, the Chair closed the public hearing. The commissioners discussed amending the staff recommendations to allow the existing canopy to remain as legally nonconforming. Commissioner Robertson made a motion to approve the conditional use permit and the variance as recommended by staff with the exception of the first portion of condition number two to allow the north canopy to remain and only require changes to the proposed new awning on the east elevation. Commissioner Carper seconded the motion, and the motion passed on a vote of 6-0. 4. Other Business o Commissioner Peilen announced she will not be reapplying for another term. 5. Communications: o The next meeting will be April 3, 2019 and planning commission will discuss the Home Occupations ordinance, with another public hearing on this matter. o A study session will immediately follow the meeting to discuss the Mixed Use zoning district ordinance amendment and prepare for the joint study session with City Council on April 8, 2019. 6. Adjournment The meeting was adjourned at 6:38 p.m. and was followed by a study session. City council meeting of June 17, 2019 (Item No. 4u) Page 5 Title: Planning commission meeting minutes March 20, 2019 STUDY SESSION The study session commenced at 6:45 p.m. 1. Board of Zoning Appeals (BOZA) Mr. Walther lead the discussion related to the 2019 Planning Commission work plan. He noted that a conversation has started internally about the Board of Zoning Appeals commission (BOZA). BOZA has been short two members and struggling to get people to apply and keeping a quorum. This could be due in part to the significant decline in the number of variance applications as a result of code changes. The city proposes shifting the duties of the Board of Zoning Appeals to the Planning Commission and this transition will likely happen swiftly. Staff would like commissioners’ feedback. The city believes this change will improve efficiency and consistency on how variances are handled, and reduce the time for applicants to receive a hearing.. In addition, BOZA meet once monthly, whereas the Planning Commission meets twice monthly which means the city would be more responsive to applicants and the projects they would like to move forward. Instead of getting rid of BOZA, the Planning Commission members would also serve as the BOZA members and pair this meeting with the Planning Commission meeting, and the BOZA meeting would precede the Planning Commission meeting. Mr. Walther described the duties expected of BOZA as follows: to act on variance only applications and BOZA member can make a final decision on a variance. BOZA decisions may be appealed to the city council. Also, any variance application that is paired with another application will be handled as it is now, through the Planning Commission, make a recommendation and have the city council make the final decision. BOZA also hears any appeals of interpretations made by the zoning administrator. This is also an opportunity to review and revise the bylaws. For example, there could be changes to meeting start times. Mr. Walther asked for any initial feedback. Commissioner Robertson said he is not opposed to it. Chair Eckholm responded that based on the explanation he does not oppose it either. Commissioner Kraft agreed that it seemed appropriate. She asked if this would add to the 2 hour time commitment they currently expect for the planning commission meetings. Mr. Walther said it would be very rare for that to happen. City council meeting of June 17, 2019 (Item No. 4u) Page 6 Title: Planning commission meeting minutes March 20, 2019 Commissioner Robertson asked if the Planning Commission, Youth Member would be a voting BOZA member. Mr. Walther said he does not think so. However, it was asked at the Boards and Commissions meeting and that could be pursued in the future. Commissioner Robertson noted there wasn’t a clear answer to why youth members were not voting members. Commissioner Robertson said as a recommending body it’s seems reasonable to consider this for Planning Commission compared to BOZA where it’s final decision. Chair Eckholm said he agreed with Commissioner Robertson, especially as there is a national conversation of having the legal voting age reduced to sixteen. He does not see this as being out of the question. Mr. Walther said he would direct the question to the city attorney. Commissioner Tatalovich asked about the posting of the meetings, will they need to be distinct because of the starting time being different if there is a BOZA meeting included that night. How do we make the public aware of starting times for the days there will be both meetings. Commissioner Peilen stated this seemed similar to the economic development authority meeting that precede the city council meetings. It is always noted in the agenda that is submitted on the city’s website for the public’s knowledge of what to expect each time. Mr. Walther agreed with Commissioner Peilen’s comment and explained how the City of St. Louis Park currently relates the meeting schedules to the public. Commissioner Carper gave another view point about the Youth Member being on the commission. He said there is an opportunity to hear the youth’s perspective on what is being talked about, which adds to the discussion very well. The youth member is not of age to vote in the community. This could be the reason to not give someone a vote on the boards and commissions. Chair Eckholm responded that board and commissions are advisory bodies. Mr. Walther states that not being a qualified voter is the likely reason for the voting restriction, but he will be confirm with the city attorney. On a side note, Commissioner Robertson said he would like to reexamine the primary color ordinance. Mr. Walther suggested that can be included in the review of the architectural materials. 2. Mixed Use Zoning District City council meeting of June 17, 2019 (Item No. 4u) Page 7 Title: Planning commission meeting minutes March 20, 2019 Mr. Walther explained this is to give everyone an opportunity to see the whole ordinance before bringing the ordinance to the commission for a public hearing and formal recommendation. Commissioner Peilen had a questions about the table on page 36 about the point system. She asked if this encouraging buildings that aren’t requesting city assistance to conform to city requirements. Mr. Walther said, yes it’s another way for the city to achieve the goals outlined even if there is not financial assistance and a way for developers to achieve higher densities. Commissioner Carper asked about page 33, and condition that liquor store needing to be at least a 1,000 feet from a site containing a pawn shop or firearm sales. When discussing home sale businesses and someone selling firearms from their home, would this be apply under those circumstances of 1,000 feet? Mr. Walther replied in the affirmative. Home-based firearm sales would need to be 1000 feet away. Commissioner Carper said he wanted to be sure that it was a consistent exclusion. Mr. Walther explained that it was applied consistently. Commissioner Robertson said this is worthy of more discussion as we are still in the middle of home sales discussions. With home sales being so different than retail sales. Commissioner Carper asked a question about page 38 of the agenda, regarding prohibiting a very large wall with no windows. He asked if there is a way to make this less ambiguous? Chair Eckholm stated we don’t want to be too prescriptive either. To prevent someone coming forward to use that as an angle. Commissioner Carper asked for clarification the requirement for visibility into the building should be maintained for a minimum depth of 3 feet. Can someone have the ability to obscure a window? Mr. Walther said they will try to redefine it better, but the concern is more at the pedestrian level, which has ranges from 3 to 7 feet above grade. Commissioner Kraft asked about the restrictions on the type of uses that may not be visible outside the building, as she would not want to prohibit windows in staff break rooms. Chair Eckholm suggested keeping break rooms away from the primary or secondary frontages, still allows windows to the outside just not by prime real estate. Commissioner Carper brought up page 39 item F, pedestrian scaled signs. He asked for clarification on what a pedestrian scaled sign is. City council meeting of June 17, 2019 (Item No. 4u) Page 8 Title: Planning commission meeting minutes March 20, 2019 Mr. Walther gave an example of a sign as a sandwich board sign, one you might find sitting on the sidewalk that is not connected to the building. This term is defined elsewhere in the zoning code. Commissioner Robertson stated that requiring 80% of class I material increases the cost of the building by quite a bit, which works against the goal of providing affordable housing by having the minimum so high. Chair Eckholm mentioned that it says no class III materials on any building face that is visible from public areas within the development or from off site, meaning any tower with density you cannot build with class III materials. Commissioner Carper asked for further clarification on page 33 item 1A about not being able to have a separate bar area within the establishment where it serves wine, beer and liquor. Mr. Walther explained this is an already established rule that is being repeated from other districts. 