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2017-08-02 CC Agenda Packet Changed from 2017-08-01
ftijwater The Birthplace of Minnesota REGULAR MEETING RECESSED MEETING 216 4th Street N, Stillwater, MN 55082 651-430-8800 www.ci.stillwater.mn.us REVISED AGENDA CITY COUNCIL MEETING August 2, 2017 (Changed from August 1, 2017) 4:30 P.M. AGENDA I. CALL TO ORDER II. ROLL CALL III. OTHER BUSINESS 1. Possible approval of development agreement for TIF #12 2. Discussion on layout for Close the Bridge Event - August 12, 2017 IV. STAFF REPORTS 3. Police Chief 4. Fire Chief 5. City Clerk 6. Community Development Dir. 7. Public Works Dir. 8. Finance Director 9. City Attorney 10. City Administrator 5:30 P.M. AGENDA (CHANGED FROM 7:00 P.M.) 4:30 P.M. 5:30 P.M. V. CALL TO ORDER VI. ROLL CALL VII. PLEDGE OF ALLEGIANCE VIII. APPROVAL OF MINUTES 11. Possible approval of July 11, 2017 regular and recessed meeting minutes and July 18, 2017 regular meeting minutes IX. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS 12. Comprehensive Financial Report Audit - Chris Knopik, ClifftonLarsonAllen X. OPEN FORUM The Open Forum is a portion of the Council meeting to address Council on subjects which are not a part of the meeting agenda. The Council may take action or reply at the time of the statement or may give direction to staff regarding investigation of the concerns expressed. Out of respect for others in attendance, please limit your comments to 5 minutes or less. XI. CONSENT AGENDA (ROLL CALL) all items listed under the consent agenda are considered to be routine by the city council and will be enacted by one motion. There will be no separate discussion on these items unless a council member or citizen so requests, in which event, the items will be removed from the consent agenda and considered separately. 13. Resolution 2017-145, directing payment of bills 14. Resolution 2017-146, approving the 2017-2018 Labor Agreement between the City of Stillwater and American Federation of State, County and Municipal Employees Minnesota Council No. 5, Local 517 AFL-CIO 15. Possible approval of Temporary Liquor License - August 12, 2017 - The Local's - Closing of the Bridge 16. Resolution 2017-147, approving the 2017 Rivertown Fall Art Festival Special Event, Contract and Temporary Liquor License 17. Possible approval of utility bill adjustments 18. Resolution 2017-148, a resolution vacating the drainage and utility easements in Lot 1, Block 1, Lake Hill Acres 19. Possible approval of letter of support for Economic Development program funding for the TH 36/CSAH Manning Avenue Interchange Project XII. PUBLIC HEARINGS - OUT OF RESPECT FOR OTHERS IN ATTENDANCE, PLEASE LIMIT YOUR COMMENTS TO 10 MINUTES OR LESS. XIII. UNFINISHED BUSINESS 20. Possible approval of concept PUD for senior living housing facility - Ecumen (Resolution - Roll Call) XIV. NEW BUSINESS 21. Request for Proposals - 2018 Comp Plan 22. Possible acceptance and approval of the Main Street Stairs Information/Interpretative Signage (Resolution - Roll Call) XV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS (CONTINUED) XVI. COMMUNICATIONS/REQUESTS 23. Transition from CTIB to Washington County Transportation sales tax XVII. COUNCIL REQUEST ITEMS XVIII. STAFF REPORTS (CONTINUED) XIX. ADJOURNMENT AMG COMPANIES TH EAFTER MID NIG HTGR D U P.0 DM August 2, 2017 TO: Mayor Kozlowski, Stillwater City Council Members RE: North Main Proposed Hotel — TIF Request Project History of the TIF Request • The hotel project needs approximately 76 parking spaces (67 for the hotel and 9 for the retail space. The current site allows for approximately 30 parking spaces. To address this shortfall, a request was made to the city to allow for the use of the city -owned site at the corner of Mulberry and 2nd. • Further discussions occurred and the solution, which is equally beneficial to both parties, is a two-level parking structure, with the city owning the top level and the air rights above, and the hotel owning the lower level. • The amount of Tax Increment Financing (TIF) requested is $2.4 million. This amount is the differential between the projected cost of the two level parking deck ($3.0 million) and the projected cost of the original surface parking lot ($600,000). A portion of this cost differential is due to soil issues on the city -owned site. While we understand that this is a larger amount of TIF than the city would like, we believe it is vital to the success of the hotel project and that the overall economic benefits to the city of Stillwater are many, including: Project Benefits • 128 full-time equivalent jobs will be created during the construction period of one year • 40 full-time equivalent and 20 part-time jobs created once the hotel is open • $90,000 annually in lodging tax • Provide additional public parking — estimate 25 additional spaces • Maximize the value of an under -used piece of city owned land, by improving the current overgrown lot at Mulberry and 2nd,with a structure contextual to historic Stillwater We request and appreciate your support and look forward to a successful project. RESOLUTION 2017-145 DIRECTING THE PAYMENT OF BILLS BE IT RESOLVED, by the City Council of the City of Stillwater, Minnesota, that the bills set forth and itemized on Exhibit "A" totaling $878,057.18 are hereby approved for payment, and that checks be issued for the payment thereof. The complete list of bills (Exhibit "A") is on file in the office of the City Clerk and may be inspected upon request. Adopted by the Council this 2nd day of August, 2017. Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk EXHIBIT "A" TO RESOLUTION #2017-145 Page 1 LIST OF BILLS A-1 Hydraulic Sales & Service Action Rental Inc. Advance Auto Parts Amsterdam Aspen Mills Brines Market Bryan Rock Products Inc. Cates Fine Homes LLC Century Link Church of St Michael Comcast Coverall of the Twin Cities ECM Publishers Egger Alison Emergency Apparatus Maintenance Fastenal Company Flexible Pipe Tool Co. Fury Stillwater Galls LLC Hardrives Inc. Haussner Plumbing LLC Heritage Printing Inc. Kirvida Fire Inc. Manos Nancy Mansfield Oil Company Menards Metropolitan Mechanical Contractors MidAmerica Tech Services Middle St Croix Watershed WMO Municode Newman Signs Office Depot OnSite Sanitation Performance Plus LLC Quill Corporation Rehn Code Consulting RES Specialty Pyrotechnics Inc. Simplifile LC SRF Consulting Group Stillwater Glass Inc. Stillwater Motor Company Stillwater Towing Stillwater Turf & Power LLC Streichers Summer Tuesdays Inc Equipment repair Mixing trailer and concrete Supplies Pens Uniforms Meals Field maintenance supplies Repair water damage Telephone Park Fee Refund Internet Commercial Cleaning Services Publications Reimburse for mileage & parking Vehicle maintenance Equipment repair supplies Repair hose Vehicle Repairs Uniforms 2017 Street Project Replace lawn faucet City Hall Payroll check paper Vehicle maintenance Reimburse for coffee Fuel Supplies Maintenance agreement Waste Processing Watershed Management payment Ordinance pages Road closed signs Office supplies Portable restroom rental Drug screen Paper Plan Review Fireworks Recording fees Downtown Plan Update Glass replacement Vehicle repair Towing service Equipment repair Supplies Refund returned ramp vouchers 231.24 420.00 25.74 637.18 1,645.46 315.70 47.91 1,895.61 42.01 125.00 214.90 2,312.00 464.31 74.92 2,791.75 189.51 110.50 784.87 135.80 486,236.86 530.00 405.44 2,493.35 13.98 4,693.22 340.37 2,162.00 2,314.14 41,074.85 158.40 519.74 723.81 150.00 90.00 324.90 622.79 46,000.00 250.00 12,654.66 310.49 360.25 150.00 167.90 61.98 508.50 EXHIBIT "A" TO RESOLUTION #2017-145 Page 2 T.A. Schifsky and Sons Themed Concepts USAble Life Valley Trophy Inc. Verizon Wireless Walmart Community Wenck Construction Winnick Supply Woodchuck Tree Care LLC CREDIT CARDS Amazon American Planning Assoc Backgroundchecks.com BCA Training Ebay Mister Car Wash MN Trucking Assoc Wolf Marine REC CENTER Abbott Paint Advance Auto Parts AT&T Mobility Comcast Ice Skating Institute Menards Pepsi Beverages Company Riedel) Shoes Inc. St. Croix Boat and Packet Co. LIBRARY Advantage Computer Systems Baker and Taylor Barnhouse Office LLC Brechon Melissa J. Breeze Communication Arts Brodart Co Card Source Cole Papers ECM Publishers Holm Christopher Infogroup Midwest Tape Aggregate Repairs at Teddy Bear Park Term Life Insurance Human Rights Commission award Wireless Service Gift cards Police Project Equipment repair supplies Tree removal Supplies Membership Background checks Training Equipment Car Washes Training Boat fuel Supplies Supplies Cell phone TV Internet & Voice Skater memberships Equipment repair supplies Beverages for concessions Skates Arena Billing Hearing Loops Materials Teen Room Interim Director - July Programs - Adult (SPLF) Materials Patron Cards Janitorial Supplies Notice of Special Mtg of Bd Programs - Adult Materials Materials 1,305.20 790.00 444.00 8.00 2,245.68 100.00 34,818.95 44.42 1,300.00 207.39 295.00 656.55 150.00 91.99 27.00 90.00 125.01 54.58 9.97 64.62 373.83 403.00 1,316.21 434.00 155.89 31,317.19 11,495.00 718.35 525.00 7,000.00 1,400.00 2,403.08 645.00 386.45 14.07 400.00 390.00 285.95 EXHIBIT "A" TO RESOLUTION #2017-145 Page 3 Office of MN IT Services Sorenson Beth Toshiba Business Solutions Washington County Library Williams Tyler LIBRARY CREDIT CARDS Al Hauling and Rolloffs Alfresco Casual Living Amazon.com Eventbrite Games By James Gertens Wholesale Lift Bridge Brewing Co River Market Co -Op Rose Floral Valley Bookseller Washington County Public Works Waterdog Records LLC JULY MANUALS Century Link Postmaster Rainbow Corral Critters ADDENDUM Access Data Group Board of Water Commissioner Bolton and Menk Inc. Century Link Exterior Building Services Inc Lake Management Inc. Loffler Companies Magnuson Law Firm Metropolitan Council Millersberg Construction Robole Donna Smith Filter Corporation US Postal Service Vetsch Sandra Washington Conservation Distr Washington County License Center Xcel Energy Phone Travel Reimbursement Maintenance Contract Processing Fees Travel Reimbursement Building Reconfiguration Programs - Adult (SRP Prize - SPLF) Materials - Adult Nonfiction Board Chair Training (6/20/17) Puzzles for Friends Area Reading Area Reconfiguration - Plants Programs - Adult (SRP Prize - SPLF) Programs - Adult (SRP Prize - SPLF) Programs - Adult (SRP Prize - SPLF) Programs - Adult (SRP Prize - SPLF) Materials - Reference Materials - Juv Audio Telephone UB Postage Petting zoo for nite to unite Training - boot camp WAC Charges Engineering services Telephone Water proofing Lake McKusick treatment Voicemail upgrade Professional Service Monthly SAC Refund of permit 2017-00658 Reimburse for mileage Pleated insert pads Postage for mail machine Reimburse for fuel Shared Educator Vehicle registration Energy 379.71 247.17 270.13 349.92 617.07 354.00 40.00 49.71 115.00 16.06 299.89 30.00 30.00 30.00 40.00 74.00 165.00 314.29 2,818.11 575.00 2,495.00 21,582.00 668.00 87.53 2,393.92 482.00 22,069.17 14,139.33 49,203.00 283.00 44.94 916.56 5,000.00 31.88 625.00 23.75 32,923.62 TOTAL 878,057.18 EXHIBIT "A" TO RESOLUTION #2017-145 Page 4 Adopted by the City Council this 2nd Day of Aug, 2017 ti 1 Iwater Administration Ns) TO: Mayor and City Council Members FROM: Tom McCarty, City Administrator Donna Robole, Human Resources Manager DATE: July 24, 2017 SUBJECT: 2017-2018 Labor Agreement between City of Stillwater and American Federation of State, County and Municipal Employees, Minnesota Council No. 5, Local 517 BACKGROUND The City of Stillwater and American Federation of State, County and Municipal Employees (AFSCME) Minnesota Council No. 5, Local 517 concluded negotiations for a successor labor agreement for 2017 and 2018 and the AFSCME membership has voted to approve the agreement. Changes in the contract language include: • Contract Duration — 2 year agreement, January 1, 2017 through December 31, 2018; • Wages o Implementation of Classification Compensation System effective January 1, 2017: • Effective 1/1/17, employee placed on step in new pay structure at designated grade that provides wage rate that is equal to or greater than 12/31/16 base wage and longevity pay combined • Annual step movement effective on first day of first payroll period following anniversary date in 2018 and thereafter • Delete longevity pay references • Employees whose 12/31/16 base wage and longevity pay combined exceeds the new Step 11 shall have their wage rate red circled and receive any general wage adjustment in a non -base lump sum payment. Non -base lump sum payment calculated on employee's actual wage and not Step 11. • If an employee has already received step movement or longevity movement during the period 1/1/17 through 7/14/17, said employee does not have to repay those monies back to the City. However, placement on new structure is still standard (Effective 1/1/17, employee placed on step in new pay structure at designated grade that provides wage rate that is equal to or greater than 12/31/16 base wage and longevity pay combined.) • Job title for Building Permit Technician corrected to Building Permit Technician/Secretary in Grade 4 with other Secretary classifications effective 1/1/17 o General Wage Increase: 2.25% increase effective January 1, 2017; 2.5% increase effective January 1, 2018; • Health Insurance — Increase employer contribution by $15 per month per member effective January 1, 2017, and $15 per month per member effective January 1, 2018. • On -Call Pay for MIS Specialist Memorandum of Agreement --Payment of $100 for every third week of on-call duties shall be applied to annual salary in equivalent amount of $1,700.00 effective January 1, 2017. Memorandum of Agreement will terminate if MIS Specialist no longer serves in on-call capacity every third week. RECOMMENDATION The proposed Labor Agreement between the City of Stillwater and AFSCME Minnesota Council 5, Local 517, is consistent with direction from City Council for labor negotiations. AFSCME has approved the 2017-2018 labor agreement. Increased contract costs are included in the approved 2017 budget. Therefore, staff recommends adoption of the resolution entitled, "Approving the 2017-2018 Labor Agreement between the City of Stillwater and American Federation of State, County and Municipal Employees, Minnesota Council No. 5, Local 517." RESOLUTION 2017-146 APPROVING THE 2017-2018 LABOR AGREEMENT BETWEEN THE CITY OF STILLWATER AND AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, MINNESOTA COUNCIL NO. 5, LOCAL 517 BE IT RESOLVED, by the City Council of Stillwater, Minnesota, that the 2017-2018 Labor Agreement between the City of Stillwater and American Federation of State, County and Municipal Employees, Minnesota Council No. 5, Local 517, as on file with the City Clerk is hereby approved with the following changes: • Contract Duration — 2 year agreement, January 1, 2017 through December 31, 2018; • Wages o Implementation of Classification Compensation System effective January 1, 2017: • Effective 1/1/17, employee placed on step in new pay structure at designated grade that provides wage rate that is equal to or greater than 12/31/16 base wage and longevity pay combined • Annual step movement effective on first day of first payroll period following anniversary date in 2018 and thereafter • Delete longevity pay references • Employees whose 12/31/16 base wage and longevity pay combined exceeds the new Step 11 shall have their wage rate red circled and receive any general wage adjustment in a non - base lump sum payment. Non -base lump sum payment calculated on employee's actual wage and not Step 11. ■ If an employee has already received step movement or longevity movement during the period 1/1/17 through 7/14/17, said employee does not have to repay those monies back to the City. However, placement on new structure is still standard (Effective 1/1/17, employee placed on step in new pay structure at designated grade that provides wage rate that is equal to or greater than 12/31/16 base wage and longevity pay combined.) • Job title for Building Permit Technician corrected to Building Permit Technician/Secretary in Grade 4 with other Secretary classifications effective 1/1/17. o General Wage Increase: 2.25% increase effective January 1, 2017; 2.5% increase effective January 1, 2018; • Health Insurance — Increase employer contribution by $15 per month per member effective January 1, 2017, and $15 per month per member effective January 1, 2018. • On -Call Pay for MIS Specialist Memorandum of Agreement --Payment of $100 for every third week of on- call duties shall be applied to annual salary in equivalent amount of $1,700.00 effective January 1, 2017. Memorandum of Agreement will terminate if MIS Specialist no longer serves in on-call capacity every third week. BE IT FURTHER RESOLVED that the Stillwater City Council authorizes the Mayor and City Clerk to sign the agreement. Adopted by the City Council of the City of Stillwater this 2 day of August, 2017. ATTEST: Diane F. Ward, City Clerk Ted Kozlowski, Mayor AGREEMENT BETWEEN CITY OF STILLWATER And AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES MINNESOTA COUNCIL NO. 5, LOCAL 517 AFL-CIO JANUARY 1, 2017 - DECEMBER 31, 2018 TABLE OF CONTENTS Article Page ARTICLE I. PURPOSE OF AGREEMENT 2 ARTICLE II. RECOGNITION 2 ARTICLE III. UNION SECURITY 2 ARTICLE IV. HOURS OF WORK 3 ARTICLE V. PART-TIME EMPLOYEES 3 ARTICLE VI. HOLIDAYS 4 ARTICLE VII. SICK LEAVE 5 ARTICLE VIII. VACATION 6 ARTICLE IX. SEVERANCE PAY 7 ARTICLE X. LEAVES 8 ARTICLE XI. WAGES 9 ARTICLE XII. OVERTIME 9 ARTICLE XIII. GRIEVANCE PROCEDURES 10 ARTICLE XIV. SENIORITY 11 ARTICLE XV. WORK FORCE 12 ARTICLE XVI. INSURANCE .,..,....,. 13 ARTICLE XVII. GENERAL PROVISIONS 13 ARTICLE XVIII. SAVINGS CLAUSE 14 ARTICLE XIX. EMPLOYER AUTHORITY 14 ARTICLE XX. EMPLOYEE RIGHTS .... 15 ARTICLE XXI. DISCIPLINE 15 ARTICLE XXII. WAIVER 16 ARTICLE XXIII. TERMINATION 16 APPENDIX A 17 APPENDIX B 18 EXHIBIT C WORKING OUT OF CLASS PAY 19 EXHIBIT D POST EMPLOYMENT HEALTH CARE SAVINGS PLAN 20 EXHIBIT E DRUG AND ALCOHOL TESTING AGREEMENT 22 EXHIBIT F EXEMPT EMPLOYEES AGREEMENT 23 EXHIBIT G MEMORANDUM OF UNDERSTANDING -ON-CALL PAY FOR MIS SPECIALIST 24 AFSCME Labor Agreement Page 1 AGREEMENT BETWEEN CITY OF STILLWATER And AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES MINNESOTA COUNCIL NO. 5, LOCAL 517 AFL-CIO ARTICLE I. PURPOSE OF AGREEMENT This agreement is entered into between the City of Stillwater, hereafter called the EMPLOYER, and MN Council 5, Local 517, American Federation of State, County and Municipal Employees, hereinafter called the UNION. The intent of and purpose of this agreement is to: 1.1 Establish certain hours, wages and other conditions of employment; 1.2 Establish procedures for the resolution of disputes concerning this AGREEMENT'S interpretation and/or application; 1.3 Specify the full and complete understanding of the parties; and 1.4 Place in written form the parties' agreement upon terms and conditions of employment for the duration of this agreement. The EMPLOYER and the UNION, through this AGREEMENT, continue their dedication to the highest quality public service. Both parties recognize this AGREEMENT as a pledge of this decision. ARTICLE II. RECOGNITION 2.1 The EMPLOYER recognizes the UNION as the exclusive representative in a unit defined as: All employees of the City of Stillwater who are public employees within the meaning of Minnesota Statutes 179A.03, Subd. 14 excluding supervisory and confidential employees, essential employees, employees of the Stillwater Public Library Board and all employees of the Public Works Department and Parks and Recreation Department. 2.2 In the event the EMPLOYER and the UNION are unable to agree as to the inclusion or exclusion of a new or modified job class, the issue shall be submitted to the Bureau of Mediation Services for determination. ARTICLE III. UNION SECURITY 3.1 The EMPLOYER agrees to deduct the UNION dues from the pay of those employees who individually request in writing that such deductions be made. The amounts to be deducted AFSCME Labor Agreement Page 2 shall be certified to the EMPLOYER by a designated representative of the UNION, and the aggregate deductions of all employees shall be remitted together with an itemized statement, to the designated representative by the first of the succeeding month, after such deductions are made. Any fair share fee collected shall be processed in accordance with Minnesota Statutes 179.65, Subd. 2. 12 The UNION agrees to indemnify and hold -the EMPLOY -ER harmless against any and all claims, suits, orders or judgments brought or issued against the EMPLOYER as a result of any action taken or not taken by the EMPLOYER under the provisions of this article. 3.3 The UNION may designate certain employees from the bargaining unit to act as stewards and shall inform the EMPLOYER in writing of such choice. 3.4 The EMPLOYER agrees to allow electronic communications and make space available on the EMPLOYER bulletin board for the posting of official UNION notice(s) and announcements. ARTICLE IV. HOURS OF WORK 4.1 The sole authority in work schedules is the EMPLOYER. The normal workday for a full-time employee shall be eight (8) hours. The normal workweek for a full-time employee shall be forty (40) hours, Monday through Friday. 4.2 Service to the public may require the establishment of regular shifts for some employees on a daily, weekly, or seasonal or annual basis other than the normal work schedule. The EMPLOYER will give seven (7) days advance notice to the employees affected by the establishment of workdays different from the employee's normal work schedule. 4.3 All employees shall be scheduled a one-half (1/2) hour unpaid lunch break. 4.4 All employees work schedules shall provide for at least one 15 -minute rest period during each one-half shift. The rest period shall be scheduled at the middle of each one-half shift, whenever possible. Employees who are authorized to work beyond their regular quitting time shall receive a rest period if one is necessary due to length of overtime authorization. 4.5 In the event that work is required because of unusual circumstances such as (but not limited to) fire, flood, snow, sleet or breakdown of municipal equipment or facilities, no advance notice need be given. It is not required that an employee working other than the normal workday be scheduled to work more than the workday. Each employee has an obligation to work overtime or call backs if requested unless unusual circumstances prevent the employee from so working. ARTICLE V. PART-TIME EMPLOYEES 5.1 Part-time employees shall be eligible to earn all employee benefits on a pro rata basis according to the following schedule provided that such employees work regularly scheduled hours in each pay period, as opposed to being subject to call or to work when available. AFSCME Labor Agreement Page 3 Average Work Hours Per Week 14-24 25-35 36 or more Pro Rate Percentage of Benefits 50 percent 75 percent 100 percent 5.2 Part-time employees shall be paid an hourly rate computed by dividing the full-time annual rate for which they would be eligible by 2,080 hours. 5.3 Part-time employees who become full-time employees shall be given credit for a forty (40) hour workweek for determining the salary step based on the length of service. 5.4 Employees employed by the employer on a seasonal or temporary basis for not more than 67 work days per calendar year either in a full time or part time capacity (more than 14 hours per week) will be paid a rate to be determined by employer for the term of their employment. Such employees will not be eligible for any benefits under this agreement. ARTICLE VI. HOLIDAYS 6.1 Holidays with pay are as defined: New Year's Day Martin Luther King Day Washington and Lincoln's Birthday Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Christmas Day Floating Holiday Christmas Eve Day or New Year's Eve Day January 1 Third Monday in January Third Monday in February Last Monday in May July 4 First Monday in September November 11 Fourth Thursday in November Fourth Friday in November December 25 One per year December 24 or December 31 Any Employee required to work on any of the defined holidays as noted in Article VI, 6.1, shall be granted an additional 1-1/2 times Employee's base pay in addition to holiday pay. Employees shall be eligible for holiday pay provided they are on paid status on the day before and the day after the holiday. 6.2 When a holiday falls on Saturday, the preceding Friday shall be observed as the holiday. When a holiday falls on Sunday, the following Monday shall be observed as the holiday. 6.3 Christmas Eve or New Year's Eve will be a split work force. The schedule for these two (2). holidays to be approved by the Department Head. 6.4 During the first calendar year of employment any new employee must be hired before June 30th to be eligible to receive the floating holiday. Any new employee hired after June 30th shall be eligible to receive one-half (1/2) floating holiday. AFSCME Labor Agreement Page 4 ARTICLE VII. SICK LEAVE 7.1 Sick leave shall be earned by full-time employees at the following rates: (a) From six (6) months to one (1) year, one (1) week at full pay. (b) _ From one (1) year to two (2) years, one (1) additional day per month. (c) From two (2) to five (5) years, four (4) weeks at full pay; nine weeks at half pay. (d) From (5) to ten (10) years; thirteen (13) weeks at full pay; thirteen (13) weeks at half pay. (e) From ten (10) to fifteen (15) years, thirteen (13) weeks at full pay; thirty-nine (39) weeks half pay. From fifteen (15) to twenty years, twenty-six (26) weeks at full pay; twenty-six (26) weeks at half pay. From twenty (20) to twenty-five (25) years, thirty-nine (39) weeks at full pay; thirteen (13) weeks at half pay. (h) Over twenty-five (25) years, 52 weeks full pay. A week shall be considered to be five (5) working days. Sick leave benefits shall accrue on the January 1st immediately preceding the anniversary date of employment. 7.2 Sickness disability benefits usage shall be subject to the following conditions: (a) An employee may use the full entitlement only once annually. (f) (g) (b) Any days used by an employee must be replaced at the following earning rate: employees shall earn sickness disability leave at the rate of sixteen (16) hours for each month worked. (c) Sickness disability leave time cannot be earned during the time an .employee is on sick leave. Sick leave earned back shall be figured on a pro rata basis each month with no earn back of leave for that portion of sick leave used during the month. (d) Sickness disability leave time shall be earned as a replacement for used leave time by only those employees who have utilized the benefit. Sick leave used last shall be replaced first. 7.3 Sick leave may be authorized for the following reasons with the limitations as specified: (a) For illness or injury, dental or medical treatment for the employee. Sick leave usage by the employee may be subject to approval by the Department Head. The EMPLOYER may require verification for an absence of three days or more, from a AFSCME Labor Agreement Page 5 recognized medical authority attesting to the necessity of the leave, ability to return to duty or other information deemed necessary. (b) In the event a pregnant employee elects to resign her employment because of pregnancy, such employee will be paid for accumulated sick leave up to but not exceeding 15 work days. (c) Sick leave use for serious illness of the employee's spouse, minor children or employee's parents living in the household shall be as established in the City's personnel policy. 7.4 Should illness occur while an employee is on vacation the period of illness maybe charged to sick leave and the charge to vacation reduced accordingly. An employee requesting such a change may be required to submit a written statement from a physician attesting to illness and the period of disability. 7.5 Any employee receiving worker's compensation benefits because of job connected injury or sickness shall, if he/she assigns his check to the City receive full wages for that period. Or, if any employee is receiving worker's compensation benefits and does not assign his/her check, he/she will be paid for the difference between worker's compensation allowance and his/her regular weekly pay. Sick leave shall then be figured on a prorated basis with no deduction of leave being made for that portion of the employee's absence which is covered by worker's compensation insurance. Sick leave will be suspended after benefits have been exhausted; however, an employee who has fulfilled all of the requirements for a vacation which has not been taken may request vacation pay during disability. After all sick leave benefits have been exhausted, any disabled employee may apply m writing for an authorized leave of absence without pay; provided that the period of such leave of absence when added to the period during which benefits have been paid shall not exceed one (1) year. Such application shall be accompanied by a physician's certificate stating that such disabled employee has not been able to return to work. Upon return to active employment, the employee shall retain all accumulated service credit for time worked prior to his/her disability, but shall receive no service credit for the period of absence. ARTICLE VIII. VACATION 8.1 All full-time employees shall be entitled to the following vacation schedule: 0 - 12 months 1 - 3 years 4 - 9 years 10 - 14 years After 15 years 5/6 days per month 10 days per year 15 days per year 20 days per year One (1) additional day for each year up to twenty years for a maximum of 25 days AFSCME Labor Agreement Page 6 8.2 Vacations shall be granted at the time requested by the employee upon approval of Department Head. If the nature of the work makes it necessary to limit the number of employees on vacation at the same time, the employee with the greater departmental seniority shall be given his choice of vacation period. 8.3 If a holiday occurs during the calendar week in which a vacation is taken by an employee, the employee's vacation used shall be reduced by one work day. 8.4 Any employee who is laid off, discharged, retired or separated from the service of the EMPLOYER for any reason, prior to taking his vacation, shall be compensated in cash for the unused vacation he has accumulated at the time of separation. 8.5 Vacation may be taken in increments of less than a day with the approval of the Department Head. 8.6 Vacation time can be accumulated up to eighty (80) hours and used in the following year. Vacation in excess of eighty (80) hours at the end of the year shall be paid on the second (2nd) payday in January at the rate of pay in effect at the end of the previous year. 8.7 Vacation shall accrue on January 1st immediately preceding the anniversary date of employment. 8.8 An employee wishing to donate vacation hours may donate up to 40 hours of accrued vacation per calendar year to one or more City of Stillwater employees who are experiencing a catastrophic medical emergency involving illness or injury or who are providing care for a spouse or dependent child who has incurred a life-threatening illness/injury. A recipient's eligibility based on catastrophic medical emergency is determined by the City Administrator of his/her designee. Procedure for employees wishing to donate accrued vacation to another city employee(s) shall be in accordance with the City of Stillwater HR Policy Resolution No. 2001-178 as adopted by the City Council and updated September 17, 2009 Section 10-2A Vacation Time Donation. ARTICLE IX. SEVERANCE PAY 9.1 All permanent employees who leave the employment of the City because of retirement, resignation or death shall receive pay for 100 percent of unused accrued vacation and compensation time. 9.2 All permanent employees who retire due to age or physical disability and are eligible to receive PERA retirement benefits, shall receive one-half of unused disability benefits providing he or she had been employed with the City in a permanent, full time position for a period of not less than ten (10) years. AFSCME Labor Agreement Page 7 9.3 In the event of death while still employed, the surviving spouse, if any, or if no surviving spouse, minor children, if any, or employee's estate shall be entitled to such severance pay in the same amount as though such employee had retired due to age or physical disability as above provided. ARTICLE X. LEAVES 10.1 Funeral Leave (a) An employee shall be granted a paid funeral leave of up to three (3) working days in each case of death of the immediate family Immediate family shall be defined as the employee's spouse, children, parents, siblings, grandparents, grandchildren and shall include parents and siblings of the employee's spouse. Such leave shall not be deducted from any other accumulated leave. Additional leave days may be granted by the EMPLOYER, should the circumstances warrant the additional days. (b) One day with pay shall be allowed in the event an employee is selected to be a pallbearer m a funeral. (c) Emergency leave with pay for individuals not specified in 10.1a. shall be as specified in the City's personnel policy. 10.2 Employees shall be granted a leave of absence with pay any time they are required to report to jury duty or jury service. All fees shall be returned to the EMPLOYER except those paid for duty on the Employee's normal day off and those for meals and mileage. Any hours not on jury duty shall be worked. 10.3 Notice. An employee using jury duty or funeral leave shall notify the EMPLOYER of such intent as soon as the necessity of such leave is known. 10.4 Unpaid leaves for a limited period, not to exceed six months, may be granted for any reasonable purpose, and such leaves may be extended or renewed for any reasonable period. Employees shall submit a written request for personal leave to the City Council. All personal leaves shall be without compensation. (a) Application for Leave. Any request for a leave of absence without pay shall be submitted in writing by the Employee to the EMPLOYER or his designee. The request shall state the reason the leave is being requested and the length of time off the employee desires. (b) Employees shall be returned to the position in their department if the leave is for sixty (60) days or less and to their classification in their department if the leave is in excess of sixty (60) days. 10.5 UNION Business. Employees elected to a Local UNION office or selected by the UNION to do work which takes them from their employment with the EMPLOYER, shall at the written request of the UNION be granted a leave of absence. AFSCME Labor Agreement Page 8 10.6 Maternity. Maternity leave, not to exceed six (6) months, shall be granted at the request of the Employee. 10.7 Educational. Leave of absence shall be granted in accordance with the personnel regulations. ARTICLE XI. WAGES 11.1 Employees shall be paid in accordance with the attached salary schedule marked Appendix A and B (Monthly Salary Schedule). Effective 1/1/17, employee placed on step in new pay structure at designated grade that provides wage rate that is equal to or greater than 12/31/16 base wage and longevity pay combined. See attachment. Employees whose 12/31/16 base wage and longevity pay combined exceed the new Step 11 shall have their wage rate red circled and receive a 2.25% wage adjustment in a non -base lump sum payment for 2017 when back -wages are issued following execution of the Agreement, and a 2.5% wage adjustment in a non -base lump sum payment on or about January 1, 2018. Non -base lump sum payment calculated on employee's actual wage and not Step 11 wage. Annual step movement commences in 2018 and occurs thereafter on an annual basis effective on first day of first payroll period following employee's anniversary date. 11.2 An Employee who is called to duty during the employee's scheduled off-duty time shall receive a minimum of two (2) hours pay at one and one-half (1 1/2) times the employee's base pay rate. An extension or early report to a scheduled shift for duty does not qualify for the two (2) hour minimum. 11.3 Employees who are required to work exclusively at a higher classification in this bargaining unit shall receive working out of classification pay as provided for in Exhibit "C". 11.4 In the event an employee is promoted to a higher classification, the employee will be placed on the step in the designated grade of the higher classification that is at least a 5% increase in the employee's current salary. ARTICLE XII. OVERTIME 12.1 Time and one-half the employee's regular hourly rate of pay shall be paid for work performed in excess of the normal workweek of forty (40) hours. Compensated leave shall be considered worked hours for the purpose of determining eligibility for overtime compensation. 12.2 Distribution. Overtime work shall be distributed as equally as practical to qualified employees. 12.3 Overtime shall be calculated to the nearest fifteen (15) minutes. AFSCME Labor Agreement Page 9 12.4 Employees who elect to take compensatory time off in lieu of overtime pay, shall earn compensatory time at the rate of time and one-half. Compensatory time off shall be scheduled at the mutual convenience of the employer and employee. Employees shall not be allowed to accrue more than forty (40) hours of compensatory time or carry over more than forty (40) hours of compensatory time into the next calendar year without permission of employee' s supervisor. ARTICLE XIII. GRIEVANCE PROCEDURES 13.1 Defmition of Grievance. A grievance is defined as a dispute or disagreement as to the interpretation or application of specific terms and conditions of this agreement. An employee has the right to have UNION representation. 13.2 Organization Representatives. The City will recognize representatives designated by the UNION as the grievance representative of the bargaining unit having the duties and responsibilities established by this article. 13.3 Processing of Grievance. The aggrieved employee's representative shall be allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented to the EMPLOYER during normal working hours provided the employee and employee representative has notified the designated supervisor. 13.4 Grievance Procedure. Grievances shall be processed in the following manner: Step 1. The UNION Steward, with or without the employee, shall take up the grievance or dispute with the employee's immediate supervisor within ten (10) days of the employee's knowledge of its occurrence. The supervisor shall respond within five (5) workdays. Step 2. If the grievance is not settled in Step 1, it shall be referred in writing to the City Council, or their designee, within ten (10) working days after the designated supervisor's answer in Step 1. The EMPLOYER representative shall discuss the grievance within ten (10) working days with the employee and the UNION representative at a time mutually agreeable to the parties. If the grievance is settled as a result of such a meeting, the settlement shall be reduced in writing and signed by the EMPLOYER representative and the UNION. If no settlement is reached, the EMPLOYER representative shall give written answer to the UNION within ten (10) days following their meeting. Step 3. If the grievance is not settled in Step 2 and the UNION desires to appeal, it shall be referred by the UNION in writing to the City Council or their designee within ten (10) working days after the EMPLOYER's response in Step 2. A meeting between the City Council or their designee, and the UNION shall be held at a time mutually agreeable to the parties. If the grievance is settled as a result of such a meeting, the settlement shall be reduced to writing and signed by the City Council or their designee and the UNION. If no settlement is reached, the City Council or their designee shall give written answer to the UNION within ten (10) working days following the meeting. AFSCME Labor Agreement Page 10 Step 4. Arbitration. If the grievance is not settled in accordance with the foregoing procedure, either party may refer the grievance to arbitration within ten (10) working days after the UNION's receipt of the EMPLOYER's written answer in Step 3, as provided in Minnesota Statutes, Section 179.70. The selection of an arbitrator shall be made in accordance with the "Rules Governing the Arbitration of Grievances" as established by the Public Employment Relations Board. (a) The arbitrator shall have no right to amend, modify, nullify, ignore, add to or subtract from the terms and conditions of the contract. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the City and the Employee and the UNION, and shall have no authority to make a decision on any other issue not so submitted. (b) The arbitrator's decision shall be submitted in writing within thirty (30) days following close of the hearing or the submission of briefs, by the parties, whichever be later, unless the parties agree to an extension. The arbitrator shall be without power to make decisions contrary to or inconsistent with or modifying or varying in anyway, the application of laws, ordinances or rules and regulations having the force and effect of law. The decision shall be based solely on the arbitrator's interpretation of application of the express terms of the Agreement and to the facts of the grievance presented. The parties may, by mutual written agreement agree to submit more than one grievance to the arbitrator provided that each grievance will be considered as a separate issue and each on its own merit. (c) The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the City and the UNION, provided that each party shall be responsible for compensating its own representative and witnesses. If either party desires a verbatim record of the proceedings, it may cause such a record to be made, provided it pays for such a record. If both parties desire a verbatim record of the proceedings, the costs shall be shared equally. 13.5 Waiver. If a grievance is not presented within the time limits set forth above, it shall be considered "waived". If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the EMPLOYER' s last answer. If the EMPLOYER does not answer a grievance or an appeal therefore within the specified time limits or any agreed to extension, the employee and the UNION may elect to treat the grievance as denied at that step and appeal the grievance to the next step. The time limit in each step may be extended by mutual written agreement of the City and the UNION in each step. The term "working days" as used in this Article shall mean the days Monday through Friday, inclusive, exclusive of holidays. 13.6 Record. All documents, communications and records dealing with a grievance shall be filed separately from the personnel files of the involved employee(s). ARTICLE XIV. $ENIORITY AFSCME Labor Agreement Page 11 14.1 Seniority means an employee's length of continuous service with the City and by job classification. 14.2 The EMPLOYER shall provide to the UNION a seniority list showing the continuous service of each employee upon the UNION's request. The UNION shall only be permitted to make two (2) requests in any calendar year. 14.3 Breaks in Continuous Service. An employee's continuous service record shall be broken by voluntary resignation, discharge for just cause and retirement. 14.4 Probationary Periods. (a) All newly hired or rehired employees will serve a twelve (12) month probationary period. (b) All employees will serve a twelve (12) month probationary period in any job classification in which the employee has not served a probationary period. During the probationary period, an employee may return to their previously held position, provided that both job classifications are within this bargaining unit. (c) At any time during the probationary period a newly hired or rehired employee may be terminated at the sole discretion of the EMPLOYER. ARTICLE XV. WORK FORCE 15.1 Any vacancy or newly created position in a department will be posted in a conspicuous place in all departments where employees within the bargaining unit work and will be emailed to the Union Stewards. Such notice shall be posted for at least five (5) workdays prior to filling such vacancy or newly created position. Whenever practicable, vacancies shall be filled from among the present employees in the department, giving first consideration to seniority and qualification. If it becomes necessary in filling a vacancy to bypass an employee's seniority, reasons for said denial shall be given in writing to such employee. No vacancy shall be reduced in classification by the EMPLOYER without first being offered in the bidding process. 15.2 A reduction of the work force will be accomplished on the basis of seniority and job classification provided all probationary and temporary employees in the classification(s) where the lay off occurs are laid off first. In the event of layoffs or a reduction of the work force, employees may exercise their seniority rights to a job classification of a higher, the same or lower pay within the bargaining unit provided that all job relevant qualifications between employees are equal. 15.3 Employees shall be recalled from layoff according to seniority and job classification. No new employee shall be hired for a job classification which a layoff has occurred until all employees on layoff status within that job classification have been given ample opportunity to return to work within twenty-four (24) months of said layoff. The City will notify employees on layoff to return to work by registered mail at the employee's last recorded address. The employee must return to work within three (3) weeks of receipt of this notice in order to be eligible for reemployment. AFSCME Labor Agreement Page 12 ARTICLE XVI. INSURANCE 16.1 Single Coverage. The EMPLOYER will provide the full single health insurance premium for the base plan for employees who elect single coverage. 16.2 Dependent Coverage. (a) Effective January 1, 2017, the EMPLOYER will contribute up to a maximum of $1,166.86 per month per employee who elects dependent health insurance coverage. (b) Effective January 1, 2018, the EMPLOYER will contribute up to a maximum of $1,181.86 per month per employee who elects dependent health insurance coverage. (0) In no event shall the EMPLOYER contribute more than the premium cost. 16.3 Life Insurance. The City shall provide a $20,000 life insurance policy for permanent full time employees until age 70. After age 70, the policy shall be reduced by 50% and terminate at retirement. 16.4 Post -Retirement Coverage. Employees hired prior to December 31, 1988 and who retire after 10 continuous years of City service and who are eligible to receive PERA benefits shall be allowed to continue their medical insurance coverage at City expense until their death. If said employee provided dependent coverage for his/her spouse prior to his/her retirement, the City shall pay said dependent's coverage until death. 16.5 Committee. The EMPLOYER agrees it will create a labor management committee for the purposes of discussing insurance renewal and plan design. The UNION shall appoint a representative of the AFSCME Local 517 City of Stillwater to attend the committee meeting. The City will endeavor to schedule such meetings during work hours so that no loss of pay occurs, but shall not be subject to overtime payment if said meetings are at other hours. 16.6 Affordable Care Act. In the event the health insurance provisions of this Agreement fail to meet the requirements of the Affordable Care Act and its related regulations or cause the Employer to be subject to a penalty, tax or fine, the Union and the Employer will meet immediately to bargain over alternative provisions so 'as to comply with the Act and avoid and/or minimize any penalties, taxes or fines for the Employer. ARTICLE XVII. GENERAL PROVISIONS 17.1 Neither the UNION nor the EMPLOYER shall discriminate against any employee because of UNION membership or non membership, nor because of age, race, creed, gender, color, religious belief, sexual or affectional preference. 17.2 The EMPLOYER agrees to recognize stewards and alternates as certified by the UNION subject to the following stipulations: AFSCME Labor Agreement Page 13 (a) Employee UNION officers shall be granted a reasonable amount of time off without pay during work hours for union business, provided they notify their designated supervisor. (b) Non-employee representatives of the UNION shall be permitted to come on the premises of the EMPLOYER for the purpose of investigating and discussing grievances if they first notify the EMPLOYER's designee and provided the UNION representative does not interfere with the work of the employees. 17.3 Work Rules. The EMPLOYER shall have the right to establish work rules and personnel policies which shall be equitably and uniformly applied. Prior to the effective date, any work rule or policy shall be posted on all bulletin boards for a period of ten (10) consecutive workdays. In addition, copies shall be furnished to the UNION, and when effective, all existing rules and policies shall be furnished to all employees. New employees shall be furnished a copy of all work rules when hired. 17.4 City will provide all training required by the City at City expense. 17.5 Any subject matter placed in the Employee's personnel file which could be detrimental to the Employee's future promotion, transfer, present or future employment, shall be served upon the Employee in writing. Such matter shall be a proper subject for the grievance procedure. All materials in any Employee's file shall be available for the Employee's inspection. 17.6 The EMPLOYER shall provide required uniform articles and equipment to Secretary/Dispatchers and Community Service Officers. 17.7 The EMPLOYER shall provide City logo jacket and shirts for Building Inspectors and Engineer Techs. 17.8 Effective January 1, 2015, the City shall reimburse Building Inspectors and Engineer Techs up to $160.00 each for the first time purchase of an approved winter and summer type safety shoe. Thereafter, said employees shall be reimbursed one hundred percent (100%) of the cost, not to exceed $160.00 for the replacement of said safety shoes due to normal wear and tear or damage that is not due to negligence or careless action of the Employee. ARTICLE XVIII. SAVINGS CLAUSE Should any article, section or portion thereof, of the Agreement be held unlawful and unenforceable by any court of competent jurisdiction, such decision of the court shall apply only to the specified article, section or portion thereof directly specified in the decision; upon the issuance of such a decision, the parties agree immediately to negotiate a substitute for the invalidated article, section or portion thereof. ARTICLE XIX. EMPLOYER AUTHORITY 19.1 The EMPLOYER retains the full and unrestricted right to operate and manage all manpower, facilities and equipment; to establish functions and programs; to set and amend AFSCME Labor Agreement Page 14 budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct and determine the number of personnel; to establish work schedules; and to perform any inherent managerial functions not specifically limited by this Agreement. 19.2 Any term and condition of employment not specifically established or modified by this Agreement shall remain solely within the discretion of the EMPLOYER to modify, establish or eliminate. 19.3 Prior to contracting out or subcontracting any work performed by Employees covered by the Agreement, the City agrees to meet and confer with the UNION to discuss possible ways and means to minimize the elimination of positions covered by this Agreement. ARTICLE XX. EMPLOYEE RIGHTS 20.1 Employees shall have the right, freely and without fear to penalty or reprisal by the EMPLOYER to join and participate in the UNION. 20.2 Employees choosing to participate in the internal affairs of the UNION as an officer, steward or other capacity, may do so without fear of reprisal by the EMPLOYER for such participation consistent with the Employee's job duties and responsibilities and the provisions of this contract. ARTICLE XXI. DISCIPLINE 21.1 The EMPLOYER will discipline employees for just cause only. Discipline will be in one of the following forms: (a) Oral reprimand; (b) Written reprimand; (c) Suspension; (d) Demotion; or (e) Discharge. 21.2 Suspensions, demotions, and discharges will be in written form. 21.3 Written reprimands, notices of suspension, notices of demotion and notices of discharge which are to become part of an Employee's personnel file shall be read and acknowledged by signature of the Employee. Employees and the UNION will receive a copy of such reprimands and/or notices. 21.4 Employees may examine their own individual personnel files at reasonable times under the direct supervision of the EMPLOYER. AFSCME Labor Agreement Page 15 21.5 Employees will not be questioned concerning an investigation of the disciplinary action unless the employee has been given an opportunity to have a UNION representative present at such questioning. 21.6 Grievances relating to this Article shall be initiated by the UNION at step 3 of the grievance procedure under Article XIII (Grievance Procedures) of this AGREEMENT. ARTICLE XXII. WAIVER This Agreement shall represent the complete Agreement between the UNION and the EMPLOYER. The parties acknowledge that during the negotiations which resulted m the Agreement, each had the unlimited right and opportunity to make requests and proposals with respect to any subject or matter not removed by law from the area of collective bargaining, and that the complete understandings and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this Agreement. Therefore, the EMPLOYER and the UNION, for the life of this Agreement, each voluntarily and unqualifiedly waives the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter referred to or covered by this Agreement or with respect to any subject or matter not specifically referred to or covered by this Agreement, even though such subject or matter may not have been within the knowledge or contemplation of either or both parties at the time that they negotiated or signed this Agreement. ARTICLE XXIII. TERMINATION This Agreement shall be effective as of the first day of January 2017 and remain in full force and effect through the 31st day of December 2018. It shall be automatically renewed from year to year thereafter unless either party shall notify the other in writing by November 1st that it desires to modify this Agreement. This Agreement shall remain in full force and effect during the period of negotiations or until notice of termination of the Agreement is provided to the other party in the manner set forth in the following paragraph. In the event that either party desires to terminate this Agreement, written notice must be given to the other party not less than ten (10) days prior to the desired termination date. The termination date shall not be before the anniversary date set forth in the preceding paragra h. IN WITNESS WHEREOF, the parties hereto have set their hands this day of August, 2017. For the City of Stillwater Ted Kozlowski, Mayor For AFSCME Council 5 Local 517 John Ewaldt, Business Agent Diane Ward, City Clerk Rich Bo. t, Ne tiation Team Beth olf, Negotiatio /dam AFSCME Labor Agreement Page 16 AFSCME Labor Agreement Page 17 201' Base Pa- Structure (2:25%,) Position Title Grade Pay Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 2 $2,429.81 $2,533.94 $2,638.07 $2,742.21 $2,846.34 $2,950.48 $3,054.61 $3,158.75 $3,262.88 $3,367.02 $3,471.15 Administrative ' Assistant 4 $2,993.76 $3,122.07 $3,250.37 $3,378.68 $3,506.98 $3,635.28 $3,763.59 $3,891.89 $4,020.20 $4,148.50 $4,276.80 Engineering/Public Works Secretary Fire Dept. Secretary Permit Technician/ Secretary Community Service Officer 5 $3,323.08 $3,465.50 $3,607.91 $3,750.33 $3,892.75 $4,035.17 $4,177.58 $4,320.00 $4A62.42 $4,604.84 $4,747.25 Community Service Officer - Parking Senior Accounting Clerk 6 $3,688.62 $3,846.70 $4,004.78 $4,162.87 $4,320.95 $4,479.03 $4,637.12 $4,795.20 $4,953.28 1 $5,111.37 $5,269.45 Data Specialist Payroll HR Technician Building Inspector Community Resource Officer Engineering Tech 111 Zoning Administrator 7 $4,094.36 $4,269.84 $4,445.31 $4,620.78 $4,796.25 $4,971.73 $5,147.20 $5,322.67 $5,498.15 $5,673.62 $5,849.09 IS Technician Project Coordinator Engineer Tech IV 8 $4,544.74 $4,739.52 $4,934.29 $5,129.07 $5,323.84 $5,518.62 $5,713.39 $5,908.17 $6,102.94 $6,297.72 $6,492.49 MIS Specialist Assistant Finance Director 9 $5,044.67 $5,260.87 $5,477.07 $5,693.27 $5,909.47 $6,125.67 $6,341.87 $6,558.07 $6,774.27 $6,990.47 $7,206.67 Building Official Planner II AFSCME Labor Agreement Page 17 AFSCME Labor Agreement Page 18 '013 B<.,, ; a x_A S I ,f 2. oI Position Title Grade Pay Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 2 $2,490.55 $2,597.29 $2,704.03 $2,810.76 $2,917.50 $3,024.24 $3,130.98 $3,237.72 $3,344.45 $3,451.19 $3,557.93 Administrative Assistant 4 $3,068.61 $3,200.12 $3,331.63 $3,463.14 $3,594.65 $3,726.17 $3,857.68 $3,989.19 $4,120.70 $4,252.21 $4,383.72 Engineering/Public Works Secretary Fire Dept. Secretary Permit Technician/ Secretary Community Service Officer 5 $3,406.15 $3,552.13 $3,698.11 $3,844.09 $3,990.07 $4,136.05 $4,282.02 $4,428.00 $4,573.98 $4,719.96 $4,865.93 Community Service Officer - Parking Senior Accounting Clerk 6 $3,780.83 $3,942.87 $4,104.90 $4,266.94 $4,428.97 $4,591.01 $4,753.05 $4,915.08 $5,077.12 $5,239.15 $5,401.19 Data Specialist Payroll HR Technician Building Inspector Community Resource Officer Engineering Tech 111 Zoning Administrator 7 $4,196.72 $4,376.58 $4,556.44 $4,736.30 $4,916.16 $5,096.02 $5,275.88 $5,455.74 $5,635.60 $5,815.46 $5,995.32 IS Technician Project Coordinator Engineer Tech IV 8 $4,658.36 $4,858.01 $5,057.65 $5,257.30 $5,456.94 $5,656.58 $5,856.23 $6,055.87 $6,255.52 $6,455.16 $6,654.80 MIS Specialist Assistant Finance Director 9 $5,170.78 $5,392.39 $5,613.99 $5,835.60 $6,057.20 $6,278.81 $6,500.41 $6,722.02 $6,943.62 $7,165.23 $7,386.83 Building Official Planner 11 AFSCME Labor Agreement Page 18 EXHIBIT C MEMORANDUM 0 F UNDERSTANDING BETWEEN THE CiTY OFSTILLWATER A N D AFSCME COUNCIL 517 REGARDING WORKING OUT OF CLASSIFICATION PAY SUBJECT: WORKING OUT OF CLASSIFICATION PAY PURPOSE: To define and delineate circumstances when an employee will receive compensation for the performance of duties In a higher classification than he/she normally performs. APPLICABILITY: he provisions of this policy apply to AFSCME Council 517 City of Stillwater employees. STATEMENT OF POLICY AND UNDERSTANDING: 1, Compensation for working out of classiflcatlon Is prov!dod as monetary recognition to an employee for the assumption and performance of duties normally performed by an employee of higher classification. 2. The assumption and performance of the duties of the higher classtflcation must encompass the full range of responsibilities of the higher classification. This shall not apply to temporary assignments which ere made pursuant to prior mutual agreement between the employee and his or her Immediate supervisor for the purpose of providing a training opportunity to the employee. for a mutually agreed upon period of time. 3. The performance of such duties must be for an extended period of time, wherein a need exists to 'fulfill the duties end responsibilities of the vacant position. An extended period of time is generally considered as an assumption of duties and responsibilities That will last in excess of ten (1O) workdays. 4. Working out of classification compensation shall be allowed only atterwrltton recommendation of the department head and concurrence by the City Coordinator. Recommendation and designation shall be accomplished prior to the assumption of higher classification responsibilities. 5. The employee's cornponsatlon will be Increased by 5% to the next highest step of the higher classification In which the employee is substituting. 6. When the temporary assignment Is completed, the employee's salary will be readjusted to Its previous level on the level where it would have attained, Including general salary adjustment and w ithln range increases, if the out -of -classification pay had not been made. The employee's date of hire and anniversary date will remain unchanged throughout the temporary assignment. 19 AFSCME Labor Agreement Page 19 Exhibit D MEMORANDUM OF UNDERSTANDING Between The City of Stillwater and Local 517, Council No. 5 of the American Federation of State, County and Municipal Employees, AFL-CIO Contributions to Post Employment Health Care Savings Plan This Memorandum of Understanding Is entered Into between the City of Stillwater (hereafter "City") and AFSCME Local No. 517 (hereafter 'Union"). WHEREAS, the City and the Union are parties to a collective bargaining agreement; and; WHEREAS, Minn. Stat. § 352,98 allows the City to sponsor a post employment health care savings program that allows employees to save money to pay medical expenses and/or health Insurance premlums after termination of public service. NOW, THEREFORE, the parties hereto agree as follows: 1. All funds collected by the City on behalf of an employee will bo deposited Into an employee's Post Employment Health Care Savings Pian account administered by the Minnesota Post Employment Health Cara Savings Plan established under Minn. Stat. § 352.98 and as outlined In the Minnesota State Retirement System's (MSRS) Trust and Plan Documents, 2, Ail employees not covered under City Ordinance No. 844, which provides for the City's HospltatiMedical Insurance for Retired employees, will be considered eligible employees and will participate In the Post Employment Health Care Savings Plan. 3. Eligible employees shall contribute twenty-five dollars ($25.00) per paycheck to the employee's Post Employment Health Care Savings Plan. 4. Eligible employees shall contribute 50% of the severance pay benefit that Is due to the employee based on Article IX of the collective bargaining agreement to the employee's Post Employment Health Care Savings Plan upon separation of employment. 5. Any description of benefits contained In this Memorandum of Understanding Is intended to be Informational only. The management of contributed funds Into the Post Employment Health Care Savings Plan Is the responsibility of the Plan Administrator, Minnesota State Retirement System (MSRS), and the State Board. of Investment, their agents, employees or subcontractors 'and/or the investment option provider selected by the employee. The City's only obligation Is to deposit accrued monles 20 AFSCME Labor Agreement Page 20 as outlined by this Memorandum. The City has no other responsibilities or obligations and no -other claims can -or -shall --be madeagainstthe-City pursuant to this Memorandum. 6, This Memorandum of Understanding represents the full and complete agreement between the parties regarding this matter. For the City of Stillwa„Esr' aryckl, Mayor ,4<3thm(e For AFSCME Councll 5, Local 517: Carole Gerst, '-1;1 Mess Agent Diane Ward, City Clerk Jenni =r RoellNegotiation Team Date; /r c zt Pogge, Negotia'o Team 21 AFSCME Labor Agreement Page 21 Exhibit E MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF STILLWATER AND LOCAL 517 COUNCIL NO. 14 OF THE AMERICAN F1,DElIATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO SUBJECT: DRUG and ALCOHOL TESTING POLICY PURPOSE: To establish circumstances when an employee will be tested for drug use and alcohol consumption. APPLICABILITY: The provisions of this policy apply to all AFSCME (Local No. 517) employees. STATEMENT OF UNDERSTANDING: It is understood that the City of Stillwater and Local 517, Council No. 14 of the American Federation of State, County and Municipal Employees (AFSCME) AFL-CIO, have negotiated and agreed on the City of Stillwater Drug and Alcohol Testing Policy, as drafted April 6, 2000, as attached. In the event that Minnesota Statutes 181.950 through 181.957 Drug and Alcohol Testing in the Workplace, are amended, the parties shall open this Memorandum to negotiate the Subject of said Memorandum, FOR THE CITY OF STILLWATER: FOR. AFSCME (LOCAL NO. 517): eed 22 AFSCME Labor Agreement Page 22 Exhibit F MEMORANDUM OP UNDERSTANDING BETWEEN TEE CITY OF STILLWATER AND LOCAL 517 COUNCIL NO. 5 OF THE AMERICAN FEDERATION OF STATE, COUNTY A110 httJI'i1C11AL EMPLOYEES, AFL -C10 SUBJECT: APPLICATION OF AFSCME LABOR AGREEMENT TO EXEMPT EMPLOYEES PURPOSE: To establish language applicable to job classifications that aro designated as , "Exempt" under the Fair Labor Standards Act (FLSA). • l'I.LCAI3ILE] ' The_pro-visions oftb€Y.pollcy_apply_to.all-AFS.CMB.(Local.No..5.1 employees that aro appointed to a job olassWeation-that is designated as "Exempt" under the) Fair Labor Standards Act (FLSA). 