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Home My WebLink About2022/08/15 - ADMIN - Agenda Packets - City Council - Regular AGENDA AUGUST 15, 2022 The St. Louis Park City Council is meeting in person at St. Louis Park City Hall, 5005 Minnetonka Blvd. Members of the public can attend the meeting in person, watch by webstream at bit.ly/watchslpcouncil, or watch on local cable (Comcast SD channel 17/HD channel 859). You can provide comment on agenda items in person at the council meeting or by emailing your comments to info@stlouispark.org by noon the day of the meeting. Comments must be related to an item on the meeting agenda. Recordings are available to watch on the city’s YouTube channel at https://www.youtube.com/user/slpcable, usually within 24 hours of the end of the council meeting or study session. 6:20 p.m. ECONOMIC DEVELOPMENT AUTHORITY – council chambers 1. Roll call 2. Approval of EDA agenda 3. Approval of EDA consent agenda a. Adopt EDA Resolution authorizing an internal loan for the advancement of funds in connection with housing improvements within the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area (HIA). b. Adopt EDA Resolution approving a Collateral Assignment of Tax Increment Note and Redevelopment agreement in connection with Contract for Private Redevelopment with Beltline Residences, LLC for the Beltline Residences multifamily housing development. 4. Approval of EDA minutes - None 5. Unfinished business – None 6. New business - None 7. Communications – None 6:30 p.m. CITY COUNCIL MEETING – council chambers 1. Call to order a. Pledge of allegiance b. Roll call 2. Presentations a. Recognition of the junior naturalists b. Recognition of donations c. Recognition of HR Director Ali Timpone’s years of service 3. Approval of minute - None Meeting of August 15, 2022 City council agenda 4. Approval of agenda and items on consent calendar a. Adopt Resolution approving an update to the employee personnel manual to recognize Juneteenth as a city paid holiday. b. Adopt Resolution accepting work and authorizing final payment in the amount of $51,698.00 for project no. 4021-5000, Park Glen Water Tower Rehabilitation, Contract No. 09-21 c. Approve temporary on-sale intoxicating liquor license for Church of the Holy Family at 5925 West Lake Street on September 10, 2022. d. Adopt resolution authorizing the special assessment for the repair of the sewer service line at 3348 Sumter Avenue South, St. Louis Park, MN. P.I.D. 17-117-21-223-0071. e. Adopt resolution authorizing the special assessment for the repair of the sewer service line at 2905 Dakota Avenue South, St. Louis Park, MN. P.I.D. 09-117-21-3-0210. f. Adopt resolution authorizing the special assessment for the repair of the water service line at 1601 Virginia Avenue South, St. Louis Park, MN. P.I.D. 06-117-21-41-0015. g. Adopt resolution accepting donation from the National Association of Government Web Professionals (NAGW) for expenses for Jason Huber to attend the 2022 NAGW conference. h. Adopt Resolution approving a Collateral assignment of planning development contract with Beltline Residences, L.L.C. for the Beltline Residences multifamily housing development. i. Adopt Resolution approving a Collateral Assignment of Tax Note and Redevelopment Agreement in connection with the Contract for Private Redevelopment with Beltline Residences, LLC for the Beltline Residences multifamily housing development. j. Adopt Resolution approving labor agreement between the city and the patrol officers bargaining group, establishing terms and conditions of employment for three years, from 1/1/2022 – 12/31/2024. k. Adopt Resolution approving Louisiana Avenue bridge funding agreement with the Minnesota Department of Transportation (city project no. 4018-1700). l. Accept human rights commission minutes of May 17, 2022. m.Accept human rights commission minutes of June 21, 2022. 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 a. Adopt Resolution awarding the sale of taxable general obligation (G.O.) housing improvement area bonds, Series 2022B. b. Authorize execution of a contract with PICA Corporation in the amount of $323,000 for their SeeSnake® technology to evaluate pipe wall thickness on watermain located under portions of Minnetonka Boulevard, Cedar Lake Road, and Louisiana Avenue. 9. Communications – None **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 public, that item may be moved to an appropriate section of the regular agenda for discussion. 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 and full packet are available after noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952.924.2505. Meeting: Economic development authority Meeting date: August 15, 2022 Consent agenda item: 3a Executive summary Title: Resolution authorizing the Bridgewalk Condominium Homeowner’s Association Housing Improvement Area internal loan Recommended action: Motion to adopt Resolution authorizing an internal loan for the advancement of funds in connection with housing improvements within the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area (HIA). Policy consideration: Does the Economic Development Authority board wish to authorize an internal loan to finance the Bridgewalk housing improvements? Summary: The city is authorized by state statute to establish HIAs as a finance tool for private housing improvements. An HIA is a defined area within a city where housing improvements are made and the cost of the improvements are paid in whole or in part from fees imposed on the properties within the area. The city adopted an HIA policy in 2001 and has previously established eight HIAs. The city council adopted ordinance 2652-22 and resolution 22-092 on June 20, 2022 establishing the Bridgewalk HIA with a total project budget of $5.98 million. The ordinance allows for a 45-day veto period and no objections or vetoes were submitted by the August 4 deadline. The city council has entered into a development agreement dated August 5, 2022 between the city and Bridgewalk Condominium Homeowners’ Association (the Association) under which the city will make a loan of funds legally available to the Association to finance the housing improvements described in the development agreement. Financial or budget considerations: Issuance of the internal loan in the amount of $800,000 is necessary to provide partial funding for the Bridgewalk HIA. Costs of the housing improvements will also be paid by the city’s taxable general obligation housing improvement are bonds, series 2022B in the amount of $4,925,000. Four owners prepaid the HIA fee in the amount of $252,893. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Resolution Prepared by: Marney Olson, housing supervisor Reviewed by: Karen Barton, community development director/EDA executive director Approved by: Kim Keller, city manager EDA Resolution No. 22-____ Authorizing an internal loan for advance of funds in connection with housing improvements within the Bridgewalk Condominium Homeowners’ Association Housing Improvement AREA 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 City of St. Louis Park ("City") is authorized under Minnesota Statutes, Sections 428A.11 to 428A.21 (the "Housing Improvement Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. The St. Louis Park City Council (“Council”) adopted a Housing Improvement Area policy on July 16, 2001. 1.02. In order to facilitate Housing Improvements to property known as the "Bridgewalk Condominium Homeowners’ Association" the Council on June 20, 2022, established the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area by Ordinance No. 2652-22 (the "Enabling Ordinance") and approved a Housing Improvement Fee (the “Fee”) by Resolution 22-092. 1.03 For the purposes of this Resolution, the terms "Bridgewalk Condominium Homeowners’ Association" and "Housing Improvements" have the meanings provided in the Enabling Ordinance. 1.04. The City has entered into a Development Agreement (the “Agreement”), dated August 5, 2022, between the City and the Bridgewalk Condominium Homeowners’ Association (the “Association”) under which the City will make a loan of funds legally available for such purpose (the “Loan”) to the Association to finance the Housing Improvements as described in the Agreement. 1.05. On the effective date of the Enabling Ordinance, the City will transfer funds in the amount of $800,000 (the “Loan Amount”) from any account or accounts determined by the City Finance Director into a Bridgewalk Condominium Homeowners’ Association Housing Improvement Area Project Fund (the “Project Fund”) hereby established in order to pay for a portion of the costs of the Housing Improvements. Costs of the Housing Improvements will also be paid by the City’s Taxable General Obligation Housing Improvement Area Bonds, Series 2022B (the “Bonds”), in the approximate original aggregate principal amount of $4,925,000 (the “Bonds”). Pursuant to the Agreement, the source of the Loan will include the development fund administered and controlled by the Authority. The City will disburse funds in the Project Fund to the Association in accordance with Article III of the Agreement, and will reimburse itself from the Economic development authority meeting of August 15, 2022 (Item No. 3a) Title: Resolution authorizing the Bridgewalk Condominium Homeowner’s Association Housing Improvement Area internal loan Page 2 housing improvement fee revenues generated by properties within the Housing Improvement Area whose current owners who have successfully applied for a hardship deferral for the payment of assessments under the City’s policy (the “Deferred Fees”). 1.06. The Authority has determined to specify the terms of the Loan in more detail in this resolution. Section 2. Repayment of the Loan Amount. 2.01. The Loan Amount, together with interest at the rate of 6.00% per annum accruing from the date that the initial disbursement of the Loan is made by the Authority, shall be repaid when the City receives payments of Deferred Fees. The Loan shall mature on February 1, 2043 (the “Maturity Date”). Payments of principal of and interest on the Loan shall be made when the Cit receives payments of Deferred Assessments. 2.03. Payments on the Loan Amount will be made solely from Deferred Fees. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments on the Loan Amount shall be subordinate to payments on the Bonds issued by the City to finance any portion of the cost of the Housing Improvements. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the City without premium or penalty. 2.05. The Loan evidence of an internal borrowing by the City, which is a limited obligation payable solely from Deferred Fees pledged to the payment hereof under this resolution. The internal loan for the Housing Improvements shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City of St. Louis Park. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Loan Amount or other costs incident hereto except out of Deferred Fees. The City shall have no obligation to pay any principal amount of the Loan Amount or accrued interest thereon, which may remain unpaid after the Maturity Date. 2.06. The City Finance Director is authorized and directed to determine the fund(s) or account(s) from which monies are drawn for disbursements of the Loan Amount, including the EDA development fund, and to credit repayments under this resolution to the relevant fund(s) or account(s). 2.07. City staff and officials are authorized and directed to execute any collateral documents and take any other actions necessary to carry out the intent of this resolution. 