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HomeMy WebLinkAbout2019/07/22 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA JULY 22, 2019 5:30 p.m. CLOSED EXECUTIVE SESSION – Community room Discussion items 1. 5:30 p.m. Discuss potential litigation and legal strategy regarding the T.H. 100/C.R. 3 solvent plume* (Verbal) * This meeting is closed as permitted by the attorney-client privilege (section 13D.05, subdivision 3(b)). 6:20 p.m. SPECIAL ECONOMIC DEVELOPMENT AUTHORITY – Community room 1.Call to order 2.Roll call 3.Approval of minutes 3a. EDA meeting minutes June 17, 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 May 24 through July 5, 2019. 4b. Adopt EDA Resolution approving the purchase agreement between the EDA and Thomas C. Evans and Constance G. Evans for 5643 Minnetonka Boulevard and authorize the President and Executive Director to execute the documents necessary to complete the real estate transaction. 4c. Adopt EDA Resolution finding the building at 3200 Lynn Ave S structurally substandard to a degree requiring removal. 6:30 p.m. STUDY SESSION – Community room Discussion items 1. 6:30 p.m. Future study session agenda planning 2. 6:35 p.m. Reilly Site Amended Consent Decree Update 3. 6:55 p.m. 2020 budget – public safety overview 8:25 p.m. Communications/updates (verbal) 8:30 p.m. Adjourn Written reports 4. June 2019 monthly financial report 5. Second quarter investment report (April – June 2019) 6. Housing Authority (HA) Board 2019 annual work plan 7. Food security and access study update 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: Special economic development authority Meeting date: July 22, 2019 Minutes: 3a Unofficial minutes Economic development authority St. Louis Park, Minnesota June 17, 2019 1.Call to order President Hallfin called the meeting to order at 7:20 p.m. Commissioners present: President Steve Hallfin, Tim Brausen, Rachel Harris, Anne Mavity, and Margaret Rog. Commissioners absent: Thom Miller and Jake Spano Staff present: Executive Director (Mr. Harmening), Economic Development Coordinator (Mr. Hunt), Community Development Director (Ms. Barton), City Attorney (Mr. Mattick), Deputy City Manager/Human Resources Director (Ms. Deno), CFO (Mr. Simon), Senior Management Analyst (Ms. Carrillo Perez), and Recording Secretary (Ms. Pappas). 2.Roll call 3.Approval of minutes 3a. EDA minutes of May 6, 2019 It was moved by Commissioner Brausen, seconded by Commissioner Mavity, to approve the May 6, 2019 meeting minutes as presented. The motion passed 5-0 (Commissioners Miller and Spano absent). 4.Approval of agenda and items on EDA consent calendar 4a. Accept for filing city disbursement for period of April 27-June 7, 2019. 4b. Adopt EDA Resolution No. 19-05 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. It was moved by Commissioner Mavity, seconded by Commissioner Brausen, to approve the EDA agenda as presented and the items on the consent calendar. The motion passed 5-0 (Commissioners Miller and Spano absent). 5.Reports - None 6.Old Business - None Page 2 Special economic development authority meeting of July 22, 2019 (Item No. 3a) Title: Economic development authority meeting minutes of June 17, 2019 7.New Business 7a. Fifth Amendment to Purchase and Redevelopment Contract with PLACE E- Generation One, LLC. EDA Resolution No. 19-06. Mr. Hunt presented the staff report. He noted the staff report and requirements of a Fifth Amendment in order to extend the project completion dates. Commissioner Brausen stated the developer has had financial challenges, which have continued to be addressed by the developer. He stated substantial progress has been made on the construction, adding he would like to give the project the opportunity to succeed and, therefore, this is the reason for the deadline extension. President Hallfin stated he will be opposed to the Fifth Amendment, adding the city might be missing opportunities for other developers and at this point, he will say no. It was moved by Commissioner Mavity, seconded by Commissioner Brausen, to waive the reading and adopt EDA Resolution No. 19-06, approving Firth Amendment to Purchase and Redevelopment Contract – PLACE E-Generation One, LLC. The motion passed 4-1 (President Hallfin opposed, Commissioners Miller and Spano absent). 8. Communications 9. Adjournment The meeting adjourned at 7:25 p.m. ______________________________________ ______________________________________ Melissa Kennedy, Secretary Steve Hallfin, President Meeting: Special economic development authority Meeting date: July 22, 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 May 24, through July 5, 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: Darla Monson, Senior Accountant Reviewed by: Tim Simon, Chief Financial Officer Approved by: Nancy Deno, Deputy City Manager/HR Director 7/10/2019CITY OF ST LOUIS PARK 10:19:08R55CKS2 LOGIS400V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 6/7/20195/24/2019 - Amount ObjectVendorBU Description 1,418,598.00METRO TRANSIT COMMISSION DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 1,418,598.00 14,764.99MORRIES DEALERSHIP GRANTS SOIL REMEDIATION 14,764.99 7,385.90PARKWAY 25 LLC GRANTS SOIL REMEDIATION 7,385.90 278,410.31PLACEGRANTSGROUND WATER CLEAN UP 278,410.31 Report Totals 1,719,159.20 Special economic development authority meeting of July 22, 2019 (Item No. 4a) Title: Approval of EDA disbursements Page 2 7/10/2019CITY OF ST LOUIS PARK 10:16:49R55CKS2LOGIS400V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 7/5/20196/8/2019 - Amount ObjectVendorBU Description 3,307.05ASAKURA ROBINSON COMPANY INC DEVELOPMENT - EDA G&A PLANNING 3,307.05 4,683.68DERODEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 4,683.68 154.00EHLERS & ASSOCIATES INC ELIOT PARK TIF DIST G&A OTHER CONTRACTUAL SERVICES 153.00WEST END TIF DIST G&A OTHER CONTRACTUAL SERVICES 153.00ELLIPSE ON EXC TIF DIST G&A OTHER CONTRACTUAL SERVICES 153.00CSM TIF DIST G&A OTHER CONTRACTUAL SERVICES 153.00MILL CITY G&A OTHER CONTRACTUAL SERVICES 153.00WOLFE LAKE COMMERCIAL TIF G&A OTHER CONTRACTUAL SERVICES 153.00SHOREHAM TIF DIST G&A OTHER CONTRACTUAL SERVICES 153.00AQUILA COMMONS G & A OTHER CONTRACTUAL SERVICES 1,225.00 580.50GREEN HORIZONS 7015 WALKER-RYNLDS WELDING LAND MAINTENANCE 219.00BELTLINE SWLRT DEVELOPMENT LAND MAINTENANCE 90.00WOODDALE STATION TIF DIST LAND MAINTENANCE 84.00MTKA BLVD PROPERTIES LAND MAINTENANCE 535.50HWY 7 & LOUISIANA LAND MAINTENANCE 1,509.00 6,534.90HOISINGTON KOEGLER GROUP INC DEVELOPMENT - EDA G&A PLANNING 6,534.90 5.00HUNT, GREG DEVELOPMENT - EDA G&A MEETING EXPENSE 191.40DEVELOPMENT - EDA G&A MILEAGE-PERSONAL CAR 196.40 3,850.99KENNEDY & GRAVEN BELTLINE SWLRT DEVELOPMENT LEGAL SERVICES 724.50WEST END TIF DIST G&A LEGAL SERVICES 1,475.00DEVELOPMENT - EDA G&A LEGAL SERVICES 6,050.49 3,000.00LOCKRIDGE GRINDAL NAUEN PLLP DEVELOPMENT - EDA G&A LEGAL SERVICES 3,000.00 666,666.67METRO TRANSIT COMMISSION DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 666,666.67 Special economic development authority meeting of July 22, 2019 (Item No. 4a) Title: Approval of EDA disbursements Page 3 7/10/2019CITY OF ST LOUIS PARK 10:16:49R55CKS2 LOGIS400V 2Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 7/5/20196/8/2019 - Amount ObjectVendorBU Description 218.38SLP NEST DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 218.38 105,636.28ST LOUIS PARK CONV & VISITORS BUREAU CONVENTION & VISITORS BUREAU COST REIMBURSEMENT-CVB 105,636.28 Report Totals 799,027.85 Special economic development authority meeting of July 22, 2019 (Item No. 4a) Title: Approval of EDA disbursements Page 4 Meeting: Special economic development authority Meeting date: July 22, 2019 Consent agenda item: 4b Executive summary Title: Purchase agreement for 5643 Minnetonka Boulevard Recommended action: Motion to adopt EDA Resolution approving the purchase agreement between the EDA and Thomas C. Evans and Constance G. Evans for 5643 Minnetonka Boulevard and authorize the President and Executive Director to execute the documents necessary to complete the real estate transaction. Policy consideration: Does the EDA approve the proposed purchase of 5643 Minnetonka Boulevard? Summary: At the April 8, 2019 study session, the EDA expressed consensus support for acquiring the single family property at 5643 Minnetonka Boulevard. Staff has negotiated a purchase agreement to purchase the property for $230,000. The proposed agreement has been reviewed and approved by the EDA’s legal counsel. Closing will occur by August 30, 2019. Upon acquisition, staff will pursue either a full deconstruction and demolition of the house, allowing for a majority of the materials to be reused, or moving the house to a location outside of St. Louis Park for reuse in its entirety. EDA ownership of the property would allow the city to continue efforts to facilitate and guide redevelopment of these properties and expand the city’s stock of affordable housing. Financial or budget considerations: The $230,000 cost to acquire and remove the subject property is allocated within the 2019 Development Fund budget. The EDA could incur additional costs related to property management before the property is redeveloped. The cost of acquisition and related expenses would be paid for by the Development Fund with the intent to recoup the EDA’s investment from the future sale of the property. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion EDA Resolution Prepared by: Julie Grove, Economic Development Specialist Reviewed by: Greg Hunt, Economic Development Coordinator Karen Barton, Community Development Director Approved by: Nancy Deno, EDA Deputy Executive Director and Deputy City Manager Page 2 Special economic development authority meeting of July 22, 2019 (Item No. 4b) Title: Purchase agreement for 5643 Minnetonka Boulevard Discussion 5643 Minnetonka Boulevard Background: In May 2018 the EDA purchased a foreclosed, single-family property at 5639 Minnetonka Boulevard for the purpose of facilitating redevelopment of the property and potentially the three adjacent properties to the west. The properties are zoned R-4 medium- density multi-family residential. The intent of the acquisition is to facilitate land assemblage that could ultimately be redeveloped with medium density housing and include affordable housing such as row homes or townhomes. Consistent with this goal and per EDA directive, staff continues to pursue the remaining properties as they become available. This past winter, staff was approached by owners of the neighboring property located at 5643 Minnetonka Blvd inquiring if the EDA was interested in purchasing their property. Staff subsequently negotiated a purchase price of $230,000 for the property. The City Assessor examined this value and concurred that the proposed purchase price is within market. Due to the owners health issues staff has agreed to provide flexibility on the possession date and allow the owners to remain on the property after closing for up to 90 days. An Occupancy Agreement has been attached to the purchase agreement stipulating terms of this arrangement. Page 3 Special economic development authority meeting of July 22, 2019 (Item No. 4b) Title: Purchase agreement for 5643 Minnetonka Boulevard St. Louis Park Economic Development Authority Resolution No.19-____ Resolution approving the purchase agreement between the St. Louis Park Economic Development Authority and Thomas C. Evans and Constance G. Evans Be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering Redevelopment Project No. 1 ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. Among the activities to be assisted by the Authority in the Redevelopment Project is acquisition of a single family property to pursue affordable housing goals in the City located at 5639 Minnetonka Boulevard and legally described in Exhibit A attached hereto (“Property”). 1.03. There has been presented before the Board a Purchase Agreement (“Agreement”) setting forth the terms and conditions of the purchase of the Property between the Authority and the Seller of the Property, Thomas C. Evans and Constance G. Evans (“Seller”). The Agreement is attached hereto as Exhibit B. 1.04. The Board has reviewed the Agreement and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Agreement 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 documents 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 Agreement and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. Page 4 Special economic development authority meeting of July 22, 2019 (Item No. 4b) Title: Purchase agreement for 5643 Minnetonka Boulevard Reviewed for Administration: Adopted by the Economic Development Authority July 22, 2019 Thomas K. Harmening, Executive Director Steve Hallfin, President Attest Melissa Kennedy, Secretary Meeting: Special economic development authority Meeting date: July 22, 2019 Consent agenda item: 4c Executive summary Title: Structurally substandard building designation – 3200 Lynn Ave. South Recommended action: Motion to adopt EDA Resolution finding the building at 3200 Lynn Ave S structurally substandard to a degree requiring removal. Policy consideration: Does the EDA find that the vacant industrial building located at 3200 Lynn Ave S is structurally substandard to a degree requiring removal? Summary: The industrial building located at 3200 Lynn Avenue South (“subject property”) was acquired by the Metropolitan Council in 2018 in order to construct the proposed Lynn Ave Extension and backage Road, which will provide access to the future Southwest Light Rail Transit (SWLRT) Beltline Blvd Station Park & Ride. The Metropolitan Council plans to demolish and remove the building later this year. In anticipation of a future redevelopment Tax Increment Financing (TIF) district in this area, LHB was retained to inspect the building. LHB concluded in its June 27, 2019 TIF Analysis Findings Letter to staff that the building on the 3200 Lynn Avenue South property “qualifies as structurally substandard”. In order to preserve the EDA’s ability to include the 3200 Lynn Avenue South property in a future TIF district to facilitate the larger Beltline Blvd Station redevelopment, the EDA must adopt a resolution establishing: (1) the subject property is occupied by a structurally substandard building prior to its demolition and (2) that the EDA may create a future TIF district encompassing the subject property. This action will protect the EDA’s ability to include the subject property in a future redevelopment TIF district for up to three years following demolition of the building. Financial or budget considerations: The Metropolitan Council will demolish and remove the 3200 Lynn Avenue South building per the previously approved Master and Subordinate Funding Agreements with the city. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion EDA Resolution Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Karen Barton, Community Development Director Approved by: Nancy Deno, EDA Deputy Executive Director/Deputy City Manager Page 2 Special economic development authority meeting of July 22, 2019 (Item No. 4c) Title: Structurally substandard building designation – 3200 Lynn Ave. South Discussion Location of subject property within future proposed redevelopment TIF district Page 3 Special economic development authority meeting of July 22, 2019 (Item No. 4c) Title: Structurally substandard building designation – 3200 Lynn Ave. South St. Louis Park Economic Development Authority EDA Resolution No. 19 - ____ Resolution designating a building within Redevelopment Project No. 1 as structurally substandard Be it resolved by the Board of Commissioners ("Board") of the St. Louis Park Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. Under Minnesota Statutes, Section 469.174, subd. 10(d), the Authority is authorized to deem parcels as occupied by structurally substandard buildings despite prior demolition or removal of the buildings, subject to certain terms and conditions as described in this resolution. 1.02. The Authority intends to cause demolition of the building located on the property described in Exhibit A hereto (the “Designated Property”), and may in the future include the Designated Property in a redevelopment or renewal and renovation tax increment financing district as defined in Minnesota Statutes, Sections 469.174, Subd. 10. Section 2. Building Designated Substandard; Other Proceedings. 