3. Preparation of City Council Study Session on April 8th Mr. Walther explained there are two items to be discussed with city council. The ground floor transparency window requirements ordinance was voted down with a 6-0 vote by planning commission. Also, the council decided this year to meet with the chair of each board or commission to go over the 2019 work plan. Mr. Walther explained this a review of what we have prepared as a work plan and questions they may have about priorities or things city council may not have had on their radar before. Commissioners agreed they would prefer an informal conversation that includes all members, rather than having one spokesperson on behalf of the commission. Commissioner Robertson said they should discuss why they are torn on certain things. Commissioner Carper says they should hear all their different perspectives as they all come from different point of views on matters. Chair Eckholm said based off the conversation right now, he sees the architecture material requirements as not ranked on strategic priority. And maybe this is something that should be moved up to have more of an urgent conversation about it. Commissioner Robertson rephrases by saying, a more general discussion to have about zoning requirements impact on cost of construction and how it interfaces with the affordable housing goals. City council meeting of June 17, 2019 (Item No. 4u) Page 9 Title: Planning commission meeting minutes March 20, 2019 Commissioner Peilen said the city has rights protect to standards, as there are probably some appropriate reasons why they exist. But, sometimes it can get to be micromanaging so it’s good to have more flexibility since it’s not always a one size fits all. Commissioner Kraft brought up that thought of having everyone share their thoughts about the window transparency topic and possibly designating one person to discuss the work plan and the main goals. Commissioner Tatalovich announced that he will not renew for another term, and the School Board will have someone else take his place. Commissioners also discussed the attendance bylaws of the committee and came to the conclusion they will leave it as is, but we will not be posting whether it was excused or unexcused in the official minutes of the meeting. The study session meeting was adjourned at 6:38 p.m. Meeting: City council Meeting date: June 17, 2019 Minutes: 4v UNOFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA APRIL 3, 2019 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lisa Peilen, Carl Robertson, Matt Eckholm, Lynne Carper, Joe Tatalovich, Jessica Kraft, Claudia Johnston-Madison MEMBERS ABSENT: Alanna Franklin, Joe Tatalovich STAFF PRESENT: Jacquelyn Kramer, Sean Walther 1. Call to Order – Roll Call 2. Approval of Minutes: None 3. Public Hearings A. Home Occupations Applicant: City of St. Louis Park Case Nos: 18-43-ZA Mr. Sean Walther, Planning and Zoning Supervisor, presented the staff report. Commissioner Peilen stated she doesn’t understand why the city would care what happens within the house. Commissioner Carper asked how we would address the issue of space that is allowed within a home when it comes down to a full basement. Mr. Walther responded that staff would likely consider that to be one room. Commissioner Carper asked if that would mean it’s impossible to have any of the business upstairs above the basement, would it all need to be downstairs? Mr. Walther responded that in that situation that would be correct. Commissioner Carper asked about business not being able to be conducted within in any attached or detached accessory building, would this also mean they cannot use the accessory building for storage. Mr. Walther responded that if the items are specifically related to the home occupation then it would be prohibited, but if the items could be used for the principal use of the site, which is a residence, then that may be allowed. It’s a fine line but this rule has been in City council meeting of June 17, 2019 (Item No. 4v) Page 2 Title: Planning commission meeting minutes April 3, 2019 place for many years. Additionally, this is not a change that’s being proposed, this is the current regulation. Commissioner Carper asked how we can go about changing this rule. Mr. Walther responded that if there was complete agreement in what the rule ought to be the commission could make the change and edit the rule this evening. If it’s something that will need additional discussion, it would be best to hold off to discuss this at a future date. Commissioner Peilen asked when this item would be going to council. Mr. Walther responded if it’s moved on this evening, it will likely go to council in May. Commissioner Peilen stated if this is the current rule, then we’re debating something that’s already been adopted by a previous council. Commissioner Carper brought up the issue of only being able to have items related to the home reside in an accessory building and related it to a possible mailing business where you may need to ship things out. This would require you to have a scale for weighing packages, packing materials and other various material to get the job done. These items aren’t usually found in the home. Commissioner Carper asked about the policy regarding no person should be employed at the residence who does not legally reside in the home, the exception being a licensed group family. He asked if this is only full-time employment, or are we itemizing any type of employment? He provided an example of a business owner having their book keeper coming in to do paperwork and financials for the business. The rule would say they could not come in because they are an employee of the home owner. Mr. Walther responded that this is a fine point, but if they are employed simply and only by that business, that would not be allowed if they’re not residing on the site. This policy is intended for the residence of the home who is running the business, not for outside employees being dispatched to the location. Commissioner Carper asked about how the businesses were chosen to be excluded as home occupations. Mr. Walther responded he can only speak on the items that were added, not to the previous uses already listed. The newly listed items are added because zoning includes restrictions from being located within a certain distance to residential and so therefore should not be allow in residences and residential zoning districts. Commissioner Johnston-Madison said she shares similar issues of that of Commissioner Peilen and Commissioner Carper. She stated the commissioners were asked if they would agree to add restricting firearm sales as a home occupation. Planning commission learned more about the ordinance that has been in effect for several years and hasn’t been City council meeting of June 17, 2019 (Item No. 4v) Page 3 Title: Planning commission meeting minutes April 3, 2019 reviewed for some time. Commissioner Johnston-Madison said she wants to review this ordinance further to make more changes to the policy. Commissioner Carper asked Mr. Walther about the repetition of the ordinance in multiple sections. Mr. Walther explained that the home occupation rules are listed in each residential zoning district under the accessory uses that are allowed in the district. This makes the rules easier to find for residents when viewing the uses allowed in the district they live in. Commissioner Robertson asked about the