2.08. The City or EDA may at any time determine to forgive the outstanding principal amount and accrued interest on the Loan Amount to the extent permissible under law. Economic development authority meeting of August 15, 2022 (Item No. 3a) Title: Resolution authorizing the Bridgewalk Condominium Homeowner’s Association Housing Improvement Area internal loan Page 3 Section 3. Effective Date. This resolution is effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority August 15, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary Economic development authority meeting of August 15, 2022 (Item No. 3a) Title: Resolution authorizing the Bridgewalk Condominium Homeowner’s Association Housing Improvement Area internal loan Page 4 Meeting: Economic development authority Meeting date: August 15, 2022 Consent agenda item: 3b Executive summary Title: Collateral Assignment of Tax Increment Note and Redevelopment Agreement - Beltline Residences, LLC Recommended action: Motion to Adopt EDA Resolution approving a Collateral Assignment of Tax Increment Note and Redevelopment Agreement in connection with the Contract for Private Redevelopment with Beltline Residences, LLC for the Beltline Residences multifamily housing development. Policy consideration: Does the EDA and council find that the proposed Collateral Assignment of Tax Increment Note and Redevelopment Agreement conform to the Contract for Private Redevelopment with Beltline Residences, LLC and is in the city’s best interest? Summary: On September 20, 2021, the EDA entered into a Contract for Private Redevelopment with Beltline Residences, LLC, and will issue a TIF Note to Beltline Residences, LLC upon the development’s completion pursuant to the Contract. Under the Contract, the EDA agreed to permit the collateral assignment of the TIF Note to the holder of any mortgage securing construction or permanent financing, so long as the assignment is approved by the EDA. Beltline Residences, LLC has a construction loan for the project with Central Bank of St. Louis. The bank has requested assignment of the TIF Note as security for the loan and has asked that the EDA, and the City in its role as the registrar for the TIF Note, execute consents to such assignments. The proposed Collateral Assignment of Tax Increment Note and Redevelopment Agreement is similar to other such assignments the EDA has previously approved for other projects. The proposed agreement has been reviewed by the EDA’s legal counsel who recommends their approval. Financial or budget considerations: All costs associated with the preparation of the proposed Collateral Assignment of Tax Increment Note and Redevelopment Agreement (Kennedy & Graven) are to be paid by Beltline Residences, LLC. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Resolution Prepared by: Greg Hunt, economic development manager Reviewed by: Karen Barton, community development director/EDA executive director Approved by: Kim Keller, city manager Economic development authority meeting of August 15, 2022 (Item No. 3b) Page 2 Title: Collateral Assignment of Tax Increment Note and Redevelopment Agreement - Beltline Residences, LLC EDA Resolution No. 22-___ Resolution approving a Collateral Assignment of a Contract for Private Redevelopment and Tax Increment Revenue Note (Beltline Residences Project) Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established the Beltline Residences Tax Increment Financing District (the “TIF District”), a redevelopment district, within Redevelopment Project No. 1 (the “Redevelopment Project”), pursuant to Minnesota Statutes, Sections 469.001 through 469.047, Sections 469.090 through 469.1081, and Sections 469.174 through 469.1794, all as amended; and Whereas, the Authority previously approved providing certain tax increment financial assistance to Beltline Residences, L.L.C., a Delaware limited liability company (or certain affiliates thereof, collectively, the “Developer”) pursuant to a Contract for Private Redevelopment, dated September 20, 2021 (the “Agreement”), between the Developer and the Authority, in order to facilitate the Developer’s acquisition of property within the TIF District (the “Development Property”) and construction of approximately 250 units of multifamily rental housing including six live/work units on the ground floor, approximately 7,445 square feet of ground floor commercial space, and approximately 320 structured and 32 surface parking stalls, and all associated infrastructure, sidewalks, and landscaping thereon (the “Project”); and Whereas, in connection with its financing of the Project, the Developer has requested that the Authority and the City consent to a Collateral Assignment of Tax Increment Revenue Note and Redevelopment Agreement (the “Assignment”) by and between the Developer and the Central Bank of St. Louis (the “Lender”) by executing a City Consent to Collateral Assignment of Tax Increment Revenue Note and Redevelopment Agreement and an Authority Consent to Collateral Assignment of Tax Increment Revenue Note and Redevelopment Agreement (together, the “Consents”), the forms of which are on file with the Authority. Now, therefore, be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park Economic Development Authority as follows: 1. The Board hereby approves the Assignment and the Consents in substantially the forms presented to the Board, together with any related documents necessary in connection therewith, including but not limited to the agreements referred to therein, (collectively, the “Assignment Documents”) and hereby authorizes the President and Executive Director to execute any such Assignment Documents to which the Authority is a party, on behalf of the Authority, and to carry out, on behalf of the Authority, the obligations of the Authority thereunder when all conditions precedent thereto have been satisfied. 2. The approval hereby given to the Assignment Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein or by the Economic development authority meeting of August 15, 2022 (Item No. 3b) Page 3 Title: Collateral Assignment of Tax Increment Note and Redevelopment Agreement - Beltline Residences, LLC Authority to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. 3. Upon execution and delivery of the Assignment Documents, the officers and employees of the Authority are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Authority to implement the Assignment Documents, when all conditions precedent thereto have been satisfied, including without limitation the payment of tax increments to the Lender as provided therein. 4. The Board hereby determines that the execution and performance of the Assignment Documents will help realize the public purposes of the Act. Reviewed for Administration: Adopted by the Economic Development Authority August 15, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary Meeting: City council Meeting date: August 15, 2022 Presentation: 2a Executive summary Title: Westwood Hills Nature Center junior naturalist recognition Recommended action: The mayor is asked to recognize the junior naturalists for their service this summer. Summer Junior Naturalist Coordinator, Renee McSherry and Naturalist, Becky McConnell, will be in attendance to assist with the presentation. Policy consideration: Not applicable. Summary: There were 33 youth volunteers that served in the junior naturalist program this summer. Collectively they volunteered over 1,600 hours. The junior naturalist program has been part of Westwood Hills Nature Center for 31 years. The goal of the program is to foster responsibility, community service, initiative, teamwork and leadership skills in 7th – 12th grade youth. By volunteering in a cooperative, goal-oriented and engaging work environment, the junior naturalists gain important job skills, knowledge and experience. The junior naturalist program is one of two teen volunteer programs in the Parks and Recreation Department. Junior naturalists assist the naturalists with camps providing valuable support with nature hikes, games, activities, crafts, set-up and clean-up. This year they helped serve 460 summer camp participants. Because of the junior naturalists’ dedication and willingness to serve, summer camp participants’ experience is safer and more engaging. Additionally, junior naturalists maintain the beautiful upper water garden and waterfall area and take care of the nature center’s education animals. Junior naturalists are rewarded with this special recognition, a letter of recommendation, a celebration in appreciation of their service and passes to The Rec Center’s ice arena and Aquatic Park. Financial or budget considerations: Not applicable. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: None Prepared by: Stacy Voelker, senior office assistant Becky McConnell, interpretive naturalist Reviewed by: Mark Oestreich, nature center manager Jason T. West, parks and recreation director Approved by: Kim Keller, city manager Meeting: City council Meeting date: August 15, 2022 Presentation: 2b Executive summary Title: Recognition of donations Recommended action: Mayor to announce and express thanks and appreciation for the following donation being accepted at the meeting and listed on the consent agenda: From Donation For National Association of Government Web Professionals Up to $2,000 Travel related expenses for IT Manager Jason Huber, to attend the 2022 National Association of Government Web Professionals (NAGW) conference, Sept. 6-9, 2022, in Little Rock, Ark. 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 Approved by: Kim Keller, city manager Meeting: City council Meeting date: August 15, 2022 Presentation: 2c Executive summary Title: Recognition of HR Director Ali Timpone’s years of service Recommended action: Read certificate and recognize Ali Timpone for 19 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 10 years of service will be presented with a framed certificate from the mayor, city manager and city council. Ali Timpone, human resources director, is resigning after 19 years of service to the city. Ali will be in attendance at this meeting. The mayor is asked to read the certificate and present it to Ali in recognition of her years of service. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Not applicable. Prepared by: Cindy Walsh, deputy city manager Approved by: Kim Keller, city manager Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4a Executive summary Title: Recognizing Juneteenth as a city paid holiday in the employee personnel manual Recommended action: Motion to adopt Resolution approving an update to the employee personnel manual to recognize Juneteenth as a city paid holiday. Policy consideration: Is council in agreement with updating the employee personnel manual? Summary: The city has a personnel manual for employees to provide a uniform, comprehensive, equitable and efficient system for personnel administration. This manual was drafted in 2001 and is reviewed and updated as needed by human resources to stay current. As stated in the June 13, 2022 report to council, human resources recently convened a representative employee work group to review the city holiday policy and determine if any changes are needed in order to meet employee needs and citywide strategic objectives. The group voiced strong support for recognizing Juneteenth as a paid city holiday to show systemic support for advancing racial equity and to align with federally recognized holidays. The group, and city leadership, feel that Juneteenth’s national significance differentiates it from other cultural and religious holidays. For recognition of those important days, the city has a floating holiday built into its flex leave policy that employees may choose to utilize for that purpose. The impact of adding a holiday includes one additional day off with pay for non-union employees (city staff will work with unions as required by statute to negotiate impacts), and city hall and other non-essential city services would be unavailable to the public on June 19, or the Friday before or Monday after (if holiday falls on a weekend) to observe the holiday. To make this change in the personnel manual, it is recommended that council adopt the attached resolution along with Appendix A, which includes the summary of the change. Financial or budget considerations: The cost of adding a holiday has been built into 2023 budget projections. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Ali Timpone, HR director Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4a) Page 2 Title: Recognizing Juneteenth as a city paid holiday in the employee personnel manual Resolution No. 22-___ Resolution updating the holiday section of the employee personnel manual Whereas, the city has a personnel manual for employees to provide a uniform, comprehensive, equitable and efficient system for personnel administration, which includes a section identifying recognized holidays; and Whereas, Juneteenth is a federally recognized holiday and is also being recognized by more of St. Louis Park’s peer cities; and Whereas, city staff convened a task force to solicit employee feedback and input on the holiday policy and learned that staff strongly supported adding this holiday to align with federally recognized holidays and show systemic support for advancing racial equity; and Whereas, the city council wishes to adopt and update policies which ensure adequate compensation, leave and benefits for city employees and such programs need review and updates as needed; Now therefore be it resolved by the City Council of the City of St. Louis Park hereby adopts the revised holiday section of the personnel manual as attached as Appendix A to this resolution; and Let it further be resolved that these policies and other administrative rules which govern city employees shall be included in an update of the employee personnel manual to be maintained by the city manager, assisted by human resources, and made available to all employees of the city. Reviewed for administration: Adopted by City Council on August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk City council meeting of August 15, 2022 (Item No. 4a) Page 3 Title: Recognizing Juneteenth as a city paid holiday in the employee personnel manual Appendix A: Updating section 8.1 in the employee personnel manual (underline is new language, strike through is deletion) 8.1 Holidays The city recognizes 1011 eight-hour days (8088 hours) as paid holidays for regular full- time employees and 1011 pro-rated days as paid holidays for regular part-time employees each year. Holiday Date New Year’s Day January 1 Martin Luther King Day Third Monday in January President’s Day Third Monday in February Memorial Day Last Monday in May Juneteenth June 19 Independence Day July 4 Labor Day First Monday in September Veteran’s Day November 11 Thanksgiving Day Fourth Thursday in November Friday after Thanksgiving Friday after Thanksgiving Christmas Day December 25 When a holiday falls on a Saturday, the previous Friday is designated as the holiday; when on a Sunday, the following Monday is designated as the holiday. Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4b Executive summary Title: Final payment resolution – Park Glen Water Tower Rehabilitation – Project No. 4021-5000 Recommended action: Motion to adopt Resolution accepting work and authorizing final payment in the amount of $51,698.00 for project no. 4021-5000, Park Glen Water Tower Rehabilitation, Contract No. 09-21. Policy consideration: Not applicable Summary: The existing coating on the tank was installed in 1994 and is no longer effective. An inspection completed revealed that the coating was failing and needed replacement. A full reconditioning of the interior and exterior of the tank was required to replace the existing coating and bring it into compliance with current requirements and extend the life of the water tower. On Nov. 16, 2020, the city council awarded a contract in the amount of $1,126,320.00 to Viking Painting, LLC for the Park Glen Water Tower Rehabilitation, project 4021-5000. The project includes the cleaning, repairing and painting of an existing 1,000,000-gallon fluted column water tower, including structural modifications, surface repairs, interior abrasive blast and coatings, and exterior blast and coating and containment. The final contract amount for this project, $1,127,520.00, is $1,200.00 (0.1%) more than the contract amount awarded. The contract increase is attributed to additional structural welding repairs necessary than what was estimated. This is within the planned contingency and there are adequate funds to cover these costs. Financial or budget considerations: The final cost of the work performed by the contractor under Contract No. 09-21 has been calculated as follows: Original contract (based on estimated quantities) $1,126,320.00 Change orders/ extra work + $1,200.00 Final contract cost $1,127,520.00 Previous payments - $1,075,822.00 Balance due $51,698.00 This project was included in the city’s capital improvement plan (CIP). The work was 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: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4b) Page 2 Title: Final payment resolution – Park Glen Water Tower Rehabilitation – Project No. 4021-5000 Resolution No. 22-____ Resolution authorizing final payment and accepting work for the Park Glen Water Tower Rehabilitation City Project No. 4021-5000 Contract No. 09-21 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 Nov. 16, 2020, Viking Painting, LLC has satisfactorily completed the Park Glen Water Tower Rehabilitation, as per Contract No. 09-21. 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 $1,127,520.00. 4. The city manager is directed to make final payment in the amount of $51,698.00 on this contract, taking the contractor's receipt in full. Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4c Executive summary Title: Temporary on-sale intoxicating liquor license – Church of the Holy Family – Ward 1 Recommended action: Motion to approve temporary on-sale intoxicating liquor license for Church of the Holy Family at 5925 West Lake Street on September 10, 2022. Policy consideration: Does the applicant meet the requirements for the issuance of a temporary on-sale intoxicating liquor license? Summary: The Church of the Holy Family applied for a temporary on-sale intoxicating liquor license to use during their annual fall festival. This event will take place at the Holy Family Academy, 5925 West Lake Street on September 10, 2022. Fundraising efforts include a raffle, donations, and a silent auction. The Church of the Holy Family will carry the required liability insurance through Catholic Mutual Group. The police department completed a background investigation on the principals and found no reason to deny the temporary license. The applicant meets all requirements for the issuance of the license, and staff recommends approval. 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 Reviewed by: Melissa Kennedy, city clerk Approved by: Kim Keller, city manager Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4d Executive summary Title: Special assessment – sewer service line repair at 3348 Sumter Avenue South – Ward 3 Recommended action: Motion to adopt a resolution authorizing the special assessment for the repair of the sewer service line at 3348 Sumter Avenue South, St. Louis Park, MN. P.I.D. 17-117-21-23-0071. Policy consideration: The proposed action is consistent with policy previously established by the city council. Summary: Kristine Vlaich, owner of the single-family residence at 3348 Sumter Avenue South, has requested the city authorize the repair of the sewer service line for her home and assess the cost against the property in accordance with the city’s special assessment policy. The city requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water and/or sewer service lines for existing homes was adopted by the city council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this is unexpectedly required. Plans and permits for this service line repair work were completed, submitted, and approved by city staff. The property owner hired a contractor and repaired the sewer service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the city’s special assessment program. The property owner has petitioned the city to authorize the sewer service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $820.00. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Beth Holida, office Assistant Reviewed by: Emily Carr, assessing technician Jay Hall, interim public works director and utilities superintendent Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4d) Page 2 Title: Special assessment – sewer service line repair at 3348 Sumter Avenue South – Ward 3 Resolution No. 22-____ Resolution authorizing the special assessment for the repair of the sewer service line at 3348 Sumter Avenue South, St. Louis Park, MN P.I.D. 17-117-21-23-0071 Whereas, the property owner at 3348 Sumter Avenue South, has petitioned the City of St. Louis Park to authorize a special assessment for the repair of the sewer service line for the single family residence located at 3348 Sumter Avenue South; and Whereas, the property owner has agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Whereas, the City Council of the City of St. Louis Park has received a report from the Utility Superintendent related to the repair of the sewer service line. Now therefore be it resolved by the City Council of the City of St. Louis Park, Minnesota, that: 1. The petition from the property owner requesting the approval and special assessment for the sewer service line repair is hereby accepted. 2. The sewer service line repair that was done in conformance with the plans and specifications approved by the Public Works Department and Department of Inspections is hereby accepted. 3. The total cost for the repair of the sewer service line is accepted at $820.00. 4. The property owner has agreed to waive the right to a public hearing, notice and appeal from the special assessment, whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The property owner has agreed to pay the city for the total cost of the above improvements through a special assessment over a ten (10) year period at the interest rate of 3%. 6. The property owner has executed an agreement with the city and all other documents necessary to implement the repair of the sewer service line and the special assessment of all costs associated therewith. Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4e Executive summary Title: Special assessment – sewer service line repair at 2905 Dakota Avenue South – Ward 1 Recommended action: Motion to adopt a resolution authorizing the special assessment for the repair of the sewer service line at 2905 Dakota Avenue South, St. Louis Park, MN. P.I.D. 09-117-21-33-0210. Policy consideration: The proposed action is consistent with policy previously established by the city council. Summary: Gregory Whalen, owner of the single-family residence at 2905 Dakota Avenue South, has requested the city authorize the repair of the sewer service line for his home and assess the cost against the property in accordance with the city’s special assessment policy. The city requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water and/or sewer service lines for existing homes was adopted by the city council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this is unexpectedly required. Plans and permits for this service line repair work were completed, submitted, and approved by city staff. The property owner hired a contractor and repaired the sewer service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the city’s special assessment program. The property owner has petitioned the city to authorize the sewer service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $ 9,485.00. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Beth Holida, office assistant Reviewed by: Emily Carr, assessing technician Jay Hall, interim public works director and utility superintendent Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4e) Page 2 Title: Special assessment – sewer service line repair at 2905 Dakota Avenue South – Ward 1 Resolution No. 22-____ Resolution authorizing the special assessment for the repair of the sewer service line at 2905 Dakota Avenue South, St. Louis Park, MN P.I.D. 09-117-21-33-0210 Whereas, the property owner at 2905 Dakota Avenue South, has petitioned the City of St. Louis Park to authorize a special assessment for the repair of the sewer service line for the single family residence located at 2905 Dakota Avenue South; and Whereas, the property owner has agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Whereas, the City Council of the City of St. Louis Park has received a report from the Utility Superintendent related to the repair of the sewer service line. Now therefore be it resolved by the City Council of the City of St. Louis Park, Minnesota, that: 1. The petition from the property owner requesting the approval and special assessment for the sewer service line repair is hereby accepted. 2. The sewer service line repair that was done in conformance with the plans and specifications approved by the Public Works Department and Department of Inspections is hereby accepted. 3. The total cost for the repair of the sewer service line is accepted at $9,485.00. 4. The property owner has agreed to waive the right to a public hearing, notice and appeal from the special assessment, whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The property owner has agreed to pay the city for the total cost of the above improvements through a special assessment over a ten (10) year period at the interest rate of 3%. 6. The property owner has executed an agreement with the city and all other documents necessary to implement the repair of the sewer service line and the special assessment of all costs associated therewith. Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4f Executive summary Title: Special assessment – water service line repair at 1601 Virginia Avenue South – Ward 4 Recommended action: Motion to adopt a resolution authorizing the special assessment for the repair of the water service line at 1601 Virginia Avenue South, St. Louis Park, MN. P.I.D. 06-117-21-41-0015. Policy consideration: The proposed action is consistent with policy previously established by the city council. Summary: David and Mary Beth Gaines, owners of the single-family residence at 1601 Virginia Avenue South, have requested the city authorize the repair of the water service line for their home and assess the cost against the property in accordance with the city’s special assessment policy. The city requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water or sewer service lines for existing homes was adopted by the city council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this are unexpectedly required. Plans and permits for this service line repair work were completed, submitted, and approved by city staff. The property owners hired a contractor and repaired the water service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the city’s special assessment program. The property owners have petitioned the city to authorize the water service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $4,200.00. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Beth Holida, Office Assistant Reviewed by: Jay Hall, interim public works director and utilities superintendent Emily Carr, assessing technician Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4f) Page 2 Title: Special assessment – water service line repair at 1601 Virginia Avenue South – Ward 4 Resolution No. 22-____ Resolution authorizing the special assessment for the repair of the water service line at 1601 Virginia Avenue South, St. Louis Park, MN P.I.D. 06-117-21-41-0015 Whereas, the property owners at 1601 Virginia Avenue South, have petitioned the City of St. Louis Park to authorize a special assessment for the repair of the water service line for the single family residence located at 1601 Virginia Avenue South; and Whereas, the property owners have agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Whereas, the City Council of the City of St. Louis Park has received a report from the Utility Superintendent related to the repair of the water service line. Now therefore be it resolved by the City Council of the City of St. Louis Park, Minnesota, that: 1. The petition from the property owner requesting the approval and special assessment for the water service line repair is hereby accepted. 2. The water service line repair that was done in conformance with the plans and specifications approved by the Public Works Department and Department of Inspections is hereby accepted. 3. The total cost for the repair of the water service line is accepted at $4,200.00. 4. The property owners have agreed to waive the right to a public hearing, notice and appeal from the special assessment, whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The property owners have agreed to pay the city for the total cost of the above improvements through a special assessment over a ten (10) year period at the interest rate of 3%. 6. The property owners have executed an agreement with the city and all other documents necessary to implement the repair of the water service line and the special assessment of all costs associated therewith. Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4g Executive summary Title: Accept donation from National Association of Government Web Professionals Recommended action: Motion to adopt resolution accepting donation from the National Association of Government Web Professionals (NAGW) for expenses for Jason Huber to attend the 2022 NAGW conference. Policy consideration: Does the city council wish to accept the gift with restrictions on its use? Summary: State statute requires the city council’s acceptance of donations. This requirement is necessary to ensure the city council has knowledge of any restrictions placed on the use of each monetary donation prior to it being spent. The City of St. Louis Park’s information technology manager, Jason Huber, represents the NAGW as their president. As a result of his board member status, NAGW will cover all related expenses to attend the NAGW conference, September 6 – 9, 2022, in Little Rock, Ark., in an amount not to exceed $2,000. The city attorney has reviewed this matter. His opinion is that state law permits the payment of such expenses by this organization, regardless of whether the funds come from primary or secondary sources. Because it is treated as a gift to the city, a resolution must be adopted by the city council determining that attendance at this event serves a public purpose and accepting the gift. The resolution must be adopted before attendance at the conference. Financial or budget considerations: No budget impact. The donation will cover expenses incurred in attending the NAGW conference. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Resolution Prepared by: Jason Huber, information technology manager Reviewed by: Jacque Smith, communications and technology director Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4g) Page 2 Title: Accept donation from National Association of Government Web Professionals Resolution No. 22-___ Resolution accepting donation from National Association of Government Web Professionals for expenses for Jason Huber to attend the 2022 National Association of Government Web Professionals conference Whereas, the City of St. Louis Park is required by state statute to authorize acceptance of any donations; and Whereas, the St. Louis Park City Council must also ratify any restrictions placed on the donation by the donor; and Whereas, the National Association of Government Web Professionals (NAGW) will compensate all related costs, in an amount not to exceed $2,000, for the city’s information technology manager, Jason Huber, to attend the NAGW conference Sept. 6 – 9, 2022, in Little Rock, Ark.; Now therefore be it resolved by the St. Louis Park City Council that the gift is hereby accepted with the understanding that it must be used for expenses incurred by Jason Huber to attend the 2022 NAGW conference in Little Rock, Ark., and with thanks to NAGW. Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4h Executive summary Title: Collateral Assignment of Planning Development Contract - Beltline Residences – Ward 2 Recommended action: Motion to Adopt Resolution approving a Collateral Assignment of Planning Development Contract with Beltline Residences, L.L.C. for the Beltline Residences multifamily housing development. Policy consideration: Does the council find that the proposed Collateral Assignment of Planning Development Contract conform to the economic development authority (EDA) Contract for Private Redevelopment with Beltline Residences, L.L.C. and is in the city’s best interest? Summary: On January 28, 2022, the city approved a Planning Development Contract with Beltline Residences, LLC. Beltline Residences, L.L.C. has a construction loan for the project with Central Bank of St. Louis. Under the proposed assignment the bank would have the option, but not the obligation, to take over the development in the event the Developer defaults. The terms and conditions of the Planning Development Contract would remain without modification. The proposed agreement has been reviewed by the city’s legal counsel who recommends its approval. Financial or budget considerations: All costs associated with the preparation of the proposed Collateral Assignment of Planning Development Contract (Campbell Knutson) are to be paid by Beltline Residences, LLC. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Resolution Prepared by: Greg Hunt, economic development manager Reviewed by: Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4h) Page 2 Title: Collateral Assignment of Planning Development Contract - Beltline Residences – Ward 2 Resolution No. 22-____ Resolution approving a Collateral Assignment of a Planning Development Contract (Beltline Residences Project) Whereas, the City of St. Louis Park, Minnesota (the “City”) previously entered into a Planning Development Contract (“Agreement”) with Beltline Residences, L.L.C., a Delaware limited liability company (“Developer”). The Agreement is dated September 20, 2021 and allows for the construction of approximately 250 units of multifamily rental housing including six live/work units on the ground floor, approximately 7,445 square feet of ground floor commercial space, and approximately 320 structured and 32 surface parking stalls; and Whereas, in connection with its financing of the Project, the Developer has requested that the City consent to a Collateral Assignment of the Agreement. Now, therefore, be it resolved by the City Council (the “City Council”) of the City as follows: 1. The City Council hereby approves the Assignment and the Consent in substantially the forms presented to the City Council, together with any related documents necessary in connection therewith, including but not limited to any agreements referred to therein, (collectively, the “Assignment Documents”) and hereby authorizes the Mayor and City Manager to execute any such Assignment Documents to which the City is a party, on behalf of the City, and to carry out, on behalf of the City, the obligations of the City thereunder when all conditions precedent thereto have been satisfied. 2. The approval hereby given to the Assignment Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the City and by the officers authorized herein or by the City to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the City Council by any duly designated acting official, or by such other officer or officers of the City Council as, in the opinion of the City Attorney, may act in their behalf. 3. Upon execution and delivery of the Assignment Documents, the officers and employees of the City are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the City to implement the Assignment Documents, when all conditions precedent thereto have been satisfied. City council meeting of August 15, 2022 (Item No. 4h) Page 3 Title: Collateral Assignment of Planning Development Contract - Beltline Residences – Ward 2 Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4i Executive summary Title: Collateral Assignment of Tax Increment Note and Redevelopment Agreement - Beltline Residences, LLC – Ward 2 Recommended action: Motion to Adopt Resolution approving a Collateral Assignment of Tax Increment Note and Redevelopment Agreement in connection with the Contract for Private Redevelopment with Beltline Residences, LLC for the Beltline Residences multifamily housing development. Policy consideration: Does the EDA and council find that the proposed Collateral Assignment of Tax Increment Note and Redevelopment Agreement conform to the Contract for Private Redevelopment with Beltline Residences, LLC and is in the city’s best interest? Summary: On September 20, 2021, the EDA entered into a Contract for Private Redevelopment with Beltline Residences, LLC, and will issue a TIF Note to Beltline Residences, LLC upon the development’s completion pursuant to the Contract. Under the Contract, the EDA agreed to permit the collateral assignment of the TIF Note to the holder of any mortgage securing construction or permanent financing, so long as the assignment is approved by the EDA. Beltline Residences, LLC has a construction loan for the project with Central Bank of St. Louis. The bank has requested assignment of the TIF Note as security for the loan and has asked that the EDA, and the City in its role as the registrar for the TIF Note, execute consents to such assignments. The proposed Collateral Assignment of Tax Increment Note and Redevelopment Agreement is similar to other such assignments the EDA has previously approved for other projects. The proposed agreement has been reviewed by the EDA’s legal counsel who recommends their approval. Financial or budget considerations: All costs associated with the preparation of the proposed Collateral Assignment of Tax Increment Note and Redevelopment Agreement (Kennedy & Graven) are to be paid by Beltline Residences, LLC. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Resolution Prepared by: Greg Hunt, economic development manager Reviewed by: Karen Barton, community development director/EDA executive director Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4i) Page 2 Title: Collateral Assignment of Tax Increment Note and Redevelopment Agreement - Beltline Residences, LLC – Ward 2 Resolution No. 22 - ____ Resolution approving a Collateral Assignment of a Contract for Private Redevelopment and Tax Increment Revenue Note (Beltline Residences Project) Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established the Beltline Residences Tax Increment Financing District (the “TIF District”), a redevelopment district, within Redevelopment Project No. 1 (the “Redevelopment Project”), pursuant to Minnesota Statutes, Sections 469.001 through 469.047, Sections 469.090 through 469.1081, and Sections 469.174 through 469.1794, all as amended; and Whereas, the Authority previously approved providing certain tax increment financial assistance to Beltline Residences, L.L.C., a Delaware limited liability company (or certain affiliates thereof, collectively, the “Developer”) pursuant to a Contract for Private Redevelopment, dated September 20, 2021 (the “Agreement”), between the Developer and the Authority, in order to facilitate the Developer’s acquisition of property within the TIF District (the “Development Property”) and construction of approximately 250 units of multifamily rental housing including six live/work units on the ground floor, approximately 7,445 square feet of ground floor commercial space, and approximately 320 structured and 32 surface parking stalls, and all associated infrastructure, sidewalks, and landscaping thereon (the “Project”); and Whereas, in connection with its financing of the Project, the Developer has requested that the Authority and the City consent to a Collateral Assignment of Tax Increment Revenue Note and Redevelopment Agreement (the “Assignment”) by and between the Developer and the Central Bank of St. Louis (the “Lender”) by executing a City Consent to Collateral Assignment of Tax Increment Revenue Note and Redevelopment Agreement and an Authority Consent to Collateral Assignment of Tax Increment Revenue Note and Redevelopment Agreement (together, the “Consents”), the forms of which are on file with the City. Now, therefore, be it resolved by the City Council (the “City Council”) of the City as follows: 1. The City Council hereby approves the Assignment and the Consent in substantially the forms presented to the City Council, together with any related documents necessary in connection therewith, including but not limited to any agreements referred to therein, (collectively, the “Assignment Documents”) and hereby authorizes the Mayor and City Manager to execute any such Assignment Documents to which the City is a party, on behalf of the City, and to carry out, on behalf of the City, the obligations of the City thereunder when all conditions precedent thereto have been satisfied. 2. The approval hereby given to the Assignment Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the City and by the officers authorized herein or by the City to City council meeting of August 15, 2022 (Item No. 4i) Page 3 Title: Collateral Assignment of Tax Increment Note and Redevelopment Agreement - Beltline Residences, LLC – Ward 2 execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the City Council by any duly designated acting official, or by such other officer or officers of the City Council as, in the opinion of the City Attorney, may act in their behalf. 3. Upon execution and delivery of the Assignment Documents, the officers and employees of the City are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the City to implement the Assignment Documents, when all conditions precedent thereto have been satisfied, including without limitation the payment of tax increments to the Lender as provided therein. 4. The City Council hereby determines that the execution and performance of the Assignment Documents will help realize the public purposes of the Act. Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4j Executive summary Title: 2022-2024 Local #206 Law Enforcement Labor Services – Patrol Officers Labor Agreement Recommended action: Motion to adopt Resolution approving labor agreement between the city and the patrol officers bargaining group, establishing terms and conditions of employment for three years, from 1/1/2022 – 12/31/2024. Policy consideration: Does council approve the labor agreement between the city and the union? Summary: Staff have been in active negotiations with the patrol officers’ union group for several months. We are pleased to bring this contract to council for approval. Items listed follow the approved compensation plans, budget discussions, and is a three-year contract, effective January 1, 2022 – December 31, 2024. Our discussions in negotiation were productive and resulted in this agreement. This is our last of six bargaining groups to be settled for 2022. Financial or budget considerations: The amount recommended has been included in the 2022 budget and will be used to develop the 2023-2024 budgets. Strategic priority consideration: Not applicable. Supporting documents: Discussion Resolution Prepared by: Ali Timpone, HR director Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4j) Page 2 Title: 2022-2024 Local #206 Law Enforcement Labor Services – Patrol Officers Labor Agreement Discussion Background: The city and the patrol officers union group have negotiated and come to agreement on the following changes to the contract: • Duration of three years (1/1/2022 – 12/31/2024). • General wage increases of 3% for each year 2022, 2023 and 2024, which is consistent with the general wage increase for non-union employees. • Market adjustment of $80 biweekly in 2023 to each step, consistent with our compensation program regarding 85th percentile. HR conducted a review of our approved market. In accordance with our compensation plan, market adjustments were added to ensure that our group remains at our target pay of the 85th percentile. • Reduction of steps from eight years to reach max pay to seven years, effective 2024. This change was requested by the union to hasten an officer’s ability to reach max pay. • Additional increases to entry level steps for new officers so that the city is competitive with starting wages for market cities. • Adding language that allows the union or employer to re-open the contract to negotiate terms and conditions of employment if state statute is amended regarding indemnification of officers during the term of the contract. • Addition of equity language confirming the city and union’s agreement to work together to advance the strategic priorities of the city for racial equity. • Updates to assignment pay and uniforms to compensate commensurate with duties and responsibilities of the assignments. Next steps: Staff recommends approval. All items noted above are included within the 2022 budget. The proposed contract is on file with the city clerk. More detail is available upon request. City council meeting of August 15, 2022 (Item No. 4j) Page 3 Title: 2022-2024 Local #206 Law Enforcement Labor Services – Patrol Officers Labor Agreement Resolution No. 22-___ Resolution approving labor agreement between the City of St. Louis Park and Law Enforcement Labor Services (LELS) Local #206 Patrol Officers January 1, 2022 – December 31, 2024 Whereas, the city and the union have reached a negotiated settlement covering the terms and conditions of a labor agreement as permitted by the State of Minnesota Public Employees Labor Relations Act, and Whereas, the city council may enter into such agreements as authorized by its charter; Now therefore be it resolved by the City Council of the City of St. Louis Park that the mayor and city manager are authorized to execute a collective bargaining agreement, city contract #______ between the City of St. Louis Park and LELS Local 206 Patrol Officers, effective January 1, 2022 – December 31, 2024. Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4k Executive summary Title: Resolution approving Louisiana Avenue bridge funding agreement (4018-1700) – Ward 2 Recommended action: Motion to adopt resolution approving Louisiana Avenue bridge funding agreement with the Minnesota Department of Transportation (city project no. 4018-1700). Policy consideration: Not applicable. Summary: On November 2, 2020, the city council approved a construction contract with Redstone Construction, LLC for the reconstruction of the Louisiana Avenue Bridge. This project is located on Louisiana Avenue between Excelsior Boulevard and Louisiana Circle (near Methodist Hospital). To help pay for the project, the city was granted Bridge bond funding from the Minnesota Department of Transportation (MnDOT). This project is substantially complete and staff is working with the contractor on final payment. A local bridge replacement program grant agreement is required in order for the city to receive these funds from MnDOT. The attached resolution authorizes city officials to execute this grant agreement and any amendments with the Commissioner of Transportation concerning the Louisiana bridge grant. Financial or budget considerations: Funding will be provided by the following sources: Municipal state aid, State of MN bridge bonding, general obligation bonds, franchise fees, and utility funds. The total bridge bonding allocated by MnDOT for this project is $1,502,754.26. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Marina Lee, engineering office assistant Reviewed by: Debra Heiser, engineering director Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 4k) Page 2 Title: Resolution approving Louisiana Avenue bridge funding agreement (4018-1700) Resolution No. 22-____ Resolution approving Louisiana bridge funding agreement (city project no. 4018-1700) Whereas, the City of St. Louis Park has applied to the Commissioner of Transportation for a grant from the Minnesota State Transportation Fund for construction of bridge no. 27C19; and Whereas, the Commissioner of Transportation has given notice that funding for this project is available; and Whereas, the amount of the grant has been determined to be $1,502,754.26 by reason of the lowest responsible bid; Now herefore be it resolved that the City Council of the City of St. Louis Park does hereby agree to the terms and conditions of the grant consistent with Minnesota Statutes, section 174.50, and will pay any additional amount by which the cost exceeds the estimate, and will return to the Minnesota State Transportation Fund any amount appropriated for the project but not required. The proper city officers are authorized to execute a grant agreement and any amendments thereto with the Commissioner of Transportation concerning the above- referenced grant. Reviewed for administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4l Official minutes Human Rights Commission May 17, 2022 – 7:00 p.m. Members present: Jaime Chismar, Li Livdahl, Paul Baudhuin, Andre Barajas, Avi Olitzky, Katie Lawler Turnbull Members absent: Virginia Mancini, Astein Osei Staff present: HR director (Ali Timpone) Guests: Thom Miller 1. Call to order Chair Baudhuin called the commission to order at 7:00 pm. 2. Approval of minutes – Human rights commission of April 5, 2022 A motion was made by Commissioner Chismar, seconded by Commissioner Olitzky, to approve the minutes as presented. Motion carried unanimously. 3. Approval of agenda A motion was made by Commissioner Chismar, seconded by Commissioner Barajas, to approve the agenda. Motion carried unanimously. 4. Special Guest: SLP resident Thom Miller informed the commission of an upcoming volunteer opportunity to ensure children continue to receive healthy meals during the summer months. This summer donation event for STEP provides volunteers with grocery bags to drop off at neighbor homes. Neighbors will fill the bags with groceries and volunteers will pick up the bags one week later and deliver to the SLP High School on June 11. Thom asked commissioners to share this information with their networks, volunteer if they wish, and contact him with questions. 5. Kudos • Commissioner Barajas gave kudos to Commissioners Chismar and Mancini for their leadership and representation of the HRC at the State of the Community event on May 15. • Chair Baudhuin gave kudos to his wife for graduating from nurse practitioner school. • Commissioner Olitzky gave kudos to “Grandma Ruth” Knelman, who was a well- known local volunteer and who recently died at age 111. • Commissioner Livdahl will be going to Loyola in the fall, Commissioner Barajas to Duke. Congratulations to both outstanding youth commissioners on their graduation and next chapters! 6. Human Rights Award The commission discussed the many well-deserving nominees. Six nominations were received for five recipients (one person nominated twice). After much discussion, the commission decided to provide two awards this year: one for a business/organization and one for an individual. The winners of the 2021 Human Rights Award are: David Benowitz City council meeting of August 15, 2022 (Item No. 4l) Page 2 Title: Human rights commission minutes of May 17, 2022 and Luke Derheim of The Block Food & Drink (business/organization category) and Cory Litzow Lorentz, a multilingual learners teacher at SLP HS (individual award). All the nominees were very deserving, and the staff liaison will reach out to each of them to thank them for their work in our city. Specifically, the commission wanted some recognition for the students of SOAR. A motion was made by Commissioner Olitzky, seconded by Commissioner Lawler Turnbull, to recommend that the city council recognize SOAR in some way. Motion carried unanimously. Staff liaison note: notices were sent to all nominees and nominators on May 24, 2022. Commissioners will be notified when winners will be honored with a presentation at a city council meeting. 