2.01. The Authority finds that the building on the Designated Property as described in Exhibit A is structurally substandard to a degree requiring substantial renovation or clearance, based upon the analysis of such building by LHB summarized in the TIF ANALYSIS FINDINGS FOR 3200 LYNN, ST. LOUIS PARK, MN, dated June 27, 2019 and on file in City Hall. 2.02. After the date of approval of this resolution, the building on the Designated Property may be demolished or removed by the Authority, or such demolition or removal may be financed by the Authority, or may be undertaken by a developer under a development agreement with the Authority. 2.03. The Authority intends to include the Designated Property in a redevelopment or renewal and renovation tax increment financing district, and to file the request for certification of such district with the Hennepin County auditor within three years after the date of building demolition on the Designated Property. 2.04. Upon filing the request for certification of the new tax increment financing district, the Authority will notify the Hennepin County auditor that the original tax capacity of the Designated Property must be adjusted to reflect the greater of (a) the current net tax capacity of the parcel, or (b) the estimated market value of the parcel for the year in which the building was demolished or removed, but applying class rates for the current year, all in accordance with Minnesota Statutes, Section 469.174, subd. 10(d). Page 4 Special economic development authority meeting of July 22, 2019 (Item No. 4c) Title: Structurally substandard building designation – 3200 Lynn Ave. South 2.05. 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 July 22, 2019 Thomas K. Harmening, Executive Director Steve Hallfin, President Attest: Melissa Kennedy, Secretary Page 5 Special economic development authority meeting of July 22, 2019 (Item No. 4c) Title: Structurally substandard building designation – 3200 Lynn Ave. South Exhibit A Description of Designated Property Property address: 3200 Lynn Street, St. Louis Park, MN PID: 602824120105 Meeting: Study session Meeting date: July 22, 2019 Discussion item: 1 Executive summary Title: Future study session agenda planning Recommended action: The city council and city manager to set the agenda for the regularly scheduled study session on August 12, 2019. Policy consideration: Not applicable. Summary: This report summarizes the proposed agenda for the regularly scheduled study session on August 12, 2019. Also attached to this report is: - Study session discussion topics and timeline -Proposed topics for future study session discussion: o Revisiting our housing setback, FRA, and more to maintain and create more affordable housing- proposed by Councilmembers Miller and Rog Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Tentative agenda – August 12, 2019 Study session discussion topics and timeline Study session topics proposed for future study session discussion Prepared by: Debbie Fischer, Administrative Services Office Assistant Approved by: Tom Harmening, City Manager Study session meeting of July 22, 2019 (Item No. 1) Page 2 Title: Future study session agenda planning August 12, 2019. 6:30 p.m. Study session – Community room Tentative discussion items 1.Future study session agenda planning – Administrative services (5 minutes) 2.Fats, oils, grease and backflow ordinance discussion – Building & Energy/Operations & Recreation Departments (30 minutes) Staff will provide information related the proposed ordinance to deal with fats, oils, grease and backflow prevention. 3.2020 budget – Administrative Services (90 minutes) Staff will be reviewing the 2020 budget and providing information on where things stand from a levy perspective. Communications/meeting check-in – Administrative services (5 minutes) Time for communications between staff and council will be set aside on every study session agenda for the purposes of information sharing. End of meeting: 8:40 p.m. Study session meeting of July 22, 2019 (Item No. 1) Page 3 Title: Future study session agenda planning Study session discussion topics and timeline Discussion topic Comments Date Scheduled C-1 zoning district retail and service use restrictions Discussed on 6/11/18; referred to PC. Discussed 11/26/18; SS report 2/25/19; Discussed 3/11/19 – further discussion requested by council; SS discussion 7/8/19; PC public hearing late Aug. Sept. 2019 Accessory dwelling units/home- based businesses SS discussion 6/10/2019. Referred to planning commission. Staff to prepare ADU ordinance for pc discussion Qtr. 3 2019. Home occupation based businesses pc discussion Qtr. 4 2019 or Qtr. 1 2020 Qtr. 4 2019 and Qtr. 2 2020 Revitalization of Walker Lake area Part of preserving Walker building reports: 8/28/17, 9/25/17, 1/22/18, design study 2/12/18, update 4/23/18, design study update 8/27/18; SS report 2/11/19; SS discussion 5/28/19, planning commission to review ordinances for implementation Qtr. 3 and Qtr. 4 2019 Qtr. 4 2019 Election holiday discussion 3rd Qtr. Crime free ordinance/affordable housing strategies Discussed 5/14/18. 1st reading housing trust fund 10/1/18; Other affordable housing strategies/Crime Free Ordinance – Nov/Dec, 12/10 and 12/17/18 and 1/14/19 council discussion; Certain provisions of crime free ord. suspended; Work group being formed; CFO work group discussed on 3/25/2019; Work group had first meeting in May and two meetings in June. Next meeting is July 24. TBD; Pending workgroup recommendation Quarterly public forums at city council meetings TBD Immigration & supporting families Discussed 8/6 and referred to HRC. HRC held comm. mtg. in Oct. Council/HRC discussion on 12/10; referred back to HRC for refinement of recommendations TBD Discuss and evaluate our public process TBD Easy access to nature, across city, starting with low-income neighborhoods TBD STEP discussion: facilities Discussed on 1/14/19; Tom H, Derek R. and Astein O. toured the Central Community Center and are continuing discussions TBD Westwood Hills Nature Center Access Fund *On hold pending discussion with school district.*On hold SEED’s community greenhouse/ resilient cities initiative *On hold until Food Access and Security study is complete and recommendations have been made.*On hold Study session meeting of July 22, 2019 (Item No. 1) Page 4 Title: Future study session agenda planning Meeting: Study session Meeting date: July 22, 2019 Discussion item: 2 Executive summary Title: Reilly Site Amended Consent Decree Update Recommended action: No action at this time. Policy consideration: Is the council in agreement on moving forward with the amended consent decree? Summary: The city has worked with the Minnesota Pollution Control Agency (“MPCA”) and the United States Environmental Protection Agency (“EPA”) to prepare an Amended Consent Decree and Remedial Action Plan (“CD-RAP”) for to the Reilly Tar & Chemical Superfund Site. The amended CD-RAP is based on the current U.S. Department of Justice (“DOJ”) model and provides greater flexibility for the city and the regulatory agencies to tailor the remedy to address current and future conditions at the site. Among other changes, the main points of the amended CD-RAP include: •Incorporates current water quality standards and provides that new and/or revised standards will apply automatically; •Implements the remedy (groundwater pumping and treatment) through separate plans which can be modified to address changing site conditions without reopening the CD-RAP; •Removes certain parties (Vertellus Industries and Minnesota Department of Health) and provides a limited role for others (Oak Park Village, Philip’s Investment, and City of Hopkins); and •Creates a mechanism to use the funds, if any, that EPA recovers in connection with the bankruptcy of the former Site owner (Vertellus Industries) to reimburse the City’s costs related to the Site. At this meeting David Zoll, consultant and staff will updates for council and the process for amending the consent decree and next steps for approval. Next Steps: This City of St. Louis Park City Council will need to approve the amended CD-RP. Staff suggests putting this on the Council agenda for formal approval for the August 5, 2020 meeting. Financial or budget considerations: None at this time. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion Prepared by: Cynthia S. Walsh, Operations and Recreation Director Mark Hanson, Public Works Superintendent Approved by: Nancy Deno, Deputy City Manager/HR Director Page 2 Study session meeting of July 22, 2019 (Item No. 2) Title: Reilly Site Amended Consent Decree Update Discussion Background: The City has worked with the Minnesota Pollution Control Agency (“MPCA”) and the United States Environmental Protection Agency (“EPA”) to prepare an Amended Consent Decree and Remedial Action Plan (“CD-RAP”) for to the Reilly Tar & Chemical Superfund Site. The Amended CD-RAP is based on the current U.S. Department of Justice (“DOJ”) model and provides greater flexibility for the City and the regulatory agencies to tailor the remedy to address current and future conditions at the site. The primary changes include; incorporating current water quality standards and providing that new and/or revised standards will apply automatically; implementing the remedy (groundwater pumping and treatment) through separate plans which can be modified to address changing site conditions without reopening the CD-RAP; removing certain parties (Vertellus Industries and Minnesota Department of Health) and provide a limited role for others (Housing and Redevelopment Authority, Oak Park Village, Philip’s Investment and City of Hopkins); and creating a mechanism to reimburse the city’s costs if the EPA recovers funds from the former site owner (Vertellus Industries). Present considerations: The parties to the existing CD-RAP will also need to sign this amended document. Philip’s Investment (Park Tavern) has already signed the amended Consent Decree The City of Hopkins approved the amended Consent Decree at its June 18, 2019 City Council meeting and is expected to sign the document soon. Since Oak Park Village is in the process of selling its property, we are working with the DOJ on an access agreement with the buyer in advance of Oak Park Village signing the Amended CD-RAP prior to the mid-July closing of the sale. The remaining parties, MPCA, EPA and the U.S. Department of Justice, are going through formal approval and obtaining signatures. Timing of the final approval from the DOJ will depend upon whether they will view the amended CD-RAP as an update to the existing CD-RAP (roughly one month for approval) or as a new CD-RAP (roughly two months). The DOJ attorney assigned to the site is recommending that it be addressed as an update because it does not add any parties or address any new areas of contamination. Once the amended Consent Decree is signed by all parties, the DOJ will file a Notice of Lodging Consent Decree with the US District Court. This filing will trigger a 30-day public comment period after which the court can give final approval of the CD-RAP. Meeting: Study session Meeting date: July 22, 2019 Discussion item: 3 Executive summary Title: 2020 budget – public safety overview Recommended action: No formal action required. This report is to assist with the study session discussion regarding the preparation of the 2020 budget. Policy consideration: •Is the information presented sufficient with council request? •Is there other information that council would like to review during the upcoming process including any other service delivery change considerations? Summary: Staff has been working on the 2020 budget including analyzing and reviewing all the information for the budget in preparation for the August 12th council study session. On May 13, 2019 council requested an overview of the Police and Fire budgets and related operations. At this study session Mike Harcey, Police Chief and Steve Koering, Fire Chief will be present to provide an overview of their departments, review programs and operations and future considerations. Time will be provided for council conversation and questions. Financial or budget considerations: Information and discussion at this meeting will help to further develop 2020 budget recommendations. The Police and Fire budgets represent approximately 40% of the General Fund budget. Please note that the 2020 budget recommendations for all departments are currently being reviewed by staff and the city manager. More firm numbers will be presented at the August meeting by the city manager that will include overall recommendations for 2020 budget year. Strategic priority consideration: All areas of the adopted strategic priorities are impacted by the city’s budget. Supporting documents: June 17, 2019 staff report Discussion Police and Fire organization charts Prepared by: Tim Simon, Chief Financial Officer Mike Harcey, Police Chief Steve Koering, Fire Chief Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Page 2 Study session meeting of July 22, 2019 (Item No. 3) Title: 2020 budget – public safety overview Discussion Police The police department’s staffing consists of 72 full time employees and 8 part time employees; positions are shown in the attached organizational chart. The department also connects with and supports a police reserve unit consisting of 15 volunteers that assist as needed. The total operating budget for 2019 is $10,335,497 in expenditures and $1,023,821 in revenues. At the study session staff will provide an overview of all operations, programs and activities coordinated and lead by the Police Department. This will include: •General operations and community policing o Day to day patrol operations staffing o Special assignments o Records, data and support operations o Recruiting and training, o Overtime o Equipment and Fleet •Outreach •Dispatch The 2020 budget recommendations for all departments are currently being reviewed by staff and the city manager. More firm numbers will be presented at the August meeting on overall recommendations. The initial preliminary proposal before any additional 2020 staffing requests is $10,946,127. This proposed budget includes $9,888,668 in wages and benefits for the current staffing level. The remaining $1,057,459 of the budget is allocated to support day to day operations, community policing philosophy, community outreach activities, dispatch center and the recruiting, training and equipment that staff needs to be successful. A few highlights of the 2020 requested budget includes recommending to the city manager the addition of: •one police officer •dispatch supervisor •public safety information specialist Please Note: all 2020 staffing requests for this and other budgets are under review by the city manager. A final recommendation from the city manager will be made at a later date. Additional budgetary requests include: •the cost of 50% of the salary for a Hennepin County Licensed Social Worker to assist with the response to mental health issues in our community •30% share of the cost for the existing Hennepin County JCPP Liaison •$21,000 for Employee Wellness to provide mental health check in’s for all of PD staff •$50,000 to hire a consultant to assist with the design and implementation of race data collection on traffic stops Page 3 Study session meeting of July 22, 2019 (Item No. 3) Title: 2020 budget – public safety overview Fire The fire department is comprised of both fulltime and part time response staff. The attached organization chart shows the reporting structure and span of control for each group. Of the 27 full-time/career staff in the department 21 work shifts regularly (the 2 Lieutenants who work days in the office can also work 24’s if needed) and there are three shifts that work a rotating schedule. The part time staff which has currently 22 members, fills in as shift staff in a scheduled duty crew model, and are available for call backs during high demand. The fire departments 2019 annual operating budget of $4,813,078.00 is guided by the departments Strategic Plan which was developed in 2018 and defines the 4 divisions that focus on the departments day to day operations. Prevention and Education; Suppression and Emergency Response; Emergency Medical Services; and Emergency Management. Expenditures to support these priorities include $4,276,884.00 in wages and benefits with the remaining $536,194 directed at supporting and sustaining the day to day delivery of services. At the study session meeting staff will provide an overview of all operations, programs and activities coordinated and lead by the Fire Department. This will