accessory building section where it discusses attached and detached accessory buildings and clarified that an attached accessory building would include an attached garage. Mr. Walther responded in the affirmative. Chair Eckholm opened the public hearing. As no one was present wishing to speak, the Chair closed the public hearing. Commissioner Kraft commented that she can buy the argument on the suggested exclusions for home occupations as those uses already are required to be a certain distance away from residential. It would seem counterintuitive to then allow them to be a home occupation. Commissioner Roberts said he agrees with Commissioner Johnston-Madison, that the ordinance needs to be relooked at. Having issues with how the ordinance is and adding to it does not help it, nor does it seem necessary. Commissioner Peilen said some of the proposals could have a negative impact on people’s ability to be successful in a home-based business. She offered a motion to strike the rule that says, “Space within the dwelling devoted to the home occupation does not exceed one room or 10 percent of the floor area whichever is greater.” The chair said the motion is on the table and asked if anyone would second. There was no second on the motion. Mr. Walther added that the purpose behind having a restriction on the amount of space in the home that is used for the home occupation is to get at the heart of this as an accessory use. It is common to find this rule in an ordinance like this throughout the country, whether 10% is the right number is another question. Commissioner Peilen responded that what makes the use incidental is the frequency. Commissioner Carper commented that we need something that will restrict but doesn’t leave the door open for abuse. City council meeting of June 17, 2019 (Item No. 4v) Page 4 Title: Planning commission meeting minutes April 3, 2019 Commissioner Peilen stated there is never going to be a perfect ordinance. Someone can always find a way around one if they want to and felt this will do more harm than good. She shared a hypothetical example when using more than one room or 10% of a house may be needed at times. She stated she is open to redefining the amount of space. Commissioner Robertson said he believes there should be a percentage and 10% seems too low, but that it also should be noticeably less than 50% because we do want it to be an accessory use. The ordinance needs to be reworked and he does not want to approve anything to move ahead without doing so. Commissioner Peilen withdrew her previous motion. Commissioner Carper responded that the commissioners were brought the ordinance solely look at firearm sales in the home and have discovered that there’s other issues in terms of appropriate restriction within the ordinance. It’s important this ordinance not go through and to start immediately convening study sessions to work on redoing the ordinance. Commissioner Johnston-Madison said if they are to consider adding the five categories she is against it. Commissioner Kraft added that a lot of the issues everyone seems to have with this ordinance are already in effect today and having everyone vote for this or against it doesn’t change those items. It’s something everyone should be considering while voting tonight. Commissioner Robertson made a motion to not approve these changes to the zoning code. Commissioner Johnston- Madison seconded the motion. Commissioner Peilen said she also supports the motion, but she comes from a different place because she would like to support the restriction of firearm sales. She is tempted to vote for it, but cannot support the overall proposal. Chair Eckholm said he also supports the firearm restrictions as written as well as the other four businesses, but the topic has revealed deeper issues with this ordinance that need to be addressed that might not ever be addressed if we just pass it as written. Commissioner Carper said if we were to prevent firearm sales under this ordinance it wouldn’t make any difference in terms of gun ownership to people who live in St. Louis Park, Minneapolis, Minnesota and the United States. He continued his response by saying it doesn’t cut off a supply of guns to criminals or anyone else and if we were to add another gun seller to the city it wouldn’t make a big difference either due to how well regulated they are. City council meeting of June 17, 2019 (Item No. 4v) Page 5 Title: Planning commission meeting minutes April 3, 2019 Commissioner Robertson presented the motion again, to not approve the changes to the zoning code, and the motion passed on a vote of 4-1-1 (Commissioner Kraft opposed, Chair Eckholm abstained). 4. Other Business: None 5. Communications: Mr. Walther reminded commissioners that on Monday, April 8th there would be a joint study session with City Council to discuss two items on their agenda. One is the Ground- Floor Commercial Transparency Requirements. The other is the 2019 Work Plan. The Commission’s items should begin around 7:30 p.m. though the meeting starts at 6:30p.m. Mr. Walther said there is a study session immediately following the regular meeting tonight, to discuss multiple zoning map amendments related to the comprehensive plan land use changes that have been approved by the City Council. There are about one hundred ten properties in the community that were re-guided for a different future land use. 6. Adjournment The meeting adjourned at 6:47 p.m. and was followed by a study session. STUDY SESSION 1. Comprehensive plan related zoning map amendments Ms. Kramer summarized the comprehensive plan and explained that the re-guiding of the parcels resulted in about 83 of the properties with a mismatch between the new land use guidance and the existing zoning. Ms. Kramer and the Commissioners discussed options on the best strategy to make affected property owners and neighbors aware of the comprehensive rezoning process. Staff proposed an open house-style meeting to answer questions form residents and property owners . Advertising for the open house would be mailed to all properties within 350 feet of a parcel that is proposed to be rezoned and through the City’s social media. By hosting this open house, staff hope to gauge interest in the future public hearing with the Planning Commission. Commissioners agreed on staff hosting an open house for the public. The meeting is planned for May and the public hearing would occur sometime in June. City council meeting of June 17, 2019 (Item No. 4v) Page 6 Title: Planning commission meeting minutes April 3, 2019 Ms. Kramer reviewed the zoning map and the proposed zoning changes. Mr. Walther and commissioners discussed a potential transit oriented development (TOD) zoning district that is needed as a result of the new land use guidance. Architectural standards, housing density, and inclusionary housing requirements were included in the discussion. The commission agreed that until a TOD district is established, staff should rezone parcels guided for TOD to one of the city’s current zoning district categories, such as mixed use, business park, office, high density residential or general commercial. The study session adjourned at 7:52 p.m. Meeting: City council Meeting date: June 17, 2019 Minutes: 4w UNOFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA APRIL 17, 2019 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Joe Tatalovich; Lisa Peilen; Carl Robertson; Alanna Franklin (youth member); Matt Eckholm; Lynne Carper; Claudia Johnston-Madison; Jessica Kraft MEMBERS ABSENT: None. STAFF PRESENT: Sean Walther; Jennifer Monson; Jacquelyn Kramer 1. Call to Order – Roll Call 2. Approval of Minutes: March 20, 2019 and April 17, 2019 Commissioner Robertson made a motion to approve the minutes. Commissioner Carper seconded the motion, and the motion passed on a vote of 7-0. 