'STATEMENT OF UNDERSTAND1NG: it is midcratood that the City of Stillwater and Local 517, Council No, 5 ,of the American Federation of State, County and Municipal Employees. (AFSCME) AFL -C10, have negotiated and agreed on the application of the AFSCME Labor Agreement to exempt employees. It has been agreed by the parties that any portions of the AFSCME labor agreement concerning overtime, compensatory time, and tali back time will not apply to job classifications that aro designated as"L'xorupt" imdor the Fair Libor Standards Act (PLSA). All other provisions of the Labor Agreorde l wilt rcmain.In full force and effect. "Exempt" employee&•are oliglble for time Wunder the City's Flex, i irne Po]€cy-. FOR TRE CITY OF STILIW :TER: Date:. •:4 `• Q`•7 • FOR AFSCME' (LOCAL NO, 5 i7): Date: 7/1p_ 23 AFSCME Labor Agreement Page 23 Exhibit G MEMORANDUM OF UNDERSTANDING Between CITY OF STILLWATER and AFSCME MIS Specialist On -Call This Memorandum of Understanding is entered into between the City of Stillwater (hereafter "City") and AFSCME (hereafter "Union"). WHEREAS, the City and the Union are parties to a collective bargaining agreement; WHEREAS, the City of Stillwater Information Systems staff rotate on-call duties; WHEREAS, on-call has been defined as occurring during the period of time after leaving the building or work location at the end of the regular shift and before the beginning of the next regularly scheduled shift over the course of a week (seven consecutive days); WHEREAS, the MIS Specialist has served on-call duties every third week. NOW, THEREFORE, the parties hereto agree as follows: 1. The City shall compensate the MIS Specialist $100 for every third week of on-call duties. Said payment shall be applied to the employee's annual salary in an equivalent amount of $1,700.00 effective January 1, 2017. This Memorandum of Understanding shall be effective January 1, 2017. In the event the MIS Specialist no longer serves on-call duties every third week, this Memorandum of Understanding shall expire. 3. This Memorandum of Understanding shall not constitute a precedent with regard to any subsequent negotiations or matters between the parties. 4. This Memorandum of Understanding represents the full and complete agreement between the parties regarding this matter. FOR THE ION: FOR THE CITY: AFSCME Labor Agreement Page 24 RESOLUTION 2017-148 CITY OF STILLWATER WASHINGTON COUNTY, MINNESOTA A RESOLUTION VACATING THE DRAINAGE AND UTILITY EASEMENTS IN LOT 1, BLOCK 1, LAKE HILL ACRES CASE NO. 2017-08 WHEREAS, Michael R. Meisterling and Dionne M. Meisterling ("Meisterlings") are the owners of Lot 1, Block 1, Lake Hill Acres, Washington County, Minnesota ("Property"); WHEREAS, drainage and utility easements are presently located within the Property; WHEREAS, Meisterlings and ILHC of Stillwater, LLC, a Delaware limited liability company, submitted an application to have the Property replatted as part of a new plat known as THE LAKES AT STILLWATER ("Final Plat"); WHEREAS, in connection with the Final Plat, the drainage and utility easements located within the Property were requested to be vacated as depicted on Exhibit A attached hereto; water; WHEREAS, the drainage and utility easements do not terminate at or abut upon public WHEREAS, it is in the public's interest to vacate the drainage and utility easements; and WHEREAS, the City of Stillwater approved the vacation of the drainage and utility easements in Resolution 2017-094 and approved the Final Plat by Resolution 2017-095 each enacted on May 16, 2017. NOW, THEREFORE, BE IT RESOLVED, that the City of Stillwater hereby vacates the drainage and utility easements on Lot 1, Block 1, Lake Hill Acres, as depicted on Exhibit A effective as of the date of this Resolution; and be it further RESOLVED, this Resolution shall constitute a notice of completion and the City Clerk is hereby authorized and directed to file this Resolution with the office of the County Auditor to be entered into the transfer record and then record it with the office of the County Recorder. Adopted effective as of May 16, 2017 CITY OF STILLWATER Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk Administration August 2, 2017 Wayne Sandberg Washington County Engineer 11660 Myeron Road North Stillwater Mn 55082 Support for Transportation Economic Development program funding for the Trunk Highway (TII) 36/County State Aid Highway(CSAH) 36/Manning Avenue Interchange Project Dear Mr. Sandberg, The City of Stillwater strongly supports Washington County's application to the Transportation Economic Development (TED) program for funding of the TH 36/ CSAH 15/Manning Avenue interchange. We understand this program is designed to help meet the state's transportation and economic development needs by creating and preserving well -paying jobs and leveraging private and local investment in transportation infrastructure. The City of Stillwater, Washington County, and MnDOT have been working to address safety and mobility issues along the TH 36 Corridor for the past decade and have been actively working to promote job growth in the area. The improvements will enhance the transportation network along TH 36 while providing improved access to the Gateway Area. This will create improved opportunities for new development including Lakeview Hospital and related future land uses in the area Thank you for your ongoing support and commitment to get this interchange completed. If you have any questions, comments, or concerns, please do not hesitate to contact me Regards, Ted Kozlowski, Mayor City of Stillwater Cc: Ann Pung-Terwedo, Senior Planner 216 4th Street N, Stillwater, MN 55082 651-430-8800 Website: www.ci.stillwater.mn.us Doug Menikheim From: Doug Menikheim <dmenikheim@ci.stillwater.mn.us> Sent: Friday, July 28, 2017 12:42 PM To: dmenikheim@leadershipfingerprint.com Subject: Fwd: Ecumen Senior Living facility within Stillwater city limits Sent from my iPad Begin forwarded message: From: Kathy Frost<kathvafrost@gmail.com<mailto:kathyafrost@gmaiLcom» Date: July 27, 2017 at 18:42:08 CDT To: <tkozlowski@ci.stifwater.mn.us<mailto:tkozlowski@ci.stillwater.mn.us», <dmenikheim@ci.stillwater.mn.us<mailto:dmenikheim@ci.stillwater.mn.us», <djunker@ci.stillwater.mn.us<mailto:diunker@ci.stillwater.mn.us», <tweidner@ci.stillwater.m n.us<ma ilto:tweidner@ci.stillwater.mn. us», <mpolehna@ci.stillwater.mn.us<mailto:mpolehna@cistillwater.mn.us» Subject: Ecumen Senior Living facility within Stillwater city limits Dear Mayor Kozlowski, and council members Mr. Menikheim, Mr, Junker, Mr, Weidner, and Mr, Polehna, I am writing to you today to speak IN FAVOR of approving the Planned Unit Development application by Our Savior's Lutheran Church and Ecumen through the special use permitting process. My husband and I have been residents of Stillwater, and active members of Our Savior's Lutheran Church, since 1989 when we moved into the Croixwood neighborhood. We have seen many changes within the city during the past 28 years. One area that has not changed, though, is the availability of senior housing options within the city limits. According to the census figures published in Wikipedia, Stillwater's population in 2010 was 18,225 with 12.8% of them being seniors aged 65 and older. That percentage works out to be over 2300 individuals who, if they are still living today, would be over 72 years old. For many seniors, it is not possible to stay in their own homes for the remainder of their lives. Many need assistance with activities of daily living and many do not have families in the area to help with those daily activities. As you know, Stillwater does have rehab and skilled care facilities (Good Samaritan and the Golden Livingcenters), but I did not find any independent/assisted living options within the city limits. Wouldn't it be a blessing to those seniors who need assistance to be able to stay in their community and still have access to the help they need? And wouldn't it be an even greater blessing for them to have access to the spiritual and emotional support that could be found if they had easy access to a worshiping and service-oriented community, no driving necessary? I understand there are a number of concerns by Our Savior's neighbors about the potential building project. I have heard about traffic concerns, but want to note that the lighted intersection of 75th St N and Maryknoll and the completion of the upcoming bridge project will more than likely have a positive impact on the traffic in the area. I have heard concerns about the height of the building, but believe the positive impact to local seniors and the added employment opportunities for locals are worth serious consideration. 1 We see many opportunities to work together with Ecumen to benefit seniors living in the Stillwater area. Please support this project and let the building begin. Sincerely, Kathy Frost 825 Nightingale Blvd, Stillwater 2 Stillwater Main Street Stairs "1 • The Birthplace of Minnesota When Stillwater was founded in the mid -19th century, there was no easy way to reach what's now known as the South Hill, the area above these Main Street stairs. "Nelson's Field," as it was called then (named for Socrates Nelson, an early settler), sat atop a bluff more than 100 feet high. But unlike the North Hill, at the North end of town and accessible from the Laurel Street stairs located next to the Warden's House, no streets connected it to the downtown below. And cre- ating such a connection would be a major engineering task. Building staircases, on the other hand, was doable. Based on the mention of a "bluff staircase" in the Stillwater Messenger, the local newspaper at the time, historians believe the Main Street Stairs were constructed in 1857. One source suggests the stair inspiration was from the local brew master, whose commute to the brewery was made swifter with the stairs directly connecting the house and brewery. Regardless, the stairs quickly became a public asset, allowing more people to build homes at the top and reach the downtown with relative ease. Initially made of wood, the Main Street Stairs were extended, altered and rebuilt numerous times, finally being replaced in the late 19th century with the concrete version that exists today. Stillwater has seven sets of stairs and an extensive trail network that support our very active community. Residents and visitors alike may walk downtown to the Brown's Creek State Trail and go north to lead them toward St. Paul via the Gateway Trail, or choose to go south and enjoy the six -mile St. Croix River Crossing loop. Many stay right here and climb to the top for the challenge and the incredible views. 1 mile Empire State Building Mount Kilimanjaro Mount Everest 4 sets of stairs 12 sets of stairs 246 sets of stairs 370 sets These stairs are fondly regarded by many. A special thanks to the local community organizations, businesses and individuals who donated to make them more beautiful. Stillwater Area Foundation 1 Bailies Nurseries 1 Xtreme Concrete 1 O'Neil Electric 1 Werner Electric I Holophane 1 Trumi Training 6ITIMO ME A r L_Ell Sfiliwater The Birthplace of Minnesota Stillwater Main Street Stairs When Stillwater was founded in the mid -19th century, there was no easy way to reach what's now known as the South Hill, the area above these Main Street stairs. "Nelson's Field," as it was called then (named for Socrates Nelson, an early settler), sat atop a bluff more than 100 feet high. But unlike the North Hill, at the North end of town and accessible from the Laurel Street stairs located next to the Warden's House, no streets connected it to the downtown below. And creating such a connection would be a major engineering task. Building staircases, on the other hand, was doable. Based on the mention of a "bluff staircase" in the Stillwater Messenger, the local newspaper at the time, historians believe the Main Street Stairs were constructed in 1857. One source suggests the stair inspiration was from the local brew master, whose commute to the brewery was made swifter with the stairs directly connecting the house and brewery. Regardless, the stairs quickly became a public asset, allowing more people to build homes at the top and reach the downtown with relative ease. Initially made of wood, the Main Street Stairs were extended, altered and rebuilt numerous times, finally being replaced in the late 19th century with the concrete version that exists today. Stillwater has seven sets of stairs and an extensive trail network that support our very active community. Residents and visitors alike may walk downtown to the Brown's Creek State Trail and go north to lead them toward St. Paul via the Gateway Trail, or choose to go south and enjoy the six -mile St. Croix River Crossing loop. Many stay right here and climb to the top for the challenge and the incredible views. 1 mile Empire State Building Mount Kilimanjaro Mount Everest 4 sets of stairs 12 sets of stairs 246 sets of stairs 370 sets P. . • 1 0* r IJ I NM These stairs are fondly regarded by many. A special thanks to the local community organizations, businesses and individuals who donated to make them more beautiful. Stillwater Area Foundation 1 Bailies Nurseries 1 Xtreme Concrete 1 O'Neil Electric 1 Werner Electric 1 Holophane 1 Trumi Training Washington - County Office of Administration Molly F. O'Rourke, County Administrator Kevin Corbid, Deputy Administrator MEMORANDUM Date: July 24, 2017 To: Washington County Chambers of Commerce, Mayors nd City Administrators From: Molly O'Rourke, Washington County Administrator Re: Communications from MN DOR about transition from CTIB to Washington County transportation sales tax I want to clear up some confusion that has come to our attention about the changes in Washington County sales tax and how they are being communicated by the MN Department of Revenue (MN DOR). Businesses in Washington County this week are receiving a form letter from the MN DOR indicating that the 0.25 percent transit improvement sales and use tax funding the Counties Transit Improvement Board (CTIB) will be ending, with an effective date of September 30, 2017. The intent of the letter was to notify the businesses that their accounts have already been updated to reflect this change. That information is correct. However, the Washington County Board of Commissioners have authorized a 0.25 percent sales tax for transportation and transit purposes to begin October 1, 2017, so the sales tax rate in Washington County will not change. Businesses should be advised to take no action to their current sales tax collection processes and/or software because of this letter. Although the sales tax rate will not change, where that revenue is spent will be very different. The transit improvement tax that is ending was revenue to fund the Counties Transit Improvement Board (CTIB) that funded projects across the metro area. With this new sales tax, beginning in October, 100 percent of the revenue will go towards transportation and transit projects in Washington County. We expect that the Department of Revenue will be issuing another notice about the new Washington County transit and transportation sales tax in the near future, although at this point it is not clear when. In the meantime, please do not hesitate to contact Public Works Director Don Theisen (651-430-4304) or (don.theisen@co.washington.mn.us) or myself with any comments or questions. Cc: Washington County Board of Commissioners Don Theisen, Public Works Director Tabatha Hansen, Accounting & Finance Director Barbara Dacy, Community Development Agency Executive Director Chris Eng, Community Development Agency Economic Development Director Government Center • 14949 62nd Street North • P. d. Box 6 • Stillwater, MN 55082-0006 Telephone: 651-430-6001 • Fax: 651-430-6017 • TTY: 651-430-6246 www.co.washington.m n. us Washington County is an equal opportunity organization and employer ftijwater The Birthplace of Minnesota REGULAR MEETING RECESSED MEETING 216 4th Street N, Stillwater, MN 55082 651-430-8800 www.ci.stillwater.mn.us AGENDA CITY COUNCIL MEETING August 2, 2017 (Changed from August 1, 2017) 4:30 P.M. AGENDA I. CALL TO ORDER II. ROLL CALL III. OTHER BUSINESS 1. Possible approval of development agreement for TIF #12 2. Discussion on layout for Close the Bridge Event - August 12, 2017 IV. STAFF REPORTS 3. Police Chief 4. Fire Chief 5. City Clerk 6. Community Development Dir. 7. Public Works Dir. 8. Finance Director 9. City Attorney 10. City Administrator 5:30 P.M. AGENDA (CHANGED FROM 7:00 P.M.) 4:30 P.M. 5:30 P.M. V. CALL TO ORDER VI. ROLL CALL VII. PLEDGE OF ALLEGIANCE VIII. APPROVAL OF MINUTES 11. Possible approval of July 11, 2017 regular and recessed meeting minutes and July 18, 2017 regular meeting minutes IX. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS 13. Comprehensive Financial Report Audit - Chris Knopik, ClifftonLarsonAllen X. OPEN FORUM The Open Forum is a portion of the Council meeting to address Council on subjects which are not a part of the meeting agenda. The Council may take action or reply at the time of the statement or may give direction to staff regarding investigation of the concerns expressed. Out of respect for others in attendance, please limit your comments to 5 minutes or less. XI. CONSENT AGENDA (ROLL CALL) all items listed under the consent agenda are considered to be routine by the city council and will be enacted by one motion. There will be no separate discussion on these items unless a council member or citizen so requests, in which event, the items will be removed from the consent agenda and considered separately. 12. Resolution 2017-145, directing payment of bills 13. Resolution 2017-146, approving the 2017-2018 Labor Agreement between the City of Stillwater and American Federation of State, County and Municipal Employees Minnesota Council No. 5, Local 517 AFL-CIO (available Wednesday) 14. Possible approval of Temporary Liquor License - August 12, 2017 - The Local's - Closing of the Bridge 15. Resolution 2017-147, approving the 2017 Rivertown Fall Art Festival Special Event, Contract and Temporary Liquor License 16. Possible approval of utility bill adjustments XII. PUBLIC HEARINGS - OUT OF RESPECT FOR OTHERS IN ATTENDANCE, PLEASE LIMIT YOUR COMMENTS TO 10 MINUTES OR LESS. XIII. UNFINISHED BUSINESS 17. Possible approval of concept PUD for senior living housing facility - Ecumen (Resolution - Roll Call) XIV. NEW BUSINESS 18. Request for Proposals - 2018 Comp Plan 19. Possible acceptance and approval of the Main Street Stairs Information/Interpretative Signage (Resolution - Roll Call) XV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS (CONTINUED) XVI. COMMUNICATIONS/REQUESTS XVII. COUNCIL REQUEST ITEMS XVIII. STAFF REPORTS (CONTINUED) XIX. ADJOURNMENT Second Draft July 28, 2017 CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE CITY OF STILLWATER, MINNESOTA MIDNIGHT ' AL ESTATE, LLC A MINNESOTA LIMITED LIABILITY COMPANY This document was drafted by: David T. Magnuson Magnuson Law Firm 324 Main Street South, #260 Stillwater, MN 55082-5165 651/439-9464 TABLE OF CONTENTS Section 1.1. Definitions 2 Section 2.1. Representations by the City. 4 Section 2.2. Representations and Warranties by the Redeveloper 5 Section 3.1. Conditions Precedent to City Actions. 6 Section 3.2. Limitation on City Financial Obligations. 6 Section 3.3. The City Responsibility. 7 Section 3.4. Redeveloper's Responsibility. 8 Section 4.1. Construction of Minimum Improvements. 10 Section 4.2. Construction Plans, Changes. 10 Section 4.3. Commencement and Completion of Construction 10 Section 4.4. Certificate of Completion. 11 Section 4.5. Indemnity 11 Section 5.1. Insurance. 11 Section 6.1. Real Property Taxes 13 Section 7.1. Financing 14 Section 7.2. Limitation Upon Encumbrance of Property 14 Section 8.1. Representation as to Redevelopment. 15 Section 9.1. Events of Default Defined. 15 Section 9.2. Remedies on Default. 17 Section 9.3. No Remedy Exclusive 17 Section 9.4. No Additional Waiver Implied by One Waiver. 17 Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. 18 Section 10.2. Equal Employment Opportunity. 18 Section 10.3. Titles of Articles and Sections. 18 Section 10.4. Notices and Demands 18 Section 10.5. Counterparts. 19 Exhibit A Exhibit B Exhibit C Exhibit D Redeveloper Minimum Improvements Assessment Agreement Certificate of Completion Parking Facility -i- CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, (the "Redevelopment Contract") effective the day of , 20 between THE CITY OF STILLWATER (the "City"), a home rule charter city of the State of Minnesota, having its principal offices at 216 North 4th Street, Stillwater, Minnesota 55082, and MIDNIGHT REAL ESTATE (the "Redeveloper"), a Minnesota limited liability company, having its principal office at 314 1St Avenue North, Suite 300, Minneapolis, Minnesota 95401. WITNESSETH: WHEREAS, the City is a home rule charter city organized and existing pursuant to the Constitution and laws of the State of Minnesota and is governed by the Council of the City; and `V'lIEREAS, pursuant to the iviunicipal 'Development District Act, iviinnesota Statutes, Section 469.124-469.134, as amended, the Council is authorized to establish development districts in order to provide for the development and redevelopment of the City; and WHEREAS, the Council of the City has adopted a development program (the "Program") pursuant to the Municipal Development District Act; and has established a development district (the "Development District") pursuant to the Municipal Development District Act; and will establish Tax Increment Financing District No. 12 (the "Financing District") and adopted a Tax Increment Financing Plan (the "Plan") also pursuant to Minn Stat. §469.174 through §469.179 of the State of Minnesota; and WHEREAS, the major objectives of the Council in establishing the Development District were to: remove, prevent, or reduce blight, blighting factors, causes of blight, or the spread of blight and deterioration; eliminate unsafe structures and conditions; provide land for needed public parking, utilities, and facilities; remove incompatible land uses, eliminate obsolete or detrimental uses; and assemble land for redevelopment; and WHEREAS, the City believes that the development and redevelopment of the Development District and the Financing District pursuant to this Agreement, and fulfillment generally of the terms of this Agreement, are in the vital and best interests of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state and local laws under which the Program and the tax increment financing plan is being undertaken, and; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE 1 Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: 1.1.1. "Act" means collectively the Municipal Development District Act, Minn. Stat. §469.124 et seq., as amended, and Minn. Stat. §469.174 through §469.179. 1.1.2. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. 1.1.3. "Assessment Agreement" means an agreement made pursuant to Minn. Stat. §469.177, Subd. 8, a copy of which is attached as Exhibit B. 1.1.4. "Available Tax Increments" means those tax increments actually received in the six months preceding each date of payment of the balance of the Tax Increment described in Section 3.3.2 B. from the Redevelopment Property. 1.1.5. "Certificate of Completion" means the certification, in the foini of the certificate contained in Exhibit C attached to and made a part of this Agreement, provided to the Redeveloper, pursuant to Section 4.4 of this Agreement. 1.1.6. "City" means the City of Stillwater, Minnesota. 1.1.7. City Pre CIC Parcel means Lots 1 and 2, Block 18 and the original Town, now City, according to the perfected plat, Washington County, Minnesota. 1.1.8. Redeveloper Pre CIC Parcel means Lots 3 and 4, Block 18 of the original Town, now City, according to the perfected plat, Washington County, Minnesota. 1.1.9. "Construction Plans" means the plans, specifications, drawings and related documents for the construction work to be performed by the Redeveloper on the Redevelopment Property which (a) are the plans, specifications, drawings and related documents which are submitted to the building inspector of the City; and (b) must include at least the following: (i) site plan; (ii) foundation plan; (iii) floor plan for each floor; (iv) elevations (one side); (v) facade and landscape plan; and (vi) such other plans or sunnlements to the fnreca a nine mane as the city mnv r- --- supplements ---- r- � � reasonably request. 2 1.1.10. "County" means the County of Washington, Minnesota. 1.1.11. "Development District" means Municipal Development District No. 1 created by the City. 1.1.12. "Event of Default" means an action by the Redeveloper described in Section 9.1 of this Agreement. 1.1.13. "Holder" means the grantee under any Mortgage. 1.1.14. "Minimum . Improvements" means the improvements to be constructed by the Redeveloper on the Redevelopment Property, as detailed in the construction plans, a general description is attached hereto as Exhibit A. 1.1.15. "Minnesota Environmental Policy Act" means the statutes located at Minn. Stat. §116D.01 et seq., as amended. 1.1.16. "Minnesota Environmental Rights Act" means the statutes located at Minn Stat. §116B.01 et seq., as amended. 1.1.17. "National Environmental Policy Act" means the federal law located at 42 U.S.C. 4331 et seq., as amended. 1.1.18. "Net Proceeds" means any proceeds paid by an insurer to the Redeveloper or the City under a policy or policies of insurance required to be provided and maintained by the Redeveloper pursuant to Article 5 of this Agreement and remaining after deducting all expenses (including fees and disbursements of counsel) incurred in the collection of the proceeds. 1.1.19. "Parking Facility" means a two-level parking structure described in Exhibit D, pages 1 and 2. 1.1.20. "Permitted Encumbrances" means the encumbrances described in Section 7.2 of this Agreement. 1.1.21. "Program" means the development program approved by the City in connection with the creation of the Development District, as it may be amended or modified. 1.1.22. "Project" means the construction of the Minimum Improvements on the Redevelopment Property and the construction of the Public Improvements by the Redeveloper. 1.1.23. "Public Improvements" means any public improvements to be constructed by the Redeveloper. 1.1.24. "Redeveloper" means Midnight Real Estate, LLC, a Minnesota limited liability company, or an assignee permitted by Section 8.1.1 of this Agreement. 1.1.25. "Redevelopment Property" means the property described in Schedule A of the assessment agreement. 1.1.26. "State" means the State of Minnesota. 1.1.27. "Unavoidable Delays" means delays which are the direct result of strikes, other labor troubles, fire, unreasonable weather, floods or other casualty to the Minimum Improvements litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly result in delays, shortage of materials, war, terroristic acts, acts of God, or any other cause beyond the reasonable control of Redeveloper. ARTICLE 2 Representations and Warranties; Interpretive Rule Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: 2.1.1. The City is a charter city of the State with all the powers of a charter city duly organized and existing under the laws of the State. 2.1.2. The City has created, adopted and approved the Development District in accordance with the terms of Minn. Stat. §469.124 — 469.134, known as the City Development District Act. 2.1.3. The City has created Tax Increment District No. 12, a Redevelopment District and has presented the District to the Washington County Auditor for certification of the original net tax capacity prior to July 1, 2017, and has elected that fiscal disparity payments will not be the obligation of the District. 2.1.4. The City has adopted a Business Subsidy Policy as required by Minn. Stat. §116J.993, et seq., however, the assistance provided pursuant to this Agreement is not a business subsidy pursuant to Minn. Stat. §116J993, subd. 3(7) and (17). 2.1.5. As of the date of execution of this Agreement, the City L_._ received _ __tion -from - local, stat or federal 11AS lel)e1vGU 11U notice or 1:01111111A1111:Q.L1U11 llUlll ally 1VGQL, state or official that the activities of the Redeveloper or City in the Financing District may be or will be in violation of any environmental law or -4 regulation. As of the date of execution of this Agreement, the City is aware of no facts, the existence of which could cause the Redevelopment Property to be in violation of any local, state or federal environmental law, regulation or review procedure or which would give any person a valid claim under the Minnesota Environmental Rights Act. 2.1.6. Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions this Agreement is prevented, limited by or conflicts with or results in a breach of the terms, conditions or provisions of statute, home rule charter, ordinance, any evidence of indebtedness, agreement or instrument of whatever nature to which the City is now a party or by which it is bound, or constitutes a default under any of the foregoing. Sertinn 2.2_ Renrecentatinns and Warrnnties by the Redevelnner The Redeveloper represents and warrants that: 2.2.1. The Redeveloper will construct, operate and maintain the Minimum Improvements in accordance with the terms of this Agreement, the Assessment Agreement, and all local, state and federal laws and regulations including, but not limited to, environmental, zoning, building code and public health laws and regulations. This will not warrant the conduct of tenants that might occupy the Minimum Improvements under a lease or operating agreement. 2.2.2. At such time or times as will be required by law, the Redeveloper will have complied with all applicable local, state and federal environmental laws and regulations. As of the date of execution of this Agreement, the Redeveloper has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or the City in the Financing District may be or will be in violation of any environmental law or regulation. As of the date of execution of this Agreement, the Redeveloper is aware of no facts the existence of which could cause the Redevelopment Property to be in violation of any local, state or federal environmental law, regulation or review procedure or which would give any person a valid claim under the Minnesota Environmental Rights Act. 2.2.3. Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of ag -------t -r i t -----en _1 vv-hatever nature o GV1UG11GGS Vl indebtedness, agreement or instrument of WllQLGVGl 11ClLLL1G to which the Redeveloper is now a party or by which it is bound, or constitutes a default under any of the foregoing. 5 2.2.4. The Redeveloper agrees that it will indemnify, defend, and hold harmless the City, its governing body members, officers, employees, agents and contractors, from any and all claims or causes of action, of whatsoever nature, arising or purportedly arising out of the actions of the Redeveloper, its officers, employees, agents or contractors in connection with this Agreement or the construction, installation, ownership or operation of the Minimum Improvements; except for claims caused by the negligence of the City or its contractors or assigns. ARTICLE 3 City and Redeveloper Responsibility Section 3.1. Conditions Precedent to City Actions. Without limiting any other provision of this Agreement, the City will not be obligated to provide Tax Increment Assistance unless and until the following conditions have been satisfied with respect to the Redevelopment Property and the Minimum Improvements to be constructed thereon, all of which must be satisfied or waived in writing by October 15, 2017. 3.1.1. The Redeveloper has funded mortgage financing or owner's equity in at least the amount sufficient to fund the construction of the Minimum Improvements. 3.1.2. The Redeveloper has submitted to the City that executed binding construction contracts that will provide for construction of the Minimum Improvements within the time frames specified for the construction in this Agreement. 3.1.3. The Redeveloper has received a design permitting special, conditional or planned development permit for the Private Improvements and building permit as required by Heritage Preservation Committee ("HPC"), the City Planning Commission, the Stillwater Community Development Director, the Building Official, the City Engineer, and the City Council, and the design of the infrastructure and privately constructed utilities have been approved by the City. The City will process any application filed by the Redeveloper expeditiously and in good faith. When lawfully allowed to do so, the City will assist the Redeveloper in obtaining necessary permits from other government agencies. 3.1.4. The Redeveloper executes and delivers to the City the Assessment Agreement attached to this Agreement as Exhibit B. Section 3.2. Limitation on City Financial Obligations. 3.2.1. In no event will the City be obligated to expend any more funds than expressly described in this agreement. 6 3.2.2. In the event that the Redeveloper has not satisfied all conditions by October 15, 2017, subject to an extension for unavoidable delays, or such other date as the parties agree in writing, this will be an Event of Default. Section 3.3. The City Responsibility. 3.3.1. The City covenants that the following actions will be taken and during the term of this Agreement: A. The City will form a Minnesota Limited Liability Company (LLC) for the purpose of facilitating conversion of the Redeveloper Pre CIC parcel and the City Pre CIC Parcel into a Two Unit CIC, for future ownership of the Parking Facility. The form of Articles of Organization and Operating Agreement for the LLC is attached to the Agreement as Exhibit . Upon the receipt of a Certificate of Organization evidencing the existence of the LLC, the City will Quit Claim to the LLC, in trust tor that limited purpose, the City Pre CIC Parcel, and the Redeveloper will quit claim to the LLC, in trust for that limited purpose, the Redeveloper Pre CIC parcel. B. Once the Redevelopers Pre CIC Parcel and the City Pre CIC Parcel have been conveyed to the LLC, the City, through the LLC, will undertake the completion and execution of a Common Interest Community (CIC) as needed to subdivide the combined parcels into two horizontal Units, common wall easements and access easements, One Unit containing the Surface Parking Area for conveyance to the Redeveloper and the one unit containing the Deck Parking Area for conveyance to the City. C. The City and the Redeveloper, if needed, will form an Association and related Minnesota non-profit corporation to administer the CIC and any common area expense once that Parking Facility is operational. D. The conveyance of the Deck parking Area CIC Unit to the City, will contain a reservation, that air rights, above the surface of the unit will be reserved to the City for the adding of additional floors of parking and or additional floors of housing. In addition, the adding of additional floors for uses other than parking or housing will need the written consent of the Redevelopers. Further, the conveyance will recognize that in the event of the sale or transfer of the City Unit, the Redevelopers will have a right of first refusal for a period of 6 months after notice. The CIC Documents, and the terms of the reservations and grants described in this section will need the approval of the Redeveloper's lawyer and the Redeveloper's lender. 3.3.2. Tax Increment Assistance. The City will provide Tax Increment n ssist„r„e to reimburse the Redeveloper for „ portion ,. fthe cost 111L11i1111J11L 1 1JLQ11.. to 1111111UUl JL L11L 1\I.UI. Vl.1V�Jl.1 1V1 a p JIL1V11 JL L11LJ '.AJ of eligible PARKING Improvement expenses in the amount of $ Payment of the Tax Increment Assistance will be payable as follows: 7 A. Provided that no Event of Default has occurred and be continuing hereunder and the balance of the Tax Increment Assistance is payable from Available Tax Increments on each February 1 and August 1, commencing August 1, 2019, if the Minimum Improvements are completed by December 31, 2018 or commencing on August 1, 2020, if the Minimum Improvements are completed after December 31, 2019. B. The City agrees to issue at the request of the Redeveloper a PAY GO Tax Increment Note in the amount if the Note can be amortized from Available Tax Increments, at an interest rate of 3.25%. C. The sole source of funds, if any, from which the City is obligated to pay the Tax Increment Assistance is the Available Tax Increments derived from the Redevelopment Property in the six months preceding each date of payment and nothing herein may be construed to obligate the City to use any of its general fends or ether municipal fiords to reimhnrse the Redeveloper for eligible costs, and in no event shall the City be required to use any of its general funds or other municipal funds for any purpose, including for the purpose of reimbursing the Redeveloper or any of its creditors or assigns. D. The obligation of the City to apply Available Tax Increments to payment of the Tax Increment Assistance terminates on the earlier of: (i) February 1, 2040; (ii) upon the occurrence of an Event of Default hereunder. (iii) Upon completion of the payment of the tax increment described in this section. E. It is the obligation of the Redeveloper or its Mortgage Lender to submit to the City in a timely manner, proof of payment of site improvement expenses in a format approved by the City Treasurer and as required by the Minnesota Tax Increment Financing Act. Section 3.4. Redeveloper's Responsibility. 3.4.1. Minimum Improvements. The Redeveloper will construct the Minimum Improvements according to the Terms set forth in Article 4. A. Upon the receipt of Certificate of Organization evidencing the existence of the LLC formed for the purpose of facility conversion of the Two Unit CIC for future ownership of the Parking Facility, the Redeveloper will Quit Claim the Redeveloper Pre CIC parcel to the LLC, in Trust for limited purpose of conversion to the CIC. 3.4.2. As Built Plan. Within sixty (60) days after completion of construction of the the Minimum Tmnrnvements� thrnw ih its cnntractnr or engineer, must prepare and file with the City a full set of "as built" plans, showing the location of connection to municipal utilities. Failure to 8 file the "as built" plans as required by this Section will be grounds for the City to suspend the issuance of certificates of occupancy. 3.4.3. Erosion Control Measures During Construction. The Redeveloper agrees that it will construct erosion control devices in conformance with the approved Construction Plans for the Public and Minimum Improvements. The erosion control plan must protect any ponds, wetlands and the St. Croix River from erosion, pollution and siltation throughout the construction of the Minimum Improvements. Any deficiency or failure of erosion control must be corrected within a reasonable time after written notice. 3.4.4. City Regulations. The Redeveloper acknowledges that the Redevelopment property is regulated by the City and it must comply with the following: A. A National Pollution Discharge Elimination System general storm water permit for construction activity must be obtained by the Redeveloper or its agent, from the MPCA before grading begins. B. The Redeveloper must comply with all conditions of approval imposed by the City in any permit or approval granted by the City during approval of the Project. C. Payment of any fees or charges nomially due at the time of issuance of any building permits and payment of any hook—up charges imposed on the Redevelopment Property. 3.4.5. Damage to City, County and State Facilities. During construction of the Minimum Improvements, the Redeveloper will be responsible for any damage caused to any City, County and State facilities or improvements including roads, storm water systems, sewer and water facilities whether done by the Redeveloper, its contractors, agents or employees and for any repair or clean-up costs or expenses incurred by the City, County and State in taking remedial action. 3.4.6. Final Inspection. At the written request of the Redeveloper and upon completion of the Minimum Improvements, the City Engineer or designee and the Redeveloper's engineer will make a final inspection. When the City Engineer is satisfied that the Minimum Improvements are completed in accordance with the approved plans and specifications, and the Redeveloper's engineer has submitted a written statement attesting to same, the City Engineer or his designee, will recommend that the Minimum Improvements be accepted by the City. Upon the recommendation of the City Engineer, the City will accept the Minimum Improvements. 3.4.7. Replacement. All work and materials performed and furnished by the Redeveloper, its agents and subcontractors, found by the City to be defective within one year after acceptance by the City, must be repaired or replaced by Redeveloper at Redeveloper's sole expense to the reasonable satisfaction of the City. ARTICLE 4 Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. 4.1.1. The Redeveloper agrees that it will construct, or cause to be constructed, the Minimum Improvements on the Redevelopment Property in accordance with the approved Construction Plans and preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans, Changes. 4.2.1. If the Redeveloper desires to make any material change in the Construction Plans, the Redeveloper must submit the proposed change to the City for its approval. The request must be filed with the Community Development Director. Minor modifications and modifications that do not change the exterior of any structures may be approved by the Community Development Director. Other material modifications must be approved by the City Council and the committee or authority that granted any permit or approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Agreement, the City must approve the proposed change and notify the Redeveloper in writing of its approval. Section 4.3. Commencement and Completion of Construction. 4.3.1. The Redeveloper must commence construction of the Minimum Improvements by October 15, 2017, or on the date the parties agree in writing. The Redeveloper must complete this construction by December 31, 2018. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property must be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the City. The deadline in this section will be extended if unavoidable delays prevent a timely completion. 4.3.2. The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and its successors and assigns, will promptly begin and diligently prosecute to completion construction of the Minimum Improvements thereon, and that the construction must in any - 10- event be commenced and completed within the period specified in this Section 4.3 of this Agreement subject to unavoidable delays. It is intended and agreed that these agreements and covenants will be covenants running with the land and that they will, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement itself, be, to the fullest extent permitted by law and equity, binding for the benefit of the City and enforceable by the City against the Redeveloper and its successors and assigns. Until construction of the Minimum Improvements have been completed, the Redeveloper must make reports, in the detail and at the times reasonably requested by the City, as to the actual progress of the Redeveloper with respect to the construction. Section 4.4. Certificate of Completion. 4.4.1. Promptly after completion of the Minimum Improvements in accordance with the Construction Plans the City will furnish the Redeveloper with Certificate of Completion for the Minimum Improvements in the form attached as Exhibit C. The certification by the City is a conclusive determination of satisfaction and termination of the agreement with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Section 4.5. Indemnity. 4.5.1. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the City, its officers, employees, contractors and agents, in connection with any liens or claims from persons or entities related to the furnishing of labor or materials in connection with construction of the Minimum Improvements by Redeveloper, its agents or assigns except for the negligent acts of the City or its contractors or assigns. ARTICLE 5 Insurance Section 5.1. Insurance. 5.1.1. The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements and, from time to time at the request of the City, furnish the City with proof of payment of premiums on: A. Builder's Risk Insurance, written on the so-called `Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the - 11 - so-called "all risk" form of policy. The interest of the City will be protected in accordance with a clause in form and content satisfactory to the City. B. Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) with limits against bodily injury and property damage of not less than $2,000,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used) . On this policy the City must be named as an additional insured as their interests may appear. C. Worker's compensation insurance, with statutory coverage. 5.1.2. The policies of insurance required pursuant to clauses A. and B. above must be in form and content reasonably satisfactory to the City and must be placed with financially sound and reputable insurers licensed to transact business in the State. The policy of insurance delivered pursuant to clause A. above will contain an agreement of the insurer to give not less than thirty (30) days advance written notice to the City in the event of cancellation of the policy or change affecting the coverage thereunder. 5.1.3. All insurance required in Article 5 of this Agreement will be taken out and maintained in responsible insurance companies selected by the Redeveloper which are authorized under the laws of the State to assume the risks covered thereby. The Redeveloper will deposit annually with the City policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. 5.1.4. The Redeveloper agrees to notify the City immediately in the case of damage exceeding $25,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In the event that any such damage does not exceed $25,000, the Redeveloper will forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Redeveloper will apply the Net Proceeds of any insurance relating to such damage received by the Redeveloper to the payment or reimbursement of the costs thereof. 5.1.5. In the event the Minimum Improvements or any portion thereof is destroyed by fire or other casualty and the damage or destruction is estimated to equal or exceed $25,000, then the Redeveloper must within one hundred and twenty (120) days after such damage or destruction, proceed forthwith to repair, reconstruct and restore the damaged Minimum Improvements substantially the same condition or utility value as it existed prior to the event causing such damage or destruction. To the extent necessary to accomplish the repair, reconstruction and restoration, the Redeveloper will apply the Net Proceeds of any insurance relating to such damage or destruction received by the Redeveloper to the payment or reimbursement of the costs thereof. The obligations set forth herein shall terminate with respect to any particular improvements upon issuance of a Certificate of Completion for such improvements. Further, the City will consider favorably a Redeveloper request for an extension of the time limit in this Section pending receipt of insurance proceeds. 5.1.6. If the Redeveloper is in compliance with the terms this Agreement and then any Net Proceeds of insurance relating to the damage or destruction received by the City must be released from time to time by the City to the Redeveloper upon the receipt of a certificate of an rithnri?ed reprecpntative of the Rerlevelnr,er cpprtfv9,ics the evr,anrlit„rac made or to be made or the indebtedness incurred in connection with the repair, reconstruction and restoration and stating that the Net Proceeds, together with any other moneys legally available for the purpose, will be sufficient to complete the repair, construction and restoration. 5.1.7. The Redeveloper must complete the repair, reconstruction and restoration of the Minimum Improvements, whether or not the Net Proceeds of insurance received by the Redeveloper for these purposes are sufficient. ARTICLE 6 Real Property Taxes and Assessments Section 6.1. Real Property Taxes. 6.1.1. The Redeveloper and its permitted assigns must pay when due all real property taxes payable with respect to the Redevelopment Property including installments for special assessments, if any, payable therewith and thereafter; and, 6.1.2. That prior to the Termination Date, the Redeveloper, its assignees, transferees and successors in title: A. will not seek administrative review or judicial review of the applicability or constitutionality of any tax statute relating to the taxation of real property contained on the Redevelopment Property determined by any tax official to be applicable to the Minimum Improvements or the Redeveloper or raise the inapplicability or constitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, that "tax statute" does not include any local ordinance or resolution levying a tax; and - 13 - B. will not seek any tax deferral or abatement, either presently or prospectively authorized under Minn. Stat. §469.181, or any other state or federal law, of the taxation of any real property within the Redevelopment Property between the date of execution of this Agreement and the Termination Date. C. Will not at any time prior to the Termination Date, seek to reduce the market value of the Redevelopment Property below the assessed minimum market value as set forth in the Assessment Agreement. ARTICLE 7 Financing Section 7.1. Financing. 7.1.1. The Redeveloper must have submitted prior to commencement of construction of the Minimum Improvements evidence of a commitment for financing or equity infusion that is deemed by the City to be sufficient for construction of the Minimum Improvements as required by this Agreement. Section 7.2. Limitation Upon Encumbrance of Property. 7.2.1. Prior to the completion of the Minimum Improvements, as certified by the City, neither the Redeveloper nor any successor in interest to the Redevelopment Property upon which the Minimum Improvements are to be constructed or any part thereof will engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Redevelopment Property, whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attach to the parcel, except: A. for the purposes of obtaining funds only to the extent necessary for constructing the Minimum Improvements (including, but not limited to, labor and materials, professional fees, real estate taxes, construction interest, organizational and other indirect costs of development, costs of constructing the Minimum Improvements, and an allowance for contingencies); B. operating agreements; and CIC Documents related to the Parking Facility. C. for the purposes of obtaining funds necessary for operating costs; and D. Easement Agreements and related documents required for the operation of the property. - 14- ARTICLE 8 Prohibitions Against Assignment and Transfer Section 8.1. Representation as to Redevelopment. 8.1.1. The Redeveloper represents and agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of redevelopment of the Redevelopment Property and not for speculation in land holding. The Redeveloper further recognizes that, in view of (a) the importance of the redevelopment of the Redevelopment Property to the general welfare of the City; (b) the public aids that have been made available by the City for the purpose of making the redevelopment possible; and (c) the fact that any act or transaction involving or resulting in a significant change in the identity of the parties in control of the Redeveloper or the degree of their control is for practical purposes a transfer or disposition of the property then owned by the Redeveloper, the qualifications and identity of the Redeveloper are of particular concern to the City. The Redeveloper further recognizes that it is because of the qualifications and identity that the City is entering into the Agreement with the Redeveloper, and, in doing so, is further willing to accept and rely on the obligations of the Redeveloper for the faithful performance of all undertakings for the foregoing reason the Redeveloper may not assign this Agreement or any interest therein, or transfer the Redevelopment Property or any part thereof to any person, firm or corporation, without the express written consent of City. The City's consent may be withheld for any reason. Any transfer of this Agreement through merger, consolidation or liquidation, or any change in ownership. of the shares of voting stock or material change in management position of Redeveloper shall constitute an assignment or this Agreement, and, as such shall require the prior written consent of the City. This provision does not apply nor does it prohibit an assignment of the Redeveloper's interest in this Agreement to an entity that is wholly owned by the current principals of the Redeveloper, nor will this provision prohibit the assignment of the TIF note to third parties. ARTICLE 9 Events of Default Section 9.1. Events of Default Defined. The following are "Events of Default" under this Agreement and the term "Event of Default" means, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events: 9.1.1. Failure by the Redeveloper to pay when due or to provide when required any payments required to be paid or provided under this Agreement, including real estate taxes and installments of special - 15 - assessments due and payable on the Redevelopment Property before they become delinquent. 9.1.2. Failure by the Redeveloper to provide and maintain any insurance required to be provided and maintained by Section 5.1 of this Agreement or failure by the Redeveloper to reconstruct the Minimum Improvements when required pursuant to Section 5.1 of this Agreement. 9.1.3. Failure by the Redeveloper to satisfy all conditions precedent to City as set forth in Section 3.1 by October 15, 2017, unless waived in writing by the City. 9.1.4. Failure by the Redeveloper to commence and complete construction of the Minimum Improvements pursuant to the terms, conditions and limitations of Section 3.1 of this Agreement. 9.1.5. Failure by the Redeveloper to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including, but not limited to a violation of any covenant or undertaking of this Agreement. 9.1.6. The Redeveloper makes any changes to the Construction Plans of the Minimum Improvements without approval of the City of any permit or approval required by Section 3.1.3 of this Agreement. 9.1.7. The Redeveloper constructs Minimum Improvements that are materially different from the Minimum Improvements described in the approved Construction Plans, and the changes have not been approved in writing by the City. 9.1.8. The Redeveloper: A. files any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any state or federal bankruptcy law; B. makes an assignment for the benefit of its creditors; C. admits in writing its inability to pay its debts generally as they become due; or D. is adjudicated bankrupt or insolvent. 9.19 With regard to non -monetary defaults, an "Event of Default" may not be declared by the city unless the city gives Notice of Default to the Redeveloper together with a 30 day opportunity to Cure the Default. This period may be extended for up to 90 days if the City Administrator finds that the Redeveloper is diligently pursuing a cure. - 16 - Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the City may take any one or more of the following actions: 9.2.1. Suspend its performance under the Agreement. 9.2.2. Terminate this Agreement and the obligation to pay over the Available Tax Increments to the holder of any Tax Increment Bond. 9.2.3. Withhold the Certificate of Completion. 9.2.4. Subject to the rights of a Holder of a Mortgage, withhold the Net Proceeds from the insurance policies provided to the City pursuant to Section 5.1 of this Agreement in accordance with the terms of the policies. 9.2.5. Take whatever action, including legal or administrative action, which may appear necessary or desirable to the City, including any actions to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Redeveloper under this Agreement. 9.2.6. Notwithstanding any provision of Section 9.2 or any subpart, or Section 3.8.4B, the City will continue to pay to the Redeveloper, or any holder of a PAY GO Tax Increment Note, the principal and interest on the Note during any period of default if real estate taxes and installments of special assessments due and payable on the Redevelopment Property are paid before they become delinquent. Section 9.3. No Remedy Exclusive. 9.3.1. No remedy conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each remedy is cumulative and is in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default will impair any right or power or may be construed to be a waiver thereof, but any right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City or the Redeveloper to, exercise any remedy reserved to it, it will not be necessary to give notice, other than the notice that may be required in this Article 9. Section 9.4. No Additional Waiver Implied by One Waiver. 9.4.1. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver will be limited to the particular breach so waived and will not - 1 7 - be deemed to waive any other concurrent, previous or subsequent breach hereunder. ARTICLE 10 Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. 10.1.1. No member, official, or employee of the City will have any personal interest, direct or indirect, in the Agreement, nor will any such member, official, or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the City will be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement, except in the case of willful misconduct. Section 10.2. Equal Employment Opportunity. 10.2.1. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all non-discrimination and affirmative action requirements applicable under any state, federal or local law, ordinance or regulation. Section 10.3. Titles of Articles and Sections. 10.3.1. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and will be disregarded in construing or interpreting any of its provisions. Section 10.4. Notices and Demands. 10.4.1. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other will be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and A. in the case of the Redeveloper, is addressed to or delivered personally to; Anne Loff, 314, 1st Avenue North, Suite 300, Minneapolis, MN 55401; and B. in the case of the City, is addressed to or delivered personally to: City Administrator, 216 North 4th Street, Stillwater, Minnesota 55082; - 18 - or at another address with respect to either party as that party may, from time to time, designate in writing and forward to the other party as provided in this Section. Section 10.5. Counterparts. 10.5.1. This Agreement may be executed in any number of counterparts, each of which will constitute one and the same instrument. Section 10.6 Termination Date. 10.6.1 This Agreement will terminate upon the first of the following events to occur: 1) the decertification of the Tax Increment District; 2) the payment in full of any Tax Increment due the Redeveloper; 3) any uncured Default as defined in this Agreement. IN WTINESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF STILLWATER By Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk MIDNIGHT REAL ESTATE, LLC a Minnesota limited liability company By Its STATE OF MINNESOTA ) ss. COUNTY OF WASHINGTON ) On this day of , 2017, before me, a Notary Public within and for said County, appeared Ted Kozlowski, and Diane F. Ward, to me personally known who, being - 19 - duly sworn, did say that they are the Mayor and City Clerk named in the foregoing instrument and that this instrument was signed as the free act and deed of the CITY OF STILLWATER, Minnesota, a Minnesota municipal corporation. STATE OF MINNESOTA ) ss COUNTY OF WASHINGTON Notary Public The foregoing instrument was acknowledged before me this day of 2017, by , the agent for the Redeveloper, MIDNIGHT REAL ECT 1TTy� company. , duly authorized T T a Minnesota limited liability , L/JLILU 111111 LL..M liability Notary Public Z:\MVMLF_Files\City\TIF Dist. #12 \Midnight Real Estate - Contract Redevelopment - Draft July 28, 2017.doc - 20 - EXHIBIT A MINIMUM IMPROVEMENTS A sixty-six (66) room hotel and adjacent two (2) level parking structure located at 232 North Main Street, Stillwater, Minnesota. Z:\MLF Files\City\TIF Dist. # l2\EXHIBIT A to contract for priv redev midnight.docx IT B ASSESSMENT AG E ENT ASSESSOR'S CERTIFICATE BETWEEN 'I nt: CITY OF SI ILLWATER, MINNESOTA NIGHT RE A MINNESOTA L II 1 ESTATE IED L J ILI IY COMPANY COUNTY ASSESSOR OF T COUNTY OF WASHINGTON ASSESSMENT AGREEMENT THIS AGREEMENT, made on or as of the day of , 2017, between The City of Stillwater, Minnesota, a municipal corporation (the "City"), and Midnight Real Estate (the "Owners"), and the County Assessor of the County of Washington (the "Assessor"), LLC. WITNESSETH, that WHEREAS, on or before the date hereof, the City and the Owner, entered into a Contract for Private Redevelopment ("Redevelopment Contract") for the real property located in the City of Stillwater hereinafter referred to as the "Project" and legally described as on Schedule A, Washington County, Minnesota; and WHEREAS, the City and Redeveloper to established a minimum market value for Redevelopment Property and the Minimum Improvements constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, the City and the Assessor have reviewed the plans for the Minimum Improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: As of January 2, 2019, the minimum market value of the Property Project shall be not less than Nine Million One Hundred Thousand and no/100 Dollars ($9,100,000.00). The parties expect that construction of Minimum Improvements will be substantially completed by December 31, 2018. 2. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered such supplements hereto and such further instruments as may be reasonably required for correcting any inadequate or incorrect description of the project or for carrying out the expressed intention of this Agreement. 3. The minimum market value shall be of no further force and effect and this Agreement shall teuuinate on the earlier of (i)the date on which the up -front increment, as described in Section 3.2.2.A of the Agreement, has been reimbursed to the City; or ii) the Redevelopment Contract either expires or terminates, and in no event shall this Agreement have any force or effect after December 31, 2044. 4. This Agreement, with the Redevelopment Contract, shall be promptly recorded by the Redeveloper with a copy of Minnesota Statutes, Section 469.177, Subdivision 8, set forth in Schedule A hereto. 5. Neither the preambles nor provisions of this Agreement are intended to be construed as modifying the terms of the Redevelopment Contract between the City and the Redeveloper. 6. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which constitute but one and the same instrument. 7. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. CITY OF STILLWATER Ted Kozlowski, Its Mayor By Diane F. Ward, Its Clerk STA I OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) On this day of , 2017, before me a Notary Public within and for said County, appeared Ted Kozlowski, and Diane F. Ward, to me personally known who, being duly sworn, did say that they are the Mayor and City Clerk named in the foregoing instrument and that this instrument was signed as the free act and deed of the City of Stillwater, Minnesota, a municipal corporation. Notary Public -2- Midnight Real Estate, LLC STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this day of , 2017, by Midnight Real Estate, LLC, a Minnesota limited liability company. Drafted by: David T. Magnuson (#66400) Magnuson Law Firm 324 Main Street South, Suite #260 Stillwater, MN 55082-5165 651-439-9464 (phone) Notary Public -3- SCIE'JULE A TO d S ESSME NA' AGREEMENT LEGAL DESC RIPTIOON• ALL THAT PART OF LOTS 2, 3 ,4, 5, 6 AND 8, OF BLOCK 18 OF THE ORIGINAL TOWN, NOW CITY OF STILLWATER, WASHINGTON COUNTY, MINNESOTA, MORE PARTICULARLY DESCRIBE? AS FOLLOWS, TO -WIT: BEGINNING AT THE NORTHEASTERLY CORNER OF LOT 2, BLOCK 18, ORIGINAL TOWN OF STILLWATER, WASHINGTON COUNTY, MINNESOTA, THENCE WESTERLY ALONG THE NORTHERLY UNE OF SMD LOT 2 FOR 50.00 FEET; THENCE SOUTHERLY AND PARALLEL WITH Tr1E WESTERLY LINE OF SAID LOT 2 FOR 10.0 FEt 1; THENCE WESTERLY AND PARALLEL WITH SAID NORTHERLY LINE OF LOT 2 FOR 100.0 FEET TO SAID WES I tRLY UNE OF LOT 2; THENCE SOUTHERLY ALONG SAID WESTERLY LINE OF LOT 2 FOR40.0 FEET TO THE SOUTHWESTERLY CORNER THEREOF; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 2 FOR 125.0 Ft± 1 TO THE NORTHWESTERLY CORNER OF THE EASTERLY 25.0 FEET OF LOT 3 SAID BLOCK 18; THENCE SOUTHERLY ALONG THE WESTERLY LINE OF SAID EASTERLY 25.0 FEET OF LOT 3 AND ALONG THE EASTERLY UNE OF THE EASTERLY 25.0 OF LOT 4 SAID BLOCK 18 FOR 100.0 FEET TO TI -IE NORTHERLY LINE OF LOT 5 OF SAID BLOCK 18; THENCE WESTERLY ALONG SAID NORTHERLY LINE OF LOT 5 FOR 15.0 FEET; THENCE SOUTHWESTERLY IN A STRAIGHT LINE TO A POINT IN THE SOUTH LINE OF SAID LOT 5, SAID POINT BEING 93.0 FEET EASTERLY FROM THE SOUTHWESTERLY CORNER OF SAID LOT 5, AS MEASURED ALONG SAID SOUTHERLY LINE OF LOT 5; THENCE EASTERLY ALONG SAID SOUTHERLY LINE OF LOT 5 FOR 7.0 FEET; THENCE SOUTHERLY AND PARALLEL WITH THE WESTERLY LINE OF LOT 6 OF SAID 8100K 18, FOR 32.0 FEET; THENCE EASTERLY AND PARALLEL WITH THE NORTHERLY LINE OF SAID LOT 6 FOR 50.0 FEET TO THE EASTERLY UNE OF SAID LOT 6; THENCE NORTHERLY ALONG SAID EASTERLY LINE OF LOT 6 FOR 1.56 FEET, MORE OR LESS, TO 115 INTER_SEL 110N WITH A LINE DRAWN EASTERLY AND PARALLEL WITH THE NORTHERLY LINE 01' MYRTLE ST. FROM A POINT IN SAID WESTERLY LINE OF LOT 6, SAID POINT BEING 18.0 FEET NORTHERLY, AS MEASURED ALONG SAID WES 1 tRLY LINE OF LOT 6, FROM THE SOURLY CORNER OE SAID LOT; THENCE EASTERLY AND PARALLEL WITH SAID NORTHERLY LINE OF MYRTLE ST. FOR 66.0 Ftt 1 TO A POINT 84.0 FEET WESTERLY OF THE WESTERLY LINE OF MAIN ST., AS MEASURED ALONG SAID LINE PARALLEL WITH NORTHERLY UNE OF MYRTLE ST.; THENCE NORTHERLY AND PARALLEL WITH SAID WESTERLY LINE OF MAIN 5T. FOR 52.7 FEET TO ITS INTERSECTION WITH A LINE DRAWN PARALLEL WITH AND 434.0 FEET NORTHERLY OF. SAID NORTHERLY LINE OF MYRTLE ST.; THENCE EASTERLY AND PARALLEL WITH SAID NORTHERLY LINE OF MYRTLE ST. AND 434.0 FEET NORTHERLY THEREFROM FOR 84.0 FEET TO SAID WESTERLY LINE MAIN ST.; THENCE NORTHERLY ALONG SAID WESTERLY LINE OF MAIN ST. FOR 100.35 FEET TO A POINT IN SAID WEST LINE OF MAIN ST., SAID POINT BEING 534.35 FEET NORTHERLY FROM SAID NORTHERLY LINE OF MYRTLE ST., AS MEASURED ALONG SAID WES 1 ERLY LINE OF MAIN ST, THENCE WESTERLY AND PARALLEL WITH THE SOUTHERLY LINE OF MULBERRY ST FOR 150.0 FEET TO THE EASTERLY LINE OF SAID LOT 3 OF BLOCK 18; THENCE NORTHERLY ALONG SAID EASTERLY LINE OF LOT 3 AND ALONG THE EASTERLY UNE OF SAID LOT 2 FOR 75.84 FEET TO THE POINT OF BEGINNING. EXCEPT THE FOLLOWING DESCRIBED PROPERTY: ALL THAT PART OF LOT 2, BLOCK 18, OF THE ORIGINAL TOWN (NOW CITY) OF STILLWATER, WASHINGTON COUNTY, MINNESOTA, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHERS I LRLY CORNER OF LOT 2, BLOCK 18, ORIGINAL TOWN OF STILLWATER AS SURVEYED AND PLA 1 1 tD, THENCE WES I tRLY ALONG THE NORTHERLY LINE OF SAID LOT 2 FOR 50 FEET; THENCE SOUTHERLY AND PARALLEL WITH THE WESTERLY LINE OF SAID LOT 2 FOR 10 FEET; THENCE WESTERLY AND PARALLEL WITH SAID NORTHERLY LINE OF SAID LOT 2 FOR 100 FEET TO SAID WESTERLY LINE OF SAID LOT 2; THENCE SOUTHERLY ALONG SAID WESTERLY LINE OFSAID LOT 2 FOR 40 FEET TO THE • Y CORNER THEREOF; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 2, TO THE SOUTHEASTERLY CORNER THEREOF; THENCE NORTHERLY ALONG THE EASTERLY LINE OF SMD LOT 2 TO THE POINT OF BEGINNING. BLOCK 18 LOT 3 SUBDIVISIONCD 2695 SUBDMSIONNAME STILLWATER BLOCK 18 LOT 4 SUBDIVISIONCD 2695 SUBDNISIONNAME SfILLWATER BLOCK 18 WT 5 SUBDIVISOONCD 2695 SUBDIVIS1ONNAME STILLWATER BLOCK 18 LOT 6 SUBDIVISIONCD 2695 SUBDIVISIONNAME STII I WATER 8100( 1.8 101 8 SUBDIVISIONCD 2695 SUBDMSIONNAME STILLWATER BLOCK 18 I.OT 2 SUBDIVISIONCD 2695 SLIBDIVISIONNAME STILI WATER SCHEDULE B TO ASSESSMENT AGREEMENT CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the improvements to constructed and the market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certified as follows: The undersigned Assessor, being legally responsible for the assessment of property in Washington County, Minnesota, hereby certifies that the market value assigned to the land and improvements are reasonable, with regard to the property legally described in Schedule A. County Assessor, Washington County STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this day of 2017, by , the County Assessor of the County of Washington. Notary Public -5- SCHEDULE C TO ASSESSMENT AGREEMENT CONSENT TO ASSESSMENT AGREEMENT BY MORTGAGE HOLDER (the `Lender"), does hereby consent to all terms, conditions and provisions of the foregoing Assessment Agreement and agrees that, in the event it purchases the Redevelopment Property at a foreclosure sale or acquires the Redevelopment Property through a deed in lieu of foreclosure or otherwise in satisfaction of the indebtedness owed by the Rcuevcioper, It a.uu 1L lespck. lVe Jl'll3GGJJVI• allu QSS1g11, be uuuilu by all L I111S artu 1.V11u1t10113 A 1 1• 1 limited 1 1. 1. that L_ of the Assessment Agreement, including but not limited to the provision which requires that the minimum market value of the Redevelopment Property shall be maintained throughout the teine of the Assessment Agreement. IN WITNESS WIIFREOF, we have caused this Consent to Assessment Agreement to be executed in its name and on its behalf of this day of , 2017. STATE OF MINNESOTA ) ss. COUNTY OF WASHINGTON ) LENDER: By Its The foregoing instrument was acknowledged before me this day of , 2017, by , the of on behalf of the Lender. Notary Public EXHIBIT C CERTIFICATE OF COMPLETION WHEREAS, the City of Stillwater, Minnesota, a municipal corporation (the "City"), entered into a certain Contract for Private Redevelopment ("Contract") with Midnight Real Estate, LLC, a Minnesota limited liability company (the "Redeveloper"), dated as of , 2017, (the "Agreement") and recorded in the Office of the County Recorder in and for the County of Washington and State of Minnesota, as Document Number , which provided for the Redevelopment of the following land described in Exhibit A in the County of Washington and the State of Minnesota, (the "Property"), NOW THEREFORE, this is to certify that all building construction and other physical imnrnvemPntc cnerifled to hP rdnne and made by the Redeveloper hac been completed in arn^rdanne With the ('nntrantall 1 r Codee Taws Rifles anti Ordinances nnw in effect Dated this day of , 2017. CITY OF STILLWATER Ted Kozlowski, Its Mayor ATTEST: Diane F. Ward, Its City Clerk STA I OF MINNESOTA ) ) ss COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this day of 2017, by Ted Kozlowski, Mayor, and Diane F. Ward, Clerk, for the City of Stillwater. Notary Public 1_\darrow\ciata\MLFFiles \City\ilevelopment\Re-Develoninent Agmt - Midnight Real Estate - First Draft 3-2017\CERTIFICATE OF COMPLETION Exhibit C - Midnight Real Estate - 3-2017 doe, EXHIBIT D Parking Facility Page 1/2 NORTH SECOND STREET 34 O 0 0 z 0 c 00 0 z 0 C Parking Facility Page 2/2 0 NORTH SECOND STREET CIRCIJLATION LLI T Gcwglc Maps Go gle Maps Page 1 of 2 �r=Std err r+r?k, .oa;Lin https://www.google.com/maps/@45.0560142,-92.8055403,231m/data=!3m1! 1e3?hl=en 7/7/2017 mop DTPC RECOMMENDATION IF" 'at! - Lot / • 4 / a sok N. ea 0111 Wooden barner IV ▪ M -- 4 - —J. i 1 1 t ec 114E O IRTMELA CE OF MINNESOTA CITY COUNCIL MEETING MINUTES July 11, 2017 REGULAR MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order at 4:30 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim (left at 6:35 p.m.), Junker, Weidner and Polehna Browns Creek Watershed District President Leiser, Secretary Johnson and Manager Maule Miller, Administrator Kill, Camilla Correll - Emmons & Olivier Resources, Inc., Olivia Sparrow, Emmons and Olivier Resources, Inc. Absent: None Staff present: City Administrator McCarty City Attorney Magnuson Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders Finance Director Harrison City Clerk Ward OTHER BUSINESS Workshop with Browns Creek Watershed District - Karen Kill Browns Creek Watershed District Administrator Karen Kill introduced Olivia Sparrow, Emmons & Olivier Resources, Inc. Ms. Sparrow reviewed the feasibility study done in partnership with City of Stillwater to address drainage and flooding issues east of Marylane Avenue. She explained the drainage issues reported by residents, reviewed existing conditions, and summarized a proposed mitigation strategy. A combination of options is needed according to the study, including: 1) either a pond or a culvert across Macey Way; 2) a new local drainage pathway; and 3) minor grading and clearing to pull the remaining ditch away from the houses. Ms. Sparrow added that estimated costs are around 1/2 million dollars. Councilmember Junker asked if flooding is due to heavy rains. Ms. Sparrow replied that the warm, wet year, compounded by the construction on Rutherford Station which compacted the soils and increased the runoff, caused the flooding to the backyards. Councilmember Weidner asked if the flooding is a temporary problem or if it will persist when development is completed. Ms. Sparrow replied that both the pre -development and ultimate conditions models showed there will still be some nuisance flooding, though not reaching the houses, because the rear yards of Browns Creek Preserve are very flat. She added that many residents were unaware how close the drainage easement is to their houses when they purchased their houses. City Council Meeting July 11, 2017 Councilmember Menikheim asked who will fund the mitigation project. Public Works Director Sanders responded he included some money in next year's capital outlay budget for a funding mechanism. Otherwise, the City could possibly use money from the stormwater utility fund, or levy assessments. Ms. Kill added that there may be some possibilities for clean water grants. One resident stated that in 40 years, flooding was never an issue until development began on Rutherford Station. He feels Rutherford Station should share the costs for stopping the water flow. Another resident stated she heard stated it could be 10-15 years before Rutherford Station is fully developed. Ms. Sparrow stated that unfortunately, there's no information to confirm whether the Marylane culvert was compacted by development. She added that the BCWD is working with contractors about mitigating the issues. Councilmember Weidner asked whose responsibility it is to sign off on a drainage plan. Ms. Sparrow replied that the BCWD reviews each development in terms of compliance with all the flood mitigation and rate control rules. The BCWD is really focused on protecting water quality. Administrator Kill added that the BCWD rules require a two foot separation from a foundation to the highest water level, and that is being maintained. The existing situation is unique because there is an older development sandwiched between new developments. The City oversees land use and approval of the development, and the watershed district looks at how water leaves the site. Councilmember Weidner asked if the BCWD would help fund the mitigation project. BCWD President Leiser stated the BCWD has the option to submit a designated project for state funding under the clean water act, but there is no guarantee. If grant money is not available, the BCWD would have to look at its annual funding, its tax levy, and modify its 10 year plan. A resident explained that in the past, the lot there always had a lot of water. The small culvert that was there handled the water flow from west to east. Developers then built up the road a little higher and started to get ponding on both sides. Water levels kept getting higher, so they pumped it all out which is probably what caused the big problem. She suggested the developer contribute something toward a solution for everyone. Administrator Kill stated the BCWD is looking for direction from its board and the City to determine if staff should move forward and expend time on the mitigation project. Councilmember Junker stated he feels the project should move forward with the BCWD, the City, and the Rutherford Station developer as well. Councilmember Weidner asked who would get assessed for the project, if assessments were levied. City Attorney Magnuson replied that by law, anyone who benefits from the project to the extent that the benefit increases the market value of the parcel in an amount equal to the assessment. Councilmember Weidner stated he would oppose using assessments to fund the project. Mayor Kozlowski stated he doesn't think the project will boost market values. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to accept the feasibility study, to work with the BCWD on the grant application, and to direct staff to start looking at funding options. All in favor. Page 2 of 6 City Council Meeting July 11, 2017 Tour of the Police Department The meeting went into recess for a tour of the Police Department. The meeting was then reconvened. Legislative Discussion City Administrator McCarty explained the National Park Service Legacy Act, and a proposed resolution of support for a House of Representatives bill. Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to approve Resolution 2017-138, resolution of support for the National Park System. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Nays: None Discussion on Passenger Rail Service City Administrator McCarty informed the Council that the Passenger Rail Organizing Council of the West Central Wisconsin Rail Coalition, a passenger rail advocacy group, is proposing privately funded passenger rail service to go from Eau Claire to downtown St. Paul. The group is looking for resolutions of support from communities along the proposed railway. Motion by Councilmember Polehna, seconded by Councilmember Junker, to table the discussion for further information. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker and Polehna Nays: Councilmember Weidner Discussion on Closing Bridge Event Saturday August 12 Councilmember Polehna explained the proposal for an August 12 community celebration of the closing of the lift bridge. The proposal is to close Chestnut Street from Main to the promenade in front of the bridge for a polka dance. He would like the City to contribute funding for the event. City Administrator McCarty added that estimates for the entertainment, traffic control, barricades, restrooms and garbage collection are around $7,000 and possibly more. He added that an individual has booked the gazebo for a wedding at 6 p.m. that evening, so staff will have to coordinate with them. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to approve the event application, to authorize funds up to $12,000, to direct staff to notify the wedding party of the event, and to approve the submission of an application to MnDOT to close Chestnut Street. All in favor. Discussion on August 2 meeting Mayor Kozlowski shared tentative plans for the actual closing of the lift bridge on August 2. There will be speeches in Lowell Park for 45 minutes to 1 hour, and a ribbon cutting ceremony. Motion by Councilmember Polehna, seconded by Mayor Kozlowski, to move the recessed meeting on Wednesday, August 2 from 7:00 p.m. to 5:30 p.m. All in favor. Page 3 of 6 City Council Meeting July 11, 2017 STAFF REPORTS Police Chief Gannaway reported that the 4th of July event went fairly well. Community Development Director Turnblad reported the Comprehensive Plan Advisory Committee has 20 members. Finance Director Harrison reminded the Council of the August 15 budget workshop at 3:30 p.m. Mayor Kozlowski recessed the meeting at 6:47 p.m. RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:07 p.m. Present: Mayor Kozlowski, Councilmembers Junker, Weidner and Polehna Absent: Councilmember Menikheim Staff present: City Administrator McCarty City Attorney Magnuson Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders Finance Director Harrison City Clerk Ward PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of June 20, 2017 regular and special meeting minutes Motion by Councilmember Junker, seconded by Councilmember Polehna, to approve the June 20, 2017 regular and special meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Officer Daniel Young - Night to Unite Officer Young provided information on activities Night to Unite, Tuesday, August 1 at Washington Square Park and for asked Councilmembers to volunteer for the dunk tank. Community Thread 2018 Budget Request — Sally Anderson, Executive Director Community Thread Executive Director Sally Anderson summarized Community Thread programs serving the citizens of Stillwater. She asked the Council to consider $16,000 of financial support for 2018. Youth Service Bureau 2018 Budget Request — Bob Sherman, Executive Director Bob Sherman, Executive Director of Youth Service Bureau, provided an update Youth Service Bureau programs and requested funding in the amount of $10,500. Page 4 of 6 City Council Meeting July 11, 2017 OPEN FORUM There were no public comments. CONSENT AGENDA Resolution 2017-134, Directing Payment of Bills Resolution 2017-135, approving appointments to Heritage Preservation Commission Possible approval of Faster than the Pastor Special Event — 10/07/17 Possible approval of Bagpipes and Bonfires Special Event — 09/23/17 Possible approval to purchase switch for Armory Possible approval to purchase key card items two doors Resolution 2017-136, approval of "easement or agreement" for drainage & utility purposes Resolution 2017-137, approving amendment to the 2017 Lumberjack Days special event contract Possible approval of Cable Communications Budget for Fiscal Year 2017 Motion by Councilmember Junker, seconded by Councilmember Weidner, to adopt the Consent Agenda. Ayes: Mayor Kozlowski, Councilmembers Junker, Weidner and Polehna Nays: None PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS Comprehensive Plan Scoping Document Community Development Director Turnblad informed the Council that he will prepare an RFP in the next two weeks for planning consultant services for the remainder of the Comprehensive Plan. He presented a scoping document that outlines basic elements required by state law or suggested by the Met Council. Duane Arndt, representing the Metropolitan Interfaith Council on Affordable Housing, asked if the Met Council's goal for Stillwater of 227 units of affordable housing in 2040 will be included. Mr. Turnblad replied that the scoping document summarizes the elements that are required by the Met Council. COMMUNICATIONS/REQUESTS There were no communications or requests. COUNCIL REQUEST ITEMS There were no Council request items. Page 5 of 6 City Council Meeting July 11, 2017 ADJOURNMENT Motion by Councilmember Junker, seconded by Councilmember Polehna, to adjourn the meeting at 7:34 p.m. All in favor. Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk Resolution 2017-134, Directing Payment of Bills Resolution 2017-135, approving appointments to Heritage Preservation Commission Resolution 2017-136, approval of "easement or agreement" for drainage and utility purposes Resolution 2017-137, approving amendment to the 2017 Lumberjack Days special event contract Resolution 2017-138, resolution of support for the National Park System Page 6 of 6 1N'a t ec 114E O IRTMELA CE OF MINNESOTA CITY COUNCIL MEETING MINUTES July 18, 2017 REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:04 p.m. Present: Mayor Kozlowski, Councilmembers Junker, Weidner and Polehna Absent: Councilmember Menikheim Staff present: City Administrator McCarty City Attorney Magnuson Fire Chief Glaser Police Chief Gannaway Community Development Director Turnblad Public Works Director Sanders Administration Secretary Manos PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of minutes of June 21 and 22, 2017 special meetings Motion by Councilmember Junker, seconded by Councilmember Weidner, to approve the June 21 and 22, 2017 special meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Resolution 2017-139, Human Rights Award — Anne McManus and Resolution 2017-140, Human Rights Award — Ben Welshons, Sr. - Posthumously Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt Resolution 2017-139, Human Rights Award - Anne McManus. Ayes: Councilmembers Junker, Weidner, Polehna, Mayor Kozlowski Nays: None Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt Resolution 2017- 140, Human Rights Award - Ben Welshons, Sr. - Posthumously. Ayes: Councilmembers Junker, Weidner, Polehna, Mayor Kozlowski Nays: None City Council Meeting July 18, 2017 Councilmember Polehna presented the Human Rights Award to Anne McManus and to Ben Welshons Sr. Ms. McManus thanked the City for the award. Margaret Welshons thanked the Council and accepted the award on behalf of her husband. Lumberjack Days Request - Erin McQuay Erin McQuay, The Locals, requested that the Council approve an amendment to the Lumberjack Days contract allowing Friday helicopter rides, which she stated was inadvertently left out of the contract language. City Administrator McCarty confirmed that Friday helicopter rides had been discussed, but had not been included in the contract. He noted staff concerns with safety, noise and impacts on community members. Councilmember Junker stated he supports the helicopter rides, but is not in favor of including Friday, due to concerns expressed to him from residents. Mayor Kozlowski stated that when the helicopter rides were previously discussed, he understood that the hours each day were being cut back, but that the total amount of time allotted to rides would be the same, spread over three days. Ms. McQuay stated that the flight path for this year has changed so residents on the bluff would not be impacted so much. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2017-144, resolution of approval of Addendum No. 1 to the 2017 City of Stillwater Lumberjack Days Agreement dated July 18, 2017. Ayes: Councilmembers Weidner, Polehna, Mayor Kozlowski Nays: Councilmember Junker OPEN FORUM There were no public comments. STAFF REPORTS Police Chief Gannaway asked that the Council postpone the body camera presentation and table the issue. He would like the public to know that the proposed policy is on the City web site and there is a link for comments. He reminded the Council that August 1 is Night to Unite. Community Development Director Turnblad stated there are now 33 people on the comprehensive plan advisory committee, which may be unmanageable. There may have to be subcommittees. Public Works Director Sanders explained an easement issue that was brought to the City's attention by a surveyor regarding a parcel on South Sixth Street, South Broadway and Highway 95. He stated there is a sanitary sewer that runs from Broadway to Highway 95 that was installed in a tunnel over 100 years ago. A blanket easement was put across the property. A few years later, the lot was split into two lots and homes were built over the sanitary sewer. The homeowners could have problems selling their homes if a title search is done. The sewer is probably 50-60 feet below the basement. He asked if the Council would like to vacate a portion of the easement and get this cleared up for the two property owners. City Attorney Magnuson added that the easement was dated circa 1913. It was apparently missed by previous owners, mortgage companies and banks. The consensus of the Council was to take no action at this time. City Administrator McCarty reminded the Council that the 2018 budget process is underway. Page 2 of 4 City Council Meeting July 18, 2017 CONSENT AGENDA Resolution 2017-141, directing the payment of bills Possible approval of sanitary sewer adjustments Resolution 2017-142, approval of Cooperative Fire Protection Agreement with Minnesota Department of Natural Resources Division of Forestry and the Stillwater Fire Department Resolution 2017-143, a resolution approving the vacation of an existing drainage and utility easement at 1351 Dallager Court Motion by Councilmember Weidner, seconded by Councilmember Junker, to adopt the Consent Agenda. Ayes: Councilmembers Junker, Weidner, Polehna, Mayor Kozlowski Nays: None PUBLIC HEARINGS A public hearing to consider the adoption of a portable recording system (body camera) policy City Administrator McCarty stated the Police Chief requested this item be tabled to August 15, 2017. Motion by Councilmember Polehna, seconded by Councilmember Junker, to table the consideration of the adoption of a portable recording system policy to August 15, 2017. All in favor. UNFINISHED BUSINESS Possible approval of development agreement for Tax Increment Financing_District #13 City Attorney Magnuson explained that the developer requested this item be postponed until August. NEW BUSINESS There was no new business. COMMUNICATIONS/REQUESTS There were no communications/requests. COUNCIL REQUEST ITEMS Councilmember Polehna informed the Council that Beyond the Yellow Ribbon will be leading the Lumberjack Days Parade. ADJOURNMENT Motion by Councilmember Junker, seconded by Councilmember Polehna, to adjourn the meeting at 7:38 p.m. All in favor. Ted Kozlowski, Mayor Page 3 of 4 City Council Meeting July 18, 2017 ATTEST: J. Thomas McCarty, Acting City Clerk Resolution 2017-139, Human Rights Award - Anne McManus Resolution 2017-140, Human Rights Award - Ben Welshons, Sr. - Posthumously Resolution 2017-141, Directing the Payment of Bills Resolution 2017-142, approval of Cooperative Fire Protection Agreement with Minnesota Department of Natural Resources Division of Forestry and the Stillwater Fire Department Resolution 2017-143, a resolution approving the vacation of an existing drainage and utility easement at 1351 Dallager Court Resolution 2017-144, resolution of approval of Addendum No. 1 to the 2017 City of Stillwater Lumberjack Days Agreement dated July 18, 2017 Page 4 of 4 CITY OF STILLWATER, MINNESOTA REPORT PREPARED BY SHARON HARRISON, FINANCE DIRECTOR ALISON EGGER, ASSISTANT FINANCE DIRECTOR THE FINANCE DEPARTMENT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2016 MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA CITY OF STILLWATER, MINNESOTA Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2016 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal 3 GFOA Certificate of Achievement 6 Organizational Chart 7 List of Principal Officers 8 FINANCIAL SECTION Independent Auditors' Report 11 Management Discussion and Analysis 13 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Position 25 Statement of Activities 26 Fund Financial Statements: Balance Sheet — Governmental Funds 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 30 Statement of Revenues, Expenditures, and Changes in Fund Balance — Governmental Funds 32 Reconciliation of Statement of Revenues, Expenditures, and Changes In Fund Balance of Governmental Funds to the Statement of Activities ................ 34 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — General Fund 35 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — St. Croix Valley Recreation Center Fund 36 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Library Fund 37 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Parks Fund 38 Statement of Net Position — Proprietary Funds 40 Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds .41 Statement of Cash Flows — Proprietary Funds 42 Statement of Net Position — Fiduciary Funds 43 Notes to the Financial Statements 45 Required Supplementary Information: PERA Schedule of the City's Proportionate Share of Net Pension Liability 83 PERA Schedule of City Contributions 84 Schedule of Changes in Stillwater Fire Relief Association's Net Pension Liability (Asset) 85 Schedule of City Contributions to Stillwater Fire Relief Association 86 Schedule of Funding Progress -Other Post Employment Health Care Benefits 87 Combining and Individual Fund Financial Statements: Combining Balance Sheet — Nonmajor Governmental Funds 92 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance — Nonmajor Governmental Funds 94 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — Special Events Fund 96 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — Community Beautification Fund 97 CITY OF STILLWATER, MINNESOTA Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2016 TABLE OF CONTENTS Combining and Individual Fund Financial Statements (Continued): Page Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — Washington County Recycling Grant Fund 98 Statement of Changes in Assets and Liabilities — Fiduciary Funds 99 Other Supplementary Information: Schedule of Special Revenue Fund — Library Donations Fund — Balance Sheet 102 Schedule of Special Revenue Fund — Library Donation Fund — Statement of Revenues, Expenditures, and Changes in Fund Balance 104 Schedule of Debt Service Fund — Balance Sheet 106 Schedule of Debt Service Fund — Statement of Revenues, Expenditures, and Changes in Fund Balance 110 Schedule of TIF Districts Fund — Balance Sheet 114 Schedule of TIF Districts Fund — Statement of Revenues, Expenditures, and Changes in Fund Balance 116 Schedule of Proprietary Fund — Parking Fund — Statement of Net Position 118 Schedule of Proprietary Fund — Parking Fund — Statement of Revenues, And Changes in Net Position 119 Schedule of Proprietary Fund — Parking Fund — Statement of Cash Flows 120 STATISTICAL SECTION Financial Trends Net Position by Component, Last Ten Fiscal Years 122 Changes in Net Position, Last Ten Fiscal Years 124 Fund Balances, Governmental Funds, Last Ten Fiscal Years 126 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years 130 Revenue Capacity Assessed and Estimated Actual Value of Property, Last Ten Fiscal Years 132 Property Tax Rates — Per $1,000 of Assessed Tax Capacity Value, Direct and Overlapping Government, Last Ten Fiscal Years 134 Property Tax Levies and Collections, Last Ten Fiscal Years 136 Principal Taxpayers, Current Year and Nine Years Ago 138 Debt Capacity Ratio of Outstanding Debt by Type, Last Ten Fiscal Years 140 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Debt per Capita 142 Direct and Overlapping Governmental Activities Debt 143 Computation of Legal Debt Margin, Last Ten Fiscal Years 144 Demographic and Economic Information Demographic and Economic Statistics, Last Ten Fiscal Years 146 Principal Employers, Current Year and Nine Years Ago 147 Full -Time Equivalent Employees, City Government Employees by Function/Program, Last Ten Fiscal Years 148 Operating Information Capital Asset Statistics by Function/Program, Last Ten Fiscal Years 149 Operating Indicators by Function/Program, Last Ten Fiscal Years 150 OTHER REPORTS SECTION Report on Minnesota Legal Compliance 155 INTRODUCTORY SECTION June 24, 2017 • 1 Iwater THE BIRTHPLACE OF MINNESOTA Honorable Mayor Members of the City Council Citizens of the City of Stillwater, Minnesota Minnesota State law requires that cities over 2,500 population publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with U.S. generally accepted accounting principals (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Stillwater, Minnesota for the fiscal year ended December 31, 2016. This report consists of management's representations concerning the finances of the City of Stillwater. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Stillwater has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Stillwater's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Stillwater's financial statements have been audited by CliftonLarsonAllen LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended December 31, 2016, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Stillwater's MD&A can be found immediately following the report of the independent auditors on page 13. Profile of the Government The City of Stillwater, incorporated in 1894, is a growing community located in central Washington County on the St. Croix River, approximately 20 miles east of the Minneapolis/St. Paul metropolitan area. Stillwater encompasses an area of approximately 5,814 acres and serves a population of 19,693. CITY HALL: 216 NORTH FOURTH STREPT • STILLWATER, MINNESOTA 55082 PHONE: 651-430-8800 • WEBSITE: www.ci.stillwater.mn.us The City of Stillwater operates under the "Home Rule Charter" form of government under the provisions of State of Minnesota Law. The Mayor is president of the Council and together with the four -member City Council compromises the governing body of the City. The city council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a city administrator. The city administrator has the responsibility of carrying out the policies and ordinances of the city council, for overseeing the day-to-day operation of the City. The mayor is elected at -large and the Council members are elected by Wards to serve four-year overlapping terms of office. The City provides a full range of municipal services. These services include: general government, public safety (police & fire), public works (streets & fleet), parks and recreation, public improvements, and providing and maintaining sanitary sewer, storm sewer, signs & lighting and parking infrastructure. Water services are provided by the Board of Water Commission, a legally separate entity. Financial information for the Board of Water Commission are reported in a separate column within the City of Stillwater's financial statements. Additional information on the Board of Water Commission can be found in Note I.A in the notes to the financial statements. The annual budget is the foundation for the City of Stillwater's financial planning and control. All divisions are required to submit appropriations requests to the city administrator for review and consolidation into a proposed budget. The city administrator is responsible for submitting the proposed annual budget to the City Council in August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by resolution a final budget and certify it no later than December 30. The budget amounts cannot increase beyond the estimated receipts except to the extent that actual receipts exceed the estimate. Department directors may make transfers of appropriations within a department, but transfers of appropriations between departments require council approval. Budget -to -actual comparisons for the General Fund, St. Croix Valley Recreation Center, Library, Parks, Special Events, Downtown Beautification and Washington County Recycling which are the only funds for which an annual budget has been adopted, are provided in this report on pages 35 through 38 and 94 through 96. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Stillwater operates. Local economy. In the early 1970s, the City's residents and business owners began to encourage the historic preservation of commercial and residential buildings in the community. This movement has gathered momentum, acceptance and regulatory authority since its beginning and has been at least partially responsible for recapturing the historical rivertown character of the downtown business district. It has also encouraged the maintenance and restoration of historic homes in the City's residential neighborhoods. Many residences, businesses and shops are housed in buildings more than 100 years old. Downtown Stillwater and eight residential structures are on the National Register of Historic Places. Another 61 homes are estimated to be eligible for the National Register. A number of the City's older homes have been restored to their historical character and are open for public tours. In addition, a substantial downtown infrastructure improvement project was completed in 1991 and 1992, which included the separation and replacement of the 100 -year-old storm sewer and sanitary sewer systems, new streets and sidewalks, and new street lighting. This restoration and preservation movement has generated a significant tourist trade that is important to the City's economy. The 2030 Comprehensive Plan calls for continued growth of the City toward the west. The remaining undeveloped area was recently annexed into the City and encompasses approximately 670 acres. Of this area, 340 net acres are guided for residential development. At build -out, this expansion area could yield about 1,300 housing units, 60 acres of office and non -retail commercial property along State Highway 36, and five acres of retail. Six residential developments are currently building out with the potential for another 90 home sites. The estimated price points for these single-family homes range from under $350,000 to over $700,000. 4 The City has recently completed three municipal projects in the downtown area: 1) a pedestrian and bicycle promenade parallel to the St. Croix River, which will connect to a new Brown's Creek State trail; 2) improvements to all of the municipal parking lots along the St. Croix River; and 3) completion of flood control improvements along the St. Croix River. The City also has two new hotel projects currently under development in the downtown area. The St. Croix River Crossing Bridge project (a joint $624-$680 million project between Minneosta and Wisconsin) will be complete and open to traffic in late summer of 2017. The historic downtown Lift Bridge will be closed, changing traffic patterns in downtown Stillwater. Long-term financial planning. The City Council and staff are updating the 5 -year Capital Improvement Plan (CIP) that identifies major projects and capital equipment purchases for years 2018-2022. Many of these projects have been pending for years awaiting various forms of approval and funding sources. Total projects preliminarily identified amount to $44,205,900. All projects and capital purchases are rated 1 — 3 giving an indication of Council's priorities. Due to project timing issues and funding complexities it is acknowledged that the completion of all the projects identified in the 5 -year plan is unlikely. The CIP is computer assisted and easily upgradeable from year to year to assure that it remains dynamic and continually reflects Council's vision and goals. Major Initiatives The City recently completed construction of a new municipal fire station which will adjoin a National Guard Readiness Center. Future initiatives include: remodeling of existing space at City Hall for police department expansion and other department needs, updating mechanical and technology systems at City Hall, and implementation of the Bridgeview Park Plan and the City Trails Plan. Also, a citizens advisory committee has been convened to review the Downtown Chapter of the City's Comprehensive Plan and will be submitting updates to the City Council for consideration and action. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. A governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program requirements. The City of Stillwater received this award for the year ended December 31, 2015. This marks the twenty-sixth consecutive year that the City has received this prestigious award. A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2016 report to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We believe our current report continues to conform to the high standards of the Certificate program. The timely preparation of this report could not have been accomplished without the dedicated services of Alison Egger, Assistant Finance Director, the remainder of the Finance Department, auditors and other City staff. We also want to express our appreciation to the Mayor and City Council for their support for maintaining the highest standard of professionalism in the management of the financial operation of the City. Respectfully submitted, J. Thomas McCarty City Administrator Sharon1CJll- arrison Finance Director 5 6 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Stillwater Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2015 "704oz-, Executive Director/CEO 6 CITY OF STILLWATER, MINNESOTA Organizational Chart December 31, 2016 CITIZENS OF STILLWATER CITY COUNCIL BOARDS AND COMMISSIONS CITY ADMINISTRATOR/ TREASURER CITY ATTORNEY ADMINISTRATION DEPT. FINANCE DEPT. COMMUNITY DEVELOPMENT DEPT. BUILDING INSPECTIONS DEPT. 7 FIRE DEPT. POLICE DEPT. ENGINEERING/ PUBLIC WORKS DEPT. ENGINEERING DEPT. PUBLIC WORKS DEPT. CITY OF STILLWATER, MINNESOTA LIST OF PRINCIPAL OFFICERS December 31, 2016 ELECTED OFFICIALS Mayor Ted Kozlowski Term Expires: January 2019 Councilmembers Ward 1 Doug Menikheim Term Expires: January 2019 Ward 2 David Junker Term Expires: January 2017 Ward 3 Tom Weidner Term Expires: January 2017 Ward 4 Mike Polehna Term Expires: January 2019 APPOINTED OFFICIALS J. Thomas McCarty, City Administrator/Treasurer David T. Magnuson, City Attorney Sharon Harrison, Finance Director William Turnblad, Community Development Director Stuart Glaser, Fire Chief Shawn Sanders, Public Works Director/City Engineer John Ganaway, Police Chief Lynne Bertalmio, Library Director 8 FINANCIAL SECTION CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Stillwater, Minnesota CliftonLarsonAllen LL P CLAconnect,com Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Stillwater (the City), as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Stillwater as of December 31, 2016, and the respective changes in financial position, the respective budgetary comparison for the general fund and the St. Croix Value Recreation Center, Library, and Parks special revenue funds and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. A member of Asi,Nexia International 11 Honorable Mayor and Members of the City Council City of Stillwater, Minnesota Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, schedules of the City's proportionate share of net pension liabilities and assets and schedule of pension contributions, and the schedule of funding progress — other postemployment health care plan benefits as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Stillwater's basic financial statements. The combining and individual fund financial statements, schedule of special revenue fund — library donation fund — balance sheet and statement or revenues, expenditures, and changes in fund balance, the schedule of debt service fund — balance sheet and schedule of revenues, expenditures, and changes in fund balances, the schedule of TIF districts — balance sheet and schedule of revenues, expenditures, and changes in fund balances, schedule of proprietary fund — parking fund — balance sheet, schedule of revenues, expenses, and changes in net position, and statement of cash flows, the introductory section, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements, schedule of special revenue fund — library donation fund — balance sheet and statement or revenues, expenditures, and changes in fund balance, the schedule of debt service fund — balance sheet and schedule of revenues, expenditures, and changes in fund balances, the schedule of TIF districts — balance sheet and schedule of revenues, expenditures, and changes in fund balances, and schedules of proprietary fund — parking fund — balance sheet, schedule of revenues, expenses, and changes in net position, and statement of cash flows (the supplementary information) is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information identified above is fairly stated, in ail material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. CtiftonLarsonAllen LLP Minneapolis, Minnesota June 21, 2017 12 City of Stillwater, Minnesota Management's Discussion and Analysis December 31, 2016 As management of the City of Stillwater, Minnesota, we offer readers of the City of Stillwater's financial statements this narrative overview and analysis of the financial activities of the City of Stillwater for the fiscal year ended December 31, 2016. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3 through 5 of this report. FINANCIAL HIGHLIGHTS: • The assets and deferred outflows of resources of the City of Stillwater exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $97,153,009 (net position). Of this amount, the City has a deficit of $12,262,494 in unrestricted net position. This consists of a deficit of $13,610,309 in governmental activities and positive unrestricted net position of $1,347,815 in business -type activities. • The City's total net position decreased by $5,209,991. • As of the close of the current fiscal year, the City of Stillwater's governmental funds reported combined ending fund balance of $38,855,882 an increase of $10,128,290 in comparison with the prior year. Approximately 8% of this total amount or $3,127,595 is available for use within the City's policies (unassigned fund balance). • At the end of the current fiscal year, unassigned fund balance for the general fund was $3,127,595 or 30% of total general fund expenditures. • The City of Stillwater's total bonded debt increased by $11,515,000 (47 percent) during the current fiscal period. The key factor to the increase was the issuance of three (Series 2016A, 2016BC and 2016C) bonds totaling $15,540,000. $9,035,000 of which were refunding bonds, Series 2016B and 2016C. OVERVIEW OF THE FINANCIAL STATEMENTS: This discussion and analysis are intended to serve as an introduction to the City of Stillwater's basic financial statements. The City of Stillwater's basic financial statements comprise three components: Required Components of 1. Government -wide financial statements City of Stillwater's Annual Financial Report 2. Fund financial statements 3. Notes to the financial statements This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government - wide financial statements are designed to provide readers with a broad overview of the City of Stillwater's finances, in a manner similar to private -sector business. The statement of net position presents information on all of the City of Stillwater's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Stillwater is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal 13 Management's Discussion and Analysis Basic Financial Statements Required and Optional Supplementary Information Government - wide Financial Statements Fund Financial Statements Summary Notes to the Financial Statements Detail City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused compensated absences). Both -of the -government -wide -financial -statements -distinguish -functions of the City -of Stillwater that are -principally supported by taxes, and charges for services (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Stillwater include general government, public safety, public works, culture and recreation, and economic development. The business -type activities of the City of Stillwater include a sanitary and storm sewer utility, signs and lighting, and parking program. The government -wide financial statement include not only the City of Stillwater itself (primary government), but also the Board of Water Commission (component unit), which is a separate legal entity for which the City of Stillwater is financially accountable. Financial information for the Board of Water Commission is reported separately from the financial information presented for the primary government itself. The government -wide financial statements can be found on pages 1470 this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Stillwater, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of Stillwater can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental functions and governmental activities. The City of Stillwater maintains seventeen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, St. Croix Valley Recreation Center fund, Library fund, Parks fund, Debt Service fund, Capital Projects fund, and TIF Districts fund, all of which are considered to be major funds. Data from the other ten governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Stillwater adopts an annual appropriated budget for its general fund and certain special revenue funds. A budgetary comparison statement has been provided for the general fund and special revenue funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 28 through 38 of this report. Proprietary funds. The City of Stillwater maintains four proprietary fund types. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of 14 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 Stillwater uses enterprise funds to account for its sanitary and storm sewer utilities, signs and lighting, and parking program. The proprietary fund statements provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sanitary and storm sewer funds, the signs and lighting fund and the parking fund, which are considered to be major funds of the City of Stillwater. The basic proprietary fund financial statements can be found on pages 40 through 42 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of Stillwater's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund statements can be found on page 43. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 45 through 80 of this report. Other information. The combining Nonmajor governmental fund statements referred to earlier can be found on pages 92 through 95 of this report. Other informational schedules and statements can be found on pages 96 through 120. GOVERNMENT -WIDE FINANCIAL ANALYSIS: As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Stillwater, assets and deferred outflows of resources exceeded liabilities and deferred inflows by $97,153,009 at the close of the most recent fiscal year. By far the largest portion of the City of Stillwater's net position, $84,244,629, or 87%, reflects its investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to acquire those assets that is still outstanding. The City of Stillwater uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Stillwater's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Approximately 26% or $25,100,528 of net position represents net position subject to constraints imposed by external creditors, primarily bond covenants, external donors. CITY OF STILLWATER'S NET POSITION Current and other assets Capital assets Total assets Deferred outflows of resources Non-current liabilities outstanding Other liabilities Total liabilities Deferred inflows of resources Net position: Net investment in capital assets Restricted Unrestricted Total net position Governmental activities Business -type activates Total 2016 2015 2016 2015 2016 2015 $ 45,045,644 88,332,088 133,377,732 $ 34,736,583 $ 2,550,585 $ 2,476,835 $ 47,596,229 $ 37,213,418 88,800,657 13,195,217 13,307,269 101,527.305 _102,107,926 123, 537, 240 15, 745, 802 15, 784,104 149,123, 534 139, 321, 344 10,236,553 1,387,003 304,075 65,836 10,540,628 1,452,839 56,854,266 34,504,666 1,204,683 893,680 58,058,949 35,398,346 2,448,435 2,092,333 227,753 109.956 2,676,188 2.202.289 59,302,701 36,596,999 1,432,436 1,003.636 60.735,137 37,600,635 1,701,607 764,211 74,409 46,337 1,776,016 810,548 71,049,412 69,919,712 25,170, 874 19, 805, 481 (13,610,309) (2,162,160) $ 82,609,977 , $ 87,563,033 13,195,217 13,307,269 84,244,629 83,226,981 25,170,874 19,805,481 1,347,815 1.492,698 (12,262,494) (669,462) $ 14,543,032 $ 14,799,967 $ 97,153,009 $ 102,363,000 15 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 At the end of the current fiscal year, the City of Stillwater is able to report positive balances in two of the three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities with unrestricted net position in the governmental activities and in total being the exception. Governmental activities. Governmental activities decreased the City of Stillwater's net position by $4,953,056. T_he_most_significant _change_in_governmental_net_position_is_the_result_of_investing_of_revenues_from_capital grants, special assessments, and tax increments into the construction or major improvements of the City's capital assets and infrastructure. Business -type activities. Business -type activities decreased the City of Stillwater's net position by $256,935 The most significant change in net position is a result of the investment in capital assets in the sanitary sewer fund. The following chart summarizes the changes in net position for the current fiscal year: CITY OF STILLWATER'S CHANGES IN NET POSITION Governmental activities Business -type activities Total 2016 2015 2016 2015 2016 2015 Revenues: Program revenues: Charges for services $ 3,760,143 $ 3,451,947 $ 3,916,748 $ 3,769,721 $ 7,676,891 $ 7,221,668 Operating grants and contributions 652,863 697,228 - 652,863 697,228 Capital grants and contributions 3,558,295 746,429 - 3,558,295 746,429 General revenues: Property taxes 12,068,746 11,360,724 12,068,746 11,360,724 Tax increment 1,373,886 1,362,487 1,373,886 1,362,487 Lodging tax 211,723 198,544 - - 211,723 198,544 Franchise taxes 462,988 449,333 - 462,988 449,333 Grants and contribution not restricted for a specific purpose 662,095 647,927 - - 662,095 647,927 Unrestricted investment earnings (loss) 175,342 309,330 22,177 35,821 197,519 345,151 Total revenues 22,926,081 19,223,949 3,938,925 3,805,542 26,865,006 23,029,491 Expenses: General government 4,366,424 3,780,858 - 4,366,424 3,780,858 Public safety 7,059,377 5,414,392 - - 7,059,377 5,414,392 Public works 3,385,412 3,256,154 - 3,385,412 3,256,154 Culture and recreation 4,768,962 4,561,236 - - 4,768,962 4,561,236 Economic development 7,010,850 991,412 - 7,010,850 991,412 Interest on long-term debt 1,295,302 828,193 - - 1,295,302 828,193 Sanitary sewer - 2,848,988 2,315,948 2,848,988 2,315,948 Storm sewer - - 526,292 498,336 526,292 498,336 Signs & lighting - 366,118 354,193 366,118 354,193 Parking - - 447,272 363,914 447,272 363,914 Total expenses 27,886,327 18,832,245 4,188,670 3,532,391 32,074,997 22,364,636 Change in net position before transfers (4,960,246) 391,704 (249,745) 273,151 (5,209,991) 664,855 Transfers 7,190 (818,115) (7,190) 818,115 - - Change in net position (4,953,056) (426,411) (256,935) 1,091,266 (5,209,991) 664,855 Net position - beginning 87,563,033 87,989,444 14,799,967 13,708,701 102,363,000 101,698,145 Net position - ending $82,609,977 $87,563,033 $14,543,032 $14,799,967 $ 97,153,009 $102,363,000 16 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 Below are specific graphs that provide comparisons of the government activities' direct program revenues with their expenses. Any shortfalls in direct revenues are primarily supported by property tax levy or general state aid. Expenses and Program Revenues — Governmental Activities $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 General Public safety Public works Culture and Economic Interest on govemment recreation development long -tem debt ■Expenses ■Revenues Revenues by Source — Governmental Activities Capital grants and contributions 16% Taxes 52% Operating grants and contributions 3% Charges for services 17% Unrestricted investment earnings 1% 17 Tax increment 6% Franchise fees 2% City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 Below are specific graphs that provide comparisons of the business -type activities direct program revenues with their expenses. Excess revenues are retained within each fund until such time that capital replacement is needed. Expenses and Program Revenues — Business -type Activities $3,000,000 $2,500,000 $2,000,000 - $1,500,000 $1,000,000 - $500,000 $0 Sanitary sewer Storm sewer Signs & lighting Parking ■ Expenses ■ Revenues Revenues by Source — Business -type Activities Charges for services 99% 18 Unrestricted investment earnings 1% City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS: As noted earlier, the City of Stillwater uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds. The focus of the City of Stillwater's governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Stillwater's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Stillwater's governmental funds reported combined ending fund balances of $38,855,882, an increase of $10,128,290. Of this total, $27,996,173 is restricted due to external limitations on its use, such as debt covenants, legal restrictions or intention of grantors, donors or trustees. A total of $107,661 is considered unspendable because it has been used for prepaid items. A total of $3,438,415 is committed meaning that the City Council established, by resolution, that the fund balance of certain funds will be used for a specific purpose. In addition, a total of $4,186,038 has been assigned meaning that management has delegated this portion to compensated absences. Finally, the remaining $3,127,595 is unassigned and can be used for any lawful purpose. The general fund is the primary operating fund of the City of Stillwater. At the end of the current fiscal year, unassigned fund balance of the general fund was $3,127,595, while the total fund balance was $4,452,445. As a measure of the general fund's liquidity, it may be useful to compare unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 30% of total general fund expenditures, while total fund balance represents 43% of that same amount. The fund balance of the City of Stillwater's general fund did increase during the current fiscal year by $27,445 due primarily to a decrease in spending. The general fund's expenditures were less than its budget appropriations by $906,086 primarily due to unspent capital asset appropriations. The St. Croix Valley Recreation Center fund has a total fund balance of $2,727,471, Of this total, $605 is considered nonspendable and being used for prepaid items and the remaining $2,2,726,866 is committed, by resolution, but available specifically for operations of the St Croix Valley Recreation Center. The fund balance increased by $362,948 due primarily to an increase in revenues from increased demand. The Library fund has total fund balance of $114,889. Of this total, $18,968 is considered nonspendable and being used for prepaid items and $92,921 is considered committed, by resolution, and to be used specifically for Library operations and compensated absences. The fund balance decreased by $3,576 due to a planned use of fund balance. The Parks fund has a total fund balance of $490,426. Of this total, $6,339 is considered nonspendable and being used for prepaid items and $484,087 is considered committed, by resolution, and to be used specifically for Park operations and compensated absences. The fund balance increased by $20,288 due to decreased spending. The Debt Service fund has a total fund balance of $10,197,146, all of which is restricted for the retirement of related debt. The net increase of $4,258,607 is due primarily to the issuance of Series 2016A, 2016B and 2016C bonds. The Capital Projects fund has a total fund balance of $12,115,615 all of which is restricted for current and future capital projects. The net decrease of $5,921,462 is primarily due to bond proceeds from the issuance of Series 2016A bonds. The TIF District fund has a total fund balance of $7,685,313 all of which is restricted for TIF (Tax Increment Financing) related expenditures. The fund balance decreased by $591,059 due to TIF eligible projects (hotel, etc.). Proprietary funds. The City of Stillwater's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. 19 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 The Sanitary Sewer fund has total net position of $6,213,722, of which $415,315 is unrestricted. Net position decreased by $344,582 due primarily to lift station repairs and an increase in rates for waste water treatment. Any resources available in this fund will be used for future sewer related capital projects. The Storm Sewer fund has total net position of $730,579, of which $526,840 is unrestricted. Net position increased by -$107-,097 due -primarily -to -decreased -spending. The Signs and Lighting fund has total net position deficit of $67,986. The net position increased by $21,852 in 2016. The negative net position balance will continued to be recovered with future service charge receipts. The Parking fund has total net position of $7,666,717, of which $487,290 is unrestricted. Net position decreased by $41,302. Any resources available in this fund will be used for future parking related capital projects. GENERAL FUND BUDGETARY HIGHLIGHTS: Budget Amendments: During the year there were no changes in appropriations between the original budget and the final budget. Budget to Actual: Revenues: In 2016, the General Fund exceeded the original budgeted revenue expectations by $139,588. Some of the variances from the original budget to actual are as follows: Property Taxes: The City's largest revenue source had a negative budget to actual variance of $92,168; $6,359,683 or 98.6% of the budgeted amount was collected. Intergovernmental Revenue: The City's second largest revenue source had a positive budget to actual variance of $90,109 which primarily was due to higher than expected municipal state aid revenues. Charges for services: The City's third largest funding source has a positive budget to actual variance of $90,003 due mainly to an increase in planning fees. Miscellaneous: $106,270 of the positive variance is due to insurance dividends and reimbursement claims received in 2016 but not budgeted for. Other financing sources: Transfers In: Transfers In for 2016 were comprised solely of reimbursement of capital outlay expenditures being funded by bond proceeds. Therefore, the negative budget to actual variance of $880,919 indicates that the City expended less on capital outlay than what was expected to in its original budget. Expenditures: In 2016, the General Fund's actual expenditures were less than expected by $906,086 is directly related to unspent (time constraints) capital asset items that were planned for 2016. CAPITAL ASSET AND DEBT ADMINISTRATION: Capital assets. The City of Stillwater's investment in capital assets for its governmental and business -type activities as of December 31, 2016, amounts to $101,527,305 (net of accumulated depreciation). This investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and infrastructure. The total increase in the City of Stillwater's investment in capital assets (net of accumulated depreciation) was 2%. 20 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 Land Buildings and improvements Improvements other than buildings Machinery and equipment Vehicles Infrastructure Construction in process Total CITY OF STILLWATER'S CAPITAL ASSETS (net of depreciation) Governmental activities Business -type activities Total 2016 2015 2016 2015 2016 2015 $ 9,116,338 $ 9,116,338 $ 402,620 $ 402,620 $ 9,518,958 $ 9,518,958 29,757,178 23,648,310 5,604,374 5,680,478 35,361,552 29,328,788 3,157,278 3,402,008 1,383,374 1,473,016 4,540,652 4,875,024 3,466,354 2,806,801 484,059 512,454 3,950,413 3,319,255 1,470,111 1,663,785 133,617 96,788 1,603,728 1,760,573 38,232,235 39,029,220 4,900,213 5,128,922 43,132,448 44,158,142 3,132,594 9,134,195 286,960 12,991 3,419,554 9,147,186 $ 88,332,088 $ 88,800,657 $ 13,195,217 $ 13,307,269 $101,527,305 $102,107,926 Additional information regarding the City's capital assets can be found on pages 59 and 60 of this report. Long-term debt. At the end of the current fiscal year, the City of Stillwater had total bonded debt outstanding of $35,890,000. Of this amount $21,655,000 comprises tax -supported debt, $6,585,000 is tax increment debt, $7,650,000 is revenue -supported debt. Of the total debt, $29,305,000t is a direct obligation of the City and backed with a pledge of the full faith, credit and taxing power of the City. CITY OF STILLWATER'S OUTSTANDING DEBT General Obligation Bonds General Obligation Bonds: General Goverment Revenue Tax Increment Revenue Bonds: Tax Increment Total Governmental activities 2016 2015 $ 21,655,000 1,065,000 6,585,000 6,585,000 $ 18,630,000 1,420, 000 4,325,000 $ 35,890,000 $ 24,375,000 The City of Stillwater's total bonded debt increased by $11,515,000 (47 percent) during the current fiscal year. The key factor applicable to the increase was the issuance of Series 2016A, Series 2016B and Series 2016C bonds. Additional information regarding the City's long-term debt can be found beginning on pages 61 through 63 of this report. Minnesota State Statutes limit the amount of general obligation debt to 3% of the total estimated taxable market value. The current legal debt margin for the City of Stillwater is $41,164,268. Only $21,655,000 of the City's outstanding debt is subject to the statutory limit. The calculation for the City's legal debt margin can be found on page 144 through 145 of this report. The City of Stillwater's Aa2 bond rating was reaffirmed by Moody's on May 31, 2017 for the City's general obligation debt. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES: • The City's total estimated market value increased by 18.1%. • The City's taxable market value increasing by 4.9% in 2016 with values for 2017 expecting to increase by 4%. • An increase in FTE's to fulfill needs described in the strategic plan and the increase need in service areas. • An increase in capital funds to complete the remodel/renovate significant areas within City Hall & the Police Department. 