include: •Fire Operations o Day to day shift operations and staffing o Prevention and education efforts o Training and Development o Community Health Management o Recruiting and retention o Overtime o Technology •Outreach and Community Engagement •Dispatch The 2020 budget recommendations for all departments are currently being reviewed by staff and the city manager. More firm numbers will be presented at the August meeting on overall recommendations. The initial proposal before any additional staffing requests for the 2020 budget is $5,086,677.00. The proposed budget includes $4,523,090 in wages and benefits for our current staffing level. The remaining $563,587 of our budget is allocated to support our day to day operations, connection with community through education, inspection, safety and outreach activities and the recruiting, training and equipment that staff needs to be successful. The fire department continues to review alternative staffing solutions to deliver service at the lowest most predictable cost. One significant challenge is the major impact that technology is having on department operations and the need to support that technology day to day as well as a set of eyes to evaluate business process and design. We are considering an outsource model to address that. Second is the increased overtime and how added career staff might help reduce the impact. The department has not submitted requests for additional staffing as we are piloting different concepts within the boundaries of our current operational budget. Lastly we continue to collaborate with the police department on how service deliveries impact our dispatch center and the appropriate resources for that work. Page 4 Study session meeting of July 22, 2019 (Item No. 3) Title: 2020 budget – public safety overview Next steps: The following preliminary timeline has been developed for council: August 12 Review and discussion of 2020 budget. Department Directors or their designees will also be in attendance. September 3 (Tues) High level 2020 Budget, Draft 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. Police – 72 people/FTE 57 max sworn2019Police Chief (1)Records Supervisor (1) Lieutenant (1)Lieutenant (1)Lieutenant (1)Office Assistant III (1)Office Assistant II (4)Deputy Chief (1)Dispatcher (1)(lead assignment)Dispatcher (7) Sergeant (1)Sergeant (6)Police Officer (29)CSO Coordinator (1)Sergeant (2)Police Officer (13)Assigned to:support services (7)school liaison/DARE (4)community outreach (1)drug task force (1)Police Officer (1)(technology assignment)Study session meeting of July 22, 2019 (Item No. 3) Title: 2020 budget – public safety overviewPage 5 Fire Chief Administrative Assistant Deputy Fire Chief Assistant Chief/ Fire Marshal Day Lieutenant Chief of Training and EMS Day Lieutenant CERT Coordinator CEMTS Captain B Shift Captain C Shift Captain A Shift Station 1 Career FF’s (2) Part time FF’s (4) Station 2 Lieutenant (1) Career FF’s (3) Part time FF’s (2) Station 1 Career FF’s (2) Part time FF’s (3) Station 2 Lieutenant (1) Career FF’s (3) Part time FF’s (4) Station 2 Lieutenant (1) Career FF’s (2) Part time FF’s (3) Station 1 Career FF’s (3) Part time FF’s (3) New Hire Team Leader New Hire Recruits (4) Intern (open) FP Specialist (3) Care Coordinator Study session meeting of July 22, 2019 (Item No. 3) Title: 2020 budget – public safety overview Page 6 Meeting: Study session Meeting date: July 22, 2019 Written report: 4 Executive summary Title: June 2019 monthly financial report Recommended action: No action required at this time. Policy consideration: Monthly financial reports are part of our financial management policies. Summary: The monthly financial report provides a summary of general fund revenues and departmental expenditures and a comparison of budget to actual throughout the year. A budget to actual summary for the four utility funds is also included in this report. Financial or budget considerations: At the end of June, general fund expenditures were at approximately 47.3% of the adopted annual budget, which is about 2.7% under budget. Strategic priority consideration: Not applicable. Supporting documents: Discussion Summary of revenues and expenditures – general fund Budget to actual – enterprise funds Prepared by: Darla Monson, Accountant Reviewed by: Tim Simon, Chief Financial Officer Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Study session meeting of July 22, 2019 (Item No. 4) Page 2 Title: June 2019 monthly financial report Discussion Background: This monthly report provides summary information of the overall level of revenues and departmental expenditures in the general fund compared to the adopted budget throughout the year. A budget to actual summary for the four utility funds is also included in this report. Present considerations: General Fund Actual expenditures should generally be at about 50% of the annual budget at the end of June. General Fund expenditures were at 47.3% through June. Revenues are harder to measure in the same way due to the timing of when they are received, examples of which include property taxes, grants and State aid payments. License and permit revenues combined are at 84% of budget through June. Nearly 90% of the 2019 business and liquor license revenue has already been received, which is typical of prior years as the majority are renewals paid early in the year. Permit revenues increased to 83% of the annual budget through June. Larger building permits issued to date include PLACE, Bridgewater Bank, Yeshiva School, St. Louis Park School District, Elan West End Apartments, Urban Park Apartments, The Block restaurant and the nature center. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual $2,885 $5,979 $8,957 $11,824 $15,327 $18,496 Budget $3,257 $6,515 $9,772 $13,029 $16,287 $19,544 $22,801 $26,058 $29,316 $32,573 $35,830 $39,088 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $ THOUSANDS Monthly Expenditures -General Fund Summary of Revenues & Expenditures - General Fund As of June 30, 2019 20192019201720172018201820192019BalanceYTD Budget Budget Audited Budget Audited BudgetYTD June Remaining to Actual %General Fund Revenues: General Property Taxes24,748,436$ 24,837,901$ 25,705,886$ 26,597,928$ 26,880,004$ -$ 26,880,004$ 0.00% Licenses and Permits3,745,736 3,985,517 3,924,648 4,001,644 4,103,424 3,451,291 652,133 84.11% Fines & Forfeits254,200 293,236 269,200 282,146 279,700 162,259 117,441 58.01% Intergovernmental1,631,669 1,899,006 1,864,877 2,006,435 1,760,900 420,758 1,340,142 23.89% Charges for Services2,027,637 2,051,552 2,162,410 2,180,589 2,187,319 1,019,265 1,168,054 46.60% Miscellaneous Revenue1,274,415 1,294,452 1,318,037 1,427,744 1,367,012 662,454 704,558 48.46% Transfers In1,899,927 1,951,218 1,929,090 1,929,076 1,999,877 974,939 1,024,938 48.75% Investment Earnings 140,000 125,984 160,000 251,494 180,000 180,000 0.00% Other Income30,450 54,303 40,950 35,802 31,300 28,215 3,085 90.14% Use of Fund Balance *58,541 - 523,835 298,156 - 298,156 0.00%Total General Fund Revenues35,811,011$ 36,493,169$ 37,898,933$ 38,712,858$ 39,087,692$ 6,719,181$ 32,368,511$ 17.19%General Fund Expenditures: General Government: Administration 1,049,123$ 1,056,796$ 1,341,606$ 1,340,282$ 1,837,620$ 708,701$ 1,128,919$ 38.57% Finance 957,275 924,832 978,752 964,036 1,034,199 506,270 527,930 48.95% Assessing707,139 652,015 759,865 710,715 772,746 380,930 391,817 49.30% Human Resources754,699 730,731 796,666 735,050 805,620 358,477 447,143 44.50% Community Development1,366,055 1,353,476 1,479,911 1,559,721 1,502,521 747,715 754,807 49.76% Facilities Maintenance1,132,774 1,128,339 1,162,342 1,223,109 1,170,211 541,162 629,049 46.24% Information Resources1,570,712 1,421,685 1,589,432 1,526,028 1,674,937 719,101 955,837 42.93% Communications & Marketing646,841 722,199 755,940 829,732 805,674 364,461 441,214 45.24% Community Outreach26,553 24,403 27,637 12,085 - - - Engineering376,601 339,876 525,834 552,432 570,377 249,923 320,455 43.82%Total General Government8,587,772$ 8,354,352$ 9,417,985$ 9,453,190$ 10,173,905$ 4,576,737$ 5,597,168$ 44.99% Public Safety: Police9,217,988$ 9,255,342$ 9,930,681$ 9,877,014$ 10,335,497$ 5,169,882$ 5,165,615$ 50.02% Fire Protection4,407,656 4,319,457 4,657,973 4,630,520 4,813,078 2,355,820 2,457,259 