3. Public Hearings A. Mixed use zoning ordinance Applicant: City of St. Louis Park Case Nos: 19-08-ZA Jennifer Monson, Planner, presented the staff report. The proposed amendments are for the mixed use zoning district and explained that several of the parcels are currently guided for mixed use in the city. Commissioner Peilen asked for more detail on exactly what a glazed transom is and why it is encouraged. Ms. Monson responded that a glazed transom is a window above a door or window, to add visual interest, daylight to internal spaces and pedestrian activity to the street. Commissioner Carper asked for more detail regarding the inclusionary commercial policy. Mr. Walther said the Economic Development Coordinator is looking into the details to effectively administer the ordinance. Commissioner Carper asked a question regarding the 20 foot wide pedestrian connection through parking lots, and asked for other examples in the city. City council meeting of June 17, 2019 (Item No. 4w) Page 2 Title: Planning commission meeting minutes April 17, 2019 Ms. Monson said the language is taken from another portion of the code, and a good example where this was applied would be the renovations to the Shoppes at Knollwood. Chair Eckholm sited the sidewalks located at the Highway 7 Target, and the purpose of them is to provide a safer route through a large parking lot to get to the store. Commissioner Robertson commented that he took issue with the reference to ensuring high quality architecture design. He stated it is not something the commission can ensure. He suggested using the word ‘promote’ instead. Commissioner Robertson stated the performance standards should be revised to clarify that residential uses are allowed, but not required, in a mixed use building. It could have retail uses on the first floor with offices uses above.. Commissioner Robertson discussed the conditions for private entertainment uses. Ms. Monson said private indoor entertainment was prohibited in buildings with residential uses due to fitness equipment vibration and noise. Commissioner Johnston-Madison agreed with Commissioner Robertson that the conditions should be amended to not prohibit all private indoor entertainment with residential uses. Commissioner Carper asked for clarifications regarding conditions for hotel and motel uses. Ms. Monson said permitted accessory uses are allowed on 25% of the building frontage and the other 75% have to be non-residential active uses. A quarter of the ground floor building frontage could be the hotel lobby or entrance. She said the rooms for a hotel or motel are not allowed to be along the front ground floor of the building. She said she would clarify the language in the code. Commissioner Carper asked about the transparency description and how we go about determining what high transparency and low reflecting is. Starbucks was given as an example of the window transparency and how difficult it can be to see in. How are we able to define it so everyone is following the same rule and go out and define the ordinance. Ms. Monson said since the planning commission and city council are still discussing window transparency throughout the city, we can delete the definition and all references to transparency in the mixed-use district, and reference whatever is adopted for the rest of the zoning ordinance. Chair Eckholm opened the public hearing and then closed the public hearing as no one was present to speak. Chair Eckholm asked if the commission had any amendments or motions. City council meeting of June 17, 2019 (Item No. 4w) Page 3 Title: Planning commission meeting minutes April 17, 2019 Commissioner Robertson motioned to strike the transparency section until it can be discussed further, which would also include the definition of transparency. Commissioner Carper seconded the motion. Commissioner Kraft asked if the mixed use district will reference the proposed transparency ordinance still being review by the commission and city council. Ms. Monson responded that the mixed use district references all other required portions of the zoning code when rules are not specified in the district. Commissioners voted and the motion passed on a vote of 7-0. Commissioner Robertson made a motion to remove conditions 1 and 3under private indoor entertainment. Commissioner Carper seconded the motion, and the motion passed on a vote of 7-0. Commissioner Carper made a motion to remove the discussion on inclusionary commercial. Commissioner Kraft seconded the motion. Commissioner Robertson said he believes this to be an important enough provision to maintain, even if it needs later refinement, and that it would help start the discussion with developers. Chair Eckholm agreed with Commissioner Robertson. Commissioner Carper said after hearing commissioners’ arguments, he agreed and withdrew his motion, and Commissioner Kraft agreed to withdraw her second to the motion. Commissioner Robertson stated that 80% class I materials is too high of a minimum and asked for thoughts from the other Commissioners. Chair Eckholm said he would prefer to remove the material requirements in the mixed- use district at this time, and instead reference the architectural standards used elsewhere in the zoning code, because the planning commission will be working on an ordinance updating material requirements throughout the city. Commissioner Kraft agreed. Commissioner Robertson made a motion to strike the requirements for 80% class I materials. Commissioner Kraft seconded the motion. Commissioner Carper asked if striking this will create problems later and asked Mr. Walther for his opinion. Mr. Walther said it would defer to the existing class materials contained elsewhere in the zoning code and should not cause any problems. City council meeting of June 17, 2019 (Item No. 4w) Page 4 Title: Planning commission meeting minutes April 17, 2019 The motion passed on a 7-0 vote. Commissioner Robertson made a motion to replace the word ensure with promote and to delete the second promote in the purpose section regarding high quality architectural design. Commissioner Johnston-Madison seconded the motion, and the motion passed on a vote of 7-0. Commissioner Robertson made a motion to recommend approval of the ordinance with the changes that have been made. Commissioner Peilen seconded the motion, and the motion passed on a vote of 7-0. 4. Other Business Commissioner Carper followed up with Mr. Walther about the student member of the Commission being able to vote. Mr. Walther said he followed up with the City’s attorney and the conversation broadened. The city will be looking at this issue and how it applies to student members on all the boards and commissions. Mr. Walther said administration is looking to hire someone on a short-term basis that will be working on youth specific opportunities throughout the community and this can be an item they could focus on. Because of this we think it’s best to hold off on this until the staff person is hired to review this for all commissions. 5. Communications: Mr. Walther stated that following there will be a study session on Accessory Dwelling units. Mr. Walther said that the next meeting on May 1 will be a Public Hearing for a temporary amendment for food trucks and mobile uses, with a possible study session item. Mr. Walther stated that City Council approved the first reading of an ordinance amendment to chapter 2 of the ordinance / city code, which is appointing Planning Commissioners as the members of the Board of Zoning Appeals. The second reading will be scheduled for May 6 and effective by the end of May. 6. Adjournment The meeting was adjourned at 6:55 p.m. City council meeting of June 17, 2019 (Item No. 4w) Page 5 Title: Planning commission meeting minutes April 17, 2019 STUDY SESSION 1. Accessory Dwelling Units (ADU) Staff and commissioners went over the topics and goals for the night which included; ADU ordinance policy, what the city council wants to see and what the Planning Commission wants. City Council gave a mandate to look into ADU’s as referred in the comp plan and one of the goals for city council is to have as many eligible properties have access to the ADU ordinance. Ms. Kramer went over the results of the ADU survey that was sent out before the meeting with the commissioners and discussed as needed as brought up. And prepare any questions that come up during discussion for staff to look further into. The topic of vacation rentals such as Air BnB and VRBO was brought up as something that will need to be addressed if the push for ADU’s continues because of the popularity throughout the states. The study session commenced at 8:00 p.m. Meeting: City council Meeting date: June 17, 2019 Action agenda item: 8a Executive summary Title: Oak Park Village Apartments – private activity revenue bonds Recommended action: Motion to adopt Resolution providing preliminary approval to the issuance of multifamily housing revenue obligations and call for a public