21 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31, 2016 • Increase in building expenditures due to the opening of the new Fire Station. • The State revenue forecasts appear to be able to allow the distribution of the City's promised aid payments in 2017, therefore, the City included this aid disbursement in its 2017 budget. • Interest rates that the City has been able to obtain on its investments have continued to be low in 2016. Continued lower investment rates are expected to continue for 2017. • Increased -health -care -costs -continue -to -be a -concern -for 2017. The City's appointed officials considered many factors when developing the 2017 budget and establishing the 2016 tax levy collectible in 2017 and the appropriate fees that will be charged by business -type activities. With the focus on sustainability and its adopted strategic plan, the 2017 budget was prepared with emphasis on ensuring current operational needs will be met as well as meeting long-term capital requirements. Through constant adherence to its fiscal policies the City is expected to address long-term financial demands without causing significant fluctuation in the City's tax burden. All of these factors were considered when preparing the City of Stillwater's 2017 fiscal year budget. REQUESTS FOR INFORMATION: This financial report is designed to provide a general overview of the City of Stillwater's finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Stillwater, 216 4th Street North, Stillwater, Minnesota, 55082. 22 Basic Financial Statements CITY OF STILLWATER, MINNESOTA STATEMENT OF NET POSITION December 31, 2016 ASSETS Cash and pooled investments Cash and pooled investments -held in escrow Accrued interest receivable Receivable (net of allowance for uncollectibles) Internal balances Due from other governments Due from component unit Prepaid items Notes receivable Inventories Net pension asset Capital assets, nondepreciable Capital assets (net of accumulated depreciation) Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding of bonds Deferred outflows - pensions Total deferred outflows of resources LIABILITIES Accounts payable Contracts payable Salaries payable Unearned revenue Due to other governments Due to component unit Due to primary government Deposits payable Accrued expenses Accrued interest payable Noncurrent liabilities: Due within one year Due in more than one year Net pension liability Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions NET POSITION Net investment in capital assets Restricted for: Debt service Capital projects TIF projects General government activities Culture and recreation activities Public works activities Public safety activities Fire relief pension Unrestricted Total net position Primary Government Governmental Business -type Activities Activities Total Component Unit Water $ 36,235,079 $ 1,750,595 $ 37,985,674 $ 2,414,601 3,839,376 56,627 3,434,912 160,647 16,017 107,661 54,930 1,140, 395 12,248,932 76,083,156 133,377,732 220,844 10,015,709 10,236,553 912,241 533,397 435,326 36,504 94,354 436,613 5,774,482 35,849, 816 15,229,968 59,302,701 1,701,607 71,049,412 3,839,376 3,424 60,051 641,337 4,076,249 5,037 165,684 16,017 150,192 257,853 54,930 1,140,395 689,580 12,938,512 12,505,637 88,588,793 15,745,802 149,123,534 220,844 304,075 10,319,784 304,075 10, 540,628 172,253 9,932 39,836 4,445 1,287 20,528 449,822 734,333 1,432,436 2,056 334,989 26,045 58,731 94,987 11,688,667 14,620,076 227,478 227,478 1,084,494 96,627 543,329 475,162 38,474 40,949 1,287 14,730 94,354 22,318 436,613 15,073 5,795,010 132,522 36,299,638 1,278,788 15, 964, 301 552,126 60,735,137 2,150,658 74,409 1,776,016 68,723 13,195,217 84,244,629 10,481,030 5,985,314 5,985,314 - 9,075,453 - 9,075,453 7,852,392 7,852,392 74,551 74,551 597,708 597,708 198,433 198,433 70,344 70,344 1,316,679 - 1,316,679 - (13,610,309) 1,347,815 (12,262,494) 2,147,143 $ 82,609,977 $ 14,543,032 $ 97,153,009 $ 12,628,173 The notes to the financial statements are integral part of this statement. 25 CITY OF STILLWATER, MINNESOTA STATEMENT OF ACTIVITIES Year Ended December 31, 2016 Functions/Programs Primary Government: Governmental Activities: General government Public safety Public works Culture and recreation Economic .development Interest on long -tem debt Total governmental activities Business -type Activities: Sanitary sewer Storm sewer Signs & lighting Parking Total business -type activities Total primary government Component Unit: Water Expenses Program Revenues Charges for Services Operating Grants and Contributions $ 4,366,424 $ 473,930 $ 7,059,377 1,015,496 3,385,412 414,733 4,768,962 1,855,984 7,010,850 - 1,295,302 27,886,327 2,848,988 526,292 366,118 447,272 3,760,143 2,486,019 638,621 387,937 404,171 4,188,670 3,916,748 Capital Grants and Contributions 40,431 $ 4,260 571,201 41,231 652,863 3,053,415 159,674 340,946 3,558,295 $ 32,074,997 $ 7,676,891 $ 652,863 $ 3,558,295 $ 1,661,362 $ 1,620,912 $ $ 307,457 General revenues: Property taxes Tax increment Lodging tax Franchise taxes Grants and contributions not restricted for a specific purpose Unrestricted investment earnings (loss) Transfers Total general revenues Change in net postion Net position, January 1 Net position, December 31 The notes to the financial statements are integral part of this statement. 26 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -type Activities Activities $ (3,847,803) $ (5,472,680) 123,967 (2,753,304) (6,669,904) (1,295,302) (19,915,026) (19,915,026) 12,068,746 1,373,886 211,723 462,988 662,095 175,342 7,190 14,961,970 (4,953,056) 87,563,033 Total - $ (3,847,803) (5,472,680) - 123,967 - (2,753,304) (6,669,904) (1,295,302) (362,969) 112,329 21,819 (43,101) (271,922) (271,922) 22,177 (7,190) 14,987 (256,935) 14,799,967 $ 82,609,977 $ 14,543,032 (19,915,026) (362,969) 112,329 21,819 (43,101) (271,922) (20,186,948) 12,068,746 1,373,886 211,723 462,988 662,095 197,519 14,976,957 (5,209,991) 102,363,000 $ 97,153,009 Component Unit Water $ 267,007 7,670 7,670 274,677 12,353,496 $ 12,628,173 CITY OF STILLWATER, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2016 ASSETS Cash and pooled investments Cash and pooled investments -held in escrow Accrued interest receivable Accounts receivable Taxes receivable: Delinquent Due from county Special assessments receivable: Delinquent Deferred Due from county Due from other governments Due from component unit Prepaid items Note receivable Total Assets LIABILITIES , DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Contracts payable Salaries payable Due to other governments Due to component unit Deposits payable Total Liabilities Deferred Inflows of Resources: Unavailable revenue Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances General St Croix Valley Recreation Center Library $ 5,295,249 $ 2,940,611 $ 205,743 5,148 147,565 145,703 90,079 18,781 86,812 1,655 4,777 2,735 81,749 5,880,253 738,435 37,651 355,998 34,412 77,654 1,244,150 183,658 81,749 1,243,101 3,127,595 5,309 605 54,930 318 2,245 18,968 3,001,455 227,274 100,760 118,269 25 14,597 48,149 50,572 2,067 219,054 115,385 54,930 605 2,726,866 4,452,445 $ 2,727,471 18,968 92,921 111,889 $ 5,880,253 $ 3,001,455 $ 227,274 The notes to the financial statements are an integral part of this statement. 28 Parks $ 534,444 1,011 1,150 6,339 Debt Service $ 6,309,928 3,839,376 8,443 Capital Projects $ 12,192,988 20,568 44,388 TIF Districts Other Governmental Funds Total Governmental Funds $ 7,657,106 $ 1,099,010 $ 36,235,079 - - 3,839,376 14,138 1,692 56,627 7,890 200,993 54,734 4,585 2,225 207,247 39,399 30,873 14,194 174,545 9,423 542,944 10,261,303 16,855 28,756 207 6,700 13,293 2,549,843 7,466 153,625 106,479 41,497 164,854 2,801,509 - 9,121 160,647 109,214 - - 107,661 54,930 15,124,108 7,852,517 8,454 329,328 92,990 10,000 52,518 440,772 6,339 484,087 64,157 2,567,721 10,197,146 490,426 10,197,146 $ 542,944 $ 10,261,303 125 1,108,592 43,998,446 33,015 912,241 533,397 435,326 36,504 93,197 94,354 125 33,015 2,105,019 167,079 3,037,545 9,172,678 7,685,313 2,942,937 12,115,615 7,685,313 941,036 134,541 1,075,577 107,661 27,996,173 3,438,415 4,186,038 3,127,595 38,855,882 $ 15,124,108 $ 7,852,517 $ 1,108,592 $ 43,998,446 29 CITY OF STILLWATER, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2016 Total fund balance - total governmental funds (page 29) $ 38,855,882 Amounts reported for governmental activities in the statement of net position (page 25) are different because: Capital assets used in governmental activities -are not financial resources and, therefore, are not reported in the governmental funds. Governmental capital assets Accumulated depreciation Other long-term assets that are not available to pay for current -period expenditures and, therefore, are unavailable resources in the governmental funds. 137,113,340 (48,781,252) Delinquent property taxes and special assessments 181,106 Deferred special assessments 2,801,509 Notes receivable 54,930 Long-term liabilities are not due and payable in the current period, and, therefore, are not reported in the governmental funds. Long-term debt payable (35,890,000) Compensated absences (1,369,440) Net OPEB obligation (3,179,234) Net pension obligation (including deferred in/outflows) (6,915,866) Net pension asset 1,140,395 Accrued interest payable (436,613) Unamortized premium (1,185,624) Unamortized refunding 220,844 Net position of governmental activities (page 25) The notes to the financial statements are an integral part of this statement. 30 88,332,088 3,037,545 (47,615,538) $ 82,609,977 THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2016 REVENUES Property taxes Tax increment Lodging tax Franchise taxes Licenses and permits Special assessments Intergovernmental Charges for services Fines and forfeits Investment income: Interest Fair value decrease in investments Donations Miscellaneous Total revenues General St Croix Valley Recreation Center Library Parks $ 6,359,683 $ - $ 1,171,625 $ 805,988 462,988 - 501,126 - 1,350 15,157 1,281,586 956,514 1,623,032 72,364 21,770 69,881 8,650 30,004 560 1,359 (21,008) (21,664) (1,296) (4,128) - 51,586 9,000 229,570 18,310 28,732 8,801 9,864,147 1,649,682 1,323,571 844,140 EXPENDITURES Current: General government 3,531,162 Public safety 5,045,005 - Public works 1,257,317 - - Culture and recreation - 1,126,170 1,319,147 822,352 Economic development Capital Outlay 553,439 75,739 89,754 94,876 Debt Service: Principal - Interest - Bond issuance fees Professional services - Total expenditures 10,386,923 1,201,909 1,408,901 917,228 Excess (deficiency) of revenues over expenditures (522,776) 447,773 (85,330) (73,088) OTHER FINANCING SOURCES (USES) Transfers in 677,531 87,624 81,754 93,376 Transfers (out) (127,310) (172,449) Issuance of debt Premium on issued debt Payment on refunding bond Total other financing sources (uses) 550,221 (84,825) 81,754 93,376 Net change in fund balances Fund Balances -January 1 Fund Balances -December 31 27,445 362,948 (3,576) 20,288 4,425,000 2,364,523 115,465 470,138 $ 4,452,445 $ 2,727,471 $ 111,889 $ 490,426 The notes to the financial statements are an integral part of this statement. 32 Debt Service $ 3,420,845 57,417 13,505 (34,459) 37,788 3,495,096 6,223,165 2,815,000 775,294 292,911 58,903 10,165,273 (6,670,177) 1,727,287 (164,049) 10,215,000 360,546 (1,210,000) 10,928,784 4,258,607 5,938,539 $ 10,197,146 Capital Projects $ 278,844 1,180,739 681,713 880,841 30,397 (83,933) 461,387 3,429,988 32,476 42,181 45,242 2,475, 026 58,850 2,653,775 776,213 298,549 (940,285) 5,325,000 461,985 5,145,249 5,921,462 TIF Districts 1,372,407 20,831 27,587 (57,696) 377,811 1,740,940 777,161 777,161 963,779 (1,554,838) (1,554,838) (591,059) Other Governmental Funds $ 63,958 211,723 75,548 1,004 375 3,005 (6,917) 68,893 234,158 651,747 298,021 15,204 31,273 113,419 61,655 519,572 132,175 132,175 Total Governmental Funds $ 12,100,943 1,372,407 211,723 462,988 502,476 1,274,144 2,038,847 3,555,525 70,256 115,067 (231,101) 129,479 1,396,557 22,999,311 3,829,183 5,092,685 1,330,771 3,381,088 7,045,568 3,350,489 2,815,000 775,294 351,761 58,903 28,030,742 (5,031,431) 2,966,121 (2,958,931) 15,540,000 822,531 (1,210,000) 15,159,721 10,128,290 6,194,153 8,276,372 943,402 28,727,592 $ 12,115,615 $ 7,685,313 $ 1,075,577 $ 38,855,882 CITY OF STILLWATER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended December 31, 2016 Net change in fund balances - total governmental funds (page 33) $ 10,128,290 Amounts reported for governmental activities in the statement of activities (page 27) are different because: Governmental fundsreportcapital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlays Depreciation expense 3,350,489 (3,933,769) The net effect of various miscellaneous transactions involving capital assets, including sales, trade-ins, transfers and donations, is to decrease net position. Contributions 114,711 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. Deferred property taxes (30,718) Deferred special assessments 70,309 Other (18,310) Long-term debt (e.g., bonds, leases) proceeds provide current financial resources to governmental funds, while issuing debt increases long-term liabilities in the statement of net position. Repayment of principal of Tong -term debt is an expenditure in the governmental funds, while the repayment reduces Tong -term liabilities in the statement of net position. Interest is recognized as an expenditure in the governmental funds when it is due, however, in the statement of activities interest expense is recognized as it accrues regardless of when it is due. In addition, governmental funds report the effect of issuance costs, premiums and similar items when the debt is initially issued, whereas these amounts are deferred and amortized in the statement of activities. The net effect of these differences in the treatment of long-term debt and related items is as follows: Principal retirement on long-term debt Change in accrued interest expense Amortization of premium, refunding, and write-off of issuance costs Some expenses reported in the statement of activities do not require the use of current financial resources and , therefore, are not reported as expenditures in governmental funds. Compensated absences increase Net OPEB Obligation Net pension obligation 4,025,000 (118,704) (319,365) (89,906) (428,933) (1,691,380) (583,280) 114,711 21,281 (12,423,839) (2,210,219) Change in net position of governmental activities (page 27) $ (4,953,056) The notes to the financial statements are integral part of this statement. 34 CITY OF STILLWATER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2016 REVENUES Property taxes Franchise taxes Licenses and permits Special assessments Intergovernmental Charges for services Fines and forfeits investment income: Interest Fair value decrease in investments Miscellaneous Total revenues EXPENDITURES General government Mayor and council Elections MIS support services Finance Administration Legal/City attorney Plant/City hall Community development Unallocated Public safety Police Fire Inspections Civil defense Public works Engineering Streets Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Sale of property Total other financing sources (uses) Net change in fund balance Fund balance -January 1 Fund balance -December 31 Budgeted Amounts Original and Final $ 6,451,851 450,000 476,320 10,000 1,191,477 866,511 115,100 40,000 123,300 9,724,559 Actual Amounts $ 6,359,683 462,988 501,126 15,157 1,281,586 956,514 69,881 8,650 (21,008) 229,570 9,864,147 Variance with Final Budget Positive (Negative) $ (92,168) 12,988 24,806 5,157 90,109 90,003 (45,219) (31,350) (21,008) 106,270 139,588 230,673 248,116 (17,443) 36,825 26,802 10,023 468,491 429,946 38,545 463,064 435,383 27,681 750,268 698,590 51,678 297,579 307,444 (9,865) 200,941 134,494 66,447 452,797 365,766 87,031 971,955 978,494 (6,539) 3,272,380 3,231,147 41,233 1,898,973 1,604,403 294,570 353,907 355,770 (1,863) 19,300 10,878 8,422 318,018 298,227 19,791 1,557,838 1,261,463 296,375 11,293,009 10,386,923 906,086 (1,568,450) (522,776) 1,045,674 1,558,450 10,000 1,568,450 The notes to the financial statements are an integral part of this statement. 35 677,531 (127,310) 550,221 (880,919) (127,310) (10,000) (1,018,229) 27,445 $ 27,445 4,425,000 $ 4,452,445 CITY OF STILLWATER, MINNESOTA ST CROIX VALLEY RECREATION CENTER FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2016 REVENUES Charges for services Investment income: Interest Fair value decrease in investments Miscellaneous Total revenues EXPENDITURES Current: Culture and recreation Recreation center ice arena Recreation center fieldhouse Lily Lake ice arena Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total other financing sources (uses) Net change in fund balance Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) $ 1,426,000 $ 1,623,032 $ 197,032 18,310 1,444, 310 990,621 331,459 191,171 1,513,251 (68,941) 259,700 (172,449) 87,251 30,004 (21,664) 18,310 30,004 (21,664) 1,649,682 205,372 873,657 145,572 182,680 116,964 185,887 8,491 1,201,909 311,342 447,773 516,714 87,624 (172,449) (172,076) (84,825) (172,076) $ 18,310 362,948 $ 344,638 Fund balance -January 1 2,364,523 Fund balance -December 31 $ 2,727,471 The notes to the financial statements are an integral part of this statement. 36 CITY OF STILLWATER, MINNESOTA LIBRARY FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2016 Variance with Budgeted Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property Taxes $ 1,171,625 $ 1,171,625 $ Charges for services 76,700 72,364 (4,336) Investment income: Interest 1,500 560 (940) Fair value decrease in investments (1,296) (1,296) Donations 5,100 51,586 46,486 Miscellaneous 19,200 28,732 9,532 Total revenues 1,274,125 1,323,571 49,446 EXPENDITURES Current: Culture and recreation Operations 1,093,728 1,123,956 (30,228) Plant 284,797 237,964 46,833 Total expenditures 1,378,525 1,361,920 16,605 Excess (deficiency) of revenues over expenditures (104,400) (38,349) 66,051 OTHER FINANCING SOURCES Transfers in 104,400 81,754 (22,646) Net change in fund balance $ 43,405 $ 43,405 Fund balance -January 1 115,465 Fund balance -December 31 $ 158,870 The notes to the financial statements are an integral part of this statement. 37 CITY OF STILLWATER, MINNESOTA PARKS FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2016 Variance with Budgeted Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property Taxes $ 805,988 $ 805,988 $ Licenses and permits 1,000 1,350 350 Charges for services 23,000 21,770 (1,230) Investment income: Interest 10,000 1,359 (8,641) Fair value decrease in investments - (4,128) (4,128) Miscellaneous - 8,801 8,801 Total revenues 839,988 844,140 4,152 EXPENDITURES Current: Culture and recreation 2,380,688 Excess (deficiency) of revenues over expenditures (1,540,700) OTHER FINANCING SOURCES (USES) Transfers in 1,540,700 Net change in fund balance $ 917,228 1,463,460 (73,088) 1,467,612 93,376 (1,447,324) 20,288 $ 20,288 Fund balance -January 1 470,138 Fund balance -December 31 $ 490,426 The notes to the financial statements are an integral part of this statement. 38 THIS PAGE I5 INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2016 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Business -type Activities - Enterprise Funds Sanitary Storm Signs and Sewer Sewer Lighting Parking Totals CURRENT ASSETS: Cash and cash equivalents $ 343,582 794,610 $ 654 $ 611,749 $ 1,750,595 Accrued interest receivable 976 1,344 44 1,060 3,424 Accounts receivable 506,570 79,129 53,048 2,590 641,337 Due from other governments 4,595 442 - - 5,037 Prepaid items 145,335 2,860 955 1,042 150,192 Total current assets 1,001,058 878,385 54,701 616,441 2,550,585 CAPITAL ASSETS Land 402,620 402,620 Building and other improvements - 6,064,365 6,064,365 Improvements other than building 480,464 1,437,555 1,918,019 Machinery and equipment 457,737 258,188 21,574 307,353 1,044,852 Vehicles 580,665 12,780 31,851 625,296 Infrastructure 10,460,870 - 10,460,870 Construction in progress 226,572 60,388 286,960 Less accumulated depreciation (6,407,901) (67,229) (7,930) (1,124,705) (7,607,765) Net Capital Assets 5,798,407 203,739 13,644 7,179,427 13,195,217 Total assets 6,799,465 1,082,124 68,345 7,795,868 15,745,802 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - pensions 137,183 101,405 32,105 33,382 304,075 Total assets and deferred outflows of resources LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION 6,936,648 1,183,529 100,450 7,829,250 16,049,877 CURRENT LIABILITIES Accounts payable 127,567 12,865 21,934 9,887 172,253 Contracts payable 8,700 1,232 9,932 Salaries payable 11,201 16,438 5,179 7,018 39,836 Due to other governments 2,460 625 1,360 4,445 Due to component unit 1,287 - 1,287 Compensated absences payable 6,806 9,812 1,519 2,391 20,528 Total current liabilities 149,321 48,440 29,992 20,528 248,281 NONCURRENT LIABILITIES Compensated absences 45,848 46,962 17,243 23,177 133,230 Net OPEB obligation 142,347 104,206 37,416 32,623 316,592 Net pension liability 350,019 229,979 76,070 78,265 734,333 Total noncurent liabilities 538,214 381,147 130,729 134,065 1,184,155 Total liabilities 687,535 429,587 160,721 154,593 1,432,436 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions 35,391 23,363 7,715 7,940 74,409 NET POSITION Net investment in capital assets 5,798,407 203,739 13,644 7,179,427 13,195,217 Unrestricted 415,315 526,840 (81,630) 487,290 1,347,815 Total net position 6,213,722 730,579 (67,986) 7,666,717 14,543,032 Total liabilities, deferred inflows of resources, and net position $ 6,936,648 1,183,529 $ 100,450 $ 7,829,250 $ 16,049,877 The notes to the financial statements are an integral part of this statement. 40 CITY OF STILLWATER, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS Year Ended December 31, 2016 OPERATING REVENUES Charges for services OPERATING EXPENSES Personnel services Supplies Other services and charges Miscellaneous Depreciation Total operating expenses Income (loss) from operations NONOPERATING REVENUES Interest income Other income Total nonoperating revenues Income before transfers and capital contributions Transfers out Change in net position NET POSITION Net position, January 1 Net position, December 31 Business -type Activities - Enterprise Funds Sanitary Sewer Storm Signs and Sewer Lighting Parking Totals $ 2,155,272 $ 638,621 $ 387,308 $ 404,171 $ 3,585,372 379,797 287,591 90,318 18,838 10,269 19,829 2,138,734 157,209 253,242 11,778 45,746 1,095 299,841 25,477 1,634 2,848,988 526,292 366,118 (693,716) 112,329 21,190 18,387 330.747 349,134 (344,582) (344,582) 1,958 1,958 33 629 662 114,287 21,852 (7,190) 107,097 21,852 6,558,304 623,482 124,018 9,723 112,010 25,674 175,847 881,724 58,659 2,661,195 84,293 502,799 447,272 4,188,670 (43,101) (603,298) 1,799 1,799 (41,302) 22,177 331,376 353,553 (249,745) (7,190) (41,302) (256,935) (89,838) 7,708,019 14,799,967 $ 6,213,722 $ 730,579 $ (67,986) $ 7,666,717 $ 14,543,032 The notes to the financial statements are an integral part of this statement. 41 CITY OF STILLWATER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended December 31, 2016 Business -type Activities - Enterprise Funds Sanitary Storm Signs and Sewer Sewer Lighting Parking Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 2,199,971 $ 637,827 $ 389,626 $ 406,456 $ 3,633,880 Payments to suppliers (2,067,548) (204,903) (269,660) (155,202) (2,697,313) Payments to employees (336,371) (249,918) (79,611) (112,245) (778,145) Net cash from operating activities (203,948) 183,006 40,355 139,009 158,422 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payment on loan from other funds (33,130) (33,130) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (323,162) (7,198) (60,387) (390,747) Capital reimbursement to other funds - (7,190) - (7,190) Proceeds from taxes, assessments, connections 330,747 - 629 - 331,376 Net cash from capital and related financing activities 7,585 (7,190) (6,569) (60,387) (66,561) CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments 18,421 1,541 (2) 1,670 21,630 Net cash from investing activities 18,421 1,541 (2) 1,670 21,630 Net increase (decrease) in cash and cash equivalents (177,942) 177,357 654 80,292 80,361 Cash and cash equivalents, January 1 521,524 617,253 531,457 1,670,234 Cash and cash equivalents, December 31 $ 343,582 $ 794,610 $ 654 $ 611,749 $ 1,750,595 NON-CASH TRANSACTIONS AFFECTING FINANCIAL POSITION Contributions of capital assets received (contributed) $ (73,938) $ $ $ - $ (73,938) RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) $ (693,716) $ 112,329 $ 21,190 $ (43,101) $ (603,298) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 299,841 25,477 1,634 175,847 502,799 (Increase) Decrease in Assets and Defferred Outlfows: Accounts receivable 43,914 (588) 2,318 2,285 47,929 Due from other governments 785 (206) 579 Prepaid items (8,122) (542) 32 412 (8,220) Deferred outflows (104,373) (81,925) (25,397) (26,544) (238,239) Increase (Decrease) in Liabilities and Deferred Inflows: Accounts payable 114,170 6,594 3,114 (9,439) 114,439 Contracts payable 2,200 1,232 3,432 Salaries payable (1,677) 2,832 1,115 473 2,743 Due to other governments (2,460) 69 1,360 - (1,031) Due to component unit (1,786) - - - (1,786) Compensated absences payable 4,069 2,635 (425) 880 7,159 Net OPEB obligation 17,182 13,483 4,213 4,354 39,232 Net pension liability 115,927 90,995 28,208 29,482 264,612 Deferred inflows 12,298 9,653 2,993 3,128 28,072 Total adjustments 489,768 70,677 19,165 182,110 761,720 Net cash from operating activities $ (203,948) $ 183,006 $ 40,355 $ 139,009 $ 158,422 The notes to the financial statements are an integral part of this statement. 42 CITY OF STILLWATER, MINNESOTA STATEMENT OF NET POSITION FIDUCIARY FUNDS December 31, 2016 TIF Note Agency Fund ASSETS Cash and pooled investments - held in escrow $ LIABILITIES Accounts payable $ The notes to the financial statements are an integral part of this statement. 43 THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement December 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Stillwater operates under the "Home Rule Charter" form of government under the provisions of the State of Minnesota law. The Mayor is the president of the Council and together with the City Council comprises the governing body of the City, which is responsible for directing the activities of the City. The City provides the following services: police and fire protection, highways and streets, parks, storm sewer, sanitary sewer, planning, zoning, and general administration. The basic financial statements of the City of Stillwater have been prepared in conformity with U.S. generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies: A. FINANCIAL REPORTING ENTITY As required by U.S. generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Stillwater and its component unit. A component unit is a legally separate entity for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. COMPONENT UNIT In conformity with U.S. generally accepted accounting principles, the financial statements of the component unit have been included in the financial reporting entity as a discretely presented component unit. Board of Water Commission The component unit column of the accompanying financial statements includes the financial data of the Board of Water Commission ("Commission") . This financial information is presented in a separate column to emphasize the Commission is legally separate from the City. The Commission was created and prescribed by the City Charter. The Commission is a three member governing board appointed by the City Council. The purpose of the Commission is to manage, control, maintain and account for the water works system owned by the City. Financial activities and budgetary control responsibilities lie with the Commission. Debt issuance must be approved by the City Council and the legal liability for debt issuance remains with the City. Operations of the water works system are funded solely by user rate fees set by the Commission. The Commission is presented as a proprietary fund type (business -type activity). Complete audited financial statements for the Commission may be obtained by writing the Board of Water Commission, 204 North 3rd Street, Stillwater, Minnesota 55082. OTHER ORGANIZATION The Stillwater Fire Relief Association is organized as a non-profit organization, legally separate from the City, by the member to provide pension and other benefits to such members, in accordance with Minnesota statutes and the Association's by-laws. Its board of directors is appointed by the membership of the Association and not by the City Council. The Association 45 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 issues its own set of financial statements. All funding is conducted in accordance with applicable Minnesota statutes, whereby state aids flow to the Association. The Association pays benefits directly to its members. Because the Association is fiscally independent of the City, the financial statements of the Association have not been included as a component of the City's reporting entity. B. BASIC FINANCIAL STA-TEMENT-S 1. Government -Wide Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) display information about the primary government and its component unit. These statements include the financial activities of the overall City government, except for fiduciary activities. As a general rule, the effect of Interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City enterprise funds and various other function of government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges to external parties for support. In the government -wide statement of net position, both the governmental and business -type activities columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual, economic resource basis, which recognizes all long- term assets and receivables as well as long-term debt and obligations. The City's net position are reported in three parts: (a) net investment in capital assets; (b) restricted net position; and (v) unrestricted net position. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed to finance qualifying activities. The statement of activities demonstrates the degree to which the direct expenses of each function of the City's governmental activities and different business -type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include: (a) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a given function or activity; and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 2. Fund Financial Statements The fund financial statements provide information about the City's funds, including its fiduciary funds. Separate statements for each fund category --governmental, proprietary, and fiduciary --are presented. The emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each displayed as separate columns in the fund financial statements. All remaining governmental funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating 46 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 revenues, such as subsidies and investment earnings, result from nonexchange transactions or incidental activities. The City reports the following major governmental funds: General Fund The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. St. Croix Valley Recreation Center Special Revenue Fund This fund is used to account for the operation of the sports facility in Stillwater. Revenue sources for this fund are provided by the fees generated by the facility and are committed for operations. Library Special Revenue Fund This fund is used to account for the operations of the City's library. This fund is primarily funded with committed general property taxes. Parks Special Revenue Fund The parks fund is used to account for the operations of the City's parks. This fund is primarily funded with committed general property taxes. Debt Service Fund The debt service fund is used to account for the accumulation of resources that are restricted for the payment of, long-term debt principal, interest and related costs. Capital Projects Fund This fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. TIF Districts Fund This fund is used to account for restricted financial resources to be collected by and used in the City's tax increment financing districts. The City reports the following major proprietary funds: Sanitary Sewer Fund The sanitary sewer fund accounts for the provision of sanitary sewer service to the residents and commercial and industrial establishments of the City. Storm Sewer Fund The storm sewer fund accounts for the provision of storm sewer service to the residents and commercial and industrial establishments of the City. Signs and Lighting Fund The signs and lighting fund accounts for the operation and maintenance of the City's sign and lighting system. Parking Fund The parking fund accounts for the operation of parking facilities located in downtown Stillwater. 47 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Additionally the City reports the following fiduciary fund: Agency Fund To account for assets held as an agent for individuals, private organizations, other governmental units, and/or other funds. The City's agency fund accounts for pass-through funds associated with TIF related construction. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government -wide, and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Agency funds, which are included in the Fiduciary Funds, do not have a measurement focus. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. The City considers all revenues to be available if they are collected within 60 days after the end of the current period. Property and other taxes, licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources. The City reports unavailable revenue on its governmental fund balance sheets. Unavailable revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenue arises when resources are received prior to the incurrence of the qualifying expenditure. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet and revenue is recognized. Proprietary funds distinguish operating revenues and expenses from nonoperating item. Operating revenues and expenses generally result from providing services and producing and delivering goods in connections with a proprietary fund's principal ongoing operations. The principal operating revenue of the City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Component Unit The Commission reports its financial statements under the accrual basis of accounting as a proprietary fund type. D. BUDGETS Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual appropriated budgets are adopted for the general fund and other major governmental funds as follows: St. Croix Valley Recreation, Library, and Parks fund. The City also adopts a budget for the nonmajor governmental Special Events fund, Downtown Beautification fund and 48 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Washington County Recycling Grant fund which are presented in the combining and individual fund section of the Comprehensive Annual Financial Report. E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally approved by passage of a resolution. 4. The City Council may authorize transfer of budgeted amounts between funds and may approve additional expenditures for departments in excess of the amount budgeted. 5. Formal budgetary integration is employed as a management control device during the year for the general fund and other budgeted funds. Formal budgetary integration is not employed for the debt service and the capital projects funds because effective budgetary control is achieved through general obligation bond indenture provisions and project contracts. F. CASH, CASH EQUIVALENTS AND INVESTMENTS Cash balances from all funds are pooled and invested to the extent available in investments authorized by Minnesota statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund balances are eliminated for the statement of net position presentation. Investments are stated at their fair value as determined by quoted market prices, except for money market investments and participating interest-earning investment contracts that have a remaining maturity at time of purchase of one year or less which are recorded at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Money market investments are short-term, highly liquid debt instruments including commercial paper, banker's acceptances, and U.S. Treasury and agency obligations. Investments in external investment pools that meet the criteria of GASB Statement No. 79 are valued at amortized costs. If an external investment pool does not meet the criteria established by this Statement, that pool should apply the provisions in paragraph 16 of Statement No. 31. For purposes of the statement of cash flows of the proprietary funds, the cash equivalents are considered to be all highly liquid investments with a maturity of three months or less when purchased. All of the cash and investments allocated to the proprietary funds have original maturities of 90 days or less. Therefore, the entire balances in such funds are considered cash equivalents. 49 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 G. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Prepaid items are recorded under the consumption method. H. INVENTORIES The inventories of the discretely presented component unit are valued at cost (first -in, first -out method) and are recorded as an expense when consumed. I. PROPERTY TAX LEVY AND REVENUE RECOGNITION On or before July 1 each year, all departments of the City submit budget requests to the City Administrator so that a budget may be prepared and a tax levy adopted for the following fiscal year. The budget is prepared by fund, function and department and includes information on the past year, current year estimates, and requested appropriations for the next fiscal year. Revenue estimates are prepared by the Finance Department, including the estimated tax levy needed to support City expenditures. The proposed budget and tax levy is presented to the City Council for review by August 31. The City Council reviews and makes changes to the proposed budget and tax levy. By September 15, a "proposed tax levy" is certified to the State of Minnesota and Washington County. Minnesota statutes require the counties to send out preliminary tax notices to all property owners showing the prior year's tax levy and proposed tax levy, including dollars and percentage increase or decrease between years for all taxing jurisdiction. After November 25, and before December 25, Minnesota statutes require the City to hold a public meeting and present the budget and proposed tax levy to the citizens. The City Council must adopt the final budget and "final tax levy" after closing the public meeting. The final tax levy must be less than or equal to the proposed tax levy. The final tax levy must be certified to Washington County by December 31 or the previous year's tax levy will be used by default. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Within the governmental fund financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes and credits not received at the year-end are classified as delinquent and due from county taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by 50 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 deferred revenue because it is not available to finance current expenditures. Property tax levies in governmental activities is susceptible to full accrual on the government -wide statements. J. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Within the fund financial statements, the revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred revenues. Special assessment levies in governmental activities is susceptible to full accrual on the government -wide statements. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. K. INTERFUND RECEIVABLES/PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Any resulting short-term loan balances are classified as interfund receivables and payables. The non-current portion of interfund loans, if any, is reported as "advances to/from other funds." Advances between funds are offset by nonspendable fund balance account in applicable governmental funds to indicate they are not available for appropriation and are not expendable from available financial resources. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks, street lights, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Infrastructure assets have been capitalized retroactively to 1980. Capital assets exceeding the City's capitalization threshold of $1,000 are recorded at historical cost or estimated historical cost if purchased or constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net position. Capital 51 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 assets are depreciated using the straight-line method over their estimated useful lives. Because surplus assets are sold for an immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into consideration for depreciation. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 80 years for Infrastructure. Capital assets not being depreciated include land and construction in progress. Component Unit Utility plant, property, and equipment are recorded at cost, or in the case of contributions, at fair market value to the time received. Depreciation is calculated using the straight-line method over the assets' estimated useful lives, ranging from five to fifty years. M. COMPENSATED ABSENCES Sick leave and vacation benefits accrue to employees based upon their term of employment and in accordance with the individual labor agreements. Vested or accumulated vacation or sick leave is accrued as incurred in the government -wide and proprietary fund financial statements. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. The current portion is calculated based on historical trends. Component Unit The Commission records a long-term liability for employee compensated absences consisting of vested sick pay and current liability for vested vacation. Employees may carry over five vacations days and one hundred sick days. Employees are compensated for sick days in excess of one hundred days at year end and for all vested sick days and vacations days upon termination. N. LONG-TERM OBLIGATIONS In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bond issue costs, are considered a current year cost of issuing debt and fully expensed in the year incurred. In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs are recognized during the current period. The face amount of the debt issue is reported as on other financing source. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures. O. FUND BALANCE In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable — portions of fund balance related to prepaids, inventories, long-term receivables, and corpus on any permanent fund. 52 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Restricted — funds are constrained by external parties (statute, grantors, bond agreements, etc.). Committed — fund constraints are established and modified by a resolution approved by the City Council. Assigned — consists of internally imposed constraints. These constraints are established by the City Council and/cr management. The City Council by adoption of a formal fund balance policy delegates the authority to assign fund balance to the City Administrator and Finance Director. Unassigned — is the residual classification for the General Fund and also reflects negative residual amounts in other funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is the City's policy to use restricted first, then unrestricted fund balance. When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it is the City's policy to use committed first, then assigned, and finally unassigned amounts. The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund balance range of 35% - 50% of the total operating expenditures. P. INTERFUND TRANSACTIONS Interfund service transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. All interfund transactions are eliminated except for activity between governmental activities and business -type activities for presentation in the entity -wide statements of net position and statements of activities. Q. DEFERRED OUTFLOWS OF RESOURCES The City would report decrease in net position or fund balance, that relate to future periods as deferred outflows of resources in a separate section of its government -wide and proprietary funds statement of net position or governmental fund balance sheet. The City has two types of deferred outflows of resources for the government wide financial statements: (1) deferred charges on refunding of bonds; and, (2) pension related items. The deferred charges will be amortized over the remaining life of the applicable bonds. In addition, the City reports deferred outflows of resources related to pensions, see Note 6 for additional details. R. DEFERRED INFLOWS OF RESOURCES The City's governmental activities and governmental fund financial statements report a separate section for deferred inflows of resources. This separate financial statement element reflects an increase in net position of fund balance that applies to a future period. The City will not recognize the related revenue until a future event occurs. The City has one type of item which occurs relating to revenue recognition: The deferred inflow of resources occurs because governmental fund revenues are not recognized until available (collected not later than 60 days after the end of the City's year) under the modified accrual basis of accounting. In addition, 53 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 the City reports deferred inflows of resources related to pensions, see Note 6 for additional details. S. PENSIONS For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the City's requirement to contribute to the Stillwater Fire Department Relief Association Plan, information about the Plan's fiduciary net position and additions to/deductions from the Stillwater Fire Department Relief Association Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. NOTE 2 DEPOSITS AND INVESTMENTS Deposits The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net position and the balance sheet as "Cash and pooled investments". In accordance with Minnesota Statutes, the City maintains deposits at financial institutions which are authorized by the City Council. Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City and its component unit does not have a deposit policy for custodial risk instead follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledges must equal 110% of the deposits not covered by insurance or corporate surety bonds. Authorized collateral include: U.S. government treasury bills, notes, or bonds; issues of U.S. government agency; general obligations of state or local government rated "A" or better; revenue obligations of a state or local government rated "AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits insured by a federal agency. Minnesota Statutes require securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a commercial bank or other financial institution not owned by the depository. The City's deposits at December 31, 2016 in the amount of $599,670 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. Component Unit The Commission had deposits at December 31, 2016 in the amount of $2,414,601. As of December 31, 2016, the Commission's pledged collateral were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. 54 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Investments Minnesota statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less. c) General obligations rated "A" or better; revenue obligations rated "AA" or better. d) General obligations of the Minnesota Housing Finance Agency rated "A" or better. e) Bankers' acceptance of United States banks eligible for purchase by the Federal Reserve System. f) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 9) Guaranteed investment contracts guaranteed by the United States commercial banks or domestic branches of foreign banks or United States insurance companies if similar debt obligations of the issuer or the collateral pledged by the issuer is the top two rating categories. h) Repurchase or reverse repurchase agreements and securities lending agreements financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. i) Any security which is an obligation of a school district with an original maturity not exceeding 13 months and rated in the highest category by a national bond rating services or enrolled in the credit enhancement program pursuant to section 126C.55. At December 31, 2016, the City's investment balances were as follows: Cash Investments Held by Trustee: Fair Type Value United States Treasury Securities $ 3,839,376 The investments held by the trustee are in a mutual funds (which are rated AAA) that invests in US Treasury Securities. These investments are held by escrow agents in accordance with escrow agreements established with the sale of the $2,450,000 General Obligation Tax Increment Revenues Bonds, Series 2016B and $6,585,000 Tax Increment Refunding Bonds, Series 2016C. 55 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 The escrow account balances as of December 31, 2016 are as follows: Escrow account balance: $2,450,000 General Obligation Tax Increment Refunding Bonds Series 2016B $6,585,000 Tax Increment Refunding Bonds, Series 2016C Total $3,543,948 295,428 $3,839,376 The escrow account for the Series 2016B Bonds will be used to pay interest payments on the current bond issue and refund the "Refunded Bonds" (General Obligation Tax Increment Bonds, Series 2008B) on February 1, 2019. These funds are recorded in the City's financial statements as a part of the debt service fund. The escrow account for the Series 2016C Bonds will be used to pay interest payments on the current bond issue and refund the (i) the February 1, 2017 through 2026 maturities of the City's Tax Increment Revenue Bonds (The Lofts of Stillwater Project), Series 2006 dated July 20, 2006; (ii) the Taxable Increment Revenue Note, Series 2003 (Terra Springs Project) and (iii) the Taxable Tax Increment Note, Series 2004 (Terra Springs Project) These funds are also recorded in the City's financial statements as a part of the debt service fund. Investments Held with Broker: Interest Rate Risk Interest rate risk is the risk that changes in interest rates that will adversely affect the fair value of an investment. As a means of limiting the City's exposure to interest rate risk, the City's investment policy limits 25% of the City's total investment portfolio to maturities not to extend beyond 5 years and under no circumstance should any investment maturity extend beyond 10 years without prior City Council approval. As of December 31, 2016, the City had the following investments and maturities: Type Repurchase agreement Money market funds US Treasuries - with Trustee Mutual Funds - with Trustee Negotiable CDs US Agencies: Fair Less Than Value 1 Year 1to5 5to10 Years Years $ 1,971,897 $ 1,971,897 $ $ 9,263,950 9,263,950 3,543,948 38,678 3,505,270 295,428 295,428 - 5,133,199 2,500,092 2,633,107 Federal Farm Credit Banks 1,987,305 Federal Home Loan 4,567,734 Federal National Mortgage Association 1,965,678 Federal Home Loan Mortgage Corporation 12,652,879 Total $ 41,382,018 Credit Risk $ 14,070,045 1,486,365 2,962,795 1,965,678 11,166,907 $ 23,720,122 500,940 1,604,939 1,485,972 $ 3,591,851 Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This risk is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investment policy does not further address credit risk beyond what is prescribed in Minnesota Statute §118A. As of December 31, 2016, the investments, as rated by Standard & Poor's, had the following ratings: Type Repurchase agreement Money market funds Negotiable CDs 56 Credit Quality Rating Not Rated AAA Not Rated Amount $ 1,971,897 9,263,950 5,133,199 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Credit Risk (continued) Type Credit Quality Rating Amount US Agencies: Federal Farm Credit Banks AA+ 1,987,305 Federal Home Loan AA+ 4,567,734 Federal National Mortgage Association AA+ 1,965,678 Federal Home Loan Mortgage Corporation M+ 12,652,879 Total $ 37,542,642 Concentration of Risk The City places no limit on the amount that the City may invest in any one issuer, but limits individual investment instrument amounts to $500,000 or less. As of December 31, 2016, the investments which individually comprise more than 5 percent of the City's total investments were US Agencies of which comprised of the following types: Type US Agencies: Federal Farm Credit Banks Federal Home Loan Federal National Mortgage Association Federal Home Loan Mortgage Corporation Custodial Risk Amount Percentage $ 1,987,305 5.29% 4,567,734 12.17% 1,965,678 5.24% 12,652,879 33.70% For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The City does not have a policy specific for investment custodial credit risk. Fair Value Measurements The City uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The City follows an accounting standard that defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires expanded disclosures about fair value measurements. In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation techniques as follows: Level 1 — Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active markets accessible at the measurement date of identical financial assets and liabilities. 57 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Level 2 — Financial assets and liabilities are valued based on quoted prices for similar assets, or inputs that are observable, either directly or indirectly for substantially the full term through corroboration with observable market data. Level3— Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity's own assumptions about the assumptions market participants and would use in pricing the asset. Assets measured a fair value on a recurring basis: Level 1 Level 2 Level 3 Total U.S. Agencies Federal Farm Credit Banks $ $ 1,987,305 $ - $ 1,987,305 Federal Home Loan 4,567,734 4,567,734 Federal National Mortgage Association - 1,965,678 1,965,678 Federal Home Loan Mortgage Corporation 5.917,755 6,735,124 12,652,879 Money Market 24,115 24.115 Municipal Bonds - - Repurchase Agreement 1,981,897 1,971,897 Commercial Paper - Negotiable Certificates of Deposit 4,133,199 4,133,199 US Treasuries - with Trustee 3,543,948 3,543,948 Mutual Funds - with Trustee 295,428 - 295,428 $ 11,763,143 $ 19,389,040 $ - $ 31,142,183 Investments measured at amortized cost 1,000,000 Investments measured at Net Asset Value (NAV) 9,239,835 Total $ 41,382,018 The Heritage Money Market Fund Portfolios are external investment pools that are managed to maintain a dollar -weighted average portfolio maturity of not greater than 60 days and seeks to maintain a constant net asset value (NAV) per share of $1.00. The City reports its investment in these pools at the NAV per share, the fair value established by the pools. The City's investments in these pools are included in the share classes, as follows: Net Asset Unfunded Value Commitments Heritage Money Market Fund $ 9,239,835 $ The Heritage Money Market Fund may be redeemed daily. Redemption requests are fulfilled the same business day when the request is submitted before 3 p.m. The Fund may impose a maximum of a two percent liquidity fee if the Fund's weekly liquid assets fall below 30 percent. Components of Cash and Investments Total lnvestments $ 41,382,018 Deposits 443,032 Total $ 41,825,050 Govenmental Activities Business -Type Activities Total $ 40,074,455 1,750,595 $ 41,825,050 58 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 NOTE 3 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2016 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated Land $ 9,116,338 $ $ - $ 9,116,338 Construction in Process 9,134,195 2,682,836 8,684,437 3,132,594 Total capital assets, riot being depreciated 18,250,533 2,682,836 8,684,437 12,248,932 Capital Assets, Being Depreciated: Buildings and Other Improvements 38,950,772 7,071,559 2,670 46,019,661 Improvements Other Than Buildings 5,784,212 71,363 5,855,575 Machinery and Equipment 8,161,767 1,162,097 65,277 9,258,587 Vehicles 4,769,195 76,816 95,839 4,750,172 Infrastructure 58,026,530 1,084,966 131,083 58,980,413 Total Capital Assets, Being Depreciated 115,692,476 9,466,801 294,869 124,864,408 Accumulated Depreciation for: Buildings and Other Improvements 15,302,462 962,691 2,670 16,262,483 Improvements Other Than Buildings 2,382,204 316,093 2,698,297 Machinery and Equipment 5,354,966 502,544 65,277 5,792,233 Vehicles 3,105,410 270,490 95,839 3,280,061 Infrastructure 18,997,310 1,881,951 131,083 20,748,178 Total Accumulated Depreciation 45,142,352 3,933,769 294,869 48,781,252 Total Capital Assets, Being Depreciated, Net 70,550,124 5,533,032 76,083,156 Governmental Activities Capital Assets, Net $ 88,800,657 $ 8,215,868 $ 8,684,437 $ 88,332,088 Business -Type Activities: Capital Assets, Not Being Depreciated Land $ 402,620 $ $ $ 402,620 Construction in Process 12,991 273,969 286,960 Total capital assets, not being depreciated 415,611 273,969 689,580 Capital Assets, Being Depreciated: Buildings and Other Improvements 6,064,365 - 6,064,365 Improvements Other Than Buildings 1,918,019 1,918,019 Machinery and Equipment 1,000,954 43,898 1,044,852 Vehicles 552,416 72,880 625,296 Infrastructure 10,460,870 10,460,870 Total Capital Assets, Being Depreciated 19,996,624 116,778 20,113,402 Accumulated Depreciation for: Buildings and Other Improvements 383,887 76,104 - 459,991 Improvements Other Than Buildings 445,003 89,642 - 534,645 Machinery and Equipment 488,500 72,293 560,793 Vehicles 455,628 36,051 491,679 Infrastructure 5,331,948 228,709 5,560,657 Total Accumulated Depreciation 7,104,966 502,799 7,607,765 Total Capital Assets, Being Depreciated, Net 12,891,658 (386,021) - 12,505,637 Business -Type Capital Assets, Net $ 13,307,269 $ (112,052) $ $ 13,195,217 59 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Beginning Ending Balance Increases Decreases Balance Component Unit: Capital Assets, Not Being Depreciated Land Use Rights $ 94,987 $ - $ Total capital assets, not being depreciated 94,987 - $ 94,987 94,987 Capital Assets, Being Depreciated: Equipment 622,460 36,848 27,739 631,569 Distribution System 18,457,020 536,632 161,806 18,831,846 Total Capital Assets, Being Depreciated 19,079,480 573,480 189,545 19,463,415 Accumulated Depreciation for: Equipment 482,468 22,695 27,739 477,424 Distribution System 6,982,298 432,566 117,540 7,297,324 Total Accumulated Depreciation 7,464,766 455,261 145,279 7,774,748 Total Capital Assets, Being Depreciated, Net 11,614,714 118,219 44,266 11,688,667 Component Unit Capital Assets, Net $ 11,709,701 $ 118,219 $ 44,266 $ 11,783,654 Depreciation expense was charged to governmental functions as follows: General government $ 224,560 Public safety 316,000 Public works 2,144,377 Culture and Recreation 1,248,832 Total Depreciation Expense, Governmental Activities $ 3,933,769 Depreciation expense was charged to business -type functions as follows: Sanitary sewer $ 299,841 Storm sewer 25,477 Signs and lighting 1,634 Parking 175,847 Total Depreciation Expense, Business -Type Activities $ 502,799 NOTE 4 LEASES OPERATING LEASE The City leases vehicles for the police and the fire department. The total cost for these leases were $47,151 for the year ended December 31, 2016. Future minimum lease payments at December 31, 2016 were as follows: Year Ending Govermental December 31, Activities 2017 47,151 2018 40,059 2019 20,161 2020 3,836 Total $ 111,207 60 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 NOTE 5 LONG-TERM DEBT GENERAL OBLIGATION BONDS The City issues general obligation bonds for general government, improvement, revenue and tax increment activities. General obligation bonds are direct obligations of the City and pledge the full faith, credit, and taxing power of the City. The general government bonds outstanding are to be repaid from primarily with general tax. The revenue bonds are expected to be paid from revenues generated from the project. The tax increment bonds outstanding are to be paid from the pledged tax increment revenues. Total interest incurred and charged to expense during the year ended December 31, 2016 in the government -wide financial statements of the primary government was $1,295,302. Component Unit The Commission interest incurred and charged to expense was $33,456 during 2016. General obligation bonds currently outstanding are as follows: Issue Date PRIMARY GOVERNMENT: Governmental Activities: G.O. Capital Outlay Bonds: Maturity Date $1,455,000 Bonds of 2009A 02/15/09 02/01/17 $1,005,000 Refunding Bonds of 2009B 02/15/09 02/01/19 $4,095,000 Refunding Bonds of 2009D 02/15/09 02/01/22 $6,355,000 Capital Outlay and Refunding Bonds of 2012A 04/01/12 02/01/26 $9,215,000 Bonds of 2014A 04/08/14 02/01/40 $6,400,0000 Bonds of 2016A 04/14/16 02/01/24 Total G.O. Capital Outlay Bonds G.O. Revenue Bonds: $2,695,000 Refunding Bonds of2005C 04/01/03 06/01/18 3.39% $1,420,000 Refunding Bonds of 2009C 02/15/09 06/01/20 2.75% Total G.O. Revenue Bonds G.O. Tax Increment Bonds: $5,300,000 Bonds of2008B 07/01/08 02/01/30 4.23% $2,450,000 Refunding Bonds of 2016B 04/14/16 02/01/30 1.79% Total G.O. Tax Increment Bonds Interest Rate 2.29% 2.51% 2.30% 1.85% 3.24% 1.27% Original Issue $ 1,455,000 1,005,000 4,095,000 6,355,000 9,215,000 6,505,000 Payable 12/31/16 $ 205,000 280,000 1,675,000 4,195,000 8,795,000 6,505,000 28,630,000 21,655,000 2,695,000 1,420,000 4,115,000 5,300,000 2,450,000 7,750,000 450,000 615,000 1,065,000 4,135, 000 2,450,000 6,585,000 Tax Increment Revenue Bonds: $6,585,000 Bonds of 2016C 07/28/16 02/01/30 3.21% 6,585,000 6,585,000 Total Tax Increment Revenue Bonds 6,585,000 6,585,000 Total bonds (Primary Government) $ 47,080,000 $ 35,890,000 COMPONENT UNIT: 2013A G.O. Revenue Bonds 07/01/13 Total component unit general obligation bond Total reporting entity general obligation bonds 61 02/01/29 2.00%-3.50% $ 1,425,000 $ 1,265,000 1,425,000 1,265,000 $ 48,505,000 $ 37,155,000 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Annual debt service requirements to maturity for general obligation debt are as follows: Years ending December 31, 2017 2018 2019 2020 2021 2022 - 2026 2027 - 2031 2032 - 2036 2037 - 2040 Total Years ending December 31, 2017 2018 2019 2020 2021 2022 - 2026 2027 - 2031 2032 - 2036 2037 - 2040 PRIMARY GOVERNMENT Governmental Activities G.O. Capital Outlay Bonds Principal Interest $ 4,515,000 $ 560,796 1,660,000 489,669 1,655,000 449,537 1,600,000 410,139 1,460,000 372,714 5,185,000 1,305,238 2,140,000 797,450 1,765,000 473,281 1,675,000 128,482 $ 21,655,000 $ 4,987,305 G.O. Revenue Bonds Principal Interest G.O. Tax Increment Bonds Principal Interest $ 370;000 $ 380,000 155,000 160,000 $ 1,065,000 PRIMARY GOVERNMENT Governmental Activities Tax Increment Revenue Bonds Principal Interest $ 410,000 385,000 395,000 400,000 410,000 2,235,000 2,350,000 167,775 163,275 163,313 162,800 $ 210,000 225,000 240,000 445,000 470,000 2,575,000 2,420,000 $ 657,163 $ 6,585,000 COMPONENT UNIT $ 100,062 190,693 183,955 176,450 168,450 650,700 251,300 G.O. Revenue Bonds Principal Interest $ 85,000 $ 85,000 85,000 90,000 90,000 495,000 335,000 35,325 33,625 31,925 30,175 27,925 96,500 17,763 Total $ 6,585,000 $ 1,721,610 $ 1,265,000 $ 273,238 Crossover Refunding 218,147 221,814 212,739 202,839 186,571 663,756 176,015 $ 1,881,881 $2,450,000 General Obligation Tax Increment Refunding Bonds, Series 2016B: The proceeds from this bond issue constitutes a "crossover' refunding and were placed in escrow along with available City funds to make interest payments on the 2016B Bonds through the call date of February 1, 2020 on the Series 2008B Bonds. As a result, both the Series 2016B Bonds and Series 2008B Bonds liability are included in the government activities column of the Statement of Net Position. The purpose of this refunding was to achieve a net present value interest cost savings of $303,370 along with a cash flow savings of $1,508,730. CHANGE IN LONG-TERM LIABILITIES The following is a schedule of changes in the City's long-term liabilities for the year ended December 31, 2016: PRIMARY GOVERNMENT: Governmental activities Bonds payable: G.O. Capital Outlay Bonds G.O. Revenue Bonds G.O. Tax Increment Bonds Tax Increment Revenue Bonds Unamortized premium Total bonds payable Payable 12/31/2015 $ 18,630,000 1,420,000 4,325,000 445,032 Payable Due Within Additions Retirements 12/31/2016 One Year 24,820,032 62 $ 6,505,000 $ 3,480,000 $ 21,655,000 $ 4,515,000 355,000 1,065,000 370,000 2,450,000 190,000 6,585,000 210,000 6,585,000 6,585,000 410,000 822,531 81,939 1,185, 624 - 16,362,531 4,106,939 37,075,624 5,505,000 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Payable Payable Due Within 12/31/2015 Additions Retirements 12/31/2016 One Year PRIMARY GOVERNMENT (Continued): Governmental activities (continued) Net OPEB obligation 2,750,301 428,933 3,179,234 Compensated absences 1,279,534 727,578 637,672 1,369,440 269,482 Governmental activities Long-term liabilities 28,892,236 17,519,042 4,744,611 41,667,033 4,564,482 Business -type activities Net OPEB obligation 277,360 39,232 316,592 Compensated absences 146,599 90,662 83,503 153,758 20,528 Total long-term liabilities - primary government: $ 29,316,195 $ 17,648,936 $ 4,828,114 $ 42,137,383 $ 4,585,010 COMPONENET UNIT: Bonds payable Compensated absences Unamortized premium Total long-term liabilities - component unit $ 1,345,000 $ - $ 80,000 $ 1,265,000 $ 85,000 128,325 48,780 71,749 105,356 47,522 40,759 3,135 37,624 1,514,084 48,780 154,884 1,407,980 132,522 Total long-term liabilities $ 30,830,279 $ 17,697,716 $ 4,982,998 $ 43,545,363 $ 4,717,532 For the governmental activities, compensated absences and the net OPEB obligation are generally liquidated by the General Fund. NOTE 6 PENSION PLANS A. DEFINED BENEFIT PENSION PLANS — STATE-WIDE Plan Description The City of Stillwater participates in the following cost-sharing multiple -employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined -benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined -benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code. 1. General Employees Retirement Plan General Employees Retirement Plan (General Employees Plan (accounted for in the General Employees Fund)AII full-time and certain part-time employees of the City of Stillwater are covered by the General Employees Plan. General Employees Plan members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new members in 1967. All new members must participate in the Coordinated Plan. Component Unit All full-time and certain part-time employees of the Commission are covered by the General Employees Retirement Plan. 2. Public Employees Police and Fire Fund The Police and Fire Fund, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire Fund also covers police officers and 63 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only modified by the state legislation. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Members in plans that are at least 90 percent funded for two consecutive years are given 2.5 percent increases. Members in plans that have not exceeded 90 percent funded, or have fallen below 80 percent, are given 1% increases. The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 1. General Employees Plan Benefits Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first ten years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Disability benefits are available for vested members and are based upon years of service and average high -five salary. 2. Police and Fire Plan Benefits Benefits for the Police and Fire members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. Contributions Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. Governmental activities and business -type activities recognized pension expense of $2,249,603 and $54,445, respectively for the year ended December 31, 2016. Total pension expense for the City's plans were $2,304,048 for the General Employees Fund and Police and Fire plans. 1. General Employees Fund Contributions 64 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%, respectively, of their annual covered salary in calendar year 2016. The City of Stillwater was required to contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in calendar year 2016. The City of Stillwater contributions to the General Employees Fund for the year ended December 31, 2016, were $287,143. The City of Stillwater contributions were equal to the required contributions as set by state statute. Component Unit The Commission's contributions to the General Employees Fund for the year ended December 31, 2016, were $31,662. The Component Unit contributions were equal to the required contributions as set by state statute. 2. Police and Fire Contributions Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2016. The City of Stillwater was required to contribute 16.20% of pay for Police and Fire Fund members in calendar year 2016. The City of Stillwater contributions to the Police and Fire Fund for the year ended December 31, 2016, were $433,918. The City of Stillwater contributions were equal to the required contributions as set by state statute. Pension Costs 1. General Employees Fund Pension Costs At December 31, 2016, the City of Stillwater reported a liability of $4,887,941 for its proportionate share of the General Employees Fund's net pension liability. The City of Stillwater's net pension liability reflected a reduction due to the State of Minnesota's contribution of $6 million to the fund in 2016. The State of Minnesota is considered a non - employer contributing entity and the state's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City of Stillwater totaled $63,853. The net pension liability was measured as of June 30, 2016 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City of Stillwater's proportion of the net pension liability was based on the City of Stillwater's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2015 through June 30, 2016 relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2016 the City of Stillwater's proportion share was .06020% which was an increase of .00100% from its proportion measured as of June 30, 2015. For the year ended December 31, 2016, the City of Stillwater recognized pension expense of $661,949 for its proportionate share of the General Employees Plan's pension expense. In addition, the City of Stillwater recognized an additional $19,039 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $6 million to the General Employees Fund. Component Unit At December 31, 2016, the Commission reported a liability of $552,126 for its proportionate share of the General Employees Fund's net pension liability. The Commission's net pension liability reflected a reduction due to the State of Minnesota's contribution of $6 million to the fund in 2016. The State of Minnesota is considered a non -employer contributing entity and the state's contribution meets the definition of a special funding 65 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 situation. The State of Minnesota's proportionate share of the net pension liability associated with the Commission's totaled $7,233. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Commission's proportion of the net pension liability was based on the Commission's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2015, through June 30, 2016, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2016, the Commission's proportion was .0068%, which was a decrease of .0002% from its proportion as measured at June 30, 2015. For the year ended December 31, 2016, the Commission recognized pension expense of $68,247 for its proportionate share of the General Employees Fund's pension expense. In addition, the Commission recognized and additional $2,154 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $6 million to the General Fund Employees. At December 31, 2016, the reported proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description PRIMARY GOVERNMENT COMPONENT UNIT Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Differences Between Expected and Actual Economic Experience $ - $ 397,073 $ - $ 44,852 Changes in Actuarial Assumptions 957,064 108,107 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 927,752 104,796 Changes in Proportion and Differences Between City Contributions and Proportionate 37,149 98,647 23,871 City Contributions Subsequent to the Measurement Date 146,564 - 14,575 Total $ 2,068,529 $ 495,720 $ 227,478 $ 68,723 $146,564 reported as deferred outflows of resources related to pensions resulting from City of Stillwater contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Component Unit $14,575 reported as deferred outflows of resources related to pensions resulting from Commission contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 66 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Year Ended June 30, 2017 2018 2019 2020 2021 Thereafter PRIMARY GOVERNMENT Pension Expenses Amount $ 382,643 382,643 484,398 176,561 COMPONENT UNIT Pension Expenses Amount $ 36,698 36,698 50,841 19,943 Police and Fire Pension Costs At December 31, 2016, the City reported a liability of $11,076,360 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2015, through June 30, 2016, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2016, the City's proportion was .27600% which was an increase of .00700% from its proportion measured at June 30, 2015. For the year ended December 31, 2016, the City recognized pension expense of $1,929,601 for its proportionate share of the Police and Fire Fund's pension expense. The City also recognized $24,840 for the year ended December 31, 2016, as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's on -behalf contributions to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year, starting in fiscal year 2014. At December 31, 2016, the City reported its proportionate share of the Police and Fire Fund's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience $ $ 1,270,669 Changes in Actuarial Assumptions 6,095,805 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 1,690,329 Changes in Proportion and Differences Between City Contributions and Proportionate Share of Contributions 65,481 City Contributions Subsequent to the Measurement Date 223,356 Total 9,627 8,074971 $ 1,280,296 $223,356 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as 67 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: PRIMARY GOVERNMENT Year Ended Expenses June 30, Amount 2017 $ 1,412,713 2018 1,412,713 2019 1,412,713 2020 1,276,114 2021 1,057,066 Thereafter Actuarial Assumptions The total pension liability in the June 30, 2016, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.75% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors and disabilitants were based on RP 2014 tables for the General Employees Plan and RP -2000 tables for the Police and Fire Plan for males or females, as appropriate, with slight adjustments. Cost of living benefit increases for retirees are assumed to be: one percent per year for all future years for the General Employees Plan and Police and Fire Plan. Actuarial assumptions used in the June 30, 2016 valuation were based on the results of actuarial experience studies. The most recent four-year experience study for General Employees Plan was completed in 2015. The experience for the Police and Fire Plan was for the period July 1, 2004 through June 30, 2009. All assumptions are reviewed annually. The following changes in actuarial assumptions occurred in 2016 General Employees Fund • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. • Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Police and Fire Fund • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. 68 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long -Term Expected Asset Class Allocation Real Rate of Return Domestic Equity 45% 5.50% International Equity 15% 6.00% Bonds 18% 1.45% Alternative Assets 20% 6.40% Cash_ 2% 0.50% Totals 100% Discount Rate The discount rate used to measure the total pension liability was 7.5%, a reduction from the 7.9% used in 2015. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. In the Police and Fire Plan the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2056 and June 30, 2058 respectively. Beginning in fiscal years ended June 30, 2057 when projected benefit payments exceed the funds' projected fiduciary net position, benefit payments were discounted at the municipal bond rate of 2.85% based on an index of 20 -year general obligation bonds with an average AA credit rating at the measurement date, An equivalent single discount rate of 5.60 was determined that produced approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected benefits using 7.50% applied to all years of projected benefits through the point of asset depletion and 2.85% after. Pension Liability Sensitivity The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 69 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 B. C. GERF PEPFF PRIMARY GOVERNMENT: 1% Decrease Current Discount Rate 1% Increase COMPONENT UNIT;, 1% Decrease Current Discount Rate 1% Increase Pension Plan Fiduciary 6.50% 7.50% 8.50% 6.50% 7.50% 8.50% $ 6,942,325 4,887,941 3,195,688 784,183 552,126 360,975 Net Position 4.60% 5.60% 6.60% $15,505,434 11,076,360 7,457,470 Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www. mnpera.orq. DEFINED CONTRIBUTION PLAN Five council members of the City of Stillwater are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple -employer deferred compensation plan administered by the Public Employees Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5 percent of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2 percent of employer contributions and twenty-five hundredths of one percent of the assets in each member's account annually. Total contributions made by the City of Stillwater during fiscal year 2016 were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer $ 1,170 $ 1,170 5.0% 5.0% STILLWATER FIRE RELIEF ASSOCIATION Plan Description Required Rate 5.0% Firefighters of the City of Stillwater are members of the Stillwater Fire Department Relief Association. The Association is the administrator of the single -employer defined benefit pension plan available to firefighters. The plan is administered pursuant to Minnesota Statutes Chapter 69, Chapter 424A, and the Association's by-laws. As of December 31, 2015, 70 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 membership includes 33 active participants and 5 terminated employees entitled to benefit but not yet receiving them. The plan issues a stand-alone financial statement. Benefits Provided Authority for payment of pension benefits is established in Minnesota Statutes §69.77 and may be amended only by the Minnesota State Legislature. Each member who is at least 50 years of age, has retired from the Fire Department, has served at least 20 years of active service with such department before retirement shall be entitled to a lump sum service pension in the amount of $5,500 for each year of active Fire Department service but not exceeding the maximum amount per year of service allowed by law for the minimum average amount of available financing per firefighter as prescribed by law. Pursuant to Minnesota Statutes §424A.02, Subds. 2 and 4, members who retire with 10 years of service and have reached the age of 50 years are eligible for a retirement benefit. Members who retire before full retirement age and years of service requirements are eligible for a reduced benefit, based on the vesting schedule as set forth in Minnesota Statutes §424A.02, Subd. 2(c). During the time a member is on early vested pension, they will not be eligible for disability benefits. Disability and death benefits provisions of the Association's plan are that the member or member's beneficiaries shall be paid an amount equivalent to the accrued retirement liability at the time of disability or death. Minnesota Statutes Section 424A.10 provides for the payment of a supplemental benefit equal to 10% of a regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of state income tax exclusion for lump sum distributions and will no longer be available if state tax law is modified to exclude lump sum distributions from state income tax. The Association qualifies for these benefits. Contributions Minnesota Statues Chapter 69.772 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from state aid are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a 10 -year period. The significant actuarial assumptions used to compute the municipal support are the same as those used to compute the accrued pension liability. The association is comprised of volunteers; therefore, there are no payroll expenditures (i.e. there are no covered payroll percentage calculations). The minimum contribution from the City of Stillwater and state aid is determined as follows: Normal Cost + Amortization Payment on Unfunded Accrued Liability Prior to Any Change + Amortization Contribution on Unfunded Accrued Liability Attributed to Any Change + Administrative Expenses Anticipated State Aid Projected Investment Earnings = Total Contribution Required The Plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to the City $162,730 in fire state aid paid by the City to the Relief Association for the year ended December 31, 2016. Required employer contributions are calculated annually based on statutory provisions. The City's statutorily -required contribution to the plan for the year ended December 31, 2016 was $0. 71 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Pension Costs At December 31, 2016, the City reported an asset of $1,140,395 for the Association's net pension asset. The net pension asset was measured as of December 31, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. As a result of its requirement to contribute to the Relief Association, the City recognized a reduction in public safety expense of $99,185 for the year ended December 31, 2016. At December 31, 2016, the City reported deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments City Contributions Subsequent to the Measurement Date Total Deferred Deferred Inflows 176,284 176,284 $ The City was not statutorily -required to make contributions to the Association subsequent to the measurement date, so no related deferred outflows of resources were reported. Other amounts reported as deferred outflows and inflows of resources related to the Association's pension will be recognized in pension expense as follows: Year Ended Pension Expense December 31, Amount 2017 $ 43,869 2018 43,869 2019 43,871 2020 44,675 2021 Thereafter Actuarial Assumptions The actuarial total pension liability was determined as of December 31, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: Valuation Date Actuarial Cost Method Amortization Method Actuarial Assumptions: Discount Rate Investment Rate of Return 20 -Year Municipal Bond Yield Age of Service Retirement r 12/31/14 Entry Age Normal Level Dollar Closed 5.75% 5.75% 3.50% 50 The Tong -term expected rate of return on pension plan investments was determined using a building-block method in which best -estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of return by weighting the expected future real rates of return by weighting the 72 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by adding expected inflation. The best -estimate of expected future real rates of return were developed by aggregating data from several published capital market assumption surveys and deriving a single best -estimate based on the average survey values. These capital market assumptions reflect both historical market experience as well as diverse views regarding anticipated future returns. The expected inflation assumption was developed based on an analysis of historical experience blended with forward-looking expectations available in market data. Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan's asset allocation as of December 31, 2016 are summarized as follows: Allocation at December 31, Asset Class 2015 Equities 52.78% Fixed Income 39.57% Cash Equivalents 7.65% Total Portfolio 100.00% Discount Rate Long -Term Expected Real Rate of Return 55.00% 41.00% 4.00% 3.50% Long -Term Expected Nominal Rate of Return 7.50% 4.00% 2.00% 5.75% The discount rate used to measure the total pension liability was 5.75%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments were discounted by year using expected assets return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate of return. The equivalent single rate is the discount rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Pension Liability Sensitivity The following presents the City of Stillwater's proportionate share of the net pension liability of the Association, calculated using the discount rate of 5.75%, as well as what the Association's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (4.75%) or one percentage point higher (6.75%) than the current rate: Net Pension Liability (Asset) Discount Rate Plan's Fiduciary Net Position 1% Decrease $ (1,113,985) 4.75% Selected Discount Rate 1% Increase $ (1,140,395) $ (1,166,125) 5.75% 6.75% Assets Cash $ 276,477 Mututal Funds 1,908,028 Bonds and Notes 1,430,319 Total Assets 3,614,824 Net Position Restricted for Pension Benefits 3,614,824 73 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Revenues Fire State Aid Net Investment Income Total Revenues Expenses Pension Distributions Trustee Fees Professional Services Total Expenses Change in Net Position Beginning Net Position Ending Net Position 162,031 (18,271) 143,760 22,730 1,395 6,195 30,320 113,440 3,501,384 $ 3,614,824 Information about the changes in the Plan's net pension liability (asset) is a follows: 2015 Total Pension Asset Service Cost $ 83,445 Interest 130,624 Differences Between Expected and Actual Experience Changes of Assumptions - Changes of Benefit Terms Benefit Payments, Including Member Contribution Refunds (22,730) Other Changes Net Change in Total Pension Liability 191,339 Total Pension Liability - Beginning 2,283,090 Total Pension Liability - Ending (a) 2,474,429 Plan Fiduciary Net Position Municipal Contributions State Contributions 162,031 Net Investment Income (18, 271) Benefit Payments (22,730) Administrative Expenses (7,590) Other Changes - Net Change in Fiduciary Net Position 113,440 Fiduciary Net Position - Beginning 3,501,384 Fiduciary Net Position - Ending (b) 3,614,824 Association's Net Pension Liability/(Asset) - Ending (a) - (b) $ (1,140,395) NOTE 7 POST EMPLOYMENT HEALTH CARE BENEFITS At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of January 1, 2016 A. PLAN DESCRIPTION 74 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active employees, who started before January 1, 1989 and retire from the City when eligible for PERA benefits, are eligible for free medical coverage for themselves and their families for life. Active employees, who started after January 1, 1989 and retire the City when eligible for PERA benefits, may continue coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits program. Pursuant to the provisions of the plan, retirees are required to pay the total premium cost. As of December 31, 2015 there were approximately 87 active participants and 47 retired participants receiving benefits from the City's health plans. B. FUNDING POLICY The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2016, the City contributed $738,410 to the plan. C. ANNUAL OPEB COST AND NET OPEB OBLIGATION The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any un -funded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City's net OPEB obligation. Annual Required Contribution Interest on Net OPEB Obligation Adjustment to Annual Required Contribution Annual OPEB Cost (Expense) Contributions Made Increase in Net OPEB Obligation Net OPEB Obligation- Beginning of Year Net OPEB Obligation- End of Year $ 1,311,303 121,106 (171,690) 1,260,719 (792, 554) 468,165 3,027,661 $ 3,495,826 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2016 thru 2013: Percentage Fiscal Annual of Annual Net Year OPEB OPEB Cost OPEB Ended Cost Contributed Obligation 12/31/2014 1,273,873 60.8% $ 2,464,078 12/31/2015 1,270,135 55.6% 3,024,661 12/31/2016 1,260,719 62.9% 3,495,826 Govermental Activities $ 3,179,234 Business -Type Activities 316,592 Total $ 3,495,826 D. FUNDED STATUS AND FUNDING PROGRESS As of January 1, 2014, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability (UAAL) was $20,321,472. The annual payroll for active employees covered by the plan in the actuarial valuation was $5,435,945 for a ratio of UAAL to covered payroll of 373.8%. 75 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. ACTUARIAL METHODS AND ASSUMPTIONS Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2014 actuarial valuation, the entry age normal cost method was used. The actuarial assumptions included a 4% investment rate of return (net of administrative expenses), which is based on the employer's own investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend rate was 8%, reduced by decrements to an ultimate rate of 5% after six years. The actuarial valuation uses a 4% inflation rate. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2014 is not to exceed 30 years. NOTE 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY Deficit Net Position and Fund Balance On December 31, 2016, the following funds had a deficit net position or fund balance: Amount Signs & Lighting Fund $ (67,986) The Signs and Lighting Fund deficit will be eliminated with future service charge receipts. Expenditures in Excess of Adopted Budget On December 31, 2016, there were no funds that had expenditures in excess of its adopted budget: NOTE 9 FUND BALANCE At December 31, 2016, the City had various fund balances through legal restriction and City Council authorization. Major fund balance appropriations at December 31, 2016 are shown on the various balance sheets as segregations of the fund balance. The fund balances are as follows: Total Nonspendable Restricted Committed Assigned Unassigned General Fund Prepaid items $ 81,749 $ 81,749 $ $ - $ - $ Compensated absences 1,243,101 - - - 1,243,101 - Ongoing operations 3,127,595 - - 3,127,595 Total General Fund 4,452,445 81,749 - 1,243,101 3,127,595 76 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 Total Nonspendable Restricted Committed Assigned Unassigned Other Governmental Funds (continued) St Croix Valley Recreation Center Fund Prepaid items 605 605 - Ongoing operations 2,726,866 - 2,726,866 Total St Croix Valley Rec Fund 2,727,471 605 2,726,866 Library Fund Prepaid items 18,968 18,968 - - Ongoing operations 92,921 - 92,921 Total Library Fund 111,889 18,968 92,921 Parks Fund Prepaid items 6,339 6,339 - Ongoing operations 484,087 - - 484,087 - - Total Parks Fund 490,426 6,339 484,087 - - Debt Service Fund Debt Senvice 10,197,146 10,197,146 - Capital Projects Fund Capital asset acquisitions 2,567,921 2,567,921 - Capital construction 9,547,694 6,604,757 - 2,942,937 Total Capital Projects Fund 12,115,615 - 9,172,678 2,942,937 - TIF Districts Fund Eligible TIF related projects 7,685,313 7,685,313 Other Governmental Funds General government: Tourism promotion 69,557 69,557.00 Miscellaneous 5,980 4,994.00 986 - Culture and recreation: Special events 15,540 - - 15,540 - Library activities 101,860 101,860.00 - Trailhead (bicycle) 16,804 16,804.00 Park equipment 14,111 14,111 00 Mscellaneous park activities 464,933 464,933.00 - General government (continued): Public works: Community beautification 26,930 - 26,930 - Lowell park improvements 91,085 - 91,085 - Recycling activities 192,483 192,483.00 - - Miscellaneous 5,950 5,950.00 - - - Public safety 70,344 70,344.00 Total Other Governmental Funds 1,075,577 941,036 134,541 Total Fund Balances $ 38,856,882 $ 107,661 $ 27,996,173 $ 3,438,415 $ 4,186,038 $ 3,127,595 NOTE 10 CONTINGENCIES Federal and State Funds - The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2016. Litigation - The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgement of the City attorney, remotely recoverable by plaintiffs. 77 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 NOTE 11 INTERFUND RECEIVABLES AND PAYABLES Individual fund receivable and Due from Primary Government Board of Water Commission Board of Water Commission Board of Water Commission Total Due from Component Unit Board of Water Commission Board of Water Commission Total payable balances at December 31, 2016 are as follows: Due to Component Unit General Fund Capital Projects Sanitary Sewer Due to Primary Government General Fund Capital Projects Amount $ 296 89,740 2,974 $ 93,010 Amount $ 2,871 186 $ 3,057 The interfund balances (as shown on the statement of net position), between the component unit and the primary government reflect services provided by/from the City to/by the component unit. NOTE 12 INTERFUND TRANSFERS Funds are transferred from one fund to support expenditures of other funds in accordance with authority established for the individual fund. Transfers were initiated to fund capital projects and fund operations. Transfers between individual major funds, and nonmajor governmental funds in the aggregate fund types during the year ended December 31, 2016 were as follows: Transfers In General Fund St Croix Valley Recreation Center Fund Library Fund Parks Fund Debt Service Fund Debt Service Fund Capital Projects Fund Capital Projects Fund Capital Projects Fund Total NOTE 13 RISK MANAGEMENT Transfers Out Capital Projects Fund Capital Projects Fund Capital Projects Fund Capital Projects Fund St Croix Valley Recreation Center Fund TIF Districts Fund General Fund Debt Service Fund Storm Sewer Fund Amount $ 677,531 87,624 81,754 93,376 172,449 1,554,838 127,310 164,049 7,190 $ 2,966,121 The City is exposed to various risks of loss related to: torts; theft of, damage to and destruction of City assets; errors and omissions; injuries to employees; and natural disasters. The City has entered into a joint powers agreement with the League of Minnesota Cities Insurance Trust (LMCIT) to protect the City in the event of loss. The LMCIT is a public entity risk pool currently operating as a common risk management and insurance program for Minnesota cities. The agreement for formation of the LMCIT provides that the pool will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of reserved amounts for each insured event. The pool can make additional assessments to make the pool self- sustaining. The City has determined that it is not possible to estimate the amount of such additional assessments, if any; however, they are not expected to be material to these financial statements. 78 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 There have been no significant reductions in insurance coverage during 2016 and settlements have not exceeded insurance coverage during the current year and prior three years. The State of Minnesota mandates and regulated workers' compensation insurance and the City of Stillwater also purchased this required coverage from the LMCIT. Component Unit The Commission is exposed to various risks of loss related to: torts; theft of, damage to and destruction of City assets; errors and omissions; injuries to employees; and natural disasters for which the Commission carried commercial insurance. There have been no significant reductions in insurance compared to the prior year, and settlement amounts have not exceeded insurance coverage for the current year or the three prior years. NOTE 14 TAX INCREMENT FINANCING AUTHORITY The City is the administering authority for the following tax increment financing districts: District name Curve Crest Scattered Scattered Jr High Anchobaypro Villa Sites Sites Development district # 1 2 1 1 1 City tax increment district # 6 8 9 10 11 County tax increment district # 43 65 70 71 85 District type Redeviopment Housing Housing Redevelopment Redevelopment Statute authorization Chapert 472-A Chapter 469 Chapter 469 Chapter 469 Chapter 469 Year established 1986 2001 2002 2004 2014 District duration 25 years* 25 years* 25 years* 25 years* 25 years* Tax Capacity Current tax capacity 42,950 97,354 64,010 1,181,077 27,417 Original tax capacity (3) (10,905) (1,845) (123,619) (27,880) Captured tax capacity 42,947 86,449 62,165 1,057,458 (463) Fiscal disparity deduction - - - - - Retained by authority 42,947 86,449 62,165 1,057,458 (463) Retained as a % of current net tax capacity 100.0000% 88.7986% 97.1176% 89.3818% 0.0000% Taxes Total captured tax increment tax $ 47,099 $ 98,844 $ 71,089 $ 1,162,769 $ Less tax increment due to increase in tax rate (955) - - Tax increment district gross tax 47.099 97,889 71,089 1,162,769 Projected state auditor .36% admin fee - (352) (256) (4,186) Projected net to district $ 47,099 $ 97,537 $ 70,833 $ 1,158,583 $ PAYGO to Developer $ $ 86,796 $ - $ Outstanding Debt Total bonds issued and outstanding at 12/31/16 $ - $ - $ - $ 13,170,000 $ Issuer adminstrative fee $ - $ - $ - $ - $ Estimated Market Value* Total (aggregate basis): $ 2,894,700 $10,296,100 $ 7,400,000 $126,275,500 $ 1,835,800 * Per parcel basis, copy this link to Washington County: haps:/Jwww.co.washington.mn.usIDocumentCenlerNlewl7859 79 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2016 District name Development district # City tax increment district # County tax increment district # Collections Amount of tax increment collected in: 2016 2015 2014 2013 2012 2011 2010 and prior Total amount collected First tax increment receipt Date of required decertification *After the receipt of the first tax increment NOTE 17 NOTE RECEIVABLE NOTE 18 Jr High 1 6 43 $ 46,929 54,538 58,716 60,403 74,297 69,890 2,275,486 1994 12/31/2019 Anchobaypro 2 8 65 Curve Crest Scattered Scattered Villa Sites Sites 1 1 1 9 10 11 70 71 85 $ 97,514 93,097 86,315 85,930 85,572 91,186 720,900 2001 12/31/2026 $ 70,834 79,206 85,459 87,872 82,825 77,671 487,921 2004 12/31/2029 $ 1,157,130 $ 1,143,415 1,155,646 1,162, 947 1,154, 868 1,103, 294 4,536,209 2004 12/31/2029 213 2015 12/31/2041 On February 19, 2014 the City authorized a tax increment financing loan of $250,000 to provide an incentive to relocate a manufacturing company to the City of Stillwater. The agreement requires the manufacturing company to employ 28 full time equivalent employees by July 1, 2013 and then increasing this amount to 35 full time equivalent employees by July 1, 2014. The 35 full time equivalent employees would need to be maintained until January 1, 2019. Each year the manufacturing company is in compliance with the loan agreement, 20% of the loan amount is forgiven. On January 1, 2019 if the manufacturing company owns the building and has maintained the 35 full time equivalent employees the loan will be fully forgiven. As of December 31, 2016 the manufacturing company is currently in compliance with these loan stipulations, therefore no related receivable is recorded in these financial statements. SUBSEQUENT EVENTS Subsequent to December 31, 2016, the City Council authorized the issuance and public sale of the following: Bond Issue Issue Dated Amount General Obligation Capital Outlay Bonds, Series 2017A 6/6/2017 $ 3,405,000 Total $ 3,405,000 On May 2, 2017 the City Council authorized the public sale of the above stated bond issue for: (1) capital outlay acquisitions for 2017; (2) Phase II of the remodeling and renovation of City Hall and the Police Station; (3) the City's share of the 2017 street improvement project; and, (4) Enhanced Public Works security protocol. The sale of these bonds will occur on June 6, 2017 with a repayment schedule beginning February 1. 2018. The general tax levy will be the expected funding source for repayment. 80 Required Supplementary Information CITY OF STILLWATER, MINNESOTA PERA SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY December 31, 2016 GERF Schedule of the City's Proportionate Share of the Net Pension Liability Last Two Fiscal Years* City's portion of the net pension liability City's proportionate share of the net pension liability State of Minnesota's proportionate share of the net pension liability Total proportionate share of the net pension liability City's covered -employee payroll City's proportionate share of the net pension liability as a percentage of its covered -employee payroll Plan fiduciary net position as a percentage of the total pension liability PEPFF Schedule of the City's Proportionate Share of the Net Pension Liability Last Two Fiscal Years* City's portion of the net pension liability City's proportionate share of the net pension liability City's covered -employee payroll City's proportionate share of the net pension liability as a percentage of its covered -employee payroll Plan fiduciary net position as a percentage of the total pension liability *The amount presented for each fiscal year were determined as of 6/30 83 Measurement Date 6/30/2016 0.06020% $4,887,941 $63,853 $4,951,794 $3,741,046 130.66% 68.91% Measurement Date 6/30/2016 0.27600% $11,076,360 $2,657,140 416.85% 63.88% Measurement Date 6/30/2015 0.05920% $3,068,051 $0 $3,068,051 $3,312,815 92.61 % 78.20% Measurement Date 6/30/2015 0.26900% $3,056,469 $3,002,740 101.79% 86.61% CITY OF STILLWATER, MINNESOTA PERA SCHEDULE OF CITY CONTRIBUTIONS December 31, 2016 GERF Schedules of City Contributions Last Two Fiscal Years* 2016 2015 Statutorily required contribution $ 287,143 $ 270,121 Contributions to the statutorily required contribution 287,143 270,121 Contribution deficiency (excess) $ - $ City's covered -employee payroll $ 3,828,573 $ 3,601,613 Contributions as a percentage of covered employee payroll 7.50% 7.50% *The Amounts Presented for Each Fiscal Year were Determined as of 12/31. PEPFF Schedule of City Contributions Last Two Fiscal Years 2016 2015 Statutorily required contribution $ 433,918 $ 412,840 Contributions to the statutorily required contribution 433,918 412,840 Contribution deficiency (excess) $ City's covered -employee payroll $ 2,678,506 $ 2,548,395 Contributions as a percentage of covered employee payroll 84 16.20% 16.20% CITY OF STILLWATER, MINNESOTA SCHEDULE OF CHANGES IN THE STILLWATER FIRE RELIEF ASSOCIATION'S NET PENSION LIABILITY Last Two Years 2015 2014 Total Pension Asset Service Cost $ 83,445 $ 81,410 Interest 130,624 127,896 Differences Between Expected and Actual Experience Changes of Assumptions Changes of Benefit Terms Benefit Payments, Including Member Contribution Refunds (22,730) (40,200) Other Changes - Net Change in Total Pension Liability 191,339 169,106 Total Pension Liability - Beginning 2,283,090 2,113,984 Total Pension Liability - Ending (a) 2,474,429 2,283,090 Plan Fiduciary Net Position Municipal Contributions - State Contributions 162,031 153,440 Net Investment Income (18,271) 191,334 Benefit Payments (22,730) (40,200) Administrative Expenses (7,590) (7,620) Other Changes - - Net Change in Fiduciary Net Position 113,440 296,954 Fiduciary Net Position - Beginning Fiduciary Net Position - Ending (b) 3,501,384 3,204,430 3,614,824 3,501,384 Association's Net Pension Liability/(Asset) - Ending (a) - (b) $ (1,140,395) $ (1,218,294) Fiduciary Net Position as a Percentage of the Total Pension Liability 146.09% 153.36% Covered -Employee Payroll N/A N/A Net Pension Liability/(Asset) as a Percentage of Covered -Employee Payroll N/A N/A Information prior to 2014 is not available at this time. 85 CITY OF STILLWATER, MINNESOTA SCHEDULE OF CITY CONTRIBUTIONS TO STILLWATER FIRE RELIEF ASSOCIATION Last Three Years 2016 2015 2014 Statutorily Required Contribution $ $ - $ Contributions in Relation to the Statutorily Required Contribution Contribution Deficiency (Excess) $ - $ $ Information prior to 2014 is not available at this time. 86 CITY OF STILLWATER, MINNESOTA SCHEDULE OF FUNDING PROGRESS OTHER POST EMPLOYMENT HEALTH CARE BENEFITS Plan Actuarial UAAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (b -a) (a/b) (c) ((b-a)/c) Other Post Retirement Health Care Benefits 1/1/2008 $ - $ 10,596,270 $ 10,596,270 0.0% $ 5,839,069 181.5% 1/1/2011 - 17,933,430 17,933,430 0.0% 5,317,505 337.3% 1/1/2014 - 20,321,472 20,321,472 0.0% 5,435,945 373.8% 87 Combining and Individual Fund Financial Statements Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are restricted to expenditures for a particular purpose. Special Events Fund — to account for special events held within the City and sponsored by City civic organizations. Financing is primarily from the General fund and service charges. Library Donations Fund — to account for fund received specifically used for library functions that are not part of the library operating budget. Park/Trail Dedication Fund — to account for fees paid by developers and legally restricted to capital outlay for City parks. Park Maintenance Fund — to account for fees paid by developers for the maintenance of parks within the development area. Community Beautification Fund — to account for funds associated with community -wide beautification. Washington County Recycling Grant Fund — to account for funds received from Washington County to fund the recycling fund within the City. Public Safety Programs Fund — to account for funds received for the City's public safety programs. Lodging Tax — to account for funds received for lodging tax and disbursed to the Greater Stillwater Area Convention and Visitor's Bureau for the purpose of attracting tourism and convention business to the City. Miscellaneous Grants Fund — to account for grant funds received used to fund various projects/services within the City. CITY OF STILLWATER, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2016 Special Revenue Special Library Park/Trail Park Events Donations Dedication Maintenance ASSETS Cash and pooled investments $ 15,507 $ 101,165 $ 333,060 $ 126,129 Accrued interest receivable 33 206 505 239 Accounts receivable 7,890 Total Assets 15,540 109,261 333,565 126,368 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Total Liabilities Fund Balances: Restricted Committed Total Fund Balances 15,540 7,401 7,401 101,860 333,565 15,540 101.860 126,368 333,565 126,368 Total Liabilities and Fund Balances $ 15,540 $ 109,261 $ 333,565 $ 126,368 92 Special Revenue Total Washington Nonmajor Community County Public Safety Lodging Miscellaneous Governmental Beautification Recycling Grant Programs Tax Grants Funds $ 27,163 $ 210,371 $ 62,513 $ 71,207 $ 151,895 $ 1,099,010 42 392 130 145 1,692 - 7,890 27,205 210,763 62,643 71,352 151,895 1,108,592 275 18,280 1,120 1,795 4,144 33,015 275 18,280 1,120 1,795 4,144 33,015 - 192,483 61,523 69,557 55,680 941,036 26,930 92,071 134,541 26,930 192,483 61,523 69,557 147,751 1,075,577 $ 27,205 $ 210,763 $ 62,643 $ 71,352 $ 151,895 $ 1,108,592 93 CITY OF STILLWATER, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2016 Special Revenue Special Library Park/Trail Park Events Donations Dedication Maintenance REVENUES Property taxes $ 48,958 $ - $ $ Lodging tax - - Intergovernmental - Charges for services - Fines and forfeits - - Investment income: Interest 32 325 982 468 Fair value decrease in investments (135) (846) (2,066) (977) Donations 8,000 56,459 - Miscellaneous 135 28,141 161,740 977 Total revenues 56,990 84,079 160,656 468 EXPENDITURES Current: General government - Public safety - Public works - - Culture and recreation 48,725 60,323 Capital Outlay 23,927 32,500 Total expenditures 48,725 84,250 32,500 Excess (deficiency) of revenues over expenditures 8,265 (171) 128,156 468 Net change in fund balances 8,265 (171) 128,156 468 Fund balance -January 1 7,275 102,031 205,409 125,900 Fund balance -December 31 $ 15,540 $ 101,860 $ 333,565 $ 126,368 94 Special Revenue Total Washington Nonmajor Community County Public Safety Lodging Miscellaneous Governmental Beautification Recycling Grant Programs Tax Grants Funds $ 15,000 $ 34,918 $ 1,004 375 $ $ - $ 63,958 211,723 - 211,723 - 40,630 75,548 1,004 - 375 67 616 281 234 (173) (1,598) (531) (591) - - 2,784 - 173 1,598 1,943 591 15,067 35,534 5,856 211,957 1,650 38,860 3,005 (6,917) 68,893 234,158 81,140 651,747 - 200,930 97,091 298,021 - 12,286 - 2,918 15,204 31,273 - - 31,273 4,371 - - - 113,419 - - - 5,228 61,655 4,371 31,273 12,286 200,930 105,237 519,572 10,696 4,261 (6,430) 11,027 (24,097) 132,175 10,696 4,261 (6,430) 11,027 (24,097) 132,175 16,234 188,222 67,953 58,530 171,848 943,402 26,930 $ 192,483 $ 61,523 $ 69,557 $ 147,751 $ 1,075,577 95 CITY OF STILLWATER, MINNESOTA SPECIAL EVENTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2016 Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property taxes $ 48,958 $ 48,958 $ Investment Income: Interest 32 32 Fair value decrease in investments (135) (135) Donations 10,000 8,000 (2,000) Miscellaneous 135 135 Total revenues 58,958 56,990 (1,968) EXPENDITURES Current: Culture and recreation 58,958 48,725 10,233 Net change in fund balance $ 8,265 $ 8,265 Fund balance -January 1 7,275 Fund balance -December 31 $ 15,540 96 CITY OF STILLWATER, MINNESOTA COMMUNITY BEAUTIFICATION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2016 Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property taxes $ 15,000 $ 15,000 $ Investment Income: Interest 67 67 Fair value decrease in investments - (173) (173) Miscellaneous 173 173 Total revenues 15,000 15,067 67 EXPENDITURES Current: Culture and recreation 15,000 4,371 10,629 Net change in fund balance $ 10,696 $ (10,562) Fund balance -January 1 16,234 Fund balance -December 31 97 26,930 CITY OF STILLWATER, MINNESOTA WASHINGTON COUNTY RECYCLING GRANT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2016 Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Intergovernmental $ 34,618 $ 34,918 $ 300 Investment Income: Interest - 616 616 Fair value decrease in investments - (1,598) (1,598) Miscellaneous - 1,598 1,598 Total revenues 34,618 35,534 916 EXPENDITURES Current: Public works 34,618 31,273 3,345 Excess (deficiency) of revenues over expenditures $ - 4,261 $ 4,261 Fund balance -January 1 188,222 Fund balance -December 31 98 $ 192,483 CITY OF STILLWATER, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUNDS Year Ended December 31, 2016 Balance Balance January 1, December 31, 2016 Additions Deductions 2016 ASSETS Cash and pooled investments - held in escrow $ 459,913 $ 1,928,420 $ 2,388,333 $ Total Assets $ 459,913 $ 1,928,420 $ 2,388,333 $ LIABILITIES Accounts payable Total Liabilities $ 459,913 $ 1,928,420 $ 2,388,333 $ $ 459,913 $ 1,928,420 $ 2,388,333 $ 99 Other Supplementary Information CITY OF STILLWATER, MINNESOTA SCHEDULE OF SPECIAL REVENUE FUND - LIBRARY DONATIONS FUND BALANCE SHEET December 31, 2016 Minerva Mcluer- Hollis R. Sunday Webster Murdock Grant ASSETS Cash and pooled investments $ 24,016 $ 10,201 $ 1,819 $ (434) Accrued interest receivable 46 18 3 Accounts receivable - 434 Total Assets 24,062 10,219 1,822 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Total Liabilities Fund balance: Restricted 24,062 10,219 1,822 Total fund balance 24,062 10,219 1,822 Total liabilities and fund balance $ 24,062 $ 10,219 $ 1,822 $ 102 Helen Doctor H. Lawson Van Meier Gifts Stillwater Total Library Miscellaneous Library Foundation Donations Donations $ 37,488 $ 1,260 $ 10,381 $ (5,160) $ 21,594 $ 101,165 62 2 28 - 47 206 - - - 7,456 - 7,890 37,550 1,262 10,409 2,296 21,641 109,261 5,000 1,687 714 7,401 5,000 1,687 714 7,401 37,550 1,262 5,409 609 20,927 101,860 37,550 1,262 5,409 609 20,927 101,860 $ 37,550 $ 1,262 $ 10,409 $ 2,296 $ 21,641 $ 109,261 103 CITY OF STILLWATER, MINNESOTA SCHEDULE OF SPECIAL REVENUE FUND - LIBRARY DONATIONS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2016 Minerva Mcluer- Hollis R. Sunday Helen Webster Murdock Grant Lawson REVENUES Investment Income: Interest $ 81 $ 34 $ 6 $ $ 87 Fair value decrease in investments (186) (79) (14) (254) Donations - - - 9,564 Miscellaneous 186 79 14 27,111 254 Total revenues 81 34 6 27,111 9,651 EXPENDITURES Personnel Services - 26,605 Supplies - 2,000 Miscellaneous Capital outlay Total expenditures - - 26,605 2,000 Excess (deficiency) of revenues over expenditures 81 34 6 506 7,651 OTHER FINANCING SOURCES (USES) Transfer in - 110 Transfer (out) - - - Total other financing sources (uses) 110 Net change in fund balances 81 34 6 616 7,651 Fund balances, January 1 23,981 10,185 1,816 (616) 29,899 Fund balances, December 31 $ 24,062 $ 10,219 $ 1,822 $ - $ 37,550 104 Doctor H. Van Meier Gifts Stillwater Interfund Total Library Miscellaneous Adjusting Library Foundation Donations Entries Donations $ 4 $ 45 $ $ 68 $ $ 325 (10) (113) - (190) (846) - 5,000 24,919 16,976 56,459 10 113 184 190 28,141 4 5,045 25,103 17,044 84,079 4 13,982 - - - 26,605 24,919 5,551 32,470 179 1,069 1,248 - 9,945 23,927 13,982 25.098 16,565 84,250 (8,937) 5 479 (171) (110) (110) 110 (110) 4 (8,937) 5 369 (171) 1,258 14,346 604 20,558 102,031 $ 1,262 $ 5,409 $ 609 $ 20,927 $ - $ 101,860 105 CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND BALANCE SHEET December 31, 2016 307 308 309 312/512 1,290,000 1,445,000 1,455,000 6,355,000 C.O. C.O. C.O. C.O. Bonds of Bonds of Bonds of Bonds of 2007A 2008A 2009A 2012A -- ASSETS Cash and pooled investments $ (40) $ 106,908 $ 279,288 $ 1,637,126 Funds held in escrow - Accrued interest receivable 261 294 2,101 Taxes receivable: Delinquent 2,426 3,685 14,458 Due from county 40 87 2,401 9,818 Special assessments receivable: Delinquent 9,423 Total Assets - 109,682 285,668 1,672,926 DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Deferred Inflows of Resources: Unavailable revenue Fund Balances: Restricted Total Fund Balances 2,426 107,256 107,256 3,685 23,881 281,983 1,649, 045 281,983 1,649,045 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ $ 109,682 $ 285,668 $ 1,672,926 106 314 315 316 319 324 325/326 9,215,000 3,160,000 6,400,000 1,005,000 C.O. C.O. C.O. C.O. C.O. C.O. Bonds of Bonds of Bonds of Bonds of Amory Bonds of 2014A 2005B 2006A 2009B Land 2016 $ 629,954 $ (3,059) $ (107) $ 183,430 $ (186) $ 1,605,657 523 - - 239 45 2,032 6,901 2,078 1,836 11,718 7,655 3,059 107 1,128 906 7,602 645,033 6,901 186,875 2,078 2,601 1,627,009 1,836 11,718 638,132 - 184,797 765 1,615,291 638,132 184,797 765 1,615,291 $ 645,033 $ $ $ 186,875 $ 2,601 $ 1,627,009 107 CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND BALANCE SHEET (CONTINUED) December 31, 2016 329 360 560 576 370 4,095,000 2,450,000 5,300,000 C.O. TIF Escrow Escrow TIF Bonds of Bonds of Bonds Bonds Bonds of 2009D 2016B 2016B 2016C 2008B ASSETS Cash and pooled investments $ 930,723 $ (39,751) $ $ - $ 7,409 Funds held in escrow - - 3,543,948 295,428 Accrued interest receivable 1,403 - - Taxes receivable: Delinquent 7,436 - - Due from county 3,907 - - - Special assessments receivable: Delinquent - Total Assets 943,469 (39,751) 3,543,948 295,428 7,409 DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Deferred Inflows of Resources: Unavailable revenue 7,436 Fund Balances: Restricted 936,033 (39,751) 3,543,948 295,428 7,409 Total Fund Balances 936,033 (39,751) 3,543,948 295,428 7,409 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 943,469 $ (39,751) $ 3,543,948 $ 295,428 $ 7,409 108 385 389 2,695,000 1,420,000 Total Revenue Revenue Debt Bonds of Bonds of Service 2005C 2009C Fund $ 614,712 $ 357,864 $ 6,309,928 3,839,376 1,037 508 8,443 3,744 2,673 622,166 3,744 452 54,734 16 39,399 9,423 358,840 10,261,303 452 64,157 618,422 358,388 10,197,146 618,422 358,388 10,197,146 $ 622,166 $ 358,840 $ 10,261,303 109 CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended December 31, 2016 307 308 309 312/512 $1,290,000 1,445,000 $1,455,000 $6,355,000 C.O. C.O. C.O. C.O. Bonds of Bonds of Bonds of Bonds of 2007A 2008A 2009A 2012A Revenues: Property taxes $ 1,075 $ 2,351 $ 222,628 $ 916,031 Special assessments - 57,417 Investment income: Interest 213 541 449 2,628 Fair value decrease in investments - (1,066) (1,199) (8,574) Miscellaneous - 1,066 1,349 10,045 Total revenues 1,288 2,892 223,227 977,547 Expenditures: Current: Economic Development Debt service: Principal 205,000 200,000 855,000 Interest 3,331 9,150 100,703 Paying agent fees - 450 900 450 Bond issuance fees - Miscellaneous 246 246 Total expenditures 208,781 Revenues over (under) expenditures Other financing sources (uses): Bond proceeds Premium issued on debt Payment on refunding bond Transfers in Transfers (out) 1,288 (205,889) (75,827) Total other financing sources (75,827) 210,296 956,399 12,931 21,148 Net change in fund balance (74,539) (205,889) 12,931 21,148 Fund Balances, January 1 74,539 313,145 269,052 1,627,897 Fund Balances, December 31 $ $ 107,256 $ 281,983 $ 1,649,045 110 314 315 316 319 324 325/326 329 $9,215,000 $3,160,000 $6,400,000 $1,005,000 $4,095,000 C.O. C.O. C.O. C.O. C.O. C.O. C.O. Bonds of Bonds of Bonds of Bonds of Amory Bonds of Bonds of 2014A 2005B 2006A 2009B 2016 2009D $ 718,681 $ 284,135 $ 2,905 $ 104,202 $ 84,490 $ 720,644 $ 361,064 682 1,338 832 389 81 1,140 2,374 (2,132) - (974) (186) (8,293) (5,728) 2,619 192 1,044 243 8,784 5,971 719,850 285,665 3,737 104,661 84,628 722,275 363,681 420,000 215,000 - 85,000 - 290,000 270,841 40,312 10,150 59,578 62,213 450 425 - - - 800 450 - 14,425 246 246 246 247 246 691,537 255,983 28,313 29,682 95,396 75,050 352,909 3,737 9,265 84,628 647,225 10,772 1,180,000 (1,210,000) - - 460,381 - 168 - (3,737) (84,485) (460,549) (749,619) (3,737) (84,485) 719,619 28,313 (719,937) - 9,265 143 1,366,844 10,772 609,819 719,937 175,532 622 248,447 925,261 638,132 $ - $ $ 184,797 $ 765 $ 1,615,291 $ 936,033 111 SCHEDULE OF DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED) Year Ended December 31, 2016 360 560 576 370 385 2,450,000 5,300,000 $2,695,000 TIF Escrow Escrow TIF Sports Ctr Bonds of Bonds Bonds Bonds of Bonds of 2016B 2016B 2016C 2008B 2005C Revenues: Property taxes $ $ - $ - $ $ 2,196 Special assessments - Investment income: Interest - 20 - 1,829 Fair value decrease in investments - - - (4,232) Miscellaneous 4,400 Total revenues 20 4,193 Expenditures: Current: Economic Development 6,223,165 Debt service: Principal 190,000 210,000 Interest - 176,710 20,106 Paying agent fees 2,450 - - 900 425 Bond issuance fees 36,705 14,333 227,448 Miscellaneous 596 3,000 44,696 246 246 Total expenditures 39,751 17,333 6,495,309 367,856 230,777 Revenues over (under) expenditures Other financing sources (uses): Bond proceeds Premium issued on debt Payment on refunding bond Transfers in Transfers (out) (39,751) (17,333) (6,495,289) (367,856) (226,584) 25,750 (25,750) 2,424,250 154,829 982,202 6,585,000 205,717 367,856 230,530 Total other financing sources 3,561,281 6,790,717 367,856 230,530 Net change in fund balance (39,751) 3,543,948 295,428 3,946 Fund balance, January 1 - 7,409 614,476 Fund balance, December 31 $ (39,751) $ 3,543,948 $ 295,428 $ 7,409 $ 618,422 112 389 $1,420,000 Total Sports Ctr Eliminate Debt Bonds of Interfund Service 2009C Activity Fund $ 443 $ - $ 3,420,845 57,417 989 13,505 (2,075) (34,459) 2,075 37,788 1,432 - 3,495,096 6,223,165 145,000 2,815,000 22,200 775,294 450 8,150 292,911 246 - 50.753 167,896 10,165,273 (166,464) (6,670,177) 172,449 (486,299) 486,299 10,215,000 360,546 (1,210,000) 1,727,287 (164,049) 172,449 10,928,784 5,985 4,258,607 352,403 - 5,938,539 $ 358,388 $ $ 10,197,146 113 CITY OF STILLWATER, MN SCHEDULE OF TIF DISTRICTS FUND BALANCE SHEET December 31, 2016 ASSETS Cash and pooled investments Accrued interest receivable Taxes receivable: Delinquent Due from county Special assessments receivable: Deferred Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Total Liabilities TIF TIF TIF District District District #1 #4 #6 (Decertified) (Decertified) $ 2,097,193 3,958 164,854 2,266,005 Deferred Inflows of Resources: Unavailable revenue 164,854 Fund Balances: Restricted 2,101,151 $ 3,977,808 7,554 $ 752,164 1,802 3,985,362 753,966 3,985,362 753,966 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 2,266,005 $ 3,985,362 $ 753,966 114 TIF TIF TIF TIF Total District District District District TIF #8 #9 #10 #11 Districts $ 164,177 $ 106,472 $ 882,013 $ (322,721) $ 7,657,106 235 142 447 - 14,138 767 2,244 1,458 2,225 11,950 14,194 164,854 167,423 106,614 895,868 (322,721) 7,852,517 125 - 125 - 125 125 767 1,458 167,079 166,656 106,614 894,285 (322,721) 7,685,313 $ 167,423 $ 106,614 $ 895,868 $ (322,721) $ 7,852,517 CITY OF STILLWATER, MINNESOTA SCHEDULE OF TIF DISTRICTS FUND STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCE Year Ended December 31, 2016 REVENUES Tax Increment Special assessments Interest Fair value decrease in investments Miscellaneous Total revenues EXPENDITURES Current: Economic development Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers (out) Total other financing sources (uses) Net change in fund balance Fund balance -January 1 TIF TIF TIF District District District #1 #4 #6 (Decertified) (Decertified) $ $ $ 46,929 20,831 8,436 13,297 3,047 (16,153) (30,825) (7,356) 16,153 30,825 7,356 29,267 4,346 24,921 24,921 2,076,230 13,297 49,976 15 1,068 13,282 48,908 (230,530) (230,530) 13,282 (181,622) 3,972,080 935,588 Fund balance-December31 $ 2,101,151 $ 3,985,362 $ 753,966 116 TIF TIF TIF TIF Total District District District District TIF #8 #9 #10 #11 Districts $ 97,514 $ 70,834 $ 1,157,130 $ - $ 1,372,407 - 20,831 392 231 2,184 - 27,587 (957) (579) (1,826) - (57,696) 957 579 321,941 - 377,811 97,906 71,065 1,479,429 - 1,740,940 46,247 51,659 51,659 32,110 396,560 38,955 1,082,869 296,815 777,161 (296,815) 963,779 (1,324,308) - (1,554,838) (1,324,308) (1,554,838) 38,955 (241,439) (296,815) (591,059) 114,997 67,659 1,135,724 (25,906) 8,276,372 $ 166,656 $ 106,614 $ 894,285 $ (322,721) $ 7,685,313 117 CITY OF STILLWATER, MINNESOTA SCHEDULE OF PROPRIETARY FUND - PARKING FUND STATEMENT OF NET POSIITION December 31, 2016 720 725 General Parking Parking Ramp ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Total CURRENT ASSETS Cash and pooled investments $ 658,475 $ (46,726) $ 611,749 Accrued interest receivable 1,060 1,060 Accounts receivable 2,590 2,590 Prepaid items 1,005 37 1,042 Total current assets 663,130 (46,689) 616,441 CAPITAL ASSETS Land 122,919 279,701 402,620 Building and other improvements 39,576 6,024,789 6,064,365 Improvements other than building 1,437,555 1,437,555 Machinery and equipment 133,765 173,588 307,353 Vehicles 31,851 31,851 Less accumulated depreciation (555,598) (569,107) (1,124,705) Net capital assets 1,270,456 5,908,971 7,179,427 Total assets 1,933,586 5,862,282 7,795,868 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pensions 33,382 33,382 Total assets and deferred outflows of resources 1,966,968 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION LIABILITIES Current Iiabilties Accounts payable Contracts payable Salaries payable Compensated absences payable Total current liabilities 4,559 1,232 7,018 2,391 15,200 5,862,282 7,829,250 5,328 9,887 1,232 7,018 2,391 5,328 20,528 Noncurrent liabilties Compensated absences 23,177 23,177 Net OPEB obligation 32,623 - 32,623 Net pension liabilitiy 78,265 78,265 Total noncurent liabilities 134,065 134,065 Total liabilities 149,265 5,328 154,593 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions 7,940 - 7,940 NET POSITION Investment in capital assets 1,270,456 5,908,971 7,179,427 Unrestricted 539,307 (52,017) 487,290 Total net position 1,809,763 5,856,954 7,666,717 118 CITY OF STILLWATER, MINNESOTA SCHEDULE OF PROPRIETARY FUND - PARKING FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Year ended December 31, 2016 720 725 General Parking Parking Ramp Total OPERATING REVENUES Charges for services $ 303,992 $ 100,179 $ 404,171 OPERATING EXPENSES Personnel services 124,018 124,018 Supplies 8,976 747 9,723 Other services and charges 56,601 55,409 112,010 Miscellaneous 21,073 4,601 25,674 Depreciation 81,626 94,221 175,847 Total operating expenses 292,294 154,978 447,272 Income (loss) from operations 11,698 NONOPERATING REVENUES (EXPENSES) Interest income Total nonoperating revenues (54,799) (43,101) 1,799 - 1,799 1,799 1,799 CHANGE IN NET POSITION 13,497 (54,799) (41,302) NET POSITION Net position, January 1 1,796,266 5,911,753 7,708,019 Net position, December 31 $ 1,809,763 $ 5,856,954 $ 7,666,717 119 CITY OF STILLWATER, MINNESOTA SCHEDULE OF PROPRIETARY FUND - PARKING FUND STATEMENT OF CASH FLOWS Year Ended December 31, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to suppliers Payments to employees Net cash from operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments Net cash from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense (Increase) Decrease in Assets: Accounts receivable Prepaid items Deferred outflows Increase (Decrease) in Liabilities: Accounts payable Salaries payable Due to other governments Compensated absences payable Net OPEB obligation Net pension liability Deferred inflows Total adjustments 720 General Parking 725 Parking Ram p Totals $ 304,462 $ 101,994 $ 406,456 (93,145) (62,057) (155,202) (112,245) (112,245) 99,072 (60,387) (60,387) 1,670 1,670 39,937 40,355 39,937 618,121 (86,664) $ 658,476 $ (46,727) 139,009 (60,387) (60,387) 1,670 1,670 80,292 531,457 611,749 $ 11,698 $ (54,799) $ (43,101) 81,626 470 (125) (26,544) (7,602) 473 880 4,354 29,482 3,128 87,374 94,221 1,815 537 (1,837) 94,736 175,847 2,285 412 (26,544) (9,439) 473 880 4,354 29,482 3,128 182,110 Net cash from operating activities $ 99,072 $ 39,937 $ 139,009 120 STATISTICAL SECTION This part of the City of Stillwater's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Financial Trends Page These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 122 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 132 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information 140 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 146 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information is the City's financial report relates to the services the City provides and the activities it performs. 149 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive financial reports for the relevant year. CITY OF STILLWATER, MINNESOTA NET POSITION BY COMPONENT, LAST TEN FISCAL YEARS (accrual basis of accounting) Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business -type activities Net investment in capital assets Unrestricted Total business -type activities net postion Primary Government Net investment in capital assets Restricted Unrestricted Total primary government net position Fiscal Year 2007 $ 57,606,357 6,357,217 14,842,632 $ 78,806,206 $ 7,140,786 2,488,176 $ 9,628.962 $ 64,747,143 6,357,217 17, 330, 808 $ 88,435,168 122 2008 $ 59,480,145 5,838,057 15,998,289 2009 2010 $ 59,625,739 11,550,855 13,759,760 $ 81,316,491 $ 84,936,354 $ 7,068,527 $ 7,155,514 2,492,854 2,235,823 $ 9,561,381 $ 9,391,337 $ 66,548,672 5,838, 057 18,491,143 $ 66,781,253 11,550,855 15,995,583 $ 63,897,204 6,218,147 12,433,375 $ 82,548,726 $ 13,329,996 2,131,624 $ 15,461,620 $ 77,227,200 6,218,147 14,564,999 $ 90,877,872 $ 94,327,691 $ 98,010,346 Fiscal Year 2011 $ 66,721,568 14,529,945 5,481,558 $ 86,733,071 2012 $ 69,379,907 14,583,754 4,766,219 2013 $ 70,767,539 14,742, 599 5,832,591 2014 2015 2016 $ 71,030,940 $ 69,919,712 $ 71,049,412 23, 628,141 19, 805,481 25,170, 874 (2,624,152) (2,162,160) (13,610,309) $ 88,729,880 $ 91,342,729 $ 92,034,929 $ 87,563,033 $ 82,609,977 $ 13,662,786 $ 13,242,875 $ 12,897,606 $ 12,662,766 $ 13,307,269 $ 13,195,217 1,472,051 1,689,198 1,426,104 1,482,615 1,492,698 1,347,815 $ 15,134,837 $ 14,932,073 $ 14,323,710 $ 14,145,381 $ 14,799,967 $ 14,543,032 $ 80,384,354 14,529,945 6,953,609 $ 101,867,908 $ 82,622,782 14,583,754 6,455,417 $ 83,665,145 14,742,599 7,258,695 $ 83,693,706 $ 83,226,981 $ 84,244,629 23,628,141 19,805,481 25,170,874 (1,141,537) (669,462) (12,262,494) $ 103,661,953 $ 105,666,439 $ 106,180,310 $ 102,363,000 $ 97,153,009 123 CITY OF STILLWATER, MINNESOTA CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual basis of accounting) Expenses Governmental activities: General government Public Safety Public Works Culture and recreation Economic development Interest on long-term debt Total governmental activities expenses Business -type activities: Sanitary Sewer Storm Sewer Signs & Lighting Parking Total business -type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Public Safety Public Works Culture and recreation Economic development Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Sanitary Sewer Storm Sewer Signs & Lighting Parking Total business -type activities program revenues Total primary government program revenues Net (Expense)/Revenue Governmental activities Business -type activities Total primary government net expense Fiscal Year 2007 $ 3,051,357 4,133,983 3;824872 3,857,763 1,001,823 1,028,231 16,898,029 2,013,829 338,105 353,120 190,463 2,895,517 $ 19,793,546 2008 $ 3,309,748 4,626,826 2,603,563 4,388,996 1,062,492 1,213,753 17,205,378 2,164,659 424,929 366,848 220,412 3,176,848 2009 $ 2,885,730 4,430,687 2,796,633 4,317,878 412,598 1,381,994 2010 $ 2,948,354 4,405,907 2,739,684 4,405,463 969,992 1,117, 505 16,225, 520 16,586,905 2,183,972 507,991 370,858 200,143 3,262,964 $ 20,382,226 $ 19,488,484 2,290,662 410,780 397,014 260,465 3,358,921 $ 19,945,826 $ 350,222 $ 325,543 $ 448,203 $ 1,201,525 1,144,235 1,036,219 57,164 122,828 143,959 1,751,760 1,815,998 1,807,220 196,312 77,147 2,625 512,355 459,720 455,328 4,535,386 1,178,987 1,173,898 8,604,724 5,124,458 5,067,452 1,993,928 233,551 369,325 252,456 2,849,260 2,017,151 496,048 370,620 182,542 3,066,361 $ 11,453,984 $ 1,905,076 491,514 372,524 178,588 2,947,702 8,190,819 $ 282,194 931,701 596,622 1,660, 390 397 475,432 2,676,036 6,622,772 1,912,336 491,292 405,802 233,004 3,042,434 8,015,154 $ 9,665,206 $ (8,293,305) $ (12,080,920) $ (11,158,068) $ (9,964,133) (46,257 (110,487) (315,262) (316,487) $ (8,339,562) $ (12,191,407) $ (11,473,330) $ (10,280,620) 124 Fiscal Year 2011 2012 $ 3,208,084 4,658,726 2,625,642 4,533,431 1,178,219 818,292 17,022,394 2,342,657 438,779 395,184 354,863 $ 3,181,051 4,630,601 2,911,405 4,337,935 961,305 899,473 16,921,770 2013 $ 3,339,741 4,751,921 3,125, 331 4,163,006 1,269,417 1,142, 756 2014 $ 3,541,235 5,114,113 3,416,259 4,580,839 1,130, 931 1,019,547 17,792,172 18,802,924 2015 2016 $ 3,780,858 5,414,392 3,256,154 4,561,236 991,412 828,193 $ 4,366,424 7,059,377 3,385,412 4,815,943 7,010,850 1,295,302 18,832,245 27,933,308 3,531,483 $ 20,553,877 $ 396,098 886,011 52,715 1,658,286 15,875 683,845 3,279,841 6,972,671 2,287,456 390,746 393,106 347,788 3,419,096 $ 20,340,866 $ 408,500 893,618 30,708 1,712,722 10,665 516,674 1,985,996 2,574,793 417,073 356,397 367,965 3,716,228 $ 21,508,400 $ 389,334 860,259 85,980 1,662,683 52,722 549,848 3,499,142 2,513,434 520,839 352,981 363,001 3,750,255 $ 22,553,179 $ 447,287 1,027,391 57,718 1,807,857 38,215 548,579 1,281, 756 2,315,948 2,848,988 498,336 526,292 354,193 366,118 363,914 447,272 3,532,391 4,188,670 $ 22,364,636 $ 32,121.978 $ 608,313 1,038,999 99,199 1,704,324 1,112 697,228 746,429 $ 473,930 1,015,496 414,733 1,855,984 652,863 3,558,295 5,558,883 7,099,968 5,208,803 4,895,604 7,971,301 2,193,839 528,346 381,980 261,711 3,365,876 $ 10,338,547 1,953,380 494,910 379,471 258,050 3,085,811 1,958,328 511,498 380,579 270,921 3,121, 326 2,344,479 554,528 382,758 334,720 3,616,485 $ 8,644,694 $ 10,221,294 $ 8,825,288 2,351,072 624,198 386,406 408,045 2,486,019 638,621 387,937 404,171 3,769,721 3,916,748 8,665,325 $ 11,888,049 $ (10,049,723) $ (11,362,887) $ (10,692,204) $ (13,594,121) $ (13,936,641) $ (19,962,007) (165,607) (333,285) (594,902) (133,770) 237,330 (271,922) $ (10,215,330) $ (11,696,172) $ (11,287,106) $ (13,727,891) $ (13,699,311) $ (20,233,929) 125 CITY OF STILLWATER, MINNESOTA CHANGES IN NET POSITION (CONTINUED), LAST TEN FISCAL YEARS (accrual basis of accounting) 2007 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes Tax increment Lodgingtax Franchise taxes Unrestricted grants and contributions Unrestricted investment earnings Gain on sale of capital assets Transfers Total governmental activities Business -type activities: Unrestricted investment earnings Transfers Total business -type activities Total primary government Change in Net Position Governmental activities Business -type activities Total primary government $ 9,441,086 2,680,808 423,938 737,949 947,685 14,422 196,869 14,442,757 117,402 (196,869) 2008 $ 9,816,859 2,937,029 127,867 426,688 243,845 970,959 2009 2010 $ 10,228,046 $ 9,709,376 3,102,744 3,075,912 137,387 139,026 426,754 425,617 405,885 270,671 491,432 297,177 76,311 8,572 67,958 (90,628) (6,349,846) 14, 591, 205 14, 777, 931 7,576,505 106,539 (67,958) (79,467) $ 14,363,290 $ 42,906 14,634,111 $ 6,149,452 $ (125, 724) 54,590 36,924 90,628 6,349,846 145,218 6,386,770 14,923,149 $ 13,963,275 2,510,285 $ (67,581) $ 6,023,728 $ 126 3,619,863 $ (2,387,628) (170,044) 6,070,283 2,442,704 $ 3,449,819 $ 3,682,655 Fiscal Year 2011 2012 2013 2014 2015 2016 $ 9,771,259 3,141, 704 144,891 431,579 283,759 221,783 43,875 195,218 14,234,068 34,042 (195,218) (161,176) $ 14,072,892 $ 9,771,259 3,141, 704 144,891 431,579 283,759 221,783 43,875 195,218 14, 234, 068 34,042 (195,218) (161,176) $ 14,072,892 $ 10,763,810 2,323,463 169,283 143,118 291,805 (407,813) 21,687 $ 10,667,680 1,355,841 182,267 444,672 693,752 813,500 6,685 121,624 $ 11,360,724 1,362,487 198,544 449,333 647,927 309,330 $ 12,068,746 1,373,886 211,723 462,988 662,095 175,342 (818,115) 7,190 13,305,353 14,286,021 13,510,230 14,961,970 (13,461) 63,278 (121,624) (13,461) (58,346) $ 13,291,892 $ 14,227,675 $ 4,184, 345 (326,783) $ 3,857,562 $ 2,871,181 (494,461) $ 2,376,720 $ 2,613,149 $ 691,900 (608,363) (192,116) $ 2,004,786 $ 499,784 127 35,821 22,177 818,115 (7,190) 853,936 14,987 $ 14,364,166 $ 14,976,957 $ (426,411) $ (5,000,037) 1,091,266 (256,935) $ 664,855 $ (5,256,972) CITY OF STILLWATER, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) General Fund Reserved Unreserved Nonspendable Assigned Unassigned Total general fund All Other Governmental Funds Reserved reported in: Special revenue funds Debt service funds Unreserved reported in: Special revenue funds Capital project funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds Fiscal Year 2007 2008 2009 2010 $ 87,502 $ 95,577 $ 101,597 $ 101,597 3,68Z955 3,450,524 4,119,597 4,119,597 $ 3,770,457 $ 3,546,101 $ 4,221,194 $ 4,221,194 $ 12,010 $ 52,326 5,739,233 5,610,318 2,217,335 12,164,582 $ 20,133,160 2,256,907 17,951,334 $ 12,014 11,484,916 2,361,837 14,111,439 $ 25,870,885 $ 27,970,206 $ 12,014 11,484,916 2,361,837 14,111,439 $ 27,970,206 Note: Beginning with fiscal year 2011, the City of Stillwater implemented (prospectively) GASB 54 which redefined fund balance reporting. 