48.95% Building & Energy2,419,073 2,271,301 2,544,762 2,295,910 2,555,335 1,189,057 1,366,278 46.53%Total Public Safety16,044,717$ 15,846,100$ 17,133,416$ 16,803,444$ 17,703,910$ 8,714,758$ 8,989,152$ 49.23% Operations & Recreation: Public Works Administration266,249$ 245,942$ 230,753$ 208,050$ 290,753$ 131,849$ 158,905$ 45.35% Public Works Operations3,019,017 2,809,715 3,091,857 2,998,935 3,111,481 1,381,062 1,730,419 44.39% Organized Recreation1,472,996 1,470,613 1,582,490 1,499,780 1,579,569 803,948 775,621 50.90% Recreation Center1,744,651 1,856,529 1,860,755 2,004,937 1,949,657 870,308 1,079,349 44.64% Park Maintenance1,721,732 1,797,271 1,830,530 1,866,744 1,833,297 883,031 950,267 48.17% Westwood Nature Center602,400 572,942 622,346 599,704 643,750 302,021 341,729 46.92% Natural Resources550,235 430,995 559,662 376,359 484,784 197,479 287,305 40.74% Vehicle Maintenance1,384,038 1,088,375 1,253,367 1,210,279 1,242,236 631,889 610,347 50.87%Total Operations & Recreation10,761,318$ 10,272,383$ 11,031,760$ 10,764,788$ 11,135,527$ 5,201,586$ 5,933,941$ 46.71% Non-Departmental: General 31,909$ 31,859$ 43,422$ 52,421$ -$ -$ -$ 0.00% Transfers Out- 885,000 - 1,040,000 - - - 0.00% Council Programs198,000 110,105 - - - 0.00% Contingency385,295 188,254 74,350 24,440 74,350 3,069 71,281 4.13%Total Non-Departmental417,204$ 1,105,113$ 315,772$ 1,226,966$ 74,350$ 3,069$ 71,281$ 4.13%Total General Fund Expenditures35,811,011$ 35,577,947$ 37,898,933$ 38,248,388$ 39,087,692$ 18,496,150$ 20,591,542$ 47.32%*Primarily related to E911 capital items from restricted fund balance.Study session meeting of July 22, 2019 (Item No. 4) Title: June 2019 monthly financial reportPage 3 Budget to Actual - Enterprise FundsAs of June 30, 2019 Current BudgetJun Year To DateBudget Variance% of BudgetCurrent BudgetJun Year To DateBudget Variance% of BudgetCurrent BudgetJun Year To DateBudget Variance% of BudgetCurrent BudgetJun Year To DateBudget Variance% of BudgetOperating revenues: User charges 6,857,853$ 2,579,966$ 4,277,887$ 37.62% 7,513,922$ 2,862,985$ 4,650,937$ 38.10% 3,409,250$ 1,140,809$ 2,268,441$ 33.46% 2,900,839$ 1,251,915$ 1,648,924$ 43.16% Other 375,750 456,250 (80,500) 121.42% 30,000 9,436 20,564 31.45% 153,500 183 153,317 0.12% - - Total operating revenues7,233,603 3,036,216 4,197,387 41.97% 7,543,922 2,872,421 4,671,501 38.08% 3,562,750 1,140,992 2,421,758 32.03% 2,900,839 1,251,915 1,648,924 43.16%Operating expenses: Personal services1,397,512 719,357 678,155 51.47% 717,237 403,410 313,827 56.25% 599,774 286,125 313,649 47.71% 807,245 311,415 495,830 38.58% Supplies & non-capital324,800 126,166 198,634 38.84% 68,600 14,422 54,178 21.02% 222,550 15,244 207,306 6.85% 12,500 486 12,014 3.89% Services & other charges1,736,196 1,039,704 696,492 59.88% 4,784,255 2,766,030 2,018,225 57.82%2,952,323 1,055,485 1,896,838 35.75% 325,903 207,969 117,934 63.81% Depreciation * Total operating expenses3,458,508 1,885,227 1,573,281 54.51% 5,570,092 3,183,862 2,386,230 57.16% 3,774,647 1,356,854 2,417,793 35.95% 1,145,648 519,870 625,778 45.38%Operating income (loss)3,775,095 1,150,989 2,624,106 30.49% 1,973,830 (311,441) 2,285,271 -15.78% (211,897) (215,862) 3,965 101.87% 1,755,191 732,045 1,023,146 41.71%Nonoperating revenues (expenses): Interest income 15,172 15,172 0.00% 7,200 7,200 0.00% 18,100 18,100 0.00% 14,175 14,175 0.00% Debt issuance costs- - - - - - - Interest expense/bank charges(478,969) (253,025) (225,944) 52.83% (137,428) (43,946) (93,482) 31.98% (25,500) (3,294) (22,206) 12.92% (37,672) (10,680) (26,992) 28.35% Total nonoperating rev (exp)(463,797) (253,025) (210,772) 54.56% (130,228) (43,946) (86,282) 33.75% (7,400) (3,294) (4,106) 44.51% (23,497) (10,680) (12,817) 45.45%Income (loss) before transfers3,311,298 897,964 2,413,334 27.12% 1,843,602 (355,387) 2,198,989 -19.28% (219,297) (219,156) (141) 99.94% 1,731,694 721,365 1,010,329 41.66%Transfers inTransfers out(620,034) (310,017) (310,017) 50.00% (848,335) (424,167) (424,168) 50.00% (241,057) (120,528) (120,529) 50.00% (332,165) (166,083) (166,082) 50.00%NET INCOME (LOSS)2,691,264 587,947 2,103,317 21.85% 995,267 (779,554) 1,774,821 -78.33% (460,354) (339,684) (120,670) 73.79% 1,399,529 555,282 844,247 39.68%Items reclassified to bal sht at year end: Capital Outlay(5,383,474) (394,133) (4,989,341) 7.32% (1,530,238) (42,553) (1,487,685) 2.78%- - - (3,139,505) (42,553) (3,096,952) 1.36%Revenues over/(under) expenditures(2,692,210) 193,814 (2,886,024) (534,971) (822,107) 287,136 (460,354) (339,684) (120,670) (1,739,976) 512,729 (2,252,705) *Depreciation is recorded at end of year (non-cash item).Water SewerSolid WasteStorm WaterStudy session meeting of July 22, 2019 (Item No. 4) Title: June 2019 monthly financial reportPage 4 Meeting: Study session Meeting date: July 22, 2019 Written report: 5 Executive summary Title: Second quarter investment report (April – June 2019) Recommended action: No action required at this time. Policy consideration: Reporting on investments quarterly is part of our financial management policies. Summary: The quarterly investment report provides an overview of the City’s investment portfolio, including the types of investments held, length of maturity and yield. Financial or budget considerations: The total portfolio value at June 30, 2019 is $67.4 million. Approximately $35 million is invested in longer term securities including U.S. Treasury notes, Federal agency bonds, municipal debt securities and certificates of deposit. The remainder of the portfolio is held in money market accounts and commercial paper for the bond construction projects and cash flow needs between property tax settlements. The overall yield to maturity increased to 2.23% from 2.15% the prior quarter. Strategic priority consideration: Not applicable. Supporting documents: Discussion Investment portfolio summary Prepared by: Darla Monson, Accountant Reviewed by: Tim Simon, Chief Financial Officer Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Study session meeting of July 22, 2019 (Item No. 5) Page 2 Title: Second quarter investment report (April – June 2019) Discussion Background: The City’s investment portfolio is focused on short term cash flow needs and investment in longer term securities. This is done in accordance with Minnesota Statute 118A and the City’s investment policy objectives of: 1) Preservation of capital; 2) Liquidity; and 3) Return on investment. Present considerations: The portfolio value increased during the second quarter to $67.4 million at June 30, 2019 from $46.1 million at March 31, 2019. The increase is due in part to the receipt of the 70% advance payment of the first half property tax settlement from Hennepin County on June 21. The 2019A bonds were also issued on April 10. The overall yield of the portfolio increased to 2.23%, compared to 2.15% at March 31 and 1.69% one year ago. This is the combined yield including both cash held in money market accounts and long term investments. Cities will typically use a benchmark such as the two year Treasury (1.75% on June 28, 2019) or a similar measure for yield comparison of their overall portfolio. There was approximately $17.2 million in money market accounts at the end of the quarter, including bond proceeds of about $6 million. The other $11.2 million dollars in the money market accounts along with the remainder of the property tax settlement received in July will be needed for cash flow purposes for the August 1 debt service payments, payroll and on-going operating expenses until the next tax settlement in early December. Money market rates remained almost unchanged from the prior quarter at between 2.10% - 2.21%. The other $14.5 million of unspent bond proceeds are invested in very short term commercial paper set to mature incrementally as needed to fund construction costs for the nature center and Cedar Lake Road projects. Commercial paper are promissory notes with short maturity periods issued by financial institutions and large corporations and usually have higher rates than money market accounts for investing cash in the shorter term. Rates on the commercial paper that the bond proceeds are invested in range from 2.52% - 2.57%. There is one other $800,000 commercial paper security in the portfolio held for cash flow purposes at 