hearing. Policy consideration: Is the City Council willing to issue private activity revenue bonds for the Oak Park Village Apartment project? Summary: : Oak Park Housing Partners, LP, a Minnesota limited partnership, whose general partner is Oak Park Housing Management, LLC, a Minnesota limited liability company, or an affiliate (the “Borrower”), intends to acquire, construct, rehabilitate, and equip an approximately 100-unit existing multifamily rental housing facility and facilities functionally related and subordinate thereto located at 7267 Oak Park Village Drive in the City of St. Louis Park (the “City”) known as Oak Park Village Apartments (the “Project”) for occupancy by persons of low and moderate income. The owner is requesting that the bonds (private activity bonds) be issued for an approximately two year term (bridge financing). The owner will assume the existing Section 8 contract. Permanent financing for the project will be a FHA insured mortgage loan. The bonds will be collateralized by U.S. Treasury securities and cash. It is expected that the bonds will be rated AA+ by Standard and Poor’s. Upon closing the owner plans to renew the Section 8 contact for 20 years. The Preliminary Resolution is necessary for an application to be submitted to the State for housing allocation in order to issue bonds for the Oak Park Village Apartments project. If council adopts the resolution a public hearing will be scheduled at a future meeting. Financial or budget considerations: The bonds will not impact the City’s debt capacity, does not constitute a general or moral obligation of the City, and will not be secured by the taxing powers of the City or any assets or property of the City. Per the City’s private activity revenue bond policy VITUS will pay an administration fee in the amount of 1% of the outstanding principal of the bonds. The Admin fee is currently estimated at $160,000 based on a $16,000,000 bond issue. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Resolution Kennedy and Graven attorney letter Oak Park Village Apartments executive summary Prepared by: Tim Simon, Chief Financial Officer Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 8a) Page 2 Title: Oak Park Village Apartments – private activity revenue bonds Resolution No. 19-____ Resolution providing preliminary approval to the issuance of multifamily housing revenue obligations under Minnesota Statutes, Chapters 462C and 474A, as amended, and taking other actions in connection therewith Be it resolved by the City Council (the “City Council”) of the City of St. Louis Park, Minnesota (the “City”), as follows: Section 1. Recitals. 1.01. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the “Housing Act”), the City is authorized to carry out the public purposes described in the Housing Act by providing for the issuance of revenue bonds to provide funds to finance multifamily housing developments. 1.02. Oak Park Housing Partners, LP, a Minnesota limited partnership, whose general partner is Oak Park Housing Management, LLC, a Minnesota limited liability company, or an affiliate (the “Borrower”), has proposed to acquire, construct, rehabilitate, and equip an approximately 100-unit existing multifamily rental housing facility and facilities functionally related and subordinate thereto located at 7267 Oak Park Village Drive in the City known as Oak Park Village Apartments (the “Project”) for occupancy by persons of low and moderate income. 1.03. The Borrower is requesting that the City issue conduit revenue obligations, in one or more series, as taxable or tax-exempt obligations (the “Bonds”), in the approximate principal amount of $16,000,000, in order to (i) finance the Project; (ii) fund any required reserve funds; (iii) finance capitalized interest during the construction of the Project; and (iv) pay the costs of issuing the Bonds. 1.04. As a condition to the issuance of such revenue bonds, the City must prepare and adopt a housing program providing the information required by Section 462C.03, subdivision 1a of the Housing Act (the “Housing Program”). The Council must also grant preliminary approval of the issuance of revenue bonds to finance the multifamily rental housing development referred to in the Housing Program. 1.05. Under Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), prior to the issuance of the Bonds, the City Council must conduct a public hearing after posting notice of such public hearing on the City’s website at least seven (7) days before the hearing. Under Section 462C.04, subdivision 2 of the Housing Act, a public hearing must be held on the Housing Program after one publication of notice in a newspaper circulating generally in the City at least fifteen (15) days before the hearing. 1.06. Pursuant to Section 146 of the Code, the Bonds must receive an allocation of the bonding authority of the State of Minnesota. An application for such an allocation must be made pursuant to the requirements of Minnesota Statutes, Chapter 474A, as amended (the City council meeting of June 17, 2019 (Item No. 8a) Page 3 Title: Oak Park Village Apartments – private activity revenue bonds “Allocation Act”). The City Council must grant preliminary approval to the issuance of the Bonds to finance the Project and authorize the submission of an application to the office of Minnesota Management & Budget for an allocation of bonding authority with respect to the Bonds to finance the Project. Section 2. Preliminary Findings. Based on representations made by the Borrower to the City to date, the City Council hereby makes the following preliminary findings, determinations, and declarations: (a) The Bonds will finance a multifamily housing development designed and intended to be used for rental occupancy. (b) The proceeds of the Bonds will be loaned to the Borrower and the proceeds thereof, along with other available funds, will be used to finance the Project, finance capitalized interest during the construction of the Project, fund required reserve funds, and pay costs of issuance of the Bonds. The City will enter into one or more loan agreements (or other revenue agreement) with the Borrower requiring loan repayments from the Borrower in amounts sufficient to repay the loan of the proceeds of the Bonds when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. (c) In preliminarily authorizing the issuance of the Bonds, the City’s purpose is and the effect thereof will be to promote the public welfare of the City and its residents by retaining and improving multifamily housing developments and otherwise furthering the purposes and policies of the Housing Act. (d) The Bonds will be special, limited obligations of the City payable solely from the revenues pledged to the payment thereof, will not be a general or moral obligation of the City, and will not be secured by or payable from revenues derived from any exercise of the taxing powers of the City. Section 3. Submission of an Application for an Allocation of Bonding Authority. The City Council hereby authorizes the submission of an application for allocation of bonding authority with respect to the Bonds in the approximate principal amount of $16,000,000 pursuant to Section 146 of the Code and the Allocation Act in accordance with the requirements of the Allocation Act. City staff and Kennedy & Graven, Chartered, acting as bond counsel to the City (“Bond Counsel”), shall take all actions, in cooperation with the Borrower, as are necessary to submit an application for an allocation of bonding authority to the office of Minnesota Management & Budget. Section 4. Public Hearing. The City Council shall meet at a future date to be determined by City staff, to conduct a public hearing on the Housing Program, the Project, and the issuance of the Bonds by the City. Notice of such hearing (the “Public Notice”) will be published and/or posted as required by Section 462C.04, subdivision 2 of the Housing Act and Section 147(f) of the Code. Bond Counsel is hereby authorized and directed to publish the Public Notice, in substantially the form attached hereto as EXHIBIT A, in the Sun-Sailor, the official newspaper of the City, and in the Star Tribune, a newspaper of general circulation in the City, at least fifteen (15) days before the meeting of the City Council at which the public hearing will take City council meeting of June 17, 2019 (Item No. 8a) Page 4 Title: Oak Park Village Apartments – private activity revenue bonds place. City staff is authorized and directed to post the Public Notice, in substantially the form attached hereto as EXHIBIT A, on the City’s website at least seven (7) days before the meeting of the City Council at which the public hearing will take place. At the public hearing reasonable opportunity will be provided for interested individuals to express their views, both orally and in writing, on the Project, the Housing Program, and the proposed issuance of the Bonds. Section 5. Housing Program. Bond Counsel shall prepare and submit to the City a draft Housing Program to authorize the issuance by the City of up to $16,000,000 in conduit revenue bonds to finance the acquisition, construction, rehabilitation and equipping of the Project by the Borrower. Bond Counsel is authorized and directed to submit, on behalf of the City, the Housing Program to Metropolitan Council for review and comment pursuant to Section 462C.04, subdivision 2 of the Housing Act. Section 6. Preliminary Approval. The City Council hereby provides preliminary approval to the issuance of the Bonds in the estimated principal amount not to exceed $16,000,000, subject to: (i) a public hearing as required by the Housing Act and Section 147(f) of the Code; (ii) final approval following the preparation of bond documents; (iii) receipt of an allocation of bonding authority from the office of Minnesota Management & Budget; and (iv) final determination by the City Council that the financing of the Project and the issuance of the Bonds are in the best interests of the City. Section 7. Reimbursement of Costs under the Code. 7.01. The United States Department of the Treasury has promulgated regulations governing the use of the proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City or the Borrower for project expenditures paid prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the “Regulations”) require that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds occur within eighteen (18) months after the later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three (3) years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the Bonds. 7.02. To the extent any portion of the proceeds of the Bonds will be applied to expenditures with respect to the Project, the City reasonably expects to reimburse the Borrower for the expenditures made for costs of the Project from the proceeds of the Bonds after the date of payment of all or a portion of such expenditures. All reimbursed expenditures shall be capital expenditures, costs of issuance of the Bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations and also qualifying expenditures under the Housing Act. Based on representations by the Borrower, other than (i) expenditures to be paid or reimbursed from sources other than the Bonds, (ii) expenditures permitted to be reimbursed under prior regulations pursuant to the transitional provision contained in Section 1.150- 2(j)(2)(i)(B) of the Regulations, (iii) expenditures constituting preliminary expenditures within City council meeting of June 17, 2019 (Item No. 8a) Page 5 Title: Oak Park Village Apartments – private activity revenue bonds the meaning of Section 1.150-2(f)(2) of the Regulations, or (iv) expenditures in a “de minimis” amount (as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures with respect to the Project to be reimbursed with the proceeds of the Bonds have been made by the Borrower more than sixty (60) days before the date of adoption of this resolution of the City. 7.03. Based on representations by the Borrower, as of the date hereof, there are no funds of the Borrower reserved, allocated on a long term-basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Project to be financed from proceeds of the Bonds, other than pursuant to the issuance of the Bonds. This resolution, therefore, is determined to be consistent with the budgetary and financial circumstances of the Borrower as they exist or are reasonably foreseeable on the date hereof. Section 8. Costs. The Borrower will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Bonds are issued. Section 9. Commitment Conditional. The adoption of this resolution does not constitute a guaranty or firm commitment that the City will issue the Bonds as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds, or issue the Bonds in an amount less than the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or to issue the Bonds in an amount less than the amount referred to in Section 6 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Section 10. Effective Date. This resolution shall be in full force and effect from and after its passage. The motion for the adoption of the foregoing resolution was duly seconded by City Council Member ____________________, and, after full discussion thereof and upon a vote being taken thereon, the following City Council Members voted in favor thereof: ____________________. And the following City Council Members voted in opposition: ______________________ Reviewed for Administration: Adopted by the City Council June 17, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Offices in Minneapolis Saint Paul St. Cloud 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 telephone (612) 337-9310 fax www.kennedy-graven.com Affirmative Action, Equal Opportunity Employer JULIE A. EDDINGTON Attorney at Law Direct Dial (612) 337-9213 Email: jeddington@kennedy-graven.com May 28, 2019 Tim Simon, Chief Financial Officer City of St. Louis Park 5005 Minnetonka Boulevard St. Louis Park, MN 55416-2216 Re: Resolution giving preliminary approval to obtain housing allocation and calling a public hearing on the proposed issuance of conduit revenue bonds by the City of St. Louis Park for the benefit of Oak Park Housing Partners, LP Dear Tim, Oak Park Housing Partners, LP, a Minnesota limited partnership, whose general partner is Oak Park Housing Management, LLC, a Minnesota limited liability company, or an affiliate (the “Borrower”), intends to acquire, construct, rehabilitate, and equip an approximately 100-unit existing multifamily rental housing facility and facilities functionally related and subordinate thereto located at 7267 Oak Park Village Drive in the City of St. Louis Park (the “City”) known as Oak Park Village Apartments (the “Project”) for occupancy by persons of low and moderate income. In order to finance the Project, the Borrower is requesting that the City issue one or more series of tax-exempt or taxable conduit revenue bonds (the “Bonds”) in the principal amount not to exceed $16,000,000. Enclosed is a resolution to be considered by the City Council on Monday, June 17, 2019, calling a public hearing on the issuance of the Bonds and taking other actions related to the issuance of the Bonds. The Bonds, if authorized by the City, will be issued in one or more series as housing revenue bonds under Minnesota Statutes, Chapter 462C, as amended (the “Act”). In accordance with the Act, the City will be required to conduct a public hearing on the issuance of the Bonds and the approval of a housing program. Additionally, Section 146 of the Internal Revenue Code of 1986, as amended (the “Code”), requires that the Bonds receive an allocation of bonding authority of the State of Minnesota (the “State”). An application for this allocation must be made pursuant to Minnesota Statutes, Chapter 474A, as amended (the “Allocation Act”). The enclosed resolution authorizes the City to take actions to prepare the housing program and an application for allocation in accordance with Section 146 of the Code and the Allocation Act. My office will coordinate the process for application for allocation from the State’s unified pool in late July. If the City Council adopts the enclosed resolution, the City Council will be asked to conduct the public hearing required under the Act and the Code at a future City Council meeting. Following the public hearing, the City Council will be asked to consider a resolution approving the housing program, providing City council meeting of June 17, 2019 (Item No. 8a) Title: Oak Park Village Apartments – private activity revenue bonds Page 6 final approval to the issuance of the Bonds, and authorizing the execution of documents in connection with the Bonds. If issued, the Bonds will be secured solely by the revenues derived from the loan agreement to be executed by the Borrower and from other security