7. Subcommittee updates Commissioner Chismar stated that the Art Walk will happen July 10 from 4-8pm at Wolfe Park. The solicitation for artists was put on the city’s website May 24. More artists are needed, and commissioners are encouraged to spread the word through their networks. Commissioners Chismar, Livdahl and Barajas are meeting weekly to prepare. Staff liaison Timpone and FOTA Director Mike Mellas are also assisting. Also, there is a Children First literacy event happening on August 8. Commissioner Lawler Turnbull had nothing to report from a combined HRC/PAC subcommittee as the PAC members have not yet responded to a meeting request. Two bias motivated crimes were discussed. 8. Staff Updates Ms. Timpone provided the staff report: • The city council has appointed two new commissioners to three-year terms (replacing Commissioners Mancini and Scott). Orientation will occur soon, and new commissioners will be invited to the June meeting. • The four leftover copies of the book club graphic novel were donated to the library system. • The city’s consultant (RCC) has concluded their study of the racial equity responsibilities at the city and will be presenting their findings to staff in the coming weeks. • The city is hosting a Juneteenth event, see flyer attached. 9. The commission adjourned at 8:36 pm. Respectfully submitted by: Ali Timpone, HR director/staff liaison Meeting: City council Meeting date: August 15, 2022 Consent agenda item: 4m Official minutes Human rights commission June 21, 2022 – 7:00 p.m. Members present: Jaime Chismar, Paul Baudhuin, Avi Olitzky, Katie Lawler Turnbull, Saleta Sallet-Cobb, Andrea Alvarez Members absent: Li Livdahl, Andre Barajas Staff present: HR director (Ali Timpone) 1. Call to order Chair Baudhuin called the commission to order at 7:07 pm. 2. Approval of agenda A motion was made by Commissioner Chismar, seconded by Commissioner Lawler Turnbull, to approve the agenda. Motion carried unanimously. 3. Approval of minutes – Human rights commission of May 17, 2022 A motion was made by Commissioner Olitzky, seconded by Commissioner Lawler Turnbull, to approve the minutes as presented. Motion carried unanimously. 4. New business The commission welcomed the newest commissioners (Sallet-Cobb and Alvarez) with cake and introductions. 5. Kudos • Staff Liaison Timpone gave kudos to Commissioner Lawler Turnbull for presenting the Human Rights Award at the council meeting. • Commissioner Baudhuin said he attended the city’s Juneteenth event and thought it was excellent. 6. Subcommittee updates Commissioners Chismar and Lawler Turnbull are working on an event partnering with SLP Friends of the Arts (FOTA) for the Children First literacy event on August 12 (replacing the previous save the date of July 10). The event will be titled “Turning the Page for Peace” and will be an art walk inspired by social justice literature, based on the artist’s interpretation. The art will travel to other parks as well. The subcommittee is meeting weekly with FOTA to prepare. Commissioners will be needed to assist with art installation. Commissioner Lawler Turnbull is connecting with two PAC members to create a hybrid subcommittee to talk about data and trends in bias motivated crimes and how the commissions can respond and support. Two bias motivated crimes were discussed. 7. Chair Updates Chair Baudhuin reported that he got an email from an SLP resident who was supportive of the commission’s work and action. Page 2 City council meeting of August 15, 2022 (Item No. 4m) Title: Human rights commission minutes of June 21, 2022 He also wanted the commission to be proactive about planning 2023 goals and events and asked that the November 2022 agenda include this preparation work. 8.Staff Update Ms. Timpone provided the staff report: •The city’s REI consultant RCC provided findings and recommendations on staffing for equity positions. The position of racial equity director is currently posted and the city is accepting applications. •Westwood Church reached out to invite the HRC to table at their PRIDE event on Wednesday, June 23. With only one day of notice, they are understanding if commissioners are unable to participate. •Human rights award nominee Abdihakim Ibrahim accepted the commission’s invitation to attend an upcoming meeting to talk about his work in the community. As he focuses a lot on voter outreach, the commission requested to add this topic to the July agenda. The city’s election specialist Michael Sund will also be invited. 9.Other business Commissioner Chismar notified the group that a MinnesoThai event will be held on September 17 and Shout Out Loud will be October 1. 10.Future agenda planning Commissioner Olitzky asked that in the future the commission consider child safety as a human rights issue and focus some attention on school shootings and youth safety. 11.The commission adjourned at 8:35 pm. Respectfully submitted by: Ali Timpone, HR director/staff liaison Meeting: City council Meeting date: August 15, 2022 Action agenda item: 8a Executive summary Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B Recommended action: Motion to adopt Resolution awarding the sale of taxable General Obligation (G.O.) housing improvement area bonds, Series 2022B. Policy consideration: Does the city council wish to accept the lowest bid for the sale of the taxable G.O. housing improvement area bonds, Series 2022B? Summary: At the July 18, 2022, council meeting, council authorized the sale of the 2022B taxable G.O. housing improvement area bonds. The taxable G.O. housing improvement area bonds of $4,925,000 will fund the Bridgewalk housing improvement area construction project. Standard and Poor’s (S&P) had not affirmed the Cities AAA credit rating as of the writing of this report, but staff anticipates this news on August 10. The competitive bids for the bonds will be received and tabulated by the city’s municipal advisor, Ehlers and Associates, Inc. on Monday, August 15 at 10:00am. Ehlers will present the competitive bids received and recommendation to the city council at the August 15, 2022, city council meeting. The bond resolution will be filled out with the final bond sale information received on Monday. Financial or budget considerations: The taxable G.O. Bonds will have a term of 20 years. These bonds will be repaid with special assessment tax levy. Strategic priority consideration: • St Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Next Steps: Tentatively on September 7, 2022, close on bonds, no council action required. Supporting documents: Resolution Awarding the Sale of General Obligation Bonds Series 2022B Prepared by: Melanie Schmitt, finance director Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 8a) Page 2 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B Resolution No. 22-_____ A resolution awarding the sale of taxable general obligation housing improvement area bonds, series 2022B, in the original aggregate principal amount of $4,925,000; fixing their form and specifications; directing their execution and delivery; and providing for their payment Be it resolved by the City Council (the “City Council”) of the City of St. Louis Park, Hennepin County, Minnesota (the “City”) as follows: Section 1. Sale of Bonds. 1.01. Background. (a) The City has previously established the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area (the “Housing Improvement Area”) in order to facilitate certain housing improvements (the “Housing Improvements”) to property known as the Bridgewalk Condominiums, which is governed by the Bridgewalk Condominium Homeowners’ Association, Inc., a Minnesota nonprofit corporation (the “Association”). The City Council has previously imposed a housing improvement fee (the “Housing Fees”) on housing units located in the Housing Improvement Area in order to finance the Housing Improvements. (b) Pursuant to Minnesota Statutes, Chapter 475, as amended, and Sections 428A.11 through 428A.21, as amended (collectively, the “Act”), the City is authorized to issue general obligation bonds in the amount necessary to defray the costs of the Housing Improvements, which costs are payable primarily from the Housing Fees and may be further secured by the pledge of the City’s full faith, credit, and taxing power. (c) The City finds it necessary and desirable for the City to issue its Taxable General Obligation Housing Improvement Area Bonds, Series 2022B (the “Bonds”), in the original aggregate principal amount of $4,925,000, pursuant to the Act, in order to defray the costs of the Housing Improvements. (d) The City is authorized by Section 475.60, subdivision 2(6) of the Act to negotiate the sale of the Bonds, it being determined, on the advice of bond counsel, that interest on the Bonds cannot be represented to be excluded from gross income for purposes of federal income taxation. 1.02. Award to the Purchaser and Interest Rates. A tabulation of proposals received is attached hereto as Exhibit A. The proposal of ___________________________ (the “Purchaser”) to purchase the Bonds of the City described in the Terms of Proposal thereof is found and determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $______________ (principal amount of $4,925,000, [plus original issue premium of City council meeting of August 15, 2022 (Item No. 8a) Page 3 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B $___________,] [less original issue discount of $___________,] less underwriter’s discount of $___________), plus accrued interest, if any, to the date of delivery for the Bonds bearing interest as follows: Year of Maturity Interest Rate Year of Maturity Interest Rate 2024 % 2034 % 2025 2035 2026 2036 2027 2037 2028 2038 2029 2039 2030 2040 2031 2041 2032 2042 2033 2043 True interest cost: _________________% 1.03. Purchase Contract. The amount proposed by the Purchaser in excess of the minimum bid shall be credited to the Debt Service Fund hereinafter created or to the Project Fund hereinafter created, as determined by the Finance Director in consultation with the City’s municipal advisor. The good faith deposit of the Purchaser shall be retained and deposited until the Bonds have been delivered and shall be deducted from the purchase price paid at settlement. The Mayor and the City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. Terms and Principal Amounts of the Bonds. The City shall forthwith issue and sell the Bonds in the total principal amount of $4,925,000, originally dated September 7, 2022, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and which mature on February 1 in the years and amounts as follows: Year of Maturity Amount Year of Maturity Amount City council meeting of August 15, 2022 (Item No. 8a) Page 4 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B 2024 $ 2034 $ 2025 2035 2026 2036 2027 2037 2028 2038 2029 2039 2030 2040 2031 2041 2032 2042 2033 2043 1.05. Optional Redemption. The City may elect on February 1, 2028, and on any date thereafter to prepay Bonds due on or after February 1, 2029. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 6 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant’s interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments will be at a price of par plus accrued interest. [1.06. Mandatory Redemption; Term Bonds. The Bonds maturing on February 1, 20___ and February 1, 20___ shall hereinafter be referred to collectively as the “Term Bonds.” The principal amounts of the Term Bonds subject to mandatory sinking fund redemption on any date may be reduced through earlier optional redemptions, with any partial redemptions of the Term Bonds credited against future mandatory sinking fund redemptions of such Term Bond in such order as the City shall determine. The Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part by lot at par plus accrued interest on February 1 of the years and in the principal amounts as follows: Sinking Fund Installment Date Principal Amount February 1, 20___ Term Bonds $ _____________________ * Maturity February 1, 20___ Term Bonds $ _____________________ * Maturity] Section 2. Registration and Payment. City council meeting of August 15, 2022 (Item No. 8a) Page 5 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B 2.01. Registered Form. The Bonds shall be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case such Bond shall be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case such Bond will be dated as of the date of original issue. The interest on the Bonds will be payable on February 1 and August 1 of each year, commencing August 1, 2023, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.03. Registration. The City will appoint, and shall maintain, a bond registrar, transfer agent, authenticating agent and paying agent (the “Registrar” and the “Paying Agent”). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner’s attorney in writing. (d) Cancellation. Bonds surrendered upon any transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no City council meeting of August 15, 2022 (Item No. 8a) Page 6 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner’s order will be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For a transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first-class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of any proceeding for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints Bond Trust Services Corporation, Roseville, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the City council meeting of August 15, 2022 (Item No. 8a) Page 7 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B Registrar for the services performed. The City reserves the right to remove the Registrar upon thirty (30) days’ notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of the City Council, the Finance Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, such signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager shall deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. Section 3. Form of Bond. 3.01. Execution of the Bonds. The Bonds will be printed in substantially the form set forth in Exhibit B attached hereto. 3.02. Approving Legal Opinion. The City Clerk shall obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, and shall cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. Funds. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds, and to make adequate and specific security for the Purchaser and any other purchasers and holders of the Bonds from time to time, there is hereby created a separate special fund of the City to be known as the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area Fund (the “Housing Fund”), which fund will be continued and maintained as a permanent fund of the City until all the Bonds are paid. Within the Housing Fund there will be established and maintained separate accounts as follows: (a) The Project Fund, into which fund will be deposited proceeds of the Bonds in the amount of $______________. Upon issuance of the Bonds, the City shall also deposit into the Project Fund (i) proceeds of an internal loan (the “Internal Loan”) from the St. Louis Park Economic Development Authority (the “EDA”) to the Association pursuant to City council meeting of August 15, 2022 (Item No. 8a) Page 8 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B the Development Agreement, dated on or after August 5, 2022 (the “Development Agreement”), between the City and the Association, in the amount of $800,000; and (ii) prepaid Housing Fees in the amount of $252,893, which Housing Fees were levied on property within the Housing Improvement Area and were prepaid pursuant to the resolution levying the Housing Fees. A portion of the amount deposited in the Project Fund will be disbursed to (1) reimburse the Association for costs it incurred for the Housing Improvements made to the Bridgewalk Condominiums; and (2) pay a portion of the administrative costs of the Housing Improvement Area, including any rebate of prepaid Housing Fees. Interest earnings from moneys in the Project Fund shall be credited to the Project Fund. (b) The Costs of Issuance Fund, into which fund will be deposited proceeds of the Bonds in the amount of $____________, which amount will be used solely for the purpose of paying costs of issuance of the Bonds. The City authorizes the payment of issuance expenses by Ehlers and Associates, Inc., the municipal advisor to the City in accordance with the closing memorandum to be prepared and distributed by Ehlers and Associates, Inc., on the date of closing. Any balance remaining in the Costs of Issuance Fund after all disbursements for issuance expenses shall be transferred to the Project Fund. Interest earnings from moneys in the Costs of Issuance Fund shall be credited to the Surplus Fund hereinafter created. (c) The Debt Service Fund, into which fund will be deposited Housing Fees in the amount necessary to pay when due the principal and interest on the Bonds. Interest earnings from moneys in the Debt Service Fund shall be credited to the Debt Service Fund. There is also appropriated to the Debt Service Fund amounts over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof. (d) The Surplus Fund, into which fund will be deposited all Housing Fees in excess of the amounts required to be deposited into the Debt Service Fund and the Project Fund under this Section. Amounts in the Surplus Fund shall be applied and disbursed in accordance with the Development Agreement. Interest earnings from moneys in the Surplus Fund shall be credited to the Surplus Fund. 4.02. Deposit of Funds. Money in the funds created by this resolution will be kept separate from other municipal funds and deposited only in a bank or banks which are members of the Federal Deposit Insurance Corporation (“FDIC”). Deposits which cause the aggregate deposits of the City in any one bank to be in excess of the amount insured by FDIC must be continuously secured in the manner provided by law for the investment of municipal funds. In the event excess moneys are held in any of the funds created pursuant to Section 4.01 hereof, such excess moneys shall be applied and disbursed in accordance with the Development Agreement. 4.03. Covenants Regarding Housing Improvements. The City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City has caused or will cause the Housing Fees for the Housing Improvements in the Housing Improvement Area to be promptly levied against housing City council meeting of August 15, 2022 (Item No. 8a) Page 9 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B units in such Housing Improvement Area so that the first installment will be collectible not later than 2023 and will take all steps necessary to assure prompt collection. The City Council will cause to be taken with due diligence all further actions that are required under the Development Agreement for the construction of the Housing Improvements financed wholly or partly from the proceeds of the Bonds, and will take all further actions necessary for the final and valid levy of the Housing Fees and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in Housing Fees for the payment of the Bonds (after taking into account any revenues collected or anticipated to be collected under the Development Agreement), the City Council will levy ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing receipts and disbursements in connection with the Housing Improvements, Housing Fees levied therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, and monies on hand. (d) On the date hereof, the Board of Commissioners of the EDA adopted an interfund loan resolution providing the provision of the Internal Loan. The City will repay the Internal Loan in accordance with the terms set forth therein and in accordance with the Development Agreement. 4.04. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient balance is available therein. 4.05. No Tax Levy Required. It is hereby determined that the estimated collections of Housing Fees for the payment of principal and interest on the Bonds will produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds, and that no tax levy is needed at this time. 4.06. Certificate as to Registration. The City Clerk is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County, Minnesota and to obtain the certificate required by Section 475.63 of the Act. Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under City council meeting of August 15, 2022 (Item No. 8a) Page 10 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B their control, relating to the validity and marketability of the Bonds and such instruments, including any heretofore furnished, shall be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, the City Manager, and the Finance Director are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.03. Other Certificates. The Mayor, the City Manager, and the Finance Director are hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, the City Manager, and the Finance Director shall also execute and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a certificate as to payment for and delivery of the Bonds. 5.04. Electronic Signatures. The electronic signature of the Mayor, the City Manager, the Finance Director, and/or the City Clerk to this resolution and to any certificate authorized to be executed hereunder shall be as valid as an original signature of such party and shall be effective to bind the City thereto. For purposes hereof, (i) “electronic signature” means a manually signed original signature that is then transmitted by electronic means; and (ii) “transmitted by electronic means” means sent in the form of a facsimile or sent via the internet as a portable document format (“pdf”) or other replicating image attached to an electronic mail or internet message. Section 6. Book-Entry System; Limited Obligation of City. 6.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.04 hereof. Upon initial issuance, the ownership of each such Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (“DTC”). Except as provided in this Section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 6.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person other than a registered owner of Bonds, as shown by the registration books kept by the Registrar, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other City council meeting of August 15, 2022 (Item No. 8a) Page 11 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B person, other than a registered owner of Bonds, or any amount with respect to principal of or interest on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City’s obligations with respect to payment of principal of or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the obligation of this Resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words “Cede & Co.” will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Registrar and the Paying Agent. 6.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the “Representation Letter”) which shall govern payment of principal of and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent, respectively, to at all times be complied with. 6.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interest in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in accordance with this Resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 6.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of and interest on such Bond and all notices with respect to such Bond will be made and given, respectively in the manner provided in the Representation Letter. Section 7. Continuing Disclosure. 7.01. Execution of Continuing Disclosure Certificate. “Continuing Disclosure Certificate” means that certain continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. City council meeting of August 15, 2022 (Item No. 8a) Page 12 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B 7.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, and Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. Section 8. Defeasance. When all Bonds have been discharged as provided in this Section, all pledges, covenants and other rights granted by this resolution to holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. (The remainder of this page is intentionally left blank.) City council meeting of August 15, 2022 (Item No. 8a) Page 13 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B Reviewed for Administration: Adopted by the City Council August 15, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk City council meeting of August 15, 2022 (Item No. 8a) Page 14 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B Exhibit A Proposals City council meeting of August 15, 2022 (Item No. 8a) Page 15 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B Exhibit B Form of bond No. R-__ $___________ United States of America State of Minnesota County of Hennepin City of St. Louis Park Taxable General Obligation Housing Improvement Area Bond Series 2022B Rate Maturity Date of Original Issue CUSIP February 1, 20__ September 7, 2022 Registered Owner: Cede & Co. The City of St. Louis Park, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $__________ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above (calculated on the basis of a 360 day year of twelve 30 day months), payable February 1 and August 1 in each year, commencing August 1, 2023, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Bond Trust Services Corporation, Roseville, Minnesota, as Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2028, and on any date thereafter to prepay Bonds due on or after February 1, 2029. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company (“DTC”) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant’s interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments will be at a price of par plus accrued interest. City council meeting of August 15, 2022 (Item No. 8a) Page 16 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B This Bond is one of an issue in the aggregate principal amount of $4,925,000, all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on August 15, 2022 (the “Resolution”), for the purpose of providing money to aid in financing a portion of the various housing improvements within a housing improvement area in the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 475, as amended, and Sections 428A.11 through 428A.21, as amended. The principal hereof and interest hereon are payable primarily from certain housing improvement fees levied on property within the housing improvement area in which the housing improvements are located, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in housing improvement fees pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner’s attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner’s attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the City’s home rule charter to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of St. Louis Park, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of City council meeting of August 15, 2022 (Item No. 8a) Page 17 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B the Mayor and the City Manager and has caused this Bond to be dated as of the date set forth below. Dated: September 7, 2022 City of St. Louis Park, Minnesota (Facsimile) (Facsimile) Mayor City Manager _________________________________ Certificate of Authentication This is one of the Bonds delivered pursuant to the Resolution mentioned within. Bond Trust Services Corporation By Authorized Representative _________________________________ Abbreviations The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants in common UNIF GIFT MIN ACT _________ Custodian _________ (Cust) (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors Act, State of _______________ JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used though not in the above list. ________________________________________ City council meeting of August 15, 2022 (Item No. 8a) Page 18 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B Assignment For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________ the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint _________________________ attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor’s signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STEMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee _________________________________ City council meeting of August 15, 2022 (Item No. 8a) Page 19 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B Provisions as to Registration The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Signature of Officer of Registrar Cede & Co. Federal ID #13-2555119 City council meeting of August 15, 2022 (Item No. 8a) Page 20 Title: Taxable General Obligation Housing Improvement Area Bonds, Series 2022B State of Minnesota ) ) County of Hennepin ) SS. ) City of St. Louis Park ) I, the undersigned, being the duly qualified and acting City Clerk of the City of St. Louis Park, Hennepin County, Minnesota (the “City”), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on August 15, 2022, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of the City’s Taxable General Obligation Housing Improvement Area Bonds, Series 2022B, in the original aggregate principal amount of $4,925,000. WITNESS My hand officially as such City Clerk and the corporate seal of the City this ______ day of _______________, 2022. City Clerk City of St. Louis Park, Minnesota (SEAL) Meeting: City council Meeting date: August 15, 2022 Action agenda item: 8b Executive summary Title: Approve contract for pilot project: watermain inspection Recommended action: Motion to authorize execution of a contract with PICA Corporation in the amount of $323,000 for their SeeSnake® technology to evaluate pipe wall thickness on watermain located under portions of Minnetonka Boulevard, Cedar Lake Road and Louisiana Avenue. Policy consideration: Does the city council wish to enter into a professional services contract with PICA Corporation to complete these watermain pipe condition assessments? Summary: Over the last few months, staff has been working with vendors to determine what types of assessments can be done on watermains to better understand condition. We have learned about emerging technology for leak detection and assessing the pipe wall thickness. Staff is recommending a pilot project to assess how well the technology works. If the pilot is successful and the assessment provides valuable information, we believe we can realize actual dollar savings over time, in addition to increased assuredness around our water system. Results from the assessment will provide us with information on individual pipe segments, so instead of replacing all sections of pipe, we would only replace segments with problems, meaning that we will be able to be more strategic with what is replaced and our replacement dollars go further. The proposed pilot will assess the condition of the watermain located under portions of Minnetonka Boulevard, Cedar Lake Road and Louisiana Avenue. Staff received three professional services proposals for this work. For all of these proposals, the watermain can remain in service. A summary is shown below: Consultant Cost Pure Technologies – SmartBall® $98,428.50 PICA Corporation – Pipers® $209,000.00 PICA Corporation – SeeSnake® $323,000.00 Staff evaluated each proposal and is recommending that the city contract with PICA Corporation for $323,000 for their SeeSnake® technology. This technology will evaluate pipe wall thickness. The other two technologies are for advanced leak detection. Staff recommends proceeding with the pipe wall thickness assessment as it will be able to provide us information on leaks as well as locations where the pipe walls are thinning, creating weaknesses that could result in a break. More information on the three technologies is in the discussion section. Financial or budget considerations: The total cost (excavation and the contract) to complete this work is estimated to be $398,000 and will be paid for using water utility funds and general obligation bonds diverted from the 2023 PMP project. More information on funding is included in the discussion section of this report. Supporting documents: Discussion, Special Study Session report June 6, 2022 Prepared by: Debra Heiser, engineering director Approved by: Kim Keller, city manager City council meeting of August 15, 2022 (Item No. 8b) Page 2 Title: Approve contract for pilot project: watermain inspection Discussion Background: Over the last few months, staff has been working with vendors to determine whether there are new assessments that can be done on watermains to better understand condition. We have learned about emerging technology for leak detection and assessing the pipe wall thickness. Staff is recommending a pilot project to assess how well the technology works. If the pilot is successful and the assessment provides valuable information, we can realize actual dollar savings over time, in addition to increased assuredness and feelings of security. Spending this money up front will make our dollars go further. We will be able to be more strategic with what is replaced. The results will provide us with information on individual pipe segments, so instead of replacing everything, we would only replace segments with problems. There are two street projects scheduled in the coming years that have 12-inch watermain under the pavement. This watermain was installed in 1951. These are: • In 2024, Hennepin county will be performing a mill and overlay on Minnetonka Boulevard between TH169 and Edgewood Avenue. (2.7 miles of watermain) • In 2023-2025 we will be reconstructing Cedar Lake Road and Louisiana Avenue. (2.3 miles of watermain) Watermains along these segments do not have a history of breaks. However, staff would like to find out more about the pipe condition and try out this new technology. Engineering staff recently received three quotes for watermain assessment technologies. An overview of each technology is below. Consultant Cost Pure Technologies – SmartBall® $98,428.50 PICA Corporation – Pipers® $209,000.00 PICA Corporation – SeeSnake® $323,000.00 Pure Technologies – SmartBall®: Cost: $98,428.50 The first technology presented was the SmartBall® from Pure Technologies. This free-swimming device uses sound waves to listen for active leaks in the watermain. It can also detect air pockets, which can increase the risk of watermain breaks, and use sensors and GPS in the device to map the line, which can be transferred to the cities GIS mapping software. The device is about the size of a softball, meaning it can be inserted into the watermain with minimal impact to the pipe itself without having to shut the water off. Once the inspection is complete, the city would receive a map of the watermain with points along the line indicating where a leak or air pocket was found. City crews or contractors would then be sent out to fix the leaks and bleed the air out of the system. PICA Corporation – Pipers®: Cost: $209,000.00 This free-swimming device is very similar to Pure Technologies SmartBall® in that it uses sound waves to listen for leaks in the watermain. This device will also find air pockets as well as measure pressure in the line, locate deposits or sediment build-up, measure friction loss, and perform a limited magnetic survey of the pipe. The size of the device is similar to a baseball and can be inserted with minimal impact on the water system. We can get more information with this device than the SmartBall® but for a higher cost. Once the inspection is complete, the city would receive a map of the watermain with points along the line indicating where a leak, build- City council meeting of August 15, 2022 (Item No. 8b) Page 3 Title: Approve contract for pilot project: watermain inspection up, or air pocket was found. City crews or contractors would then be sent out to fix the issues found. PICA Corporation – SeeSnake® This device is inserted into the watermain while in service. It can be free swimming or tethered via cable and will assess wall thickness in the pipe. The device uses magnetic waves to determine the amount of wall thickness remaining in the pipe. This means that locations that are not leaking yet but are a high probability of failure can be found before they break. The device can reliably find locations with wall loss as small as an inch in size. The device is close to 12 feet long and 10.5 inches in diameter, so insertion does require a minimal interruption of service to customers. The inspection would give us a full 360-degree view of the pipe with structural integrity shown. This would allow for planned replacement of areas with a higher risk of failure to be incorporated into our capital improvement plan. The evaluation requires contact with the pipe to generate an electrostatic charge. So, in addition to the assessment cost, there would also need to be excavation of the roadway to get to the pipe. This would result in an access pit at each end of the pipe to be evaluated. Since there are three roadway segments, this would mean six access pits. We estimate that this will add $75,000 to the cost. Cost: $323,000.00 Access pit cost: $75,000 Total cost: $398,000 Staff evaluated each proposal and is recommending that we work with PICA Corporation to use their SeeSnake® technology. Staff recommends proceeding with this more comprehensive assessment as it will be able to provide us information on leaks as well as locations where the pipe walls are thinning, creating weaknesses that could result in a break. Financial considerations: The total cost to complete this assessment work is estimated to be $398,000. The funding for this is recommended to be split according to the length of the watermain pipe being evaluated, as shown below: Location Funding source Total cost Minnetonka Boulevard General obligation bonds $215,000 Cedar Lake Road/Louisiana Avenue Watermain funds $183,000 On June 6, 2022 the council directed staff to divert $341,000 from the 2023 pavement management project to be used for manhole and sewer lining and a citywide risk assessment. Staff believes that there enough funds available to stretch this to also include a portion ($215,000) of this expense. The remaining expense would be covered by watermain funds already allocated for the Cedar Lake Road/Louisiana Avenue project. Next steps: We will work with PICA Corporation to get this work done before winter. Depending on assessment results, staff may recommend adding watermain replacement to the capital improvement plan for one or both of these projects.