128 Fiscal Year 2011 2012 $ 103,141 952,367 3,112,690 $ 4,168,198 $ 13,070 17,103,718 1,474,010 3,347,961 107,485 1,068,175 3,086,290 $ 4,261,950 $ 14,645 21,606,729 1,914,102 1,975,186 $ 21,938,759 $ 25,510,662 2013 $ 118,411 1,053,449 3,009,787 $ 4,181,647 $ 14,469 21,057,191 2,082,960 2,125,283 $ 25,279,903 2014 $ 148,651 1,106,624 3,008,334 $ 4,263,609 $ 15,814 26,638,434 2,548,082 2,101,718 (4,228) $ 31,299,820 129 2015 $ 148,686 1,243,101 3,033,213 $ 4,425,000 $ 17,320 18,838,078 3,042,469 2,404,725 $ 24,302,592 2016 $ 81,749 1,243,101 3,127,595 $ 4,452,445 $ 25,912 27,996,173 3,438,415 2,942,937 $ 34,403,437 CITY OF STILLWATER, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Revenues Taxes: Property taxes Tax increment Lodging tax Franchise taxes Licenses and permits Special assessments Intergovernmental Charges for services Fines and forfeits Interest Donations Miscellaneous Total revenues Expenditures General government Public safety Public works Culture and recreation Economic development Capital outlay Debt Service Principal Interest Other Total expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses) Proceeds from borrowing, net Transfers in Transfer (out) Capital lease Sale of property Payment on refunded debt Insurance settlement Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year 2007 2008 $ 8,996,387 2,655,638 423,938 603,556 904,319 1,802,669 5,217,577 138,197 940,429 576,861 232,623 22,492,194 $ 9,535,481 2,870,258 127,867 426,688 552,687 899,701 935,220 2,889,732 152,192 958,702 283,419 250,503 19,882,450 2009 $ 9,646,261 3,046,960 137,387 426,754 435,128 882,732 1,450,439 2,787,660 226,852 460,295 195,183 336,651 20,032,302 2010 $ 9,689,084 3,033,542 139,026 425,617 406,553 1,144,498 1,338,010 3,845,833 140,550 264,358 102,978 332,728 20,862,777 2,718,798 2,869,798 2,480,618 2,622,089 3,802,242 4,123,587 3,964,424 3,848,968 1,625,512 1,482,455 1,285,715 1,401,869 2,912,305 3,242,022 3,193,529 3,096,534 1,094,296 1,096,128 456,996 996,174 4,239,574 3,512,082 8,417,419 4,001,559 3,835,000 3,719,000 3,385,000 3,489,247 1,181, 782 1,111,621 1,286,753 1,251, 356 44,292 173,080 188,294 18,956 21,453,801 21,329,773 24,658,748 20,726,752 1,038,393 (1,447,323) (4,626,446) 136,025 1,297,256 4,348,446 (4,132, 342) 33,677 1,547,037 $ 2,585,430 32.9% 130 6,821,202 4,322,239 (4,259,739) 76,690 6,960,392 $ 5,513,069 82.6% 8,189,631 4,039,187 (3,951,815) 51,324 122,533 (1,050,000) 7,400,860 $ 2,774,414 23.8% 3,342,910 (3,342,910) 67,371 (5,405,000) (5,337,629) $ (5,201,604) 28.1% Fiscal Year 2011 $ 9,864,955 3,165,218 144,891 431,579 474,747 1,032,357 1,427,025 2,510,703 120,995 183,157 62,679 355,066 19,773,372 2,825,628 4,150,102 1,338,101 3,180,832 1,185,131 2,903,477 4,389,731 952,508 13,131 20,938,641 (1,165,269) 2,989,830 (2,751,275) 43,875 282,430 2012 $10,225,830 2,224,672 151,249 437,774 408,540 1,022,849 803,977 2,406,608 141,271 134,072 183,244 537,484 18,677,570 2,774,609 4,137,468 1,364,571 2,961,505 970,495 5,338,735 2,990,238 818,860 136,557 21,493,038 (2,815,468) 6,505,582 2,826,774 (2,932,961) 81,728 2013 $ 10,514,800 2,334,508 169,283 441,958 412,498 972,560 2,041,027 3,870,905 114,194 (486,298) 40,292 431,798 20,857,525 2014 $ 10,710,930 1,328,951 182,266 444,672 476,572 895,715 1,701,663 2,440,925 119,114 794,042 92,739 514,189 19,701,778 2015 $ 11,367,534 1,370,469 198,544 449,333 574,860 924,432 1,410,519 2,283,432 118,113 212,404 96,269 500,443 19,506,352 2016 $ 12,100,943 1,372,407 211,723 462,988 502,476 1,274,144 2,038,847 3,555,525 70,256 (116,034) 129,479 1,396,557 22,999,311 3,025,938 3,238,842 3,458,847 3,829,183 4,336,628 4,628,286 4,762,211 5,092,685 1,296,596 1,378,122 1,252,685 1,330,771 3,147,173 3,216,992 3,173,176 3,381,088 1,276,973 1,149,256 997,280 7,045,568 2,768,347 6,086,226 6,125,577 3,350,489 2,803,835 2,595,773 2,470,000 2,815,000 881,859 726,634 949,558 775,294 40,386 160,234 7,855 410,664 19,577,735 23,180,365 23,197,189 28,030,742 1,279,790 (3,478,587) (3,690,837) 1,167,575 (1,167,575) 24,148 (1,615,000) 9,434,686 1,843,344 (1,721,720) 24,156 (5,031,431) 16,362,531 2,467,988 2,966,121 (2,367,988) (2,958,931) (3,245,000) (1,210,000) 6,481,123 (1,590,852) 9,580,466 (3,145,000) 15,159,721 $ (882,839) $ 3,665,655 $ (311,062) $ 6,101,879 $ (6,835,837) $ 10,128,290 29.6% 29.6% 24.4% 131 20.4% 20.1% 14.5% CITY OF STILLWATER, MINNESOTA ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY, LAST TEN FISCAL YEARS Real Property Personal Property Estimated Estimated Actual Taxable Actual Taxable Payable Market Net Tax Market Net Tax Year Value Capacity (1) Value Capacity 2007 2,020,474,300 22,981,471 10,620,800 212,276 2008 2,112,062,300 24,045,939 10,158,900 203,038 2009 2,121,367,300 24,160,646 9,929,400 198,448 2010 2,061,231,600 23,517,761 9,888,400 197,768 2011 1,935,436,400 22,220,835 10,988,300 218,266 2012 1,797,892,100 20,693,282 11,884,300 234,436 2013 1,655,331,600 19,160,846 12,681,500 250,880 2014 1,657,537,400 19,181,004 12,725,100 251,952 2015 1,898,305,000 21,556,350 12,880,700 255,814 2016 1,992,003,200 22,491,740 13,493,000 268,060 Source: Washington County, Minnesota Assessors' Office Notes: (1) The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the estimated market value of the property. 132 Total Estimated Net Tax Capacity Actual Taxable as a Percentage Market Net Tax Total Direct of Estimated Actual Value Capacity Tax Rate Market Value 2,031,095,100 2,122,221,200 2,131,296,700 2,071,120,000 1,946,424,700 1,809,776,400 1,668,013,100 1,670,262,500 2,002,273,500 2,005,496,200 23,193,747 24,248,977 24,359,094 23,715,529 22,439,101 20,927,718 19,411,726 19,432,956 21,812,164 22,759,800 133 46.498 48.186 47.930 49.493 49.493 54.674 61.503 58.359 54.916 57.016 1.14 1.14 1.14 1.15 1.15 1.16 1.16 1.16 1.09 1.13 CITY OF STILLWATER, MINNESOTA PROPERTY TAX RATES - PER $1,000 OF ASSESSED TAX CAPACITY VALUE (1) DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Overlapping Rates City Direct Rates County Debt Debt Operating Service Total Operating Service Total Tax Tax Tax Tax Tax Tax Payable Capacity Capacity Capacity Capacity Capacity Capacity Year Rate Rate Rate Rate Rate Rate 2007 30.228 16.270 46.498 20.803 2.732 23.535 2008 32.755 15.431 48.186 20.961 2.747 23.708 2009 32.333 15.597 47.930 21.140 2.973 24.113 2010 32.921 16.572 49.493 22.347 3.217 25.564 2011 32.921 16.572 49.493 23.989 3.261 27.250 2012 38.079 16.595 54.674 25.539 3.717 29.256 2013 43.941 17.562 61.503 27.496 3.716 31.212 2014 41.777 16.582 58.359 25.780 4.319 30.099 2015 37.737 17.179 54.916 23.626 3.821 27.447 2016 39.646 17.370 57.016 23.832 3.979 27.811 Source: Washington County, Minnesota Auditor's Office. Notes: (1) Property tax rates (tax capacity rates) are determined by dividing the total tax levy by the tax capacity (assessed value). The tax capacity is calculated by applying a statutory formula to the estimated market value of the property. 134 Overlapping Rates School Other Debt Operating Service Total Total Total Tax Tax Tax Tax Tax Capacity Capacity Capacity Capacity Capacity Rate Rate Rate Rate Rate 9.338 9.666 19.004 8.143 97.180 7.983 9.421 17.404 8.158 97.456 8.881 8.833 17.714 7.617 97.374 10.367 9.367 19.734 8.045 102.836 10.457 9.843 20.300 8.045 105.088 11.643 10.690 22.333 4.419 110.682 11.328 10.690 22.018 4.857 119.590 12.661 10.489 23.150 4.641 116.249 11.183 9.941 21.124 4.183 107.670 15.051 4.798 19.849 4.568 109.244 CITY OF STILLWATER, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS, LAST TEN FISCAL YEARS Collected within the Taxes Levied for the Fiscal Year Fiscal Year of Levy Current Percentage Collections Fiscal Operating Debt Total Tax Tax of in Subsequent Year Tax Levy Tax Levy Levy Collection Levy Years 2007 6,102,192 3,284,439 9,386,631 9,195,239 98.0 169,985 2008 6,775,809 3,192,158 9,967,967 9,532,929 95.6 247,333 2009 6,813,230 3,286,539 10,099,769 9,768,614 96.7 304,248 2010 6,725,032 3,385,158 10,110,190 9,466,734 93.6 204,509 2011 6,943,172 3,215,195 10,158,367 9,494,564 93.5 158,203 2012 7,136,531 3,110,066 10,246,597 10,038,924 98.0 150,353 2013 7,435,010 2,971,497 10,406,507 10,208,530 98.1 152,486 2014 7,606,066 3,018,920 10,624,986 10,498,732 98.8 77,066 2015 7,825,610 3,545,643 11,371,253 11,260,937 99.0 71,716 2016 8,365,422 3,706,945 12,072,367 11,973,407 99.2 Notes: (1) Beginning with payable 2012, the MVHC program was discontinued. 136 Total Collections to Date Total Percentage Tax of Collection Levy 9,365,224 99.8 9,780,262 98.1 10,072,862 99.7 9,671,243 95.7 9,652,767 95.0 10,189,277 99.4 10,361,016 99.6 10,575,798 99.5 11,332,653 99.7 11,973,407 99.2 Abatements to Total Tax Levy 20,326 9,812 24,469 59,134 55,811 47,976 21,784 23,170 5,408 MVHC Collection Unallotment (1) 176,229 376,896 435,787 N/A N/A N/A N/A N/A 137 Outstanding Delinquent Taxes 1,081 1,664 2,438 2,917 14,002 9,344 23,707 26,018 33,192 98,960 Percentage of Levy Outstanding 0.0 % 0.0 0.0 0.0 0.1 0.1 0.2 0.2 0.3 0.8 CITY OF STILLWATER, MINNESOTA PRINCIPAL TAXPAYERS, CURRENT YEAR AND NINE YEARS AGO Taxpayer 2016 2007 Percentage Percentage of Total of Total Net Tax City Tax Net Tax City Tax Capacity Rank Capacity Capacity Rank Capacity Stillwater Health System $ 275,068 1 1.210 Xcel Energy 262,460 2 1.150 Dayton Hudson 170,192 3 0.750 Supervalu Holdings 143,554 4 0.630 Valley Ridge Holding LLC 121,498 5 0.530 Diasorin Inc 114,490 6 0.500 Mikden of Stillwater LLC 101,252 7 0.440 Stillwater MP II LLC 95,250 8 0.420 Gen3 LLC 91,524 9 0.400 Stillwater MP I LLC 81,888 10 0.360 MN Mining & Manufacturing - 0.000 Stillwater Medical Group, PA 0.000 Supervalu Inc 0.000 $ 0.000 % 333,300 1 1.630 256,684 2 1.260 246,339 3 1.210 0.000 177,028 6 0.870 131,560 9 0.650 155,035 7 0.760 0.000 124,319 10 0.610 185,798 4 0.910 177,670 5 0.870 148,262 8 0.730 Total $ 1,457,176 6.390 % $ 1,935,995 9.500 % Source: Washington County, Minnesota Auditor's Office 138 THIS PAGE 1S INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Governmental Activities GO General Government Bonds (1) (2) $ 19,844,000 19,170,000 22,755,000 16,605,000 14,385,000 18,645,000 16,730,000 23,835,000 18,630,000 21,655,000 GO Improvement Bonds (1) (3) $ 4,225,000 3,485,000 3,120,000 2,750,000 2,375,000 2,000,000 GO Revenue Bonds (1) (4) $ 4,100,000 3,765,000 4,835,000 3,090,000 2,695,000 2,390,000 2,075,000 1,755,000 1,420,000 1,065,000 GO Tax Increment Bonds (1) (5) Tax Increment Revenue Capital Bonds (5) Lease $ 2,170,000 $ 7,140,000 6,585,000 6,160,000 4,910,000 4,790,000 4,655,000 4,500,000 4,325,000 6,585,000 6,585,000 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) (2) (3) (4) (5) (6) (7) (8) General obligation debt which is backed by the full faith, credit, and taxing power of the City. General government bonds are to be repaid from general tax levies. Improvement bonds are expected to be repaid primarily from the special assessments to benefitted properties. Revenue bonds are expected to be paid from revenues generated from the project. Tax increment bonds are to be paid from the pledged tax increment revenues. Information not available is labeled N/A. See the Demographic and Economic Statistics schedule on page 146 for personal income and population data. Information not available is labeled N/A. 140 51,324 42,077 32,346 22,108 10,773 Other Long -Term Debt $ 852,500 657,500 462,500 267,500 127,500 42,500 Bond Premium $ 60,199 124,139 307,628 274,810 244,293 357,317 318,125 492,104 445,032 1,185,624 Total Primary Government $ 31,251,699 34,341,639 38,116,452 29,189,387 24,769,139 28,246,925 23,788,898 30, 582,104 24,820,032 37,075,624 Percentage of Personal Per Income (6) (7) (8) Capita (7) (8) 141 27.48 25.15 22.11 29.47 36.68 34.35 41.51 33.26 46.29 N/A $ 1,741 1,883 2,091 1,587 1,340 1,496 1,254 1,612 1,314 1,877 CITY OF STILLWATER, MINNESOTA RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA LAST TEN FISCAL YEARS Net General Bonded Debt Outstanding Gross Less Debt Net Percentage of Fiscal Bonded Service Bonded Estimated Per Year Debt (1) Fund (-2) Debt Market Value (3) Capita (4) 2007 19,904,199 3,431,093 16,473,106 0.8 909.51 2008 19,294,139 3,607,395 15,686,744 0.7 873.77 2009 23,062,628 8,054,476 15,008,152 0.7 823.04 2010 16,879,810 4,002,069 12,877,741 0.7 706.60 2011 14,629,293 3,784,323 10,844,970 0.6 592.65 2012 19,002,317 8,712,238 10,290,079 0.6 552.10 2013 17,048,125 7,481,997 9,566,128 0.6 504.28 2014 24,327,104 4,437,291 19,889,813 1.0 1,052.82 2015 19,075,032 5,938,539 13,136,493 0.7 665.00 2016 22,840,624 10,197,146 12,643,478 0.6 642.03 Notes: (1) Amount does not include debt to be paid from special assessments, tax increments or other revenues. (2) Amount available for repayment of general obligation bonds, as determined in Note (1) above. (3) See Assessed and Estimated Actual Value of Property schedule on page 132 for property value data. (4) See the Demographic and Economic Statistics schedule on page 146 for population data. 142 CITY OF STILLWATER, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2016 Direct: City of Stillwater Overlapping: Washington County School Districts: #834 -Stillwater Washington County HRA Metropolitan Council/Regional Transit Total Overlapping Total Direct and Overlapping Bonded Debt: Debt Outstanding Percentage Applicable to City (2) Net Amount Applicable to City $ 30,362,418 100% $ 30,362,418 164,020,000 (1) 7.4% 12,137,480 136,865,000 (1) 23.8% 32,573,870 55,891,343 (1) 7.4% 4,135,959 1,485,891,649 (1) 9.3% 138,187,923 187,035,232 $ 217,397,650 Notes: (1) Information obtained from Washington County, Minnesota Auditor's office. (2) The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated by determining the portion of each entity's tax capacity that is within the City's boundaries and dividing it by that entity's total tax capacity. 143 CITY OF STILLWATER, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN LAST TEN FISCAL YEARS Estimated Market Value (1) Debt limitation (2) Debt applicable to limit: Total bonded debt Less: GO Improvement bonds Less: GO Revenue bonds Less: GO TIF bonds Less: TIF Revenue bonds Total debt applicable to limitation Legal debt margin Total debt applicable to the limit as a percentage of debt limit 2007 2008 2009 $ 2,050,383,000 $ 41,007,660 31,191,500 (4,225,000) (4,100,000) (2,170,000) 20,696,500 2,152,996,700 43,059,934 34,217,500 (3,485,000) (3,765,000) (7,140,000) 19,827,500 2010 $ 2,152,848,700 $ 2 64,585,461 37, 808, 824 (3,120,000) (4,835,000) (6,585,000) ,071,120,000 62,133,600 28,914,577 (2,750,000) (3,090,000) (6,160,000) 23,268,824 $ 20,311,160 $ 50.47% 16, 914, 577 23,232,434 $ 41,316,637 $ 45,219,023 46.05% 36.03% Note: (1) Information obtained from Washington County, Minnesota Assessor's Office (2) Under Minnesota State Statues , the City of Stillwater's net debt cannot exceed 2 percent of the estimated market value. Beginning in 2008, the percentage that the debt limit can not exceed the estimated market value changed from 2% to 3%. 144 27.22% Fiscal Year 2011 $ 1,951,589,800 58,547,694 24, 524, 846 (2,375,000) (2,695,000) (4,910,000) 14,544,846 2012 $ 1,893,734,000 56,812,020 27,889,608 (2,000,000) (2,390,000) (4,790,000) 18,709,608 2013 2014 2015 2016 $ 1,772,578,900 $ 1,774,367,400 $ 2,002,273,500 $ 2,093,975,600 53,177,367 23,470,773 (2,075,000) (4,655,000) 16,740,773 53,231,022 30,090,000 (1,755,000) (4,500,000) 23,835,000 60,068,205 24,375,000 (1,065,000) (6,585,000) 62,819,268 35,890,000 (1,065,000) (6,585,000) (6,585,000) 16,725,000 21,655,000 $ 44,002,848 $ 38,102,412 $ 36,436,594 $ 29,396,022 $ 43,343,205 $ 41,164,268 24.84% 32.93% 31.48% 44.78% 27.84% 34.47% 145 CITY OF STILLWATER, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS City of Stillwater Washington County Personal Personal Per Capita Unemployment Fiscal Population Income Income Income Percentage Year (1) (2) (6) (2) (3) (5) (3) (5) (4) 2007 18,112 858,943 $ 10,736,049 $ 47,424 4.1 2008 17,953 863,862 11,200,728 48,118 5.4 2009 18,235 842,603 10,776,352 46,208 7.4 2010 18,225 860,220 11,240,061 47,200 6.7 2011 18,299 908,619 11,948,856 49,654 6.3 2012 18,638 970,257 12,657,651 52,058 4.9 2013 18,970 987,578 12,838,180 52,060 4.9 2014 18,892 1,017,013 13,419,583 53,833 3.6 2015 19,754 1,148,952 14,633,536 58,163 3.7 2016 19,693 NA N/A NA 3.6 Notes: (1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census. (2) Thousand of dollars. (3) Information from State Demographers Office (Bureau of Economic Analysis Report). (4) Information from Jobs Training Research Statistics Department. (5) Information not available is labeled N/A. (6) The estimated personal income for the City of Stillwater is calculated by taking the per capita income of Washington County and multiplying it by the City's population. The per capita personal income used is for that of Washington County, in which the City resides, the smallest region applicable to the City that this information is available for. 146 CITY OF STILLWATER, MINNESOTA PRINCIPAL EMPLOYERS, CURRENT YEAR AND NINE YEARS AGO Employer 2016 2007 Percentage Percentage of Total City of Total City Employees Rank Employment Employees Rank Employment County of Washington 1,234 1 26.2% 970 1 20.7% Stillwater Public Schools 1,066 2 22.7% 920 2 19.7% Lakeview Memorial Hospital 836 3 17.8% 457 5 9.8% Diasorin 340 4 7.2% 250 7 5.4% St Croix Boat & Packet 300 5 6.4% Stillwater Medical Group 288 6 6.1% Target 200 7 4.3% 197 8 4.2% Cub Foods 150 8 3.2% 550 4 11.8% Herbergers 145 9 3.1% City of Stillwater 141 10 3.0% 144 9 3.1% UFE, Inc. 0.0% 800 3 17.1% Desing Fabricated Parts 0.0% 330 6 7.1% WR Medical Electronics 0.0% 50 10 1.1% Total 4,700 100.0% 4668 Source: Minnesota Department of Employment and Economic Development 147 100.0% CITY OF STILLWATER, MINNESOTA FULL TIME EQUIVALENTS CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS FUNCTION/PROGRAM 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Government MIS 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 2.80 2.80 Finance 4.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.70 3.70 Administration 4.90 3.90 3.90 3.45 3.45 3.45 3.40 3.40 3.70 3.70 Legal/City Attorney 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Plant/City Hall 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Community Development 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Public Safety Police 25.50 25.50 22.75 22.75 22.75 23.75 23.75 24.75 24.75 25.00 Fire 9.50 9.50 8.25 8.25 8.25 9.25 11.25 11.25 11.25 11.50 Inspections 2.50 2.50 2.50 2.50 2.50 2.50 2.50 3.00 3.00 3.00 Public Works Engineering 4.10 3.85 3.35 3.35 3.35 2.85 2.75 2.75 2.75 2.75 Streets 9.55 7.00 6.75 6.75 6.75 6.75 6.75 6.50 6.75 6.75 Culture & Recreations Library 11.20 10.45 10.95 11.20 11.20 11.70 11.70 11.70 12.35 13.23 Parks 7.50 7.50 7.25 7.25 6.25 6.25 6.25 6.25 6.25 6.25 Sanitary Sewer 3.95 3.95 3.95 3.95 3.95 3.70 3.95 3.20 3.95 3.95 Storm Sewer 1.15 2.95 2.95 2.95 2.95 1.70 2.85 2.85 2.85 2.85 Signs & Lighting 1.25 1.25 1.25 1.25 1.25 1.25 0.95 0.95 0.95 0.95 Parking 1.10 1.10 1.10 1.05 1.05 1.05 1.10 1.10 1.10 1.10 Total 92.00 88.25 83.75 83.50 82.50 83.00 86.00 86.50 89.65 91.03 Source: City Finance Department 148 CITY OF STILLWATER, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 7 9 9 9 9 10 10 13 13 13 Fire Stations 1 1 1 1 1 1 1 1 1 1 Fire Trucks 8 8 9 10 10 12 13 13 13 13 Fire Boat N/A N/A N/A N/A N/A N/A 1 1 1 1 Rescue Dispatch N/A N/A N/A 1 1 1 1 1 1 1 Special Ops Trailer N/A N/A 1 1 1 1 1 1 1 1 Public Works Lights 2,450 2,450 1,415 1,356 1,356 1,356 1,331 1330 1,332 1337 Vehicles 32 29 29 30 30 30 31 32 30 28 Streets (miles) 84.70 84.82 89.70 89.70 89.70 89.70 89.70 90.24 91.28 91.3 Sidewalks (miles) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Culture & Recreation St Croix Valley Recreation Center Sheets of Ice 3 3 3 3 3 3 3 3 3 3 Field House 1 1 1 1 1 1 1 1 3 3 Library Building 1 1 1 1 1 1 1 1 1 1 Parks Parks 32 32 34 34 34 34 34 34 36 36 Internal Trails 11 11 14.8 19 19.2 19.2 19.2 19.2 19.8 20 Paved Trails N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Natural Trails N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Park Acres 540 570 570 576 576 576 576 576 583 583 Park Shelters 22 23 23 30 30 30 30 30 28 28 Basketball Courts 6 6 6 5 5 5 3 3 5 5 Boat Launches 1 1 1 1 1 1 1 2 2 2 Fishing Pier 1 1 1 1 1 1 1 1 1 1 Horseshoe Courts 11 11 11 11 11 11 11 11 11 11 Skating Rinks 7 7 7 8 9 12 12 11 7 7 Soccer Fields 5 6 6 7 7 7 7 7 13 13 Softball Fields 10 10 11 13 13 12 12 12 6 6 Swimming Beach 1 1 1 1 1 1 1 1 0 0 Tennis Courts 12 12 12 12 12 11 11 11 11 11 Volleyball Courts 5 5 5 4 4 4 4 4 4 4 Bathroon Facilities 3 3 4 5 6 6 6 6 7 7 Sanitary Sewer Collection System (miles) Sewer Connections Lift Stations Storm Sewer Pipe (miles) 87.65 87.65 87.65 87.85 88.06 88.22 89.13 89.13 89.13 89.13 6,130 5,930 5,971 6,289 6,344 6,380 6,414 6,466 6,495 6,495 13 13 13 13 13 13 13 13 13 13 72.00 77.80 80.80 78.30 78.50 78.65 79.61 79.61 79.61 79.61 Parking Paylots/Permit Parking 9 9 9 9 9 9 9 9 9 9 Parking Ramp 0 0 0 1 1 1 1 1 1 1 Source: Various City Departments 149 CITY OF STILLWATER, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year Function/Program 2007 2008 2009 2010 2011 General Government Elections Registerd voters Number of votes cast Voter participation (registered) 2 - 2 13,373 12,607 10,983 - 8,802 0.0% 0.82 0,0% 0.70 0.0% Public Safety Police PartlOffenses 511 637 737 844 732 Part II Offenses 1,405 1,452 1,089 1,314 997 Part III, IV & V Offenses 10,336 10,591 8,990 9,173 8,050 Traffic Violations 3,554 2,894 2,884 2,406 2,236 Fire Medical 806 778 656 788 749 Fire 43 39 55 76 74 False Alarm 122 126 95 157 136 Inspections 115 490 455 526 514 Other Services 190 147 213 280 204 Miscellaneous N/A N/A N/A 285 220 Inspections Building Permits 1,014 1,329 1,126 1,086 1,206 Inspections 2,582 3,389 2,868 2,758 3,152 Value of Buidling Permits $73,127,457 $31,154,918 $38,071,294 $24,610,152 $32,152,097 Public Works General Maintenance (hours) 16,157 14,344 13,130 13,407 12,641 Trash Pickup (hours) 2,823 2,022 1,876 1,856 1,579 Snow Removal (hours) 4,323 3,855 5,374 5,189 3,516 New Construction (hours) 851 196 204 119 198 Culture and Recreation St Croix Valley Recreation Center Recreation Center - (hours) 4,415 5,082 3,989 3,386 4,637 Fieldhouse -(hours) 1,124 1,187 1,185 2,102 1,048 Lily Lake - (hours) 1,166 1,669 1,052 1,277 1,436 Recreation Maintenance (hours) 5,142 6,610 7,761 6,995 6,955 Library Collection Size 98,980 98,160 99,341 96,536 99,985 Circulation (checked out) 350,022 334,989 344,948 333,260 322,441 Internet Sessions N/A N/A N/A N/A 32,485 Program Attendance N/A N/A N/A N/A 5,383 Parks Park Reservations 205 232 232 242 247 Park Maintenance (hours) 8,078 8,069 7,916 5,784 5,564 Sanitary Sewer Sewer Work (hours) 3,640 3,194 3,499 2,894 2,760 Parking Monthly Parking Permits Source: Various City Departments Notes: Information not available is labeled N/A. 4,017 3,633 3,300 150 2,890 3,744 Fiscal Year 2012 2013 2014 2015 2016 2 2 - 2 13,650 12,284 13,829 11,232 8,107 11,814 0.82 0.0% 0.61 0.0% 0.85 706 632 492 533 460 975 801 785 1,106 1,054 8,146 8,314 8,503 8,656 9,255 1,971 2,219 2,908 2,294 2,022 1,052 1,118 1,138 1,266 1,354 60 50 45 82 45 125 135 151 133 155 531 545 509 149 295 212 151 209 170 128 305 247 272 187 144 1,055 1,105 1,230 1,504 1,233 2,839 2,748 3,060 3,075 2,921 $24,359,462 $21,252,468 $37,808,545 $42,679,109 $33,610,517 17,986 12,827 12,571 16,450 14,318 1,742 1,641 1,525 1,795 2,260 2,361 5,943 4,568 2,154 2,704 1,133 497 661 474 252 3,002 2,900 3,487 3,197 4,788 961 1,295 1,438 1,434 982 1,283 1,188 926 915 1,239 6,427 6,132 6,619 6,168 6,019 106,804 106,162 101,882 102,089 91,140 313,193 327,482 325,920 320,921 324,370 27,949 23,734 20,391 25,064 24,364 5,933 6,260 7,441 8,737 9,029 232 246 235 215 240 6,798 5,666 5,586 9,078 8,765 1,330 2,702 1,268 2,723 2,624 3,239 3,262 3,984 6,150 5,783 151 OTHER REPORTS SECTION CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and Members of the City Council City of Stillwater Stillwater, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Stillwater, Minnesota (the City) as of December 31, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents and have issued our report thereon dated June 21, 2017. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat §6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above -referenced provisions. The purpose of this report is solely to describe the scope of our testing related to the provisions of the Minnesota Legal Compliance Guide for Cities and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Minneapolis, Minnesota June 21, 2017 A member of Nexia International 155 ea EXHIBIT "A" TO RESOLUTION #2017-145 Page 1 LIST OF BILLS A-1 Hydraulic Sales & Service Action Rental Inc. Advance Auto Parts Amsterdam Aspen Mills Brines Market Bryan Rock Products Inc. Cates Fine Homes LLC Century Link Church of St Michael Comcast Coverall of the Twin Cities ECM Publishers Egger Alison Emergency Apparatus Maintenance Fastenal Company Flexible Pipe Tool Co. Fury Stillwater Galls LLC Hardrives Inc. Haussner Plumbing LLC Heritage Printing Inc. Kirvida Fire Inc. Manos Nancy Mansfield Oil Company Menards Metropolitan Mechanical Contractors MidAmerica Tech Services Middle St Croix Watershed WMO Municode Newman Signs Office Depot OnSite Sanitation Performance Plus LLC Quill Corporation Rehn Code Consulting RES Specialty Pyrotechnics Inc. Simplifile LC SRF Consulting Group Stillwater Glass Inc. Stillwater Motor Company Stillwater Towing Stillwater Turf & Power LLC Streichers Summer Tuesdays Inc Equipment repair Mixing trailer and concrete Supplies Pens Uniforms Meals Field maintenance supplies Repair water damage Telephone Park Fee Refund Internet Commercial Cleaning Services Publications Reimburse for mileage & parking Vehicle maintenance Equipment repair supplies Repair hose Vehicle Repairs Uniforms 2017 Street Project Replace lawn faucet City Hall Payroll check paper Vehicle maintenance Reimburse for coffee Fuel Supplies Maintenance agreement Waste Processing Watershed Management payment Ordinance pages Road closed signs Office supplies Portable restroom rental Drug screen Paper Plan Review Fireworks Recording fees Downtown Plan Update Glass replacement Vehicle repair Towing service Equipment repair Supplies Refund returned ramp vouchers 231.24 420.00 25.74 637.18 1,645.46 315.70 47.91 1,895.61 42.01 125.00 214.90 2,312.00 464.31 74.92 2,791.75 189.51 110.50 784.87 135.80 486,236.86 530.00 405.44 2,493.35 13.98 4,693.22 340.37 2,162.00 2,314.14 41,074.85 158.40 519.74 723.81 150.00 90.00 324.90 622.79 46,000.00 250.00 12,654.66 310.49 360.25 150.00 167.90 61.98 508.50 EXHIBIT "A" TO RESOLUTION #2017-145 Page 2 T.A. Schifsky and Sons Themed Concepts USAble Life Valley Trophy Inc. Verizon Wireless Walmart Community Wenck Construction Winnick Supply Woodchuck Tree Care LLC CREDIT CARDS Amazon American Planning Assoc Backgroundchecks.com BCA Training Ebay Mister Car Wash MN Trucking Assoc Wolf Marine REC CENTER Abbott Paint Advance Auto Parts AT&T Mobility Comcast Ice Skating Institute Menards Pepsi Beverages Company Riedell Shoes Inc. St. Croix Boat and Packet Co. LIBRARY Advantage Computer Systems Baker and Taylor Barnhouse Office LLC Brechon Melissa J. Breeze Communication Arts Brodart Co Card Source Cole Papers ECM Publishers Holm Christopher Infogroup Midwest Tape Aggregate Repairs at Teddy Bear Park Term Life Insurance Human Rights Commission award Wireless Service Gift cards Police Project Equipment repair supplies Tree removal Supplies Membership Background checks Training Equipment Car Washes Training Boat fuel Supplies Supplies Cell phone TV Internet & Voice Skater memberships Equipment repair supplies Beverages for concessions Skates Arena Billing Hearing Loops Materials Teen Room Interim Director - July Programs - Adult (SPLF) Materials Patron Cards Janitorial Supplies Notice of Special Mtg of Bd Programs - Adult Materials Materials 1,305.20 790.00 444.00 8.00 2,245.68 100.00 34,818.95 44.42 1,300.00 207.39 295.00 656.55 150.00 91.99 27.00 90.00 125.01 54.58 9.97 64.62 373.83 403.00 1,316.21 434.00 155.89 31,317.19 11,495.00 718.35 525.00 7,000.00 1,400.00 2,403.08 645.00 386.45 14.07 400.00 390.00 285.95 EXHIBIT "A" TO RESOLUTION #2017-145 Page 3 Office of MN IT Services Sorenson Beth Toshiba Business Solutions Washington County Library Williams Tyler LIBRARY CREDIT CARDS Al Hauling and Rolloffs Alfresco Casual Living Amazon.com Eventbrite Games By James Gertens Wholesale Lift Bridge Brewing Co River Market Co -Op Rose Floral Valley Bookseller Washington County Public Works Waterdog Records LLC JULY MANUALS Century Link Postmaster Rainbow Corral Critters Phone Travel Reimbursement Maintenance Contract Processing Fees Travel Reimbursement Building Reconfiguration Programs - Adult (SRP Prize - SPLF) Materials - Adult Nonfiction Board Chair Training (6/20/17) Puzzles for Friends Area Reading Area Reconfiguration - Plants Programs - Adult (SRP Prize - SPLF) Programs - Adult (SRP Prize - SPLF) Programs - Adult (SRP Prize - SPLF) Programs - Adult (SRP Prize - SPLF) Materials - Reference Materials - Juv Audio Telephone UB Postage Petting zoo for nite to unite 379.71 247.17 270.13 349.92 617.07 354.00 40.00 49.71 115.00 16.06 299.89 30.00 30.00 30.00 40.00 74.00 165.00 314.29 2,818.11 575.00 Alcohol & Gambling EMiircamBet Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division 445 Minnesota Street, Suite 222, St. Paul, MN 55101 651-201-7500 Fax 651-297-5259 TTY 651-282-6555 APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE Name of organization 1 TIM LO sol C. Address 2/7;—",4:1W41:44 Name of person making appication Date anixed Tax exempt number 2o14 (N fo 3241240'4 W. State rip Code 1 srlt,t,o v, I sso$z. Business phone Home phone f4. 6513o31 C 7 fleets) °fevent I • J2...-}.2 7 Organiration Awes name Organization GRIP% name 1 WI I Cwt, . Sod, eek / Organization officers name Type of organization 1 ri Cha, r Charitable r Re&gious Other non-profit City State Tp Cede I �rlL1.lnl.11-Test I. V Atir 11 6 b$2 City stage Zip Code 1 Srr`r.4rere_ L1N I Utz. 1ritt&A/n4aLtAil Organization officer's name CRy City State ZipCode ne Location where permit wit be used. Man outdoor area, describe. PW toc1 LAI A-; Ctior,ua 1 ticepsr of W On T 2e -7, seurl-r LmAnac-PAI4k lithe applicant wi& contract for intoxicating liquor service give the name and address of the liquor &cense providing the service. If the applicant will carry &quer liability insurance please provide the carrier's name and amount of coverage. I' -L 1 Pu A-pce / 114.1N ol3E C cry ` l J$ Ai /lam, 6z APPROVAL APPUCAT1ON MUST BE AMMO BY QTY OR COUNTY BEFORE SLIBIAITTNG TO ALCOHOL AND GAMBLaIG EliFCBCFJAPIT Sr laDate Approved AY County apppving+ Fee Amount Date fee Paid Permit Late City or Coity Email Address City or Canty Phone Number Signature Crty Clerk or County Oficial Approved Director Alcohol and Garbing Enforcement CLERKS NOTICE Submit this Form to Akohol and Gambling Enforcement Division 30 days prior to event ONE SUBMISSION PER EMAIL, APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITYICOUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY CITY/COUNT Y TOAGLTE.MPORARYAPPUCAT1{NVaSTATE.MN US i1Iwater Administration DATE: 7/28/2017 TO: Mayor & City Council FROM: Diane Ward, City Clerk RE: 2017 Rivertown Fall Art Festival As you are aware, in the past the Greater Stillwater Area Chamber of Commerce conducted two art fairs (Spring & Fall). The Chamber is now only hosting one art fair per year and has merged the two names which is now called the Rivertown Fall Art Festival. Therefore they have made application for a Special Event Permit to host the 2017 Rivertown Fall Art Festival from October 7-8. The request includes a beer tent, therefore a temporary liquor license is required (attached) and would require police services. The vendors would set up their booths beginning at 9 a.m. on Friday, October 6th. The festival would be open to the public on Saturday, October 7th, 10 a.m. to 5 p.m.; the beer tent, food vendors and music will remain open until 8:00 p.m. (artists booths close at 5:00 pm.) and Sunday, October 8th, 11 a.m. - 5 p.m. Tear down would occur from 5 - 8 p.m. Sunday evening. The Chamber is requesting the use of Lots 5 & 9 for Vendors and Lot 11 for Vendor parking. The cost for the spaces will be $405.00, as recommended by the Downtown Parking Commission. Any charges for this event will be invoiced according the City's Fee Schedule. RECOMMENDATION: Staff recommends the event, contract and temporary liquor license be approved. ACTION REQUIRED: Review the event, parking lots request, temporary liquor license and contract and if Council concurs with staff, they should approve the event, contract and temporary liquor license by passing a motion adopting a resolution entitled "Approving the 2017 Rivertown Fall Art Festival Special Event, Contract and Temporary Liquor License". RESOLUTION 2017-147 APPROVING THE 2017 RIVERTOWN FALL ART FESTIVAL SPECIAL EVENT, CONTRACT AND TEMPORARY LIQUOR LICENSE BE IT RESOLVED, by the City Council of Stillwater, State of Minnesota, that the Special Event and Contract for the 2017 Rivertown Art Festival and associated temporary liquor license, as on file with the City Clerk are hereby approved; and BE IT FURTHER RESOLVED, that the Stillwater City Council authorizes the Mayor and City Clerk to sign the contract on the City's behalf. Adopted by the City Council of the City of Stillwater this 2nd day of August, 2017. Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk 2017 RIVERTOWN FALL ART FESTIVAL THIS AGREEMENT is made this 2nd day of August, 2017 between the CITY OF STILLWATER, Washington County, Minnesota ("City), and GREATER STILLWATER AREA CHAMBER OF COMMERCE, a Minnesota non-profit corporation, ("Organizer") WHEREAS, in light of the foregoing, the Organizer wishes and the City will permit the Greater Stillwater Area Chamber of Commerce to organize and conduct a Rivertown Fall Art Festival in order to foster and promote tourism within the City of Stillwater and the St. Croix Valley and encourage commerce within the City that will ultimately increase property values and the quality of life within the City, thereby promoting the welfare of the City; NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein, the City and the Organizer agree as follows: 1. Dates and Hours of Event. Operations are limited as follows: Setup: Friday, October 6 - 9:00 a.m. - 9:00 p.m. Event: Saturday, October 7 - 10:00 a.m. - 5:00 p.m. Beer Tent, Vendors and Music 10:00 a.m. to 8:00 p.m. Sunday, October 8 - 11:00 a.m. - 5:00 p.m. Beer Tent, Vendors and Music 11:00 a.m. to 5:00 p.m. Cleanup: Sunday, October 8 - 5:00 p.m. - 8:00 p.m. 2. Event/Alcohol. The Organization has been granted authority to dispense intoxicating Liquor at the 2017 Rivertown Fall Art Festival. It is the purpose of this Agreement to set forth the terms and conditions that will control the dispensing of Liquor at the Event. a. The Organizer. (CHAMBER) has been granted conceptual authority to dispense intoxicating liquor (Wine and Strong Beer Only) at the 2017 Rivertown Fall Art Festival. This approval is subject to the Organizer applying for and being granted a Temporary Liquor License and Consumption Permit as allowed by the Stillwater City Code and State Law. All Licenses must be approved and proof of Liquor Liability Insurance Coverage must be submitted to the City Clerk by September 1, 2017. This Agreement will set forth the terms and conditions that will control the dispensing of Liquor at the Event. b. The Area. The area where dispensing will be permitted is the area by the Organizer described as "Beer Tent" on the site map as submitted and approved by the City (the Area). c. Fencing. For the purposes of a Beer Garden, bicycle fencing is required. A breach of the fence is grounds for the Police Chief to terminate all alcohol sales in the tent. The adequacy of exiting in the fence must comply with the Minnesota Fire Code as administered by the City Fire Chief. d. Exits. For the purpose of this plan, all Entry/Exit gates to the park must be controlled by security personnel while alcohol is being served. At each of these entry/exit points, a paid professional security guard must be in place to insure that no beer or Liquor enter or leave the Beer Tent. e. Signage. Signage will be prominently displayed at each entry/exit point to notify guests that no Liquor/beer will be allowed in Lowell Park. f. Identification Bracelets. The Organizer will provide at no charge liquor identification bracelets at location(s) as required by Public Safety Staff. The Organizer will permit no one to consume Liquor unless they are wearing an identification bracelet. The Organizer will be responsible for the issuance of bracelets and that the bracelets are given only to those who are legally entitled to consume Liquor. No Other Alcohol or Coolers. No Liquor is allowed in the Park except that Liquor which is sold by the Organizer. The Organizer is responsible to see that no other Liquor is brought into the Area. Bottles, containers or coolers brought into the Area, are subject to search. h. Compliance Program. Prior to September 1, 2017 the Organizer must develop a complete management policy or program regarding all aspects of alcohol compliance, including the problem of the under -aged consumer, sales after hours, sales off the premises in open containers, over -serving and the recognition of false identification. The City Police Chief must approve the policy before implementation. The Organizer must train all alcohol servers with regard to the policy, including instruction by a professional recognized in the area of alcohol awareness before the opening date of the Event. i. Compliance Inspection. The Organizer acknowledges that as a liquor license holder for the Event, it is subject to Stillwater City Code §43-8, which authorizes that all premises from which intoxicating Liquor is offered at on -sale, are subject to inspection for alcohol compliance by any police officer, health officer, or other designated officer or employee of the City during all hours the beer tent is open for the serving of alcohol. 3. Insurance. Hold Harmless. and Indemnity. The Organizer agrees to indemnify and hold harmless the City with regard to any claims, causes of action or demands that might be brought against the City arising out of the events authorized by this Agreement, except for those claims, causes of action or demands that arise out of the sole negligence, gross negligence and/or willful misconduct of the City or any of its agents or employees. Organizer also agrees to provide to the City evidence of insurance coverage of at least the statutory liability limits for municipalities covering claims that might be brought against the Organizer that arise out of the events authorized by this Agreement and to name the City as an additional insured on their policy "as their interest may appear." Insurance Certificate must be received by the City no later than. g. The insurance protection will have the following limits: A. $1,500,000 for any number of claims arising out of a single occurrence, and to name the city as an additional insured "as their interests may appear." B. Comprehensive Automobile Liability: (1) Bodily Injury: $500,000 Each Person and $1,000,000 Each Occurrence (2) Property Damage: $100,000 Each Occurrence C. Worker's Compensation Coverage. 4. Contact Information. Organizer shall provide the City updated accurate contact phone numbers. 5. Public Safety Requirements. The organizer agrees that City has the right to increase the requirements to public safety resources based on participant numbers, threats, or weather conditions and any associated City costs will be paid for by the Organizer. 6. Required Information, Meetings, and Documentation. Organizer agrees that failure to provide required information and documents to the City is just cause for the City Council to terminate the agreement. 7. Noise Control. The Organizer is responsible to control the noise emanating from the Area at a level that will not interfere with the peace and repose of the residential area on the bluffs on the north, west and south edges of the downtown. 8. Police Power. With regard to Event, the City reserves the right to order a shutdown of the Area in the event the Chief of Police determines, in his sole discretion, that the public safety is threatened or any condition of this Agreement is violated. In that event, the Organizer will cease dispensing Liquor and must assist the police in the clearing of the Area. 9. Other Agencies. Organizer is responsible for obtaining all agreements and permits with outside agencies (i.e. Washington County Public Health & Environment, State Electrical Inspector) 10. Exclusive Use of Parks. In return for the exclusive use of the City Parks as identified on the approved overall site plan and/or Event Maps, the Organizer hereby agrees to the following: a. Payment for Use of Parks. Payment for the use of Park(s) will be determined per the City's fee schedule. b. Damage Deposit. The Organizer will pay a damage deposit of $750 to be paid at the signing of this Agreement the Park (s). The damage deposit of $750 will be refunded no later than 30 days after event, in whole or in part, if not needed to repair damage, as determined by the City of Stillwater Public Works Director. c. Dumpsters. The Organizer must furnish dumpsters or roll-off boxes according to a plan approved by Public Works Staff in sufficient quantity to contain the accumulation of trash generated by the Event. Organizer must ensure that all trash or garbage is collected and hauled away daily in the Event areas. i. Dumpsters and trash receptacles in the Event Areas must be picked up and empty each day during the Event. The City may amend the plan and require additional dumpsters or trash receptacles if the need arises. ii. If possible, Organizer will provide recycling and organics containers for the Event. d. Traffic Control. To ensure traffic and pedestrian control the Organizer must place standard reflective barricades according to a plan approved by the Public Works Director or his designee. Barricades may be supplied by the Organizer, or by the City. Charges for the City supply of barricades are set forth in the current City Fee Schedule. e. Electricity and City Water. Existing electrical boxes will be opened by the City and access allowed according to the current City Fee Schedule. If access to water main or hydrants is required, the Organizer must make arrangements with the Board of Water Commissioners and must pay related Water fees. f. Restrooms. The Organizer must furnish portable restrooms to facilitate expected crowds in a number approved by Public Works. Additional portable restrooms must be provided by the Organizer if deemed necessary to protect public health as determined by the Event Coordinator. City Public Restrooms on the Pedestrian Walkway will remain open during the Event and the City will supply and equip restrooms, however, the Organizer will be responsible for maintaining, cleaning, staffing and security and supervision for restrooms. If the Organizer elects not to provide these services it must notify the City at least two weeks prior to the event, and in that event, the Organizer will bear the City costs associated with this work. Irrigation System in Park Property. Lowell Park is maintained by a buried irrigation system. This system is easily damaged by stakes or posts that are driven into the ground or by equipment and vehicles running over irrigation heads. For that reason, stakes or posts longer than 12 inches and more than a quarter inch in diameter may not be used in the Park. Organizer must work with the City Public Works Department to determine the location of the irrigation system. h. Grey Water. The Organizer agrees to ensure that all vendors' waste water be discharged into a holding tank approved by Washington County Public Health & Environment. Vendors without an approved holding tank must discharge into grey water barrels provided by the Organizer. Disposal costs are the responsibility of the Organizer. Grey water barrels or holding tanks shall not be disposed into the City's sanitary or storm sewers, for any reason. i. Use of City Parking Lots. The Organizer will be using Lots 5, 9, 11 for Food Vendors and Vendor parking. THERE IS ABSOLUTELY NO STAKING INTO PARKING LOTS. Organizer will be responsible for any damage. Payment for the Parking Lot(s) and/or on -street parking spaces will be according to the City's Fee Schedule or the Downtown Parking Commission's recommendation. The City prefers the Organizer to stage the activities in Lowell Park rather than in public parking lots. If Lowell Park is not flooded and is not recovering from flood waters, then it should be the primary event venue. Use of public parking lots will be approved only as an alternate or if sufficient space does not exist in the Park to accommodate all event activities. If in the opinion of the City, public parking lots will be needed, then the preferred lots for use would be Lots 4, 5, 9,10 and 11, upon City approval. These lots will be available to the Organizer exclusively from Friday AM until Monday AM of the Event weekend. g. 11. Rules for Vendors. Food Vendors. All food vendors must be inspected and approved by Washington County Public Health & Environment and the Stillwater Fire Department and the State Electrical Inspector prior to beginning operation. Inspection costs (if any) shall be paid for by the Event Organizer directly to the agency/person doing the inspection. k. The Organizer must provide a complete list of all vendors to each of these agencies at least two weeks prior to the event. 1. No Camping. No camping in tents, trailers or campers is allowed in the Downtown during the events. 12. Damage to Parks, Paved Trails and Parking Lots. All damage to parks, paved trails, or parking lots must be repaired at the expense of the Organizer whether caused by the Organizer or its vendors. The City will deduct the cost of repair from Organizer Deposit, however, the Organizer will remain responsible for costs and repairs that exceed the Deposit. 13. Clean -Up. On the day following the close of the Event, weather permitting, the Organizer will clean Lowell Park and other areas that have been impacted by the Event. The Organizer is responsible for all costs, incurred for the clean-up of areas neglected by the Organizer. 14. Term of Agreement. This Agreement will remain in effect for a period of one (1) year from the date of its execution. Further, in the event that a determination is made by the City Council, based upon the advice of the Police Chief that the Event is a threat to the health, safety or welfare of the community, the City Council reserves the right to cancel any remaining term and terminate this Agreement. 15. The Application for the Event as submitted by the Organizer is considered part of this Contract and any representations of the Organizer or conditions imposed by the City are restated as if fully set forth in this Agreement. IN WITNESS WHEREOF, the parties have set their hands this 2nd day of August, 2017 GREATER STILLWATER AREA CHAMBER OF COMMERCE. By: Its: STATE OF MINNESOTA ) ) ss COUNTY OF WASHINGTON ) On this day of 2017 before me, a Notary Public within and for said County, appeared , to me personally known, who, being duly sworn, did say that he/she is the of the GREATER STILLWATER AREA CHAMBER OF COMMERCE and that this instrument was signed as the free act and deed of the corporation. Notary Public CITY OF STILLWATER Attest: Ted Kozlowski, Mayor Diane F. Ward, City Clerk STATE OF MINNESOTA COUNTY OF WASHINGTON ) ) ss ) On this 2nd day of August before me, a Notary Public within and for said County, appeared Ted Kozlowski and Diane F. Ward, to me personally known, that they are, respectively, the Mayor and City Clerk of the City of Stillwater, and that this instrument was signed and sealed on behalf of the City by authority of its City Council, and they acknowledged the said instrument was the free act and deed of the City. Notary Public (:;4,., r. EVENTS PERMIT APPLICATION 216 North 4th Street, Stillwater, MN 55082 Tug eiatMr►atI OF riMwt$ot■ Telephone: 651-430-8837 Fax: 651-430-8810 Incomplete applications or applications received after deadline will not be accepted. See Event instructions for application deadline and fees. Date of Application: 06/05/2017 Office use Only Date Application Received - Type: Event Spec al Event Event w/ Contract Event Information - - - - Title/Name of Event Rivertown Fall Art Festiva] Event Date/Time: Set up: Date(]612017 Time 9:00 am to 9:00 pm. Actual Event: f1007-06/086108 Time 10 am to 5 pm Clean up: Date !08/2017 Time 5 pm to $ pm (Events after 10:00 p.m require a variance from City Council] Location (Address) of Event: Lowell Park Lot 9, 11, 5 Elf in Lowell Park please specify north or south Lowell park) Description of Event (please be specific - this information will be used to promote the event on the City of Stillwater webscte) The Chamber is now only hosting one art fair per year and has merged the two names to be now called. Rivertown Fall Art Festival. Estimated Attendance (part crpants and spectators): 3000-4000 Depending on weather Applicant Information tPerson/Group Responsible) - - - - Sponsoring Organization Name: Greater Stillwater Chamber of Commerce Mailing Address: 200 Chestnut Street East #204 City, State, Zip Code: Stillwater MN 55082 Primary Contact/Applicant Name: Robin Anthony Phone Number: 651-439-4001 Fax: 651-439-4035 Cell Phone: 612-860-0947 Email Address: director@greaterstillwaterchamber.com Website Address: www.greaterstillwaterchamber.com Name of contact person during event: Robin Anthony Cell Phone: 612-860-0947 Alternate contact during event: Stacie Jensen Cell Phone: 651-210-1184 Refer media or citizens inquires to: Robin Anthony Phone: 651-439-4001 Site Plan: A site plan is mandatory for all events. Please provide a map of the site layout. Include any tables, stages, tents, fencing, portable restrooms, vendor booths, trash containers, etc. If event involves a parade, race or walk, please attach a route map highlighting route. Include rest stop stations, crossings, signage and indicate route direction with arrows. Event Features Will any signs/banners be put up No ■ Yes 1:! Number and size: 40' Main Street Will there be any inflatables? No _/ Yes • Insurance certificate from rental vendor is required Music Fees for electricity may Will there be entertainment? No • Yes * What type: apply see Instructions 10-8 pm Saturday 11 - 4 pm Sunday Will sound amplification be used? No ■ Yes eHours and Type: Will a stage or tent(s) be set up? No ❑ Yes ® Dimensions:30x60 Will there be temporary fencing? No ❑ Yes ►l How many 8 Fees for electricity may Will merchandise/food items be sold? No • Yes ® vendors expected: DOIIjI SC Instructions Will food be prepared on site? No ❑ Yes ❑ Contact Washington County Health Department, 651-430-6655 Will cooking operations be conducted? No ❑ Yes ►1 Contact Stillwater Fire Department 351-4950 Will alcohol be served but not sold? No ►A Yes ■ See Alcohol Regulations in the instructions Will alcohol be sold? No ■ Yes Pi See Alcohol Regulations in the Instructions Will there be a fireworks display? No in Yes ■ Permit required, contact Stillwater Fire Department, 651-351-4950 Describe power needs and location of power source. Will need access to existing power boxes around park Describe level of advertisement (ie, radio, flyers, ads, tv, press release). Attach sample if available Art festival publications, social media, press, flyers, posters, radio, TV City Services (After reviewing the event application, City services may be requried for the event.) e' .f2 Will event use, close or block any of the following: If yes specify location on site map. fte: City Streets or Right-of-way No • Yes ® Start/End Time: Fri 12-7, Sat. 741-06/06-08 City Sidewalks or Trails No ® Yes ■ Start/End Time: Date: Public Parking Lots or Spaces No 0 Yes ® Start/End Time: Date: Fees may apply Will event need barricade(s)? No ❑ Yes P_+ Number needed: 7 see instructions Fees may apply Will extra picnic tables be needed? No ►5 Yes ❑ Number needed: see instructions Fees may apply Will portable restrooms be needed? No El Yes • Number needed: see Instructrons Will extra trash receptacles be needed? No ® Yes 1=)Number needed: Fees may apply see Instructions Describe trash removal and cleanup plan during and after event: Chamber will be independently coordinating trash and restrooms Will event need traffic control? No ►:i Yes ❑ Contact Stillwater Police Department for assistance, 651-351-4900 Describe crowd control procedure to ensure the safety of participants and spectators: Logistics document is developed for participants. Signage for spectators as well as two Chamber Help Desk locations Feehowls may pions)ly seeInstructionssite Will "No Parking Signs" be needed? No ■ Yes ►,1 Number needed: 8 Show location(s) on site mop Will event need security? No ❑ Yes ►2 If event is overnight, security will be required. If using private secruity, list Security Company and Contact Information: Chamber will contract with private company as in past years. Will event need EMS services? No ki2 Yes ❑ Contact Lakeview EMS, 651-430-4611 Describe plans to provide first aid, if needed: Chamber Help Desk will have a first aid kit. PD on duty and calling 911 next steps. Describe the emergency action plan if severe weather should arise: Artist will be requested to drop and secure tents. If needed, event will be canceled. List any other pertinent information: The sponsor(s) of this event hereby agrees to save the City, its agents, officials and employees harmless from and against all damages to persons or property, all expenses and other liability that may result from this activity. Depending on the size of and scope of the event a "Certificate of insurance" may be required. If insurance is required, the policy must be kept in force during the event of at least the statutory limits for municipalities covering claims that might be brought against the event that arise out of the events authorized and to name the City as an additional insured on their policy "as their interest may appear." As the sponsor or authorized representative, l certify that the information provided is true to the best of my knowledge and agree to pay the permit fee for this event based upon the information provided -n this application. l realize my submittal of this application request constitutes a contract between myself and the City of Stillwater is a release of Liability. Signature of Applicant or Authorized Agent Date cc/5/i' 7 2017 Rivertown Fall Art Festival Greater Stillwater Chamber of Commerce Oct 7th 10-5 pm (5-8 pm beer tent, music and food open) 8 Oct 8th 11-4 pm �s1 1 2 2 1 1 1 1 1 1 0 9 8 7 6 5 4 CHAMBER Standing area w/hightops Memo DATE: July 28, 2017 TO: Mayor and City Council FROM: Sharon Harrison, Finance Director RE: Sanitary Sewer Adjustments BACKGROUND: During the course of any given year, sanitary sewer rate adjustment recommendations come before Council. These adjustments are mainly due to leaks found during the course of the year, but often stand out more during the readings during the 1 st quarter of every year. For residential properties, sanitary sewer billing rates are set during the 2nd quarter of every year using the water consumption (obtained from the Water Board) from the 1 st quarter of the year. This rate is then used for the next 4 billing cycles (quarters) until the rates are reset again the following year. As mentioned before, occasionally there are some properties that have experienced increased water usage during the 1st quarter of the year due to some unforeseen circumstances (e.g. leaky toilet, water softener issues, pipe issues, etc.). This increased water usage naturally in turn increases their sanitary sewer billing rate for the next 4 billing cycles (quarters). These residents/owners will then call the City to explain their individual circumstance. We (Finance) then review consumption rates from prior/current quarters to see if we can determine the duration/termination of the leak based on the information provided to us by the water department and the resident/owner. This information then is used to provide Council with new billing rate recommendations for upcoming billing periods (until the new rates are reset the following year). This practice has been used by the City for many years, and has been proven to be a fair and accurate way for property owners to pay their fair share of the use of the sanitary sewer system. RECOMMENDATION: Attached are staff recommendations for sanitary sewer rate adjustments currently requested by property owners. These adjustments are expressed in gallons (of consumption), based on the average consumption of the prior 3 years, and converted to the new billing rate using the most current billing rates approved by Council. These adjustments will begin with the next billing cycle (3`d quarter billing). In other words, staff is recommending to Council that the property owner at least pay the increased sanitary sewer rate for the billing period in which the leak occurred. COUNCIL ACTION: If Council agrees with Staff's recommendation, Council needs to approve staff recommendations as listed on the attached Exhibit A. CITY OF STILLWATER EXHIBIT A Description of Billing Quarter Circumstance Winter Average Gallons Adjustment for 1 Leaking Toilet From 65,000 3rd To 23,000 2 Leaking Toilet From 52,000 3rd To 6,000 3 Softener leak From 274,000 3rd To 18,000 4 Unknown increase for one qtr From 44,000 3rd To 12,000 5 Leaking Toilet From 67,000 3rd To 24,000 Si S f M I N N E S P I A CITY COUNCIL MEETING DATE: August 2, 2017 CASE NO.: 2017-25 Planning Commission: July 12, 2017 APPLICANT: Anne Stanfield representing Ecumen REQUEST: Consideration of Planning Commission recommendation regarding a Concept Planned Unit Development for a senior living housing facility to be located at 114 Brick Street South and 1616 Olive Street West ZONING: RA - One Family Res. COMP PLAN DISTRICT: Low Density Res. PREPARED BY: Abbi Jo Wittman, City Planner BACKGROUND Anne Stanfield of Ecumen has requested approval of a Concept Planned Unit Development (PUD) for the future expansion of Our Savior's Lutheran Church (OSLC) and the development of a Senior Living Care Facility to be located at 114 Brick Street South and 1616 Olive Street West. The request is for the development of a future campus setting that would include Ecumeri s (approximately) 50,000 square foot structure as well as an addition to the existing OSLC building. On July 12, 2017, the Planning Commission held a public hearing on the request. At the hearing the Commission received testimony from members of the public both for and against the case. A copy of the Planning Commission staff report and analysis of the Concept PUD as well as draft minutes of the Planning Commission's regularly -scheduled July meeting are attached for Council review. The Planning Commission recommends conditional approval of the Concept PUD. If the City Council concurs with the Commission's recommendation, the attached resolution could be adopted. COMMENTS If the Concept PUD is approved, the applicant would proceed with the design work necessary to submit the following additional applications: ■ Special Use Permit for a Senior Living Care Facility in the RA - One Family Residential zoning district (Planning Commission Public Hearing Required). Special Use Permits require the review of the development in comparison with all zoning code regulations (building design, lighting, landscaping, stormwater, parking, anticipated noise, structure design, etc.). • Preliminary Plat for the reconfiguration of lot lines for the development (Planning Commission Public Hearing required). Preliminary Plats require the review of the development in comparison with all development regulations (road widths, park and trail dedication, access, utilities, etc.). • Final Planned Unit Development (Planning Commission and City Council Public Hearing Required). Final PUDs assess whether or not the concept is in general conformance with the concept PUD. • Final Plat for the establishment of the new lot lines. Final Plat is the last application. So long as it is in general conformance to the Preliminary Plat, the item only goes before the City Council. ALTERNATIVES A. Approval The City Council could concur with the Planning Commission recommendation and adopt the attached Resolution, approving the Concept PUD with the following Planning Commission conditions: 1) A 5% reduction in the total number of parking stalls shall be permitted in the Final PUD. The total number of stalls is contingent on the density maximums and shall be determined utilizing the following ratios. i) Memory Care/Assisted Living =1 space/5 units ii) Independent Living =1 space/1 units iii) Church =1 space/ 3 seats iv) Senior Care Living Facility Staff = 30 spaces 2) A complete landscape plan, including the preservation of significant trees and crown cover, will be included at the time of Preliminary Plat and/ or Final PUD. 3) Copies of all covenants and easements relating to the provision, use and maintenance of common open space, parking and drive areas must be filed with the Final Plat. 4) Redesign of the parking lot drive lanes and northerly access for fire safety purposes will need to be submitted as part of the Preliminary Plat and/ or Final PUD. 5) Prior to the submittal of the Preliminary Plat and/or Final PUD, and in conjunction with the City and Washington County, the applicant will determine if pedestrian and vehicular improvements will be required on all adjacent Right -of -Ways. 6) Public land dedication may be used to fulfill public park and trail dedication requirements only if it is found acceptable by the Park Commission and the City Council at the time of the Preliminary/Final Plat review. 