provided by the Borrower. The Bonds will not constitute a general or moral obligation of the City and will not be secured by or payable from any property or assets of the City (other than the interests of the City in the loan agreements) and will not be secured by any taxing power of the City. The Bonds will not be subject to any debt limitation imposed on the City, and the issuance of the Bonds will not have any adverse impact on the credit rating of the City, even in the event that the Borrower encounters financial difficulties with respect to the Project to be financed with the proceeds of the Bonds. The Bonds will not impact the City’s ability to issue its own bank-qualified bonds this year. The Borrower will agree to pay the out-of-pocket expenses of the City with respect to this transaction as well as the City’s administrative fee. Gina Fiorini will be attending the City Council meeting on June 17, 2019 and can answer any questions that may arise during the meeting. Please contact me with any questions you may have prior to the City Council meeting. Sincerely, Julie A. Eddington City council meeting of June 17, 2019 (Item No. 8a) Title: Oak Park Village Apartments – private activity revenue bonds Page 7 div 1r u s Oak Park Village Apartments Executive Summary Oak Park Village Apartments 7267 Oak Park Village Dr St. Louis Park, MN 55426 The Project The Property Oak Park Village is a multifamily apartment community located in St. Louis Park, MN (marked on the map below) which Vitus intends to acquire and rehabilitate. It is important to preserve Oak Park Village as quality, affordable housing. The redevelopment and large-scale improvements will not only benefit the current residents, but the surrounding neighborhood as well. The impact on the neighborhood will be minimal as there is no new construction involved. ,etd s COBBLECREST MINNEHAHA Aquila Park AQUILA The Shoppes /» at Knollwood 'Y TEXA TONKA gey Virginia Court " Apartments Somerset Oaks n 'Oak Park Village Apartment Y Apartments OAK HILL ©? creek Point Apartments Location Map, Oak Park Village Apartments I BRONX PARK BIRCH V s ! ? Minnetonka Blvd U Minnetonka Blvd C g G j SORENSON U St. Louis Park Special Education Program Louisiana Oaks Park D D SOUTH OAK HILL W 36 Micro Center QO ELMWOOD Oak Park Village consists of a 100-unit apartment community comprised of 10 two and three story apartment buildings located on a 6.58-acre lot. The buildings were originally constructed in 1978 and are made up of 27 one-bedroom and 8 two- bedroom garden style apartments and 37 two-bedroom and 28 three-bedroom townhome units. Property amenities include unit amenities include blinds, patio/ balcony, carpeting and vinyl flooring, central heating and air conditioning, and coat closets. Kitchen appliances include a range/oven and refrigerator. Post-renovation amenities will also include dishwashers and microwaves. The Subject's community amenities include a central laundry facility, on-site management, a playground, surface parking, and garage parking. Post-renovation, the Oak Park Village's community amenities will include a walking trail and adult exercise equipment co-located with the children's playground. Oak Park Apartments Page 1 City council meeting of June 17, 2019 (Item No. 8a) Title: Oak Park Village Apartments – private activity revenue bonds Page 8 d v 1rus Of the 100 units, 100 are covered by a HAP contract. At closing, the HAP contract will be renewed for a 20-year term, subject to federal appropriations. The property consists of one parcel of land, adjacent to the Oak Hill Park. The property is served by the 604 bus route, the St. Louis Park Library, St, Louis Park High School, and is a short distance from Cub Foods and Target. Property Photo, Oak Park Village Rehabilitation Plan and G reen Design The rehabilitation budget is approximately $25,000 per unit. The rehabilitation will include improvements to the general site such as windows and siding repairs, condensers to be replaced as needed, unit cabinets to be replaced and redesigned to incorporate microwaves and dishwashers, all plumbing fixtures to be replaced with low-flow fixtures, all lighting fixtures to be replaced with energy efficient fixtures, replace bathroom fans with low energy fans, unit flooring to be replaced as needed, interior painting as needed, replace unit appliances as needed, incorporate outdoor adult exercise equipment co located with the children's playground, inclusion of covered bike racks, water fountains, benches, etc., expansion of walkways on site to create a walking path of at least 0.25 mile for tenant use (will meet handicap accessibility), outdoor gathering area, quarterly gardening classes will be provided, evaluate parking areas for handicap accessibility and resurface and restripe as needed, evaluate exterior site lighting and security features, and evaluation of fire protection system in the apartment building for code (previously retrofitted). With these upgrades, the project will provide housing comparable to (or better than) the quality of other housing in the market area. The rehabilitation will be completed with minor disruption to the residents. Vitus maintains a commitment to environmentally friendly construction and energy efficient housing. To honor this commitment, upgrades will include high efficiency lighting packages, low-E coated windows, ENERGY STAR qualified appliances, and high efficiency plumbing fixtures. Oak Park Apartments Page 2 City council meeting of June 17, 2019 (Item No. 8a) Title: Oak Park Village Apartments – private activity revenue bonds Page 9 div 1ru s Sponsor Vitus' mission is to create positive social impact - one community, one family and one life at a time. As an innovative leader in affordable housing across the nation, Vitus specializes in the preservation of affordable properties in market areas where the need is greatest. With an emphasis on the well-being of its residents, Vitus provides access to healthy choices by offering spaces for physical activity, community gardening, enhanced walkways and stairwells, bicycle storage and a variety of health and wellness programs. These active design elements establish wellness-centered communities that encourage healthy lifestyles. Since 1996, Vitus has developed and/or acquired more than 10,000 units of affordable housing in more than 100 properties, located across 22 states. A combined total of almost 25,000 residents now live in Vitus affordable housing communities across the country. www.vitus.com The company is based in Seattle, Washington with a regional office located in New York. Organizational Entities Project Timing For Additional Information Beneficial title in the project will be held Oak Park Housing Partners, LP, of which the managing general partner will be Oak Park Housing Management, LLC (a Minnesota LLC) and to be determined equity investor will serve as the limited partner. The project developer will be Vitus Development IV, LLC. The property renovation will commence immediately upon the bond closing and will be completed within 12 months thereafter. Michael Volz, Director Development Management (206) 832-1312 Michael.volz@vitus.com Oak Park Apartments Page 3 City council meeting of June 17, 2019 (Item No. 8a) Title: Oak Park Village Apartments – private activity revenue bonds Page 10 Meeting: City council Meeting date: June 17, 2019 Action agenda item: 8b Executive summary Title: Bridgewater Bank Corporate Center – planned unit development major amendment Recommended action: Motion to approve first reading of an Ordinance amending Section 36- 268-PUD 13 of the zoning code relating to the planned unit development (PUD) major amendment for the Bridgewater Bank Corporate Center and to set the second reading for July 15, 2019. Policy consideration: Does the city council support the proposed major amendment for PUD 13 to allow for a larger restaurant in the Bridgewater Bank Corporate Center? Summary: Peter Brodd representing Bridgewater Bank/Bridgewater Bancshares, LLC is seeking a PUD major amendment at 4400 Excelsior Blvd. The applicant requests these changes to increase the size of an allowed restaurant from 4,000 square feet to 5,500 square feet on the ground floor of the new Bridgewater Bank Corporate Center. No alterations to the building footprint are proposed. Three larger windows are proposed on the east side of the building. Traffic and parking studies have been updated to reflect the final building design and the proposed 5,500 square feet higher end restaurant. Due to overall building refinements, the studies show less parking demand and less traffic generated than the original approvals, even with the larger restaurant space. In addition, Bridgewater Bank will revise their travel demand management plan to include valet parking in the lower level secure parking area during evening and weekend hours if parking demand is high. Planning commission held a public hearing on June 5, 2019, and one person asked for clarification on entrances and exits to the site. The commission voted unanimously to recommend approval of the major amendment. Financial or budget considerations: None. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: • Draft ordinance • Interior floor plans: approved and proposed • Link to Updated traffic and parking study (SRF Consulting). This report is also available for review in the Community Development Department during regular business hours. Prepared by: Jennifer Monson, Planner Reviewed by: Sean Walther, Planning and Zoning Supervisor Karen Barton, Community Development Director Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 8b) Page 2 Title: Bridgewater Bank Corporate Center – planned unit development major amendment Ordinance No. ___-19 Ordinance amending Section 36-268-PUD 13 The City of St. Louis Park does ordain: Section 1. The St. Louis Park Ordinance Code, Section 36-268-PUD 13 is hereby amended by deleting strikethrough text. Section breaks are represented by ***. Section 36-268-PUD 13. ******* (c) Permitted with Conditions (3) Restaurants with or without intoxicating liquor license. The conditions are as follows: a. A maximum of 4,000 gross square feet shall be used for restaurants. This use shall be permitted as part of a larger development which contains at least one other principal use or as part of a PUD. b. A Travel Demand Management Plan shall be implemented and shall provide ongoing mitigation while a restaurant use is present. c. These uses shall not result in any exterior building modifications, including truck docks or freestanding signage, overnight truck parking or similar features. d. If there is a wine, beer, and/or intoxicating liquor license, the Restaurant uses shall be located a minimum of 100 feet from any parcel that is zoned residential and used or subdivided for residential or has an occupied institutional building including but not limited to a school, religious institution or community center. e. In vehicle sales is prohibited. Section 2. This ordinance shall take effect (August 9, 2019) Reviewed for administration: Adopted by the City Council (July 15, 2019) Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Approved as to form and execution: Melissa Kennedy, City Clerk Soren Mattick, City Attorney First Reading June 17, 2019 Second Reading July 15, 2019 Date of Publication July 25, 2019 Date Ordinance takes effect August 9, 2019 City council meeting of June 17, 2019 (Item No. 8b) Page 3 Title: Bridgewater Bank Corporate Center – planned unit development major amendment Approved Plans City council meeting of June 17, 2019 (Item No. 8b) Page 4 Title: Bridgewater Bank Corporate Center – planned unit development major amendment Proposed Plans 5,500 square feet Meeting: City council Meeting date: June 17, 2019 Action agenda item: 8c Executive summary Title: Zoning ordinance regarding mobile uses Recommended action: Motion to approve first reading of an Ordinance amending Chapter 36 of the St. Louis Park Code of Ordinances regarding mobile uses, and set the second reading for July 15, 2019. Policy consideration: Does city council support the changes to the mobile use regulations to allow the “mobile use – food” to include grocery sales, and to allow mobile uses to locate at multiple-family residences. Summary: The city received an application to allow the Twin Cities Mobile Market to locate at Hamilton House. The Twin Cities Mobile Market is pictured and explained in the attachment. City staff delayed approval of the application because the city code does not allow mobile uses to sell groceries, additionally mobile uses are not allowed at residential properties. The city will act on the application pending the results of the proposed ordinance. The proposed zoning change, if approved, would allow mobile uses at any property zoned residential and not occupied by a single or two-family dwelling. The amendment would also allow any type of mobile use that involves food, such as a food truck or grocery store. The benefit of the changes is that it increases accessibility to temporary services, food and activities to multiple-family residential locations. Additionally, it opens up opportunities for community building activities for residents in multiple-family neighborhoods. The planning commission held a public hearing on June 5, 2019. One comment was received in favor of the ordinance. The commission unanimously recommended the council approve the ordinance. Financial or budget considerations: None. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion Draft ordinance Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Sean Walther, Planning and Zoning Supervisor Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager City council meeting of June 17, 2019 (Item No. 8c) Page 2 Title: Zoning ordinance regarding mobile uses Discussion Background: The Amherst H. Wilder Foundation operates the Twin Cities Mobile Market. It is a MTC bus that was converted to a mobile grocery store. The following description is taken from their website (www.wilder.org/what-we-offer/twin-cities-mobile-market). Anyone can shop at the Twin Cities Mobile Market. This market on a bus brings affordable and fresh fruits, vegetables, meat, dairy, grains and other groceries directly into neighborhoods around Saint Paul and Minneapolis that don’t have easy access to full-service supermarkets, grocery stores or food shelves. A program of the Wilder Foundation, the Twin Cities Mobile Market is made possible with the support and generosity of volunteers, community partners and donors. The mobile market would like to add the Hamilton House to their schedule this summer. The proposed Hamilton House schedule is not posted yet, but their typical schedule is a one hour stop every couple weeks. Once approved, the St. Louis Park location and schedule will be added to their website. Next steps: If city council approves the first reading of the ordinance, the second reading will be scheduled to be held on July 15, 2019. City council meeting of June 17, 2019 (Item No. 8c) Page 3 Title: Zoning ordinance regarding mobile uses Ordinance No. ___-19 Ordinance amending Chapter 36 of the St. Louis Park Code of Ordinances regarding mobile uses The City of St. Louis Park does ordain: Section 1. Chapter 36 of the St. Louis Park City Code is hereby amended by adding underscored text and deleting the strikethrough text. Section breaks are represented by ***. Sec 36-142. Descriptions. *** (5)Mobile Use-Food means a vehicle or cart used to prepare and serve food and/or beverages in individual portions in a ready-to-consume state. Mobile Use-Food does not include the sale of groceries or vegetables and fruits not prepared for immediate consumption at the vehicle. sell food and/or beverages to the consumer. It may or may not involve preparation of the food or beverage inside the vehicle. *** Sec. 36-82. Temporary uses. *** (b)Authorized temporary uses. A structure or land in any use district may be used for one or more of the following temporary uses if the use complies with the conditions stated in this chapter: *** (10)Mobile Use. Mobile Uses are permitted with the following conditions: *** c.The vehicle is not permitted on property that is zoned residential and used as a single or two-family residential dwelling. Section 2. This ordinance shall take effect fifteen days after its publication. First Reading June 17, 2019 Second Reading July 15, 2019 Date of Publication July 25, 2019 Date Ordinance takes effect August 9, 2019 City council meeting of June 17, 2019 (Item No. 8c) Page 4 Title: Zoning ordinance regarding mobile uses Reviewed for administration: Adopted by the City Council (July 15, 2019) Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Approved as to form and execution: Melissa Kennedy, City Clerk Soren Mattick, City Attorney