2.97% that will mature in August 2019. Another $2.8 million of the portfolio is invested in certificates of deposit. One five year CD with a rate of 1.9% matured during the quarter. Twelve CD’s remain in the portfolio, each with a face value of $245,000 or less, which guarantees that each CD is insured by the FDIC up to $250,000. The maturity dates range from 1 to 16 months and rates of 1.75% to 2.3%. Four will mature in the third quarter. The remaining $32 million of the portfolio is invested in other long term securities which include municipal bonds ($3.5 mil), Federal agency bonds ($9 mil) and U.S. Treasury notes ($19.5 mil). Municipal bonds are issued by states, local governments, or school districts to finance special projects. Agency bonds are issued by government agencies such as the Federal Home Loan Bank and Fannie Mae and may have call dates where they can be called prior to final maturity. One $2 million municipal debt security matured on May 1 and was not reinvested due to cash flow needs at the time. Currently five year U.S. Treasuries have lower rates than the money markets accounts. Study session meeting of July 22, 2019 (Item No. 5) Page 3 Title: Second quarter investment report (April – June 2019) This table is a summary of the City’s portfolio at June 30, 2019: Next steps: None at this time. 3/31/19 6/30/19 <1 Year 35% 55% 1-2 Years 15% 16% 2-3 Years 22% 14% 3-4 Years 23% 13% >4 Years 5% 2% 3/31/19 6/30/19 Money Markets/Cash $8,908,277 $17,242,159 Commercial Paper $792,624 $15,266,157 Certificates of Deposit $3,075,973 $2,841,941 Municipal Debt $5,441,074 $3,453,645 Agencies/Treasuries $27,865,991 $28,582,216 City of St. Louis Park Investment Portfolio Summary June 30, 2019 Institution/Broker Investment Type CUSIP Maturity Date Yield Par Value Market Value at 6/30/2019 Estimated Avg Annual Income Citizens Indep Bank Money Market 0.17%1,473 1,473 3 4M Liquid Asset Money Market 2.10%10,606,527 10,606,527 222,737 4M Plus Money Market (bond proceeds)2.16%3,923,054 3,923,054 84,738 UBS Institutional Money Market 2.21% 564,920 564,920 12,485 UBS Institutional Money Market (bond proceeds)2.21% 2,146,185 2,146,185 47,431 17,242,159 UBS Comm Paper - Great West Life & Annuity Ins 39136SUN1 07/22/2019 2.54% 3,000,000 2,995,260 76,080 UBS Comm Paper - Central American Bank 15239CUQ5 07/24/2019 2.57% 3,000,000 2,994,840 76,967 UBS Comm Paper - Korea Development Bank NY 5006E1UV4 07/29/2019 2.52% 2,500,000 2,494,875 62,871 UBS Comm Paper - Santander UK PLC 80285QUX6 07/31/2019 2.54% 3,000,000 2,993,550 76,036 UBS Comm Paper - Banque Et Caisse Epargne 0667K1VL2 08/20/2019 2.52% 3,000,000 2,989,680 75,340 PFM Comm Paper - BNP Paribas NY Branch 09659CV62 08/06/2019 2.97% 800,000 797,952 23,760 15,266,157 PFM CD - Amer Exp F UT 02587CAC4 07/10/2019 1.95% 240,000 239,976 4,680 PFM CD - Capital One Bank 14042E4S6 07/15/2019 1.95% 240,000 239,954 4,680 PFM CD - First Bk Highland IL 3191408W2 08/13/2019 2.00% 240,000 239,909 4,800 PFM CD - Webster Bk NA CT 94768NJX3 08/20/2019 1.90% 240,000 239,890 4,560 PFM CD - Capital One Bank 140420PS3 10/08/2019 2.10% 240,000 239,921 5,040 PFM CD - State Bk India IL 856283XJ0 10/15/2019 2.10% 240,000 239,930 5,040 PFM CD - Goldman Sachs Bank NY 38148JHB0 01/14/2020 2.20% 240,000 240,094 5,280 PFM CD - Amer Express UT 02587DXE3 01/30/2020 1.95% 240,000 239,762 4,680 PFM CD - Camden Nat'l Bank ME 133033DR8 02/26/2020 1.80% 240,000 239,810 4,320 PFM CD - Private Bank & Tr IL 74267GVA2 02/27/2020 1.75% 240,000 239,885 4,200 PFM CD - World's Foremost 9159919E5 08/06/2020 2.30% 200,000 197,602 4,600 PFM CD - Comenity Cap Bk UT 20033AND4 10/13/2020 2.00% 245,000 245,208 4,900 2,841,941 PFM Muni Debt - New York City 64971WUX6 08/01/2019 1.33% 2,000,000 1,999,360 26,600 PFM Muni Debt - Connecticut St 20772JKN1 10/15/2020 1.78% 1,000,000 997,260 17,800 PFM Muni Debt - California St 13063DGA0 04/01/2021 2.80% 450,000 457,025 12,600 3,453,645 PFM FNMA 3135G0T60 07/30/2020 1.60%1,250,000 1,243,763 20,000 PFM US Treasury Note 912828L32 08/31/2020 1.09% 600,000 596,298 6,540 PFM FHLB 3130ACE26 09/28/2020 1.48% 575,000 571,205 8,510 PFM FHLMC 3137EAEJ4 09/29/2020 1.69% 530,000 528,198 8,957 PFM FHLMC 3137EAEK1 11/17/2020 1.91% 800,000 799,752 15,280 PFM US Treasury Note 912828N48 12/31/2020 1.02% 150,000 149,801 1,530 PFM US Treasury Note 912828N48 12/31/2020 1.12% 750,000 749,003 8,400 PFM Freddie Mac 3137EAEL9 02/16/2021 2.47% 800,000 806,928 19,760 PFM Fannie Mae 3135G0U27 04/13/2021 2.55% 500,000 505,835 12,750 PFM US Treasury Note 912828Q78 04/30/2021 1.86% 250,000 248,155 4,650 PFM US Treasury Note 912828Q78 04/30/2021 1.87% 675,000 670,019 12,623 PFM US Treasury Note 912828R77 05/31/2021 2.02% 1,600,000 1,588,000 32,320 PFM Fannie Mae 3135G0U35 06/22/2021 2.76% 700,000 712,642 19,320 PFM FHLB Global 3130A8QS5 07/14/2021 1.25% 750,000 740,655 9,375 PFM US Treasury Note 912828D72 08/31/2021 1.73% 650,000 653,452 11,245 PFM US Treasury Note 912828D72 08/31/2021 1.85% 1,150,000 1,156,107 21,275 PFM FHLB 3130AEXV7 09/20/2021 3.00% 750,000 751,028 22,500 PFM FHLB 3130AF5B9 10/12/2021 3.02% 750,000 769,980 22,650 PFM US Treasury Note 912828T67 10/31/2021 1.72% 700,000 692,209 12,040 PFM US Treasury Note 912828T67 10/31/2021 1.64% 575,000 568,600 9,430 PFM US Treasury Note 912828T67 10/31/2021 1.85% 200,000 197,774 3,700 PFM FNMA 3135G0U92 01/11/2022 2.65% 400,000 408,308 10,600 PFM US Treasury Note 912828X47 04/30/2022 1.96% 700,000 702,814 13,720 PFM US Treasury Note 912828X47 04/30/2022 2.12% 850,000 853,417 18,020 PFM US Treasury Note 912828X47 04/30/2022 2.18% 800,000 803,216 17,440 PFM US Treasury Note 912828X47 04/30/2022 2.69% 1,300,000 1,305,226 34,970 PFM US Treasury Note 912828TJ9 08/15/2022 2.76% 1,050,000 1,046,798 28,980 PFM US Treasury Note 912828N30 12/31/2022 3.00% 950,000 962,949 28,500 PFM US Treasury Note 912828N30 12/31/2022 2.78% 1,000,000 1,013,630 27,800 PFM US Treasury Note 912828N30 12/31/2022 2.51% 2,550,000 2,584,757 64,005 PFM US Treasury Note 912828N30 12/31/2022 2.55% 1,675,000 1,697,830 42,713 PFM US Treasury Note 912828R69 05/31/2023 2.53% 1,000,000 996,062 25,300 PFM US Treasury Note 912828R69 05/31/2023 1.83% 350,000 348,619 6,405 PFM Fannie Mae 3135G0V34 02/05/2024 2.58% 625,000 643,781 16,125 PFM FHLB 3130AFW94 02/13/2024 2.58% 500,000 515,405 12,900 28,582,216 GRAND TOTAL 67,386,118 1,502,559 Current Portfolio Yield To Maturity 2.23% Study session meeting of July 22, 2019 (Item No. 5) Title: Second quarter investment report (April – June 2019)Page 4 Meeting: Study session Meeting date: July 22, 2019 Written report: 6 Executive summary Title: Housing Authority (HA) Board 2019 annual work plan Recommended action: Review the 2019 annual work plan for the HA Board of commissioners. Policy consideration: Does the annual work plan address the strategic priorities of the city council, comprehensive plan goals and the HA Board’s mission and regulatory responsibilities? Summary: The St. Louis Park HA was created and authorized to oversee the administration of the HA’s low- and moderate-income housing programs and any housing programs for low- and moderate-income households which the council or the EDA delegates to the HA. The HA Board’s annual work plan is attached for review. There are three initiatives identified for 2019 The initiatives identified include: •Oversee the administration of the Housing Authority’s core federally funded rental assistance programs including review and approval of program policies •Oversee the administration of programs that support/promote a well maintained housing stock through the use of the city’s housing rehab and design programs •Explore/support/provide input on strategies to promote the creation and preservation of affordable rental and homeownership options for low and moderate income households in the community including both new construction and preservation of existing naturally occurring affordable housing and make recommendations to city council. These initiatives were also shared with the city council at the February 25, 2019, annual meeting of boards and commissions. Due to difficulty identifying a council meeting agenda that accommodates both the council’s schedule and the HA board’s availability, a written report identifying the HA Board’s 2019 work plan is being submitted to council. If the council would like to meet to discuss the work plan, staff will continue to seek a future meeting date that that will accommodate both the council’s and the HA Board of commissioner’s availability. Financial or budget considerations: Financial resources for affordable housing programs include federal, county and city funding. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Housing Authority Board annual work plan Prepared by: Michele Schnitker, CD Deputy Director and Housing Supervisor Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, City Manager Board and Commission Annual Workplan Approved: July 22, 2019 Updated: 1 Housing Authority Board Time Frame Initiative Strategic Priorities Purpose (see page 2 for definitions) Outcome (fill in after completed) 2019 Oversee the administration of the Housing Authority’s core federally funded rental assistance programs including review and approval of program policies, ensuring sound fiscal policies and funding administration, approving the submission of competitive grant applications to secure new and renewal funding and review and approval of the 5 year capital improvement plan for the Public Housing properties. ☐New Initiative ☐Continued Initiative ☒Ongoing Responsibility ☒1 ☐ 2 ☒ 3 ☐4 ☐ 5 ☐N/A ☒Commission Initiated Project ☒Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) 2019 Oversee the administration of programs that support/promote a well maintained housing stock through the use of the city’s housing rehab and design programs including the Move- Up-In-The-Park programs, the Discount Loan Programs, the Emergency Rehab Grants and the HIA designation. Continue to explore opportunities to address unmet housing rehab needs. ☐New Initiative ☐Continued Initiative ☒Ongoing Responsibility ☒1 ☐ 2 ☒ 3 ☐4 ☐ 5 ☐N/A ☐Commission Initiated Project ☒Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) Study session meeting of July 22, 2019 (Item No. 6) Title: Housing Authority (HA) Board 2019 annual work plan Page 2 Board and Commission Annual Workplan Approved: August 26, 2019 Updated: 2 City of St. Louis Park Strategic Priorities 1.St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. 2.St. Louis Park is committed to continue to lead in environmental stewardship. 3.St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. 4.St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. 5.St. Louis Park is committed to creating opportunities to build social capital through community engagement OR Other Purpose: definitions 2019 Explore/support/provide input on proposed strategies to promote the creation and preservation of affordable rental and homeownership options for low and moderate income households in the community including both new construction and preservation of existing naturally occurring affordable housing. ☒New Initiative ☒Continued Initiative ☐Ongoing Responsibility ☒1 ☐ 2 ☒ 3 ☐4 ☐ 5 ☐N/A ☒Commission Initiated Project ☒Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) 2019 ☐New Initiative ☐Continued Initiative ☐Ongoing Responsibility ☐1 ☐ 2 ☐ 3 ☐4 ☐ 5 ☐N/A ☐Commission Initiated Project ☒Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) Study session meeting of July 22, 2019 (Item No. 6) Title: Housing Authority (HA) Board 2019 annual work plan Page 3 Board and Commission Annual Workplan Approved: August 26, 2019 Updated: 3 Modifications: Work plans may be modified, to add or delete items, in one of three ways: •Work plans can be modified by mutual agreement during a joint work session. •If immediate approval is important, the board or commission can work with their staff liaison to present a modified work plan for city council approval at a council meeting. •The city council can direct a change to the work plan at their discretion. Parking Lot •Project initiated by the board or commission Commission Initiated Project •Project tasked to a board or commission by the city council Council Initiated Project •Initiated by the city council •Board and commission will study a specific issue or topic and report its findings or comments to the city council in writing •No direct action is taken by the board/commission Report Findings •Initiated by the city council •Board and commission will study a specific issue or topic and makes a formal recommendation to the city council on what action to take •A recommendation requires a majoirty of the commissioners' support Formal Recommandation Study session meeting of July 22, 2019 (Item No. 6) Title: Housing Authority (HA) Board 2019 annual work plan Page 4 Board and Commission Annual Workplan Approved: August 26, 2019 Updated: 4 Items that are being considered by the board/commission but not proposed in the annual work plan. Council approval is needed if the board/commission decides they would like to move forward with an initiative. Initiative Comments: Fair Housing Staff is drafting a Fair Housing Policy to confirm the city’s support of fair housing and to designate a city staff person to provide resources information and referrals to constituents. In addition, the HA will administer the affordable housing programs in conformity with the Civil Rights Act of 1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, and title II of the Americans with Disabilities Act of 1990, and will affirmatively further fair housing by examining programs or proposed programs with a race and equity lens, identifying any impediments to fair housing choice within those program. Support Council’s Strategic Goals The work of the Housing Authority Board to oversee the administration of the federally funded rental assistance programs, as well as the city’s new and existing housing programs and initiatives supports several of the city’s strategic priorities but most directly supports the following: St. Louis Park is committed to providing a broad range of housing and neighborhood-oriented development. Study session meeting of July 22, 2019 (Item No. 6) Title: Housing Authority (HA) Board 2019 annual work plan Page 5 Meeting: Study session Meeting date: July 22, 2019 Written report: 7 Executive summary Title: Food security and access study update Recommended action: No action at this time. The purpose of this report is to update the city council about the community assessment study of food security and access that is underway by the city’s consultant, Wilder Research. Policy consideration: This study is consistent with the goals and strategies identified in the 2040 Comprehensive Plan. Summary: One of the goals in the city’s health section of the 2040 Comprehensive Plan is to “Ensure all in our community have access to healthy food.” The strategies associated with this goal are to: 1)Conduct a detailed study to assess food accessibility and security in the community, and determine if there are any gaps; and 2)Determine what steps the city can take to address gaps in food access and security. For the first part of the study, Wilder Research staff completed interviews with key informants around the community to gain an understanding of the issues surrounding this topic. Key informant interviews included STEP, Perspectives Kid’s Café, Park Nicollet Foundation and Clinic, Hennepin County Human Services, St. Louis Park School Nutrition Department, SEEDs, Jewish Family and Children Services, among others. Wilder is currently conducting focus groups and surveys with residents who may be impacted by food insecurity, as well as interviewing individuals who can share their personal experiences with food insecurity and access in St. Louis Park. Wilder is also in the process of researching and mapping data to better understand what food issues exist in St. Louis Park. From this information, Wilder will develop recommendations and strategies around ways in which the city can support greater food access and security for residents. The study is expected to be finalized this fall. Financial or budget considerations: The budget for this work is $50,000 and will be paid for through the 2019 Development Fund budget. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: None Prepared by: Meg J. McMonigal, Principal Planner Reviewed by: Laura Smith, Wellness & Volunteer Coordinator Karen Barton, Community Development Director Approved by: Tom Harmening, City Manager