7) The applicant will work with the City Engineering Department to determine if upgrades to the lift station will be required. The cost of the study, as well as improvements required, will be the responsibility of the property owner. 8) Determination of all conservation, drainage and utility easements shall be determined and found acceptable by the City of Stillwater and the Middle St. Croix Watershed Management Organization prior to Final PUD submittal. Case No. 2017-25 Page 2 of 3 9) Since there is no Concept PUD sunset clause for the Our Savior's Lutheran Church properties, this property will need to develop according to City standards and Best Management Practices in place at the time of development. However, regardless of the City development standards in place then, the planned church addition can be developed according to the foot print and location included in this Concept PUD. 10) The applicant shall explore modifying the design of the wet side to reduce the massing of the building. B. Table If the Council finds that that more information or public comment is needed, it could continue the review and request additional information be submitted. C. Denial If the Council finds the proposal is not consistent with the City Code or Comprehensive Plan, the Council could deny the request. If this action is taken, the Council should direct staff to prepare formal findings of fact to be adopted at the next City Council meeting. FINDINGS The Commission found the Concept Planned Unit Development is in keeping with the purposes and intentions of the PUD section of City Code. Additionally, the Commission found the public necessity, and the general community welfare are furthered and that the concept PUD is in general conformance with the principles, policies and land use designations set forth in the comprehensive plan. RECOMMENDATION The Planning Commission recommends approval of the concept Planned Unit Development with the ten conditions found above. Staff recommends adopting the attached resolution which approves the concept Planned Unit Development with the ten conditions found above. ATTACHMENTS Resolution Draft Planning Commission minutes July, 2017, CPC Staff Report Site Location Map Applicant Narrative (4 pages) Concept PUD Site Plan Concept PUD Submittal (15 pages) Unit Mix Matrix Parking Analysis Impervious Surface Analysis OSLC Preliminary Site Plan OSLC Preliminary Elevations Traffic Study Public Comments Case No. 2017-25 Page 3 of 3 CITY OF STILLWATER WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING A CONCEPT PLANNED UNIT DEVELOPMENT FOR OUR SAVIORS LUTHERAN CHRUCH AND ECUMEN CPC CASE NO. 2017-25 WHEREAS, Anne Stanfield of Ecumen made application for approval of the Concept Planned Unit Development (PUD) for a Senior Living Care Facility and Church expansion to be located at 114 Brick Street South and 1616 Olive Street West, property legally described in Exhibit A; and WHEREAS, on July 12, 2017, the Stillwater Planning Commission held a public hearing and recommended approval of the Concept PUD; and WHEREAS, on August 2, 2017 the Stillwater City Council received the recommendation of the City Council and reviewed concept plan for the development and found them to be in keeping with the purpose and intent of the PUD provisions and that the public necessity, and the general community welfare are furthered, and that the concept PUD is in general conformance with the principles, policies and land use designations set forth in the comprehensive plan. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Stillwater hereby approves the concept Planned Unit Development for Ecumen and Our Savior Lutheran Church with the following conditions: 1) A 5% reduction in the total number of parking stalls shall be permitted in the Final PUD. The total number of stalls is contingent on the density maximums and shall be determined utilizing the following ratios. a) Memory Care/Assisted Living =1 space/5 units b) Independent Living =1 space/1 units c) Church =1 space/3 seats d) Senior Care Living Facility Staff = 30 spaces 2) A complete landscape plan, including the preservation of significant trees and crown cover, will be included at the time of Preliminary Plat and/or Final PUD. 3) Copies of all covenants and easements relating to the provision, use and maintenance of common open space, parking and drive areas must be filed with the Final Plat. 4) Redesign of the parking lot drive lanes and northerly access for fire safety purposes will need to be submitted as part of the Preliminary Plat and/or Final PUD. 5) Prior to the submittal of the Preliminary Plat and/or Final PUD, and in conjunction with the City and Washington County, the applicant will determine if pedestrian and vehicular improvements will be required on all adjacent Right -of -Ways. 6) Public land dedication may be used to fulfill public park and trail dedication requirements only if it is found acceptable by the Park Commission and the City Council at the time of the Preliminary/Final Plat review. 7) The applicant will work with the City Engineering Department to determine if upgrades to the lift station will be required. The cost of the study, as well as improvements required, will be the responsibility of the property owner. 8) Determination of all conservation, drainage and utility easements shall be determined and found acceptable by the City of Stillwater and the Middle St. Croix Watershed Management Organization prior to Final PUD submittal. 9) Since there is no Concept PUD sunset clause for the Our Savior's Lutheran Church properties, this property will need to develop according to City standards and Best Management Practices in place at the time of development. However, regardless of the City development standards in place then, the planned church addition can be developed according to the foot print and location included in this Concept PUD. 10) The applicant shall explore modifying the design of the wet side to reduce the massing of the building. Enacted by the City Council of the City of Stillwater, Minnesota this 2nd day of August, 2017. CITY OF STILLWATER Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk THE 1INTNYLACE OF MINNESOTA PLANNING COMMISSION MEETING MINUTES July 12, 2017 REGULAR MEETING 7:00 P.M. Chairman Collins called the meeting to order at 7:00 p.m. Present: Chairman Collins, Commissioners Fletcher, Hade, Hansen, Lauer and Siess, Councilmember Menikheim Absent: Commissioner Kocon Staff: City Planner Wittman APPROVAL OF MINUTES Possible approval of June 14, 2017 meeting minutes Commissioner Siess stated she would like the following changes made: regarding the Open Forum discussion, add that the presentation she referred to was from the League of Minnesota Cities. Regarding Case No. 2017-18, she would like the minutes to reflect that "the level of this permit is owner occupied which means that the home should be non -homesteaded, which would take care of the insurance." Motion by Commissioner Lauer, seconded by Commissioner Fletcher, to approve the June 14, 2017 meeting minutes as amended. Motion passed 6-0, all in favor. OPEN FORUM There were no public co PUBLIC HEARINGS . mments,. Case No. 2017-14: Preliminary plat for an 8 single family home subdivision for the property located at 1902 William Street North. Sterling Black, Fairway Development, LLC, property owner. Chairman Collins noted that the developer is requesting this item be tabled. New notice will be given in advance of the public hearing, when scheduled. Case No. 2017-27: City -initiated Zoning Map Amendments for the rezoning of properties located at 419 Second Street South, 322 Broadway Street South and 435 Broadway Street South from Central Business District to RB, Two -Family Residential. Chairman Collins noted that this request has been withdrawn by the City. Planning Commission July 12, 2017 Case No. 2017-23: Variances associated with a structural addition and rehabilitation, 419 Second Street South. Brian Brosdahl, property owner. City Planner Wittman explained that Brian Brosdahl would like to reconstruct a rear yard kitchen addition, add a north -facing front porch, and construct a new, two -car attached garage on the east side of the structure. Therefore he is requesting the following variances: 1) a 16.76' variance to the 20' rear yard setback for the northwest corner of an attached garage; 2) a 17.74' variance to the 20' rear yard setback for the southwest corner of an attached garage; and 3) an 8.5' variance to the 15' front yard setback from South Second Street for the addition of an attached porch. Staff recommends approval with four conditions and an additional condition that the owner obtain a special use permit for the residential structure as required in the Central Business District. Brian Brosdahl, property owner, stated that the reconstruction is on the existing footprint. He intends to bring the house back to its original Italianate architecture. Chairman Collins opened the public hearing. There were no public comments. The public hearing was closed. Motion by Commissioner Hansen, seconded by Commissioner Hade, to approve Case No. 2017-23, variances associated with a structural addition and rehabilitation located at 419 Second Street South, with the four conditions recommended by staff, adding a fifth condition that the homeowner needs to obtain a SUP. Motion passed 6-0, all in favor. Case No. 2017-24: Conditional Use Permit to operate a Type C Short Term Home Rental to be located at 322 Broadway Street South. Brian Brosdahl, property owner. City Planner Wittman stated that Brian Brosdahl has applied for the necessary Conditional Use Permit that would allow him to use the single family house at 322 Broadway Street South as a Type C Short Term Home Rental. Mr. Brosdahl currently lives at this property, but he owns and plans to move into the adjacent property at 419 2nd St. S. after completing renovations to that property. He has submitted applications for only the necessary Conditional Use Permit to operate a Type C Short Term Home Rental (STHR), and will apply for a license at a later date. Staff recommends approval with 13 conditions and an additional condition that the owner obtain a SUP for this residence as required in the Central Business District. Commissioner Siess asked for clarification on the number of parking spaces. Mr. Brosdahl reiterated his plans to move into the house next door and have this house be the short term rental. He realizes he must provide a minimum of four parking spots and not allow guests to park on the street. He confirmed guests will have access to use the garage. Chairman Collins opened the public hearing. There were no public comments. He closed the public hearing. Motion by Commissioner Fletcher, seconded by Commissioner Hansen, to approve Case No. 2017-24, Conditional Use Permit to operate a Type C Short Term Home Rental at 322 Broadway Street South, with the 13 staff -recommended conditions plus a 14th condition requiring the property owner to obtain a SUP to use the house as a residence. Motion passed 6-0, all in favor. Page 2 of 6 Planning Commission July 12, 2017 Case No. 2017-25: Concept Planned Unit Development for a senior living housing facility to be located at 114 Brick Street South and 1616 Olive Street West. Our Savior's Lutheran Church, property owner, and Daniel and Gretchen Smith, property owners. Anne Stanfield representing Ecumen, applicant. City Planner Wittman stated that Ecumen is planning to develop a Senior Care Living Facility behind Our Savior's Lutheran Church (OSLC) located at 1616 Olive Street West. The new facility would be accessed from Brick Street, directly across from Ramsey Street West. It will be developed, owned and operated by Ecumen. The applicant recently gained approval for a Zoning Text Amendment to allow for these types of facilities to be located by Special Use Permit in the RA — One Family Residential zoning district. The applicant has now requested approval of the Concept Planned Unit Development (PUD) for a future campus setting that would include Ecumen's (approximately) 50,000 square foot facility as well as an addition to the existing OSLC structure. Our Savior's Lutheran Church does not intend to develop their phase, consisting of church additions, for at least ten years. Ms. Wittman reviewed zoning requirements for planned unit developments, and explained how the development meets the required setbacks, impervious surface coverage and building height maximums, parking, and open space requirements. She stated a traffic study was done which found that traffic from the facility will not negatively impact the neighborhood. The applicant is aware that if the Concept PUD is approved, subsequent applications will need to be made for 1) a Special Use Permit for a Senior Care Living Facility to be located in the RA District; 2) Final PUD; and 3) associated preliminary/final plats. Three letters were received, two of support and one strongly opposed. Staff finds the Concept Planned Unit Development is in keeping with the purpose and intent of the PUD provisions and is in general conformance with the principles, policies and land use designations set forth in the comprehensive plan. Therefore, staff makes the recommendation the Commission recommend approval with nine conditions. Commissioner Hansen asked about plans for trails in the area. City Planner Wittman suggested that, although such items will be analyzed at the time of the preliminary plat, the Commission may want to recommend that further discussions take place with the developer regarding potential pedestrian improvements such as marked crosswalks and crossing signs. Commissioner Hansen asked about impervious surface coverage restrictions. City Planner Wittman confirmed that the development meets the impervious surface coverage restrictions and will treat all stormwater on site. Commissioner Siess asked what controls will ensure that the units are inhabited by seniors as intended and not turned into apartments for the general public. Ms. Wittman responded that it would be a violation of the use permit to make the units available for the general public. She added that half of the units are independent living, a quarter are assisted living, so three-fourths of the units will be apartment -type housing. Ray Valley, president of the board of Our Savior's Lutheran Church, summarized the church's partnership with Ecumen and the congregational vote to approve the contingent sale of the property. Anne Stanfield, Director of Business Development at Ecumen, shared the Shoreview -based organization's history. The purpose of the proposal is to provide housing options for seniors 55+ to allow them to age in place. She pointed out the benefits of the project. She added that there will be approximately 3,700+ seniors in Stillwater by 2020 and currently there are three nursing homes to support that need. Page 3 of 6 Planning Commission July 12, 2017 Mindy Michael, Kaas Wilson Architects, presented images of the proposed facility. She said they are proposing a mix of high quality, durable, low maintenance materials for the exterior. It is four-sided architecture with the same level of detail on each side. In response to neighborhood meetings, the decks were re -oriented to face north and south so as not to face neighbors to the west. Noting there are seven houses directly impacted on Deer Path, Chairman Collins asked what the developers have done to get feedback from the neighborhood. Ms. Michael responded they held two neighborhood meetings in addition to two to three meetings with the church congregation. Commissioner Siess acknowledged the need for more senior housing in the next 10-15 years but asked the developer if they have looked beyond that timeframe. Ms. Stanfield replied that the market study showed the senior population will continue to grow even beyond ten years. The project will meet the short-term demand, but there will quickly be a deficit of senior housing again in Stillwater 10 years out from the time the project opens. Chairman Collins opened the public hearing. Dan Zenk, 261 Deer Path, said the project clearly is not compatible to the area. His home will be dwarfed by this building. He has already had a potential house sale fall through because of this project. He pointed out that Deer Path is a major north -south connection with very heavy traffic already. He expressed concern about noises, shift changes, trash delivery, maintenance, sirens, emergency vehicles, and parking lot lights. Tony Gilewski, 241 Deer Path, voiced deep concern about property values, which realtors have told him will go down after the project is built. If the project goes forward, he would like to be assured some system of buffering to protect surrounding property values and sight lines. Michele Livermore, 181 Deer Path, stated the project will obviously reduce neighbors' property values. Because her property is lower, the building will appear five stories tall from her backyard. She expressed concerns about traffic which is already heavy in the area. She also feels that the three story flat top building doesn't fit historic Stillwater. Barbara Ylinen, 201 Deer Path, said she strongly opposes the project because the huge three-story box -like building would look directly down on her home and monopolize the views. She feels there must be a better area for such a facility. She is concerned about home values going down, water runoff, noise, odor, lights, traffic, and the appearance and size of the building. Orvil Johnson, 1085 Nena Court, a board member of Our Savior's Lutheran Church, explained how the church became involved in the proposal for a senior care facility on the property. He pointed out there is a need for senior housing in Stillwater as reflected in the City's comprehensive plan. Chairman Collins closed the public hearing. He offered the developers an opportunity to respond to the concerns expressed. Ms. Stanfield stated a traffic study found there would be no significant approach delays or queuing issues. They intend to divert all lighting onto the site, add a landscape buffer on the Deer Path side of the building, and to contain and manage all runoff on the site as required by the City. Page 4 of 6 Planning Commission July 12, 2017 Ms. Michael addressed concerns about HVAC and odor issues, saying there will be a commercial kitchen serving the residents, about half of whom will be independent living residents who are less likely to use the dining room. The building wraps around the parking lot so it will shield most views of the parking lot. The next stage of design will involve a light study, a tree preservation plan, and details on treatment of water runoff on site. Ms. Stanfield added that food deliveries would be made once weekly in the garage. Commissioner Siess asked if the designers considered anything special for Stillwater in terms of architectural detail. Ms. Michael replied that the massing of the building will be broken up in an architecturally interesting way by varying the decks. Height restrictions preclude using a pitched roof. She is not a proponent of false historicism. Ms. Stanfield added that the design took into consideration the immediate neighbor, the brick church building from the 1960s. Commissioner Hansen asked about HVAC units. Ms. Michael explained there will be no central plant. Each residential unit will have its own HVAC unit with a louver on the exterior side of the building. Ms. Stanfield added that this is standard for multi family housing. Chairman Collins asked where else this facility could be built in Stillwater. City Planner Wittman responded this is the only undeveloped single site at present that could feasibly be developed in this fashion. Commissioner Hansen stated he feels adding to the existing traffic is a problem. Generally, he feels this is a good location for a facility but would like to add a condition requiring additional traffic analysis and consultation with Washington County to see if the development would generate enough traffic to achieve the threshold required to add traffic controls at Olive, Myrtle and Brick. He also supports additional sidewalk on all sides of the property. Commissioner Siess remarked that, compared to other senior housing proposals, the houses here are a lot closer to the development. She would like the building to better reflect the residential character of the neighborhood. She realizes there is currently a need for senior housing but would like the City to have a plan for how to deal with senior housing units when the senior population starts to decline, as predicted by the year 2035. Commissioner Lauer stated that he supports the concept because the property is the only feasible location for such a facility and the need for senior housing is not being met currently. However he is concerned about the views from backyards on Deer Path especially in the winter. He agreed the property values will go down. Chairman Collins noted that concept approval is the first of many steps and there is a lot more work to be done. He supports adding a condition requiring an additional traffic study. Motion by Commissioner Fletcher, seconded by Chairman Collins, to approve Case No. 2017-25, Concept Planned Unit Development for a senior living housing facility to be located at 114 Brick Street South and 1616 Olive Street West, with the nine conditions recommended by staff, modifying Condition #1 to state that independent living would be based on one space per one unit, and modifying Condition #5 to state that in conjunction with the City and Washington County, the applicant will work on pedestrian and vehicular safety improvements at the intersections of Brick with Olive and Myrtle Streets, and adding Page 5 of 6 Planning Commission July 12, 2017 Condition #10 requiring the applicant to explore modifying the design of the west side to reduce the massing of the building. Motion passed 4-2, with Commissioners Hade and Siess voting nay. Case No. 2017-26: Variance to the rear yard setback for construction of a 15' x 15' deck at 1429 Macey Way. Sithyvon and Jill Chau, property owners. City Planner Wittman reviewed the request. Sithyvon & Jill Chau are requesting an 8' variance to the required 25' rear yard setback for the construction of a deck, to be located 17' from the east property line. The proposed deck is split into two sections, with only the southernmost section requiring the setback variance. The north section of the deck will include a swim spa. If the Commission finds that practical difficulties exist, staff recommends approval with three conditions. Sithyvon and Jill Chau offered to answer questions. Chairman Collins opened the public hearing. There were no public comments. He closed the public hearing. Motion by Commissioner Hansen, seconded by Commissioner Siess, to approve Case No. 2017-26, Variance to the rear yard setback for construction of a deck at 1429 Macey Way, with the three conditions recommended by staff. Motion passed, 6-0, all in favor. NEW BUSINESS There was no new business. STAFF UPDATES 2040 Comprehensive Plan Scoping Document City Planner Wittman reported that an RFP will be ready for Council review in two weeks for the hiring of a consultant to assist with the final comprehensive plan update. She invited commissioners to participate on the comprehensive plan advisory committee. ADJOURNMENT Motion by Commissioner Fletcher, seconded by Commissioner Lauer, to adjourn the meeting at 9:25 p.m. All in favor, 6-0. Respectfully Submitted, Julie Kink Recording Secretary Page 6 of 6 Si THFS f MINEEJIA PLANNING REPORT MEETING DATE: July 12, 2017 CASE NO.: 2017-25 APPLICANT: Anne Stanfield representing Ecumen REQUEST: Consideration of a Concept Planned Unit Development for a senior living housing facility to be located at 114 Brick Street South and 1616 Olive Street West ZONING: RA - One Family Res. COMP PLAN DISTRICT: Low Density Res. PREPARED BY: Abbi Jo Wittman, City Planner BACKGROUND Anne Stanfield with Ecumen is planning to develop a Senior Care Living Facility (Facility) behind Our Saviors Lutheran Church (OSLC) located at 1616 Olive Street West. The new Facility would be accessed off of Brick Street, directly across the street from Ramsey Street West. This facility will be developed, owned and operated by Ecumen. The applicant recently gained approval for a City of Stillwater Zoning Text Amendment to allow for these types of facilities to be located by Special Use Permit in the RA - One Family Residential zoning district. SPECIFIC REQUEST The applicant has requested approval of the Concept Planned Unit Development (PUD) for a future campus setting that would include Ecumeri s (approximately) 50,000 square foot facility as well as an addition to the existing OSLC structure. The request requires the Planning Commission to hold a public hearing prior to making a recommendation to the City Council. The applicant is aware that if the Concept PUD is approved, subsequent applications will need to be made for 1) a Special Use Permit for a Senior Care Living Facility to be located in the RA District; 2) Final PUD; and 3) associated preliminary/final plats. EVALUATION OF REQUEST As the property is greater than three acres in size and contains at least two principal buildings, the project is eligible to be considered as a PUD by the City. The purpose of a PUD1 is to provide for a means of: ' City Code Section 31-210(a) (1) Allowing a mixture of uses in an integrated and well planned area to aid in providing a better living environment. (2) Allowing for flexibility in group building development wherein the relationship is between building and building or buildings and site, rather than between building and property lines, as is the case in monostructural development. (3) Preserving natural beauty spots, open space and recreational areas. (4) Ensuring variety, innovation and flexibility in the development of land and its improvements. As indicated in the narrative request, the applicant has applied for the concept PUD to better plan for the unified development of the site as a whole. However, the development would occur in phases. The Facility is anticipating construction in 2018 whereas OSLC would like to reserve the right to construct in approximately ten years or greater. Typically, only six months may pass after a Concept PUD is approved before an application must be submitted for a Final PUD permit. However, there is an exception for "phased development", which allows the Final PUD to be applied for "according to the approved staging plan". Since development methods and materials, as well as Best Management Practices, evolve over time, it would be in the City's best interest to grant approval of the Concept PUD with an identified sunset clause. However, since the owners of the "future phase" properties do not know when they will develop, a sunset clause is not acceptable. However, they are willing to agree to develop according to development standards that will exist at the time they develop, as long as the Concept PUD approval continues to allow them the location and footprint of the Church additionwhen they finally develop. So, this will need to be a condition of approval. In review of the campus development concept PUD, the following development regulations are considered: Zoning Code Site Size A standard PUD has to be on a project of at least 3 acres in size. The subject property has 15.03 gross acres. Density Density is governed by the ability to meet all development controls. A total of 145 units are proposed which equates to (approximately) 9.5 units per acre for the entire development site. The density is approximately 20 units per acre on the developable portion of the Facility's proposed property. The density will not have an impact to the local school district. Setbacks Currently the church structure sits (approximately) 40' from Olive Street and 150' from Brick. OSLC's proposed addition(s) would not extend closer to the Olive Street right-of-way but would be closer Case No. 2017-25 (114 Brick Street/ 1616 Olive Street West) CPC: 7/12/2017 Page 2 of 8 Case No. 2017-25 (114 Brick Street/ 1616 Olive Street West) CPC: 7/12/2017 Page 3 of 8 Brick Street by approximately 20'; this is still well within compliance of the 30' Front Yard setback. The proposed Ecumen Facility is proposed to be located approximately 50' off of Brick Street and, at its closest point, 60' from the Myrtle Street/CSAH 12 right-of-way. The setback required is 20'. While the Facility is proposed to be located approximately 100' from the west property line (adjacent to homes located off of Deer Path), OSLC would not be extending further west than the structure already is situated. The Ecumen Facility is proposed to be setback at least equal to twice the proposed building height, as required per the PUD regulations. . While the facility is proposed to be located approximately 25' from the delineated wetland, a non -disturbance buffer is required to be a minimum of 25' in the Middle St. Croix Watershed District. Additionally, there is a 15' structural setback from the non- disturbance buffer. The applicant's revised site plan, dated 6/30/2017 shows the structure achieving compliance on the Northeast side by utilizing buffer averaging in this area. Each structure will achieve the Side Yard setback minimum requirement of 10' to the interior lot line. There is approximately 50' proposed between the two structures. Impervious Surface The property currently contains 35.42% lot coverage; a total of 1.46% of the existing lot coverage is for the public trail across this property. Under the new plan, a total of 36.91% of the development site will be covered by structures or other impervious surfaces. The RA Zoning District allows 30% maximum coverage. However, the PUD approach allows flexibility to this standard. As long as the mass of the structures are not inappropriate for the site, and the stormwater is adequately treated, the 36.91 % coverage would be allowed. Building Height The PUD standards indicate structures must conform to the height limitations imposed by the underlying zoning district. The RA zone allows for a 35' maximum structure. The proposed Ecumen Facility would be 33'4". Parking As the developer addresses in the narrative, parking standards for Senior Care Living Facilities is not specifically noted in the City Code. However, the developer has proposed 364 spaces on the site plan; a total of 350 would be required at the time of final buildout. The applicant has indicated an additional 14 spaces could be Case No. 2017-25 (114 Brick Street/ 1616 Olive Street West) CPC: 7/12/2017 Page 3 of 8 constructed at a later date. The following calculations have been applied to similar uses in Stillwater: Memory Care (36 units) 1 space/5 units 7.2 Assisted Living (36 units) 1 space/5 unit 7.2 Independent (73 units) 1.5 spaces/1 unit 108 Staff (30 @ shift change) 1 space/max no. 30 Church (650 seats) 1 space/3 seats 216 $1,500 Total 368 Independent living 73 -5% (18 spaces) $1,500 $750 350 spaces required A parking lot planting plan shall be developed and submitted with the Preliminary Plat. Open Space and Recreation As indicated, 63 % of the property is proposed to remain as open space. This includes the preservation of the wetland areas adjacent to the northern property line, tree coverage to the west of the exiting City trail as well as woodland area to the west of Brick Street South. Selective removal of trees is proposed but, as per the subdivision regulations, no greater than 50%. Open areas between the two buildings and north of the Ecumen Facility will also be preserved. A complete landscaping plan will be required as part of the Special Use Permit and platting review. The PUD standards further indicate land must be dedicated to the city for recreation or other open space purposes consistent with the standards and criteria contained in the park dedication policy. Ordinance 963 establishes minimum public park and trail dedication requirements. In cases such as this one where the Comprehensive Plan and park planning efforts do not identify a need for on-site parkland, a park dedication fee is required in lieu of a land dedication. According to the City's Comprehensive Plan, no public park improvements are envisioned for the project site. There is no established park dedication fee for senior living facilities. The most similar fee may be for multiple -family projects, which requires $1,500.00 for each unit. However, the impact of a senior living project and an apartment building are not similar. Therefore, the Park Commission in similar cases reduced fees. If those reductions were applied to the lots to be final platted at this time, it would result in the following fees: Unit Type Number of Units Park Usage Fee Per Unit Recommended Fee Per Unit Recommended Total Memory care 36 0% $1,500 $0 $0 Assisted living 36 0% $1,500 $0 $0 Independent living 73 50% $1,500 $750 $54,750 Case No. 2017-25 (114 Brick Street/ 1616 Olive Street West) CPC: 7/12/2017 Page 4 of 8 TOTAL $54,750 As with the park dedication fee, it is unlikely that the impact of the project's residents upon the trail system will be in the same order of magnitude as a standard apartment building. Therefore, the Park Board has made the following recommendation for similar projects. Unit type Number of units Trail Usage Fee Per Unit Recommenced Fee Per Unit Recommended Total Memory care 36 0% $500 $0 $0 Assisted living 36 25% $500 $125 $4,500 Independent living 73 100% $500 $500 $36,500 TOTAL $41,000 An existing public trail on the property will remain. However, the applicant has preliminary discussed improvements to this amenity for emergency service access, requiring certain improvements to the trail (discussed below). As a result, the trail will need to be maintained in the wintertime months. Therefore, the Final PUD will need to include an upgrade and maintenance agreement of this public trail. Other Development Controls Streets & Other Public Ways The main entrance into the project would align with Ramsey Street West off of Brick Street. It is proposed to be a private access road. The applicant has provided a traffic study conducted by SRF, and engineering firm pre -approved by the Community Development and Engineering Departments. City Engineer Sanders has determined the traffic study is sufficient. The traffic study determined the existing infrastructure will be able to accommodate the increased demand. The private access will navigate to underground parking as well as a two-way parking lot in the center of the building and situated on the north side of the church. The existing westerly parking lot of the church is proposed to remain as developed; the access point will not be changing. There would be a connection between the two parking lots. A shared access and use agreement would be required to be submitted as part of the Final PUD. No other improvements or access points are proposed. However, the City's Master Trails plan calls for the construction of bicycle/pedestrian facilities in this location. Prior to the submittal of the Final PUD, the applicant will need to have a detailed plan for the potential construction, upgrades, and future maintenance of existing and proposed trails, sidewalks and other pedestrian improvements. Public Safety Stillwater Fire Department has reviewed the plan. Two areas of concern are the parking stall design of the existing westerly parking lot and its connection to the future Ecumen Facility lot Case No. 2017-25 (114 Brick Street/ 1616 Olive Street West) CPC: 7/12/2017 Page 5 of 8 as well as access to the north side of the structure. Prior to the submittal of the Final PUD, the applicant will work with the Fire Department to ensure all necessary life/safety measurements are taken. Utilities No utility plan has been included in the concept PUD. The City Engineering Department has indicated that the existing sanitary sewer lift station in this area may not be sufficient for this development. A study will need to be conducted to determine if upgrades to the lift station will be required. The cost of the study, as well as improvements required, will be the responsibility of the property owner(s). Additionally, the Water Department has indicated the property will be fed off of the middle system, opposed to the high system which has greater capacity. Design of the water infrastructure will need to be coordinated with the Water Department. Drainage The developer is proposing to maintain all drainage onsite by meeting the requirements of the City and Middle St. Croix Watershed Management Organization. Full drainage plans, including easement areas, will be required to be submitted as part of the platting process. Comprehensive Plan Conformity As the City Code further indicates, the PUD project must be designed and developed to harmonize with both existing and proposed development in the area surrounding the site and with the city's Comprehensive Plan. The Comprehensive Plan's housing chapter encourages the provision of a range of housing opportunities for aging in the community and for the elderly. This PUD helps fulfill the following policies and program goals while preserving a significant amount of private and public open space areas: Policy 4. Attempt to disburse assisted housing throughout the community. Policy 5. Locate assisted housing near transit lines and public parks. Policy 9. Utilize the Future Land Use map to designate residential sites appropriately located for a range of housing densities. Program 3: Attempt to meet regional lifecycle housing goals for the City of Stillwater. The following implementation items of the Comprehensive Plan's Chapter three, Natural Resources, may be able to be met with this development: • Requiring protection of the natural resource areas. • Ensuring open space resource areas, including sensitive natural resource areas, are identified and incorporated into development design. ALTERNATIVES Case No. 2017-25 (114 Brick Street/ 1616 Olive Street West) CPC: 7/12/2017 Page 6 of 8 A. Approval If the Planning Commission finds the proposal to be consistent with the provisions of the Planned Unit Development, the Commission should forward a favorable recommendation of approval of the Concept Planned Unit Development with the following conditions of approval: 1) A 5% reduction in the total number of parking stalls shall be permitted in the Final PUD. The total number of stalls is contingent on the density maximums and shall be determined utilizing the following ratios. i) Memory Care/Assisted Living =1 space/5 units ii) Independent Living =1 space/1.5 units iii) Church =1 space/ 3 seats iv) Senior Care Living Facility Staff = 30 spaces 2) A complete landscape plan, including the preservation of significant trees and crown cover, will be included at the time of Preliminary Plat and/ or Final PUD. 3) Copies of all covenants and easements relating to the provision, use and maintenance of common open space, parking and drive areas must be filed with the Final Plat. 4) Redesign of the parking lot drive lanes and northerly access for fire safety purposes will need to be submitted as part of the Preliminary Plat and/ or Final PUD. 5) Prior to the submittal of the Preliminary Plat and/or Final PUD, the applicant will determine if pedestrian improvements will be required on the East property boundary, consistent with the Comprehensive Plan. 6) Public land dedication may be used to fulfill public park and trail dedication requirements only if it is found acceptable by the Park Commission and the City Council at the time of the Preliminary/Final Plat review. 7) The applicant will work with the City Engineering Department to determine if upgrades to the lift station will be required. The cost of the study, as well as improvements required, will be the responsibility of the property owner. 8) Determination of all conservation, drainage and utility easements shall be determined and found acceptable by the City of Stillwater and the Middle St. Croix Watershed Management Organization prior to Final PUD submittal. 9) Since there is no Concept PUD sunset clause for the Our Savior's Lutheran Church properties, this property will need to develop according to City standards and Best Management Practices in place at the time of development. However, regardless of the City development standards in place then, the planned church addition can be developed according to the foot print and location included in this Concept PUD. B. Table If the Planning Commission finds that the application is not complete enough to make a decision, it could continue the review for additional information. C. Denial If the Planning Commission finds the proposal is not consistent with the provisions of the Planned Unit Development, the Commission should forward Case No. 2017-25 (114 Brick Street/ 1616 Olive Street West) CPC: 7/12/2017 Page 7 of 8 recommendation of denial to the City Council. The Commission should indicate a reason for such recommendation. RECOMMENDATION Staff finds the Concept Planned Unit Development is in keeping with the purpose and intent of the PUD provisions and is in general conformance with the principles, policies and land use designations set forth in the comprehensive plan. Therefore, staff makes the recommendation the Commission recommend conditional approval of this application. ATTACHMENTS Site Location Map Applicant Narrative (4 pages) Concept PUD Site Plan Concept PUD Submittal (15 pages) Unit Mix Matrix Parking Analysis Impervious Surface Analysis OSLC Preliminary Site Plan OSLC Preliminary Elevations Traffic Study Stiles Letter of Support Case No. 2017-25 (114 Brick Street/ 1616 Olive Street West) CPC: 7/12/2017 Page 8 of 8 ' L41644 er"411 Si.,x 31,111 lCl d ''m a 4-,....1. 1. CS ,� r j2 4 , L i1f A M ; z ;r ;, 4 . .. SUNNYSLOPE L `41 __ . is WEST MY F-- - '"'"oommEIN01111111.11°°11.11111. .) The Birthplace of Minnesota N 114 Brick Street South .", 'L 1 4 t "���' «�, '° 11 X 11 1401 -t „3 _ 1616 Olive Street West Site Location Map -� GO�� HNE PP 0. a 1 .•6 . U WEST RAMSE p GI Subject Properties ,: "'- i Q i� d CI - ' m . ti " -� i .l- a co Parcel Boundaries w..- Municipal Boundary WEST OLIVE. _ _ _ STREET CSAH 5 01-1 " € 0 180 360 720 Feet General Site Location -iimilli .r - ' — - r 71171711r. jII a � f a 1 j` 1� 0 o °-, 1 -L y 0,» ECUNIEN & OUR SAVIOR'S LUTHERAN CHURCH / CONCEPT PUD APPLICATION INTRODUCTION / REQUEST Ecumen and Our Savior's Lutheran Church (OSLC) are pleased to submit this application for concept Planned Unit Development (PUD) to allow for a new Senior Living Care Facility and Church Expansion on 15.0 acres at 1616 West Olive Street and 114 Brick Street. The request includes: 1) A new Senior Living Care Facility The proposed Senior Living Care Facility would provide 145 housing units including 73 Independent units, 36 Assisted living units and 36 Memory Care units. Ecumen would own and operate the senior living community. Ecumen is under contract to purchase two contiguous properties: 114 Brick Street (current location of the AM radio tower for KLBB radio) and approximately 6.4 acres at 1616 West Olive Street (land which is currently undeveloped and owned by OSLC). OSLC would retain the remainder of their property and continue to operate the Church in an enhanced campus environment adjacent to Ecumen's new senior living community. 2) A future expansion of Our Savior's Lutheran Church at 1616 West Olive Street. OSLC plans to add an approximately 9,600 sf sanctuary. The timing of this project is a minimum of 10 years into the future. PROJECT BACKGROUND Ecumen, a leading national non-profit senior housing provider, was approached by OSLC after the adjacent property owner inquired about OSLC's interest in purchasing their land. The OSLC board considered senior housing to be a good fit as a potential future use of the site as such a community would be an extension of OLSC's commitment to service and would create great synergies. OSLC was aware of Ecumen's 150+ year history of serving those in need and believed Ecumen would be an ideal partner to realize an expansion of the Church campus to include housing for seniors in Stillwater. Based in Shoreview, Ecumen operates in 37 cities and 7 states, with the majority of its communities in Minnesota. Dedicated to empowering individuals to lead richer, fuller lives, Ecumen prides itself on innovation and radically changing the way aging is viewed and understood. As a long-term owner and operator of its communities, including locations in MN which have been under ownership for over 100 years, Ecumen is committed to enhancing the broader communities in which it operates. OSLC also has a 150+ year history, all within the City of Stillwater. The Church was established in Stillwater and has served this community from its inception. OSLC has been at 1616 Olive Street since 1961. The OSLC congregation is currently comprised of approximately 900 members, the majority of which are Stillwater residents. Given this unique opportunity to partner with OSLC, Ecumen has entered into contracts with OSLC and the KLBB property owner to purchase land. The goal of this partnership is to create a project that enhances the community with a building that complements the Church and adjacent homes and by providing a new home for Stillwater's seniors, a segment of the population that is currently underserved with limited housing options. In advance of this application, Ecumen requested a Zoning Text Amendment to allow for Senior Living Care Facilities in the RA district for sites 5 acres or greater by special use permit which was approved by City Council on May 16, 2017 (CASE #2017-07). 1 ECUMEN & OUR SAVIOR'S LUTHERAN CHURCH / CONCEPT PUD APPLICATION PROJECT OVERVIEW Ecumen's new senior living community will provide a range of housing options for individuals and couples 55+ under one roof. While a resident's health needs may change, offering Independent, Assisted and Memory Care housing options in one building allows residents to age in place. In addition to rental housing, the new building will provide common spaces available to residents and Church members including formal and informal dining venues, a wellness center, lounges for social gathering and activity rooms for larger group meetings and programs. There will be direct pedestrian connections to the Church which will facilitate safe passage between the two buildings and encourage intergenerational engagement between the residents of Ecumen's building, the Church's congregation, youth ministry and daycare. A focus on wellness and intergenerational engagement extends to the site design as well. Ecumen will provide walking paths that connect to the city's existing walking trails, an outdoor picnic area, park benches, and an open field for larger group recreation and gatherings. These amenities will serve the residents of Ecumen's building and the 900 members of the Church as well. The proposed campus and building design coupled with the rich programming and quality care that will be offered will facilitate active and healthy lifestyles for seniors in Stillwater, bolster residents' physical and psychological health and enhance their engagement with the community. SITE / BUILDING DESIGN CONSIDERATIONS Site Access Site access will be off of Brick Street and will align with Ramsey Street; this will result in a standard 4 -way street intersection. Zoning Requirements All dimensional standards for the new building are in compliance with the requirement in the RA zone. Additionally, all PUD requirements are met for both the new planned Senior Living Care Facility and the future expansion at OSLC. Maximum Lot Coverage Proposed Ecumen Building Existing OSLC Church Building Proposed Ecumen Impervious (Paving) Existing OSLC Impervious (after sale) 55,160 s.f, 31,645 s.f, 68,677 s.f. 76,728 s.f. TOTAL IMPERVIOUS (BUILDINGS/PAVING) 232,210 s.f. Existing PUD Site Size (Ecumen & OSLC) 654,852 s.f. (15.03 acres) MAX IMPERVIOUS (BUILDING + PAVING) ALLOWED = 50% in PUD TOTAL IMPERVIOUS (BUILDING + PAVING) BOTH SITES = 35.4% *If the church were to expand, the total impervious between the both sites considered in this PUD application would increase to 37.0%. (1.6% increase from existing church property after sale + proposed Ecumen property). 2 ECUMEN & OUR SAVIOR'S LUTHERAN CHURCH / CONCEPT PUD APPLICATION Maximum Building Height Ecumen Building Setbacks 35' allowed 33'-4" proposed The proposed building meets all setback requirements for the RA zone and PUD. To the north, the building is beyond the 25' wetland buffer from the wetlands that comprise the northern portion of the site. To the west, the building footprint steps back in response to the angled property line in an effort to maximize the distance between the building and adjacent properties. It is a minimum of 69'-5" from the western property line, which exceeds twice the height of the building. Residential Design This project is appropriate for the site as the building is residential in character and in the way it functions (e.g. it is not an office building, industrial use, etc.). Residential building materials including brick and cement fiber board lap and panel siding will be used to complement OSLC's brick facades and the adjacent, lap sided single family homes. Landscape We will retain all existing healthy trees on site and will plant additional trees and landscaping throughout the site to provide screening and enhance the visual appeal. We will plant a combination of fast growing deciduous and coniferous trees on the west side of the site to maximize screening impact to adjacent homes year round. We will maintain the existing walking path at the west side of the property as this is valuable amenity to the neighborhood, the senior residents, and the Church community. Additionally, we will provide large, green open spaces between the senior living building and the Church as well as on the north side of the senior living building to create outdoor spaces for gathering and recreation to be used by both the Church and residents. Site Lighting The majority of site lighting will be at the driveway and parking lot for safe site circulation. The senior building wraps around the new parking area, which will effectively shield the majority of sightlines to parking lot lighting from neighboring homes. We will complete a photometric study at the time of final PUD approvals to ensure compliance with city ordinances. Parking We will provide a total of 168 parking spaces; 85 in the below grade secure garage, and 83 surface spots. This provides adequate parking for residents, staff and visitors. Also, the surface parking will be connected by a drive aisle to the Church's existing south parking lot and will function as overflow parking for OSLC. Ecumen and OSLC will prepare mutual parking agreements and access easements. Parking stall count meets both the current proposal and the Church's future expansion. Residents in Memory Care and Assisted Living typically do not drive or own cars. Based on previous staff reports it was deemed appropriate to provide 1 per 5 standard, resulting in 14.4 required spaces for these units. For independent units we assume 1 space per unit, resulting in 73 spaces. This is consistent with our other projects in the metro area. There will be a maximum of 30 staff during the day at shift change, and fewer at night. See attached Sheet C2.1 for a detailed parking analysis with total site stall counts including the Church. 3 ECUMEN & OUR SAVIOR'S LUTHERAN CHURCH / CONCEPT PUD APPLICATION Storm water Management Storm water will be handled on site per the requirements of the city and the local watershed district. Engineered drawings and storm water report will be submitted at the final PUD submittal phase. TRAFFIC IMPACT A Traffic Impact Study was completed by SRF for the proposed design and is included in this submission. The study concluded that "no significant approach delays or queuing issues were observed in the traffic simulation" as a result of our project. Additionally, "the proposed site plan including access and circulation is generally well considered." PROJECT BENEFITS Supports the Goals of Stillwater's Comprehensive Plan Within Chapter 4 (Housing) of the Comprehensive Plan, Goals 1 and 2 call for "...planning for a range of new housing opportunities" and "providing a balanced choice of housing types and densities, suitable to a wide range of demographic groups, with a focus on life cycle housing." The objectives of this chapter also support development of higher density infill, encouragement of housing for a range of age levels, and use of the planned unit development process for reviewing innovative development concepts and protecting natural resource areas. Provides Housing Options Seniors to Stay in Stillwater Currently the residents of Stillwater do not have many senior living options in the community in which they live, and often move to adjacent communities for this type of housing opportunity. Market demand for this type of building, regardless of where it is located, often demonstrates that most residents come from a fairly small radius around the building, as residents want to stay close to their friends and family, as well as the city amenities that they enjoy. Based on a 2015 Census Bureau American Community Survey Data, seniors occupy 23% (or 1,275) of the single family homes in Stillwater. As seniors move out of their homes into a senior living building, their former homes are opened up for new families moving to the area. Addresses Market Need / Demand 65+ population in the market area, which includes Stillwater and adjacent communities, is projected to grow over 30% in the next 5 years. By 2021, Stillwater's senior population will increase by approximately 1,500 bringing the total senior population in Stillwater to over 3,700 residents. Currently, there are only 228 nursing home beds in Stillwater to support this population and no options for Active Adult Rentals, Independent Living with some services, Assisted Living or Memory Care in the City of Stillwater. While options are available in Oak Park Heights, Oakdale, Mahtomedi, Woodbury, and White Bear Lake there is a gap within Stillwater of providing a variety of housing options for an aging population. This project address this gap and demand in Stillwater for Independent, Assisted and Memory Care housing. Creates New Jobs in Stillwater Ecumen is recognized as a top employer, having been named "Best Places to Work" nine times by the Minneapolis/St. Paul Business Journal and one of Minnesota's Top Workplaces by the Minneapolis Star Tribune and Minnesota Monthly Magazine. The proposed Senior Living Care Facility will create new jobs in the City of Stillwater for the equivalent of 50 full time employees from nursing staff to housekeeping, culinary to administrative roles. 4 Site Plan aas wilson architects SOUTH BRICK STREET Site Plan 1" = 50'-0" FOUND 112" \RON PIPE FOUND RLS# NOT LEGIBLE 1 EXISTING CHURCH 31,514 ft2 1 iii X TOTAL CHURCH ADDITIONS +15,000 ft2 BUILDING -5,240 ft2 PAVING (net impervious change during addition = +9,760 i I\ 0 00 Ecumen - Stil wa er Stillwater, MN DEVELOPER / PROPERTY OWNER: ECUMEN 3530 LEXINGTON AVE. N SHOREVIEW MN 55126 651-766-4300 MAIN OFFICE ENGINEER / LANDSCAPE ARCHITECT: CIVIL SITE GROUP 4931 W 35TH STREET SUITE 200 ST LOUIS PARK, MN 55416 612-615-0060 SURVEYOR: ACRE LAND SURVEYING, INC. 9140 BALTIMORE STREET NE, SUITE 100 BLAINE, MN 55449 763-458-2997 GEOTECHNICAL ENGINEER: INTERTEK PSI, INC. 2915 WATERS ROAD, SUITE 112 EAGAN, MINNESOTA 55121 651-646-8148 STILLWATER SENIOR STILLWATER, MINNESOTA ISSUED FOR: CONCEPT P.U.D. JABal), Foe o=, Ja4, ckson wrgfife ! 13agerhed'ir Area 0 SITE LOCATION MAP MASTER LEGEND: 1125 X1137.12 1137 41.26 891.00 G 891.00 TC 891.00 BS/TS EOF=1135.52 IIf ■ ■ 1 1..' EX. 1' CONTOUR ELEVATION INTERVAL EXISTING SPOT GRADE ELEVATION 1.0' CONTOUR ELEVATION INTERVAL SPOT GRADE ELEVATION (GUTTER/FLOW LINE UNLESS OTHERWISE NOTED) SPOT GRADE ELEVATION TOP OF CURB (GUTTER TOP) SPOT GRADE ELEVATION TOP OF WALL SPOT GRADE ELEVATION BOTTOM OF WALL DRAINAGE ARROW EMERGENCY OVERFLOW ■ SILT FENCE / BIOROLL - GRADING LIMIT INLET PROTECTION STABILIZED CONSTRUCTION ENTRANCE SOIL BORING LOCATION CURB AND GUTTER (T.0 = TIP OUT) * Eit0 > EXISTING MANHOLE EXISTING CATCH BASIN EXISTING HYDRANT PROPOSED MANHOLE STORM PROPOSED CATCH BASIN OR CATCH BASIN MANHOLE STORM PROPOSED GATE VALVE PROPOSED FIRE HYDRANT PROPOSED MANHOLE SANITARY PROPOSED SIGN PROPOSED LIGHT PROPOSED SANITARY SEWER PROPOSED STORM SEWER PROPOSED WATER MAIN EXISTING SANITARY SEWER EXISTING STORM SEWER EXISTING WATER MAIN EXISTING GAS MAIN EXISTING UNDERGROUND ELECTRIC EXISTING UNDERGROUND CABLE J EXISTING STOPBOX ►t EXISTING GATE VALVE EXISTING ELECTRIC BOX EXISTING LIGHT A EXISTING GAS METER EXISTING GAS VALVE GOPHER STATE ONE CALL WWW.GOPHERSTATEONECALL.ORG (800) 252-1166 TOLL FREE (651) 454-0002 LOCAL SHEET INDEX SHEET NUMBER 00.0 00.1 C2.0 C2.1 C3.0 SHEET TITLE TITLE SHEET SITE SURVEY SITE PLAN OVERALL SITE PLAN GRADING PLAN VT a rlD 4931 W. 35TH ST. SUITE 200 ST. LOUIS PARK, MN 55416 CivilSiteGroup.com Matt Pavek Pat Sarver 763-213-3944 952-250-2003 if aas wilson architects H 0 w 0 a z W ret Oa O z W co Wz u) 2 >w z W W~ W Q J 1 J V Q J z W W ce 3530 LEXINGTON AVE. N, SHOREVIEW MN 55126 I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. Ma thew R. Pavek DATE 6/16/17 LICENSE NO. 44263 ISSUE/SUBMITTAL SUMMARY DATE DESCRIPTION 6/16/17 CONCEPT PUD SUBMITTAL REVISION SUMMARY DATE DESCRIPTION PROJECT NO.: 17055 TITLE SHEET C0.0 ©COPYRIGHT 2017 CIVIL SITE GROUP INC. 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MACY co 032* co • cow LocaS ea CP on co cla CP. co ca CO CO co oo oo co co co 6 co co s. 14, co 0, CO ff, • Crt 0 05 CO CO r- co OD T- r 1 - Ca CO CO CO co o co on aD coo - or co on co 1% 4. co CO 93 co co Z. to co S. co Fre co co or CC 0 co 0 - co VI ral co r .. CO co Cr, oo coz wv- co on 1.4 co co co co o xo co 03r. r co cen on un co cc) On 4 CO 430 34. to cvo CO Cy I CO 00 1 1 1 1 1 los o I ci 0 0c1 - GO csa CO or co co to 7 co (19 kin CD •CO 01. DO DO co CO 03 co 05 00 1. o m 05 Ls_ 03 z 0 0 ao o 10 0 o uj .0 0 .= o ro o En. v:kia ro ro Cr CU cA ro c=c Lr. ra ro 0 ar 2 EL CD a o. co ro 13 6- The fieldwork was completed on 03/08/17. 0 E Date of Map: March 22nd, 2017 0 Loi di E 41; 111 RiSU wbi02 INw ice -J rZ JOB 117076 1124157 AM CDT Cs\Users\erlc j\©neDrIve\CAD-1D\17076stlllwa ter-Senior-Kaas\dwg\170761andry-alta.dwg 1 1 / 1 1 / / 1 i 1 1 I I I / I / FOUND 1/2" IRON P PE • • • EXISTING BIT. WALKING PATH • • • 011111111111*** ■ ■ -}am }am 7IIINFILTRATION BASIN 1 • . ■ EXISTING BIT. WALKING PATH FQ\J 0 '1 /2' IRON PIPE • • . iv ■ ■ ■■■e Ail weDEN OSE 11 ALKA A ;�MW W.\ Q■..\' \.■... iik A■r,/ 'roman. MAIIIII, Am ...... ■. MIFF ■ 1 ■ MATCH EXISTING BIT. WALKING PA1t1 ■ ■ ■ 1041 25' WETLAND BUFFER . ■ .// 0 N 1 =•111 .-==1„ i DROP-OFF / VALET PULL IN -'i ■ ■ ■ ■ rrr 1-7 ■ WETLAND BOUNDARY ■ os SO3 ■ c�. DROP-OFF / VALET PULL IN 0.��■■■■■■■■■■■■■■■■■■■■■ INFILTRATION BASIN 2 OP RLS# NOT LEGIBLE FOUND PROPOSED NEW PROPERTY - 3.184 N82° 10' 28.74 MATCH EXISTING CURB AND GUTTER, TYP. 4,7 �o. 24.0' TYP. MEW 311 al EEL /11711111741± MATCH EXIST NG PARKING LOT PVMT, TYP. a 9.0' TYP. �i1M■■■■■ IVT \ .r ..IEWU \ !..■_, is `V1 Q R3.0' • i 25' WETLAND BOUNDARY TLAND BUFFER ST • 4/0 ........" ) RLS#10938- per% FLOC 860.75 i' INV 856.85 1 fi 55448 --- UTI ITY 8---- - UTILITY EASEMEN, ER DOC. 589804 3(SEE SCHEDUI. I Jc BIT. PAVEMENT` TYP. ■■■■■.. AllEEEEEIPEEI-- '1 .i..■■r - -I.. . o. E. - ■■W OPEULIIRiinnlyi vA .......a.. ii.......■. =EMMEN ME EML 0 -.? 711...E NEL.. iii=ii- PROOF OF PARKING -> 14 SPACES 'L_IITIL ■■■.• ■■■■■■■■■■■■■■J■■■■■■■■■■■■■■■■■■■■ ■■■■■w.�ui---. �1 .■i- t ley ■r . . 'WM. •40/11.1 • 1 H-2 NOTES) UNDERGROUND PARKING LOT ENTRACNE / EXIT 600 SF TRUCK LOADING AREA • • •• • B6-12 CURB AND GUTTER, TYP. ` N1 /7 of SE1 //1 =L0 NV W- =8 37; 38. .43s 3 =ID MID WALKWAY & LAWN AREA ADJACENT TO EXISTING PLAYGROUND, FOR MULTI -GENERATIONAL MINGLING 498.660 _ N88° 30' 49.07"W VE �Y EXISTING BUILDING `fork' 14_'t_t MID 0 154.2' ✓ 4 4/j, ,)S7A 1 .13 co O 11 MATCH EXISTING CURB AND GUTTER, TYP. PROPOSED NEW PROPERTY EX.BLDG. • _ MONUMENT SIGN S.E. CHURCH LOT 58 SPACES \ \ \ \ stc\s \ \ \ M N SITE LAYOUT NOTES: 1. CONTRACTOR SHALL VERIFY LOCATIONS AND LAYOUT OF ALL SITE ELEMENTS PRIOR TO BEGINNING CONSTRUCTION, INCLUDING BUT NOT LIMITED TO, LOCATIONS OF EXISTING AND PROPOSED PROPERTY LINES, EASEMENTS, SETBACKS, UTILITIES, BUILDINGS AND PAVEMENTS. CONTRACTOR IS RESPONSIBLE FOR FINAL LOCATIONS OF ALL ELEMENTS FOR THE SITE. ANY REVISIONS REQUIRED AFTER COMMENCEMENT OF CONSTRUCTION, DUE TO LOCATIONAL ADJUSTMENTS SHALL BE CORRECTED AT NO ADDITIONAL COST TO OWNER. ADJUSTMENTS TO THE LAYOUT SHALL BE APPROVED BY THE ENGINEER/LANDSCAPE ARCHITECT PRIOR TO INSTALLATION OF MATERIALS. STAKE LAYOUT FOR APPROVAL. 2. THE CONTRACTOR SHALL OBTAIN ALL NECESSARY PERMITS PRIOR TO CONSTRUCTION, INCLUDING A RIGHT-OF-WAY AND STREET OPENING PERMIT. 3. THE CONTRACTOR SHALL VERIFY RECOMMENDATIONS NOTED IN THE GEO TECHNICAL REPORT PRIOR TO INSTALLATION OF SITE IMPROVEMENT MATERIALS. 4. CONTRACTOR SHALL FIELD VERIFY COORDINATES AND LOCATION DIMENSIONS OF THE BUILDING AND STAKE FOR REVIEW AND APPROVAL BY THE OWNERS REPRESENTATIVE PRIOR TO INSTALLATION OF FOOTING MATERIALS. 5. LOCATIONS OF STRUCTURES, ROADWAY PAVEMENTS, CURBS AND GUTTERS, BOLLARDS, AND WALKS ARE APPROXIMATE AND SHALL BE STAKED IN THE FIELD, PRIOR TO INSTALLATION, FOR REVIEW AND APPROVAL BY THE ENGINEER/LANDSCAPE ARCHITECT. 6. CURB DIMENSIONS SHOWN ARE TO FACE OF CURB. BUILDING DIMENSIONS ARE TO FACE OF CONCRETE FOUNDATION. LOCATION OF BUILDING IS TO BUILDING FOUNDATION AND SHALL BE AS SHOWN ON THE DRAWINGS. 7. THE CONTRACTOR SHALL SUBMIT SHOP DRAWINGS OR SAMPLES AS SPECIFIED FOR REVIEW AND APPROVAL BY THE ENGINEER/LANDSCAPE ARCHITECT PRIOR TO FABRICATION FOR ALL PREFABRICATED SITE IMPROVEMENT MATERIALS SUCH AS, BUT NOT LIMITED TO THE FOLLOWING, FURNISHINGS, PAVEMENTS, WALLS, RAILINGS, BENCHES, FLAGPOLES, LANDING PADS FOR CURB RAMPS, AND LIGHT AND POLES. THE OWNER RESERVES THE RIGHT TO REJECT INSTALLED MATERIALS NOT PREVIOUSLY APPROVED. 8. PEDESTRIAN CURB RAMPS SHALL BE CONSTRUCTED WITH TRUNCATED DOME LANDING AREAS IN ACCORDANCE WITH A.D.A. REQUIREMENTS -SEE DETAIL. 9. CROSSWALK STRIPING SHALL BE 24" WIDE WHITE PAINTED LINE, SPACED 48" ON CENTER PERPENDICULAR TO THE FLOW OF TRAFFIC. WIDTH OF CROSSWALK SHALL BE 5' WIDE. ALL OTHER PAVEMENT MARKINGS SHALL BE WHITE IN COLOR UNLESS OTHERWISE NOTED OR REQUIRED BY ADA OR LOCAL GOVERNING BODIES. 10. CURB AND GUTTER TYPE SHALL BE B612 UNLESS OTHERWISE NOTED ON THE DRAWINGS -TAPER BETWEEN CURB TYPES -SEE DETAIL. 11. ALL CURB RADII ARE MINIMUM 3' UNLESS OTHERWISE NOTED. 12. CONTRACTOR SHALL REFER TO FINAL PLAT FOR LOT BOUNDARIES, NUMBERS, AREAS AND DIMENSIONS PRIOR TO SITE IMPROVEMENTS. 13. FIELD VERIFY ALL EXISTING SITE CONDITIONS, DIMENSIONS. 14. PARKING IS TO BE SET PARALLEL OR PERPENDICULAR TO EXISTING BUILDING UNLESS NOTED OTHERWISE. 15. ALL PARKING LOT PAINT STRIPPING TO BE WHITE, 4" WIDE TYP. 16. BITUMINOUS PAVING TO BE "LIGHT DUTY" UNLESS OTHERWISE NOTED. SEE DETAIL SHEETS FOR PAVEMENT SECTIONS. 17. ALL TREES THAT ARE TO REMAIN ARE TO BE PROTECTED FROM DAMAGE WITH A CONSTRUCTION FENCE AT THE DRIP LINE. SEE LANDSCAPE DOCUMENTS. CITY OF STILLWATER SITE SPECIFIC NOTES: 1. RESERVED FOR CITY SPECIFIC NOTES. SITE PLAN LEGEND: - - - ti' • LIGHT DUTY BITUMINOUS PAVEMENT HEAVY DUTY BITUMINOUS PAVEMENT CONCRETE PAVEMENT AS SPECIFIED (PAD OR WALK) PROPERTY LINE CONSTRUCTION LIMITS CURB AND GUTTER -SEE NOTES (T.O.) TIP OUT GUTTER WHERE APPLICABLE -SEE PLAN TRAFFIC DIRECTIONAL ARROWS SIGN AND POST ASSEMBLY. SHOP DRAWINGS REQUIRED. HC = ACCESSIBLE SIGN NP = NO PARKING FIRE LANE ST = STOP CP = COMPACT CAR PARKING ONLY GOPHER STATE ONE CALL 7.. WWW.GOPHERSTATEONECALL.ORG (800) 252-1166 TOLL FREE (651) 454-0002 LOCAL 1" = 40'-0" 20'-0" 0 40'-0" CD LLD 4931 W. 35TH ST. SUITE 200 ST. LOUIS PARK, MN 55416 CivilSiteGroup.com Matt Pavek Pat Sarver 763-213-3944 952-250-2003 Ft aas wilson architects 0 Lu 0 0_ z 0 w `;) 111 2- UEJ LLI ce LLI 3530 LEXINGTON AVE. N, SHOREVIEW MN 55126 I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. Ma thew R. Pavek DATE 6/16/17 LICENSE NO. 44263 ISSUE/SUBMITTAL SUMMARY DATE DESCRIPTION 6/16/17 CONCEPT PUD SUBMITTAL REVISION SUMMARY DATE DESCRIPTION PROJECT NO.: 17055 SITE PLAN C2.0 ©COPYRIGHT 2017 CIVIL SITE GROUP INC •�rE Ir\• '� 8s5: 1 89.6i�"o N." % • S#10938 / 1 L ( 3 } M }aM lam ■ 41 FOUND 1/2" IRON P a ffin QM 1 1 3 • FOUND RLS#10938-- �qn- M- M alb tl� FLOW=860.7 INV.=856.85 861.4 SMH INV -12 ■ -- 60 - ---- 50.9 - FOUND 1/2" IRON PI ""� NOT fOUN LEGIBLE' `193.184 N82°1074 W at 17 • • • ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 1 ■ ■ ■ MENU MIN FO ND /2" IR N PE -LOW- 375..43 NV =838.63 .-v°.i=8t.4461 I L0�W=867.37 7 868.6 498.660 N88° 30' 49.07"W EXISTING BUILDING O EHEC PNS ❑ 6'•(•421„,....›, ,RIM=868.76 1 INV.=861.80* 1 0" pgirtirg (couldn't find manhole RIM=873.07* > > INV. -I RIM=868.00 INV.=862.80 Y _I -LOW= 86715.5_ FLOW=868.2 INV.=865.13* 36"(inv=7.') X.BLDG. N &s. IMO 12"( inv=6,6) WET OLIVE STREET C.S.A.H. NO. 5) Li FLOW=86 IM 04 V) 0 4000 x 873.8 CHK RIM=871.13- INV.=863.83 04 FLOW=869.87 INV.=866.37 -- 50.9 R 4.4 ►1. RIM=861.36 INV.=849.36 8642' W. RAMSEY ST! INV.= 855.45 --- 50 ----- 50 - 871.1 SMH-INV 7.3 O RIM=870.77 INV.= 865.42* 8-10,2„S RI 70.88 FLOW=869.88 G INV.=X169.28 PARKING CALCULATIONS: PARKING ANALYSIS 6.14.2017 OSLC - church site Current sanctuary seats 36 Current parking required 36 Current SE/SW parking stalls 177 Future expansion sanctuary seats 650 Future expansion parking required 217 Future expansion parking available on church site 164 Ecumen - senior living site MC units 36 AL units 36 IL units 72 MC/AL parking required (1:5) 14 IL parking required (1:1) 72 TOTAL RESIDENT PARKING REQUIRED 86 Max. anticipated staff @ shift change 30 Guest parking (estimated) 30 TOTAL ECU MEN PARKING DEMAND 146 Ecumen garage stalls 85 Ecumen site stalls 83 TOTAL ECU MEN PARKING AVAILABLE 168 COMBINED OSLC (w/ expansion) AND ECUMEN PARKING DEMAND 363 REQUIRED PARKING (REDUCED BY 10% FOR SHARED PARKING) 327 TOTAL Ecumen (gar/surf.) stalls + church existing (no exp.) 332 SURFACE PARKING - OSLC w/ expansion + Ecumen 247 * This surface parking exceeds OSLC (w/expansion) parking demand by 31 stalls, which still should accommodate staff parking and 5guest parking if peak demand coincides. An additional 14 proof of parking stalls could be added in the future if needed. • 11 GOPHER STATE ONE CALL WWW.GOPHERSTATEONECALL.ORG (800) 252-1166 TOLL FREE (651) 454-0002 LOCAL 1" = 60'-0" 30'-0" 0 60'-0" G L © e 4931 W. 35TH ST. SUITE 200 ST. LOUIS PARK, MN 55416 CivilSiteGroup.com Matt Pavek Pat Sarver 763-213-3944 952-250-2003 Ft y aas wilson architects 1- 0 w O 0 Z W ce E 00. O N Z 1Xa O wJ �' WZ LJJ W 1 a~ :T3) Z 71. W Q W c Z w V w 3530 LEXINGTON AVE. N, SHOREVIEW MN 55126 I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. Matthew R. Pavek DATE 6/16/17 LICENSE NO. 44263 ISSUE/SUBMITTAL SUMMARY DATE DESCRIPTION 6/16/17 CONCEPT PUD SUBMITTAL REVISION SUMMARY DATE DESCRIPTION PROJECT NO.: 17055 OVERALL SITE PLAN C2.1 ©COPYRIGHT 2017 CIVIL SITE GROUP INC. 8587 t 85V1! .4//X863 \85 i ! \ 7.\ \ 855.4/ 1 51,4 /\ \ 59\\ I 6z1 \8 V X36 855.1 44- `/854.9 `854,9 /1)(W 'C3'N 8q8.7 • 1 / 854,8 1 / ``__g66 t 86/1)( 86 /,6 /855.1/ /1/ / i / / 854 / 1 853.2 Y 854..54 854 854.5 ;5.5 -OUND 1/2" X$ 8514 8 36RCP 862 p\IJN KG \ DCS 1)0•,,,1 EXISTING POND// N WL= 856.2 / HWL=860.5 L----- 955.0 XS\ 8588 \ rc\ `0X86 \\> \ 1 I / \ \ \ 951 3 1 8 EROSION CONTROL NOTES: SEE SWPPP ON SHEETS SW1.0-SW1.5 859.0 851 i 84.0'2-.(3 IX 8 862,4 859.2, 9514 858.6, i X 951'3 5351.4 / g62� 5-s s1 us 5 8 -- X------- a / `20' 4 --------'4-.(7----14-41__--,--x___ __iveaE,7 a,i, i 3 858.7`. / ___---96V-6g0 T. .65'-- 9 X8688 // 'c863' 862 ....„i62.,6 962' c9 X86 0 1� /6C1\- c � \ / g6 / x 859.5 96251 860.2L/ 859 9 860.4 2p ti� 8860,1 863,5 A` AG 859.5 GROUNDWATER INFORMATION: PER GEOTECHNICAL REPORT BY INTERTK PSI, INC., DATED 03-03-17 GROUNDWATER WAS NOT OBSERVED IN BORINGS RANGING FROM XX FEET TO XX FEET DEEP. 863,1 60.8 86 '61,0 5, 65 • , a6S��g6Q'� 869.8 861,7 861,461 860.2 X86 861.6 n1 861 20, 7 X61/0 // ^ / l/ l r i i%/18- XB -19 - --__ `-"----4,-----__Q61.2 ---(, --- \ 61,6 859,5 -__ 861,4 \ 0 87 �.t`-` \\\\ \\\\ \\y([ :� NN N'''''"•� \\ \\ `\ � vv \\ vv .\\•-, ti \� I I 859.8 CITY OF STILLWATER GRADING NOTES: 1. RESERVED FOR CITY SPECIFIC GRADING NOTES. 859.8 863.6 8 / / / Eft INF LTRATION BA IN 1 4B-1 59,4 59,3 963.8 do 59.5 /a 12 859.5 11,X891,8 •1 SB -2 . I / `\ \ \ \ \ 0008 \ 159.1 59.6 / / / / 8,1 \� X\86 \ 0 JaM 963,6 /aM ST • 860.2 CONSTRUCTION LIMIT 40,4 1 / / / 871 SB g8 X8 859.9 N860'2 \859.6 • 9630 /00 d60.2 878 877 878_ 875 880 879 .41/11.1 880.54 1,M11100.643.11.1111****** 43.■■■■■■■■..•. 879.90 \ \ 859.5 6 86z � 962-/+ ► g62' 1k 962:a- 962.° 62,2962,0 860.6 \ \• 81.9 8832- . BBo 880.00 580. y.,► _ _ ■ r+ ��� 1'7 ■ -75.40 000500 880.33- ,9 • • 878so HP 519 SB \ `\ �\ \ \ ` m, 859.9 FOUND RLS#10938- p-_ 2153 Z $� 858.8 TC ems/ 1I1111Ii11111h1 Iiii:I1 Undlindi 8P77.00 L 8*4 ApENII AIMMENNIMINEMENNEr MI . � ... NE I . ENE= 1 G iir IN==E1 �. it MI �:ME=:1 11111 • IN All MEMig .WV �AMEN/ ilbMEP,/ •i rt 102'-2 3/4" 170'-81 /4" INFILTRATION BASIN 1 173'-4 3/16" 248'-1011/16" PROPOSED BUILDING CONSTRUCTION LIMIT co 0 AWIIM7M— \M-d(sA 223'-3 3/4" c�. c�. RV INFILTRATIO BASIN 2 68'-8" 164'-8 9/16" 0 0 0 O 0 0 0 O ti \V� CONSTRUCTION LIMIT Site Plan with Dimensions 1/32" = 1'-0" aas wilson architects Ecumen te Plan with Dimensions Ecume - Stillwa er Stillwater, MN INFILTRATION BASIN 1 PROPOSED BUILDING CONSTRUCTION LIMIT Mai 41 i aas wilson architects Ecumen Site Aerial Ecumen - Stil wa er Stillwater, MN VA =1 OLevel -1 1" = 20'-0" UNEXCAVATED E UNEXCAVATED v. 005 Tras 004 Elev. Lobby 002 Staff Breakroom 003 Lx 0 45 46 41 47 40 48 39 49 38 50 37 51 36 52 LI Li 35 53 34 54 33 55 32 56 31 57 30 58 29 Garage 001 59 28 60 27 61 LI LSI [. 1 62 63 ori 64 Key Common SD 50* 82 Stair 090 83 84 85 4 3 2 1 MUA [1, Ecumen I� SD 501' Garage Ecumen - Stillwater Stillwater, MN Unit 0-6 SD_50 Level 1 151 Unit 0-2 MC 150 Unit 0-3 149 Unit 0-3 148 Unit 0-2 MC Unit 0-1 Unit 0-1 Unit 0-1 Unit 0-1 SD_502 154 Unit 0-1 145 Unit 0-6 0 155 156 157 Unit 0-7 Unit 0-7 Unit 0-1 Unit 0-1 MC Dining Unit 0-1 158 Unit 0-5 159 Unit 0-1 160 Unit 0-1 161 Unit 0-1 SD_502 Porch Kitchen PATIO Bistro Community Room 175 SD_502 105 Unit 3-2 IL 106 Unit 1-1 IL Unit 3-1 IL SD_50 SD_502 142 Unit 0-1 ES s h cubbies ES MC Dayroom ani/Pe . i SD_503 Unit 0-2 MC 136 Unit 0-3 135 Unit 0-3 Unit 0-2 MC 141 Unit 0-1 140 Unit 0-1 138 139 Unit 0-1 Unit 0-1 MC Activities 186 MC Activities Unit 0-1 126 Unit 0-1 �itness Lobby 166 Unit 2-1 IL 127 Unit 0-1 Unit 0-6 LJ L.!I Mail/Lounge Unit 2-1 IL Unit 2-1 IL Unit 3-7 IL Unit 3-2 IL 130 Unit 0-1 131 Unit 0-1 Unit 0-4 SD_503 0 SD 500' ISD 500 SD_50 Key Common IL MC MC Commons Unit 3-9 IL Unit 3-2 IL SD_501 Unit 2-1 IL Unit 3-3 IL 115 Unit 2-6 IL 112 Unit 3-5 IL SD501 1" = 20'-0" aas wilson architects Ecumen I� SD_501 First Floor & Site Plan Ecumen - til wa er Stillwater, MN SD_502 254 VA V Level 2 1" = 20'-0" 250 Unit 2-2 AL Stair 299 252 Unit 2-3 AL Unit 2-9 AL 256 Unit 2-8 AL SD 50 235 Unit 2-2 AL 1 6 1 Stair 298 234 Unit 1-2 AL SD_503 233 Unit 1-2 AL 258 Unit 3-6 AL 260 Unit 1-2 AL SD_502 7 AL Dining Room 100 Stair 297 226 Unit 1-2 AL 228 Unit 1-2 AL 230 Unit 1-2 AL 232 Unit 3-4 AL L tL 201 Unit 1-2 IL AL Living Room 225 SD_500 202 Unit 2-5 IL 203 Unit 1-2 IL 204 Unit 1-2 IL 224 Unit 1-1 IL 223 Unit 3-2 IL SD_502 205 Unit 3-2 IL 222 Unit 3-2 IL SD_500 221 Unit 1-1 IL L1— 220 Unit 2-1 IL Key AL Common IL j S D_501 Stair 296 214 Unit 4-1 SD 501 aas wilson architects Ecumen I� SD_501 Second Floor Ecumen - Stil wa er Stillwater, MN Third Floor A 320 Unit 2-1 IL 305 Unit 3-2 IL 348 Unit 3-1 IL 358 Unit 3-6 IL 356 Unit 2-3 IL 354 Unit 2-3 IL 350 Unit 2-1 IL VA V SD_50 Level 3 1" = 20'-0" -L Stair 399 352 Unit 2-7 IL SD 502 \v4/ 346 Unit 3-8 AL SD_50 SD 502 SD_50 SD_503 2 340 Unit 3-2 AL 336 Unit 2-2 AL 338 Unit 2-4 AL 337 Unit 2-3 AL 335 Unit 2-2 AL L___ Stair 398 334 Unit 1-2 AL S D_503 360 Unit 1-2 AL y SD_502 300 Unit 3-4 IL V1/ Stair 397 326 Unit 1-2 AL 328 Unit 1-2 AL 330 Unit 1-2 AL 333 Unit 1-2 AL 332 Unit 3-4 AL 301 Unit 1-2 IL 325 Unit 1-1 IL SD_500 302 Unit 2-5 IL 324 Unit 1-1 IL 303 Unit 1-2 IL u 323 Unit 3-2 IL 304 Unit 1-2 IL I ,SD 502 322 Unit 3-2 IL SD_500 321 Unit 1-1 IL Key aas wilson architects Ecumen I� AL Common IL SD_501 Stair 396 314 Unit 4-1 SD 501 SD_501 Ecumen - Stil wa er Stillwater, MN Exterior Elevations" LAP SIDING PANEL SIDING BRICK VENEER LAP SIDING LAP SIDING LAP SIDING PANEL SIDING LAP SIDING ___ __ 111111111 7I 11111111111111 1 IIIIIIIIIIIIIIIIII 111111111111111111111111111111111111111111111111111111111111 / 1 ■ I 11 11 11 i 1 1 11 11111111111 11 I == 111111111111W=Sili 11111111 _ __ --- ■ I 11 11 111 1 ■ F "IIIIIIII Truss Brq. 131'-5 5/8" PANEL SIDING Level 3 AL 122'-3 3/4" __— __ __ I___ I,■ Ii111111111111 111111111111 Level 2 all 111'-1 7/8" Elevation 1 - a 1/8" = 1'-0" BRICK VENEER LAP SIDING BRICK VENEER BRICK VENEER Level 1 100'-0" Z"," BUILDING HEIGHT PANEL SIDING PANEL SIDING PANEL SIDING LAP SIDING LAP SIDING LAP SIDING LAP SIDING LAP SIDING LAP SIDING PANEL SIDING 111111111111111111111111111111111111111 == 1111111111111111111E—w — !1111111■1111111111111■1111111111111 ------ = _IIIIIIIIIIIIIIIIIIII� -- _— __ LI' lIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIi 11111111111111111111111111111111111111111111111111111111111111111111111111 _I =_ .-� ■ _• �M �-- _• - 11.■111__ I 111111 a--- = 111111111111 == 11111111111 =_— ■ _ MI - �___ IIID• ----.- • - --� ~— Ara =_3111 11111E _rwilm __•=r•__ BRICK VENEER Elevation 17 - a BRICK VENEER - BRICK VENEER LAP SIDING PANEL SIDING ~-_-_-_- 1111E==== IIIIIIIIIIIIIIIIIIIIIIIIIIIIII■1111111 _�IIIIIIIIIIIIIIIIIIII• — �- __. _. ---1 M41111111111111111111111111111=11111111 -_-_ -• --! �_= � BRICK VENEER BRICK VENEER PANEL SIDING MIMI 1111111111111 1 1111111111111111111111111111111111111111111 1 1 1 1111111111111111 1 Ir PANEL SIDING • • mAMMMEM • 111111111111111111111111111111111111111111 1 1 • loploom 1 11 111 BRICK VENEER BRICK VENEER Truss Brg. 131'-5 5/8" Level 3 122'-3 3/4" Level2 111'-1 7/8" Level 1 LAP SIDING Truss Brq. AL Level 3 'MINN!!! 1 INI 1 11111111 BRICK VENEER Elevation 3 - a ri BRICK VENEER BRICK VENEER Level 1 AL Level -1 AL Ecumen Ecumen Stillwater, MN Exterior Elevations" LAP SIDING PANEL SIDING BRICK VENEER COLORED ARCHITECTURAL CMU LAP SIDING PANEL SIDING LAP SIDING 9 11 00000011 IME 11 11 11 11 11 I I 11:1 - ELM Mal 1 1111111 11111111111111111 111111111 MEME •__ =ft____ • N••• l • ig 1111111111111111 / 11111111111111■I 1 1 ®PQM ---- MEN ___. __MEN �1 MMIMM �1 --�1 _- �_. _=MIMM __ MEN 11 11 11 11 11 1 ___ ___, __ ___. r„rmw waw � iioiiiiiiiiii•iii ii■iiiiiiiiiliio■ ---'--iiiiiiii=am= - Elevation 4 - a 1/8" = 1'-0" Truss Brq. 131'-5 5/8" PANEL SIDING Level 3 4:* 122'-3 3/4" Level2 111'-1 7/8" BRICK VENEER Level 1 100'-0" COLORED ARCHITECTURAL CMU LAP SIDING PANEL SIDING PANEL SIDING PANEL SIDING BRICK VENEER COLORED ARCHITECTURAL CMU LAP SIDING IL __ ME ME ME LAP SIDING — PANEL SIDING BRICK VENEER r r MONI MEN 1 1 Hilil 1 11 i 11 11 11 11 i MmINI • ME 111111111111 11 11111111 111111111111 11 11111111 111111111111 1 11111111 1 11111111 1 1 1 rmw— IMEMIN 11 11 11 LAP SIDING i PANEL SIDING 1 1 1 1 1 1 LAP SIDING 1 1111111111 LAP SIDING 1111111111 __ ---- 1= WMEIN. 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I_I ■�_� ENNI ��'111 �_-• - x.111 _-- -- �__ _: __ o— : I _ .____I— —__■ -I_ � Al Ecumen Stillwater Unit Mix 6.29.2017 Assisted Living 1 BR 12 1 BR + Den 16 2BR 8 Independent Living 1 BR 17 1 BR + Den 19 2BR 37 Memory Care Studio 36 TOTAL 145 aas wilson architects r A PARKING ANALYSIS 6.29.2017 aas wilson architects OSLC - church site Current sanctuary seats 36 Current parking required 36 Current SE/SW parking stalls 177 Future expansion sanctuary seats 650 Future expansion parking required 217 Future expansion parking available on church site 164 Ecumen - senior living site MC units 36 AL units 36 IL units 73 MC/AL parking required (1:5) 14 IL parking required (1:1) 73 TOTAL RESIDENT PARKING REQUIRED 87 Max. anticipated staff @ shift change 30 Guest parking (estimated) 30 TOTAL ECUMEN PARKING DEMAND 147 Ecumen garage stalls 85 Ecumen site stalls 83 TOTAL ECUMEN PARKING AVAILABLE 168 COMBINED OSLC (w/ expansion) AND ECUMEN PARKING DEMAND 364 REQUIRED PARKING (REDUCED BY 10% FOR SHARED PARKING) 328 TOTAL Ecumen (gar/surf.) stalls + church existing (no exp.) 332 SURFACE PARKING - OSLC w/ expansion + Ecumen 247 *This surface parking exceeds OSLC (w/expansion) parking demand by 30 stalls, which still should accommodate staff parking and 5 guest parking if peak demand coincides. An additional 14 proof of parking stalls could be added in the future if needed. (117/SW lot, 58/SE lot) (short 53 stalls, but shared surface parking w/ Ecumen site) * + 14 proof of parking available * "excess" of 21 stalls, without 14 proof of parking stalls required at time of expansion PROVIDED Impervious Analysis 6.30.2017 aas wi lson architects EXISTING Area (ft2) 654,815 Existing site - Church & Radio Tower (15.03 acres) 654,815 87,445 Existing radio tower property (3.55) 154,652 654,815 Existing structure 400 87,445 Total Existing impervious / radio tower property 400 0.26% Existing church property (11.48 acres) 500,163 654,815 Existing church building 31,514 87,445 Existing church paving 106,462 144,489 Total Existing Church Property impervious 137,976 27.59% PROPOSED 474,127 654,815 Church property after sale (4.15 acres) 180,688 87,445 Existing church building 31,514 144,489 Existing church paving 75,809 231,934 Ecumen Property after sale (10.88 acres) 474,127 654,815 Ecumen Building 55,931 87,445 Ecumen Paving 68,680 144,489 Combined sites - considered jointly under PUD Total Site 654,815 Church property (4.15 acres) Total Building 87,445 Church w/ addition building Total Paving 144,489 Church w/ addition paving Total lmpervious 231,934 35.42% FUTURE 474,127 654,815 Church property (4.15 acres) 180,688 102,496 Church w/ addition building 46,565 139,198 Church w/ addition paving 70,518 241,694 Ecumen Property (10.88 acres) NO CHANGES 474,127 654,815 Ecumen Building 55,931 102,496 Ecumen Paving 68,680 139,198 Combined sites - considered jointly under PUD Total Site 654,815 Total Building 102,496 Total Paving 139,198 Total lmpervious 241,694 36.91% (of currently owned land) PKEL1MINXKY SITE PLAN IS : ©2008 STAT1ON19 ARCHITECTS, INC. c31 0 w , co 9K!, rrr. N 89'20'08" Bmf N Law rooms 1H111I1I1I11111111 SW PRELIMINARY FULL SITE MASTERPLAN CONCFPT OUR SAVIOR'S LUTHERAN CHURCH, STILLWATER. MN 42008 STATION NINETEEN ARCHITECTS, INC. 8/24/08 TWI' ea M NORTH E PKEL1M1N)KY BUILDING PLAN ©2008 STAT1ON19 ARCHITECTS, INC. NW ADDITION 4+ 74(20 SE `° W/ rD' SEF/ E GROWTH ON UPPER I FVFI POSSFBI F NF ADDITION (1 STORY 01680 SF SHOWN) Walk to CCM mrri Lyda,. Utall Vona LLICLIAC. g7//////////////1 a]L9rr riirOimf •halOdmER MatlGOMM / billfihEn eamuscsiml u a e1. SALOm euraxr SW ADDITION + S f Fi0 SF n Y CCYz='NvREASE.OF REMODEL SANCTUARY TO CHAPEL CLASSROOM/ OFFiE areGE f:CAB12- A6H ►t� 'l' / 1 ►IA ►� r k O► CRbIT YALDa[!IQ OUR SAVIOR'S LUTHERAN CHURCH, STILLWATER. MN 02008 STATION NINETEEN ARCHITECTS, INC. 8/24/08 TWP 14E57 -OLIVE 5rEE. 0 10' 20' 40' ORTh PK€L!M1N)KY €L€V)J1ONS ©2008 5TA,710N19 AKC k 1TE CTS, 1NC. +rte -meal vim+ Ploy u -deb 1 WINO Consulting Group, Inc. E NGINEERS P LANNERS D ESIGNERS To: Anne Stanfield, Director of Business Development ECUMEN From: Jeff Bednar, TOPS, Senior Traffic Engineering Specialist Date: May 26, 2017 Subject: ECUMEN-STILLWA1LR SENIOR HOUSING DEVELOPMENT TRAFFIC IMPACT STUDY Introduction Memorandum SRF No. 01710489 As requested, SRF has completed a traffic impact study (TIS) for the proposed Ecumen-Stillwater Senior Housing Development, located west of Brick Street and north of Our Savior's Lutheran Church (with shared access to Olive Street) in Stillwater, Minnesota (see Figure 1: Project Location). The TIS includes development plans for 73 independent senior living units, 36 assisted senior living units and 36 memory care units on approximately 5 acres (see Figure 2: Proposed Site Plan). The primary objectives of the study are to review existing operations within the study area, evaluate future traffic impacts to the adjacent roadway network and recommend any necessary improvements to accommodate the proposed development. The following information providing the assumptions, methodology, analysis and study conclusions and recommendations, is offered for your consideration. Existing Conditions The existing conditions were reviewed to establish a comparative baseline and determine any future impacts associated with the proposed development. The evaluation of existing conditions includes peak hour intersection turning movements, field observations and an intersection capacity analysis. Data Collection Weekday a.m. and p.m. commuter peak period and Sunday a.m. church peak period vehicular turning movement and pedestrian/bicyclist counts were collected at the following study intersections on Sunday, April 30, 2017 through Wednesday May 3, 2017: • Myrtle Street (CSAH 12)/Brick Street • Brick Street/Ramsey Street • Olive Street (CSAH 5)/Brick Street • Olive Street (CSAH 5)/Our Savior's Lutheran Church Site Access Observations were also completed to identify roadway characteristics within the study area (i.e. roadway geometry, posted speed limits, and traffic control). Supporting roadways have posted speed limits that are generally 30 mph throughout the study area. The existing geometries, traffic control, and traffic volumes are shown in Figure 3: Existing Conditions. ONE CARLSON PARKWAY, SUPIE 150 MINNEAPOLIS, MN 55447 763.475.0010 WwEV.SRPCONSULTING.COM 11:1N1 Project Location Consulting Group, Inc Ecumen-Stillwater - Traffic Impact Study 10489 May 2017 Ecumen 1 City of Stillwater, Minnesota Figure 1 a N N1 Proposed Site Plan Con Hing Group, Ing Ecumen-Stillwater - Traffic Impact Study 10489 May 2017 Ecumen I City of Stillwater, Minnesota Figure 2 \Projects\10489\TS\Figures\Figure 3 — Existing Conditions Weekday AM Peak Hour Intersection Movement Volu mes Weekday PM Peak Hour Intersection Movement Volu mes Sunday AM Peak Hour Intersection Movement Volumes g Existing Conditions Figure 3 Consulting Group, Inc Ecumen-Stillwater - Traffic Impact Study 10489 May 2017 Ecumen 1 City of Stillwater, Minnesota Anne Stanfield, Director of Business Development, ECUMEN ECUMEN - STILLWATER SENIOR HOUSING DEVELOPMENT TRAFFIC IMPACT STUDY May 26, 2017 Page 5 The existing roadway characteristics shown in Table 1 identify the functional class, generalized typical cross-section, posted speed limit, roadway right-of-way (ROW) width and Annual Average Daily Traffic (AADT) volume for the study area roadways. Additional details and discussion will be included in the Site Access and Circulation Review section and the Conclusions and Recommendations Summary of this memorandum. Table 1. Existing Roadway Characteristics Street Name Myrtle Street (CSAH 12) Brick Street Functional Class Typical Cross -Section (1) Posted Speed Right -Of -Way (2) Minor Arterial 2 -lane Undivided Ramsey Street Olive Street (CSAH 5) Local Street Local Street Minor Arterial 2 -lane Undivided AADT (3) 30 M P H 60' to 160' 30 MPH 50' to 60' 2 -lane Undivided 2 -lane Undivided 30 MPH 60' 30 MPH 40' to 60' 6,500 2,250 70* 8,600 (1) Typical cross-sections identified are for Urban Streets. (2) Roadway Right -of -Way (ROW) width varies throughout the study area. ROW widths shown indicate the study area range, (3) MDT as reported in MnDOT's 2015 Twin Cities Metro Area MDT Maps or as estimated* from peak hour counts. Intersection Operations Analysis An operations analysis was conducted to determine how traffic is currently operating at the study intersections. All intersections were analyzed using Synchro/SimTraffic and the Highway Capacity Manual (HCM). Intersection capacity analysis results identify a Level of Service (LOS) which indicates how well an intersection is operating. Intersections are ranked from LOS A through LOS F. The intersection LOS results are based on average control delay per vehicle from SimTraffic, which correspond to the delay threshold values shown in Table 2. LOS A indicates the best traffic operation and LOS F indicates an intersection where demand exceeds capacity. "Overall" intersection LOS A through D is generally considered acceptable by drivers in the Twin Cities Metropolitan Area. Table 2. Level of Service Criteria for Signalized and Unsignalized Intersections LOS Designation Signalized Intersection Average Control Delay/Vehicle (seconds) <_10 B > 10 - 20 Unsignalized Intersection Average Control Delay/Vehicle (seconds) <_10 > 10 - 15 C > 20 - 35 D >35-55 E > 15-25 > 25-35 > 55 - 80 > 35 - 50 F > 80 > 50 Anne Stanfield, Director of Business Development, ECUMEN ECUMEN - STILLWATER SENIOR HOUSING DEVELOPMENT TRAI+FIC IMPACT STUDY May 26, 2017 Page 6 For unsignalized intersections, special emphasis is given to providing an estimate for the level of service of the side -street approach. Traffic operations at an unsignalized intersection with side -street stop control can be described in two ways. First, consideration is given to the "overall" intersection level of service. This takes into account the total number of vehicles entering the intersection and the capability of the intersection to support these volumes. Second, it is important to consider the delay on the minor approach. Since the mainline does not have to stop, the majority of delay is attributed to the side -street approaches. It is typical of intersections with higher mainline traffic volumes to experience high levels of delay (poor levels of service) on the side -street approaches, but an acceptable "overall" intersection level of service during the peak hours. Results of the existing operations analysis shown in Table 3 indicate that all study intersections currently operate at an acceptable "overall" LOS C or better during the weekday commuter peak hours (7:00-8:00 a.m. and 4:45-5:45 p.m.) and the Sunday a.m. church peak hour (10:00-1100 a.m.) with the existing traffic control and geometric layout. No significant existing approach delays or queuing issues were observed in the field or in the traffic simulation at the study intersections. Table 3. Existing Peak Hour Intersection Capacity Analysis Weekday Commuter Peak Study Intersection Sunday (Church) A.M. Peak Hour LOS Delay P.M. Peak Hour A.M. Pe ak Hour LOS Delay LOS Delay Myrtle Street (CSAH 12)/Brick Street (1) Brick Street/Ramsey Street (1) Olive Street (CSAH 5)/Brick Street (1) Olive Street (CSAH 5)/Church Site Access (1) A/B A/A 15 Sec. 9 Sec. A/C A/B 21 Sec. A/B 11 Sec. A/A A/C 20 Sec. A/B 13 Sec. A/B 13 Sec. 9 Sec. 13 Sec. A/B 14 Sec. A/C 18 Sec. A/B 12 Sec. (1) Indicates an unsignalized intersection with side -street stop control, where the "overall" LOS is shown followed by the worst approach LOS. The delay shown represents the worst side -street approach delay. Future Conditions Proposed Development The Ecumen-Stillwater Senior Housing Development TIS includes development plans for 73 independent senior living units, 36 assisted senior living units and 36 memory care units for a total of 145 units on approximately 5 acres. The proposed development was assumed to be completed and open in year 2019 and fully occupied by year 2021. Therefore, traffic forecasts were developed for both no -build and build conditions, for year 2022, one year after full occupancy. Access to the proposed site is planned to be provided at two locations (see Figure 2: Proposed Site Plan). The primary site access is proposed to connect to Brick Street at Ramsey Street with secondary Anne Stanfield, Director of Business Development, ECUMEN May 26, 2017 EC UMEN - STILLWATER SENIOR HOUSING DEVELOPMENT TRAFFIC IMPACT STUDY Page 7 access to Olive Street by a connection to the existing church parking lot. Additional discussion of the site access analysis is included in the Site Access and Circulation Review section and the Conclusions and Recommendations Summary of this memorandum. Site -Generated Trips Trip generation estimates for the weekday a.m. and p.m. peak hours and daily trips were calculated for the proposed development based on the Institute of Transportation Engineers (I1 E) Trip Generation Manual, 9th Edition. Results of the trip generation estimate are shown in Table 4. The proposed Ecumen- Stillwater senior housing development is expected to generate a total of approximately 26 a.m. peak hour, 34 p.m. peak hour, and 440 daily trips on a typical weekday. Table 4: Weekday and Sunday Trip Generation Estimates Land Use (ITE Land Use Code) Size A.M. Peak Hour (1) P.M. Peak Hour Daily Trips In Out In Out Independent Senior Living Units (252) 73 Units 5 9 10 7 251 Assisted Senior Living Units (254) 36 Units 4 2 5 5 99 Memory Care Units (255) 36 Units 4 2 3 4 90 Weekday Totals 145 Units 13 13 18 16 440 Sunday Totals 145 Units 18 9 — — 460 (1) The Weekday a.m. peak hour is 7:00-8:00 a.m. and the Sunday a.m. peak hour is 10:00-11:00 a.m. Since the proposed site would share access to Olive Street with the church, a Sunday morning church related peak hour (10:00-11:00 a.m.) analysis was included. However, the ITE trip generation data for Sunday was limited. Therefore, traffic counts on Sunday were completed at a nearby comparable (slightly larger with 150 units, but otherwise very similar) Ecumen Seasons at Maplewood senior housing facility in Maplewood Minnesota. From these traffic counts, Sunday trip generation estimates were developed for the proposed Ecumen-Stillwater senior housing facility (also shown in Table 4). As can be seen in Table 4, the proposed Ecumen-Stillwater senior housing facility would generate a very modest level of site -generated traffic. This is due to comparatively less active lifestyles and lower auto ownership of seniors housed in independent living, assisted living and memory care units. While there may be some pedestrian/bicycle trips generated by the proposed Ecumen-Stillwater senior housing facility, they are not anticipated to be significant and in order to provide a more conservative trip generation estimate, pedestrian/bicycle trips were not specifically identified. Anne Stanfield, Director of Business Development, ECUMEN ECUMEN - STILLWATER SENIOR HOUSING DEVELOPMENT TRAFFIC IMPACT STUDY No -Build Traffic Forecasts May 26, 2017 Page 8 Based on the Stillwater Downtown Plan Update - Traffic Impacts Analysis, completed by SRF in November 2016, through traffic volumes on many of the Stillwater area roadways are expected to be significantly reduced with the 2017 opening of the New St. Croix River Bridge and the closing of the existing Stillwater Lift Bridge to vehicular traffic later this fall. For example, in the subject traffic study area, through traffic volumes on Olive Street are expected be reduced by 10 percent and on Myrtle Street by five (5) percent, after the new bridge is opened and the existing lift bridge is closed to vehicular (see Appendix A). However, soon after the new bridge is opened and the existing lift bridge is closed to vehicular traffic, it is expected that traffic volume growth will resume on the Stillwater area roadways at recent historical growth rates typical for Washington County. Therefore, in order to develop the year 2022 background future no -build traffic forecasts, the existing study intersection through traffic volumes on Olive Street and Myrtle Street were reduced by 10 percent (projection factor of 0.9) and five (5) percent (projection factor of 0.95) respectively to account for the new bridge opening and the existing lift bridge being closed to vehicular traffic. The study intersection non -through traffic movements were not reduced for these bridge related affects. Then based on the MnDOT 2016 20 -year traffic projection factor for Washington County of 1.3, an annual growth rate of 1.32 percent, over five years (projection factor of 1.07), was applied to the study intersection adjusted peak hour volumes to develop year 2022 no -build traffic volumes. The resultant year 2022 no -build condition traffic volumes are shown in Figure 4: 2022 No -Build Conditions. Future Build Traffic Forecasts The total site -generated vehicle trips were assigned to the adjacent supporting roadway network assuming a directional distribution (see Figure 5: Site -Generated Trip Directional Distribution) based on the regional distribution of households, employment and services, a review of existing and future area travel patterns and engineering judgment. The resultant year 2022 build condition traffic volumes are shown in Figure 6: 2022 Build Conditions. Intersection Operations Analysis To determine if the existing roadway network can accommodate the year 2022 no -build and build traffic forecasts, a detailed traffic operations analysis was completed. The study intersections were once again analyzed using Synchro/SimTraffic assuming existing geometric layout and traffic control. Results of the year 2022 no -build conditions traffic operations analysis shown in Table 5 (assumes existing geometrics and traffic control), indicate that all study intersections continue to operate at an acceptable "overall" LOS C or better during the weekday commuter peak hours (7:00-8:00 a.m. and 4:45-5:45 p.m.) and the Sunday a.m. church peak hour (10:00-1100 a.m.). Figure- 4 — Year 2022 No -Build C Weekday AM Peak Hour Intersection Movement Volu mes Weekday PM Peak Hour Intersection Movement Volu mes Sunday AM Peak Hour Intersection Movement Volumes Olive St -)live SI (CSAR 5) Olive St Olive St +e St(CSAH5) a"e Olive St Olive St nne St (GSAH 5) ti 8 tit • •315 " Ramsey St ,Y O5e St(CSAH5) 213$ • E4 Olive' Olive St Consulting Group, Inc 10489 May 2017 Year 2022 No -Build Conditions Ecumen-Stillwater - Traffic Impact Study Ecumen 1 City of Stillwater, Minnesota Figure 4 :\ rrreets110489\TS\Fi•ures\Fi•ure 5—Site-Generated Tri• Directional Distributio rim E,1 Site -Generated Trip Directional Distribution Figure 5 Consulting Group, Inc Ecumen-Stillwater - Traffic Impact Study 10489 May 2017 Ecumen 1 City of Stillwater, Minnesota aact5.10489\TS\Figures\Figure 6 — Year 2022 Build Conditions nL Weekday AM Peak Hour Intersection Movement Volumes Weekday PM Peak Hour Intersection Movement Volumes Sunday AM Peak Hour Intersection Movement Volu mes Olive St Orve St(CSAH 5) 210 Olive St (CSAH 5) 45. 1650 Ohve Olive St Olive St ,e St (CSAH 5) 15- 725. Olive St (CSAH 5) • 24,4 O1rye' Olive St Olive St 'Ive St(CSAH 5) 2I Oeve St (CSAH 5) 5l 243• 203.TEA OINt Olive St I;, 1 Year 2022 Build Conditions Consulting Group, Inc 10489 May 2017 Ecumen-Stillwater - Traffic Impact Study Ecumen 1 City of Stillwater, Minnesota Figure 6 Anne Stanfield, Director of Business Development, ECUMEN ECUMEN - STILLWATER SENIOR HOUSING DEVELOPMENT TRAFFIC IMPACT STUDY Table 5. 2022 No -Build Condltlons Peak Hour Intersection Capacity Analysis Study Intersection Weekday Commuter Peak May 26, 2017 Page 12 Sunday (Church) A.M. Peak Hour LOS Delay P.M. Peak Hour LOS Delay A.M. Peak Hour LOS Delay Myrtle Street (CSAH 12)/Brick Street (1) Brick Street/Ramsey Street (1) Olive Street (CSAH 5)/Brick Street (1) A/C A/A 16 Sec. A/D 26 Sec. A/B 14 Sec. 9 Sec. A/C 22 Sec. A/B A/C 11 Sec. 16 Sec. Olive Street (CSAH 5)/Church Site Access (1) A/B 14 Sec. A/C 19 Sec. A/A A/ B A/ B 9 Sec. 13 Sec. 12 Sec. (2) Indicates an unsignalized intersection with side -street stop control, where the "overall" LOS is shown followed by the worst approach LOS. The delay shown represents the worst side -street approach delay. Again, no significant approach delays or queuing issues were observed in the traffic simulation at the study intersections under the 2022 no -build conditions. Results of the year 2022 build conditions traffic operations analysis, shown in Table 6, (assumes existing geometries and traffic control), indicate that all study intersections continue to operate at an acceptable "overall" LOS C or better during the weekday a.m. (7:00-8:00 a.m.), p.m. (4:45-5:45 p.m.) commuter peak hours and the Sunday a.m. (10:00-1100 a.m.) church peak hour. Once more, no significant approach delays or queuing issues were observed in the traffic simulation at the study intersections under the 2022 build conditions. Table 6. 2022 Build Condltlons Peak Hour Intersection Capacity Analysis Study Intersection Weekday Commuter Peak Sunday (Church) A.M. Peak Hour LOS Delay P.M. Peak Hour A.M. Pe ak Hour LOS Delay LOS Myrtle Street (CSAH 12)/Brick Street (1) Brick Street/Ramsey Street (1) A/C A/A 16 Sec. 9 Sec. A/D A/B 28 Sec. 11 Sec. A/B A/A Olive Street (CSAH 5)/Brick Street (1) A/C 22 Sec. A/C 19 Sec. A/B Delay 14 Sec. 9 Sec. 14 Sec. Olive Street (CSAH 5)/Church Site Access (1) A/B 14 Sec. A/C 19 Sec. A/B 12 Sec. (1) Indicates an unsignalized intersection with side -street stop control, where the "overall" LOS is shown followed by the worst approach LOS. The delay shown represents the worst side -street approach delay. Since the study intersections operate at acceptable "overall" LOS C or better during the peak hours under the 2022 build scenario, it is concluded that the proposed Ecumen-Stillwater development would not represent a significant negative traffic impact to the supporting roadway system. Anne Stanfield, Director of Business Development, ECUMEN May 26, 2017 ECUMEN - STII I.WATER SENIOR HOUSING DEVELOP LENT TRAFFIC IMPACT STUDY Page 13 Site Access and Circulation Review Site Access Review A review of the proposed site plan was completed to identify any issues and recommend potential improvements with regard to access, sight distance, traffic control and circulation. Access to the proposed site is planned to be provided at two locations (see Figure 2: Proposed Site Plan). The primary site access is proposed to connect to Brick Street at Ramsey Street with secondary access to Olive Street by a connection to the existing church parking lot. The proposed site plan, (see Figure 2: Proposed Site Plan) including access and circulation, is generally well configured. Based on field observations there is adequate sight distance at the two proposed site access locations. Conclusions and Recommendations Summary Based on the traffic study analysis, the following summary of conclusions and recommendations is offered for your consideration: 1. All study intersections currently operate at an acceptable "overall" LOS C or better during the weekday commuter peak hours (7:00-8:00 a.m. and 4:45-5:45 p.m.) and the Sunday a.m. church peak hour (10:00-1100 a.m.) with the existing traffic control and geometric layout.. No significant existing approach delays or queuing issues were observed in the field or in the traffic simulation at the study intersections. 2. The Ecumen-Stillwater Senior Housing Development includes plans for 73 independent senior living units, 36 assisted senior living units and 36 memory care units for a total of 145 units on approximately 5 acres. The proposed development was assumed to be completed and open in year 2019 and fully occupied by year 2021. Therefore, traffic forecasts were developed for both no - build and build conditions, for year 2022, one year after full occupancy 3. The proposed Ecumen-Stillwater senior housing development is expected to generate a total of approximately 26 a.m. peak hour, 34 p.m. peak hour, and 440 daily trips on a typical weekday. The proposed Ecumen-Stillwater senior housing facility would generate a very modest level of site - generated traffic. This is due to the comparatively less active lifestyles and lower auto ownership of seniors housed in independent living, assisted living and memory care units. 4. The Institute of Transportation Engineers (ITE) suggests that a detailed traffic operations analysis is required for developments that generate more than 100 peak hour trips. Since the level of site - generated traffic by the proposed Ecumen-Stillwater senior housing development is estimated to be significantly less than 100 peak hour trips, it is concluded that the proposed development would not need a detailed traffic operations analysis and therefore, would not generate a significant negative traffic impact. 5. Through traffic volumes on many of the Stillwater area roadways are expected to be significantly reduced with the 2017 opening of the New St. Croix River Bridge and the closing of the existing Stillwater Lift Bridge to vehicular traffic later this fall. In the subject traffic study area, through Anne Stanfield, Director of Business Development, ECUMEN ECUMEN - STILLWA ITR SENIOR HOUSING DEVELOPMENT TRAFFIC IMPACT STUDY May 26, 2017 Page 14 traffic volumes on Olive Street are expected be reduced by 10 percent and on Myrtle Street by five (5) percent, after the new bridge is opened and the existing lift bridge is closed to vehicular. 6. To develop the year 2022 background future no -build traffic forecasts, the existing study intersection through traffic volumes on Olive Street and Myrtle Street were reduced by 10 percent (projection factor of 0.9) and five (5) percent (projection factor of 0.95) respectively to account for the new bridge opening and the existing lift bridge being closed to vehicular traffic. The study intersection non -through traffic movements were not reduced for these bridge related affects. Then based on the MnDOT 2016 20 -year traffic projection factor for Washington County of 1.3, an annual growth rate of 1.32 percent, over five years (projection factor of 1.07), was applied to the study intersection adjusted peak hour volumes to develop year 2022 no -build traffic volumes. 7. Results of the year 2022 no -build conditions traffic operations analysis shown in Table 5 (assumes existing geometries and traffic control), indicate that all study intersections continue to operate at an acceptable "overall" LOS C or better during the weekday commuter peak hours (7:00-8:00 a.m. and 4:45-5:45 p.m.) and the Sunday a.m. church peak hour (10:00-1100 a.m.). Again, no significant approach delays or queuing issues were observed in the traffic simulation at the study intersections under the 2022 no -build conditions 8. Results of the year 2022 build conditions traffic operations analysis, shown in Table 6, (assumes existing geometries and traffic control), indicate that all study intersections continue to operate at an acceptable "overall" LOS C or better during the weekday a.m. (7:00-8:00 a.m.), p.m. (4:45-5:45 p.m.) commuter peak hours and the Sunday a.m. (10:00-1100 a.m.) church peak hour. Once more, no significant approach delays or queuing issues were observed in the traffic simulation at the study intersections under the 2022 build conditions. 9. Since the study intersections operate at acceptable "overall" LOS C or better during the peak hours under the 2022 build scenario, it is concluded that the proposed Ecumen-Stillwater development would not represent a significant negative traffic impact to the supporting roadway system. 10. The proposed site plan, (see Figure 2) including access and circulation, is generally well configured. Based on field observations there is adequate sight distance at the two proposed site access locations. I I:\Projects\ 10000\ 104X9\TS\Memo\ 10489_Eaimen Development TIS_1 70526.docv Appendix A Bill Turnblad City of Stillwater Figure 3 - Volume Distribution Shift from Bridge Closure Existing Distribution November 9, 2016 Page 5 Year 2017 Volume Shift Note: Volume distribution changes of bridge volume outside of downtown are assumed consistent with St. Criox River Crossing Project 2004 Supplemental Environmental Impact Statement directional distributions. Year 2040 Volume Forecasts Year 2040 daily volume forecasts were developed based on previous average annual growth rates (AAGR) identified in the St. Criox River Crossing Project 2004 Supplemental Environmental Impact Statement applied to the year 2017 daily volume forecasts. Using the year 2017 daily volumes, year 2040 daily volumes, and the year 2017 peak hour forecasts, year 2040 peak hour forecasts were developed (see Figure 5). Future Conditions With the decrease in vehicular traffic after the lift bridge closure to vehicular traffic, multimodal improvements are being considered in downtown along Hwy 95, Chestnut Street, and a number of other locations. As previously noted, this analysis considered the potential for a reduction in turn lanes, changes in traffic control, roadway closures, and improvements for pedestrians and bicyclists. The purpose of evaluating these changes is to allow for the repurposing of the downtown transportation network. The analysis also looked at other opportunities including: • Changes to Chestnut Street between Hwy 95 and the lift bridge approach. • Changes to Sam Bloomer Way. • Changes to pedestrian areas and crossings along Hwy 95. • Changes to bicycle connections. OURE(sAv oR I 'S LUTHERAN CHURCH Our Savior's Lutheran Church 1 1616 W. Olive Street, Stillwater, MN 55o82 1 (651)439-5704 I Email: info@oslcstillwater.org Thursday, July 6, 2017 Stillwater City Planning Commission Stillwater City Council Mayor of Stillwater 216 4th Street North Stillwater, MN 55082 Re: Consideration of a Concept Planned Unit Development for a senior living housing facility (CPC/2017-25) Greetings. Since I will be unable to attend the public hearing on Wednesday, July 12 as you consider the planned unit development between Ecumen and Our Savior's Lutheran Church, I wanted to express my support of the project in writing to you directly. As I have served as Lead Pastor at Our Savior's Lutheran Church on West Olive in Stillwater for nearly three years I have come to know this specific community of faith as one that cares deeply for the care, well-being, and needs of not only its members, but its entire surrounding community. Many of our members have been a part of the Stillwater community and our community of faith for many years and have the best interest of all in mind. That is why when Dan and Gretchen Smith approached members of our Church Board and me in April of 2015 regarding their desire to sell us their radio station property, our continuing conversations centered around a potential senior living partnership. Of the many organizations that offer reputable senior living opportunities throughout the Twin Cities Metro and surrounding suburbs we quickly thought of Ecumen as our potential partner of choice. They have long Lutheran roots, are typically more affordable, and shared common values and mission with us as a community of faith. Our congregation overwhelmingly approved the sale of the church property to Ecumen that would be needed to build their facility. I am supportive of this project. Our Savior's Lutheran Church is supportive of this project. I hope and pray that the surrounding community will also be supportive of this project. To have an Ecumen-run senior living facility in the location of choice (mostly residential and next to a church) can be a wonderful addition to our overall community. It would be unique, which I have come to realize is true of much of the Stillwater community, and is what draws so many people to it. We understand the legitimate and personal concerns of our nearest neighbors on Deerpath and Brick, but we hope too, that they will be able to see and understand the benefits as a whole to our community and the growing needs of seniors within it. Ecumen is committed to listening to their concerns, addressing them, and responding as best they can. In full supportt and trusting in God's wisdom, P4A4tr Pastor Dale Stiles GROUNDED IN FAITH, GATHERED IN LOVE, SENT WITH A PURPOSE, SO THAT OTHERS MAY GAIN THE KINGDOM 7/9/17 CASE No. CPC/2017-25 Stillwater Planning Commission We are directly West of this proposed development and we will be the most affected. We understand a large part of the property has bad soil. The developers had three choices; 1) Quit, 2) Reduce the number of units, or 3) Increase the size and height of the building to the West side and move the cities easement of the walking path further to the West, this will drop 145 hvac units, and balconies in our backyard, along with the stink of their commercial kitchen, lighting and blocking of our sunlight due to an immense THREE STORY building. You have to stop this MADNESS! Take a look at how ugly their existing buildings are and how it will look in a residential area. Given the choice I would rather have a three story hotel built, at least it wouldn't have balcony's and the stench. Obviously it would be totally absurd to build a hotel in the middle of a residential zoned area. This doesn't belong in anyone's backyard. Please keep our city beautiful. Thank -you, James and Barbara Ylinen 201 Deer Path Stillwater, Mn. 55082 swedelake@gmail.com THE B I R T H PLAC E OF- MINNESOTA TO: Mayor & Council Members DATE: July 27, 2017 RE: RFP for 2018 Comprehensive Plan FROM: Bill Turnblad, Community Development Director BACKGROUND Now that the Downtown Chapter of the 2018 Comprehensive Plan is ready to go out to other jurisdictions and agencies for review, it is time to update the remainder of the City's Comprehensive Plan. To begin that process an RFP for planning consultant services has been written. It is based upon the project scope that was reviewed by the City Council in July. COMMENTS In addition to updating most of the 2008 Comp Plan chapters, this generation of the City's Comp Plan will include a new chapter on resiliency. Also, the economic development chapter will be expanded to address economic competitiveness. There are a few 2008 chapters that will not be updated as a part of this contract. Rather, they are being completed under separate contracts. They include the water resources chapter (water supply, water supply system, surface water management and sanitary sewer), and the historic resources chapter. REQUEST Staff requests the City Council to review the RFP for release on August 3rd. Attachment: RFP THE BIRTHPLACE OF MINNESOTA RE UEST FOR PROPOSALS Update of Stillwater 2018 Comprehensive Plan R 1 as dat : August 3, 2017 SECTION 1. GENERAL INFORMATION A. OBJECTIVE The purpose of this request is to receive proposals for updating a portion of the City of Stillwater's Comprehensive Plan. B. OVERVIEW Several elements of the City's 2008 Comprehensive Plan have already been updated as part of the 2018 Comprehensive Plan development process. The Master Trail Plan was completed first, followed by a major effort to re -write the Downtown Chapter. The City is now ready to update the remaining chapters of its 2008 Comp Plan. In addition, a new chapter on resiliency will be developed and the economic development chapter will be expanded to address economic competitiveness. There are a few 2008 chapters that will not be updated as a part of this contract. Rather, they are being completed under separate contracts. They include the water resources chapter (water supply, water supply system, surface water management and sanitary sewer), and the historic resources chapter. C. COST ESTIMATE The City estimates the cost of the work associated with this portion of its 2018 Comprehensive Plan will be between $100,000 and $120,000. D. INQUIRIES The City contact for all inquiries related to this RFP is Bill Turnblad, Community Development Director. All questions or requests for information should be sent by email to him at bturnblad@ci.stillwater.mn.us All inquiries received by email before 1:00 p.m. on August 23, 2017 will receive responses. Responses which involve an interpretation or change to this RFP will be issued in writing by addendum and e-mailed to all parties recorded by the City as having received a copy of this RFP. All such addenda issued by the City shall be considered part of the RFP. Any addenda will be issued in writing by email by 4:30 PM on August 25, 2017. This is one week prior to the proposal submission deadline. Only additional information provided by formal written addenda will be binding. Oral and other interpretations or clarifications will be without legal effect. 2 of 7 12018 Comp Plan RFP E. SUBMISSION OF PROPOSALS To be considered, each firm must email one complete pdf copy of their proposal. The subject line of the email is to be: "Proposal for Stillwater 2018 Comp Plan Update". Email the proposal to Bill Turnblad (bturnblad(a�ci.stillwater.mn.us). All proposals must be emailed by 3:30 PM, Friday, September 1, 2017. Proposals sent after that time cannot be considered. F. ACCEPTANCE OR REJECTION OF PROPOSAL CONTENT In submitting this proposal, it is understood that the right is reserved by the City to reject any and all proposals. The contents of this RFP and the proposal will become contractual obligations if a contract ensues. G. SELECTION CRITERIA The proposal selected for award of the contract will not necessarily be from the lowest bidder. Rather, the selection will be based upon the proposal that is most responsive and advantageous to the City, as determined by the City. The City intends to award a contract, subject to the terms of this RFP, to the firm that offers the best overall value. Proposals will be evaluated based on past experience and performance, current performance capability, fees and other criteria as outlined in this document. H. ISSUANCE OF RFP AND AWARD PROCESS Issuance of this RFP does not compel the City to award a contract. The City reserves the right to reject any or all proposals wholly or in part and to waive any technicalities, informalities, or irregularities in any proposal at its sole option and discretion. The City reserves the right to request clarification or additional information. The City reserves the right to award a contract or to re -solicit proposals or to temporarily or permanently abandon the procurement. I. DISCLOSURE All information in a proposal, except fee analysis, is subject to disclosure under the provisions of Minnesota Statute Chapter 13 "Minnesota Government Data Practices Act". J. COST LIABILITY The City of Stillwater assumes no responsibility of liability for costs incurred by the consultant prior to the signing of a contract for this project. Total liability of the City of Stillwater is limited to the terms and conditions of this agreement. 3 of 7 12018 Comp Plan RFP SECTION II. WORK STATEMENT A. DELIVERABLES 1. Five printed copies of the 2018 Comprehensive Plan. 2. Two copies of the Comprehensive Plan must be submitted in electronic format. One must be in pdf format, the other must be in an editable format (InDesign is preferred). B. MAJOR RESPONSIBILITIES 1. Assemble and lead a team of necessary and qualified professionals with expertise in such areas as land use, urban trail and bike route design, economic competitiveness, resiliency, etc. 2. Develop and maintain effective relationships with the Metropolitan Council, including early identification of issues and communications with the agency throughout the process 3. Review Stillwater's 2015 system statement and current Comprehensive Plan for required amendments, additions or deletions 4. Conduct community wide visioning meetings/charrette 5. Conduct one on-line survey covering various elements and aspects of the update 6. Conduct regular meetings with City staff for purposes of coordination, consultation and input 7. Conduct eight to ten monthly meetings of the Comprehensive Plan Advisory Committee 8. Attend public meetings to develop the Comp Plan update. These meetings would include Planning Commission meetings, Park Commission meetings, joint Council/Panning Commission/Heritage Preservation Commission meetings 9. Conduct two open houses 10. Create the final 2018 Comprehensive Plan document. Though not every chapter will be developed under this contract, every chapter will be incorporated into a single document under this contract. 11. Submit 2018 Comprehensive Plan to the Metropolitan Council for review C. PROJECT ELEMENTS: Plan Elements to be included in this contract include: 1. Community Background 2. Land Use 3. Natural Resources a. Steep slopes b. Soils 4 of 7 12018 Comp Plan RFP c. Land cover d. Solar Energy, access to direct sunlight 4. Supplements to the Downtown Chapter a. Handicapped accessibility b. Separation of Downtown bike and pedestrian routes 5. Economic Development and Competitiveness a. Retail market analysis already completed as part of Downtown Chapter update 6. Transportation a. Traffic study already completed as part of Downtown Chapter update b. Local transportation options for elderly and handicapped 7. Housing a. Affordable b. Senior/life cycle 8. Parks and Trails a. Trails (already completed under separate contract) b. Parks c. Wellness planning 9. Community Resources 10. Resiliency 11. Implementation D. PROPOSED TIMETABLE: Deadline for submission of questions 1:00 pm, August 23, 2017 Final issuance of any RFP addenda 4:30 pm, August 25, 2017 Proposal submittal deadline 3:30 pm, September 1, 2017 City Council selection of consultant team September 5, 2017 City Council approval of contract September 19, 2017 Project kick-off meeting. Consultants receive project input from key City staff and commence planning process Week of September 25, 2017 Inventory and Analysis Sept - Oct 2017 Visioning and Goals Oct - Nov 2017 Development of plan elements Dec - April 2018 Write first draft of plan May 2018 Public hearings and city approval June 2018 Jurisdictional review July -Dec 2018 Final draft Jan 2019 Submittal to Metropolitan Council Feb 2019 5 of 7 12018 Comp Plan RFP SECTION Ill. INFORMATION REQUIRED FROM ALL PROPOSALS A. PROFESSIONAL QUALIFICATIONS State the full name and address of your firm, and the branch office or other subordinate element that will perform or assist in performing the work hereunder. Indicate whether it operates as an individual, partnership, or corporation; if as a corporation, include the state in which it is incorporated. If applicable, state whether it is licensed to operate in the State of Minnesota. Include the number of executive and professional personnel by skill and qualification that will be employed in the work. Show where these personnel will be physically located during the time they are engaged in the work. Indicate which of these individuals you consider key to the successful completion of the study or project. Identify individuals by name and title that will do the work on this project. Identify the project manager and the primary contact for the project. If they are different individuals, please explain why. Resumes or qualifications are required for proposed project personnel. History of the firm, in terms of length of existence, etc. B. PAST INVOLVEMENT WITH SIMILAR PROJECTS List specific types of experience your firm has had in the following areas: Preparing master plans or master plan amendments Citizen engagement and use of innovative methods to build community support C. BRIEF STATEMENT OF PLANNING APPROACH Submit written narrative of the planning approach and community engagement that you will use for the project. D. FEE QUOTATION Submit as part of proposal packet: Firm name and contact information Fee proposal, which includes your firm's "not to exceed" fee for the total project. The quoted fee shall include estimated reimbursable fees. The quoted fee shall also include sales tax, if applicable. Also include a per -meeting cost for any meetings that are held beyond those specified in the proposal. 6 of 7 12018 Comp Plan RFP Signature of authorized firm negotiator/expeditor. E. AUTHORIZED NEGOTIATOR/EXPEDITOR Include the name and phone number of person(s) in your organization authorized to negotiate/expedite the proposal contract with the City of Stillwater. F. ADDITIONAL INFORMATION AND COMMENTS Include any other information that may be pertinent, but not specifically asked for elsewhere. 7 of 7 12018 Comp Plan RFP fflwater 7 FI E BIRTH PE. A T; E 91F MINNFSOITA CITY COUNCIL MEETING DATE: August 2, 2017 REGARDING: Main Street Stairs Information/Interpretative Signage PREPARED BY: Abbi Jo Wittman, City Planner BACKGROUND As the Council may remember, Sara Jespersen was awarded a Stillwater Foundation Great Ideas grant to beautify the Main Street stairs. Work has been underway on this project throughout these past few weeks. One component of the project is the installation of an information/interpretative sign to be located at the base of the Main Street stairs. The intent would not only be to describe a little bit of the history of the stairway but to also inform users of the health benefits of utilizing the stairs and the view from the top. The 18X24",1/2 " thick High Pressure Laminate Panel sign would be constructed by Vacker Inc. The metal sign post will be cemented subgrade. The HPC reviewed the sign at their regularly scheduled meeting in July and provided recommendations for modifications to the sign, commented on the placement of the sign, and determined that this sign was a first step to a more comprehensive interpretative plan in the downtown area. The HPC suggested that as the City does not have an information and interpretation plan or standards, the City may want to own the sign so that upgrades and replacements could be made someday. Based on the HPC meeting discussion, and staff comments, Ms. Jespersen is modifying the design of the sign. She has met onsite with City Engineer Sanders and Assistant Public Works Superintendent Moore to finalize the location. DISCUSSION The Council should discuss the proposed Main Street stairs sign to verify if the Council would like to have a sign installed in this location and assume ownership of the sign. While the sign design was not available at the time of memo development, the Council should discuss the draft when available. Further analysis of the final sign design will be available on Tuesday. COUNCIL ACTION If the Council is favorable to acceptance of the sign and the sign location, the Council should move to approve the attached Resolution. CITY OF STILLWATER WASHINGTON COUNTY, MINNESOTA A RESOLUTION ACCEPTING AN INFORMATION/INTREPRETATIVE SIGN AND APPROVING ITS INSTALLATION AT THE BASE OF THE MAIN STREET STAIRS WHEREAS, on April 24, 2017, Sara Jespersen brought to the Parks and Recreation Commission ("PRC") a beautification plan for the Main Street Stairs. At the meeting the PRC determined that if Jespersen was awarded grant funding, her proposed work to the Main Street stairs should be implemented; and WHEREAS, On July 19, 2017, the Heritage Preservation Commission ("HPC") reviewed the beautification plan and proposed interpretative and information sign proposed for the base of the Main Street Stairs. The HPC made certain recommendations to Ms. Jespersen and the City Council; and WHEREAS, on August 2, 2017, the City Council reviewed the interpretative and informational sign; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Stillwater, Minnesota: 1. Accepts the Main Street Stairs Interpretative and Information Sign as proposed and reviewed on August 2nd, and as attached as Exhibit A; and 2. Authorizes the installation of the sign as per the attached Sign Location Map, attached as Exhibit B. Enacted by the City Council of the City of Stillwater, Minnesota this 2nd day of August, 2017. CITY OF STILLWATER Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk EXHIBIT B 5TLJ) ATEP STARS - 9OTTCY1 PATO r. 0277 xn 1EEN MORAN STAIRS WATER SWALE TWROUGW WERE RGE FLOWER POTS INTREPRETATION/INFORMATIONAL SIGNAGE APPROXIMATE LOCATION Wash ngton Courity Board of Commissioners Fran Miron, District 1 Stan Karwoski, District 2 BOARD AGENDAF Gary Kriesel, District 3 Karla Bigham, District 4 Lisa Weik, Chair, District 5 AUGUST 1, 2017 — 9:00 A.M. 1. 9:00 Roll Call Pledge of Allegiance 2. 9:00 Comments from the Public Visitors may share their comments or concerns on any issue that is a responsibility or function of Washington County Government, whether or not the issue is listed on this agenda. Persons who wish to address the Board must fill out a comment card before the meeting begins and give it to the County Board secretary or the CountyAdministrator The County Board Chair will ask you to come to the podium, state your name and city ofresidence, and present your comments. Your comments must be addressed exclusively to the Board Chair and the full Board ofCommissioners. Comments addressed to individual Board members will not be allowed. You are encouraged to limit your presentation to no more than five minutes. The Board Chair reserves the right to limit an individual's presentation if it becomes redundant, repetitive, overly argumentative, or ifit is not relevant to an issue that is part of Washington County's Responsibilities. 3. 9:10 Consent Calendar — Roll Call Vote 4. 9:10 Public Works — Andy Burmeister, Lockridge Grindal & Nauen and Nathan Arnold, Engineer II A. Update on Federal Legislative Initiatives B. Approval of Agreement with the City of St. Paul Park for the County State Aid Highway 22 and St. Paul Park Road Intersection Improvements Project 5. 9:30 General Administration — Molly O'Rourke, County Administrator 6. 9:40 Commissioner Reports — Comments — Questions This period of time shall be used by the Commissioners to report to the full Board on committee activities, make comments on matters of interest and information, or raise questions to the staff. This action is not intended to result in substantive board action during this time. Any action necessary because of discussion will be scheduled for a future board meeting. 7. Board Correspondence 8. 9:55 Executive (Closed) Session with Human Resources — Jan Webster, Director Discuss Labor Relations Strategy 9. 10:30 Adjourn 10. 10:35-11:05 Board Workshop with Public Works — Jan Lucke, Transportation Planning Manager Update on the Cooperative Funding Agreement for the Gold Line with Ramsey County and the Metropolitan Council Assisllve listening devices are available for use in the County Board Room rr pre a.a,i ...o-r.o .a.a r.. ro,v..ip n;...er pt.. ea tall trtaV n In rmn EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER WASHINGTON COUNTY BOARD OF COMMISSIONERS CONSENT CALENDAR * AUGUST 1, 2017 The following items are presented for Board approval/adoption: DEPARTMENT/AGENCY Administration Accounting and Finance Human Resources Public Works Sheriffs Office ITEM A. Approval of July 18, 2017 County Board Meeting Minutes. B. Approval of comment letter on the Stillwater Township's Draft 2040 Comprehensive Plan. C. Approval to appoint Katie Pape, Canvas Health, to the Mental Health Advisory Council representing family support services, to a first term expiring December 31, 2020. D. Approval to appoint Michael Kraemer, Birchwood, to the Parks and Open Space Commission to fill the District 2 position to a first term expiring December 31, 2019. E. Approval to reappoint Lee Ann Cox, as the small business representative on the Workforce Development Board to a second term expiring June 30, 2020. Approval of revised Meal, Mileage, and Other Authorized Expense Reimbursement Policy #5034. G. Approval to adopt revisions to the following policies: Policy #5004 Communicable Disease, Policy #5008 Respectful Workplace, Policy #5017 Equal Employment Opportunity/Affirmative Action, Policy #5504 Appearance and Grooming, and Policy #1031 Possession of Firearms on County Premises and by County Staff. H. Approval of resolution to authorize final payment in the amount of $90,213.09 to Hardrives Inc. for completion of the Trunk Highway 36 North Frontage Road Realignment Project. I. Approval of resolution to apply for the Transportation Economic Development program in the amount of $7,000,000 for the proposed Trunk Highway 36 and County State Aid Highway 15 (Manning Avenue) interchange project. J. Approval of resolution to apply for the Transportation Economic Development Infrastructure program in the amount of $2,500,000 for the proposed pavement, drainage and pedestrian improvements on County State Aid Highway (CSAH) 13 (Ideal Avenue) between CSAH 14 and 44th Street in Oakdale. K. Approval of a grant agreement with the Office of National Drug Control Policy in the amount of $117,500 for the period of January 1, 2017 through December 31, 2018, and authorize its execution pursuant to Minn. Stat. 373.02. L. Approval of one full time equivalent 911 Public Safety Dispatcher Special Project Position through 12/31/2018. Consent Calendar items are generally defined as items of routine business, not requiring discussion, and approved in one vote. Commissioners may elect to pull a Consent Calendar item(s) for discussion and/or separate action. Assistive idening devices are available for use in the County Board Room .,r r�,y,,., n,,., .. rrmeno �.irjxsr� ern Crum EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER