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2018-08-21 CC Agenda Packet
216 4th Street N, Stillwater, MN 55082 651-430-8800 www.ci.stillwater.mn.us REVISED AGENDA CITY COUNCIL MEETING August 21, 2018 SPECIAL MEETING 3:30 P.M. 3:30 P.M. AGENDA I. CALL TO ORDER II. ROLL CALL III. OTHER BUSINESS 1. Budget Workshop REGULAR MEETING 7:00 P.M. IV. CALL TO ORDER V. ROLL CALL VI. PLEDGE OF ALLEGIANCE VII. APPROVAL OF MINUTES 2. Possible approval of the July 31, 2018 regular and recessed meeting minutes VIII. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS 3. Resolution 2018-174, Human Rights Award 4. Swearing in of Police Officers – Officer Michael Mallet and Officer Zachary Lund IX. 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. X. STAFF REPORTS 5. Police Chief 6. Fire Chief 7. City Clerk 8. Community Development Dir. 9. Public Works Dir. 10. Finance Director 11. City Attorney 12. City Administrator 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 2018-175, directing payment of bills 14. Possible approval of sanitary sewer adjustment 15. Possible approval to purchase upgrade server/software and Bravo DVD burner for squad videos 16. Resolution 2018-176, approving revised purchasing policy XII. PUBLIC HEARINGS - OUT OF RESPECT FOR OTHERS IN ATTENDANCE, PLEASE LIMIT YOUR COMMENTS TO 10 MINUTES OR LESS. XIII. UNFINISHED BUSINESS 17. Consider request to delete the condition from the Mills on Main Special Use Permit that requires the commercial parking spaces to be made available to the public during non- business hours (from July 31st meeting) 18. Possible approval of plans and specifications and ordering advertisement for bids for the 2018 Sidewalk Rehabilitation Project, Project 2018-03 (Resolution - Roll Call) 19. Possible approval of award of bids for St. Croix Valley Rec Center Athletic Dome Replacement (Resolution - Roll Call) (Moved to September 4th Meeting) XIV. NEW BUSINESS 20. Discussion regarding Minar Neighborhood development strategy options 21. Possible approval of Heritage Ridge final plat and development agreement (Resolution – Roll Call) 22. Possible approval of possible purchase of tax forfeited property (Resolution – Roll Call) 23. Possible approval of resolution accepting proposal on competitive negotiated sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A (Resolution – Roll Call) 24. Possible approval of request for a trash enclosure on Water Street XV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS (CONTINUED) XVI. COMMUNICATIONS/REQUESTS XVII. COUNCIL REQUEST ITEMS 25. Beyond the Yellow Ribbon update XVIII. STAFF REPORTS (CONTINUED) XIX. ADJOURNMENT DRAFT DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF STILLWATER AND FAIRWAY DEVELOPMENT, LLC FOR HERITAGE RIDGE This Instrument Drafted By: David T. Magnuson(#66400) Magnuson Law Firm 333 North Main Street, Suite 202 Stillwater, MN 55082 DEVELOPMENT AGREEMENT This Development Agreement(the"Agreement") is entered into this day of ,2018,by and between the City of Stillwater,a municipal corporation under the laws of Minnesota(the"City") and Fairway Development LLC, a Minnesota limited liability company(the "Developer"). WITNESSETH: WHEREAS, the Developer proposes development of property in the City commonly known as Heritage Ridge ("Heritage Ridge"). The land comprising Heritage Ridge is legally described on the attached Exhibit"A," contains 7.19 acres of land, upon which the Developer has been given approval to develop seven single family lots and one outlot; and WHEREAS,the Developer applied for and obtained preliminary plat approval for Heritage Ridge,pursuant to the Stillwater City Code (the"Approvals"); and WHEREAS, the Approvals are contingent upon the Developer and the City entering into this Development Agreement. NOW,THEREFORE,based on the mutual covenants and obligations contained herein,the parties agree as follows: 1. Zoning: Number of Units. A. The project shall be zoned RA-Single Family Residential and is proposed to be re- guided in the 2040 Comprehensive Plan as Low Density Residential. B. The property shall be developed into not more than 7 one-family units and one outlot pursuant to the Final Plat,attached hereto as Exhibit B. 2. Private Improvements. A. The Developer will build out Heritage Ridge and will construct or cause to be constructed all improvements within Heritage Ridge in accordance with the approved plans (collectively, the "Plans"). The documents which constitute the 2 Plans are those on file with the City and approved by the City Engineer. The Plans may not be modified by the Developer without the prior written approval of the City. The units must be built out in substantially the same style and quality as was represented by Developer during the plan approval process and as shown in the plans. B. The installation of any monument sign must be constructed on private property that is maintained by the Homeowners' Association. The sign shall be no more than four (4) feet in height by six (6) feet in width, with landscaping and external lighting. A sign easement and maintenance agreement shall be recorded against the private property upon which the sign is located. 3. Public Improvements. The Developer has requested, and the City has agreed, to allow the Developer to construct the streets, sanitary sewer systems,municipal water system and storm water facilities within Heritage Ridge(collectively,the"Public Improvements").All Public Improvements must be installed in accordance with the Plans and the City's subdivision regulations and specifications for utilities and street construction. Prior to beginning work on the Public Improvements, the Developer must submit plans and specifications for utilities and street construction prepared by a registered professional engineer. The Developer must obtain any necessary permits from the Minnesota Pollution Control Agency,Minnesota Department of Health,the Brown's Creek Watershed District, and other agencies before proceeding with construction. The Developer must provide a level of field inspection acceptable to the City. The City will have City inspectors and engineers inspect the work at the Developer's expense. The Developer, its contractors and subcontractors, must follow all instructions received from the City's inspectors relating to any non-compliance with City requirements. All electric and communication utility lines serving Heritage Ridge shall be buried. Prior to beginning construction, the Developer or the Developer's engineer must schedule a preconstruction meeting with all parties concerned,including the City staff and engineers, to review the program for the construction work. Within 30 days after the completion of the base course of bituminous surface,the Developer must supply the City with a complete set of reproducible "as constructed"plans and electronic "as constructed" drawings, each prepared in accordance with City standards. Iron monuments must be installed in accordance with state law. The Developer's surveyor must submit a written notice to the City certifying that the monuments have been installed. The "as constructed" plans must be updated once the final lift of bituminous is installed on any segment of street. 4. Streets. A. Following completion of each of the streets and inspection thereof by the City engineer, the City agrees to accept the streets for maintenance if they are deemed by the City to have been constructed according to City specifications and the Plans. Prior to accepting the streets for maintenance,the City agrees to remove snow from any street or section of street which has a bituminous base and along which is located at least one finished home. In return for the City agreeing to plow snow prior to acceptance of the streets, the Developer agrees to indemnify and hold the 3 City harmless against any claim or action for injury or damage to the streets or adjacent properties; however, the Developer will not be responsible for injury or damage due to the negligence of the City, its agent, employees or contractors. B. In order to allow the Developer to grade the site and to construct the streets and related utility improvements, the City hereby agrees to grant to the Developer a temporary easement for purposes of street and utility installation over, under and across the rights-of-way as shown on the plat. The easement will commence upon filing of the plats with Washington County and will terminate upon acceptance of the streets or street segments by the City for maintenance. C. The Developer is permitted to install the final wear course when construction of at least six of the houses on Heritage Place have been completed.Notwithstanding the foregoing, the Developer and the City may agree to waive this requirement and allow the Developer to install the final wear course prior to the completion of six houses, as long as one freeze/thaw cycle has seasoned the street. D. The Developer agrees to warrant the streets against defects in labor and materials for a period of one year from the date of acceptance of the street or street segment by the City. During this period,the Developer agrees to repair or replace any street or street segment that shows signs of failure, normal wear and tear excepted. A decision regarding whether a street or street segment shows signs of failure will be made by the City in the exercise of its reasonable judgment. If the Developer fails to repair or replace a defective street or street segment during the warranty period, after a written request for repair is made by the City.The City may repair or replace the street or street segment and may use the Letter of Credit,as hereinafter defined, to reimburse itself for the costs. The Developer agrees to reimburse the City fully for the cost of street repair or replacement if the cost thereof exceeds the remaining amount of the Letter of Credit. The reimbursement must be made within 30 days of the date upon which the City notifies the Developer of the cost due under this paragraph. E. If any building permits, including a building permit for a model home are issued prior to the completion and acceptance of all Public Improvements serving a lot, the final wear course of bituminous excepted, the Developer assumes all liability and costs resulting in delays in completion of the improvements and damage to the improvements caused by the City, the Developer, its contractors, subcontractors, materialmen, employees, agents, or third parties from any such early issuance of building permits. No certificate of occupancy may be issued and there may be no occupancy of any structure for which a building permit has been issued on either a temporary or permanent basis until the streets needed for access have been graded and graveled and the municipal water and sewer systems, have been approved by the City. F. The Developer is granted access and a right of entry to construct streets and utilities for the project over and across the following parcel: 4 Beginning at the southwesterly comer of Hazel Street as dedicated on the plat of Brown's Creek Heights, Washington County, Minnesota; thence southerly along the southerly extension of the westerly line of said Hazel Street a distance of 60.00 feet; thence northeasterly to a point on the southerly line of said Hazel Street distant 145.00 feet from the point of beginning;thence westerly along the said southerly line a distance of 145.00 feet to the point of beginning. Further, the execution of the final plat by the City will operate as a dedication of this area as a public street in perpetuity to remain as a public street until vacated according to law. 5. Park and Trail Fee. The Developer must pay to the City, before release of the Final Plat for recording, a payment in lieu of land dedication in the amount of$2,500 per lot (minus a$2,500 charge for the pre-existing farm house) for a total of$15,000. 6. Storm Water Management. A. In order to accommodate the storm water requirements of Heritage Ridge, the Developer agrees to grade the site and construct improvements known as storm water improvements (the "Storm Water Improvements") in accordance with the Plans. B. The City and the Developer recognize that the Storm Water Improvements are designed to meet current legal and engineering requirements. If, following completion of the Development, additional improvements to serve the Development are needed,in the opinion of the City,the City is authorized,pursuant to Minn. Stat.Chapter 429,to acquire,construct,reconstruct,extend,maintain,and otherwise improve the storm sewer systems and related improvements within Heritage Ridge. In recognition of this possibility, the Developer agrees to provide, within its declaration of covenants and restrictions,a provision which states that the Heritage Ridge Homeowner's Association will manage storm water facilities within the Development at the written request of the City and grant an easement over the common area within the plat for storm water purposes and acknowledges that any additional improvements may result in a special assessment by the City against all benefited property owners. This provision in the declaration must be approved by the City for use in connection with the sale of lots prior to its distribution or use by the Developer. C. Management includes periodic clearing and dredging, if needed, to maintain the design function of the facility. D. The Homeowners' Association shall be required to maintain and own all Stormwater Improvements, including Outlot A, Heritage Ridge. 7. Site Grading. In order to construct the streets and Storm Water Improvements and otherwise prepare the site for development, it will be necessary for the Developer to grade 5 the entire project. Site grading will be controlled and regulated pursuant to a grading permit issued administratively by the City Engineer. 8. Landscaping. A. The Homeowners' Association must assume responsibility for maintenance of any common areas after conveyance to it by the Developer. The Developer must install all landscaping in compliance with the Plans and provide through the restrictive covenants applicable so that landscaping will not be planted so as to interfere with site drainage, including the Storm Water Improvements. B. Landscaping or other planting of shrubs or trees in boulevard areas must be consistent with the planting plan. No less than 39 trees are required for the development, with at least 3 trees per residential lot. To guarantee that 3 trees are planted on each of the 7 lots during house construction, the Developer shall at escrow$250.00 per tree with the city for a total of$5,250 when the trees have been planted and inspected by the city, the escrow money for that lot can be released. C. Retaining walls over four (4) feet in height must be designed by a registered, professional engineer and reviewed, in each case, by the City Engineer for compliance with engineering standards and safety concerns. The Engineer will have the right to require safety fencing or landscaping if any retaining wall is, in his professional opinion, a danger to future residents or adjoining property. D. Pruning and grading near any existing oak trees to be saved shall not occur between April 16 and July 1,unless a professional forester has prepared an oak impact plan that is approved by the City. 9. Footing Drainage System. The Developer will require that builders install a footing drainage system around the perimeter of each home to be constructed within the project. The system design must be approved by the City's Building Inspector before work on a system begins. 10. Final Site and Building Location Plans. A. The Developer and/or builder must submit with each building permit application a site sketch showing all structures, driveways, easements, patios and other impervious surfaces, grading, topography, lowest floor elevations. Grading operations on each lot must provide reasonable protection of the top soil to minimize compaction on the site. B. Prior to initiation of excavation on the lots, the Developer and/or builder must install rock on the areas to be used for driveways at least 20 feet into the lots from the front lot lines. C. The shared driveway between lots 6 and 7 shall have an access easement and maintenance agreement recorded against each of those lots. 6 11. Erosion Control. All construction must be conducted in a manner designed to control erosion. Before the site is rough graded, an erosion control plan must be implemented by the Developer and reviewed by the City. The City may impose additional erosion control requirements if the City deems necessary. All areas disturbed by the excavation shall be reseeded promptly after the completion of the work in that area. Except as otherwise provided in the erosion control plan,seed must provide a temporary ground cover as rapidly as possible. All seeded areas must be fertilized, mulched, and disc anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply with the erosion control plan and schedule or supplementary instructions received from the City, the City may take action as it deems appropriate to control erosion. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer's obligations or the City's rights hereunder. Developer will reimburse all expenses incurred by the City in connection with these actions. No utility or street construction will be allowed and no building permits will be issued unless the Developer is in full compliance with the erosion control requirements. 12. Easements, The Developer must furnish to the City, all permanent easements over property owned or controlled by them as designated in the Plans. 13. Maintenance of City Facilities. A. The Developer will be responsible for any damage caused to any City facilities or improvements including roads, storm water systems, sewer and water facilities whether done by the Developer, their contractors, agents or employees and for any repair or clean up costs or expenses incurred by the City or State in taking remedial action. However, the Developer will not be responsible for damage due to the negligent conduct of the City, its agents, employees or contractors. B. During construction the Developer must periodically sweep streets within the Development, streets leading into the Development, including Hazel Street and Hazel Court in order that the streets be free from debris, stone, rocks and other hazards. During construction the sweeping must be done at least once per week unless directed otherwise by the City Engineer. 14. Homeowners' Association. The Developer must create a Homeowners' Association to assure responsibility for maintenance of any common areas that are conveyed to it by the Developer. The documents creating the Homeowners' Association and any associated Declaration of Covenants must be reviewed and approved by the City Attorney before being executed by the Developer. The documents must be filed with the Minnesota Secretary of State and recorded with the County Recorder prior to the issuance of any certificate of occupancy. 15. City Regulations. Developer acknowledges that the property is regulated by the City and that a default under City ordinances or condition of approval of any permit is a default as defined in this Agreement, including: 7 A. The final grading and erosion control plan prepared by Westwood Professional Services, and approved by the City Engineer, shall be implemented. B. If required by law, a national pollution discharge elimination system general storm water permit for construction activity must be obtained from the MPCA before grading begins. C. Compliance with any mitigation measures required by Brown's Creek Watershed District. D. The Developer must comply with all conditions of approval imposed by the City as part of any permit or approval granted by the City during approval of the development. E. Pay to the City, before building permits are issued, for any structure within the development any sewer or water availability charges or hookup charges imposed by the City. F. Comply with all conditions of approval of City preliminary plat approval and any conditions of final plat approval. G. In view of the grade and design of East Hazel Street and East William Street, construction traffic must refrain from using those streets east of 2nd Street for access or for egress and ingress to the Development. H. This Agreement shall be executed by Developer prior to the pre-construction meeting and prior to the release of the Final Plat. 16. Letter of Credit; Contractor's Bond. A. The Developer agrees to deliver to the City prior to beginning construction of any the Public Improvements, a letter of credit (the "Letter of Credit") in an amount equal to 125% of contracted for construction costs approved by the City Engineer for that phase. The Letter of Credit must be in a form acceptable to the City Attorney and must allow the City to draw upon the instrument, in whole or part, in order to complete construction of any or all of the improvements or to satisfy the claims of contractors or suppliers that have not been satisfied by the Developer. The City agrees to release or reduce the Letter of Credit upon substantial completion of identifiable elements of the Public Improvements within the Development. Prior to releasing any portion of the Letter of Credit or accepting another letter of credit in replacement, the City must first be satisfied regarding the quality and completeness of the construction or work and that the Developer has taken such steps as may be necessary to ensure that no liens will attach to the project. B. Upon completion of a segment of the Public Improvements and acceptance thereof 8 by the City, the Developer may deliver to the City a warranty bond from the Developer's contractor in an amount suitable to ensure the quality of the work. In this event,the City agrees to: (i)reduce the Letter of Credit in an amount which, in the reasonable judgment of the City,is offset by the performance bond,and(ii)first make a claim against the performance bond and the contractor before making a claim against the Letter of Credit. 17. Payment of Charges and Fees. Prior to the City release of the Final Plat Developer must pay the following sanitary sewer and water connection charges: A. Total Charges: Area sewer and water trunk charges are established in the amount of$12,061.00 for 7 units, (minus a$12,061 credit for the pre-existing farm house) for a total of$72,366. 18. Responsibility for Costs. The Developer agrees to reimburse the City for its administration, engineering and legal costs and expenses in reviewing the development application, including the drafting and negotiation of this Agreement. The Developer agrees to reimburse the City in full for such costs within 30 days after notice in writing by the City. The Developer also agrees to reimburse the City for the cost incurred in the enforcement of any provision of this Agreement, including reasonable engineering and attorneys' fees and costs associated with construction inspection. 19. Insurance. Developer and their contractors will provide and maintain or cause to be maintained at all times during the process of constructing the Public Improvements and, from time to time at the request of the City, furnish the City with proof of payment of premiums on: A. Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance)together with an Owner's Contractor's policy with limits against bodily injury and property damage of not less than$1,500,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used), and shall be endorsed to show the City as an additional insured to the extent of its interest. B. Comprehensive general public liability insurance, including personal injury liability for injuries to persons and/or property, including any injuries resulting from the operation of automobiles or other motorized vehicles involved in work on the Public Improvements, in the minimum amount for each occurrence of $1,500,000, and shall be endorsed to show the City as an additional insured to the extent of its interest. C. Workers' Compensation insurance respecting all employees in amounts not less than the minimum required by statute. 20. Indemnification. Developer agrees to defend and hold the City, and its officials, employees and agents,harmless against any and all claims, demands, lawsuits,judgments, 9 damages,penalties,costs and expenses,including reasonable attorney's fees,arising out of actions or omissions by Developer, their employees and agents, in connection with the Public Improvements for one year beyond City acceptance of that Public Improvement by the City. 21. Enforcement by City; Damages. The Developer acknowledges the right of the City to enforce the terms of this Agreement against the Developer, by action for specific performance or damages,or both,or by any other legally authorized means.The Developer also acknowledges that its failure to perform any or all of its obligations under this Agreement may result in substantial damages to the City;that in the event of default by the Developer, the City may commence legal action to recover all damages, losses and expenses sustained by the City; and that the expenses may include, but are not limited to, the reasonable fees of legal counsel employed with respect to the enforcement of this Agreement. 22. Events of Default Defined. The following will be "Events of Default" under this Agreement and the term"Event of Default"means,whenever it is used in this Agreement, any one or more of the following events: A. Failure by Developer to commence and complete construction of the Public Improvements pursuant to the terms, conditions and limitations of this Agreement. B. Failure by Developer to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. C. In each event Developer will be afforded ten (10) business days after receipt of written notice to cure the violation and avoid a default provided that if cure cannot reasonably be made within the 10 day period, the failure will not be considered a default so long as Developer is using its best efforts to cure. 23. Remedies on Default. Whenever any Event of Default occurs and is not cured by Developer within ten (10) days after receipt of written notice to cure the violation from the City,the City may take any one or more of the following actions: A. Suspend work on the project, suspend the issuance of building permits until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure a default. B. Take action, including legal, equitable or administrative action, necessary to secure performance of any provision of this Agreement. C. Undertake to complete the Public Improvements itself, through its agents or through independent contractors and before the undertaking, draw upon the Security described in §16 for the full amount of the estimated work. 24. Notices. Any notice or correspondence to be given under this Agreement shall be deemed to be given if delivered personally or mailed postage prepaid, certified mail,return receipt 10 requested: (a) If to Developer: Sterling Black Fairway Development, LLC 1959 Sloan Place, Suite 140 St. Paul, MN 55117-2070 With a copy to: Mark Duea GDO Law 4770 Whitebear Parkway White Bear Lake, MN 55110 (b) If to the City: Tom McCarty, City Administrator City of Stillwater 216 North 4th Street Stillwater, MN 55082 With a copy to: Korine Land, City Attorney LeVander, Gillen&Miller, P.A. 633 South Concord St. Suite 400 South St. Paul, MN 55075 or at such other address as either party may from time to time notify the other in writing in accordance with this paragraph. 25. Titles of Sections. Any titles of the several parts of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. 26. Counterparts. This Agreement is executed in any number of counterparts, each of which will constitute one and the same instrument. 27. Modification. If Developer is requested by the holder of a mortgage or by a prospective holder of a prospective mortgage to amend or supplement this Agreement in any manner whatsoever, the City will, in good faith, consider the request, provided that the request is consistent with the terms and conditions of this Agreement. 28. Law Governing. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 29. Severability. In the event any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the holding will not invalidate or render unenforceable any other provisions. 30. Termination of Agreement. This Agreement will terminate at the time all of the 11 Developer's obligations have been fulfilled and when the cost of the Public Improvements have been paid in full and any default of the Developer has been cured, or one (1) year after acceptance of the Public Improvements by the City,whichever occurs later. [REMAINDER OF PAGE INTENTIONALLY BLANK] 12 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed on the day and year first above written. CITY OF STILLWATER By (SEAL) Ted Kozlowski, Its Mayor and Diane F. Ward, Its City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) On this day of ,2018,before me,a Notary Public within and for said County, appeared Ted Kozlowski and Diane F. Ward,to me personally known,who,being by me duly sworn, did say that they are,respectively, the Mayor and City Clerk of the City of Stillwater, and that this instrument was signed and sealed in 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 13 DEVELOPER Fairway Development LLC By: Sterling Black Its: Manager STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) On this day of ,2018,before me,a Notary Public within and for said County, appeared Sterling Black, of Fairway Development LLC, a Minnesota limited liability company,who,being duly sworn,did say that he is the manager named in the foregoing instrument and that this instrument was signed as the free act and deed of the manager. Notary Public 14 EXHIBIT A LEGAL DESCRIPTION Real property situated in the City of Stillwater,County of Washington,State of Minnesota,according to the recorded plat thereof, legally described as: Lots 1-7, Block 1, Heritage Ridge Outlot A, Heritage Ridge -A-1- EXHIBIT B FINAL PLAT wir O:i t-.; : Ei51' Awot 0 . , 1, Ei 1.. - ,.I --#:. ii,' il . . : 1 ----- / 1 ,, k------„,.. ilYiz _ u...1 H. L7 C:) [[[ \A, A [ Ce 1 [. LL1 , a [ i 1., i 1 1 1 i t...,2 [,[- [ ../.[,' [[ [ , ,.„_ ____` 1A ' LL1 [- 1 [ s [ .„,,. .... i f gi! 1 - ill 1111 1.1 114 1 Ili 101 i ;1!1 iig.1 bit :It Ifa'' tli I flf: ti* :-, -B-1- 2019 Proposed Budget CITY OF STILLWATER August 21, 2018 Budget Calendar April -Finance department begins budget process by preparing projected wages & benefits, and insurance costs. April 25 –Finance Department distributes CIP (2019-2023) information for updating. May 25 –CIP (2019-2023) information updates due to Finance. Finance assembles preliminary CIP. June 20 –Budget guidelines along with budget worksheets are distributed to Department Heads/Managers for completion. July 11 –Completed budget worksheets are due to Finance. The Finance Department assembles the preliminary requested budget information. July 16-27 –City Administrator reviews requested budget with Department Heads/Managers and prepares proposed budget. August 14 –Finance distributes proposed budget to Department Heads/Managers and City Council August 21 -Council, during a budget workshop session, meets with the City Administrator and Department Heads to review the proposed budget. End of August –County distributes estimated Local Taxable Value & Fiscal Disparity information. September 4 –Review updated proposed budget information. (if needed) September 18 –The latest the Council can adopt a proposed budget, a proposed levy and set the T-N-T Meeting date in December. Budget Factors Proposed 2019 $94,000 Increase/Decrease in Operating Expenditures 1% of Levy 1% Increase/Decrease in Health Insurance Premium $10,000 Retiree Health Insurance 10% of the Levy Library Operating Levy 13% of the levy Personnel Costs 77% of the Levy Costs to continue 5.89% Operating Expenditure Assumptions Proposed 2019 Wages 3.0% in COLA Health Insurance –City Contribution 15 % increase for single coverage and retiree coverage $15 increase for family coverage PERA Police & Fire Increase from 16.2% to 16.95% FICA/Medicare No change General Liability &Worker’s Compensation Insurance 4% increase CONSULTING FEES Operating Budget Department Purpose Requested Proposed Discussion Mayor/Council Lobbyist $25,000 $25,000 High Priority Administration PW Organizational Review $40,000 $40,000 High Priority Community Development Aiple Property Plan $35,000 $17,500 Add’l $17,500 in 2020 Community Development Bergstein Property Plan $15,000 $15,000 Priority Community Development Entrance Monument Design $15,000 $15,000 High Priority Community Development Comp Plan Ordinance Amendments $25,000 $10,000 Add’l $15,000 in 2020 Community Development HPC Matching Funds $5,000 $5,000 Priority Engineering ADA Study $45,000 $45,000 Fund $20,000-Grant Revenue TOTALS $205,000 $172,500*Less $20,000 in Revenue *Proposed Amount net of Revenue –1.6% of Operating Levy Personnel Requested/Proposed Department Position Priority FTE Requested Proposed Notes MIS GIS/IT Technician High 0.6 $74,681 $0 Finance Accountant Critical 1.0 $81,251 $0 Human Resources HR Specialist Critical 1.0 $82,360 $41,181 To Start 07/01/19 Police Police Officer High 1.0 $99,618 $0 Police Police Officer High 1.0 $99,618 $0 Police Police Officer High 1.0 $99,618 $0 Police Police Officer High 1.0 $99,618 $0 Fire Data Specialist High 0.25 $17,446 $0 Increase Hours Fire Firefighter Critical 1.0 $82,232 $0 Streets Maintenance Worker II High 1.0 $54,437 $0 To Start 04/01/19 Streets/Parks/Sewer Asst PW Superintendent High 1.0 $78,238 $0 To Start 04/01/19 TOTALS 9.85 $869,117 $41,181 Strategic Plan Alignment of 2019 Proposed Budget Items DEVELOP ORGANIZATIION Operations & Staffing Requests Current Staffing Levels -continued support Personnel Proposals HR Specialist (start July 1) SAFER Grant Match (Fire) Succession Planning Staff Training Professional Services Operation Review –Public Works Transition Funding City Attorney, City Clerk, Finance Director & Facilities Manager Strategic Plan Alignment of 2019 Proposed Budget Items (Continued) STRATEGIC PLANNING AND IMPLEMENTATION Council/Staff Planning Session Capital Requests Bridgeview Park Riverbank Stabilization/Elevated Walkway Parks Maintenance/Improvements Street & Sidewalk Improvement Program IT Upgrades Strategic Plan Alignment of 2019 Proposed Budget Items (Continued) DEVELOP COMMUNITY Economic Development Downtown Redevelopment, Housing & Business Development Comprehensive Plan Completion Trails & Stairs Improvements Entrance Monument Design & Construction Parks Planning Aiple & Bergstein Buildings Community Thread DARTS Bus Loop Transit funding Special Events Funding July 4th Celebration, Bridge Opening Celebration Property Tax Levy Proposed 2019 CITY-WIDE LEVY General Revenue Tax Levy $10,026,425 Required Debt Service Tax Levy $3,362,321 New Debt Service Tax Levy $400,000 Total Debt Service Levy $3,762,321 TOTAL CITY-WIDE LEVY $13,788,746 Required Debt Service Tax Levy Amount G.O. Capital Outlay 2012A $542,380 G.O. Capital Outlay 2014A $710,053 G.O. Capital Outlay 2014 (Armory)$85,000 G.O.Capital Outlay 2016A $823,830 G.O. Capital Outlay 2017A $404,006 G.O. Capital Outlay 2009D $326,668 G.O. Capital Outlay 2018A $470,384 Total $3,362,321 2019 New Bond Issue to fund: 2019 Capital Outlay $2,538,050 2019 Street Improvement Project $450,000 Total $2,988,050 PARCEL-SPECIFIC LEVY WMO Levy $41,100 Property Tax Levy Last 5 years and Proposed 2019* Year General Tax Levy Debt Service Tax Levy Total Property Tax Levy $ Increase from Prior Year % Increase from Prior Year 2014 $7,606,066 $3,018,920 $10,624,986 $218,479 2.099% 2015 $7,825,610 $3,514,043 $11,339,653 $714,667 6.726% 2016 $8,365,422 $3,665,145 $12,030,567 $690,914 6.093% 2017 $8,857,823 $3,674,616 $12,532,439 $501,872 4.172% 2018 $9,379,459 $3,437,356 $12,816,815 $242,476 2.269% 2019*$10,026,425 $3,762,321 $13,788,746 $971,931 7.583%$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2014 2015 2016 2017 2018 2019* General Tax Levy Debt Service Tax LevyNote: In 2014 there were levy limits imposed on the general tax levy. Property Tax Levy Proposed 2019 vs Adopted 2018 2018 Adopted CITY-WIDE LEVY 2019 Requested 2019 Proposed $ Increase % Increase $9,379,459 General Operating Tax Levy $11,414,050 $10,026,425 $646,966 6.898% $3,437,356 Debt Service Tax Levy $3,812,321 $3,762,321 $324,965 9.454% $12,816,815 Totals $15,226,371 $13,788,746 $971,931 7.583% 2018 Adopted PARCEL-SPECIFIC LEVY 2019 Requested 2019 Proposed $ Decrease % Decrease $42,700 WMO Tax Levy $43,400 $41,500 -$1,200 -2.810% Property Tax Rate Proposed 2019 Note:Valuation numbers and fiscal disparity numbers are not available from Washington County; therefore, the following assumptions were made: Assumptions 6% increase in the City’s Taxable Tax Capacity. 5% increase in the Fiscal Disparity Portion of Levy. Formula: Total City Property Tax Levy City’s Taxable Tax Capacity = City Tax Rate Item Actual Pay 2018 Proposed Pay 2019 % Change Property Tax Levy $12,816,815 $13,788,746 7.583% Fiscal Disparity Portion of Levy -$1,369,408 $1,437,878 5.000% City’s Portion of Levy =$11,447,407 $12,350,868 7.892% City’s Taxable Tax Capacity ÷ 21,428,697 $22,714,419 6.000% City Tax Rate =53.421%54.375%1.786% Property Tax Rate Last Ten Years and Estimated 2019* 0.000% 10.000% 20.000% 30.000% 40.000% 50.000% 60.000% 70.000% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* Year Rate 2009 47.930% 2010 49.432% 2011 52.539% 2012 54.674% 2013 61.503% 2014 58.216% 2015 54.916% 2016 56.996% 2017 56.927% 2018 53.421% 2019*54.375% Tax Impact 2019 Proposed Actual Payable 2018 Proposed Payable 2019 From 2018 to 2019 Market Value Tax Capacity Actual City Tax Rate City Property Tax Taxable Market Value Tax Capacity Proposed City Tax Rate City Property Tax $ Change % Change 227,200*2,104 53.421%$1,123.98 236,300 2,203 54.375%$1,197.88 $73.90 6.6% 96,200 676 53.421%$361.13 100,000 718 54.375%$390.41 $29.28 8.1% 144,200 1,199 53.421%640.52 150,000 1,263 54.375%$686.76 $46.24 7.2% 240,400 2,248 53.421%$1,200.90 250,000 2,353 54.375%$1,279.44 $78.54 6.5% 384,600 3,820 53.421%$2,040.68 400,000 3,988 54.375%$2,168.48 $127.80 6.3% Assumptions 4% increase in Market Value from 2018 to 2019 Information is based on Residential Homestead Properties Market Values are converted to Tax Capacity Values using Class Rates determined by the MN Legislature. Formula: Tax Capacity x City Tax Rate = City Property Tax * Median Value Home in Stillwater Debt Service Balance (as of January 1) Last Nine Years and budget year 2019 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 GO Capital Outlay Bonds GO Improvement Bonds GO Revenue Bonds GO Tax Increment Bonds Revenue Bonds Actual Debt Service Balance by Type Does not include Bond Issuance in Progress or any future Proposed Bond Issuances Year GO Capital Outlay Bonds GO Improvement Bonds GO Revenue Bonds GO Tax Increment Bonds Revenue Bonds Other Long-Term Debt 2010 $22,755,000 $3,120,000 $4,835,000 $6,585,000 $0 $462,500 2011 $16,605,000 $2,750,000 $2,660,000 $5,015,000 $0 $267,500 2012 $14,385,000 $2,375,000 $2,355,000 $4,910,000 $0 $127,500 2013 $18,645,000 $2,000,000 $2,135,000 $4,790,000 $0 $42,500 2014 $25,945,000 $0 $2,075,000 $4,655,000 $0 $0 2015 $23,835,000 $0 $1,755,000 $4,500,000 $0 $0 2016 $25,135,000 $0 $1,420,000 $6,775,000 $0 $0 2017 $21,655,000 $0 $1,065,000 $6,585,000 $6,585,000 $0 2018 $21,755,000 $0 $695,000 $6,375,000 $6,175,000 $0 2019 $19,490,000 $0 $315,000 6,150,000 $5,790,000 $0 Bond Rating (Moody’s) Last 10 Years Year Rating Year Rating 2018 Aa2 2012 Aa2 2017 Aa2 2010 Aa2 2016 Aa2 2009 Aa3 2014 Aa2 2008 Aa3 2013 Aa2 2007 Aa3 Aaa... - Aa1 - Aa2 - Aa3 - A1 - A2 - A3 - Baa1 - Baa2 - Baa3 - ...C Highest - Lowest Current (2018) Bond Rating GENERAL FUND OPERATING REVENUES/EXPENDITURES 2018 Adopted Revenue Type 2019 Requested 2019 Proposed Variance $7,203,862 Levy $8,835,409 $7,693,032 $489,170 $466,000 Franchise Fees $468,000 $468,000 $2,000 $124,000 Other Property Taxes $126,000 $126,000 $2,000 $577,756 Licenses and Permits $670,830 $731,830 $154,074 $1,336,988 Intergovernmental $1,336,988 $1,384,370 $47,382 $955,305 Charges for Services $1,077,233 $1,102,233 $146,928 $73,500 Fines and Forfeits $73,500 $73,500 $0 $234,550 Miscellaneous $154,950 $164,950 -$69,600 $10,971,961 Total Revenues $12,742,910 $11,743,915 $771,954 66% 4% 1% 6% 12% 9% 1%1% 2019 Proposed Budget Levy Franchise Fees Other Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeits Miscellaneous GENERAL FUND Operating Revenues $736,496 in Local Government Aid (LGA) $4,382 increase. Local Government Aid (LGA) Received in last 10 years and Certified 2019* $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* Year Amount 2009 $183,297 2010 $174,580 2011 $174,580 2012 $174,580 2013 $174,580 2014 $568,591 2015 $629,046 2016 $645,603 2017 $650,846 2018 $732,114 2019*$736,496 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $8,462,773 Personnel Services $9,902,300 $9,083,800 $621,027 $487,285 Supplies $498,685 $437,585 -$49,700 $1,846,803 Services and Charges $2,154,815 $2,058,420 $211,617 $175,100 Miscellaneous $187,110 $164,110 -$10,990 $10,971,961 Total Operating Expenditures $12,742,910 $11,743,915 $771,954 GENERAL FUND Total $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges Miscellaneous 2019 Budget Impacts 7.04% increase in proposed operating expenditures.77% 4% 18% 1% Personnel Services Supplies Services & Charges Miscellaneous 2019 Proposed Operating Expenditures 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $89,122 Personnel Services $95,694 $94,694 $5,572 5.0 Part-Time (Benefitted)5.0 5.0 0.0 $88,587 Services and Charges $100,598 $98,069 $9,482 $28,650 Miscellaneous $27,900 $27,900 -$750 $206,359 Total Mayor & City Council $224,192 $220,663 $14,304 2019 Budget Impacts Services and Charges $48,000 -Stillwater Township Reduction of $22,000 from 2018 Per Annexation Agreement (Year 4 of 5) $25,000 –Lobbyist $7,500 –Strategic Plan Strategic Planning and Implementation –Strategic Plan Element GENERAL FUND Mayor & City Council $0 $50,000 $100,000 $150,000 $200,000 $250,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Miscellaneous Services and Charges Personnel Services 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $21,532 Personnel Services $0 $0 -$21,532 $750 Supplies $0 $0 -$750 $9,824 Services and Charges $6,244 $6,244 -$3,580 $1,000 Miscellaneous $0 $0 -$1,000 $33,106 Total Elections $6,244 $6,244 -$26,862 2019 Budget Impacts 2018 was an election year GENERAL FUND Elections $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges Miscellaneous 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $287,480 Personnel Services $382,789 $308,110 $20,630 2.8 FTEs (Benefitted)3.4 2.8 0.0 $8,400 Supplies $8,600 $8,600 $200 $72,128 Services and Charges $75,988 $75,891 $3,763 $750 Miscellaneous $500 $500 -$250 $368,758 Total MIS $467,877 $393,101 $24,343 2019 Budget Impacts Services and charges $5,000 Training -Office 10 transition GENERAL FUND MIS $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Miscellaneous Services and Charges Supplies Personnel Services 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $367,065 Personnel Services $469,874 $374,367 $7,302 3.55 FTEs (Benefitted)4.65 3.65 0.1 $4,750 Supplies $3,000 $3,000 -$1,750 $78,086 Services and Charges $85,908 $84,579 $6,493 $2,300 Miscellaneous $2,300 $2,300 $0 $452,201 Total Finance $561,082 $464,246 $12,045 2019 Budget Impacts Services and charges $4,800 CAFR to be prepared by Auditors. $5,000 for software training. GENERAL FUND Finance $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges Miscellaneous GENERAL FUND Human Resources 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $142,234 Personnel Services $228,773 $173,245 $31,011 1.15 FTEs (Benefitted)2.15 2.15 1.0 $900 Supplies $900 $900 $0 $34,824 Services and Charges $42,434 $42,429 $7,605 $400 Miscellaneous $1,910 $1,910 $1,510 $178,358 Total Human Resources $274,017 $218,484 $40,126 $0 $50,000 $100,000 $150,000 $200,000 $250,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges Miscellaneous 2019 Budget Impacts Personnel Services 1 Additional FTE to start July 1 -Develop Organizational Excellence – Strategic Plan Element Services and Charges $29,888 for Labor Relations, funding EAP, Background Checks, and Training 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $425,617 Personnel Services $430,904 $430,554 $4,937 3.7 FTEs (Benefitted)3.6 3.6 -0.1 1.0 Part-Time (Non-Benefitted)1.0 1.0 0.0 $4,750 Supplies $4,750 $4,750 $0 $169,470 Services and Charges $197,282 $197,147 $27,677 $3,800 Miscellaneous $3,900 $3,900 $100 $603,637 Total Administration $636,836 $636,351 $32,714 2019 Budget Impacts Service and Charges $112,500 –Assessing Services (contract with Washington County) $40,000 –Operational Review (Public Works) –Develop Organizational Excellence – Strategic Plan Element GENERAL FUND Administration $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2017 Adopted 2018 Requested 2018 Proposed Operating Expenditures Personnel Services Supplies Services and Charges Miscellaneous 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $146,047 Personnel Services $0 $0 -$146,047 1.0 Part-Time (Benefitted)0.0 0.0 -1.0 $2,500 Supplies $0 $0 -$2,500 $166,281 Services and Charges $196,122 $196,111 $29,830 $314,828 Total Legal $196,122 $196,111 -$118,717 GENERAL FUND Legal $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges 2019 Budget Impacts Services and Charges New Contractual Agreement 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $25,252 Personnel Services $135,738 $110,831 $85,579 1.5 FTEs (Benefitted)1.5 1.5 0.0 $10,750 Supplies $11,250 $11,250 $500 $128,141 Services and Charges $120,009 $119,949 -$8,192 $500 Miscellaneous $1,000 $1,000 $500 $164,643 Total Plant/City Hall $267,997 $243,030 $78,387 GENERAL FUND Plant/City Hall $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Perssonnel Services Supplies Services and Charges Miscellaneous 2019 Budget Impacts Personnel Services FTE -Facilities Supervisor to start October 1, 2018 –Develop Organizational Excellence –Strategic Plan Element 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $379,646 Personnel Services $394,155 $393,655 $14,009 3.75 FTEs (Benefitted)3.75 3.75 0.0 $3,250 Supplies $2,400 $2,400 -$850 $73,946 Services and Charges $107,884 $75,268 $1,322 $7,900 Miscellaneous $5,700 $5,700 $-2,200 $464,742 Total Community Development $510,139 $477,023 $12,281 2019 Budget Impacts Services and Charges $17,500 –Aiple Property Plan Develop our Community –Strategic Plan Element $15,000 –Bergstein Property Plan Develop our Community –Strategic Plan Element $15,000 –Entrance Monument Design Plan Develop our Community –Strategic Plan Element $10,000 –Comp Plan Ordinance Amendments $5,000 –HPC Matching Funds GENERAL FUND Community Development $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $2,912,728 Personnel Services $3,583,805 $3,165,170 $252,442 26.0 FTEs (Benefitted)30.0 26.00 0.0 3.0 Seasonal Positions 3.0 3.0 0.0 $95,100 Supplies $94,600 $69,800 -$25,300 $276,346 Services and Charges $314,653 $309,408 $33,062 $23,500 Miscellaneous $23,500 $22,750 -$750 $3,307,674 Total Police $4,016,558 $3,567,128 $259,454 GENERAL FUND Police $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges Miscellaneous 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $1,529,112 Personnel Services $1,739,685 $1,632,681 $103,569 11.75 FTEs (Benefitted)13.0 12.75 1.0 30.0 Part-Time (Non-Benefitted)30.0 30.0 0.0 $55,800 Supplies $58,800 $47,300 -$8,500 $262,438 Services and Charges $298,295 $298,045 $35,607 $10,250 Miscellaneous $10,750 $10,500 $250 $1,857,600 Total Fire $2,107,530 $1,988,526 $130,926 GENERAL FUND Fire $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges 2019 Budget Impacts SAFER Grant Match not included in operating budget Establish a contingency 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $332,413 Personnel Services $368,180 $373,437 $41,024 4.0 FTEs (Benefitted)4.0 4.0 0.0 $7,800 Supplies $10,000 $9,300 $1,500 $48,992 Services and Charges $53,312 $49,382 $390 $1,750 Miscellaneous $1,250 $1,250 -$500 $390,955 Total Inspections $432,742 $433,369 $42,414 GENERAL FUND Inspections (Building) $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges 2019 Budget Impacts Personnel Services $5,000 for Over-Time -Develop Organizational Excellence – Strategic Plan Element 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $1,500 Supplies $1,500 $500 -$1,000 $4,166 Services and Charges $4,170 $870 -$3,296 $4,000 Miscellaneous $4,000 $2,500 -$1,500 $9,666 Total Civil Defense $9,670 $3,870 -$5,796 GENERAL FUND Emergency Management $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Supplies Services and Charges Miscellaneous 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $333,685 Personnel Services $357,381 $356,256 $22,571 3.25 FTEs (Benefitted)3.25 3.25 0.0 1.0 Seasonal Positions 1.0 1.0 0.0 $4,500 Supplies $5,000 $4,500 $0 $32,743 Services and Charges $65,513 $63,896 $31,153 $2,500 Miscellaneous $2,500 $2,000 -$500 $373,428 Total Engineering $430,394 $426,652 $53,224 GENERAL FUND Engineering $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges 2019 Budget Impacts Service and Charges $45,000 –ADA Study Develop Community –Strategic Plan Element Fund $20,000 with Grant 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $637,436 Personnel Services $658,180 $650,230 $12,794 6.75 FTEs (Benefitted)6.85 6.75 0.0 4.0 Seasonal Positions 4.0 4.0 0.0 $286,535 Supplies $297,885 $275,285 -$11,250 $202,731 Services and Charges $279,303 $238,032 $35,301 $1,300 Miscellaneous $15,300 $10,300 $9,000 $1,128,002 Total Streets $1,250,668 $1,173,847 $45,845 GENERAL FUND Streets $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges Miscellaneous 2019 Budget Impacts Service and Charges $25,000 –Sealcoating 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $833,404 Retirees Health Insurance $1,057,142 $1,020,570 $187,166 $166,600 Services and Charges $166,600 $166,600 $0 $0 DARTS Bus Loop $5,000 $5,000 $5,000 $5,000 WaCo Historical Society $7,500 $5,000 $0 $16,000 Community Thread $16,000 $16,000 $0 $10,500 Youth Service Bureau $12,000 $10,500 $0 $86,500 Miscellaneous $86,600 $71,600 -$14,900 $1,118,804 Total Unallocated $1,350,842 $1,295,270 $177,266 GENERAL FUND Unallocated $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Miscellaneous Services and Charges Retiree Health Insurance 2019 Budget Impacts Service and Charges DARTS Bus Loop –3 Year Commitment Develop Community – Strategic Plan Element Retiree Health Insurance Actual/Budget cost to City for Last 9 Years and Proposed 2018* $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2010 2011 2012 2013 2014 2015 2016 2017 2018*2019* * Budget Numbers 2019 Budget Impacts Retiree Health Insurance 10% of Levy Variance is 29% of the total levy increase SPECIAL REVENUE FUNDS OPERATING REVENUES/EXPENDITURES 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $2,956 Services and Charges $2,982 $2,980 $24 $5,022 Miscellaneous $8,700 $8,700 $3,678 $50,000 Fireworks $46,000 $46,000 -$4,000 $0 Bridge Opening Festival $15,000 $15,000 $15,000 $57,978 Total Expenditures $72,682 $72,680 $14,702 SPECIAL REVENUE FUND Special Events $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Services and Charges Miscellaneous Bridge Opeing Festival 2018 Adopted Revenue Type 2019 Requested 2019 Proposed Variance $47,978 Property Taxes $48,000 $48,000 $22 $10,000 Donations $10,000 $10,000 $0 $57,978 Total Revenues $58,000 $58,000 $22 2019 Budget Impacts Planned use of Fund Balance ($20,708)for Bridge Opening Festival 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $234,000 Supplies $232,000 $232,000 -$2,000 $1,149,731 Services and Charges $1,228,477 $1,228,332 $78,601 $17,000 Miscellaneous $17,500 $17,500 $500 $174,326 Debt Service Contribution $152,473 $152,618 -$21,708 $1,575,057 Total Expenditures $1,630,450 $1,630,450 $55,393 SPECIAL REVENUE FUND St Croix Valley Recreation Center $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Supplies Services and Charges Miscellaneous Debt Service 2018 Adopted Revenue Type 2019 Requested 2019 Proposed Variance $1,473,850 Charges for Services $1,630,450 $1,630,450 $156,600 $18,310 St Croix Soccer Club $18,310 $18,310 $0 $1,492,160 Total Revenues $1,648,760 $1,648,760 $156,600 $0 $100,000 $200,000 $300,000 Debt Service Contribution 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $1,043,276 Personnel Services $1,145,074 $1,088,638 $45,362 $110,600 Supplies $112,200 $112,200 $1,600 $146,489 Services and Charges $179,507 $179,507 $33,018 $3,625 Miscellaneous $4,125 $4,125 $500 $1,303,990 Total Expenditures $1,440,906 $1,387,470 $80,480 SPECIAL REVENUE FUND Library $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges Miscellaneous 2018 Adopted Revenue Type 2019 Requested 2019 Proposed Variance $1,218,490 Property Taxes $1,345,206 $1,288,770 $70,280 $66,300 Services and Charges $82,200 $82,200 $15,900 $19,200 Miscellaneous $13,500 $13,500 -$5,700 $1,303,990 Total Revenues $1,440,906 $1,384,470 $80,480 $0 $500,000 $1,000,000 $1,500,000 2014 2015 2016 2017 2018 2019 Property Taxes Add'l MOE2019 Budget Impacts 6% increase in property taxes (2018 Adopted vs 2019 Proposed) 2019 Maintenance of Effort (MOE) -$852,617 SPECIAL REVENUE FUND Library (Continued) Funds Held by City for Library Spending Restrictions Use Restrictions Principal Amount Fund Balance 12/31/17 Spendable Balance 2018 Budget Revenues 2018 Budget Expenditures Minerva Income Materials $23,860 $24,340 $480 $150 $150 McCluer-Webster Interest Materials $10,000 $10,337 $337 $75 $75 Hollis Murdock Interest Materials $1,800 $1,843 $43 $15 $15 Personnel (Sunday) Grant $0 $118 $118 $1,500 $1,500 Helen Lawson*Income Service to Public $0 $37,552 $37,552 $10,000 $10,000 Dr Van Meier Interest Medical Materials $1,571 $1,277 -$294 $12 $12 Government Gifts Unrestricted $0 $6,666 $6,666 $5,000 $5,000 Stillwater Public Library Foundation $0 $614 $614 $38,500 $38,500 Kilty Building Maint $50,000 $50,058 $20 $20 Miscellaneous Donations (see next slide)$0 $15,678 $15,678 $15,300 $15,300 TOTAL $87,231 $150,683 $70,572 $70,572 SPECIAL REVENUE FUND Library (Continued) Other Library Donors include: Athena Margaret Rivers Alice O’Brien Estate Small Donations Friends of the Stillwater Public Library Stillwater Public Library Foundation SPECIAL REVENUE FUND Library (Continued) Sunday Hours 50% Levy Funded/50% Grant Funding Prior Funding –50% Foundation Grant/50% Levy Support Funding -In-Kind Donations from Foundation $24,000 -Venue Coordinator $18,720 -Volunteer Coordinator $1,500 –Book weeding support Collection Funding from Other Sources $10,000 Materials –Lawson, Minerva, etc $8,100 Materials Grant –Foundation $5,000 Programming Grants –Foundation $5,000 Materials Grants –Friends of the Library $5,000 Programing Grants –Friends of the Library $5,600 Program Expenditures –MELSA/Legacy Funds Supplemental Project $8,000 Strategic Planning –Other Government Gifts ($5,000)/ ($3,000) Alice O’Brien 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $560,626 Personnel Services $776,523 $659,122 $98,496 6.25 FTEs (Benefitted)8.05 6.25 0.0 4.0 Seasonal Positions 4.0 4.0 0.0 $119,680 Supplies $136,100 $118,600 -$1,080 $195,923 Services and Charges $223,112 $204,701 $8,778 $47,000 Miscellaneous $67,000 $35,500 -$11,500 $923,229 Total Expenditures $1,202,735 $1,017,923 $94,694 SPECIAL REVENUE FUND Parks $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Personnel Services Supplies Services and Charges 2018 Adopted Revenue Type 2019 Requested 2019 Proposed Variance $894,129 Property Taxes $1,170,435 $981,623 $87,494 $1,100 Licenses and Permits $1,300 $1,300 $200 $25,000 Services and Charges $28,000 $28,000 $3,000 $3,000 Miscellaneous $3,000 $7,000 $4,000 $923,229 Total Revenues $1,202,735 $1,017,923 $94,694 2019 Budget Impacts $15,000 –Trail Maintenance (Sealcoating/Crack Seal) $22,000 –Tree Removal 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $15,000 Supplies $15,000 $15,000 $0 $15,000 Total Expenditures $15,000 $15,000 $0 SPECIAL REVENUE FUND Community Beautification $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Supplies 2018 Adopted Revenue Type 2019 Requested 2019 Proposed Variance $15,000 Property Taxes $15,000 $15,000 $0 2019 Budget Impacts Per Resolution #2011-07, dated January 4, 2011 – requires a minimum $15,000 budget allotment. 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $23,644 Services and Charges $23,644 $23,644 $0 $11,526 Miscellaneous $11,526 $11,526 $0 $35,170 Total Expenditures $35,170 $35,170 $0 SPECIAL REVENUE FUND Washington County Recycling Grant $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Services and Charges Miscellaneous 2018 Adopted Revenue Type 2019 Requested 2019 Proposed Variance $35,170 Intergovernmental $35,170 $35,170 $ 2018 Adopted Expenditure Type 2019 Requested 2019 Proposed Variance $16,755 Personnel Services $17,660 $17,660 $905 .25 FTEs (Benefitted).25 .25 0.0 $0 Services and Charges $37 $37 $37 $213,750 Lodging Tax Disbursements $218,500 $218,500 $4,750 $230,505 Total Expenditures $236,197 $236,197 $5,692 SPECIAL REVENUE FUND Lodging Tax $0 $50,000 $100,000 $150,000 $200,000 $250,000 2018 Adopted 2019 Requested 2019 Proposed Operating Expenditures Lodging Tax Disbursements Service and Charges Personnel Services 2018 Adopted Revenue Type 2019 Requested 2019 Proposed Variance $225,000 Intergovernmental $230,000 $230,000 $5,000 Capital Outlay –Funded with GO Debt Computer Purchases over $500/All Other Purchases $1,000 or more with a useful life of 1 year or more. 2019 Requested 2019 Proposed General Fund Mayor & City Council $5,000 $5,000 MIS $337,200 $87,200 Human Resources $3,000 $3,000 Administration $2,000 $2,000 Plant/City Hall $1,500 $1,500 Community Development $2,100 $2,100 Police $316,200 $275,000 Fire $826,400 $566,400 Building Inspections $2,000 $2,000 Engineering $33,800 $33,800 Streets $637,000 $550,000 Total General Fund $2,166,200 $1,528,000 St Croix Valley Recreation Center $45,050 $45,050 Library $136,600 $100,000 Parks $818,300 $600,000 Sanitary Sewer $455,900 $265,000 TOTAL $3,622,050 $2,538,050 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2019 Requested 2019 Proposed General Fund SCVRC Library Parks Sanitary Sewer Proposed Street Projects And Funding Sources 2019 Proposed Street Improvement Projects Bond Proceeds TAF State Aid Washington County Special Assessments Total Cost 2019 Annual Street Improvement Project $450,000 $400,000 $1,350,000 $2,200,000 Neal Avenue Improvement $200,000 $200,000 CASH 5 Brick Street to Sycamore $80,000 $2,420,000 $150,000 $2,650,000 TOTAL $450,000 $200,000 $480,000 $2,420,000 $1,500,000 $5,050,000 Capital Improvement Plan -Strategic Plan Element Other Proposed Projects And Funding Sources 2018 Proposed Other Projects TIF State of MN Bonding Bill Unfunded Total Cost St Croix Riverbank Stabilization $1,650,000 $1,650,000 $3,300,000 Downtown Streetscape Improvements $80,000 $80,000 Veterans Memorial/Cub Parking Lot Improvements $100,000 $100,000 Entrance Monument $50,000 $50,000 TOTAL $1,750,000 $1,650,000 $130,000 $3,530,000 Capital Improvement Plan -Strategic Plan Element ENTERPRISE FUNDS Sanitary Sewer Fund Rates automatically set to increase Met Council Rate Study Long Term Forecasting Replenish reserves Storm Sewer Fund Currently financially sound Signs & Lighting Fund Revenues slightly above expenditures Continue to Monitor Yearly ENTERPRISE FUNDS (Continued) Parking Fund Monitored by Parking Commission Currently fund able to fund: Operating Expenses Capital Expenses Parking Ramp Fund Monitored by Parking Commission Currently able to fund: Operating Expenses Need to begin setting aside reserves Major replacement/capital items RESOLUTION 2018-175 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 $1,505,862.08 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 21st day of August, 2018. Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk EXHIBIT "A" TO RESOLUTION #2018-175 LIST OF BILLS 3D Specialties Inc. Accela Inc Ace Hardware Action Rental Inc. Advance Auto Parts Advanced Sportswear Amano McGann Inc Amsterdam Animal Humane Society Aspen Mills Berger Susan Board of Water Commissioner Bolton and Menk Inc. Brines CalAtlantic Homes Century Power Equipment Cintas Corporation Clifton LarsonAllen LLP Cole Papers Comcast Computer Integration Technologies Core & Main CoStar Realty Information Inc Coverall of the Twin Cities Cub Foods Curb Masters Inc. Daleo Dolson Katherine ECM Publishers Emergency Automotive Emergency Serv Consulting Inc. Erenberg Sarah Fastenal Company Fire Safety U.S.A. Flaherty & Hood P.A Freds Tire Company Frontier Ag & Turf Galls LLC Gertens Wholesale Goodyear Commercial Tire Gopher State One Call Inc. Greater Stillwater Chamber of Commerce Hardrives Inc. Hassis Yard Services Haussner Plumbing LLC Supplies ESS Annual Ma int. Supplies Concrete and mixing trailer Equipment repair supplies Uniforms Tickets & Gate Arm Pens Pound charges Hiviz vests Refund of parking vouchers WAC Charges Professional services Meals Grading Escrow Refunds Equipment repair supplies Uniforms & mat cleaning Professional services Supplies Cable TV IS Developer Supplies Property professional Commercial cleaning services Cake Concrete repair Janitorial supplies Park Fee Refund Publications Vehicle outfitting Consulting Reimburse for expenses Supplies Compressor service Classification & compensation Tube Equipment repair supplies Uniforms & supplies Mulch Tires Locates Celebration of the St . Croix 2018 Street Project Mowing service Drinking fountain parts Page 1 4,531.40 1,044.18 447.73 385.00 368.54 684.00 1,202.00 1,034.50 374.00 1,615.86 94.50 5,148.00 2,405.00 346.95 7,500.00 689.60 654.99 4,000.00 0.08 49.39 1,894.00 29.52 376.83 540.00 50.46 22,698.89 612.34 85.00 359.35 7,133.84 1,179.00 34.24 45.06 1,642.22 781.25 6.95 378.48 397.38 1,842.70 954.20 625.05 40.00 692,219.21 150.00 425.00 EXHIBIT "A" TO RESOLUTION #2018-175 Heritage Printing Inc. Hoisington Koegler Group Inc Holiday Companies Jefferson Fire and Safety Inc . Johnson Lacey Johnson Controls Fire Protection LP Junker Brad Kelly & Lemmons PA Kowalski's Market L.T.G .Power Landscape Research LLC League of MN Cities Ins Tr Levander Gillen & Miller PA Loffler Companies Madden Galanter Hansen LLP Mansfield Oil Company Marshall Electric Company Menards Metropolitan Council Minnesota Occupational Health Minnesota Turf & Grounds Foundation MP Nexlevel LLC MTI Distributing Municode NELCOM Wireless Comm. Nuss Truck & Equipment Office Depot OnSite Sanitation O'Reilly Auto Parts Peterson Austin Pioneer Rim and Wheel Co. Quill Corporation RDO EQUIPMENT CO. Rehn Code Consulting Services Robole Donna Safe Fast Inc SiteOne Landscape Supply St. Croix Boat and Packet Co. Stillwater and Oak Park Heights CVB Stillwater Gazette Stillwater Motor Company Stillwater Towing Streichers Summit Companies SW/WC Service Cooperatives TBEI lnc/Crysteel Manufacturing Tennant Sales & Service Co. Notices Professional services Vehicle washes Equipment Refund of parking fees Alarm labor & sensors Reimburse for expenses Prosecution Meals for elections Equipment repair supplies Professional services Quarterly Municipality Insurance Professional services Professional services & equipment Labor Relations Services Fuel Electrical repair Supplies Wastewater Charge & SAC Drug test MTGF Field Day Locating Tire Code pages Siren repair Equipment repair supplies Office supplies Portable Restroom Equipment repair supplies Reimburse for Narcan case Equipment repair supplies Office supplies Equipment repair supplies Plan review Reimburse for expenses Supplies Supplies Dock Space Lease Qtrly Lodging Tax Subscription Equipment repair supplies & service Towing service Drug test kit Inspection Retiree & COBRA Health Insurance Equipment repair supplies Equipment repair supplies Page 2 539.00 14,239 .05 460.00 505.23 18.00 876.83 180.99 2,170.00 821.64 89.06 7,631.00 68,965.00 3,125.00 9,640.54 1,048.66 9,449.08 2,086.00 158.44 158,639.63 208.20 105.00 1,527.50 333.42 970 .40 1,320.20 732 .76 95.37 1,248.92 101.86 27.99 86.98 864.30 144 .25 10,283.57 560.25 296 .25 21.18 2,666 .67 57,196.37 42.00 4,270.78 100.00 189.93 1,115.00 80,901.12 550.00 25.15 EXHIBIT "A" TO RESOLUTION #2018-175 Thomson Reuters Thoren Dawn TKDA Toll Gas and Welding Supply Tri-State Bobcat US Bank Voyant Communications Washington County License Center Water Works Irrigation LLC Wenck Construction Wisner Michael Wold Architects and Engineers Woodchuck Tree Care LLC WSB & Associates Inc. Wulfing David Zep Sales & Service REC CENTER 1ST Line/Leewes Ventures LLC Ace Hardware Arrow Sports Group ASCAP A-Z Restaurant Equipment Becker Arena Products Cintas Corporation Coca-Cola Distribution Comcast ECM Publishers Grandstay Hotel & Suites HDR Architecture Heritage Printing Inc. Hodges Badge Co Inc Ice Skating Institute Menards MN Dept of Labor and Industry Pepsi Beverages Company Riedell Shoes Inc. Sentry Systems Inc . St. Croix Boat and Packet Co. Titan Energy Systems Twin Cities Dots & Pop United Rentals North America Vic's Crane & Heavy Haul Inc. Information Charges Reimburse for shipping Marylane Drainage Cylinders Equipment repair supplies & equipment Paying agent fees Phone License renewal Irrigation City Hall Project Reimburse for work boots City Hall Project Remove logs and debris Veteran's Memorial Park Improvements Reimburse for dog boarding Zep o Shine Snacks for concessions Equipment repair supplies Concession supplies Music License Cooler Equipment repair supplies Mat cleaning service Beverages for concessions Internet St. Croix Rec Center Bids Refund of duplicate payment Rec Center Dome Project Business cards Supplies Skater memberships Supplies Boiler license Beverages for concessions Skates Alarm monitoring Arena billing Generator service Treats for concessions Bleacher heat Hoist to roof Page 3 141.94 24.70 9,552.25 134.27 3,043.88 500.00 529.79 54.50 3,000.00 5,100.00 134.84 5,174.88 1,100.00 1,220.25 144.00 251.95 846.80 91.31 676.87 12 .25 1,694.00 817.92 257 .50 1,061.28 109.85 87.00 800.00 33,577.64 69.25 808 .38 15.00 414.97 10.00 499.99 831.09 140.85 32,303.08 924.00 955.20 1,752 .80 1,017.50 EXHIBIT "A" TO RESOLUTION #2018-175 Page 4 CREDIT CARD Amazon.com Supplies 553 .04 B&H Photo Charger for radar unit 39.95 Backgroundchecks.com Back ground checks 200.70 BCA Training & Auditing Training 450.00 Ferguson Enterprises Inc. #1657 Drinking fountain 1,192 .86 Holiday Inn St. Cloud LMC Conference housing 209.50 MN State Colleges & Univ. CPR renewal 25 .00 National Assa. of School Resource Officers Training 485.00 St . Croix River Assn NEMO workshop registration 20 .00 Stillwater Post Office Shipping 28.18 Wolf Marine Inc. Fuel 121.61 LIBRARY Ace Hardware Janitorial Supplies 114.84 Brodart Co Materials 4,813.65 CDW Government Inc. AV Upgrade Capital Project 1,413.60 Cintas Corporation Mat & towel cleaning service 69.84 Cole Papers Janitorial Supplies 343.46 Culligan of Stillwater Water 41 .85 Demeo Inc. Library Supplies 152.00 Floyd Total Security Security Monitoring 168.12 Friends of the Stillwater Public Library June Friends Sale Reimbursements 388.50 lnfogroup Materials 390 .00 lnfogroup Materials 620.00 MEI Total Elevator Solutions Monthly Service 126.26 Menards Janitorial Supplies 17.12 Midwest Tape Materials 2,246.59 Office of MN IT Services June Phone 138.50 Recorded Books Inc Materials 19.98 Reyers Mariah E. Programs 90.00 Thorager Natasha Programs 60.00 Toshiba Business Solutions Maintenance Contract 121.28 LIBRARY CREDIT CARDS Amazon.com Supplies 233 .49 JULY MANUALS Bridgewater Bank Curve Crest Villas 14,853.13 CDW Government Equipment 2,966.21 Cummins Repair 794 .80 Grainger Supplies 44.68 EXHIBIT "A" TO RESOLUTION #2018-175 Johnson Controls Fire Protection Lake Elmo Bank Long Lake Villas Ltd Partnership Newman Signs Pfister Richard H Pi nnacle Building Services Postmaster Toshiba Business Solutions United States Treasury Xcel Energy ADDENDUM Accela BHE Renewables ECM Publishers Helm Charles Simplifile LC Xcel Energy Adopted by the City Council this 21st Day of August, 2018 Library ramp Curve Crest Villas Long Lake Villas Punch Radius Long Lake Villas Window cleaning Utility Billing Postage Maint Contract PCORI Tax Energy Web Payments Solar Garden Publications Permit refund Filing fees Energy Page 5 511.00 14,853.13 25,161.20 1,496.40 9,386.77 775 .00 2,836.32 181.96 553.70 28,124.79 550 .85 6,839.68 47 .50 90.00 150.00 57,163.00 TOTAL 1,505,862.08 TO: Mayor and City Council Members FROM: Tom McCarty, City Administrator DATE: August 21, 2018 SUBJECT: Tax Forfeit Property BACKGROUND The City has been contacted by Washington County regarding the availability of tax forfeited parcels within the Terra Springs development (two garage units and one storage unit) – see attached letter from Washington County. The parcels have been in use by the previous owners of the units who are also owners of a condo unit within Terra Springs. The repurchase period has expired and the best use of the units would be to convey them to the owners of the condo. Washington County is asking the City of Stillwater to request by resolution, the purchase of these parcels from the County at a fixed price of $1500 plus costs of $125.95 and in turn, convey the parcels to the previous owners at the same fixed price plus any administrative costs incurred by the City. This type of acquisition and conveyance of tax forfeit parcels is authorized by state statute (excerpts attached). The City Attorney has drafted a purchase agreement (attached) to be signed by the previous owners of the tax forfeit parcels. The City Attorney further recommends that the City’s purchase of the subject tax forfeit parcels be conditioned upon execution of the purchase agreement by the previous owners of the tax forfeit. RECOMMENDATION Staff recommends adoption of the resolution entitled, “Requesting Purchase Of Tax Forfeited Parcels From Washington County For The Purpose Of Conveying Said Parcels To Previous Owners Of The Tax Forfeited Parcels.” REQUESTING PURCHASE OF TAX FORFEITED PARCELS FROM WASHINGTON COUNTY FOR THE PURPOSE OF CONVEYING SAID PARCELS TO PREVIOUS OWNERS OF THE TAX FORFEITED PARCELS WHEREAS, real property located in Washington County, State of Minnesota, legally described as: garage unit numbers 42 and 35 (G42 and G35), storage unit number 4 (S4), Territorial Place, common interest community number 242, Washington County , Minnesota (Parcel ID#’s 28.030.2012.0247, 28.030.20.12.0254, and 28.030.20.12.0276) have gone tax forfeit; and WHEREAS, pursuant to state statutes, these tax forfeit parcels are available to the City of Stillwater for purchase at a fixed price of $1500 plus $125.95 (as established by the County Board); and WHEREAS, once the tax forfeit parcels would be purchased by the City of Stillwater, the parcels would then be conveyed to the previous owners of the parcels for the fixed price of $1500 plus all administrative costs incurred by the City to acquire and convey the parcels to the previous owners pursuant to the attached purchase agreement. NOW THEREFORE BE IT RESOLVED, by the City Council of Stillwater, Minnesota, that the City hereby requests purchase of tax forfeited parcels from Washington County (described as real property located in Washington County, State of Minnesota, legally described as: garage unit numbers 42 and 35 (G42 and G35), storage unit number 4 (S4), Territorial Place, common interest community number 242, Washington County, Minnesota (Parcel ID#’s 28.030.2012.0247, 28.030.20.12.0254, and 28.030.20.12.0276) at a cost of $1500 plus $125.95, for the purpose of conveying said parcels to previous owners of the tax forfeited parcels at the fixed price of $1500 plus all administrative costs incurred by the City conditioned upon execution of the attached purchase agreement by the previous owners. BE IT FURTHER RESOLVED that the Stillwater City Council authorizes the Mayor and City Clerk to sign the purchase agreement on behalf of the City. Adopted by the City Council of the City of Stillwater this 21st day of August, 2018. _______________________________________ Ted Kozlowski, Mayor ATTEST: _______________________________________ Diane F. Ward, City Clerk Governmental Subdivision Acquisition Tax Forfeited Parcels A governmental subdivision may acquire a tax forfeited parcel either: (1) free of charge as long as it continues to be used for the authorized public use (2) by paying market value for an authorized public purpose (3) by paying less than the market value if the intentions for the property meet the requirements of M.S. 282.01, Subd. la, para. (d). DEFINITION: "GOVERNMENTAL SUBDIVISION". A governmental subdivision may request to purchase a parcel of tax-forfeited land or to acquire it free of charge with a "conditional use deed." The statutes do not define the term, "governmental subdivision," for the purpose of either purchasing tax-forfeited land or acquiring it free of charge with a conditional use deed. (M.S. 282.01, Subd. la) The Department of Revenue (DOR) recommends that the term, "governmental subdivision," be defined in the same way as the term, "political subdivision," is defined for property tax purposes. This definition includes the following local taxing districts: counties, cities, townships, school districts, and special taxing districts. Examples of the special taxing districts that are most likely to purchase tax-forfeited land include, but are not limited to, the following: (1) housing and redevelopment authorities (HRA's) under sections 469.001 to 469.047 (2) economic development authorities (EDA's) under sections 469.090 to 469.1081 (3) port authorities under sections 469.048 to 469.068 (4) watershed districts under chapter 103D See MN Stat 275.066 for a definition of special taxing districts and other entities that apply. 1 (1) free of charge as long as it continues to be used for the AUTHORIZED PUBLIC USE A county may convey tax-forfeited property free of charge to a governmental subdivision that uses the land for an authorized public use. Authorized public use means a use that allows an indefinite segment of the public to physically use and enjoy the property in numbers appropriate to its size and use, or is for a public service facility. (M.S. 282.01, Subd. la, para (e)). The limitations of authorized public uses are enumerated in statute. The following list details the only property uses valid under the term "authorized public use": 1. A road, or right-of way for a road. (M.S. 282.01, Subd. la, para. (e)(l)). 2. A park that is both available to, and accessible by, the public that contains amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters. (M.S. 282.01, Subd. la, para. (e)(2)). 3. Trails for walking, bicycling, snowmobiling, or other recreational purposes, along with a reasonable amount of surrounding land maintained in its natural state. (M.S. 282.01, Subd. la, para. (e)(3)). 4. Transit facilities for buses, light rail transit, commuter rail or passenger rail, including transit ways, park-and- ride lots, transit stations, maintenance and garage facilities, and other facilities related to a public transit system. (M.S. 282.01, Subd. la, para. (e)(4)). 5. Public beaches or boat launches. (M.S. 282.01, Subd. la, para. (e)(S)). 6. Public parking. (M.S. 282.01, Subd. la, para. (e)(6)). 7. Civil recreation or conference facilities. (M.S. 282.01, Subd. la, para. (e)(7)) 8. Public service facilities such as fire halls, police stations, lift stations, water towers, sanitation facilities, water treatment facilities, and administrative offices. (M.S. 282.01, Subd. la, para (e)(8)). CONDITIONAL USE DEEDS. The state deed which is issued by the Department of Revenue (DOR) for this method of acquisition is commonly called a conditional use deed. A conditional use deed contains two clauses that distinguish it from other state deeds. One states the authorized public use, and the other declares that the title is restricted by the authorized public use. This means that the title will revert to the state if the parcel does not continue to be used for the authorized public use. (M.S. 282.01, Subd. le) The county auditor must present the governmental subdivision's conveyance request to the county board . Approval by the county board is completed by resolution. The resolution should contain the following information: (1) a statement approving the conveyance, (2) the names of the governmental subdivisions, (3) the identification number (PID) of each parcel, (4) a summary of 2 the authorized public use for each parcel, (5) the names of each board member with an indication of how each one voted, and (6) the date and signature of the clerk of the county board. The Property Tax Division, acting for the DOR, will review the information on the form and either approve or disapprove the conveyance. If the conveyance is approved, the Property Tax Division will execute a conditional use deed in the name of the governmental subdivision and mail it to the county auditor. The county auditor is to have the deed recorded before forwarding it to the governmental subdivision. RULE OF REVERSION. The governmental subdivision has three years from the date of conveyance to implement the authorized public use on the tax-forfeited land. If after those three years the governmental subdivision has failed to put the land to the intended use, or has abandoned that use, the governing body of the subdivision must do one of two things: 1. With the approval of the county board, the governing body may purchase the property for an authorized public purpose at the present market value as determined by the county board, OR 2. The governing body of the subdivision may authorize the proper officers to convey the land, or the part of the land not required for an authorized public use, to the state of Minnesota in trust for the taxing districts. COST OF GOVT . ACQUISITION FOR USE DEEDS. When an application is approved, the Department of Revenue (DOR) will issue a state deed ("use deed") in the name of the governmental subdivision free of charge. (M.S. 282.01, Subd. la) • The issuance of the state deed "free of charge" means that the governmental subdivision does not have to pay the following costs which are charged when the parcel is sold at a private or public auction: (1) the basic sale price, (2) the state deed fee, and (3) the 3% surcharge. • The governmental subdivision does have to pay the following costs in order to record the state deed ("use deed"): (1) the state deed tax, (2) the county recording fee, and (3) the agricultural conservation fee. • The 2010 changes to M.S. 282.01 incorporated a conditional use deed fee. The new provision (M.S. 282.01, Subd. lg) establishes an application fee of $250 for use deeds, $150 of which is refunded if the application is denied. The proceeds from the deed fee are deposited in a Department of Revenue revolving fund and are appropriated to the commissioner of revenue for making the $150 refunds and administering conditional use deed laws. Conditional use deeds are more administratively burdensome than other deeds. 3 I (2) by paying market value for an AUTHORIZED PUBLIC PURPOSE Non-conservation tax-forfeited lands may be sold by the county board for their market value as determined by the county board, to an organized or incorporated governmental subdivision of the state for any public purpose for which the subdivision is authorized to acquire property. (M.S. 282.01, Subd. la, para. (b)) The governmental subdivision must apply to the county board for such a sale. For a governmental subdivision, the language reads: " ... for any public purpose for which the subdivision is authorized to acquire property." (M.S. 282.01, Subd. la, para b). This means that the only restriction on the sale of tax-forfeited land to a governmental subdivision is that the parcel must be used for a purpose authorized by statute, law, or local charter. The parcel does not have to be available to the general public as it does if it is acquired free of charge. Access to the parcel may be limited to a select group of people as long as the purpose is authorized by statute, law, or local charter. Let's use the example to illustrate this point. A city wants to acquire a parcel of tax-forfeited land to build a parking lot next to the city's municipal garage. The parking lot is to be used exclusively by the city employees who work at the garage. The sale of the parcel to the city would not be disapproved . If it pays for the parcel, the city can use it for an employee parking lot. The general public does not have to have access to it. COUNTY BOARD APPROVAL. The county board may sell a parcel of tax-forfeited land to a governmental subdivision or state agency for an authorized public purpose. The verb, "may," indicates that the county board is responsible for approving or denying each purchase request. In order to make a decision, the county board has the right to require the governmental subdivision or state agency to submit a written application containing at least the following information: (1) a description of the proposed public purpose for which the parcel will be used, and (2) a citation for the statute, law, or charter provision that authorizes it to acquire property for the proposed public purpose. Before ruling on a sale, the county board may want to ask the following questions: (1) Is the proposed purpose authorized by statute, law, or local charter?, and (2) Will the proposed purpose serve the public interest as much or more than having the parcel back on the tax rolls? If both questions can be answered in the affirmative, the county board may choose to approve the request. Approvals should be confirmed by resolution. Unlike the "conditional use deed", the governmental subdivision or state agency does not need the approval of the Department of Revenue (DOR) to purchase a parcel of tax-forfeited land. The purchase request must be made directly to the county auditor and must be approved by the county board. NO RULE OF REVERSION FOR GOVT. PURCHASES. The rule of reversion (M.S. 282.01, Subd. le-le) does not apply to the purchase of a parcel of tax-forfeited land by a governmental subdivision or state agency. Once the sale has been approved by the county board and the state deed has been recorded, the title does not have to be reconveyed to the state regardless of what the governmental subdivision does with the parcel 4 (3) by paying LESS THAN MARKET VALUE Correcting Blight and Creating Affordable Housing Non-conservation tax-forfeited lands may be sold by the county board to an organized or incorporated governmental subdivision of the state or state agency for less than their market value if: 1. The county board determines that a sale at a reduced price is in the public interest because a reduced price is necessary to provide an incentive to correct the blighted conditions that make the lands undesirable on the open market, or the reduced price will lead to the development of affordable housing; AND 2. The governmental subdivision has documented its specific plans for correcting the blighted conditions or developing affordable housing, and the specific law or laws that empower it to acquire real property in furtherance of the plans. (M.S. 282.01, Subd. la, para. (d)) The Department of Revenue has not defined what a "specific plan" is or is not. The county is therefore given some discretion as to what is specific enough, reliable enough, or extensive enough to meet this requirement . The Department of Revenue does not need a copy of the plan and it will not directly officiate whether it meets the "specific plan" threshold. However, the plan does need to be in written form and describe with some specificity the intentions for the use of the land. Perceived abuses may cause the Department to consider proposing law changes with more specific requirements. The intent behind M.S. 282.01, Subd. la, para. {d) is to avoid general economic development land speculation. A discounted price for the land is earned by the public good associated with blight removal or affordable housing. Citing generic pursuits within the entirety of the Housing and Redevelopment Authority statutes is not sufficient to qualify for the discounted price for the sale of land . A county that suspects economic development land speculation is a motivating factor for the application by the governmental subdivision should not approve the sale. The county must recite the specific statute or law that empowers the local unit to acquire the property. The Department of Revenue may provide some direct oversight in this area to ensure that there is authority since the deed and the act of acquisition are immediately relevant. If the laws outlined above are complied with for a tax-forfeited land sale at less than market value, the commissioner of revenue must convey the property on behalf of the state by quit claim deed. If the sale is to a state agency, the commissioner must issue a conveyance document that releases the property from the trust in favor of the taxing districts. (M.S.282.01, Subd.la, para. {d)) 5 Conservation Purposes Conservation tax-forfeited land may also be sold to a governmental subdivision of the state for less than its market value for the following purposes: 1. Creation or preservation of wetlands 2. Drainage or storage of storm water under a storm water management plan, OR 3. Preservation, or restoration and preservation, of the land in its natural state. (M.S.282.01, Subd. la, para. (h)) The options under M.S. 282.01, Subd. la, para. (h) require a restrictive covenant for 30 years. The lands may be reconveyed back to the state, at which point the restrictive covenant would cease. If reconveyed lands are to be sold, the county board can take into account the original amount paid when setting the terms of the sale. If the reconveyed lands are unplatted and located outside of an incorporated municipality, the sale is subject to the approval of the commissioner of the Department of Natural Resources if the commissioner determines there is a mineral use potential. I Other Information COST OF GOVT. PURCHASE. (applies to options 2 & 3) A governmental subdivision is required to pay not less than the value of the property as determined by the county board plus the other costs that would be charged to any other purchaser. In most cases, the value of the property will be the same as the basic sale price which other purchasers must pay. The county board makes the final decision after negotiating with the governmental subdivision. The specific costs that must be paid by a governmental subdivision or state agency to purchase a parcel of tax- forfeited land are outlined below. The list assumes that the basic sale price is paid. 1. The Basic Sale Price 2. The State Deed Fee 3. The 3% Surcharge 4. The State Deed Tax 5. The County Recording Fee 6. The Agricultural Conservation Fee 6 PURCHASE AGREEMENT THIS PURCHASE AGREEMENT ("Agreement") is entered into as of ___ _ __ , 2018, by and between the City of Stillwater, a Minnesota municipal corporation ("Seller"), and Thomas R. Jacobsen and Laura L. Jacobsen, husband and wife ("Buyers") ( collectively Buyer and Seller may be described as the "Parties"). RECITALS A. Seller is acqumng certain tax forfeited real property located in Stillwater, Washington County, Minnesota, from Washington County, which is legally described on Exhibit A attached hereto and incorporated herein by reference ("Property"). B. Upon Seller acquiring Title to the Property, Buyer desires to purchase the Property from Seller, and Seller desires to sell the same to Buyer, all on the terms and conditions stated in this Agreement. NOW, THEREFORE, Buyer and Seller agree as follows: 1. Sale. 2. 1.1 1.2 1.3 Sale. Subject to the terms and provisions of this Agreement, Seller shall sell to Buyer, and Buyer shall purchase from Seller, the Property. Effective Date. The effective date of this Purchase Agreement shall be ___ _ ___ , 2018 ("Effective Date"). Purchase Price. The purchase price to be paid by Buyer to Seller for the Property shall be One Thousand Five Hundred Dollars ($1,500.00) ("Purchase Price") payable as follows: (a) Two Hundred Fifty Dollars ($250) as earnest money ("Earnest Money") to be paid to City at the time of execution of this Agreement by Buyer and (b) the balance on the Closing Date (as defined in Section 6) subject to those adjustments, prorations, and credits described in this Agreement in cash or certified funds or by wire transfer pursuant to instructions from Seller. Insurance; Risk of Loss. Seller assumes all risk of destruction, loss or damage to the Property prior to the Closing Date. If, prior to the Closing Date, all or any portion of the Property or access thereto is condemned, taken by eminent domain, or damaged by cause of any nature, Seller shall immediately give Buyer notice of such condemnation, taking or damage. After receipt of notice of such condemnation, taking or damage (from Seller or otherwise), Buyer shall have the option (to be exercised in writing within thirty (30) days) either: (a) To require Seller to (i) convey the Property at Closing (as defined in Section 6) to Buyer in its damaged condition, upon and subject to all of the other terms and conditions of this Agreement without reduction of the Purchase Price, (ii) assign to Buyer at Closing all of Seller's right, title and interest in and to any claims Seller may have to insurance proceeds, condemnation awards and/or any causes of action with respect to such condemnation or taking of or damage to the Property or access thereto, and (iii) pay to Buyer at Closing by certified or official bank check all payments made prior to the Closing Date under such insurance policies or by such condemning authorities, or (b) To terminate this Agreement by giving notice of such termination to Seller, whereupon this Agreement shall be terminated and any amount previously paid by Buyer to Seller, including the Earnest Money, shall be refunded to Buyer and thereafter neither party shall have any further obligations or liabilities to the other, except for such obligations as survive termination of this Agreement. If the right to terminate this Agreement is not exercised in writing within such thirty (30) day period, such right shall be deemed to have been waived. Seller shall not designate counsel, appear in, or otherwise act with respect to the condemnation proceedings without Buyer's prior written consent, which consent shall not be unreasonably withheld. 3. Contingencies. 3.1 Buyer's Contingencies. (a) Unless waived by Buyer in writing, Buyer's obligation to proceed to Closing shall be subject to performance by Seller of its obligations hereunder, the continued accuracy of Seller's representations and warranties provided in Section 7.1, and Buyer's satisfaction, in Buyer's sole discretion, as to the contingencies described in this Section 3 .1 within the time periods set forth below: (1) Inspection. On or before the Contingency Date, Buyer shall have determined, in its sole discretion, that it is satisfied with the results of and matters disclosed by buyer's investigations, surveys, soil tests, engineering inspections, hazardous substance and environmental reviews of the Property and all other inspections and due diligence regarding the Property, including any Due Diligence Materials. (2) Intended Use. On or before the Contingency Date, Buyer shall have determined the acceptability of the Property for its intended use and incidental uses thereto (collectively, the "Proposed Use"). All costs and expenses related to applying for and obtaining any governmental permits and approvals for the Property for the Proposed Use shall be the responsibility of the Buyer. (3) Title Insurance. On or before the Closing Date, Buyer shall have received from Title an irrevocable commitment to issue a title insurance policy for the Property in a form and substance satisfactory to Buyer in Buyer's sole discretion, not disclosing any encumbrance not acceptable to Buyer in Buyer's sole discretion. The foregoing contingencies are for Buyer's sole and exclusive benefit and one or more may be waived in writing by Buyer in its sole discretion. Seller shall reasonably cooperate with Buyer's efforts to satisfy such contingencies, at no out of pocket cost to Seller or assumption of any obligation or liability by Buyer. Buyer shall bear all cost and expense of satisfying Buyer's contingencies. If any of the foregoing contingencies have not been satisfied on or before the applicable date, then this Agreement may be terminated, at Buyer's option, by written notice from Buyer to Seller. Such written notice must be given on or before the applicable date, or Buyer's right to terminate this Agreement pursuant to this Section shall be waived. If Buyer terminates this Agreement pursuant to this Section, then any amount previously paid by Buyer to Seller, including the Earnest Money, shall immediately be refunded to Buyer. Upon termination, neither party shall have any further rights nor obligations against the other regarding this Agreement or the Property, except for such obligations as survive termination of this Agreement. (b) If Buyer elects not to exercise any of the contingencies set out herein, such election may not be construed as limiting any representations or obligations of Seller set out in this Agreement, including without limitation any indemnity or representations with respect to environmental matters. ( c) As used in this Agreement, the "Contingency Date" shall mean the first ( 151) business day occurring sixty (60) days from the Effective Date. 3.2 Seller's Contingencies. Seller's obligation to proceed to Closing shall be subject to the satisfaction, on or prior to the Closing Date, of each of the following conditions: (a) (b) (c) (d) Washington County Conveyanc e of Property to Seller. Washington County Board shall approve the conveyance of the Property to the Seller and Seller shall have acquired title to Property from Washington County. Buyer Performance. Buyer shall have performed and satisfied all agreements, covenants and conditions required pursuant to this Agreement to be performed and satisfied by or prior to the Closing Date. Buyer Representat ions . All representations and warranties of Buyer contained in this Agreement shall be accurate as of the Closing Date. No Default. There shall be no uncured default by Buyer of any of its obligations under this Agreement as of the Closing Date, unless waived by Seller. If any contingency contained in this Section 3 .2 has not been satisficed on or before the Closing Date, then this Agreement may be terminated by written notice from Seller to 4. Buyer and neither party shall have any further rights or obligations with respect to this Agreement or the Property. If termination occurs, Seller shall return the Earnest Money plus any accrued interest to Buyer. All the contingencies in this Section 3.2 are for the benefit of Seller, and Seller shall have the right to waive any contingency in this Section 3 .2 by written notice to Buyer. Closing. The closing of the purchase and sale contemplated by this Agreement ("Closing") shall occur within thirty (30) days after, and not including, the Contingency Date ("Closing Date"). Seller agrees to deliver legal and actual possession of the Property to Buyer on the Closing Date. Unless otherwise agreed to by the Parties, Closing shall occur at DCA Title, 750 Main Street, Suite 208, Mendota Heights, MN 55118 ("Title"). 4.1 Seller's Closing Documents and Deliveries. On the Closing Date, Seller shall execute and/or deliver, as applicable, to Buyer the following: (a) Quit Claim Deed. A quit claim deed conveying title to the Property to Buyer, free and clear of all encumbrances, except the Permitted Encumbrances (the "Deed"). (b) Settlement Statement. A settlement statement with respect to this transaction. ( c) General Deliveries. All other documents reasonably determined by Title to be necessary to transfer the Property to Buyer and to evidence that Seller has: 1. Satisfied all monetary indebtedness with respect thereto; 11. Obtained such termination statements or releases from such secured creditors as may be necessary to ensure that the Property is subject to no monetary liens; iii. Obtained all consents from third parties necessary to effect Seller's performance of the terms of this Agreement, including, without limitation, the consents of all parties holding an interest in the Property; iv. Provided such other documents as are reasonably determined by Title to be necessary to issue policies of title insurance to Buyer with respect to the Property with the so-called "standard exceptions" deleted; and v. Duly authorized the transactions contemplated hereby. 4.2 Buyer Closing Documents and Deliveries. On the Closing Date, Buyer shall execute and/or deliver, as applicable, to Seller the following: (a) Payment of Purchase Price. The Purchase Price in accordance with the terms of Section 1.3. (b) Settlement Statement. A settlement statement with respect to this transaction. ( c) General Deliveries . All other documents reasonably determined by Title to be necessary to evidence that Buyer has duly authorized the transactions contemplated hereby and evidence the authority of Buyer to enter into and perform this Agreement and the documents and instruments required to be executed and delivered by Buyer pursuant to this Agreement, or may be required of Buyer under applicable law, including any purchaser's affidavits or revenue or tax certificates or statements. 5. Proration s . Seller and Buyer agree to the following prorations and allocation of costs regarding this Agreement: 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Title Commitment, Title Policy and Clo s ing Fee. Buyer shall pay all costs for a Title Commitment, all premiums for any title insurance policy it desires with respect to the Property, and all Closing Fees imposed by Title. Transfer Taxes. Buyer shall pay all state deed tax regarding the Deed. Recording Cos ts . Buyer will pay the cost of recording all documents necessary to place record title to the Property in Buyer. Buyer will pay all recording costs with respect to the recording of the Deed. Real Estate Tax es and Special As s ess ments . General real estate taxes applicable to any of the Property due and payable in the year of Closing shall be paid by Buyer and Buyer shall responsible for those allocable to the Closing Date and subsequent thereto. Buyer shall pay in full all special assessments (and charges in the nature of or in lieu of such assessments) levied, pending, postponed, deferred or future assessments with respect to any of the Property as of the Closing Date. Attorneys ' F e es. Buyer shall pay Seller's attorney's fees and its own attorney's, fees incurred in connection with this transaction at Closing. Other Costs. Buyer shall pay all costs incurred by Seller in obtaining fee title to the Property, including, but not limited to all costs incurred by Seller that were imposed by Washington County. Buyer shall pay all other out of pocket costs incurred by Seller in conjunction with this Agreement. Survival. The obligations set forth in this Section 5 survive the Closing. 6 . T itle E xamination. Buyer shall obtain a commitment for an owner's title insurance policy (ALTA Form 2006) issued by Title for the Property, and copies of all encumbrances described in the commitment ("Commitment"); 6.1 Buyer's Objections. Within ten (10) days after Buyer's receipt of the last of the 7. 6.2 Commitment, Buyer may make written objections ("Objections") to the form or content of the Commitment. The Objections may include without limitation, any easements, restrictions or other matters which may interfere with the Proposed Use of the Property or matters which may be revealed by a survey. Any matters reflected on the Commitment which are not objected to by Buyer within such time period or waived by Buyer in accordance with Section 6.2(b) shall be deemed to be permitted encumbrances ("Permitted Encumbrances"). Notwithstanding the foregoing, the following items shall be deemed Permitted Encumbrances: (a) Covenants, conditions, restrictions (without effective forfeiture provisions) and declarations of record, if any; (b) Reservation of minerals or mineral rights by the State of Minnesota, if any; ( c) Utility and drainage easements which do not interfere with the Proposed Use; and ( d) Applicable laws, ordinances, and regulations. Buyer shall have the renewed right to object to the Commitment as the same may be revised or endorsed from time to time. Seller's Cure. Seller shall be allowed twenty (20) calendar days after the receipt of Buyer's Objections to cure the same but shall have no obligation to do so. If such cure is not completed within said period, or if Seller elects not to cure such Objections, Buyer shall have the option to do any of the following: (a) Terminate this Agreement with respect to all of the Property. (b) Waive one or more of its objections and proceed to Closing. If Buyer so terminates this Agreement, neither Seller nor Buyer shall be liable to the other for any further obligations under this Agreement, except for such obligations as survive termination of this Agreement, and any amount previously paid by Buyer to Seller, including the Earnest Money, shall be refunded to Buyer. Warranties and Representations. 7.1 By Seller. Seller warrants and represents the following to Buyer, and acknowledges that Buyer has relied on such representations and warranties in agreeing to enter into this Agreement: (a) Seller is a municipal corporation organized and existing under the laws of the State of Minnesota and has all requisite corporate power and authority to carry on its business as now conducted, to enter into this Agreement, and to perform all of its obligations under this Agreement. Seller acknowledges that it has authority of its governing board to perform all of its obligations and agreements under this Agreement. (b) The execution, delivery and performance by Seller of this Agreement will not violate any provision of any law, statute, rule or regulation or any order, writ, judgment, injunction, decree, determination or award of any court, governmental agency or arbitrator presently in effect having applicability to Seller, or result in a breach of or constitute a default under any indenture, loan or credit agreement or any other agreement, lease or instrument to which Seller is a party or by which it or any of its properties may be bound. (c) To Seller's knowledge, there are no actions, suits or proceedings pending or threatened against or affecting Seller or any of its properties, before any court or arbitrator, or any governmental department, board, agency or other instrumentality which in any of the foregoing challenges the legality, validity or enforceability of this Agreement, or if determined adversely to Seller, would have a material adverse effect on the ability of Seller to perform its obligations under this Agreement. ( d) Seller has not received written notice, and has no knowledge, of (i) any pending or contemplated annexation or condemnation proceedings, or purchase in lieu of the same, affecting or which may affect all or any part of the Property, (ii) any proposed or pending proceeding to change or redefine the zoning classification of all or any part of the Property, (iii) any proposed changes in any road patterns or grades which would adversely and materially affect access to the roads providing a means of ingress or egress to or from all or any part of the Property, or (iv) any uncured violation of any legal requirement, restriction, condition, covenant or agreement affecting all or any part of the Property or the use, operation, maintenance or management of all or any part of the Property. (e) To Seller's knowledge, there are no wells or sewage treatment systems located on any portion of the Property. To Seller's knowledge, there has been no methamphetamine production on or about any portion of the Property. To Seller's knowledge, the sewage generated by the Property, if any, goes to a facility permitted by the Minnesota Pollution Control Agency and there is no "individual sewage treatment system" (as defined in Minnesota Statutes, Section 115.55, subd. l(g)) located on the Property. (f) Seller is not a "foreign person," "foreign corporation," "foreign trust," "foreign estate" or "disregarded entity" as those terms are defined in Section 1445 of the Internal Revenue Code. (g) To Seller's knowledge, except as may be disclosed as part of the Due Diligence Materials, (i) no condition exists on the Property that may support a claim or cause of action under any Environmental Law (as defined below) and there are no Hazardous Substances (as defined below) on the Property, (ii) there has been no release, spill, leak or other contamination or otherwise onto the Property, and (iii) there are no restrictions, clean ups or remediation plans regarding the Property. To Seller's knowledge, except as may be disclosed as part of the Due Diligence Materials, there is no buried waste or debris on any portion of the Property. "Environmental Law" shall mean (a) the Comprehensive Environmental Response Compensation and Liability Act of 1980, 42 U.S.C. § 9601-9657, as amended, or any similar state law or local ordinance, (b) the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901, et seq., (c) the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq., (d) the Clean Air Act, 42 U.S.C. § 7401, et seq., (e) the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., (f) the Safe Drinking Water Act, 42 U.S.C. § 300(f) et seq., (g) any law or regulation governing aboveground or underground storage tanks, (h) any other federal, state, county, municipal, local or other statute, law, ordinance or regulation, including, without limitation, the Minnesota Environmental Response and Liability Act, Minn. Stat. § 115B.01, et seq., (i) all rules or regulations promulgated under any of the foregoing, and G) any amendments of the foregoing. "Hazardous Substances" shall mean polychlorinated biphenyls, petroleum, including crude oil or any fraction thereof, petroleum products, heating oil, natural gas, natural gas liquids, liquefied natural gas or synthetic gas usable for fuel, and shall include, without limitation, substances defined as "hazardous substances," "toxic substances," "hazardous waste," "pollutants or contaminants" or similar substances under any Environmental Law. (h) There are no leases or tenancies with respect to the Property. There are no unrecorded agreements or other contracts of any nature or type relating to, affecting or serving the Property. (i) There will be no indebtedness attributable to the Property which will remain unpaid after the Closing Date. The representations, warranties and other provisions of this Section 7 .1 shall survive Closing; provided, however, Seller shall have no liability with respect to any breach of a particular representation or warranty if Buyer shall fail to notify Seller in writing of such breach within two (2) years after the Closing Date, and provided further that Seller shall have no liability with respect to a breach of the representations and warranties set forth in this Agreement if Buyer has actual knowledge of Seller's breach thereof prior to Closing and Buyer consummates the acquisition of the Property as provided herein. Buyer acknowledges and agrees that, except as expressly specified in this Section 9 of this Agreement, Seller has not made, and Seller hereby specifically disclaims, any representation, warranty or covenant of any kind, oral or written, expressed or implied, or rising by operation of law, with respect to the Property, including but not limited to, any warranties or representations as to the habitability, merchantability, fitness for a particular purpose, title, zoning, tax consequences, physical or environmental condition, utilities, valuation, governmental approvals, the compliance of the Property with governmental laws, the truth, accuracy or completeness of any information provided by or on behalf of Seller to Buyer, or any other matter or item regarding the Property. Buyer agrees to accept the Property and acknowledges that the sale of the Property as provided for herein is made by Seller on an "AS IS," "WHERE IS," and "WITH ALL FAUL TS" basis. Buyer is an experienced purchaser of property such as the Property and Buyer has made or will make its own independent investigation of the Property. The limitations set forth in this paragraph shall survive the Closing and shall not merge in the deed. 7.2 By Buyer. Buyer warrants and represents the following to Seller, and acknowledges that Seller has relied on such representations and warranties in agreeing to enter into this Agreement: (a) This Agreement has been duly executed and delivered and constitutes the legal, valid, and binding obligation of Buyer enforceable in accordance with its terms. (b) The execution, delivery and performance by Buyer of this Agreement will not violate any provision of any law, statute, rule or regulation or any order, writ, judgment, injunction, decree, determination or award of any court, governmental agency or arbitrator presently in effect having applicability to Buyer, or result in a breach of or constitute a default under any indenture, loan or credit agreement or any other agreement, lease or instrument to which Buyer is a party or by which it or any of its properties may be bound. The representations, warranties and other provisions of this Section 7.2 shall survive Closing. 8. 9. Additional Obligations of Seller. 8.1 8.2 8.3 Licenses and Permits. Seller shall transfer to Buyer all transferable rights, if any, in any permits or licenses held by Seller with respect to the Property. Condition of Property at Closing. On the Closing Date, Seller shall deliver to Buyer exclusive vacant possession of the Property. Further Assurances. From and after the Closing Date, Seller agrees to execute, acknowledge and deliver to Buyer such other documents or instruments of transfer or conveyance as may be reasonably required to carry out its obligations pursuant to this Agreement. Commissions. Each party represents that there are no claims for brokerage commissions or finders' fees in connection with the execution of this Agreement. Each party hereby indemnifies the other from and against all losses, damages, costs, expenses (including reasonable fees and expenses of attorneys), causes of action, suits or judgments of any nature arising out of any claim, demand or liability to or asserted by any broker, agent or finder, claiming to have acted on behalf of the indemnifying party in connection with this transaction. 10. Notice. Any notice to be given by one party hereto shall be personally delivered (including messenger delivery) or be sent by registered or certified mail, or by a nationally recognized overnight courier which issues a receipt, in each case postage prepaid, to the other party at the addresses in this Section ( or to such other address as may be designated by notice given pursuant to this Section), and shall be deemed given upon personal delivery, three (3) days after the date postmarked or one business day after delivery to such overnight courier. If to Seller: with a copy to: Ifto Buyer: City of Stillwater Attn: Tom McCarty 216 4th Street North Stillwater, MN 55082 LeVander, Gillen & Miller, P.A. Attn: Korine L. Land 633 South Concord Street, Suite 400 South St. Paul, MN 55075 Thomas R. Jacobsen Laura L. Jacobsen 640 Main Street, No. 4 Stillwater, MN 55082 11. Default; Remedies. If either Seller or Buyer fails to perform any of its obligations under this Agreement in accordance with its terms, and such failing party does not cure such failure within thirty (30) days after written notice thereof from the other party (provided that no notice or cure period shall be required for obligations to be performed at Closing), then the other party shall have the right to terminate this Agreement by giving the failing party written notice of such election. In the case of any default by Buyer, Seller's sole and exclusive remedies shall be termination of this Agreement as provided above, and, upon such termination, the Earnest Money shall be forfeited to Seller as agreed and final liquidated damages. In the case of any default by Seller, Buyer's sole and exclusive remedies shall be (i) specifically enforce this Agreement, or (ii) terminate this Agreement, in which case the Earnest Money shall be returned to Buyer. In no event shall Buyer be entitled to record a notice of Lis Pendens against the Property unless Buyer is pursuing specific performance of this Agreement. In any action or proceeding to enforce this Agreement or any term hereof, the prevailing party shall be entitled to recover its reasonable costs and attorneys' fees. 12. Cumulative Rights. No right or remedy conferred or reserved to Seller or Buyer is intended to be exclusive of any other right or remedy herein or by law provided, but each shall be cumulative in and in addition to every other right or remedy existing at law, in equity or by statute, now or hereafter. 13. Entire Agreement; Modification. This written Agreement constitutes the complete agreement between the parties with respect to this transaction and supersedes any prior oral 14. 15. 16. 17. 18. 19. or written agreements between the parties regarding this transaction. There are no verbal agreements that change this Agreement and no waiver of any of its terms will be effective unless in writing executed by the parties. Binding Effect; Survival This Agreement binds and benefits the parties and their respective successors and assigns. All representations and warranties, and indemnification obligations of the parties hereto shall survive the Closing. Buyer's Assignment. Buyer may not assign this Agreement without the prior written consent of the Seller. Governing Law. The provisions of this Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Any legal action related to this Agreement shall be venued in Washington County District Court. Counterparts. This Agreement may be executed in any number of counterparts, and all the signatures to this Agreement taken together shall constitute one and the same agreement, and any of the parties hereto may execute such agreement by signing any such counterpart. Represented by Counsel. Each party has been represented or has had the opportunity to be advised by counsel in the transaction contemplated hereby. Time of the Essence. Time is of the essence of this Agreement. IN AGREEMENT, the parties hereto have hereunto set their hands as of the date hereinbefore first written. [Remainder of page intentionally left blank] IN AGREEMENT, the parties hereto have hereunto set their hands as of the date hereinbefore first written. SELLER: CITY OF STILLWATER By : ___________ _ Mayor Ted Kozlowski By: ___________ _ City Clerk Diane Ward STATE OF MINNESOTA COUNTY OF WASHINGTON ) ) ) ss: On this day of 20_, before me a Notary Public within and for said County, personally appeared Ted Kozlowski and Diane Ward to me personally known, who being each by me duly sworn, each did say that they are respectively the Mayor and City Clerk of the City of Stillwater, the municipality named in the foregoing instrument, and that the said instrument was signed in behalf of said municipality by authority of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipality. Notary Public BUYERS: By: __________ _ Thomas R. Jacobsen By: __________ _ Laura L. Jacobsen STATE OF MINNESOTA COUNTY OF WASHINGTON ) ) ) ss: On this day of , 2018 before me a Notary Public within and for said County, personally appeared Thomas R. Jacobsen and Laura L. Jacobsen, husband and wife. Notary Public EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY Real property located in the County of Washington, State of Minnesota, legally described as follows: Garage Unit Numbers 42 and 35 (G42 and G35), Storage Unit Number 4 (S4), Territorial Place, Common Interest Community Number 242, Washington County, Minnesota. 10938772v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL CITY OF STILLWATER, MINNESOTA HELD: AUGUST 21, 2018 Pursuant to due call, a regular meeting of the City Council, City of Stillwater, Washington County, Minnesota, was duly held at the City Hall on August 21, 2018, at 7:00 P.M., for the purpose, in part, of considering proposals and awarding the competitive negotiated sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A. The following members were present: and the following were absent: In accordance with Resolution No. 2018-159 adopted by the City Council on July 17, 2018, the City Clerk presented proposals on $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A, which were received, opened and tabulated at 10:30 A.M., Central Time, at the offices of Springsted Minnesota ("Springsted") on this same day: Bidder Interest Rates True Interest Cost See attached The Council then proceeded to consider and discuss the proposals, after which member _________________ introduced the following resolution and moved its adoption: RESOLUTION NO. _______ RESOLUTION ACCEPTING PROPOSAL ON THE COMPETITIVE NEGOTIATED SALE OF $5,935,000 GENERAL OBLIGATION CAPITAL OUTLAY BONDS, SERIES 2018A, PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of Stillwater, Minnesota (the "City") has heretofore determined and declared that it is necessary and expedient to issue $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A (the "Bonds" or, individually, a "Bond"), pursuant to Minnesota Statutes, Chapter 475, and Sections 10.4, 10.5 and 10.6 of the City's Charter, to finance (i) renovations of the police station; (ii) renovation and remodeling of the City Hall; (iii) the 2018 capital outlay needs of various City departments; (iv) street improvement projects; and (iv) an addition to the St. Croix Valley Recreational Center (the "Project") as more fully described in the resolution duly adopted by the City Council on July 17, 2018; and B. WHEREAS, the City has retained Springsted Incorporated, in St. Paul, Minnesota ("Springsted"), as its independent municipal advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, 10938772v1 2 Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by Springsted; and C. WHEREAS, it is in the best interests of the City that the Bonds be issued in book- entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of Northland Securities, Inc., in Minneapolis, Minnesota (the "Purchaser"), to purchase the Bonds in accordance with the Terms of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the sum of $6,092,430.32, plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received, is accepted and the Bonds are awarded to the Purchaser. The City Clerk is directed to retain the deposit of the Purchaser and to forthwith return to the unsuccessful bidders their good faith checks or drafts. 2. Bond Terms. (a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds shall be dated September 20, 2018, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R 1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations"). The Bonds shall mature on February 1 in the years and amounts as follows: Year Amount Year Amount 2019 $385,000 2027 $215,000 2020 $445,000 2028 $220,000 2021 $460,000 2030* $350,000 2022 $470,000 2031 $185,000 2023 $490,000 2033* $390,000 2024 $485,000 2035* $255,000 2025 $495,000 2038* $420,000 2026 $520,000 2039 $150,000 * Term Bonds. All dates are inclusive. As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Book Entry Only System. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: 10938772v1 3 (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10, references to the Nominee hereunder shall refer to such new Nominee. 10938772v1 4 (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book-entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than 15 calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (c) Termination of Book-Entry Only System. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the 10938772v1 5 Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 11. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph 10. (d) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 3. Purpose. The Bonds shall provide funds to finance the Project. The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Project shall proceed with due diligence to completion. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2019, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year Interest Rate Maturity Year Interest Rate 2019 3.00% 2027 4.00% 2020 3.00% 2028 3.00% 2021 3.00% 2030* 3.00% 2022 3.00% 2031 3.00% 2023 3.00% 2033* 3.15% 2024 3.00% 2035* 3.25% 2025 3.00% 2038* 3.375% 2026 4.00% 2039 3.375% * Term Bonds. 5. Redemption. All Bonds maturing on February 1, 2028, and thereafter, shall be subject to redemption and prepayment at the option of the City on February 1, 2027, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the amounts and maturities of the Bonds to be prepaid shall be at the discretion of the City; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the registered owner(s) of the Bonds in accordance with the requirements of the Depository which 10938772v1 6 currently requires no less than twenty (20) days nor more than sixty (60) days prior to the redemption date. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the holder thereof or the Holder's attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. U.S. Bank National Association, in St. Paul, Minnesota is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: 10938772v1 7 UNITED STATES OF AMERICA STATE OF MINNESOTA WASHINGTON COUNTY CITY OF STILLWATER R-_______ $_________ GENERAL OBLIGATION CAPITAL OUTLAY BOND, SERIES 2018A Interest Rate Maturity Date Date of Original Issue CUSIP ____% February 1, ____ September 20, 2018 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THE CITY OF STILLWATER, WASHINGTON COUNTY, MINNESOTA (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2019, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of U.S. Bank National Association, in St. Paul, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. 10938772v1 8 Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2028, and thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1, 2027, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the amounts and maturities of the Bonds to be prepaid shall be at the discretion of the Issuer, and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to each affected registered owners of the Bonds in accordance with the requirements of the Depository Trust Company which currently requires no less than twenty (20) days nor more than sixty (60) days prior to the redemption. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $5,935,000, all of like date of original issue and tenor, except as to number, maturity, interest rate and denomination, issued pursuant to and in full conformity with the Constitution, Charter of the Issuer and laws of the State of Minnesota, and a resolution adopted by the City Council on August 21, 2018 (the "Resolution"), for the purpose of providing money to finance the Issuer's various capital outlay projects. This Bond is payable out of the General Obligation Capital Outlay Bonds, Series 2018A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations 10938772v1 9 provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution, Charter of the Issuer and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional, charter or statutory limitation of indebtedness. 10938772v1 10 IN WITNESS WHEREOF, the City of Stillwater, Washington County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its Clerk, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION St. Paul, Minnesota Bond Registrar By Authorized Signature Registrable by: U.S. BANK NATIONAL ASSOCIATION Payable at: U.S. BANK NATIONAL ASSOCIATION CITY OF STILLWATER, WASHINGTON COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile City Clerk 10938772v1 11 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - ___________ as custodian for _____________ (Cust) (Minor) under the _____________________ Uniform Transfers to Minors Act (State) Additional abbreviations may also be used though not in the above list. _________________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________ the within Bond and does hereby irrevocably constitute and appoint ________ attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: ________________ ___________________________________________ Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: ___________________________ Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: ________________________________________ ________________________________________ ________________________________________ (Include information for all joint owners if the Bond is held by joint account.) 10938772v1 12 8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of the City by the signatures of its Mayor and Clerk and be sealed with the seal of the City; provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate seal has been omitted. In the event of disability or resignation or other absence of either officer, the Bonds may be signed by the manual or facsimile signature of the officer who may act on behalf of the absent or disabled officer. In case either officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and, by inserting as the date of registration in the space provided, the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue which is September 20, 2018. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the Cit y. 10938772v1 13 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or the Holder's attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The City Clerk is hereby authorized to negotiate and execute the terms of said agreement. 11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Capital Outlay Bonds, Series 2018A Fund" (the "Fund"), to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other accounts maintained in the official financial records of the City. The Fund shall be 10938772v1 14 maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund the following separate accounts: (a) Construction Account. To the Construction Account there shall be credited the proceeds of the sale of the Bonds. From the Construction Account there shall be paid all costs and expenses of making the Project, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. The moneys in the Construction Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes herein levied; and provided further that if upon completion of the Project there shall remain any unexpended balance in the Construction Account, the balance shall be transferred by the Council to the Debt Service Account. (b) Debt Service Account. There are hereby pledged and there shall be credited to the Debt Service Account: (i) available City funds in the amount of $28,003.84 to pay a portion of the interest accruing on the Bonds due on or before February 1, 2019; (ii) collections of all taxes heretofore, herein or hereafter levied for the payment of the Bonds and interest thereon; (iii) all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (iv) all investment earnings on moneys held in the Debt Service Account; and (v) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from the Debt Service Account as provided by law. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an amount not greater than five percent of the proceeds of the Bonds. To this effect, any sums from time to time held in the Construction Account or Debt Service Account (or any other City fund or account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Construction Account or Debt Service Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 16. Tax Levy; Coverage Test. To provide moneys for payment of the principal and interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct 10938772v1 15 annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levy Year of Tax Collection Amount See attached Levy Schedule in Exhibit B For the payment of the principal and interest on the Bonds maturing in 2019, the City has heretofore levied in 2017 a direct ad valorem in the amount of $450,000 which was spread upon the tax rolls and will be collected with and as part of other general property taxes in the City. The tax levies are such that if collected in full they, together with estimated collections of other monies herein pledged for the payment of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 17. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 18. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: 10938772v1 16 (a) Not later than sixty days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Project; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Project, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not exceed twenty percent of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Bonds. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds and in all events within the period ending on the date which is the later of three years after payment of the Reimbursement Expenditure or one year after the date on which the Project to which the Reimbursement Expenditure relates is first placed in service. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bonds are issued, shall be treated as made on the day the Bonds are issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect that such action will not impair the tax-exempt status of the Bonds. 19. Continuing Disclosure. The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to the Municipal Securities Rulemaking Board (the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. 10938772v1 17 (b) Provide or cause to be provided to the MSRB notice of the occurrence of certain events with respect to the Bonds in not more than ten (10) business days after the occurrence of the event, in accordance with the Undertaking. (c) Provide or cause to be provided to the MSRB notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking, in not more than ten (10) business days following such occurrence. (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and Clerk of the City, or any other officer of the City authorized to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 20. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 21. Certificate of Registration. The City Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Washington County, Minnesota, together with such other information as the County Auditor shall require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's Bond Register, and that the tax levy required by law has been made. 22. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 23. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such 10938772v1 18 a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 24. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment earnings to the United States. The City expects to satisfy the 18-month expenditure exemption for gross proceeds of the Bonds as provided in Section 1.148-7(d)(1) of the Regulations. The Mayor and/or Manager are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the City. 25. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2018 will not exceed $10,000,000; (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2018 have been designated for purposes of Section 265(b)(3) of the Code; and (f) the aggregate face amount of the Bonds does not exceed $10,000,000. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 26. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 27. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. 10938772v1 19 The motion for the adoption of the foregoing resolution was duly seconded by member _____________ and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon the resolution was declared duly passed and adopted. Adopted August 21, 2018. Approved: ____________________________ Ted Kozlowski, Mayor Attest: _______________________ Diane F. Ward, City Clerk 10938772v1 20 STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF STILLWATER I, the undersigned, being the duly qualified and acting City Clerk of the City of Stillwater, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as such minutes relate to considering proposals and awarding the sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A. WITNESS my hand on August 21, 2018. ______________________________ Diane F. Ward, City Clerk 10938772v1 A-1 EXHIBIT A PROPOSALS 10938772v1 A-2 10938772v1 B-1 EXHIBIT B SCHEDULES $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Post-Sale Tax Levies Payment Date Principal Coupon Interest Total P+I 105% Overlevy Cash Contribution Levy Amount Levy/Collect Year 02/01/2019 385,000.00 3.000%68,687.67 453,687.67 476,372.05 28,003.84 448,368.21 2017/2018 02/01/2020 445,000.00 3.000%177,210.00 622,210.00 653,320.50 -653,320.50 2018/2019 02/01/2021 460,000.00 3.000%163,860.00 623,860.00 655,053.00 -655,053.00 2019/2020 02/01/2022 470,000.00 3.000%150,060.00 620,060.00 651,063.00 -651,063.00 2020/2021 02/01/2023 490,000.00 3.000%135,960.00 625,960.00 657,258.00 -657,258.00 2021/2022 02/01/2024 485,000.00 3.000%121,260.00 606,260.00 636,573.00 -636,573.00 2022/2023 02/01/2025 495,000.00 3.000%106,710.00 601,710.00 631,795.50 -631,795.50 2023/2024 02/01/2026 520,000.00 4.000%91,860.00 611,860.00 642,453.00 -642,453.00 2024/2025 02/01/2027 215,000.00 4.000%71,060.00 286,060.00 300,363.00 -300,363.00 2025/2026 02/01/2028 220,000.00 3.000%62,460.00 282,460.00 296,583.00 -296,583.00 2026/2027 02/01/2029 175,000.00 3.000%55,860.00 230,860.00 242,403.00 -242,403.00 2027/2028 02/01/2030 175,000.00 3.000%50,610.00 225,610.00 236,890.50 -236,890.50 2028/2029 02/01/2031 185,000.00 3.000%45,360.00 230,360.00 241,878.00 -241,878.00 2029/2030 02/01/2032 190,000.00 3.150%39,810.00 229,810.00 241,300.50 -241,300.50 2030/2031 02/01/2033 200,000.00 3.150%33,825.00 233,825.00 245,516.25 -245,516.25 2031/2032 02/01/2034 125,000.00 3.250%27,525.00 152,525.00 160,151.25 -160,151.25 2032/2033 02/01/2035 130,000.00 3.250%23,462.50 153,462.50 161,135.63 -161,135.63 2033/2034 02/01/2036 135,000.00 3.375%19,237.50 154,237.50 161,949.38 -161,949.38 2034/2035 02/01/2037 140,000.00 3.375%14,681.25 154,681.25 162,415.31 -162,415.31 2035/2036 02/01/2038 145,000.00 3.375%9,956.25 154,956.25 162,704.06 -162,704.06 2036/2037 02/01/2039 150,000.00 3.375%5,062.50 155,062.50 162,815.63 -162,815.63 2037/2038 Total $5,935,000.00 - $1,474,517.67 $7,409,517.67 $7,779,993.55 $28,003.84 $7,751,989.71 - 10938772v1 (a) Subsequent to bid opening, the total issue size was not changed; however, certain individual maturity amounts have changed. (b) Subsequent to bid opening, the price, net interest cost, and true interest rate have changed to $6,092,430.32, $1,317,087.35, and 2.8409%, respectively. $5,935,000(a) CITY OF STILLWATER, MINNESOTA GENERAL OBLIGATION CAPITAL OUTLAY BONDS, SERIES 2018A (BOOK ENTRY ONLY) AWARD: NORTHLAND SECURITIES, INC. J.J.B. HILLIARD, W.L. LYONS, LLC D.A. DAVIDSON & CO. SALE: August 21, 2018 Moody's Rating: Aa2 Interest Net Interest True Interest Bidder Rates Price Cost Rate NORTHLAND SECURITIES, INC. 3.00% 2019-2025 $6,091,745.72(b) $1,306,627.60(b) 2.8394%(b) J.J.B. HILLIARD, W.L. LYONS, LLC 4.00% 2026-2027 D.A. DAVIDSON & CO. 3.00% 2028-2031 3.15% 2032-2033 3.25% 2034-2035 3.375% 2036-2039 PIPER JAFFRAY & CO. 4.00% 2019-2027 $6,182,692.15 $1,315,008.39 2.8481% 3.00% 2028-2033 3.25% 2034-2037 3.375% 2038-2039 ROBERT W. BAIRD & CO., INCORPORATED 5.00% 2019-2027 $6,334,143.10 $1,336,790.88 2.8662% C.L. KING & ASSOCIATES, INC. 3.00% 2028-2032 DOUGHERTY & COMPANY LLC 3.125% 2033-2034 VINING SPARKS IBG, LP 3.25% 2035-2036 EDWARD JONES 3.375% 2037-2039 FIDELITY CAPITAL MARKETS SAMCO CAPITAL MARKETS, INC. CREWS & ASSOCIATES, INC. DAVENPORT & COMPANY LLC DUNCAN-WILLIAMS, INC. ROSS, SINCLAIRE & ASSOCIATES, LLC LOOP CAPITAL MARKETS, LLC COUNTRY CLUB BANK SUMRIDGE PARTNERS, LLC R. SEELAUS & CO., INC. SIERRA PACIFIC SECURITIES, LLC ISAAK BOND INVESTMENTS IFS SECURITIES FIRST EMPIRE SAECURITIES UMB BANK, N.A. RBC CAPITAL MARKETS WINTRUST INVESTMENTS LLC FMS BONDS INC, FIRST KENTUCKY SECURITIES CORP. MIDLAND SECURITIES LIMITED ALAMO CAPITAL MULTI-BANK SECURITIES, INC. FIRST SOUTHERN SECURITIES Interest Net Interest True Interest Bidder Rates Price Cost Rate STIFEL, NICOLAUS & COMPANY, 4.00% 2019-2027 $6,163,363.95 $1,338,636.85 2.9062% INCORPORATED 3.00% 2028-2032 3.125% 2033-2034 3.25% 2035-2036 3.375% 2037-2039 FTN FINANCIAL CAPITAL MARKETS 3.00% 2019-2030 $6,040,573.70 $1,336,689.70 2.9139% 3.25% 2031-2033 3.50% 2034-2039 WELLS FARGO BANK, 3.00% 2019-2031 $6,003,168.83 $1,363,729.61 2.9888% NATIONAL ASSOCIATION 3.25% 2032-2034 3.50% 2035-2039 --------------------------------------------------------------------------------------------------------------------------------------------------------------------- REOFFERING SCHEDULE OF THE PURCHASER Rate Year Yield 3.00% 2019 1.49% 3.00% 2020 1.70% 3.00% 2021 1.80% 3.00% 2022 1.95% 3.00% 2023 2.05% 3.00% 2024 2.15% 3.00% 2025 2.30% 4.00% 2026 2.40% 4.00% 2027 2.55% 3.00% 2028 2.65% 3.00% 2030 2.90% 3.00% 2031 Par 3.15% 2033 Par 3.25% 2035 Par 3.375% 2038 Par 3.375% 2039 3.40% BBI: 3.95% Average Maturity: 7.579 Years Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Total Issue Sources And Uses Dated 09/20/2018 | Delivered 09/20/2018 City Hall & Police Project 2018 Capital Outlay 2018 Streets 2018 Sidewalk Project St. Croix Valley Rec Center Addition Issue Summary Sources Of Funds Par Amount of Bonds.....................................................................$910,000.00 $2,245,000.00 $460,000.00 $50,000.00 $2,270,000.00 $5,935,000.00 Reoffering Premium.......................................................................26,645.60 91,929.50 21,373.40 1,239.60 44,785.65 185,973.75 Total Sources................................................................................$936,645.60 $2,336,929.50 $481,373.40 $51,239.60 $2,314,785.65 $6,120,973.75 Uses Of Funds Deposit to Project Fund..................................................................$890,000.00 $2,203,000.00 $450,000.00 $50,000.00 $2,225,000.00 $5,818,000.00 Additional Deposit to Project Fund (Premium and Rounding)........34,309.08 103,494.85 25,137.34 561.76 59,012.08 222,515.11 Costs of Issuance...........................................................................7,960.03 19,637.68 4,023.76 437.37 19,856.37 51,915.21 Total Underwriter's Discount (0.481%)..........................................4,376.49 10,796.97 2,212.30 240.47 10,917.20 28,543.43 Total Uses.....................................................................................$936,645.60 $2,336,929.50 $481,373.40 $51,239.60 $2,314,785.65 $6,120,973.75 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Pricing Summary Maturity Type of Bond Coupon Yield Maturity Value Price YTM Call Date Call Price Dollar Price 02/01/2019 Serial Coupon 3.000%1.490%385,000.00 100.544% ---387,094.40 02/01/2020 Serial Coupon 3.000%1.700%445,000.00 101.744% ---452,760.80 02/01/2021 Serial Coupon 3.000%1.800%460,000.00 102.763% ---472,709.80 02/01/2022 Serial Coupon 3.000%1.950%470,000.00 103.401% ---485,984.70 02/01/2023 Serial Coupon 3.000%2.050%490,000.00 103.944% ---509,325.60 02/01/2024 Serial Coupon 3.000%2.150%485,000.00 104.282% ---505,767.70 02/01/2025 Serial Coupon 3.000%2.300%495,000.00 104.120% ---515,394.00 02/01/2026 Serial Coupon 4.000%2.400%520,000.00 110.738% ---575,837.60 02/01/2027 Serial Coupon 4.000%2.550%215,000.00 110.857% ---238,342.55 02/01/2028 Serial Coupon 3.000%2.650%220,000.00 102.608%c 2.683%02/01/2027 100.000%225,737.60 02/01/2030 Term 1 Coupon 3.000%2.900%350,000.00 100.735%c 2.923%02/01/2027 100.000%352,572.50 02/01/2031 Serial Coupon 3.000%3.000%185,000.00 100.000% ---185,000.00 02/01/2033 Term 2 Coupon 3.150%3.150%390,000.00 100.000% ---390,000.00 02/01/2035 Term 3 Coupon 3.250%3.250%255,000.00 100.000% ---255,000.00 02/01/2038 Term 4 Coupon 3.375%3.375%420,000.00 100.000% ---420,000.00 02/01/2039 Serial Coupon 3.375%3.400%150,000.00 99.631% ---149,446.50 Total ---$5,935,000.00 -----$6,120,973.75 Bid Information Par Amount of Bonds....................................................................................................................................................................$5,935,000.00 Reoffering Premium or (Discount).................................................................................................................................................185,973.75 Gross Production...........................................................................................................................................................................$6,120,973.75 Total Underwriter's Discount (0.481%).........................................................................................................................................$(28,543.43) Bid (102.653%)..............................................................................................................................................................................6,092,430.32 Total Purchase Price.....................................................................................................................................................................$6,092,430.32 Bond Year Dollars.........................................................................................................................................................................$45,319.68 Average Life..................................................................................................................................................................................7.636 Years Average Coupon............................................................................................................................................................................3.2535924% Net Interest Cost (NIC)..................................................................................................................................................................2.9062150% True Interest Cost (TIC)................................................................................................................................................................2.8409783% 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Debt Service Schedule Date Principal Coupon Interest Total P+I 02/01/2019 385,000.00 3.000%68,687.67 453,687.67 08/01/2019 --88,605.00 88,605.00 02/01/2020 445,000.00 3.000%88,605.00 533,605.00 08/01/2020 --81,930.00 81,930.00 02/01/2021 460,000.00 3.000%81,930.00 541,930.00 08/01/2021 --75,030.00 75,030.00 02/01/2022 470,000.00 3.000%75,030.00 545,030.00 08/01/2022 --67,980.00 67,980.00 02/01/2023 490,000.00 3.000%67,980.00 557,980.00 08/01/2023 --60,630.00 60,630.00 02/01/2024 485,000.00 3.000%60,630.00 545,630.00 08/01/2024 --53,355.00 53,355.00 02/01/2025 495,000.00 3.000%53,355.00 548,355.00 08/01/2025 --45,930.00 45,930.00 02/01/2026 520,000.00 4.000%45,930.00 565,930.00 08/01/2026 --35,530.00 35,530.00 02/01/2027 215,000.00 4.000%35,530.00 250,530.00 08/01/2027 --31,230.00 31,230.00 02/01/2028 220,000.00 3.000%31,230.00 251,230.00 08/01/2028 --27,930.00 27,930.00 02/01/2029 175,000.00 3.000%27,930.00 202,930.00 08/01/2029 --25,305.00 25,305.00 02/01/2030 175,000.00 3.000%25,305.00 200,305.00 08/01/2030 --22,680.00 22,680.00 02/01/2031 185,000.00 3.000%22,680.00 207,680.00 08/01/2031 --19,905.00 19,905.00 02/01/2032 190,000.00 3.150%19,905.00 209,905.00 08/01/2032 --16,912.50 16,912.50 02/01/2033 200,000.00 3.150%16,912.50 216,912.50 08/01/2033 --13,762.50 13,762.50 02/01/2034 125,000.00 3.250%13,762.50 138,762.50 08/01/2034 --11,731.25 11,731.25 02/01/2035 130,000.00 3.250%11,731.25 141,731.25 08/01/2035 --9,618.75 9,618.75 02/01/2036 135,000.00 3.375%9,618.75 144,618.75 08/01/2036 --7,340.63 7,340.63 02/01/2037 140,000.00 3.375%7,340.63 147,340.63 08/01/2037 --4,978.13 4,978.13 02/01/2038 145,000.00 3.375%4,978.13 149,978.13 08/01/2038 --2,531.25 2,531.25 02/01/2039 150,000.00 3.375%2,531.25 152,531.25 Total $5,935,000.00 -$1,474,517.67 $7,409,517.67 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Debt Service Schedule SIGNIFICANT DATES Dated Date.......................................................................................................................................................................9/20/2018 Delivery Date....................................................................................................................................................................9/20/2018 First Coupon Date............................................................................................................................................................2/01/2019 Yield Statistics Bond Year Dollars............................................................................................................................................................$45,319.68 Average Life.....................................................................................................................................................................7.636 Years Average Coupon...............................................................................................................................................................3.2535924% Net Interest Cost (NIC).....................................................................................................................................................2.9062150% True Interest Cost (TIC)....................................................................................................................................................2.8409783% Bond Yield for Arbitrage Purposes....................................................................................................................................2.7678045% All Inclusive Cost (AIC).....................................................................................................................................................2.9737096% IRS Form 8038 Net Interest Cost...............................................................................................................................................................2.7760066% Weighted Average Maturity...............................................................................................................................................7.583 Years 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $910,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A City Hall & Police Project Debt Service Schedule Date Principal Coupon Interest Total P+I 02/01/2019 70,000.00 3.000%10,449.98 80,449.98 08/01/2019 --13,308.75 13,308.75 02/01/2020 45,000.00 3.000%13,308.75 58,308.75 08/01/2020 --12,633.75 12,633.75 02/01/2021 50,000.00 3.000%12,633.75 62,633.75 08/01/2021 --11,883.75 11,883.75 02/01/2022 50,000.00 3.000%11,883.75 61,883.75 08/01/2022 --11,133.75 11,133.75 02/01/2023 55,000.00 3.000%11,133.75 66,133.75 08/01/2023 --10,308.75 10,308.75 02/01/2024 55,000.00 3.000%10,308.75 65,308.75 08/01/2024 --9,483.75 9,483.75 02/01/2025 55,000.00 3.000%9,483.75 64,483.75 08/01/2025 --8,658.75 8,658.75 02/01/2026 60,000.00 4.000%8,658.75 68,658.75 08/01/2026 --7,458.75 7,458.75 02/01/2027 60,000.00 4.000%7,458.75 67,458.75 08/01/2027 --6,258.75 6,258.75 02/01/2028 65,000.00 3.000%6,258.75 71,258.75 08/01/2028 --5,283.75 5,283.75 02/01/2029 65,000.00 3.000%5,283.75 70,283.75 08/01/2029 --4,308.75 4,308.75 02/01/2030 65,000.00 3.000%4,308.75 69,308.75 08/01/2030 --3,333.75 3,333.75 02/01/2031 70,000.00 3.000%3,333.75 73,333.75 08/01/2031 --2,283.75 2,283.75 02/01/2032 70,000.00 3.150%2,283.75 72,283.75 08/01/2032 --1,181.25 1,181.25 02/01/2033 75,000.00 3.150%1,181.25 76,181.25 Total $910,000.00 -$225,489.98 $1,135,489.98 2018A GO Cap Outlay Bonds | City Hall & Police Projec | 8/21/2018 | 11:41 AM Post-Sale $2,245,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Capital Outlay Debt Service Schedule Date Principal Coupon Interest Total P+I 02/01/2019 260,000.00 3.000%25,635.97 285,635.97 08/01/2019 --31,325.00 31,325.00 02/01/2020 260,000.00 3.000%31,325.00 291,325.00 08/01/2020 --27,425.00 27,425.00 02/01/2021 265,000.00 3.000%27,425.00 292,425.00 08/01/2021 --23,450.00 23,450.00 02/01/2022 275,000.00 3.000%23,450.00 298,450.00 08/01/2022 --19,325.00 19,325.00 02/01/2023 285,000.00 3.000%19,325.00 304,325.00 08/01/2023 --15,050.00 15,050.00 02/01/2024 290,000.00 3.000%15,050.00 305,050.00 08/01/2024 --10,700.00 10,700.00 02/01/2025 300,000.00 3.000%10,700.00 310,700.00 08/01/2025 --6,200.00 6,200.00 02/01/2026 310,000.00 4.000%6,200.00 316,200.00 Total $2,245,000.00 -$292,585.97 $2,537,585.97 2018A GO Cap Outlay Bonds | 2018 Capital Outlay | 8/21/2018 | 11:41 AM Post-Sale $460,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Streets Debt Service Schedule Date Principal Coupon Interest Total P+I 02/01/2019 45,000.00 3.000%5,385.56 50,385.56 08/01/2019 --6,725.00 6,725.00 02/01/2020 40,000.00 3.000%6,725.00 46,725.00 08/01/2020 --6,125.00 6,125.00 02/01/2021 45,000.00 3.000%6,125.00 51,125.00 08/01/2021 --5,450.00 5,450.00 02/01/2022 45,000.00 3.000%5,450.00 50,450.00 08/01/2022 --4,775.00 4,775.00 02/01/2023 45,000.00 3.000%4,775.00 49,775.00 08/01/2023 --4,100.00 4,100.00 02/01/2024 45,000.00 3.000%4,100.00 49,100.00 08/01/2024 --3,425.00 3,425.00 02/01/2025 45,000.00 3.000%3,425.00 48,425.00 08/01/2025 --2,750.00 2,750.00 02/01/2026 50,000.00 4.000%2,750.00 52,750.00 08/01/2026 --1,750.00 1,750.00 02/01/2027 50,000.00 4.000%1,750.00 51,750.00 08/01/2027 --750.00 750.00 02/01/2028 50,000.00 3.000%750.00 50,750.00 Total $460,000.00 -$77,085.56 $537,085.56 2018A GO Cap Outlay Bonds | 2018 Streets | 8/21/2018 | 11:41 AM Post-Sale $50,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Sidewalk Project Debt Service Schedule Date Principal Coupon Interest Total P+I 02/01/2019 10,000.00 3.000%545.83 10,545.83 08/01/2019 --600.00 600.00 02/01/2020 10,000.00 3.000%600.00 10,600.00 08/01/2020 --450.00 450.00 02/01/2021 10,000.00 3.000%450.00 10,450.00 08/01/2021 --300.00 300.00 02/01/2022 10,000.00 3.000%300.00 10,300.00 08/01/2022 --150.00 150.00 02/01/2023 10,000.00 3.000%150.00 10,150.00 Total $50,000.00 -$3,545.83 $53,545.83 2018A GO Cap Outlay Bonds | 2018 Sidewalk Project | 8/21/2018 | 11:41 AM Post-Sale $2,270,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A St. Croix Valley Rec Center Addition Debt Service Schedule Date Principal Coupon Interest Total P+I 02/01/2019 --26,670.33 26,670.33 08/01/2019 --36,646.25 36,646.25 02/01/2020 90,000.00 3.000%36,646.25 126,646.25 08/01/2020 --35,296.25 35,296.25 02/01/2021 90,000.00 3.000%35,296.25 125,296.25 08/01/2021 --33,946.25 33,946.25 02/01/2022 90,000.00 3.000%33,946.25 123,946.25 08/01/2022 --32,596.25 32,596.25 02/01/2023 95,000.00 3.000%32,596.25 127,596.25 08/01/2023 --31,171.25 31,171.25 02/01/2024 95,000.00 3.000%31,171.25 126,171.25 08/01/2024 --29,746.25 29,746.25 02/01/2025 95,000.00 3.000%29,746.25 124,746.25 08/01/2025 --28,321.25 28,321.25 02/01/2026 100,000.00 4.000%28,321.25 128,321.25 08/01/2026 --26,321.25 26,321.25 02/01/2027 105,000.00 4.000%26,321.25 131,321.25 08/01/2027 --24,221.25 24,221.25 02/01/2028 105,000.00 3.000%24,221.25 129,221.25 08/01/2028 --22,646.25 22,646.25 02/01/2029 110,000.00 3.000%22,646.25 132,646.25 08/01/2029 --20,996.25 20,996.25 02/01/2030 110,000.00 3.000%20,996.25 130,996.25 08/01/2030 --19,346.25 19,346.25 02/01/2031 115,000.00 3.000%19,346.25 134,346.25 08/01/2031 --17,621.25 17,621.25 02/01/2032 120,000.00 3.150%17,621.25 137,621.25 08/01/2032 --15,731.25 15,731.25 02/01/2033 125,000.00 3.150%15,731.25 140,731.25 08/01/2033 --13,762.50 13,762.50 02/01/2034 125,000.00 3.250%13,762.50 138,762.50 08/01/2034 --11,731.25 11,731.25 02/01/2035 130,000.00 3.250%11,731.25 141,731.25 08/01/2035 --9,618.75 9,618.75 02/01/2036 135,000.00 3.375%9,618.75 144,618.75 08/01/2036 --7,340.63 7,340.63 02/01/2037 140,000.00 3.375%7,340.63 147,340.63 08/01/2037 --4,978.13 4,978.13 02/01/2038 145,000.00 3.375%4,978.13 149,978.13 08/01/2038 --2,531.25 2,531.25 02/01/2039 150,000.00 3.375%2,531.25 152,531.25 Total $2,270,000.00 -$875,810.33 $3,145,810.33 2018A GO Cap Outlay Bonds | St. Croix Valley Rec Cent | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Post-Sale Tax Levies Payment Date Principal Coupon Interest Total P+I 105% Overlevy Cash Contribution Levy Amount Levy/Collect Year 02/01/2019 385,000.00 3.000%68,687.67 453,687.67 476,372.05 28,003.84 448,368.21 2017/2018 02/01/2020 445,000.00 3.000%177,210.00 622,210.00 653,320.50 -653,320.50 2018/2019 02/01/2021 460,000.00 3.000%163,860.00 623,860.00 655,053.00 -655,053.00 2019/2020 02/01/2022 470,000.00 3.000%150,060.00 620,060.00 651,063.00 -651,063.00 2020/2021 02/01/2023 490,000.00 3.000%135,960.00 625,960.00 657,258.00 -657,258.00 2021/2022 02/01/2024 485,000.00 3.000%121,260.00 606,260.00 636,573.00 -636,573.00 2022/2023 02/01/2025 495,000.00 3.000%106,710.00 601,710.00 631,795.50 -631,795.50 2023/2024 02/01/2026 520,000.00 4.000%91,860.00 611,860.00 642,453.00 -642,453.00 2024/2025 02/01/2027 215,000.00 4.000%71,060.00 286,060.00 300,363.00 -300,363.00 2025/2026 02/01/2028 220,000.00 3.000%62,460.00 282,460.00 296,583.00 -296,583.00 2026/2027 02/01/2029 175,000.00 3.000%55,860.00 230,860.00 242,403.00 -242,403.00 2027/2028 02/01/2030 175,000.00 3.000%50,610.00 225,610.00 236,890.50 -236,890.50 2028/2029 02/01/2031 185,000.00 3.000%45,360.00 230,360.00 241,878.00 -241,878.00 2029/2030 02/01/2032 190,000.00 3.150%39,810.00 229,810.00 241,300.50 -241,300.50 2030/2031 02/01/2033 200,000.00 3.150%33,825.00 233,825.00 245,516.25 -245,516.25 2031/2032 02/01/2034 125,000.00 3.250%27,525.00 152,525.00 160,151.25 -160,151.25 2032/2033 02/01/2035 130,000.00 3.250%23,462.50 153,462.50 161,135.63 -161,135.63 2033/2034 02/01/2036 135,000.00 3.375%19,237.50 154,237.50 161,949.38 -161,949.38 2034/2035 02/01/2037 140,000.00 3.375%14,681.25 154,681.25 162,415.31 -162,415.31 2035/2036 02/01/2038 145,000.00 3.375%9,956.25 154,956.25 162,704.06 -162,704.06 2036/2037 02/01/2039 150,000.00 3.375%5,062.50 155,062.50 162,815.63 -162,815.63 2037/2038 Total $5,935,000.00 -$1,474,517.67 $7,409,517.67 $7,779,993.55 $28,003.84 $7,751,989.71 - 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $910,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A City Hall & Police Project Post-Sale Tax Levies Payment Date Principal Coupon Interest Total P+I 105% Overlevy Levy Amount Levy/Collect Year 02/01/2019 70,000.00 3.000%10,449.98 80,449.98 84,472.48 84,472.48 2017/2018 02/01/2020 45,000.00 3.000%26,617.50 71,617.50 75,198.38 75,198.38 2018/2019 02/01/2021 50,000.00 3.000%25,267.50 75,267.50 79,030.88 79,030.88 2019/2020 02/01/2022 50,000.00 3.000%23,767.50 73,767.50 77,455.88 77,455.88 2020/2021 02/01/2023 55,000.00 3.000%22,267.50 77,267.50 81,130.88 81,130.88 2021/2022 02/01/2024 55,000.00 3.000%20,617.50 75,617.50 79,398.38 79,398.38 2022/2023 02/01/2025 55,000.00 3.000%18,967.50 73,967.50 77,665.88 77,665.88 2023/2024 02/01/2026 60,000.00 4.000%17,317.50 77,317.50 81,183.38 81,183.38 2024/2025 02/01/2027 60,000.00 4.000%14,917.50 74,917.50 78,663.38 78,663.38 2025/2026 02/01/2028 65,000.00 3.000%12,517.50 77,517.50 81,393.38 81,393.38 2026/2027 02/01/2029 65,000.00 3.000%10,567.50 75,567.50 79,345.88 79,345.88 2027/2028 02/01/2030 65,000.00 3.000%8,617.50 73,617.50 77,298.38 77,298.38 2028/2029 02/01/2031 70,000.00 3.000%6,667.50 76,667.50 80,500.88 80,500.88 2029/2030 02/01/2032 70,000.00 3.150%4,567.50 74,567.50 78,295.88 78,295.88 2030/2031 02/01/2033 75,000.00 3.150%2,362.50 77,362.50 81,230.63 81,230.63 2031/2032 Total $910,000.00 -$225,489.98 $1,135,489.98 $1,192,264.48 $1,192,264.48 - 2018A GO Cap Outlay Bonds | City Hall & Police Projec | 8/21/2018 | 11:41 AM Post-Sale $2,245,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Capital Outlay Post-Sale Tax Levies Payment Date Principal Coupon Interest Total P+I 105% Overlevy Levy Amount Levy/Collect Year 02/01/2019 260,000.00 3.000%25,635.97 285,635.97 299,917.77 299,917.77 2017/2018 02/01/2020 260,000.00 3.000%62,650.00 322,650.00 338,782.50 338,782.50 2018/2019 02/01/2021 265,000.00 3.000%54,850.00 319,850.00 335,842.50 335,842.50 2019/2020 02/01/2022 275,000.00 3.000%46,900.00 321,900.00 337,995.00 337,995.00 2020/2021 02/01/2023 285,000.00 3.000%38,650.00 323,650.00 339,832.50 339,832.50 2021/2022 02/01/2024 290,000.00 3.000%30,100.00 320,100.00 336,105.00 336,105.00 2022/2023 02/01/2025 300,000.00 3.000%21,400.00 321,400.00 337,470.00 337,470.00 2023/2024 02/01/2026 310,000.00 4.000%12,400.00 322,400.00 338,520.00 338,520.00 2024/2025 Total $2,245,000.00 -$292,585.97 $2,537,585.97 $2,664,465.27 $2,664,465.27 - 2018A GO Cap Outlay Bonds | 2018 Capital Outlay | 8/21/2018 | 11:41 AM Post-Sale $460,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Streets Post-Sale Tax Levies Payment Date Principal Coupon Interest Total P+I 105% Overlevy Levy Amount Levy/Collect Year 02/01/2019 45,000.00 3.000%5,385.56 50,385.56 52,904.83 52,904.83 2017/2018 02/01/2020 40,000.00 3.000%13,450.00 53,450.00 56,122.50 56,122.50 2018/2019 02/01/2021 45,000.00 3.000%12,250.00 57,250.00 60,112.50 60,112.50 2019/2020 02/01/2022 45,000.00 3.000%10,900.00 55,900.00 58,695.00 58,695.00 2020/2021 02/01/2023 45,000.00 3.000%9,550.00 54,550.00 57,277.50 57,277.50 2021/2022 02/01/2024 45,000.00 3.000%8,200.00 53,200.00 55,860.00 55,860.00 2022/2023 02/01/2025 45,000.00 3.000%6,850.00 51,850.00 54,442.50 54,442.50 2023/2024 02/01/2026 50,000.00 4.000%5,500.00 55,500.00 58,275.00 58,275.00 2024/2025 02/01/2027 50,000.00 4.000%3,500.00 53,500.00 56,175.00 56,175.00 2025/2026 02/01/2028 50,000.00 3.000%1,500.00 51,500.00 54,075.00 54,075.00 2026/2027 Total $460,000.00 -$77,085.56 $537,085.56 $563,939.83 $563,939.83 - 2018A GO Cap Outlay Bonds | 2018 Streets | 8/21/2018 | 11:41 AM Post-Sale $50,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Sidewalk Project Post-Sale Tax Levies Payment Date Principal Coupon Interest Total P+I 105% Overlevy Levy Amount Levy/Collect Year 02/01/2019 10,000.00 3.000%545.83 10,545.83 11,073.13 11,073.13 2017/2018 02/01/2020 10,000.00 3.000%1,200.00 11,200.00 11,760.00 11,760.00 2018/2019 02/01/2021 10,000.00 3.000%900.00 10,900.00 11,445.00 11,445.00 2019/2020 02/01/2022 10,000.00 3.000%600.00 10,600.00 11,130.00 11,130.00 2020/2021 02/01/2023 10,000.00 3.000%300.00 10,300.00 10,815.00 10,815.00 2021/2022 Total $50,000.00 -$3,545.83 $53,545.83 $56,223.13 $56,223.13 - 2018A GO Cap Outlay Bonds | 2018 Sidewalk Project | 8/21/2018 | 11:41 AM Post-Sale $2,270,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A St. Croix Valley Rec Center Addition Post-Sale Tax Levies Payment Date Principal Coupon Interest Total P+I 105% Overlevy Cash Contribution Levy Amount Levy/Collect Year 02/01/2019 --26,670.33 26,670.33 28,003.84 28,003.84 - 02/01/2020 90,000.00 3.000%73,292.50 163,292.50 171,457.13 -171,457.13 2018/2019 02/01/2021 90,000.00 3.000%70,592.50 160,592.50 168,622.13 -168,622.13 2019/2020 02/01/2022 90,000.00 3.000%67,892.50 157,892.50 165,787.13 -165,787.13 2020/2021 02/01/2023 95,000.00 3.000%65,192.50 160,192.50 168,202.13 -168,202.13 2021/2022 02/01/2024 95,000.00 3.000%62,342.50 157,342.50 165,209.63 -165,209.63 2022/2023 02/01/2025 95,000.00 3.000%59,492.50 154,492.50 162,217.13 -162,217.13 2023/2024 02/01/2026 100,000.00 4.000%56,642.50 156,642.50 164,474.63 -164,474.63 2024/2025 02/01/2027 105,000.00 4.000%52,642.50 157,642.50 165,524.63 -165,524.63 2025/2026 02/01/2028 105,000.00 3.000%48,442.50 153,442.50 161,114.63 -161,114.63 2026/2027 02/01/2029 110,000.00 3.000%45,292.50 155,292.50 163,057.13 -163,057.13 2027/2028 02/01/2030 110,000.00 3.000%41,992.50 151,992.50 159,592.13 -159,592.13 2028/2029 02/01/2031 115,000.00 3.000%38,692.50 153,692.50 161,377.13 -161,377.13 2029/2030 02/01/2032 120,000.00 3.150%35,242.50 155,242.50 163,004.63 -163,004.63 2030/2031 02/01/2033 125,000.00 3.150%31,462.50 156,462.50 164,285.63 -164,285.63 2031/2032 02/01/2034 125,000.00 3.250%27,525.00 152,525.00 160,151.25 -160,151.25 2032/2033 02/01/2035 130,000.00 3.250%23,462.50 153,462.50 161,135.63 -161,135.63 2033/2034 02/01/2036 135,000.00 3.375%19,237.50 154,237.50 161,949.38 -161,949.38 2034/2035 02/01/2037 140,000.00 3.375%14,681.25 154,681.25 162,415.31 -162,415.31 2035/2036 02/01/2038 145,000.00 3.375%9,956.25 154,956.25 162,704.06 -162,704.06 2036/2037 02/01/2039 150,000.00 3.375%5,062.50 155,062.50 162,815.63 -162,815.63 2037/2038 Total $2,270,000.00 -$875,810.33 $3,145,810.33 $3,303,100.84 $28,003.84 $3,275,097.00 - 2018A GO Cap Outlay Bonds | St. Croix Valley Rec Cent | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Settlement Report Dated 09/20/2018 | Delivered 09/20/2018 Price................................................................................................................................................................................$6,092,430.32 Total Purchase Price.......................................................................................................................................................$6,092,430.32 Good Faith Deposit.........................................................................................................................................................(59,350.00) Due at Closing................................................................................................................................................................$6,033,080.32 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Derivation Of Form 8038 Yield Statistics Maturity Issuance Value Coupon Price Issuance Price Exponent Bond Years 09/20/2018 ------ 02/01/2019 385,000.00 3.000%100.544%387,094.40 0.3638889x 140,859.35 02/01/2020 445,000.00 3.000%101.744%452,760.80 1.3638889x 617,515.42 02/01/2021 460,000.00 3.000%102.763%472,709.80 2.3638889x 1,117,433.44 02/01/2022 470,000.00 3.000%103.401%485,984.70 3.3638889x 1,634,798.53 02/01/2023 490,000.00 3.000%103.944%509,325.60 4.3638889x 2,222,640.33 02/01/2024 485,000.00 3.000%104.282%505,767.70 5.3638889x 2,712,881.75 02/01/2025 495,000.00 3.000%104.120%515,394.00 6.3638889x 3,279,910.15 02/01/2026 520,000.00 4.000%110.738%575,837.60 7.3638889x 4,240,404.10 02/01/2027 215,000.00 4.000%110.857%238,342.55 8.3638889x 1,993,470.61 02/01/2028 220,000.00 3.000%102.608%225,737.60 9.3638889x 2,113,781.80 02/01/2028 -3.000%102.883%-9.3638889x - 02/01/2029 175,000.00 3.000%100.735%176,286.25 10.3638889x 1,827,011.11 02/01/2030 175,000.00 3.000%100.735%176,286.25 11.3638889x 2,003,297.36 02/01/2031 185,000.00 3.000%100.000%185,000.00 12.3638889x 2,287,319.44 02/01/2032 190,000.00 3.150%100.000%190,000.00 13.3638889x 2,539,138.89 02/01/2033 200,000.00 3.150%100.000%200,000.00 14.3638889x 2,872,777.78 02/01/2034 125,000.00 3.250%100.000%125,000.00 15.3638889x 1,920,486.11 02/01/2035 130,000.00 3.250%100.000%130,000.00 16.3638889x 2,127,305.56 02/01/2036 135,000.00 3.375%100.000%135,000.00 17.3638889x 2,344,125.00 02/01/2037 140,000.00 3.375%100.000%140,000.00 18.3638889x 2,570,944.44 02/01/2038 145,000.00 3.375%100.000%145,000.00 19.3638889x 2,807,763.89 02/01/2039 150,000.00 3.375%99.631%149,446.50 20.3638889x 3,043,311.92 Total $5,935,000.00 --$6,120,973.75 -$46,417,176.99 Description of Bonds Final Maturity Date.........................................................................................................................................................2/01/2039 Issue price of entire issue...............................................................................................................................................6,120,973.75 Stated Redemption at Maturity.......................................................................................................................................5,935,000.00 Weighted Average Maturity = Bond Years/Issue Price...................................................................................................7.583 Years Bond Yield for Arbitrage Purposes..................................................................................................................................2.7678045% Uses of Proceeds of Issue Proceeds used for accrued interest................................................................................................................................- Proceeds used for bond issuance costs (including underwriters' discount).....................................................................80,458.64 Proceeds used for credit enhancement..........................................................................................................................- Proceeds allocated to reasonably required reserve or replacement fund........................................................................- 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Proof of Bond Yield @ 2.7678045% Date Cashflow PV Factor Present Value Cumulative PV 09/20/2018 -1.0000000x -- 02/01/2019 453,687.67 0.9900472x 449,172.20 449,172.20 08/01/2019 88,605.00 0.9765329x 86,525.70 535,697.90 02/01/2020 533,605.00 0.9632031x 513,970.01 1,049,667.91 08/01/2020 81,930.00 0.9500553x 77,838.03 1,127,505.94 02/01/2021 541,930.00 0.9370869x 507,835.52 1,635,341.46 08/01/2021 75,030.00 0.9242956x 69,349.90 1,704,691.35 02/01/2022 545,030.00 0.9116788x 496,892.32 2,201,583.67 08/01/2022 67,980.00 0.8992343x 61,129.95 2,262,713.62 02/01/2023 557,980.00 0.8869597x 494,905.75 2,757,619.37 08/01/2023 60,630.00 0.8748526x 53,042.31 2,810,661.68 02/01/2024 545,630.00 0.8629107x 470,829.97 3,281,491.65 08/01/2024 53,355.00 0.8511319x 45,412.14 3,326,903.79 02/01/2025 548,355.00 0.8395138x 460,351.61 3,787,255.40 08/01/2025 45,930.00 0.8280544x 38,032.54 3,825,287.94 02/01/2026 565,930.00 0.8167513x 462,224.08 4,287,512.02 08/01/2026 35,530.00 0.8056026x 28,623.06 4,316,135.08 02/01/2027 470,530.00 0.7946060x 373,885.96 4,690,021.04 08/01/2027 27,930.00 0.7837595x 21,890.40 4,711,911.44 02/01/2028 27,930.00 0.7730611x 21,591.60 4,733,503.04 08/01/2028 27,930.00 0.7625088x 21,296.87 4,754,799.91 02/01/2029 202,930.00 0.7521004x 152,623.74 4,907,423.65 08/01/2029 25,305.00 0.7418342x 18,772.11 4,926,195.76 02/01/2030 200,305.00 0.7317080x 146,564.78 5,072,760.54 08/01/2030 22,680.00 0.7217201x 16,368.61 5,089,129.15 02/01/2031 207,680.00 0.7118686x 147,840.86 5,236,970.02 08/01/2031 19,905.00 0.7021515x 13,976.33 5,250,946.34 02/01/2032 209,905.00 0.6925670x 145,373.28 5,396,319.63 08/01/2032 16,912.50 0.6831134x 11,553.16 5,407,872.78 02/01/2033 216,912.50 0.6737888x 146,153.22 5,554,026.00 08/01/2033 13,762.50 0.6645915x 9,146.44 5,563,172.44 02/01/2034 138,762.50 0.6555198x 90,961.56 5,654,134.00 08/01/2034 11,731.25 0.6465719x 7,585.10 5,661,719.10 02/01/2035 141,731.25 0.6377461x 90,388.55 5,752,107.65 08/01/2035 9,618.75 0.6290408x 6,050.59 5,758,158.23 02/01/2036 144,618.75 0.6204543x 89,729.32 5,847,887.56 08/01/2036 7,340.63 0.6119850x 4,492.36 5,852,379.91 02/01/2037 147,340.63 0.6036313x 88,939.42 5,941,319.34 08/01/2037 4,978.13 0.5953917x 2,963.94 5,944,283.27 02/01/2038 149,978.13 0.5872645x 88,076.84 6,032,360.11 08/01/2038 2,531.25 0.5792483x 1,466.22 6,033,826.33 02/01/2039 152,531.25 0.5713415x 87,147.43 6,120,973.77 Total $7,402,917.69 -$6,120,973.77 - 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Proof of Bond Yield @ 2.7678045% Derivation Of Target Amount Par Amount of Bonds.......................................................................................................................................................$5,935,000.00 Reoffering Premium or (Discount)....................................................................................................................................185,973.75 Original Issue Proceeds...................................................................................................................................................$6,120,973.75 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Bond Balance Report Date Principal Coupon Interest Total P+I Bond Balance 02/01/2019 385,000.00 3.000%68,687.67 453,687.67 5,550,000.00 08/01/2019 --88,605.00 88,605.00 5,550,000.00 02/01/2020 445,000.00 3.000%88,605.00 533,605.00 5,105,000.00 08/01/2020 --81,930.00 81,930.00 5,105,000.00 02/01/2021 460,000.00 3.000%81,930.00 541,930.00 4,645,000.00 08/01/2021 --75,030.00 75,030.00 4,645,000.00 02/01/2022 470,000.00 3.000%75,030.00 545,030.00 4,175,000.00 08/01/2022 --67,980.00 67,980.00 4,175,000.00 02/01/2023 490,000.00 3.000%67,980.00 557,980.00 3,685,000.00 08/01/2023 --60,630.00 60,630.00 3,685,000.00 02/01/2024 485,000.00 3.000%60,630.00 545,630.00 3,200,000.00 08/01/2024 --53,355.00 53,355.00 3,200,000.00 02/01/2025 495,000.00 3.000%53,355.00 548,355.00 2,705,000.00 08/01/2025 --45,930.00 45,930.00 2,705,000.00 02/01/2026 520,000.00 4.000%45,930.00 565,930.00 2,185,000.00 08/01/2026 --35,530.00 35,530.00 2,185,000.00 02/01/2027 215,000.00 4.000%35,530.00 250,530.00 1,970,000.00 08/01/2027 --31,230.00 31,230.00 1,970,000.00 02/01/2028 220,000.00 3.000%31,230.00 251,230.00 1,750,000.00 08/01/2028 --27,930.00 27,930.00 1,750,000.00 02/01/2029 175,000.00 3.000%27,930.00 202,930.00 1,575,000.00 08/01/2029 --25,305.00 25,305.00 1,575,000.00 02/01/2030 175,000.00 3.000%25,305.00 200,305.00 1,400,000.00 08/01/2030 --22,680.00 22,680.00 1,400,000.00 02/01/2031 185,000.00 3.000%22,680.00 207,680.00 1,215,000.00 08/01/2031 --19,905.00 19,905.00 1,215,000.00 02/01/2032 190,000.00 3.150%19,905.00 209,905.00 1,025,000.00 08/01/2032 --16,912.50 16,912.50 1,025,000.00 02/01/2033 200,000.00 3.150%16,912.50 216,912.50 825,000.00 08/01/2033 --13,762.50 13,762.50 825,000.00 02/01/2034 125,000.00 3.250%13,762.50 138,762.50 700,000.00 08/01/2034 --11,731.25 11,731.25 700,000.00 02/01/2035 130,000.00 3.250%11,731.25 141,731.25 570,000.00 08/01/2035 --9,618.75 9,618.75 570,000.00 02/01/2036 135,000.00 3.375%9,618.75 144,618.75 435,000.00 08/01/2036 --7,340.63 7,340.63 435,000.00 02/01/2037 140,000.00 3.375%7,340.63 147,340.63 295,000.00 08/01/2037 --4,978.13 4,978.13 295,000.00 02/01/2038 145,000.00 3.375%4,978.13 149,978.13 150,000.00 08/01/2038 --2,531.25 2,531.25 150,000.00 02/01/2039 150,000.00 3.375%2,531.25 152,531.25 - Total $5,935,000.00 -$1,474,517.67 $7,409,517.67 - 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:41 AM Post-Sale $910,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A City Hall & Police Project Bond Balance Report Date Principal Coupon Interest Total P+I Bond Balance 02/01/2019 70,000.00 3.000%10,449.98 80,449.98 840,000.00 08/01/2019 --13,308.75 13,308.75 840,000.00 02/01/2020 45,000.00 3.000%13,308.75 58,308.75 795,000.00 08/01/2020 --12,633.75 12,633.75 795,000.00 02/01/2021 50,000.00 3.000%12,633.75 62,633.75 745,000.00 08/01/2021 --11,883.75 11,883.75 745,000.00 02/01/2022 50,000.00 3.000%11,883.75 61,883.75 695,000.00 08/01/2022 --11,133.75 11,133.75 695,000.00 02/01/2023 55,000.00 3.000%11,133.75 66,133.75 640,000.00 08/01/2023 --10,308.75 10,308.75 640,000.00 02/01/2024 55,000.00 3.000%10,308.75 65,308.75 585,000.00 08/01/2024 --9,483.75 9,483.75 585,000.00 02/01/2025 55,000.00 3.000%9,483.75 64,483.75 530,000.00 08/01/2025 --8,658.75 8,658.75 530,000.00 02/01/2026 60,000.00 4.000%8,658.75 68,658.75 470,000.00 08/01/2026 --7,458.75 7,458.75 470,000.00 02/01/2027 60,000.00 4.000%7,458.75 67,458.75 410,000.00 08/01/2027 --6,258.75 6,258.75 410,000.00 02/01/2028 65,000.00 3.000%6,258.75 71,258.75 345,000.00 08/01/2028 --5,283.75 5,283.75 345,000.00 02/01/2029 65,000.00 3.000%5,283.75 70,283.75 280,000.00 08/01/2029 --4,308.75 4,308.75 280,000.00 02/01/2030 65,000.00 3.000%4,308.75 69,308.75 215,000.00 08/01/2030 --3,333.75 3,333.75 215,000.00 02/01/2031 70,000.00 3.000%3,333.75 73,333.75 145,000.00 08/01/2031 --2,283.75 2,283.75 145,000.00 02/01/2032 70,000.00 3.150%2,283.75 72,283.75 75,000.00 08/01/2032 --1,181.25 1,181.25 75,000.00 02/01/2033 75,000.00 3.150%1,181.25 76,181.25 - Total $910,000.00 -$225,489.98 $1,135,489.98 - 2018A GO Cap Outlay Bonds | City Hall & Police Projec | 8/21/2018 | 11:41 AM Post-Sale $2,245,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Capital Outlay Bond Balance Report Date Principal Coupon Interest Total P+I Bond Balance 02/01/2019 260,000.00 3.000%25,635.97 285,635.97 1,985,000.00 08/01/2019 --31,325.00 31,325.00 1,985,000.00 02/01/2020 260,000.00 3.000%31,325.00 291,325.00 1,725,000.00 08/01/2020 --27,425.00 27,425.00 1,725,000.00 02/01/2021 265,000.00 3.000%27,425.00 292,425.00 1,460,000.00 08/01/2021 --23,450.00 23,450.00 1,460,000.00 02/01/2022 275,000.00 3.000%23,450.00 298,450.00 1,185,000.00 08/01/2022 --19,325.00 19,325.00 1,185,000.00 02/01/2023 285,000.00 3.000%19,325.00 304,325.00 900,000.00 08/01/2023 --15,050.00 15,050.00 900,000.00 02/01/2024 290,000.00 3.000%15,050.00 305,050.00 610,000.00 08/01/2024 --10,700.00 10,700.00 610,000.00 02/01/2025 300,000.00 3.000%10,700.00 310,700.00 310,000.00 08/01/2025 --6,200.00 6,200.00 310,000.00 02/01/2026 310,000.00 4.000%6,200.00 316,200.00 - Total $2,245,000.00 -$292,585.97 $2,537,585.97 - 2018A GO Cap Outlay Bonds | 2018 Capital Outlay | 8/21/2018 | 11:41 AM Post-Sale $460,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Streets Bond Balance Report Date Principal Coupon Interest Total P+I Bond Balance 02/01/2019 45,000.00 3.000%5,385.56 50,385.56 415,000.00 08/01/2019 --6,725.00 6,725.00 415,000.00 02/01/2020 40,000.00 3.000%6,725.00 46,725.00 375,000.00 08/01/2020 --6,125.00 6,125.00 375,000.00 02/01/2021 45,000.00 3.000%6,125.00 51,125.00 330,000.00 08/01/2021 --5,450.00 5,450.00 330,000.00 02/01/2022 45,000.00 3.000%5,450.00 50,450.00 285,000.00 08/01/2022 --4,775.00 4,775.00 285,000.00 02/01/2023 45,000.00 3.000%4,775.00 49,775.00 240,000.00 08/01/2023 --4,100.00 4,100.00 240,000.00 02/01/2024 45,000.00 3.000%4,100.00 49,100.00 195,000.00 08/01/2024 --3,425.00 3,425.00 195,000.00 02/01/2025 45,000.00 3.000%3,425.00 48,425.00 150,000.00 08/01/2025 --2,750.00 2,750.00 150,000.00 02/01/2026 50,000.00 4.000%2,750.00 52,750.00 100,000.00 08/01/2026 --1,750.00 1,750.00 100,000.00 02/01/2027 50,000.00 4.000%1,750.00 51,750.00 50,000.00 08/01/2027 --750.00 750.00 50,000.00 02/01/2028 50,000.00 3.000%750.00 50,750.00 - Total $460,000.00 -$77,085.56 $537,085.56 - 2018A GO Cap Outlay Bonds | 2018 Streets | 8/21/2018 | 11:41 AM Post-Sale $50,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A 2018 Sidewalk Project Bond Balance Report Date Principal Coupon Interest Total P+I Bond Balance 02/01/2019 10,000.00 3.000%545.83 10,545.83 40,000.00 08/01/2019 --600.00 600.00 40,000.00 02/01/2020 10,000.00 3.000%600.00 10,600.00 30,000.00 08/01/2020 --450.00 450.00 30,000.00 02/01/2021 10,000.00 3.000%450.00 10,450.00 20,000.00 08/01/2021 --300.00 300.00 20,000.00 02/01/2022 10,000.00 3.000%300.00 10,300.00 10,000.00 08/01/2022 --150.00 150.00 10,000.00 02/01/2023 10,000.00 3.000%150.00 10,150.00 - Total $50,000.00 -$3,545.83 $53,545.83 - 2018A GO Cap Outlay Bonds | 2018 Sidewalk Project | 8/21/2018 | 11:41 AM Post-Sale $2,270,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A St. Croix Valley Rec Center Addition Bond Balance Report Date Principal Coupon Interest Total P+I Bond Balance 02/01/2019 --26,670.33 26,670.33 2,270,000.00 08/01/2019 --36,646.25 36,646.25 2,270,000.00 02/01/2020 90,000.00 3.000%36,646.25 126,646.25 2,180,000.00 08/01/2020 --35,296.25 35,296.25 2,180,000.00 02/01/2021 90,000.00 3.000%35,296.25 125,296.25 2,090,000.00 08/01/2021 --33,946.25 33,946.25 2,090,000.00 02/01/2022 90,000.00 3.000%33,946.25 123,946.25 2,000,000.00 08/01/2022 --32,596.25 32,596.25 2,000,000.00 02/01/2023 95,000.00 3.000%32,596.25 127,596.25 1,905,000.00 08/01/2023 --31,171.25 31,171.25 1,905,000.00 02/01/2024 95,000.00 3.000%31,171.25 126,171.25 1,810,000.00 08/01/2024 --29,746.25 29,746.25 1,810,000.00 02/01/2025 95,000.00 3.000%29,746.25 124,746.25 1,715,000.00 08/01/2025 --28,321.25 28,321.25 1,715,000.00 02/01/2026 100,000.00 4.000%28,321.25 128,321.25 1,615,000.00 08/01/2026 --26,321.25 26,321.25 1,615,000.00 02/01/2027 105,000.00 4.000%26,321.25 131,321.25 1,510,000.00 08/01/2027 --24,221.25 24,221.25 1,510,000.00 02/01/2028 105,000.00 3.000%24,221.25 129,221.25 1,405,000.00 08/01/2028 --22,646.25 22,646.25 1,405,000.00 02/01/2029 110,000.00 3.000%22,646.25 132,646.25 1,295,000.00 08/01/2029 --20,996.25 20,996.25 1,295,000.00 02/01/2030 110,000.00 3.000%20,996.25 130,996.25 1,185,000.00 08/01/2030 --19,346.25 19,346.25 1,185,000.00 02/01/2031 115,000.00 3.000%19,346.25 134,346.25 1,070,000.00 08/01/2031 --17,621.25 17,621.25 1,070,000.00 02/01/2032 120,000.00 3.150%17,621.25 137,621.25 950,000.00 08/01/2032 --15,731.25 15,731.25 950,000.00 02/01/2033 125,000.00 3.150%15,731.25 140,731.25 825,000.00 08/01/2033 --13,762.50 13,762.50 825,000.00 02/01/2034 125,000.00 3.250%13,762.50 138,762.50 700,000.00 08/01/2034 --11,731.25 11,731.25 700,000.00 02/01/2035 130,000.00 3.250%11,731.25 141,731.25 570,000.00 08/01/2035 --9,618.75 9,618.75 570,000.00 02/01/2036 135,000.00 3.375%9,618.75 144,618.75 435,000.00 08/01/2036 --7,340.63 7,340.63 435,000.00 02/01/2037 140,000.00 3.375%7,340.63 147,340.63 295,000.00 08/01/2037 --4,978.13 4,978.13 295,000.00 02/01/2038 145,000.00 3.375%4,978.13 149,978.13 150,000.00 08/01/2038 --2,531.25 2,531.25 150,000.00 02/01/2039 150,000.00 3.375%2,531.25 152,531.25 - Total $2,270,000.00 -$875,810.33 $3,145,810.33 - 2018A GO Cap Outlay Bonds | St. Croix Valley Rec Cent | 8/21/2018 | 11:41 AM Post-Sale $5,935,000 City of Stillwater, Minnesota General Obligation Capital Outlay Bonds, Series 2018A Issue Summary Detail Costs Of Issuance Dated 09/20/2018 | Delivered 09/20/2018 COSTS OF ISSUANCE DETAIL Financial Advisor..................................................................................................................................................................$23,435.00 POS/Official Statement.........................................................................................................................................................$800.00 County Auditor Certificate.....................................................................................................................................................$250.00 SI Miscellaneous expenses..................................................................................................................................................$80.21 Rating Agency Fee...............................................................................................................................................................$15,000.00 Bond Counsel.......................................................................................................................................................................$11,000.00 Registrar...............................................................................................................................................................................$850.00 Miscellaneous.......................................................................................................................................................................$500.00 TOTAL..................................................................................................................................................................................$51,915.21 2018A GO Cap Outlay Bonds | Issue Summary | 8/21/2018 | 11:51 AM 216 4th Street N, Stillwater, MN 55082 651‐430‐8800 www.ci.stillwater.mn.us AGENDA CITY COUNCIL MEETING August 21, 2018 SPECIAL MEETING 3:30 P.M. 3:30 P.M. AGENDA I. CALL TO ORDER II. ROLL CALL III. OTHER BUSINESS 1. Budget Workshop REGULAR MEETING 7:00 P.M. IV. CALL TO ORDER V. ROLL CALL VI. PLEDGE OF ALLEGIANCE VII. APPROVAL OF MINUTES 2. Possible approval of the July 17, 2018 Special Meeting (available Tuesday) and July 31, 2018 regular and recessed meeting minutes VIII. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS 3. Resolution 2018‐174, Human Rights Award 4. Swearing in of Police Officers – Officer Michael Mallet and Officer Zachary Lund IX. 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. X. STAFF REPORTS 5. Police Chief 6. Fire Chief 7. City Clerk 8. Community Development Dir. 9. Public Works Dir. 10. Finance Director 11. City Attorney 12. City Administrator 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 2018‐175, directing payment of bills 14. Possible approval of sanitary sewer adjustment 15. Possible approval to purchase upgrade server/software and Bravo DVD burner for squad videos 16. Resolution 2018‐176, approving revised purchasing policy XII. PUBLIC HEARINGS ‐ OUT OF RESPECT FOR OTHERS IN ATTENDANCE, PLEASE LIMIT YOUR COMMENTS TO 10 MINUTES OR LESS. XIII. UNFINISHED BUSINESS 17. Consider request to delete the condition from the Mills on Main Special Use Permit that requires the commercial parking spaces to be made available to the public during non‐ business hours (from July 31st meeting) 18. Possible approval of plans and specifications and ordering advertisement for bids for the 2018 Sidewalk Rehabilitation Project, Project 2018‐03 (Resolution ‐ Roll Call) 19. Possible approval of award of bids for St. Croix Valley Rec Center Athletic Dome Replacement (Resolution ‐ Roll Call) (AVAILABLE TUESDAY) XIV. NEW BUSINESS 20. Discussion regarding Minar Neighborhood development strategy options 21. Possible approval of Heritage Ridge final plat and development agreement (Resolution – Roll Call) 22. Possible approval of possible purchase of tax forfeited property (Resolution – Roll Call) (AVAILABLE TUESDAY) 23. Possible approval of resolution accepting proposal on competitive negotiated sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A (Resolution – Roll Call) 24. Possible approval of request for a trash enclosure on Water Street XV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS (CONTINUED) XVI. COMMUNICATIONS/REQUESTS XVII. COUNCIL REQUEST ITEMS 25. Beyond the Yellow Ribbon update XVIII. STAFF REPORTS (CONTINUED) XIX. ADJOURNMENT illwat r Administration August 16, 2018 TO: Honorable Mayor and City Council Members CC: City of Stillwater Department Heads City of Stillwater Staff FROM: J. Thomas McCarty, City Administrator Sharon Harrison, City Finance Director SUBJECT: Stillwater City Administrator's 2019 Budget Recommendations Pursuant to Article VII. Section 7.01 of the Stillwater City Charter, I am pleased to present the City Administrator's 2019 Budget Recommendations for the City of Stillwater for your review and consideration. The total proposed 2019 budget (all funds) is approximately $35,000,000. Upon review and analysis of all revenue and expenditure requests, the 2019 Budget Recommendations propose a balanced 2019 budget that continues and enhances the provision of excellent city services and programs to meet the needs of the citizens of Stillwater. In 2016 the City Council began to address the issues of balancing revenue enhancement against ever increasing demand for services and increasing health care costs, managing long term city infrastructure needs, maximizing economic development opportunities, and planning for aging population dynamics in the workforce and in the community by adopting the City's strategic plan for 2020. The top strategic issues identified by the City Council included: organizational excellence, community development and engagement and capital improvement planning (as confirmed and updated at the 2017 City Council work session). The proposed 2019 budget includes specific programming, staffing and capital outlay appropriations that align with these strategic themes and initiatives. The City Administrator and City Finance Director met with all departments and agencies and have reviewed and analyzed all proposed 2019 program operations, revenues, expenditures, staffing levels, capital projects and long-term debt, collaborative efforts and use of fund balances. The recommended total levy increase for 2019 is 7.583%, which would result in a property tax increase of approximately $74 for the owner of a median priced home in Stillwater at $236,000, assuming the home's market value increased 4.0% over the past year. Operations All general fund revenue sources have been thoroughly analyzed for potential increases to support requests for increased expenditures. State Local Government Aid (LGA) has a slight increase for 2019. All license and permit fees and charges for services have been adjusted for program cost increases and increased activity levels resulting in a revenue increase for 2019. Based on the initial 2019 general fund budget proposals, the tax levy increase for the general fund operating budget was $2,034,591 or 23% over 2018. The Administrator's budget recommendations reduce the proposed 2019 operating levy increase to $646,966 or 6.89% above the 2018 adopted tax levy. The total 2019 property tax levy increase (operating levy+ debt service levy) is proposed to increase by $971,931 or 7.58% over 2018. Each department's and special revenue fund's initial budget requests and the Administrator's recommendations are included in the budget book and shown on the attached slides. Requests for new or revised programs, services or staffing levels are identified in the summary page for each department. Specific department elements that enhance the top strategic issues identified by the City Council are also noted on the summary pages. Increased wage and benefit costs are a major element in the 2018 budget. Employee wages are budgeted at a 3.0% increase for 2019, consistent with settled bargaining union contracts and reflecting full implementation of the classification/compensation study results to help attract and retain employees. Health insurance estimated costs are budgeted at a 15% increase and could be modified based on final 2019 health insurance costs. Due to funding constraints, all department and agency requests for new staffing levels and new or expanded programs for 2019 were unable to be funded. Recommendations for a support position in the Human Resources division and contingent funding to match a federal SAFER grant proposal for three firefighter positions (if accepted by Council) are included in the proposed budget. The budget recommends professional consultant services for completion of an operational/staffing analysis for the engineering/public works department to assist the City in managing the provision of engineering/public works/utilities/parks services in the most efficient and effective manner for the City. Capital Improvement Program Capital requests are summarized in major categories: annual capital outlay (all departments), street improvement program, and other major proposed projects. This section includes capital outlay requests submitted by each department or special revenue fund and the Administrator's recommendations for 2019. Maintaining the City's physical infrastructure and managing deferred maintenance issues (buildings, streets, sidewalks, parks, sewer systems, and IT systems) coupled with funding for improvements to downtown and Bridgeview and Aiple park properties are major funding challenges for the future. Proposals for annual capital outlay items are included in this section. In addition, this section includes a proposal for the Public Works Street Improvement Program (annual city street infrastructure improvements). The proposal continues the program that was initiated in 2016 after languishing for a number of years. Issuance of debt (bonding) is proposed as a major funding source for the City's capital improvement program. The proposed debt issuance is consistent with the City's debt management policies. The current City bond rating of Aa2 (Moody's) has been maintained for debt issued in 2019. The Aa2 bond rating provides a strong signal of the city's financial stability to prospective bond buyers, resulting in better interest rates for the City. An overview of the City's debt obligation balance is also included in the attached slides. The City Administrator 2019 Budget Recommendations are based upon the following components: • Maintaining a modest increase in the City's property tax rate; • Maximizing revenues from non-property tax sources where possible; • Allocation of existing resources to offset additional costs in priority areas; • Increase fees and charges to address the cost of service provision; • Program modification based upon priorities included in the City Mission Statement and adopted City Strategic Plan; • Commitment to maintain core physical, technology and capital equipment infrastructure; • Estimated costs for employee compensation and benefit adjustments; • Maintains community agency funding support for 2019; The City Council will meet on Tuesday, August 21, 2018 for a preliminary review of the City Administrator's 2019 budget recommendations and pursuant to state law, must adopt a preliminary 2019 budget and certify the maximum City property tax levy to the County by September 30, 2018. The City Council must also schedule the Truth in Taxation meeting date in December for adoption of the final 2019 Still water City budget. We are available to answer questions you may have regarding the attached budget recommendations. homas McCarty 'i ty Administrator Sharon~'\1° Finance Director 2019 Proposed BudgetCITY OF STILLWATERAugust 21, 2018 Budget CalendarApril - Finance department begins budget process by preparing projected wages & benefits, and insurance costs.April 25 – Finance Department distributes CIP (2019-2023) information for updating.May 25 – CIP (2019-2023) information updates due to Finance. Finance assembles preliminary CIP.June 20 – Budget guidelines along with budget worksheets are distributed to DepartmentHeads/Managers for completion.July 11 – Completed budget worksheets are due to Finance. The Finance Department assembles the preliminary requested budget information.July 16-27 –City Administrator reviews requested budget with Department Heads/Managers and prepares proposed budget.August 14 – Finance distributes proposed budget to Department Heads/Managers and City CouncilAugust 21 - Council, during a budget workshop session, meets with the City Administrator and Department Heads to review the proposed budget.End of August – County distributes estimated Local Taxable Value & Fiscal Disparity information.September 4 – Review updated proposed budget information. (if needed)September 18 – The latest the Council can adopt a proposed budget, a proposed levy and set theT-N-T Meeting date in December. Budget FactorsProposed 2019$94,000 Increase/Decrease in Operating Expenditures1% of Levy1% Increase/Decrease in Health Insurance Premium$10,000Retiree Health Insurance10% of the LevyLibrary Operating Levy13% of the levyPersonnel Costs77% of the LevyCosts to continue7.75% Operating Expenditure AssumptionsProposed 2019Wages3.0% in COLAHealth Insurance – City Contribution15 % increase for single coverage and retiree coverage$15 increase for family coveragePERAPolice & FireIncrease from 16.2% to 16.95%& FICA/MedicareNo changeGeneral Liability & Worker’s Compensation Insurance4% increase CONSULTING FEESOperating BudgetDepartmentPurpose Requested Proposed DiscussionMayor/CouncilLobbyist$25,000 $25,000 High PriorityAdministrationPW Organizational Review $40,000 $40,000 High PriorityCommunity Development Aiple Property Plan$35,000 $17,500 Add’l $17,500 in 2020Community Development Bergstein Property Plan$15,000 $15,000 PriorityCommunity Development Entrance Monument Design $15,000 $15,000 High PriorityCommunity DevelopmentComp Plan Ordinance Amendments$25,000 $10,000 Add’l $15,000 in 2020Community Development HPC Matching Funds$5,000 $5,000 PriorityEngineeringADA Study$45,000 $45,000 Fund $20,000‐Grant RevenueTOTALS $205,000 $172,500* Less $20,000 in Revenue*Proposed Amount net of Revenue – 1.6% of Operating Levy PersonnelRequested/Proposed Department PositionPriority FTE Requested Proposed NotesMISGIS/IT Technician High 0.6 $74,681$0FinanceAccountantCritical 1.0 $81,251$0Human Resources HR SpecialistCritical 1.0 $82,360 $41,181 To Start 07/01/19PolicePolice OfficerHigh 1.0 $99,618$0PolicePolice OfficerHigh 1.0 $99,618$0PolicePolice OfficerHigh 1.0 $99,618$0PolicePolice OfficerHigh 1.0 $99,618$0FireData SpecialistHigh 0.25 $17,446$0 Increase HoursFireFirefighterCritical 1.0 $82,232$0StreetsMaintenance Worker II High 1.0 $54,437$0 To Start 04/01/19Streets/Parks/Sewer Asst PW Superintendent High 1.0 $78,238$0 To Start 04/01/19TOTALS9.85 $869,117 $41,181 Strategic PlanAlignment of 2019 Proposed Budget Items DEVELOP ORGANIZATIIONOperations & Staffing RequestsCurrent Staffing Levels - continued supportPersonnel ProposalsHR Specialist (start July 1)SAFER Grant Match (Fire)Succession PlanningStaff TrainingProfessional ServicesOperation Review – Public WorksTransition FundingCity Attorney, City Clerk, Finance Director & Facilities Manager Strategic PlanAlignment of 2019 Proposed Budget Items (Continued)STRATEGIC PLANNING AND IMPLEMENTATIONCouncil/Staff Planning SessionCapital RequestsBridgeview ParkRiverbank Stabilization/Elevated WalkwayParks Maintenance/ImprovementsStreet & Sidewalk Improvement ProgramIT Upgrades Strategic PlanAlignment of 2019 Proposed Budget Items (Continued)DEVELOP COMMUNITYEconomic DevelopmentDowntown Redevelopment, Housing & Business DevelopmentComprehensive Plan CompletionTrails & Stairs ImprovementsEntrance MonumentDesign & ConstructionParks PlanningAiple & Bergstein BuildingsCommunity ThreadDARTS Bus Loop Transit fundingSpecial Events FundingJuly 4thCelebration, Bridge Opening Celebration Property Tax LevyProposed 2019CITY‐WIDE LEVYGeneral Revenue Tax Levy$10,026,425Required Debt Service Tax Levy $3,362,321New Debt Service Tax Levy$400,000Total Debt Service Levy$3,762,321TOTAL CITY‐WIDE LEVY$13,788,746Required Debt Service Tax Levy AmountG.O. Capital Outlay 2012A $542,380G.O. Capital Outlay 2014A $710,053G.O. Capital Outlay 2014 (Armory) $85,000G.O. Capital Outlay 2016A $823,830G.O. Capital Outlay 2017A $404,006G.O. Capital Outlay 2009D $326,668G.O. Capital Outlay 2018A $470,384Total $3,362,3212019 New Bond Issue to fund:2019 Capital Outlay $2,538,0502019 Street Improvement Project $450,000Total $2,988,050PARCEL‐SPECIFIC LEVYWMO Levy$41,100 Property Tax LevyLast 5 years and Proposed 2019*YearGeneral Tax LevyDebt Service Tax LevyTotal Property Tax Levy$ Increase from Prior Year% Increase from Prior Year2014 $7,606,066 $3,018,920 $10,624,986 $218,479 2.099%2015 $7,825,610 $3,514,043 $11,339,653 $714,667 6.726%2016 $8,365,422 $3,665,145 $12,030,567 $690,914 6.093%2017 $8,857,823 $3,674,616 $12,532,439 $501,872 4.172%2018 $9,379,459 $3,437,356 $12,816,815 $242,476 2.269%2019* $10,026,425 $3,762,321 $13,788,746 $971,931 7.583%$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,000$16,000,0002014 2015 2016 2017 2018 2019*General Tax LevyDebt Service Tax LevyNote: In 2014 there were levy limits imposed on the general tax levy. Property Tax LevyProposed 2019 vs Adopted 20182018Adopted CITY‐WIDE LEVY2019 Requested2019 Proposed $ Increase % Increase$9,379,459General Operating Tax Levy$11,414,050 $10,026,425 $646,966 6.898%$3,437,356Debt Service Tax Levy$3,812,321 $3,762,321 $324,965 9.454%$12,816,815Totals$15,226,371 $13,788,746 $971,931 7.583%2018Adopted PARCEL‐SPECIFIC LEVY2019 Requested2019 Proposed $ Decrease % Decrease$42,700WMO Tax Levy$43,400 $41,500‐$1,200‐2.810% Property Tax RateProposed 2019Note: Valuation numbers and fiscal disparity numbers are not available from Washington County; therefore, the following assumptions were made:Assumptions6% increase in the City’s TaxableTax Capacity.5% increase in the Fiscal DisparityPortion of Levy.Formula: Total City Property Tax Levy City’s Taxable Tax Capacity = City Tax RateItemActual Pay 2018Proposed Pay 2019% ChangeProperty Tax Levy$12,816,815 $13,788,746 7.583%Fiscal Disparity Portion of Levy‐$1,369,408 $1,437,878 5.000%City’s Portion of Levy=$11,447,407 $12,350,868 7.892%City’s Taxable Tax Capacity÷21,428,697 $22,714,419 6.000%City Tax Rate=53.421% 54.375% 1.786% Property Tax RateLast Ten Years and Estimated 2019*0.000%10.000%20.000%30.000%40.000%50.000%60.000%70.000%2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*Year Rate200947.930%201049.432%201152.539%201254.674%201361.503%201458.216%201554.916%201656.996%201756.927%201853.421%2019*54.375% Tax Impact2019 ProposedActual Payable 2018 Proposed Payable 2019From 2018 to 2019Market ValueTax CapacityActual City Tax RateCity Property TaxTaxable Market ValueTax CapacityProposed City Tax RateCity Property Tax $ Change % Change227,200* 2,104 53.421% $1,123.98 236,300 2,203 54.375% $1,197.88 $73.90 6.6%96,200 676 53.421% $361.13 100,000 718 54.375% $390.41 $29.28 8.1%144,200 1,199 53.421% 640.52 150,000 1,263 54.375% $686.76 $46.24 7.2%240,400 2,248 53.421% $1,200.90 250,000 2,353 54.375% $1,279.44 $78.54 6.5%384,600 3,820 53.421% $2,040.68 400,000 3,988 54.375% $2,168.48 $127.80 6.3%Assumptions4% increase in Market Value from 2018 to 2019Information is based on Residential Homestead PropertiesMarket Values are converted to Tax Capacity Values using Class Rates determined by the MNLegislature.Formula: Tax Capacity x City Tax Rate = City Property Tax* Median Value Homein Stillwater Debt Service Balance (as of January 1)Last Nine Years and budget year 2019$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000$45,000,0002010 2011 2012 2013 2014 2015 2016 2017 2018 2019GO Capital Outlay BondsGO Improvement BondsGO Revenue BondsGO Tax Increment BondsRevenue BondsActual Debt Service Balance by TypeDoes not include Bond Issuance in Progressor any future Proposed Bond IssuancesYearGO Capital Outlay BondsGO Improvement BondsGO Revenue BondsGO Tax Increment BondsRevenue BondsOtherLong-Term Debt2010 $22,755,000 $3,120,000 $4,835,000 $6,585,000$0 $462,5002011 $16,605,000 $2,750,000 $2,660,000 $5,015,000$0 $267,5002012 $14,385,000 $2,375,000 $2,355,000 $4,910,000$0 $127,5002013 $18,645,000 $2,000,000 $2,135,000 $4,790,000$0 $42,5002014 $25,945,000$0 $2,075,000 $4,655,000$0$02015 $23,835,000$0 $1,755,000 $4,500,000$0$02016 $25,135,000$0 $1,420,000 $6,775,000$0$02017 $21,655,000$0 $1,065,000 $6,585,000 $6,585,000$02018 $21,755,000$0 $695,000 $6,375,000 $6,175,000$02019 $19,490,000$0 $315,000 6,150,000 $5,790,000$0 Bond Rating (Moody’s)Last 10 YearsYear Rating Year Rating2018 Aa2 2012 Aa22017 Aa2 2010 Aa22016 Aa2 2009 Aa32014 Aa2 2008 Aa32013 Aa2 2007 Aa3Aaa... - Aa1 - Aa2 - Aa3 - A1 - A2 - A3 - Baa1 - Baa2 - Baa3 - ...CHighest-LowestCurrent (2018) Bond Rating GENERAL FUNDOPERATING REVENUES/EXPENDITURES 2018 Adopted Revenue Type2019 Requested2019 Proposed Variance$7,203,862 Levy$8,835,409 $7,693,032 $489,170$466,000 Franchise Fees$468,000 $468,000 $2,000$124,000 Other Property Taxes $126,000 $126,000 $2,000$577,756 Licenses and Permits$670,830 $731,830 $154,074$1,336,988 Intergovernmental$1,336,988 $1,384,370 $47,382$955,305 Charges for Services $1,077,233 $1,102,233 $146,928$73,500 Fines and Forfeits$73,500 $73,500 $0$234,550 Miscellaneous$154,950 $164,950‐$69,600$10,971,961 Total Revenues$12,742,910 $11,743,915 $771,95466%4%1%6%12%9%1%1%2019 Proposed Budget Levy Franchise Fees Other Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeits MiscellaneousGENERAL FUNDOperating Revenues$736,496 in Local Government Aid (LGA)$4,382 increase. Local Government Aid (LGA)Received in last 10 years and Certified 2019*$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,0002009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*Year Amount2009 $183,2972010 $174,5802011 $174,5802012 $174,5802013 $174,5802014 $568,5912015 $629,0462016 $645,6032017 $650,8462018 $732,1142019* $736,496 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$8,462,773 Personnel Services $9,902,300 $9,083,800 $621,027$487,285 Supplies $498,685 $437,585‐$49,700$1,846,803 Services and Charges $2,154,815 $2,058,420 $211,617$175,100 Miscellaneous$187,110 $164,110‐$10,990$10,971,961 Total Operating Expenditures $12,742,910 $11,743,915 $771,954GENERAL FUNDTotal$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,0002018 Adopted 2019 Requested 2019 ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and ChargesMiscellaneous2019 Budget Impacts7.04% increase in proposed operating expenditures.77%4%18%1%Personnel ServicesSuppliesServices & ChargesMiscellaneous2019 Proposed Operating Expenditures 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$89,122 Personnel Services $95,694 $94,694 $5,5725.0 Part‐Time (Benefitted) 5.0 5.0 0.0$88,587 Services and Charges $100,598 $98,069 $9,482$28,650 Miscellaneous $27,900 $27,900‐$750$206,359 Total Mayor & City Council $224,192 $220,663 $14,3042019 Budget ImpactsServices and Charges$48,000 -Stillwater TownshipReduction of $22,000 from 2018Per Annexation Agreement (Year 4 of 5)$25,000 – Lobbyist$7,500 – Strategic Plan Strategic Planning and Implementation – Strategic Plan ElementGENERAL FUNDMayor & City Council$0$50,000$100,000$150,000$200,000$250,0002018Adopted2019Requested2019ProposedOperating Expenditures Miscellaneous Services and Charges Personnel Services 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$21,532 Personnel Services $0 $0‐$21,532$750 Supplies $0 $0‐$750$9,824 Services and Charges$6,244 $6,244‐$3,580$1,000 Miscellaneous$0 $0‐$1,000$33,106 Total Elections$6,244 $6,244‐$26,8622019 Budget Impacts2018 was an election yearGENERAL FUNDElections$0$5,000$10,000$15,000$20,000$25,000$30,000$35,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and ChargesMiscellaneous 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$287,480 Personnel Services $382,789 $308,110 $20,6302.8 FTEs (Benefitted) 3.4 2.8 0.0$8,400 Supplies $8,600 $8,600 $200$72,128 Services and Charges $75,988 $75,891 $3,763$750Miscellaneous $500 $500‐$250$368,758 Total MIS $467,877 $393,101 $24,3432019 Budget ImpactsServices and charges$5,000 Training - Office 10 transitionGENERAL FUNDMIS$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,0002018Adopted2019Requested2019ProposedOperating Expenditures Miscellaneous Services and Charges Supplies Personnel Services 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$367,065 Personnel Services $469,874 $374,367 $7,3023.55 FTEs (Benefitted) 4.65 3.65 0.0$4,750 Supplies $3,000 $3,000‐$1,750$78,086 Services and Charges $85,908 $84,579 $6,493$2,300 Miscellaneous $2,300 $2,300 $0$452,201 Total Finance $561,082 $464,246 $12,0452019 Budget ImpactsServices and charges$4,800 CAFR to be prepared by Auditors.$5,000 for software training.GENERAL FUNDFinance$0$100,000$200,000$300,000$400,000$500,000$600,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and ChargesMiscellaneous GENERAL FUNDHuman Resources2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$142,234 Personnel Services $228,773 $173,245 $31,0111.15 FTEs (Benefitted) 2.15 2.15 1.0$900 Supplies $900 $900 $0$34,824 Services and Charges $42,434 $42,429 $7,605$400 Miscellaneous $1,910 $1,910 $1,510$178,358Total Human Resources $274,017 $218,484 $40,126$0$50,000$100,000$150,000$200,000$250,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and ChargesMiscellaneous2019 Budget ImpactsPersonnel Services1 Additional FTE to start July 1 -Develop Organizational Excellence –Strategic Plan ElementServices and Charges$29,888 for Labor Relations, funding EAP, Background Checks, andTraining 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$425,617 Personnel Services $430,904 $430,554 $4,9373.7 FTEs (Benefitted) 3.6 3.6‐0.11.0 Part‐Time (Non‐Benefitted) 1.0 1.0 0.0$4,750 Supplies$4,750 $4,750 $0$169,470 Services and Charges$197,282 $197,147 $27,677$3,800 Miscellaneous$3,900 $3,900 $100$603,637 Total Administration$636,836 $636,351 $32,7142019 Budget ImpactsService and Charges$112,500 – Assessing Services (contract with Washington County)$40,000 – Operational Review (Public Works) –Develop Organizational Excellence –Strategic Plan ElementGENERAL FUNDAdministration$0$100,000$200,000$300,000$400,000$500,000$600,000$700,0002017Adopted2018Requested2018ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and ChargesMiscellaneous 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$146,047 Personnel Services $0 $‐$146,0471.0 Part‐Time (Benefitted) 0.0 0.0 0.0$2,500 Supplies $0 $0‐$2,500$166,281 Services and Charges $196,122 $196,111 $29,830$314,828 Total Legal $196,122 $196,111‐$118,717GENERAL FUNDLegal$0$50,000$100,000$150,000$200,000$250,000$300,000$350,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and Charges2019 Budget ImpactsServices and ChargesNew Contractual Agreement 2018Adopted Expenditure Type2019Requested2019 Proposed Variance$25,252 Personnel Services $135,738 $110,831 $85,5791.0 FTEs (Benefitted) 1.0 1.0 1.0$10,750 Supplies$11,250 $11,250 $500$128,141 Services and Charges$120,009 $119,949‐$8,192$500 Miscellaneous$1,000 $1,000 $500$164,643 Total Plant/City Hall$267,997 $243,030 $78,387GENERAL FUNDPlant/City Hall$0$50,000$100,000$150,000$200,000$250,000$300,0002018Adopted2019Requested2019ProposedOperating ExpendituresPerssonnel ServicesSuppliesServices and ChargesMiscellaneous2019 Budget ImpactsPersonnel ServicesFTE -Facilities Supervisor to start October 1, 2018 –Develop OrganizationalExcellence –Strategic Plan Element 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$379,646 Personnel Services $394,155 $393,655 $14,0093.75 FTEs (Benefitted) 3.75 3.75 0.0$3,250 Supplies $2,400 $2,400‐$850$73,946 Services and Charges $107,884 $75,268 $1,322$7,900 Miscellaneous $5,700 $5,700 $‐2,200$464,742 Total Community Development $510,139 $477,023 $12,2812019 Budget ImpactsServices and Charges$17,500 – Aiple Property Plan Develop our Community – Strategic Plan Element$15,000 – Bergstein Property Plan Develop our Community – Strategic Plan Element$15,000 – Entrance Monument Design Plan Develop our Community – Strategic Plan Element$10,000 – Comp Plan Ordinance Amendments$5,000 – HPC Matching FundsGENERAL FUNDCommunity Development$0$100,000$200,000$300,000$400,000$500,000$600,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and Charges 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$2,912,728 Personnel Services $3,583,805 $3,165,170 $252,44226.0 FTEs (Benefitted) 30.0 26.00 0.03.0 Seasonal Positions 3.0 3.0 0.0$95,100 Supplies $94,600 $69,800‐$25,300$276,346 Services and Charges $314,653 $309,408 $33,062$23,500 Miscellaneous $23,500 $22,750‐$750$3,307,674 Total Police $4,016,558 $3,567,128 $259,454GENERAL FUNDPolice$0$500,000$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000$4,500,000$5,000,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and ChargesMiscellaneous 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$1,529,112 Personnel Services $1,739,685 $1,632,681 $103,56911.75 FTEs (Benefitted)13.0 11.75 0.030.0 Part‐Time (Non‐Benefitted) 30.0 30.0 0.0$55,800 Supplies$58,800 $47,300‐$8,500$262,438 Services and Charges$298,295 $298,045 $35,607$10,250 Miscellaneous$10,750 $10,500 $250$1,857,600 Total Fire$2,107,530 $1,988,526 $130,926GENERAL FUNDFire$0$500,000$1,000,000$1,500,000$2,000,000$2,500,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and Charges2019 Budget ImpactsSAFER GrantMatch not included in operating budgetEstablish a contingency 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$332,413 Personnel Services $368,180 $373,437 $41,0244.0 FTEs (Benefitted) 4.0 4.0 0.0$7,800 Supplies $10,000 $9,300 $1,500$48,992 Services and Charges $53,312 $49,382 $390$1,750 Miscellaneous $1,250 $1,250‐$500$390,955 Total Inspections $432,742 $433,369 $42,414GENERAL FUNDInspections (Building)$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and Charges2019 Budget ImpactsPersonnel Services$5,000 for Over-Time -Develop Organizational Excellence –Strategic Plan Element 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$1,500 Supplies$1,500 $500‐$1,000$4,166 Services and Charges$4,170 $870‐$3,296$4,000 Miscellaneous$4,000 $2,500‐$1,500$9,666 Total Civil Defense$9,670 $3,870‐$5,796GENERAL FUNDEmergency Management$0$2,000$4,000$6,000$8,000$10,000$12,0002018Adopted2019Requested2019ProposedOperating ExpendituresSuppliesServices and ChargesMiscellaneous 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$333,685 Personnel Services $357,381 $356,256 $22,5713.25 FTEs (Benefitted) 3.25 3.25 0.01.0 Seasonal Positions 1.0 1.0 0.0$4,500 Supplies$5,000 $4,500 $0$32,743 Services and Charges$65,513 $63,896 $31,153$2,500 Miscellaneous$2,500 $2,000‐$500$373,428 Total Engineering$430,394 $426,652 $53,224GENERAL FUNDEngineering$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and Charges2019 Budget ImpactsService and Charges$45,000 – ADA Study Develop Community – Strategic Plan ElementFund $20,000 with Grant 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$637,436 Personnel Services $658,180 $650,230 $12,7946.75 FTEs (Benefitted) 6.85 6.75 0.04.0 Seasonal Positions 4.0 4.0 0.0$286,535 Supplies$297,885 $275,285‐$11,250$202,731 Services and Charges$279,303 $238,032 $35,301$1,300 Miscellaneous$15,300 $10,300 $9,000$1,128,002 Total Streets$1,250,668 $1,173,847 $45,845GENERAL FUNDStreets$0$200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and ChargesMiscellaneous2019 Budget ImpactsService and Charges$25,000 – Sealcoating 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$833,404 Retirees Health Insurance $1,057,142 $1,020,570 $187,166$166,600 Services and Charges$166,600 $166,600 $0$0 Darts Bus Loop$5,000 $5,000 $5,000$5,000 WaCo Historical Society $7,500 $5,000 $0$16,000 Community Thread$16,000 $16,000 $0$10,500 Youth Service Bureau $12,000 $10,500 $0$86,500 Miscellaneous$86,600 $71,600‐$14,900$1,118,804 Total Unallocated$1,350,842 $1,295,270 $177,266GENERAL FUNDUnallocated$0$200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,000$1,600,0002018Adopted2019Requested2019ProposedOperating ExpendituresMiscellaneousServices and ChargesRetiree Health Insurance2019 Budget ImpactsService and ChargesDarts Bus Loop – 3 Year Commitment Develop Community –Strategic Plan Element Retiree Health InsuranceActual/Budget cost to City for Last 9 Years and Proposed 2018*$0$200,000$400,000$600,000$800,000$1,000,000$1,200,0002010 2011 2012 2013 2014 2015 2016 2017 2018* 2019**Budget Numbers2019 Budget ImpactsRetiree Health Insurance10% of LevyVariance is 29% of the totallevy increase SPECIAL REVENUE FUNDSOPERATING REVENUES/EXPENDITURES 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$2,956 Services and Charges $2,982 $2,980 $24$5,022 Miscellaneous $8,700 $8,700 $3,678$50,000 Fireworks $46,000 $46,000‐$4,000$0 Bridge Opening Festival $15,000 $15,000 $15,000$57,978 Total Expenditures $72,682 $72,680 $14,702SPECIAL REVENUE FUNDSpecial Events$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,0002018Adopted2019Requested2019ProposedOperating ExpendituresServices and ChargesMiscellaneousBridge Opeing Festival2018 Adopted Revenue Type2019 Requested2019 Proposed Variance$47,978 Property Taxes $48,000 $48,000 $22$10,000 Donations$10,000 $10,000 $0$57,978 Total Revenues$58,000 $58,000 $222019 Budget ImpactsPlanned use of Fund Balance ($20,708)for Bridge Opening Festival 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$234,000 Supplies$232,000 $232,000‐$2,000$1,149,731 Services and Charges $1,228,477 $1,228,332 $78,601$17,000 Miscellaneous$17,500 $17,500 $500$174,326 Debt Service Contribution $152,473 $152,618‐$21,708$1,575,057 Total Expenditures$1,630,450 $1,630,450 $55,393SPECIAL REVENUE FUNDSt Croix Valley Recreation Center$0$200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,000$1,600,000$1,800,0002018Adopted2019Requested2019ProposedOperating ExpendituresSuppliesServices and ChargesMiscellaneousDebt Service2018Adopted Revenue Type2019 Requested2019 Proposed Variance$1,473,850 Charges for Services $1,630,450 $1,630,450 $156,600$18,310 St Croix Soccer Club$18,310 $18,310 $0$1,492,160 Total Revenues$1,648,760 $1,648,760 $156,600$0$100,000$200,000$300,000Debt Service Contribution 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$1,043,276 Personnel Services $1,145,074 $1,142,244 $98,968$110,600 Supplies $112,200 $112,200 $1,600$146,489 Services and Charges $179,507 $179,507 $33,018$3,625 Miscellaneous $4,125 $4,125 $500$1,303,990 Total Expenditures $1,440,906 $1,438,076 $134,086SPECIAL REVENUE FUNDLibrary$0$200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,000$1,600,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and ChargesMiscellaneous2018 Adopted Revenue Type2019 Requested2019 Proposed Variance$1,218,490 Property Taxes $1,345,206 $1,288,770 $70,280$66,300 Services and Charges $82,200 $82,200 $15,900$19,200 Miscellaneous $13,500 $13,500‐$5,700$1,303,990 Total Revenues $1,440,906 $1,384,470 $80,480$0$500,000$1,000,000$1,500,0002014 2015 2016 2017 2018 2019Property TaxesAdd'lMOE2019 Budget Impacts6% increase in property taxes (2018 Adopted vs 2019 Proposed)2019 Maintenance of Effort (MOE) ‐$852,617 SPECIAL REVENUE FUNDLibrary (Continued)Funds Held by City for LibrarySpending RestrictionsUse RestrictionsPrincipalAmount Fund Balance 12/31/17Spendable Balance2018 Budget Revenues2018 Budget ExpendituresMinerva Income Materials $23,860 $24,340 $480 $150 $150McCluer‐Webster Interest Materials $10,000 $10,337 $337 $75 $75Hollis Murdock Interest Materials $1,800 $1,843 $43 $15 $15Personnel (Sunday) Grant $0 $118 $118 $1,500 $1,500Helen Lawson* Income Service to Public $0 $37,552 $37,552 $10,000 $10,000Dr Van Meier InterestMedical Materials $1,571 $1,277‐$294 $12 $12Government Gifts Unrestricted $0 $6,666 $6,666 $5,000 $5,000Stillwater Public Library Foundation $0 $614 $614 $38,500 $38,500Kilty Building Maint $50,000 $50,058 $20 $20Miscellaneous Donations (see next slide) $0 $15,678 $15,678 $15,300 $15,300TOTAL $87,231 $150,683 $70,572 $70,572 SPECIAL REVENUE FUNDLibrary (Continued)Miscellaneous Donations include:AthenaMargaret RiversAlice O’Brien EstateProgram Fund (from St Paul Foundation)Small DonationsFriends of the Stillwater Public LibraryOther:Helen Lawson Fund Short Term SPECIAL REVENUE FUNDLibrary (Continued)Sunday Hours100 % Levy FundedPrior Funding – 50% Foundation Grant/50% Levy SupportFunding - In-Kind Donations from Foundation$24,000 - Venue Coordinator$18,720 - Volunteer Coordinator$1,500 – Book weeding supportCollection Funding from Other Sources$10,000 Materials – Lawson, Minerva, etc$8,100 Materials Grant – Foundation$5,000 Programming Grants – Foundation$5,000 Materials Grants – Friends of the Library$5,000 Programing Grants – Friends of the Library$5,600 Program Expenditures – MELS/Legacy FundsSupplemental Project$8,000 Strategic Planning – Other Government Gifts ($5,000)/ ($3,000) Alice O’Brien 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$560,626 Personnel Services $776,523 $659,122 $98,4966.25FTEs (Benefitted) 8.05 6.25 0.04.0Seasonal Positions 4.0 4.0 0.0$119,680 Supplies $136,100 $118,600‐$1,080$195,923 Services and Charges $223,112 $204,701 $8,778$47,000 Miscellaneous $67,000 $35,500‐$11,500$923,229 Total Expenditures $1,202,735 $1,017,923 $94,694SPECIAL REVENUE FUNDParks$0$200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,0002018Adopted2019Requested2019ProposedOperating ExpendituresPersonnel ServicesSuppliesServices and Charges2018 Adopted Revenue Type2019 Requested2019 Proposed Variance$894,129 Property Taxes $1,170,435 $981,623 $87,494$1,100 Licenses and Permits $1,300 $1,300 $200$25,000 Services and Charges $28,000 $28,000 $3,000$3,000 Miscellaneous $3,000 $7,000 $4,000$923,229 Total Revenues $1,202,735 $1,017,923 $94,6942019 Budget Impacts$15,000 – Trail Maintenance(Sealcoating/Crack Seal)$22,000 – Tree Removal 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$15,000 Supplies$15,000 $15,000 $0$15,000 Total Expenditures$15,000 $15,000 $0SPECIAL REVENUE FUNDCommunity Beautification$0$2,000$4,000$6,000$8,000$10,000$12,000$14,000$16,0002018Adopted2019Requested2019ProposedOperating ExpendituresSupplies2018 Adopted Revenue Type2019 Requested2019 Proposed Variance$15,000 Property Taxes $15,000 $15,000 $02019 Budget ImpactsPer Resolution #2011-07, dated January 4, 2011 –requires a minimum $15,000 budget allotment. 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$23,644 Services and Charges $23,644 $23,644 $0$11,526 Miscellaneous $11,526 $11,526 $0$35,170 Total Expenditures$35,170 $35,170 $0SPECIAL REVENUE FUNDWashington County Recycling Grant$0$5,000$10,000$15,000$20,000$25,000$30,000$35,000$40,0002018Adopted2019Requested2019ProposedOperating ExpendituresServices and ChargesMiscellaneous2018 Adopted Revenue Type2019 Requested2019 Proposed Variance$35,170 Intergovernmental$35,170 $35,170 $ 2018 Adopted Expenditure Type2019 Requested2019 Proposed Variance$16,755Personnel Services $17,660 $17,660 $905.25 FTEs (Benefitted) .25 .25 0.0$0Services and Charges $37 $37 $37$213,750 Lodging Tax Disbursements $218,500 $218,500 $4,750$230,505 Total Expenditures $236,197 $236,197 $5,692SPECIAL REVENUE FUNDLodging Tax$0$50,000$100,000$150,000$200,000$250,0002018Adopted2019Requested2019ProposedOperating ExpendituresLodging Tax DisbursementsService and ChargesPersonnel Services2018 Adopted Revenue Type2019 Requested2019 Proposed Variance$225,000 Intergovernmental$230,000 $230,000 $5,000 Capital Outlay –Funded with GO DebtComputer Purchases over $500/All Other Purchases $1,000 or more with a useful life of 1 year or more.2019 Requested2019 ProposedGeneral FundMayor & City Council $5,000 $5,000MIS $337,200 $87,200Human Resources $3,000 $3,000Administration $2,000 $2,000Plant/City Hall$1,500 $1,500Community Development$2,100 $2,100Police$316,200 $275,000Fire$826,400 $566,400Building Inspections$2,000 $2,000Engineering$33,800 $33,800Streets$637,000 $550,000Total General Fund$2,166,200 $1,528,000St Croix Valley Recreation Center$45,050 $45,050Library$136,600 $100,000Parks$818,300 $600,000Sanitary Sewer$455,900 $265,000TOTAL$3,622,050 $2,538,050$0$500,000$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,0002019 Requested 2019 ProposedGeneral FundSCVRCLibraryParksSanitary Sewer Proposed Street ProjectsAnd Funding Sources2019 Proposed StreetImprovement ProjectsBondProceeds TAF State AidWashington CountySpecial Assessments Total Cost2019 Annual Street Improvement Project $450,000$400,000$1,350,000 $2,200,000Neal Avenue Improvement$200,000$200,000CASH 5 Brick Street to Sycamore$80,000 $2,420,000 $150,000 $2,650,000TOTAL$450,000 $200,000 $480,000 $2,420,000 $1,500,000 $5,050,000Capital Improvement Plan - Strategic Plan Element Other Proposed ProjectsAnd Funding Sources2018 Proposed Other Projects TIFState of MN Bonding Bill Unfunded Total CostSt Croix Riverbank Stabilization $1,650,000 $1,650,000 $3,300,000Downtown StreetscapeImprovements$80,000 $80,000Veterans Memorial/Cub Parking Lot Improvements$100,000$100,000Entrance Monument$50,000 $50,000TOTAL$1,750,000 $1,650,000 $130,000 $3,530,000Capital Improvement Plan - Strategic Plan Element ENTERPRISE FUNDSSanitary Sewer FundRates automatically set to increaseMet CouncilRate StudyLong Term ForecastingReplenish reservesStorm Sewer FundCurrently financially soundSigns & Lighting FundRevenues slightly above expendituresContinue to MonitorYearly ENTERPRISE FUNDS(Continued)Parking FundClosely monitored by Parking CommissionCurrently fund able to fundOperating ExpensesCapital ExpensesParking Ramp FundMonitored by Parking CommissionCurrently able to fundOperating ExpensesNeed to begin setting aside reservesMajor replacement items 216 4th Street N, Stillwater, MN 55082 651‐430‐8800 www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES July 31, 2018 REGULAR MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order at 4:30 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Absent: None Staff present: City Administrator McCarty City Attorney Magnuson Fire Chief Glaser Police Chief Gannaway Community Development Director Turnblad City Planner Wittman Public Works Director Sanders City Clerk Ward OTHER BUSINESS Washington Avenue TH 36 Study- Kevin Hoglund, Stantec Kevin Hoglund, Stantec, presented a study of potential Washington Avenue Intersection improvements. He summarized the low cost, mid cost and ultimate options for improvements. He stated that MnDOT has indicated no intention of funding any type of interchange at this intersection. Councilmember Polehna asked if the study looked at filling in the infiltration pond to provide more stacking distance instead of installing a roundabout so far to the north. Mr. Hoglund replied that this concept avoids impacts to the ponds. On the Oak Park Heights side, MnDOT is requiring the infiltration ponds to remain. Public Works Director Sanders added that the potential roundabout is located so far north to allow for a greater amount of stacking at the interchange. He stated that there is a potential for redevelopment of the Herbergers site, so the Council may want to talk to the property owner about acquiring right-of-way that would be needed if Alternative 2 were chosen. Councilmember Weidner suggested a roundabout closer to Highway 36 to minimize the number of businesses impacted, perhaps as part of the Herbergers parking lot, or at Tower Drive. Mr. Hoglund replied that bringing the roundabout closer to Highway 36 would not give enough stacking distance for the interchange. He stated the roundabout could be moved to Tower Drive. It’s just a concept at this point. Public Works Director Sanders stated that if everyone agrees the intersection needs improvements, the next step could be to look at the best location for a roundabout. That might take 6-12 months, or the developer may want to see something sooner at the Herbergers site. City Council Meeting July 31, 2018 Page 2 of 9 Mr. Hoglund noted that MnDOT just completed a Highway 36 study and is implementing new timing for all signals on the corridor to lengthen the green time on Highway 36 and lessen the green time on side streets. Manning Ave TH 36 Interchange – Washington County Nathan Arnold, Engineer II Project Manager with Washington County, reviewed the Trunk Highway 36 and Manning Avenue/County State Aid Highway 15 Interchange Study Update, including development opportunities and existing system deficiencies. He summarized the project goals and reviewed construction options, funding, local costs, and next steps. The intersection ranks in the top 100 worst intersections in the State. He noted that Washington County has secured $7 million for the approximately $25 million project, which would be constructed in 2021. Councilmember Menikheim mentioned the possibility of a future hospital campus in the northeast quadrant. Mr. Arnold stated engineers have been working with the hospital in designing the options. Councilmember Polehna commented that the Legends and 62nd Street neighborhoods have concerns about forcing all the traffic onto their streets instead of allowing traffic to exit further south. Mr. Arnold replied that when 62nd Street was rebuilt, it was made signal-ready. The interchange will start to break down if the intersection is too close to Highway 36. Councilmember Junker asked how 41,000-42,000 cars per day on Highway 36 compares with other roadways. Mr. Arnold replied that Highway 94 has about twice that volume but there are no side street connections or direct accesses, so it functions better. Council members thanked Mr. Arnold for the information. Small Cell Wireless ordinance discussion City Planner Wittman informed the Council that staff is at an impasse with Xcel Energy as they are requesting the City Council grant them a full exemption from future design standards and permitting processes involved in the proposed Small Cell Wireless ordinance. The ordinance is near ready for a public hearing. Colette Jurek, Xcel Energy Manager of Community and Local Government Relations, thanked the City for reaching out when beginning work on this ordinance. She stated that Xcel’s attorneys have found that under the Minnesota Public Utilities Commission tariffs, the term distribution facilities includes all associated accessories and equipment that have the potential to distribute power. Therefore Xcel is authorized by the terms of the tariff to install these facilities exempt from further regulation in this area. Hennepin County has accordingly altered its ordinance to refer to non-utility wireless equipment. She showed a picture of the equipment Xcel would use. Xcel anticipates upgrading or modernizing its system to use this type of technology in 2020. She stated it’s unlikely that the facilities would be installed along the river or in the downtown because they need to be positioned high, like on a hill. One or two of them could be added in Stillwater. Right now they have 10-15 of these in the entire City and do not expect any adjustment to that number, so the impact would be fairly small. Xcel is requesting the exemption and will make City staff aware of what they will be doing in advance. City Council Meeting July 31, 2018 Page 3 of 9 Councilmember Menikheim asked if the devices will make it easier to repair problems. Ms. Jurek responded they will be able to better locate an outage and shorten the impact of the outage on customers. They are powered by batteries. Councilmember Junker suggested that every utility company may want an exemption from the ordinance. He asked what is the distinction between Xcel and other utility companies that will be affected by the new ordinance. Ms. Jurek stated that Xcel’s equipment is necessary to provide electricity service to the customer base. They are not using it as a communication method or mechanism for resale to the general public. The State defines the small wireless accessories on Xcel’s equipment as being exempt from further regulation. City Planner Wittman stated she has one preliminary inquiry right now from AT&T for a specific site. It is getting close to the point where if the Council does not adopt an ordinance soon it will be automatically approved because of State law. City Attorney Magnuson stated there’s a difference between the metering function that Xcel uses to monitor its own system versus housing small cell wireless antennas for companies like AT&T, Verizon and so on. He recommended approval of the proposed ordinance which allows for exclusive franchises (Xcel) to be exempt from permitting but to still require them to meet adopted design standards with the option to administratively amend the standards as wireless technology evolves. The ordinance could define one standard for their internal equipment used to monitor their own system and another standard or process for the guests they may invite to house equipment on their poles. Regarding design of the facilities, Ms. Jurek stated that under the Minnesota operating tariffs, Xcel has “standard facilities” and if a city requests them to do something outside of that to meet certain design criteria, Xcel would have to charge under the excess facilities regulation, so there could be cost implications. Ms. Wittman stated that staff will review the applicable public utilities tariffs. STAFF REPORTS Police Chief Gannaway informed the Council that Night to Unite is set for August 7, 5-9 p.m. There will be several neighborhood gatherings in addition to the main event at Washington Square Park. Community Development Director Turnblad noted that Phase III of the City Hall project is in progress. Cost estimates for the improvements are under budget. Architects are putting together construction drawings and construction should begin in October. Public Works Director Sanders informed the Council the contractor has been working downtown on mill and overlay. The river level is dropping and should be below the river walk this weekend so the park should be completely open. Washington County has begun the Third Street reconstruction project and is asking for a noise variance to accommodate saw cutting of the concrete pavement. Allan Brandt, Washington County Public Works Project Manager, stated the concrete needs to be cut within a certain amount of time after placing it. They anticipate starting at 6 a.m. and finishing between 12 and 2 a.m. They would notice all residents within 300 feet. Councilmember Menikheim requested as much advance notice as possible for the residents. City Council Meeting July 31, 2018 Page 4 of 9 Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to approve a noise variance for Washington County for the Third Street reconstruction project. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, and Mayor Kozlowski Nays: None Corey Slagle, Assistant Washington County Engineer, informed the Council that the Osgood Avenue project is behind but progressing. Osgood will be closed Saturday to do water main crossing. Work will be completed this fall. On County Road 5, they do not anticipate having the signal up and running by the start of school as was the goal; it will be turned on later this fall. On Stillwater Boulevard/Olive Street, they will pour more concrete this week on Deer Path and pave the rest of the road next week. Councilmember Junker asked if MnDOT plans to allow parking on the east side of Highway 95 from the Oasis all the way to Sunnyside, as he saw last weekend. Mr. Sanders replied that the no parking signs will be going back up soon. Councilmember Weidner asked if there will be a flashing sign for the pedestrian crosswalk by the Oasis. Mr. Sanders responded not as part of this project but staff can take a look at it. City Administrator McCarty reminded the Council of the August 23 Boards and Commissions Picnic. RECOGNITION OF CITY ATTORNEY MAGNUSON Mayor Kozlowski presented City Attorney Magnuson with a Certificate of Appreciation for more than 40 years of dedicated service. He stated Mr. Magnuson’s contributions to the City are hard to put into words. Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution 2018-169, Certificate of Appreciation to David T. Magnuson upon his retirement effective July 31, 2018. All in favor. Washington County Commissioner Gary Kriesel congratulated Mr. Magnuson on behalf of the Washington County board of commissioners. He commented on Mr. Magnuson’s long illustrious career filled with commitment and service. Nile Kriesel stated that 40 years ago when he was hired as Stillwater City Administrator and he learned that Mr. Magnuson was the City Attorney, it put him at ease. He felt very fortunate to be able to sit next to Mr. Magnuson for 23 1/2 years. He commented on Mr. Magnuson’s professionalism, knowledge of the law, and the application of fairness that he displayed. City Attorney Magnuson stated he has been very lucky to be born into a kind and loving family, to join the Navy after high school, to put himself through law school, to have a loving and supportive wife and three healthy and talented kids. He thanked the City Councilmembers, his colleagues and friends, and everyone who has ever paid real estate taxes over the last 40 years. Motion by Councilmember Junker, seconded by Councilmember Polehna, to adjourn. All in favor. The meeting was recessed at 6:07 p.m. City Council Meeting July 31, 2018 Page 5 of 9 RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:00 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land Police Chief Gannaway Fire Chief Glaser Public Works Director Sanders Community Development Director Turnblad City Clerk Ward PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of the July 17, 2018 regular meeting minutes Motion by Councilmember Weidner, seconded by Councilmember Polehna, to approve the minutes of the July 17, 2018 regular meeting. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Transit Loop Project - Sally Anderson, Executive Director of Community Thread Sally Anderson, Executive Director of Community Thread, addressed the transportation needs of seniors and disabled adults in the community. She stated that DARTS, a nonprofit organization serving seniors and their families in Dakota County, has approached Community Thread about partnering to bring an affordable circulator "loop" to the greater Stillwater community as a pilot project in the fall of 2018. Ms. Anderson explained the proposed service. She stated that Community Thread would like to request $5,000 in City funding for 2019-2020 to help support this service after the pilot year has ended. Councilmembers Menikheim and Polehna expressed support. City Administrator McCarty stated the request has been included in the proposed budget for discussion. City Attorney - Korine Land Mayor Kozlowski introduced Korine Land, LeVander, Gillen & Miller P.A., as the Stillwater City Attorney. City Attorney Land thanked the Council for the opportunity to serve Stillwater. OPEN FORUM Joe Samuelson, 1019 North Second Street, addressed the Council about citations he received for parking in a No Parking Zone while parked in his driveway. He stated that in 1991 he built a new driveway and increased the sidewalk on the west side of his house from 36 to 64 inches at his own City Council Meeting July 31, 2018 Page 6 of 9 cost. He started parking his extended cab truck in the driveway because it would not fit in the garage and was ticketed because it overhung the sidewalk. He believes a wheelchair could still pass. He talked to the police officer, who explained there had been a complaint but he was not allowed to give names of complainants. Mr. Samuelson stated he is concerned that this is only policed under complaint. He could cut the extra inches off the sidewalk to get back down to 44 inches. He does not believe the Police Department should be put in the position of enforcing laws according to grievances. Mayor Kozlowski recognized there’s more sidewalk there than on most streets and that Mr. Samuelson’s vehicle is not blocking the sidewalk. He would like to take into consideration the grievance aspect. Councilmember Weidner remarked that the Police Department is supposed to investigate complaints. He supports the action taken. Councilmember Polehna stated that he agreed with Councilmember Weidner, but feels a warning should have been issued prior to a ticket. Police Chief Gannaway stated the Department generally only issues citations on issues like this upon complaint. They generally try to contact the owner by phone but it’s not always successful. Public Works Director Sanders added that the sidewalk is on City right-of-way, not private property. There is no City policy on sidewalk widths. ADA Requirements say sidewalks should be at least 3 feet wide. Mayor Kozlowski instructed Mr. Samuelson to work with Mr. Sanders on the delineating the sidewalk. CONSENT AGENDA Resolution 2018-161, directing payment of bills Resolution 2018-162, approving of 2018 Forestry Contract Resolution 2018-163, approving No On-Street Parking Zone along portions of South Third Street (County State Aid Highway (CSAH) 23) from East Walnut Street to East Chestnut Street (Project No. S.A.P. 082-623-008) Resolution 2018-164, resolution adopting findings of fact, conclusions and order related to Forge & Foundry Craft Distillery (CPC Case No. 2018-22) Resolution 2018-165, a resolution authorizing the City of Stillwater to participate in the Minnesota GreenStep Cities Program Resolution 2018-166, approving the issuance of a New On-sale and Sunday Liquor License to Restaurant 232, LLC, DBA: Match Stick Possible approval to purchase 2019 Ford 550, plow, dump box and sander Resolution 2018-167, approving the transfer of an On-sale and Sunday Liquor License to Caribbean Smokehouse LLC, DBA: Caribbean Smokehouse Resolution 2018-168, approving three year extension to engagement letter with ClifftonLarsonAllen for provision of audit services and preparation of financial statements for 2018-2020 Councilmember Menikheim requested that Resolution 2018-165 be pulled from the Consent Agenda for discussion. Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt the Consent Agenda as amended. City Council Meeting July 31, 2018 Page 7 of 9 Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None Councilmember Menikheim suggested revising Resolution 2018-165 to add, “will facilitate the public-private partnership of community members. . .” Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt Resolution 2018-165, a resolution authorizing the City of Stillwater to participate in the Minnesota GreenStep Cities Program, as amended. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None PUBLIC HEARINGS A public hearing to consider the 2018 Sidewalk Rehabilitation Project, (Project 2018-03, L.I. 415) Public Works Director Sanders reviewed the 2018 Sidewalk Rehabilitation Project, which includes 44 affected properties at a total estimated cost of $100,268. Fifty percent will be assessed at a rate of $7.95 per square foot. Construction will occur in September and October, with the assessment hearing in October. Mayor Kozlowski opened the public hearing. Cameron Murray, 350 Main Street North, spoke in favor of the project. Mark Desch, 333 Main Street North, asked for clarification about the 50% assessment rate. Mayor Kozlowski closed the public hearing. Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt Resolution 2018- 170, ordering improvement and preparation of plans and specifications for the 2018 Sidewalk Rehabilitation Project, Project 2018-03. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, and Mayor Kozlowski Nays: None UNFINISHED BUSINESS Consider request to delete the condition from the Mills on Main Special Use Permit that requires the commercial parking spaces to be made available to the public during non- business hours Community Development Director Turnblad provided an update on progress of the settlement regarding deleting a condition of the special use permit for the Mills on Main. He anticipates bringing a detailed settlement proposal to the next meeting. Possible approval of plans and specifications and ordering advertisement for bids for the Marylane Drainage Project (Project 2018-08) Public Works Director Sanders stated that this project would improve the drainage in the area east of Marylane Avenue and the backyards of Monterrey Court by adding storm sewer pipe and grading improvements. Staff requests approval of the plans and specifications and authorization to bid. Bid opening is scheduled for August 30 and bid results will be presented to Council at the September 4 meeting. Construction is set for this fall. Councilmember Polehna asked if Brown’s Creek Watershed District is contributing funding for the project. City Council Meeting July 31, 2018 Page 8 of 9 Mr. Sanders stated the Watershed is contributing around $50,000. The City’s engineering estimate was about $250,000 for construction. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Resolution 2018-171, approve plans and specifications and ordering advertisement for bids for the Marylane Drainage Improvement Project (Project 2018-08). Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None Possible approval of plans and specifications and ordering advertisement for bids for the Veterans Memorial Parking Lot Project (Project 2018-12) Public Works Director Sanders stated that construction plans are complete and staff is requesting approval of the plans and specifications and authorization to bid for this project. It replaces an existing geo-grid wall that is failing and eroding. Additional parking stalls will be installed. Bid opening is scheduled for August 30 and bid results will be presented at the September 4 meeting. Construction is set for this fall. Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt Resolution 2018- 172, approve plans and specifications and ordering advertisement for bids for the Veterans Memorial Parking Lot Project (Project 2018-07). Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None NEW BUSINESS Pollinator Friendly Alliance of Stillwater Sign Installation Request Community Development Director Turnblad reported that the City received a DNR Conservation Partners Legacy Fund Grant for the creation of a pollinator park at the southeast corner of the intersection of Laurel and Owens. The Pollinator Friendly Alliance of Stillwater (PFAS) installed a native flower garden, a flowering prairie and a lower prairie garden area to serve as an educational demonstration area for naturalists and citizens. The City agreed to post a Clean Water Land & Legacy Amendment logo sign at access points to each land use covered under this project. PFAS is requesting the installation of an interpretative signage for the site to educate visitors about ecology, and the interrelationship between water, plants, pollinators, and animals, promoting environmental stewardship and habitat. Staff recommends the Council authorize the installation of the sign. Laurie Schneider, Pollinator Friendly Alliance of Stillwater, explained the sign proposal. The sign will be 5’ by 8’. The sign will be at a distance from the sidewalk and pathways and they do not want people trampling the plants to read the sign. The park is a demonstration site for naturalists and schoolchildren to learn about ecology. Councilmember Weidner asked why the sign ca not be smaller and closer to where people are. Ms. Schneider replied that the reservoir is there, preventing placement of a sign. The sign is proposed for an area where it’s out of the way so the prairie can be mowed or control-burned. Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt Resolution 2018-173, City of Stillwater resolution authorizing the installation of a Scenic Area public information sign of 40 square feet at the Pollinator Open Space Area. City Council Meeting July 31, 2018 Page 9 of 9 Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski Nays: Councilmember Weidner COMMUNICATIONS/REQUESTS There were no communications/requests. COUNCIL REQUEST ITEMS ADJOURNMENT Motion by Councilmember Junker, seconded by Councilmember Polehna, to adjourn at 8:08. All in favor. _________________________________ Ted Kozlowski, Mayor ATTEST: ___________________________________ Diane F. Ward, City Clerk Resolution 2018-161, directing payment of bills Resolution 2018-162, approving of 2018 Forestry Contract Resolution 2018-163, approving No On-Street Parking Zone along portions of South Third Street (County State Aid Highway (CSAH) 23) from East Walnut Street to East Chestnut Street (Project No. S.A.P. 082-623-008) Resolution 2018-164, resolution adopting findings of fact, conclusions and order related to Forge & Foundry Craft Distillery (CPC Case No. 2018-22) Resolution 2018-165, a resolution authorizing the City of Stillwater to participate in the Minnesota GreenStep Cities Program Resolution 2018-166, approving the issuance of a New On-sale and Sunday Liquor License to Restaurant 232, LLC, DBA: Match Stick Resolution 2018-167, approving the transfer of an On-sale and Sunday Liquor License to Caribbean Smokehouse LLC, DBA: Caribbean Smokehouse Resolution 2018-168, approving three year extension to engagement letter with ClifftonLarsonAllen for provision of financial audit services and preparation of financial statements for 2018-2020 Resolution 2018-169, Certificate of Appreciation to David T. Magnuson upon his retirement effective July 31, 2018 Resolution 2018-170, ordering improvement and preparation of plans and specifications for the 2018 Sidewalk Rehabilitation Project (Project 2018-03) Resolution 2018-171, approve plans and specifications and ordering advertisement for bids for the Maryland Drainage Improvement Project (Project 2018-08) Resolution 2018-172, approve plans and specifications and ordering advertisement for bids for the Veterans Memorial Parking Lot Improvement Project (Project 2018-07) Resolution 2018-173, City of Stillwater resolution authorizing the installation of a Scenic Area public information sign at the Pollinator Open Space Area EXHIBIT "A" TO RESOLUTION #2018-175 LIST OF BILLS 30 Specialties Inc. Accela Inc Ace Hardware Action Rental Inc. Advance Auto Parts Advanced Sportswear Amano McGann Inc Amsterdam Animal Humane Society Aspen Mills Berger Susan Board of Water Commissioner Bolton and Menk Inc. Brines CalAtlantic Homes Century Power Equipment Cintas Corporation Clifton LarsonAllen LLP Cole Papers Comcast Computer Integration Technologies Core & Main costar Realty Information Inc Coverall of the Twin Cities Cub Foods Curb Masters Inc. Daleo Dolson Katherine ECM Publishers Emergency Automotive Emergency Serv Consulting Inc. Erenberg Sarah Fastenal Company Fire Safety U.S.A. Flaherty & Hood P.A Freds Tire Company Frontier Ag & Turf Galls LLC Gertens Wholesale Goodyear Commercial Tire Gopher State One Call Inc. Greater Stillwater Chamber of Commerce Hardrives Inc. Hassis Yard Services Haussner Plumbing LLC Supplies ESS Annual Maint. Supplies Concrete and mixing trailer Equipment repair supplies Uniforms Tickets & Gate Arm Pens Pound charges Hiviz vests Refund of parking vouchers WAC Charges Professional services Meals Grading Escrow Refunds Equipment repair supplies Uniforms & mat cleaning Professional services Supplies Cable TV IS Developer Supplies Property professional Commercial cleaning services Cake Concrete repair Janitorial supplies Park Fee Refund Publications Vehicle outfitting Consulting Reimburse for expenses Supplies Compressor service Classification & compensation Tube Equipment repair supplies Uniforms & supplies Mulch Tires Locates Celebration of the St. Croix 2018 Street Project Mowing service Drinking fountain parts Page 1 4,531.40 1,044.18 447.73 385.00 368.54 684.00 1,202.00 1,034.50 374.00 1,615.86 94.50 5,148.00 2,405.00 346.95 7,500.00 689 .60 654.99 4,000.00 0.08 49.39 1,894.00 29.52 376.83 540.00 50.46 22,698.89 612.34 85.00 359.35 7,133 .84 1,179.00 34 .24 45.06 1,642.22 781.25 6.95 378.48 397.38 1,842.70 954.20 625.05 40.00 692,219.21 150.00 425.00 EXHIBIT "A" TO RESOLUTION #2018-175 Heritage Printing Inc. Hoisington Koegler Group Inc Holiday Companies Jefferson Fire and Safety Inc. Johnson Lacey Johnson Controls Fire Protection LP Junker Brad Kelly & Lemmons PA Kowalski's Market L.T.G .Power Landscape Research LLC League of MN Cities Ins Tr Levander Gillen & Miller PA Loffler Companies Madden Galanter Hansen LLP Mansfield Oil Company Marshall Electric Company Menards Metropolitan Council Minnesota Occupational Health Minnesota Turf & Grounds Foundation MP Nexlevel LLC MTI Distributing Municode NELCOM Wireless Comm. Nuss Truck & Equipment Office Depot OnSite Sanitation O'Reilly Auto Parts Peterson Austin Pioneer Rim and Wheel Co. Quill Corporation RDO EQUIPMENT CO. Rehn Code Consulting Services Robole Donna Safe Fast Inc SiteOne Landscape Supply St. Croix Boat and Packet Co. Stillwater and Oak Park Heights CVB Stillwater Gazette Stillwater Motor Company Stillwater Towing Streichers Summit Companies SW/WC Service Cooperatives TBEI lnc/Crysteel Manufacturing Tennant Sales & Service Co. Notices Professional services Vehicle washes Equipment Refund of parking fees Alarm labor & sensors Reimburse for expenses Prosecution Meals for elections Equipment repair supplies Professional services Quarterly Municipality Insurance Professional services Professional services & equipment Labor Relations Services Fuel Electrical repair Supplies Wastewater Charge & SAC Drug test MTGF Field Day Locating Tire Code pages Siren repair Equipment repair supplies Office supplies Portable Restroom Equipment repair supplies Reimburse for Narcan case Equipment repair supplies Office supplies Equipment repair supplies Plan review Reimburse for expenses Supplies Supplies Dock Space Lease Qtrly Lodging Tax Subscription Equipment repair supplies & service Towing service Drug test kit Inspection Retiree & COBRA Health Insurance Equipment repair supplies Equipment repair supplies Page 2 539.00 14,239.05 460.00 505.23 18.00 876.83 180.99 2,170.00 821.64 89.06 7,631.00 68,965.00 3,125.00 9,640.54 1,048.66 9,449.08 2,086.00 158.44 158,639.63 208.20 105.00 1,527.50 333.42 970.40 1,320.20 732.76 95.37 1,248.92 101.86 27.99 86 .98 900.59 144.25 10,283.57 560.25 296.25 21.18 2,666.67 57,196.37 42.00 4,270.78 100.00 189.93 1,115.00 80,901.12 550.00 25.15 EXHIBIT "A" TO RESOLUTION #2018-175 Thomson Reuters Thoren Dawn TKDA Toll Gas and Welding Supply Tri-State Bobcat US Bank Voyant Communications Washington County License Center Water Works Irrigation LLC Wenck Construction Wisner Michael Wold Architects and Engineers Woodchuck Tree Care LLC WSB & Associates Inc. Wulfing David Zep Sales & Service REC CENTER 1ST Line/Leewes Ventures LLC Ace Hardware Arrow Sports Group ASCAP A-Z Restaurant Equipment Becker Arena Products Cintas Corporation Coca-Cola Distribution Comcast ECM Publishers Grandstay Hotel & Suites HDR Architecture Heritage Printing Inc. Hodges Badge Co Inc Ice Skating Institute Menards MN Dept of Labor and Industry Pepsi Beverages Company Riedell Shoes Inc. Sentry Systems Inc. St. Croix Boat and Packet Co. Titan Energy Systems Twin Cities Dots & Pop United Rentals North America Vic's Crane & Heavy Haul Inc. Information Charges Reimburse for shipping Marylane Drainage Cylinders Equipment repair supplies & equipment Paying agent fees Phone License renewal Irrigation City Hall Project Reimburse for work boots City Hall Project Remove logs and debris Veteran's Memorial Park Improvements Reimburse for dog boarding Zep o Shine Snacks for concessions Equipment repair supplies Concession supplies Music License Cooler Equipment repair supplies Mat cleaning service Beverages for concessions Internet St. Croix Rec Center Bids Refund of duplicate payment Rec Center Dome Project Business cards Supplies Skater memberships Supplies Boiler license Beverages for concessions Skates Alarm monitoring Arena billing Generator service Treats for concessions Bleacher heat Hoist to roof Page 3 141.94 24.70 9,552.25 134.27 3,043.88 500 .00 529.79 54 .50 3,000.00 5,100 .00 134.84 5,174 .88 1,100.00 1,220.25 144.00 251.95 846.80 91.31 676.87 12 .25 1,694.00 817.92 257.50 1,061.28 109.85 87.00 800.00 33,577.64 69.25 808.38 15.00 414.97 10.00 499.99 831.09 140.85 32,303.08 924.00 955.20 1,752.80 1,017.50 EXHIBIT "A" TO RESOLUTION #2018-175 CREDIT CARD Amazon.com B&H Photo Backgroundchecks.com BCA Training & Auditing Ferguson Enterprises Inc. #1657 Holiday Inn St. Cloud MN State Colleges & Univ. National Asso. of School Resource Officers St. Croix River Assn Stillwater Post Office Wolf Marine Inc. LIBRARY Ace Hardware Brodart Co CDW Government Inc. Cintas Corporation Cole Papers Culligan of Stillwater Demeo Inc. Floyd Total Security Friends of the Stillwater Public Library lnfogroup lnfogroup MEI Total Elevator Solutions Menards Midwest Tape Office of MN IT Services Recorded Books Inc Reyers Mariah E. Thorager Natasha Toshiba Business Solutions LIBRARY CREDIT CARDS Amazon.com JULY MANUALS Bridgewater Bank CDW Government Cummins Grainger Supplies Charger for radar unit Back ground checks Training Drinking fountain LMC Conference housing CPR renewal Training NEMO workshop registration Shipping Fuel Janitorial Supplies Materials AV Upgrade Capital Project Mat & towel cleaning service Janitorial Supplies Water Library Supplies Security Monitoring June Friends Sale Reimbursements Materials Materials Monthly Service Janitorial Supplies Materials June Phone Materials Programs Programs Maintenance Contract Supplies Curve Crest Villas Equipment Repair Supplies Page 4 553.04 39.95 200.70 450.00 1,192.86 209.50 25.00 485.00 20.00 28.18 121 .61 114.84 4,813.65 1,413.60 69.84 343.46 41.85 152.00 168.12 388.50 390.00 620 .00 126.26 17.12 2,246.59 138.50 19.98 90.00 60.00 121.28 233.49 14,853.13 2,966.21 794.80 44.68 EXHIBIT "A" TO RESOLUTION #2018-175 Page 5 Johnson Controls Fire Protection Library ramp 511.00 Lake Elmo Bank Curve Crest Villas 14,853.13 Long Lake Villas Ltd Partnership Long Lake Villas 25,161.20 Newman Signs Punch Radius 1,496.40 Pfister Richard H Long Lake Villas 9,386.77 Pinnacle Building Services Window cleaning 775.00 Postmaster Utility Billing Postage 2,836.32 Toshiba Business Solutions Maint Contract 181.96 United States Treasury PCORI Tax 553 .70 Xcel Energy Energy 28,124.79 Memo DATE: TO: FROM: RE: August 1, 2018 Mayor and City Council Sharon Harrison, Finance DirectorU~ 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 1st 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 1st 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 (3rd 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 Staffs 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 Water heater leak From 51,000 3rd To 13 ,000 2 Leaking Toilet From 25,000 3rd To 9,000 STAFF REQUEST ITEM I Department: MIS I Date: 8/17/18 DESCRIPTION OF REQUEST (Briefly outline what the request is) Purchase of upgrade to the server/software and the Bravo DVD burner used for the L3 squad car video . The current system was purchased 7 years ago and needs to be upgraded. FINANCIAL IMPACT (Briefly outline the costs, if any, that are associated with this request and the proposed source of the funds needed to fund the request) Money for this system was not allocated in 2018. However, funds are available in the Forfeiture account for this and from salary savings. Part of the cost is for purchased services that can be paid of the General OS budget. Total cost of the project is $6561.00. ADDITIONAL INFORMATION ATTACHED Yes X No --- ALL COUNCIL REQUEST ITEMS MUST BE SUBMITTED TO THE CITY CLERK A MINIMUM OF FIVE WORKING DAYS PRIOR TO THE NEXT REGULARLY SCHEDULED COUNCIL MEETING IN ORDER TO BE PLACED IN THE COUNCIL MATERIAL PACKET . I Submitted by: Rose Holman I Date: 8/17/18 ~ !) Mobile-Vision, Inc. QUOTE 400 Commons Way, Rockaway , NJ 07866 T 973-453-8562 F 973-257-3024 I sold To Stillwater Police Department Rich Bornt 216 North 4th Street Stillwater, MN 55082 Phone 651-430-8811 Fax ~hip To Number Date Stillwater Police Department Rich Bornt 216 North 4th Street Stillwater, MN 55082 Phone 651-430-8811 Fax 210332316 July 26, 2018 L Salesperson P.O. Number Ship Via Terms Mark Higgins None 8 Qty ! SKU I Desc_r,_·p_t_io_n_ -----~-Unit Price] Ext.Price Comm_e_n_t_s __ -_-_-_-_-_-_=i_- 1 PRIM4201DISCR Bravo 4201 Disc Publisher. Input capacity: 100. Number of Drives : 1, Ink cartidge : 1 CMY , Resolution : Up to 4800 dpi , Table mount. Accessories included : PTPublisher Software for PC and Mac. One tri-color ink cartridge and two Tuffcoat© sample discs (CD/DVD). Kiosk Kit for front dispensing of up to 100 discs . One hotswap and year standard warranty. Does not include a work station . 2 MVD-DES-BTO-EOL OS/DES SWR Installation on EOL Servers & Data Migration 3 MVD-DES-BTO-CPE Installation of Operating System and DES Application on Customer Provided Equipment 4 MVD-TRAN-OPS On site professional services 5 MVD-TRAN-RPS Remote professional services $3,035.25 $3,035 .25 $750 .00 $0 .00 $750 .00 $0 .00 $2 ,125.00 $2 ,125.00 $1,000.00 $1,000.00 Quotation is valid for 60 days from date issued The technology described herein ,s control led under the Expor1 Administration Regulation (EAR) and may not be exported without proper authorization by the U.S Department of Commerce State/Local Fees and Taxes are not incl uded 07/26/2018 2:54 pm Page 1 of 2 ~ !) Mobile-Vision, Inc. 400 Commons Way, Rockaway NJ 07866 QUOTE T 973-453-8562 F 973-257-3024 Backup Workstation v4.x w/Bravo DVD Burners Recommended Number Date 0 Hardware: Intel i3 2120 processor, 4 GB RAM, 3.0 Gbps 250 GB hard disk o OS: Windows 10 Professional. VM Configuration Requirements for DES This document addresses minimum requirements for a starting VM environment with the Digital Evidence Server or AlertVu Server. This is based on theoretical and empirical data, but ultimately client usage will determine the need for additional resources From an application perspective, the goal is to keep vehicle download performance as its maximum while keeping user web page load response time below 5 seconds. If performance is below standards and needs to be increased, i.e ., page loads need to be faster, the addition of processors to the VM is required. Realize that these VM configurations are starting points and more resources will need to be added over time to keep acceptable performance. Requirements Below is a list of technical assumptions that the VM will need to provide . 1. MVI recommends VMWare's ESXi virtualization product on both DES and AlertVu server products. 2. MVI recommends HyperV virtualization product on DES only . 3. Each VM processor needs to be equivalent to a core from an Intel® Xeon® Silver 4110. If processors are of less than specified, more processors will need to be allocated to meet the total aggregate requirements below . 4. Virtual NIC Adapter Type recommended being VMXNET 3. 5. The boot drive will need to be a minimum of 500GB . 6. MVI will provide a standard Kick Start configuration to install Linux partitioned based on application heeds . 7. Video Storage is preferred to be a block device that can be mounted on boot partition . The device will be formatted as ext3 file system. 8. Alternately, the second choice for video storage is a NAS. On a NAS, the preferred file system is NFS. CIFS is not supported. A SAN is also supported . It needs to be either NFS or iSCSI. In either case, the NAS/SAN documentation must explicitly state it supports the version of Linux installed on the server. 9. No matter the file storage choice above, there must be a minimum of two file systems (discs/mount points) for load balancing and maintenance. 10. File System performance can have significant effect on the speed of the downloading video from the vehicles. We recommend as fast as possible sustained write throughput as this is the most important feature. A minimum access speed would be 4Gbps. No additional resources can overcome slow disk writes . Minimum Configurations Less than 20 Vehicles 1. Standard boot image 2 . 6 VM Processors, 3 Reserved 3 . 8GB of RAM. 4GB Reserved 4 . Stora e to meet needs Signing below is in lieu of a formal Purchase Order. SubTotal Your signature will authorize acceptance of both pricing and product: Tax S&H Signed: ---------------Dated: Total ---- 210332316 July 26, 2018 6,160.25 TBD 50.00 ~0.25 L-3 Shipping Terms are FOB Rockaway, NJ. By signing below you agree to waive your shipping terms and ship this order FOB Rockaway, NJ. Signed : ---------------Dated: -}1t'?_)S o ~ LA~ 6 piv1J1 ~ ':,1-;?)+uM u )2~ Quotation is valid for 60 days from date issued The technology described herein is controlled under the ExpOli Administration Reguiation (EAR) and may not be exported without proper authorization by the U S Department of Commerce State/Locai Fees and Taxes are not included 07/26/2018 2:54 pm Page 2 of 2 RESOLUTION 2018-176 APPROVING REVISED PURCHASING POLICY WHEREAS, at the direction of the City Council, staff has completed a comprehensive review of the City Purchasing Policy and recommends City Council approval of a revised City Purchasing Policy reflecting changes to the approval process for budgeted capital items, removes obsolete lan- guage, clarifies the approval process for payment of invoices and identifies authorized signers for invoices and payroll time sheets; and WHEREAS, City Council received the updated Purchasing Policy on August 21, 2018. NOW THEREFORE BE IT RESOLVED that the City Council hereby adopts the City of Stillwater Purchasing Policy dated August 21, 2018. Adopted by the City Council of the City of Stillwater, Minnesota this 21st day of August, 2018. Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk Page 2 of 6 CITY OF STILLWATER PURCHASING POLICY August 21, 2018 1. POLICY. 1.1 The City of Stillwater budget, as adopted for each year, allocates funds for the purchase of supplies, goods and services, contractual and consulting services, other services and capital outlay items. Requests cannot be made for items out- side the budget except under special circumstances. These special circumstances will have to be approved by the City Council upon recommendation of the City Administrator. The Purchasing Agent is the City Administrator. 1.2 All budgeted Capital Outlay purchases in excess of $50,000 must be approved by the City Council prior to purchase. All budgeted Capital Outlay purchases up to $50,000 must be preapproved by the City Administrator. Any item changes listed in the approved Capital Outlay Budget must be authorized by the City Council. Capital Outlay purchases consist of computer equipment with a cost of more than $500 and all other assets with a cost of $1,000 or more that have a useful life of greater than one (1) year. 1.3 All budgeted purchases shall be submitted for review by the City Council and pro- vided in the regular meeting packets. 1.4 All purchases and charges must be approved for payment by the appropriate De- partment Head or designee. 2. DEPARTMENTS AFFECTED: All Departments. 3. PURCHASING PROCEDURE: 3.1 Purchase Requirements: Amount of Purchase Type of quote required Approval re- quired by Written bid specifications Sealed bids required Contract required Invoice re- quired Purchases up to $1,000 Not Required City Clerk Asst. Public Works Supt. Police Capt. Deputy Fire Chief IT Manager Not Required No No Yes Page 3 of 6 Amount of Purchase Type of quote required Approval re- quired by Written bid specifications Sealed bids required Contract required Invoice re- quired Purchases $1,000 up to $5,000 At least two written quotes required unless special circum- stances are noted Department Heads As required based on type of purchase No As re- quired based on type of purchase Yes; signed by Depart- ment Head/Au- thorized Signer Purchases over $5,000 up to $50,000 At least three written quotes required unless special circum- stances are noted. City Admin- istrator As required based on type of purchase. As re- quired based on the type of purchase Con- struction projects yes; com- modities at dis- cretion of City Adminis- trator Yes, except for certain construction projects; signed by City Adminis- trator or Dep- uty Treasurer Purchases over $50,000 up to $100,000175,000 At least three written quotes required unless special circum- stances are noted. City Council As required based on type of purchase. As re- quired based on the type of purchase Con- struction projects yes; com- modities at dis- cretion of City Adminis- trator Yes, except for certain construction projects; signed by City Adminis- trator or Dep- uty Treasurer Purchases greater than $100,000175,000 City Clerk must advertise in City’s legal newspaper City Council Required. Yes Yes Yes, except for certain construction projects (i.e., Local Imp.); signed by City Admin. or Deputy Treasurer 3.2 Bidding Requirements: 3.2.1 When supplies or equipment are competitive in nature, specifications can- not exclude all but one type of equipment or supplies. Proposals and spec- ifications must allow free and full competition. Bidding requirements can- not be avoided by splitting a contract into several contracts, each of which is below the minimum amount requiring sealed bids. For example, the City cannot purchase $30,000 of lumber in several transactions, each involving an expenditure of less than $25,000. However, if materials or work logi- Page 4 of 6 cally fall into two separate contracts because they involve separate trans- actions, as for the service of contractors specializing in different kinds of work, the City can negotiate the contracts individually without sealed bids if the bids do not exceed the $25,000 minimum. 3.2.2 Sealed bids are required for purchases exceeding $100,000. $175,00 The bids must be advertised by the City Clerk in the City’s legal newspaper (Notice to Bidders) and publicly opened and approved by Council resolu- tion. In addition to the legal notice, the City must prepare instructions to bidders and general specifications for sealed bids. Attaching a copy of the proposed contract to the instructions to bidders is required. 3.2.3 Bid security in the amount of ten percent (10%) of the bid (for sealed bids for purchases over $100,000175,000) shall be submitted to the City Clerk. The bid security guarantees that in the event the bidder’s offer is accepted, the bidder will enter into a contract in accordance with the proposal. Bid security of the successful bidder will be returned upon execution of the contract documents. Bid securities of unsuccessful bidders will be re- turned within a reasonable time period (Minnesota Statute §574.27). Fail- ure of the successful bidder to execute the Contract and furnish applicable bonds within ten (10) days after receiving written notice of the award shall cause the bid security to be forfeited as liquidated damages to the City. In the event the successful bidder fails to execute the contract, the City Council may award the contract to the next lower competent bidder unless the Council determines that public interest will be better served by accepting a higher bid, or the contract may be re- advertised. 3.2.4 Municipal contracting law requires that bids must be awarded to the low- est responsible bidder. It should be noted that the bidder who submits the lowest bid in dollars is not necessarily the “lowest responsible bidder” and the quoted phrase gives the Council reasonable discretion in choosing among bidders. Responsibility, in bid statutes, means not only financial responsibility but also integrity, skill, and the likelihood that the bidder will perform faithful and satisfactory work. 4. APPROVAL OF GOODS /SERVICES AND AUTHORIZATION OF PAYMENT 4.1 Upon receipt of the invoice the Department Head/Designee shall: Write “OK to Pay” and initial the invoice; Attach a copy of the quote; Code to the appropriate account; Charging a purchase to a different account because funds do not exist in the correct account or the account is over budget is Not Allowed. (i.e. Office supply budget is depleted, but copy paper is needed – the invoice still must be coded and charged to the Office Supply account.) Page 5 of 6 Submit to the Finance Department. Invoices and supporting documenta- tion will be scanned in the City’s Record Management System and re- tained according to the City’s Record Retention schedule. 4.2 Finance shall review the invoice for correctness and compliance with the City purchasing policy and include the payment on the list of bills for Council approval in a timely manner and then files the invoice and payment (check) accordingly. Note: IC 134 forms are required before the City can make final payment for con- struction contracts. 4.3 The City Council shall appoint a Deputy Treasurer. The Deputy Treasure shall be authorized to approve and sign purchases in the absence of the City Administra- tor and shall follow the policy and procedures set forth herein. 4.4 Department Heads shall designate, in writing, employees within their respective departments that are authorized to issue and sign invoices for the Department. The Department Heads shall be responsible for ensuring that the designated per- son knows and understands the City’s purchasing policy and that the designee acts in accordance with the policy. 5. RECREATION FACILITIES MANAGER 5.1 The Recreation Facilities Manager shall be authorized to make purchases pro- vided that the Manager follows the same procedures as stated above. 6. EMERGENCY PURCHASES (Pursuant To Resolution 2011-33 Adopted February 15, 2011) 6.1 During a disaster or emergency the Mayor and /or the City Administrator may enter into contracts or incur obligations necessary to combat the emergency or disaster by protecting the health and safety of persons and property. The City Administrator may forego time – consuming procedures and formalities as it relates to entering into contracts, incurring obligations, employment of tem- porary workers, rental of equipment and purchasing of supplies and materi- als. 6.2 Approval of all contracts must be subsequently ratified by the City Council at their next meeting. Page 6 of 6 APPENDIX A: Authorized Signers for Invoices and Payroll Timesheets Please note that Department Head approval is required on all purchases. City Administrator or Deputy Treasurer approval is required on all purchases of $1,000 or more. Please review the City’s Purchasing Policy if you have questions regarding the approval process. ACCOUNTS PAYABLE Department Authorized Signer Authorized Back-Up Signer Administration City Administrator/City Clerk Acting City Administrator Building Inspections Comm. Dev. Director Building Official Elections City Clerk City Administrator Engineering PW Director* Asst. City Engineer* (*also authorized to sign contracts and grading deposits) Finance Finance Director Asst. Finance Director Fire Fire Chief Asst. Fire Chief Human Resources Human Resources Manager City Administrator Library Library Director Asst. Library Director MIS IS Manager City Administrator Community Development Comm. Dev. Director Planner Plant/City Hall City Administrator/City Clerk Acting City Administrator Plant/Library Library Director Asst. Library Director Police Police Chief Police Captain Public Works (all areas) PW Superintendent Asst. Superintendent/PW Director Recreation Center City Administrator Acting City Administrator PAYROLL TIMESHEETS Department/Classification Authorized Signer Authorized Back-Up Signer City Administrator (Initialed by City Clerk) (Initialed by Finance Director) Administration City Clerk City Administrator/Acting City Administrator Building Inspection Comm. Dev. Director Building Official Department Heads/Managers City Administrator Acting City Administrator Engineering Technicians PW Director City Administrator Engineering (non-Techs) PW Director City Administrator Finance Finance Director Assistant Finance Director Fire Fire Chief Asst. Fire Chief MIS IS Manager City Administrator Planning Comm. Dev. Director Planner Plant/Library Library Director Asst. Library DirectorBusiness & Communcia- tions Manager Police Police Captain Police Chief Public Works (all areas) PW Superintendent Asst. PW Superintendent/PW Director CITY COUNCIL DATE: August 17, 2018 CASE NO.: 2018-11 APPLICANT: Patrick Juetten, Chief Manager, Stillwater Mills Commercial Partners REQUEST: Amendment to Special Use Permit Stillwater Mills on Main REPORT FROM: Bill Turnblad, Community Development Director INTRODUCTION On May 1, 2018 the Council heard a request by the owner of the commercial garage in the Mills on Main facility to delete Condition 6(J) of their Special Use Permit (Resolution 2003-214). Condition 6(J) states that all commercial parking is to be available for use by the general public during the hours when the commercial properties are not open for business. The City Council held a public hearing, heard testimony, closed the public hearing, and considered the request. But, a decision was tabled to give time for the owner to work with city staff to find a solution other than simply deleting the condition. The primary solution sought has been to negotiate with Hotel Lora to valet park their room guest’s vehicles in the Mills on Main commercial garage rather than in the public parking system. However, Hotel Lora was not interested. Consequently, there is no solution being contemplated at the moment other than a payment to mitigate loss of access to the spaces by the public. ACTION DEADLINE The decision deadline for this request has been extended by the applicant to September 12, 2018. ALTERNATIVES The City Council has several alternative actions available. A. Approve the request to delete Condition 6 (j) of Special Use Permit Resolution 2003- 214. Page 2 of 2 B. Approve the request to delete Condition 6 (j) of Special Use Permit Resolution 2003- 214, but require a payment to mitigate the loss of public access to the garage. C. Deny the request. D. Table the request for more information. bt attachment: May 1, 2018 Council Minutes 4/26/18 Report City Council Meeting May 1, 2018 512: Regulation of Radio and Television Towers. The aforementioned Case will also affect City Code Section 22-7 Heritage Preservation Commission and Chapter 24 Streets, Alleys and Public Property. City Administrator McCarty requested that the public hearing be tabled to the May 15, 2018 meeting. Mayor Kozlowski opened the public hearing. Motion by Councilmember Menikheim, seconded by Councilmember Junker, to table to May 15, 2018 the public hearing to consider a request by the City of Stillwater, applicant, for the consideration of a Zoning Text Amendment (ZAT) to regulate wireless facilities in City Code Section 31-101: Definitions, 31-209: Design Permit, 31-400: Floodplain Overlay District, and Section 31-512: Regulation of Radio and Television Towers. All in favor. Case No. 2018-11. A public hearing to consider a request by Stillwater Mills Commercial Partners, LLC, property owner and Patrick Juetten, applicant, for the consideration of a Conditional Use Permit amendment (2003-83) to remove the condition requiring public use of the commercial parking garage after business hours and on weekends for the property located at 350 Main Street North in the CBD district. PID 2803020130183. Community Development Director Tumblad stated that in November 2003, the City Council approved a Special Use Permit for Stillwater Mills on Main, which included Condition 6(J) requiring that all commercial parking be available for use by the general public during the hours when the commercial properties are not open for business. The 72-space commercial parking area is located on the ground level of the parking garage. The parking area for the condominium residents is separated from the commercial parking area and has a separate entrance. The 72 commercial spaces have not been made available to the general public after hours as required in Condition 6(J). When this condition was brought to the attention of the current representative for the Mills on Main commercial property owners, he stated that his group acquired the property through foreclosure and the condition was not disclosed to them. City staff explained that either the 72 spaces would have to be made available to the general public after hours, or the owner would have to request that the City Council delete Condition 6(J) from the Special Use Permit. Patrick Juetten, Chief Manager of Stillwater Mills Commercial Partners, has submitted an application requesting deletion of Condition 6(J) from Special Use Permit Resolution 2003-241. Mr. Tumblad stated that the City has received numerous emails from residents of Stillwater Mills on Main supporting the removal of the condition. The Downtown Parking Commission on April 19, 2018 unanimously recommended removing the condition because 1) public parking improvements have been made in the immediate neighborhood of the Mills on Main facility; 2) the project meets or exceeds all of its parking requirements; and 3) no parking mitigation was required. Councilmember Weidner asked, if it was required to be open to the public, why wasn't it built as such? Mr. Tumblad stated the parking garage was built per the design that was approved by the Council. Mayor Kozlowski opened the public hearing. Patrick Juetten, Manager of Stillwater Mills Commercial Partnership, which owns the leasable office space and the commercial garage at 350 Main Street, stated his company purchased the property from two different owners and re-parceled it back under one ownership structure in 2012. He was given no information from the sellers as to public use of the parking garage. As of today the commercial space is 100% leased to two tenants. He stated he first became aware of the public Page 5 of 10 City Council Meeting May 1, 2018 parking condition about 16 months ago when the Crosby Hotel proposal came forward. The garage is taxed as a separate parcel at approximately $6,500 a year. Mr. Juetten further stated it is a competitive advantage to have exclusive parking for the commercial businesses. They have 54 out of the 72 stalls. The extra stalls that are not used for business are available to the residents for guests, essentially taking cars off the street. If RBC continues to expand, they may require the remainder of the parking. He asked to delete this condition because the garage is not designed for public use. It is an L shaped, dead-end garage with small automatic doors, lots of sharp corners, recesses for electrical, and one entrance and one exit. He expressed concerns about the potential for crime with public use, because it is heated in winter and has no windows. He added that the concrete post beam building was built to support load structures above, but was not designed to support impact into the posts. He has not found this type of arrangement in any other building downtown. If the condition is enforced, he will see an increase in costs for maintenance and upkeep. Pay machines and a surveillance system would cost about $250,000 or about $83,000 out of pocket annually to accommodate this provision. They would have to charge $15-20 for two- hour use to break even. Dave Luth, 350 Main Street North, President of Stillwater Mills on Main Homeowners' Association, spoke for residents of the 92 homes. He presented concerns about the City's intent to enforce the requirement about public parking. He summarized residents' concerns about security, guest parking, impact on residences and public bathrooms. He asked the Council to approve the request to delete the condition. Dennis Moline, 350 Main St., Unit 348, Vice President of the Board, representing the Homeowners' Association, discussed the layout, security and safety of the garage and the vulnerability of building security. He explained several scenarios that could happen: vandalism to mechanical, water supply, sewage system, fire suppression system, and most importantly, gas lines that run the entire length of the garage. Someone could come in with a truck with a cutting logging chain and vandalize the gas lines, causing an explosion that would take out the whole front of the building and damage surrounding buildings. Mr. Moline asked the Council to amend the Conditional Use Permit to remove the condition. Jerry Regan, resident of Unit 318, stated that the original building plans were approved as part of the CUP. The City should have some responsibility for telling the original developer to redo the public parking if it was to be public parking. He feels that public safety demands that it not be public parking because it will become an attractive nuisance to people who want to get out of the cold weather. People have been accosted in public parking lots. He feels it is not in the interest of public safety to allow the space to be open to the public at all hours of the day. George Nelson, resident of Unit 456, stated that the new owners were not aware of the condition. The property is fully developed and 100% occupied, is a lovely place to live and a great asset to the City. Without eliminating the requirement, the City has the potential of destroying the residents' lives. Mayor Kozlowski closed the public hearing. Councilmember Junker stated that he was on the City Council when Mills, Terra Springs and the Lofts were developed. They were controversial because downtown condos were new to Stillwater. He thinks that the original developer came to the City and offered that the public could park in the garage when the businesses were not operating to eliminate some of the concerns about the building of the condos. In hindsight, the condition should not have been included. The commercial businesses bring clients to downtown Stillwater 365 days a year and take parking pressure off Page 6 of 10 City Council Meeting May 1, 2018 Main Street. Councilmember Junker recalled when he managed US Bank in downtown Stillwater for about 10 years, they opened the parking stalls under the bank to the public on nights and weekends and one year later they had to install a gate due to the damage from graffiti and vandalism. Councilmember Weidner stated he views it as a condition that existed when the property owners purchased the property, including the commercial side. He feels the condition should remain and how the property owners tum it into a public parking lot is their decision. After comments from the audience, Mayor Kozlowski reminded the audience that the public hearing is closed. Councilmember Menikheim commented this is the first he has heard about the issue. He questions what problem the Council is trying to solve by denying the request. He agrees with Councilmember Junker and supports eliminating the condition. Councilmember Polehna noted he is tom. He understands the safety concerns. He called the City's previous development director who reminded him the condos were supposed to include a public bathroom, but did not. He would prefer a compromise. He is not willing to totally delete the condition tonight, but would like to sit down and talk with the property owners. After comments from the audience, Mayor Kozlowski again reminded them the public hearing is closed. Mayor Kozlowski stated he feels similar to Councilmember Polehna. He recognized the garage is not equipped for public parking. In his time on the Council, he has seen numerous developers come in, list a bunch of things they are going to do for residents, and then swiftly forget all of them. He sees the Council's job is to hold the developers to these conditions. He is not willing to give up the public parking without first meeting with property owners and coming to an agreement. He recognized that anybody could drive into the building during the day and do the sort of damage that worries the residents about night and weekend parking. He feels the residents should consider themselves lucky that this issue is just coming up now and they have not had to deal with this for 14 years. Mayor Kozlowski reminded the audience the public hearing is closed. Motion by Councilmember Polehna, seconded by Councilmember Junker, to table the request by Stillwater Mills Commercial Partners, LLC, property owner and Patrick Juetten, applicant, for the consideration of a Conditional Use Permit amendment (2003-83) to remove the condition requiring public use of the commercial parking garage after business hours and on weekends for the property located at 350 Main Street North in the CBD District, and to meet with the owner of the building and possibly with homeowners to try to work out an agreement. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker and Polehna Nays: Councilmember Weidner UNFINISHED BUSINESS Discussion on Ordinance amendment to allow outside events in PA, Public/Institutional Zoning District Community Development Director Tumblad presented the first draft of an ordinance that would add the PA, Public/Institutional Zoning District to the list of districts that allow outside events with a Special Use Permit. The BP-I, Business Park -Industrial Zoning District was also added Page 7 of 10 CITY COUNCIL DATE: April 26, 2018 PLANNING CASE NO.: 2018-11 APPLICANT: Patrick Juetten, Chief Manager, Stillwater Mills Commercial Partners REQUEST: Amendment to Special Use Permit for Stillwater Mills on Main REPORT FROM: Bill Turnblad, Community Development Director INTRODUCTION On November 18, 2003 the City Council approved a Special Use Permit for Stillwater Mills on Main (Resolution 2003-214, attached). Condition 6(J) of the Special Use Permit Resolution states that all commercial parking is to be available for use by the general public during the hours when the commercial properties are not open for business. The commercial parking area with its 73 spaces is located on the ground level of the parking garage. The parking area for the condominium residents is separated from the commercial parking area and has a separate entrance. The 196 residential spaces are located both on the ground level to the west of the commercial parking and on the lower level of the garage. (See the attached garage floor plans.) It is the 73 commercial spaces that are the subject of Condition 6(J). The 73 commercial spaces have not been made available to the general public after hours as required in Condition 6(J). When this condition was brought to the attention of the representative for the Mills on Main commercial property owners, he mentioned that the developer and the original owner of the commercial space likely knew of the condition, but that his group acquired the property through foreclosure and the condition was not disclosed to them. City staff explained that either the 73 spaces would have to be made available to the general public after hours, or the owner would have to request that the City Council delete Condition 6(J) from the Special Use Permit. REQUEST Patrick Juetten, Chief Manager of the Stillwater Mills Commercial Partners (owners of the commercial space) has submitted an application to the City requesting deletion of Condition 6(J) from Special Use Permit Resolution 2003-241. Page 2 of 4 BACKGROUND 1. The Heritage Preservation Commission reviewed the design of the building as case DR 2003-63. a. The Heritage Preservation Commission (HPC) meeting was held on October 6, 2003. b. The planning staff recommended to the HPC that the commercial parking garage be made available to the general public after business hours and on weekends. The reason for the recommendation, confirmed during a phone conversation with the previous Community Development Director, was that any time more public parking could be made available Downtown, it had been incorporated into projects to reduce the pressure on the public parking system. The recommended condition was accepted by the HPC and included in the HPC Design Review Permit. c. The developer did not object to the condition, according to the previous Community Development Director and to the written record. 2. The Planning Commission reviewed the project as Case 2003-83. a. The Planning Commission meeting was held on October 13, 2003. b. The Planning Commission report states that the proposed parking for both the residential units and the commercial space met City parking requirements. No variance or parking mitigation plan was necessary. c. The Planning Commission denied the Special Use Permit (for reasons that were not associated with parking). d. The developers appealed the denial to the City Council. 3. The City Council heard the case on appeal on November 18, 2003. a. Since appeal cases are heard de novo, the plans were allowed to be different than those that were reviewed by either the Planning Commission or the Heritage Preservation Commission. So, the developer changed the plans to address some of the concerns expressed by the commissions. b. The City Council approved the Special Use Permit per Resolution 2003-241, which included the HPC condition on general public access to the commercial garage after business hours. COMMENTS Many of the residents in Mills on Main have submitted letters and emails (attached) advocating for the deletion of Condition 6(J). The reasons stated for their position include: 1. Security issues associated with keeping private lobby open to the general public after hours. This gives access not only to the lobby, but also an elevator and mail room that serves the residential portion of the facility. And, since there is no service door to give direct access to the garage for public use, public users of the commercial garage would have to go through the lobby. 2. Increased cost to commercial property owners and tenants due to excessive wear and vandalism to the garage caused by the general public. Page 3 of 4 3. Increased cost to condo residents for cleaning up lobby after the public and maintaining the lobby furnishings and decorations. 4. Vandalism of private lobby, vehicles in the garage, and garage equipment. 5. Personal safety issues related to introducing general public into private spaces. 6. Space would become attractive to homeless people. 7. Guests of residents currently use the excess commercial garage space instead on parking on the public streets. And residents can currently lease some of the commercial spaces. 8. The commercial tenants keep Saturday hours for customer meetings and walk-in business. In addition one of the larger tenants also has regular evening hours for customer meetings and presentations. 9. The garage was not designed with general public usage in mind. As a result, though the space functions for private use and customer use, it would not function acceptably for general public use. For example, it has many bottle neck areas where exiting traffic can stack up. And there are many partially blocked views at sharp corners. In addition, the construction materials and methods were chosen with private use in mind. They would not withstand the general public use well. Staff points out that since the time that Condition 6(J) came to be, the availability of public parking in the neighborhood of Mills on Main has improved. The City has built the municipal parking ramp with 250 spaces and The Crosby Hotel is required to construct a public parking deck with 52 spaces. RECOMMENDATION The Downtown Parking Commission heard the request on May 19, 2018 and unanimously recommended removing the condition. The reasons for the recommendation were that: 1) public parking improvements have been made in the immediate neighborhood of the Mills on Main facility; 2) the project meets or exceeds all of its parking requirements; and that 3) no parking mitigation was required. ALTERNATIVES The City Council should review the requested Special Use Permit amendment and decide whether to approve it or not. Staff will bring a resolution memorializing the decision to the next Council meeting for formal approval. There are several alternative actions possible, including: A. Approve. If the Council concurs with the Parking Commission findings and recommendation, the Council could approve the request to delete Condition 6(J). B. Deny. If the Council finds that Condition 6(J) should remain, the Council could deny the request. Page 4 of 4 C. Deny in part. If the Council finds merit in keeping Condition 6(J) in place, but also finds that at present a lack of general public parking does not exist in the immediate neighborhood of Mills on Main, then the Council could keep the condition in place but not require it to be implemented for 5 years. In 5 years, the Council would then reconsider the situation. D. Table. If the Council would like additional information prior to making a decision, the Council could table action until the May 15th meeting. bt Attachments: Use Permit Resolution Garage floor plans Applicant narrative Comments from residents ,. 6. All conditions of approval from the HPC are incorporated into this condition by reference listed below: · A. Details of first story public space and merchant space shall be reviewed and approved by the HPC. ' 8. All utilities shall be completely screened from public view. · · .. . C. A lighting plan showing the building fi_xture type, height, location and exterior lighting . intensity shall be submitted for Heritage Preservation approval. All lighting shall be directed away from the street and adjacent properties. Light sources shall be shielded from direct view and protected form damage by vehicles. . D. All landscaping shall be installed before utility release or final project inspection. No project shall be phased unless approval is granted by the Planning Commission. E. Continuous concrete curbing shall be installed to separate parking areas from landscape areas. F. Handicapped parking spaces and signage, in compliance with State requirements, shall be shown on building permit plans and installed before final inspection of the project. G. The street address of the building shall be displayed in a location conspicuous from the public street. H. The trash enclosure shall be made of a sturdy opaque masonry material, with trash receptacles screened from view and compatible with the color and materials of the project. I. All trees required to remain on site, as indicated on the plans, shall be protected by fencing or other necessary measures shall be taken to preven, damage during ·. construction activity. · · J. All parking shall be available for use by the general public during the hours when the business is not operating. __ .. ________ . ___________ K. No roof equipment shall l>e visible to the general public. _ . _ _ _ _ _ __ . ___ ,, _____ _ · L. All gutters, downspouts, flashings, etc. shall be painted to match the color of the adjacent surface. M. Construction projects shall conform to the City's Noise ordinance. Construction during the dry season shall mitigate excess dust problems. N. A sign permit shall be required for all project signs. O. Grading and drainage plan to be approved by City Engineer before building permits are issued. P. Sign package to be approved by the Heritage Preservation Commission; including · · directional signs. '.. --· _ . . - Q. Exterior lighthig plan·to be reviewed and approved by the Heritage Preservation·' . .. Commission .. R. All security lights on building shall be downlit. S. A sign permit is required for signage. T. All exterior modifications to the approved plan are to be reviewed by the HPC. 7. Fire Department standards for access and water supply and sprinklers shall be met. 8. Access between parking levels as described in the parking study shall be considered for redesign. 9. Trash storage shall be enclosed within the proposed building. Stillwater Mills Commercial Partners, LLC 238 Peninsula Rond , Medicine Lake, MN 55 441 March 16, 2018 City of Stillwater 215 North Fourth Street Stillwater, MN 55082 (763) 568-5520 RE: Request to Amend CUP #2003-341, Paragraph 6J -Amendment to public access to commercial parking Dear City Staff, Planning Commissions, Honorable Mayor and Council: Stillwater Mills Commercial Partners, LLC owns the commercial parking garage and commercial office space located at 350 Main Street North. When our partnership purchased the commercial space in 2012, it had been foreclosed on by multiple lenders. 50% of the leasable space sat vacant and partially vandalized. It has been a struggle through the years to reach the first class target that this space represented. Through hard work and diligence the space is now fully leased and in the process of being built out for the tenants RBC Wealth Management and REMAX Professionals. It came as a surprise, when I was contacted by city planning staff regarding public accessibility to the commercial parking garage. In the 2003 approved CUP 2003-341, Paragraph 6J states "All parking shall be available for use by the general public during the hours when the business is not operating". We are therefore requesting to amend the 2003 CUP 2003-341 and strike Paragraph 6J as it is a detriment to the property. This clause impacts our ability to continue to offer a first class office space at existing competitive rates for our tenants for the following reasons: 1) Tenants cite dedicated, secured, heated parking as a significant amenity for employees and customers in downtown Stillwater. We have lost the interest of many tenant prospects over the past 7 years due to tenants deciding to be "up on the hill" where there parking is perceived to be no issue; 2) Tenants have business hours starting at 5:30 AM weekdays, and have business hours on Saturdays and Sundays and many times during the week evenings; 3) Customer and client meeting hours include evenings and weekends for real estate and financial services being offered by tenants. The offices provide privacy to discuss sensitive personal and financial scenarios that would not be prudent in public spaces; 4) Tenant monthly lease operating expenses will increase. These costs include: a. Increased janitorial costs to clean garage and messes left by public; b. Increased insurance liability costs due to trip and fall risks due to intoxication; c. Increased security monitoring cost for initial upfront security equipment purchases plus ongoing surveillance; d. Increased costs for wear and tear items such as garage doors and pedestrian doors; e. Increased garage replacement costs due to reduce lifetimes for garage surface waterproofing and striping; and f. Increased repair costs to damage from cars to concrete walls, posts, bollards, etc. 5) First class history of building will be negatively impacted by foreseeable nuisance calls to public safety resources for unsafe and/or illegal conduct in garage; and 6) RBC Wealth Management and REMAX Professionals expressed public accessibility negatively impacts their business prospects at Stillwater Mills. Letters from tenants are enclosed. The commercial garage is a fully enclosed heated garage. It is a dead-end styled garage with a single car entry and exit with no exterior windows. It has two pedestrian exits. This layout allows the exposed plumbing to be heated in the winter months to avoid freezing. It also would create additional risks for public use especially when bars are closing. As several Stillwater Mills condominium residents have written (their letters are attached), they fear an increase in the threat of violence, lewd behavior and theft / vandalism. Stillwater Mills residents use commercial garage to take their pets to the bathroom. The residents also have been able to keep guests cars off the streets through occasional parking in the commercial garage for community socials and guest hosting. Public access to the garage would negatively impact their ability to safely take out their pets and reliability keep guests cars off the city streets. In summary, the removal of the public parking condition would allow Stillwater Mills Commercial Partners to continue to offer its tenants the a lower costs first class environment and a secure garage -both of which contributed to the recent success of being fully leased. RBC Wealth Management and REMAX Professionals have invested time and money to make their downtown Stillwater Mills locations successful. It would be foolish to lose either when leases come up for renewal due public parking negatively affecting their business. It would also benefit the Stillwater Mills residents safety and guest parking accessibility. In conclusion, it is our hope you amend the 2003 CUP to remove the public parking condition. Si~ Patrick Juetten Chief Manager Stillwater Mills Commercial Partners, LLC Patrick Juetten From: Sent: To: Justin Fox <justinf@professionals.net> Thursday, March 15, 2018 11:52 AM Patrick Subject: Fwd: Opposition to Stillwater Parking .lust in Fo~ RE/M,\X Pr.Jkssionals Dir~ct (h5 I) 7n~-O I UC! i Office: (6S I) 455-7000 www.profossionals .ne1 !. Find us on Facebook ----------Forwarded message ---------- From: Sonya Fox <sonya.fox @professionals.net> Date: Thu, Mar 15, 2018 at 11:50 AM Subject: Opposition to Stillwater Parking To : Justin Fox <justinf@ profe sional .net> The nature of our business at RE/MAX Professionals is very much a 24/7, 365 days a year business. We do not only do business during normal business hours. Quite the opposite actually. Our agents come into the office late at night and even more so on weekends to meet clients , write purchase agreements and more. A major deciding factor in us locating our business where we did, Downtown Stillwater, was due to the favorable parking for our clients, employees and real estate professionals. To open our parking up to the public during non-business hours would severely impact the ability for our agents and clients to access our office quickly and easily during what are typically non-business hours, or our peak hours. We strongly encourage you to consider keeping the Stillwater Mills Condo building private parking for tenants and residents. Sonya Fox Owner/ COO Direct: (651) 209 -3946 Visit Our VVebsite Rf/MAX Professionals 1 Patrick Juetten From: Sent: To: Subject: Hello Patrick, Gervais, Justin <justin.gervais@rbc.com> Tuesday, March 13, 2018 12:22 PM patrick@pvcap.com We Object to the proposal to open our garage to the public I know you are just the messenger, please don't mistake any of this to be aimed at you personally because it definitely is not. Let me know if there are other ways I can help make sure this obscene proposal doesn't come to become a reality. The purpose of this note is to state my very strong opposition to the proposed changes to our parking spaces for our office space here in Stillwater. This would have a very negative impact on our ability to get to and from our place of work in a safe and efficient manner. Furthermore it would have a negative impact on our professional business and the ability to safely meet with clients at our place of office. This negative impact would translate into hardships for my professional career and ultimately would detract from my family's wellbeing. Now, an outsider that would not be impacted on this change in anyway may think that is a stretch, but I whole heartedly would argue that it has fundamental truth and merit that would transpose over a period of time. Anyone that threatens my career and my families livelihood and wellbeing is an adversary of mine and I would gladly argue this point with them in more detail under a more efficient platform than that of email; feel free to pass my contact information along to those people. Stated another way, I sincerely object to the proposal to make the inside parking that is attached to our building available to the public. I am willing to speak out my opposition on other platforms also if that may help our wellbeing and safety concerns be heard. Thank you Patrick! Justin Gervais I Investment Associate RBC Wealth Management, a division of RBC Capital Markets, LLC 350 North Main Street, Suite 106, Stillwater MN 55082 T: 651-430-5514 IF: 651-430-5501 I Justin.Gervais@RBC .com RBC Wealth Management does not accept buy, sell, or cancel orders by email, or any instructions by email that would require your signature. Please visit RBC weal th Management Email Disclosures for material details about our products and accounts, as well as for other important information. Non-deposit investment products offered through RBC Wealth Management are: • Not FDIC insured, • Not a deposit or other obligation of, or guaranteed by, a bank • Subject to investment risks, including possible loss of the principal amount invested. Disclosure information regarding potential conflicts of interest on the part of RBC Capital Markets, LLC in connection with companies that are the subject of any third-party research report included in this email message may be found at Third-Party Research Disclosures . RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. 1 Patrick Juetten From: Sent: To: Subject: Hello Patrick. Graner, Tyanna <tyanna .graner@rbc.com> Wednesday, March 14, 2018 9:23 AM patrick@pvcap .com Stillwater RBC Parking It has been brought to my attention that the weekend parking in our ramp may soon move to pay only public parking. feel this will greatly impact not only me, but many in our complex should this change occur as weekends are often the only time our clients are available to meet with us. I believe it would affect many in our office because of the type of industry we are in if our weekend parking suddenly became unavailable. Please consider this as you move towards making a decision on the matter. Thank you, Tyanna Tyanna Graner Registered Client Associate Pink Wealth Management Group RBC Wealth Management, a division of RBC Capital Markets, LLC 350 N Main St Suite 106 ~ Stillwater MN 55 0 82 ph :65 1 AJ0,5542 • toll fret :8 66-548 -7 770 • fax :65 ! .-130.550 1 tyann a.gn ne r(llh'bc.co m UL....,.p ink'i m g.co m RBC Wealth Management does not accept buy, sell, or cancel orders by email, or any instructions by email that would require your sig nature . Pleas e visit RBC ~lealth Management Email Disclosures for material details about our products and accounts, as well as for other im portant informa t ion. Non-deposit investment products offered through RBC Wealth Management are: • Not FDIC insured, • Not a deposit or other obligation of, or guaranteed by, a bank • Subject to investment risks, including possible loss of the principal amount invested. Disclosure information regarding potential conflicts of interest on the part of RBC Capital Markets, LLC in connection with companies that are the subject of any third -party research report included in this email message may be found at Th ird-Party Re se arch Disclosure s . RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. 1 Patrick Juetten From: Sent: To: Cc: Subject: Timm Hammond <timmhammond@me.com> Wednesday, March 14, 2018 4:16 PM djunker@ci.stillwater.mn.us; awittman@ci.stillwater.mn.us; bturnblad@ci.stillwater.mn.us; ssanders@ci.stillwater.mn:us patrick@pvcap.com; Timm Hammond Stillwater Mills Garage Dear Mr. Junker, Ms. Wittman, Mr. Turnblad, and Mr Sanders, I am writing you to express my concern that the City of Stillwater is looking at enforcing a Conditional Use Permit (CUP) that was issued by the City of Stillwater in 2006 stating that the Commercial garage be open 24/7 for public parking as part of the original building requirements. It is my understanding that the outer lobby would also be open 24/7 for public access. Both my wife and I appose the enforcement of this CUP for the following reasons: 1) Security of the Stillwater Mills outer lobby and the residential building would be compromised and make it unsafe to enter the building during night time hours. One of the reasons that we purchased our unit in Stillwater Mills was because of the security for our use of the outside lobby and entry into our unit. We participate in many activities and dinners in downtown Stillwater and come back to the residence late at night. We always felt secure knowing that both the outside lobby and entry into the residence were secure. 2) Parking spaces for Stillwater Mills and Guest Residence Units were a key sales factor to us. We do have family members who have used these parking spots for activities that we have held at Stillwater Mills and considered it as part of the amenities that were included in the sale of the property. 3) Maintaining the cleanliness of the outer lobby and bathrooms will be more difficult as we know that many of the activities in town are attended by individuals who may not respect the use of these facilities. We have even seen this during the daytime hours in the past. If these areas are not kept presentable, it will a negative effect on the value of our Stillwater Mills property which is unfair to the people who purchased their unit without knowledge of the CUP. My wife and I are asking that you cancel the CUP for the Stillwater Mills building do to these concerns. Best Regards, Timm Hammond Nancy Hammond 1 Patrick Juetten From: Sent: To: Cc: Subject: Hello to All, Gerald and Diane Rabe <jndrabe@earthlink.net> Wednesday, March 14, 2018 7:19 PM djunker@ci.stillwater.mn.us; awittman@ci.stillwater.mn .us; bturnblad@ci.stillwater.mn.us; ssanders@ci.stillwater.mn .us patrick@pvcap.com; Dave Luth SWM Commercial Garage Parking Issue This note is from Diane and Jerry Rabe . We recently bought unit 344 in the SWM building. We have not moved in yet , but plan to do so as soon as our house in Minnetonka is sold . One of the important factors in our deciding to buy a condo in SWM is that it seemed to offer a secure place to live . This was important to us in that Jerry is almost 80 and Diane is 75 and should one of us end up living there alone , security would be even more important to us. We paid $464 K for the unit and plan to add about $50-60K worth of improvements before we move in. The decision to invest this much money was because of the location and in significant part, the security factor. My point is that the value of this property is a sum of many factors, an important one being security. It seems to us that this should also be an important factor to the City in terms of maintaining overall value of property in the City. I do not know who the individual is that has advocated the idea of making changes that result in the lobby being open 24/7, but my guess is that if the businesses in the lower level of the building were asked, or even the surrounding businesses, they would see little or very limited value in it. We visited the unit we bought four times before buying it. One of the things that I noticed during one of these visits was that there was delivery of m a ny boxes/packages ... probably 20 or more tha t day ... that were stac ked in an area off the lobby space, waiting to be pi c ked-up by the residents. To me , that was cl ear testimony to the trust w orthy c ha racter of the people who live in SWM and the security that the people living there feel that they have. I would hate to see this diminished. Another example of this, is that the residents who take their dog out at night for the bedtime walk will want to have a sense of security and safety. So in net, my request is that the pros and cons be carefully weighed , and if this is done , my feeling is that almost everyone would conclude that it's in everyone's interest not to make the lobby of SWM accessible to the public, and that the commercial garage not be open more than reasonable business hours . Sincerely, Jerry & Diane Rabe, (owners of unit 344) 1 1 Bill Turnblad From:Lynn Denn <kldenn@usfamily.net> Sent:Wednesday, March 14, 2018 10:35 AM To:David Junker; Abbi Wittman; Shawn Sanders; Bill Turnblad Cc:patrick@pvcap.com Subject:Stillwater Mills Commercial Garage Parking Dear City of Stillwater Officials: As owners and residents of condominium #336 in the Stillwater Mills building we have been made aware of the issue concerning commercial garage parking. It is our understand that a Conditional Use Permit (CUP) for 24/7 public parking was issued in 2006 that has never been put into effect. All we can ask of you is that you please, please strike this CUP rather than enforce it. When we purchased our condominium one of the greatest consideration factors was the security we would enjoy in this particular location. The personal safety of both of us, and all residents, is important. We likely would not have purchased if we were aware of the CUP and associated activity it would entail. As I have difficulty walking I am not in a position to move quickly if I were to encounter an uncomfortable situation. Due to my limited mobility, Lynn is alone most of the time when entering and leaving the building through the lobby. Both of us are comfortable using the outer lobby. Both of us would be uncomfortable if we knew that there were people freely accessing the main lobby all night long. This also could very easily lead to people following residents in to the next lobby as the resident opens the door. We do not want to be put in a position where we would have to ask someone coming in behind us if they are a resident The cleanliness and beauty of the outer lobby and restrooms would be jeopardized. The cost to maintain the current atmosphere would be increased. Who would absorb that cost? It isn’t appropriate or fair to assess the residents at this late juncture. Theft, malicious behavior, and vagrancy is a concern. Reduced security would affect property values. No one has lived in the building earlier than 2006 so every resident has purchased their unit believing that the outer lobby is not accessible during non-business hours. It doesn’t seem fair to operationally change that now. We are sorry that we won’t be able to attend the April 3rd meeting and are hopeful for a successful, positive outcome for the residents of Stillwater Mills. Safety and security, safety and security, safety and security are critical issues here. We sincerely appreciate you giving these thoughts and concerns consideration. Thank you for your time. 2 Respectfully submitted, Ken and Lynn Denn 350 Main Street N. Unit #336 Stillwater, MN 55082 (320) 279-2694 1 Bill Turnblad From:Ganje <cdganje@yahoo.com> Sent:Monday, March 12, 2018 5:18 PM To:David Junker; Abbi Wittman; Bill Turnblad; Shawn Sanders Cc:Dave Luth; patrick@pvcap.com Subject:Proposed Change of Commercial Garage for Public Parking at Stillwater Mills Condo Building As resident owners of a Stillwater Mills Condo, where the above referenced Commercial Garage is located, we want to express our strong opposition to the City's proposal to turn the Stillwater Mills Commercial Garage into a public parking facility open 24/7. This proposal severely impacts the availability of parking for the many guests who visit our 90 unit condo building on a regular basis. The proposal would also open our main lobby, including the existing restrooms to public use 24/7. This will undoubtedly create major security, vandalism and potential building break-ins. Enclosed public parking facilities such as this, create extensive known security issues. We say this based on the experience of our son, who currently manages nine separate enclosed parking facilities in downtown Minneapolis. Obviously Minneapolis is a bigger city with more frequent issues than Stillwater would experience due to its smaller facility size; however, our son experiences on a weekly basis a multitude of the following issues within these garages, particular ones which are enclosed. - Homeless sleeping in garage and stairwells - Car break-ins - Gangs of young kids doing drugs - Vandalism - Public urination on walls and floors of garage - Multitude of sexual acts in stairways and other semi-hidden places. Most of these issues take place after hours in the evening and particularly when bars are closing. We also can speak to this personally here in Stillwater, because we often see drunken individuals and couples passing by our condo on Mulberry Street after hours. This public garage will only serve to enhance these activities, particularly because it is an Enclosed Dead-end Garage with several hiding places. This will become a dangerous underground parking facility which the City and its police department will come to regret. In closing, we want to extend our strong opposition to this proposal. It is a terrible idea, particularly considering that a new parking deck is currently being constructed, across Mulberry Street along with the new hotel. It would seem to us that the proposed garage spaces that you are recommending for public use will be unnecessary. Candace & Donald Ganje Unit 206 Stillwater Mills Mr Turnblad I am writing about the Conditional Use Permit (CUP) that was issued in 2006 stating that the commercial garage at 350 Main St N was to be open 24/7 for public parking. In addition, the access door to the lobby where the restroom is located would also need to be open 24/7. I believe that this CUP needs to be reevaluated – it is 12 years later, 12 years of norms and expectations for the businesses and residents. To keep the lobby and garage open 24/7 significantly changes the security and maintenance in our building. To be open for public parking would also mean the building would be open to all walking traffic as well since their would have to be access to get in to a car once it has been parked. There are four access doors in the commercial garage to our condo and one door in the lobby. Currently, the commercial garage has a code access in the evening hours, which adds a level of security in the evenings. In addition there is a security panel to enter the front door of the building that gives access to the lobby, a security door from the garage that gives another entrance to the lobby and then another security panel in the lobby to enter the condos. As a condo owner, I want that security. As the commercial garage is currently managed, the condo owners have a parking spot that is reserved for our over night guests that stay in one of our two guest rooms. Open public parking changes that practice. In addition, if spaces are available, our other guests may have the opportunity to park in the garage as well when they visit. Obviously, that stays the same because it is based on availability. Making the spaces available for the public will not help solve parking issues in this part of town – if that is the motivation for this issue arising after 12 years. The business employees, their clients and our guests will need to secure parking, if not in the commercial garage, in the hotel ramp or the street. Is the hotel comfortable with that reality? There are many questions and potential problems that come to mind. How is the city involved in the managing of the garage? Is this public parking free or is there a fee? How are payments managed? Is there a time limit for parking? Who has the responsibility and power to tow or ticket a vehicle that has been parked too long? If there is damage to the garage, lobby, bathroom, or condos – who pays? I do not believe the public restroom buildings - I assumed owned by the city - are open 24/7. If they are not – why would our restroom have to be open 24/7? With the new hotel just across the street we will be seeing more transient traffic and the potential problems that come with people that do not have a stake in the community or our property, now you are literally wanting us to open our property to the public. You have a responsibility to us – we are the taxpayers. Ninety units estimating paying at least $4,000 per year plus the commercial taxes paid in this property – we contribute to the cities base. Our property value benefits the city. We also invest in our community – we support the downtown businesses regularly. We need to work together to resolve this situation in a reasonable responsible manner. Respectfully, Wendy Halverson 350 Main St N Unit 244 Stillwater, MN 55082 651-689-1016 1 Bill Turnblad From:Mark Harrold <msharrold68@gmail.com> Sent:Friday, March 16, 2018 4:09 PM To:David Junker; Abbi Wittman; Bill Turnblad; Shawn Sanders Subject:commercial garage use in Stillwater Mills Condo building As a resident of the Stillwater Mills Condominium at the corner of Mulberry and Main Streets, I am concerned about opening up the building to the public for parking and access to our lobby area. The lobby area has been furnished and decorated by the residents in this building and is cleaned and maintained by our homeowner association dues. Access by anyone coming to the Stillwater area would expose our building to possible theft or mistreatment of the furnishings. Public access would also greatly increase the workload of our building’s caretaker. Please consider these concerns when making your decisions.—Susan Harrold, Stillwater Mills 1 Bill Turnblad From:Havir, Winona <Winona.Havir@horacemann.com> Sent:Tuesday, March 27, 2018 4:23 PM To:Bill Turnblad Cc:dgluth@earthlink.net; patrick@pvcap.com Subject:Stillwater Mills Condominiums CUP Importance:High Dear City Community Development Director Turnblad, My husband, Gary, and I reside in the Stillwater Mills Condominiums on Main Street. Recently, we received a very disturbing email. The Manager of our Commercial garage space has made us aware of an important parking issue that affects our personal living conditions and safety. The basis of the concern is that a Conditional Use Permit (CUP) was issued by the City of Stillwater in 2006, stating that the Commercial garage be open 24/7 for public parking as part of the original building requirements. The conditions set forth in the CUP were, until recently, unknown to the Commercial Manager and the condominium residents. Since the building was opened and for obvious reasons, the Commercial garage has only been available during regular business hours. It is our understanding that the City is now trying to enforce the terms of the CUP. This enforcement would impact all current and future residents living in Stillwater Mills. Furthermore, there was no disclosure of this encumbrance by any of the parties involved in the real estate purchase transaction. We will lose all of the 10 parking spaces that we currently contract for including the two spaces reserved for our Guest Suite parking. In addition, it may require us to keep the access to our outer lobby open 24/7 to provide those using the Commercial garage use of the restrooms located there. This provision will negate the current significant security measure which limits the number of strangers in the lobby and potentially creates additional crime, litter, thefts or destruction of our property. There are four entrance doors from the commercial garage that could allow access to the residential levels As you review this matter, we ask you to take great care and caution as you will begin the initial discussions on April 3rd regarding how the Commercial garage must operate going forward. We cannot imagine the additional impact to our lives during the numerous and very crowded events that take place in Stillwater. We already have: Issues with traffic being backed up on Main Street and Mulberry Street with increased noise as a result Issues with pedestrians crossing or walking in the street outside of the crosswalks without regard for approaching traffic Issues with people parking, blocking and damaging our garage entrance and exit Issues with theft from our parking garages Issues with packages and newspapers being stolen from the lobby/mail delivery area Issues with trash and cigarette waste being strewn on our doorstep Issues with building damage from vehicles parking in our Commercial garage. 2 Should this CUP be enforced in its current form; we will incur more of the above stated issues and the potentially associated additional costs that go along with increased security and maintenance. We ask that you personally consider the impact of your decision on us, your Stillwater Residents, as well as the surrounding Stillwater community. It should be noted that there is no public overnight parking provided by the City Ramps. We do not understand why it would be reasonable to allow 24/7 public access to an enclosed private parking garage. Enforcing the terms of the CUP is a bad idea. Thanking you in advance for your help in keeping Stillwater and the Stillwater Mills Condominiums a great place to call home! Respectfully yours, Winona and Gary Havir 350 Main Street North, Unit 324 Stillwater, MN 55082 (612) 719-9007 Winona.Havir@horacemann.com Gary.Havir@horacemann.com CC: Dave Luth, President Stillwater Mills on Main Association Unit 246 dgluth@earthlink.net Phone: (651) 777-2737 Patrick Juetten, Chief Manager of the Stillwater Mills Commercial space patrick@pvcap.com Securities offered through Horace Mann Investors, Inc. | Member FINRA | 1 Horace Mann Plaza | Springfield, IL 62715-0001 | 217-789-2500 | horacemann.com 1 Bill Turnblad From:Judy Holderbach <judie320@gmail.com> Sent:Tuesday, March 27, 2018 6:54 PM To:David Junker; Abbi Wittman; Bill Turnblad; Shawn Sanders Subject:Commercial Garage at 350 Main St N in Stillwater I would like to voice my concerns over the talked about proposal to make the commercial garage open to the public as a parking lot. This worries me as far as the security of our condos. We have four entrances from garage, which are locked, but if this is opened to public, I am fearful that access could be gained to our homes. We value the fact that we feel secure in our residences at this time and would like to maintain that security. l am strongly against the opening of the garage as a public parking area. When thinking about it, all I can see are future problems. It is not set up for Public parking and could end up bringing about more problematic situations than positive ones. I hope you will consider my feelings on this matter. Thank you Judy Holderbach Unit 242--350 N Main ST 1 Bill Turnblad From:David Junker Sent:Sunday, April 01, 2018 8:20 PM To:Bill Turnblad Subject:Fwd: Mr. Junker: In case you did not get this one, thanks Sent from my iPad Begin forwarded message: From: Sharon Ketz <sharonrketz@gmail.com> Date: March 29, 2018 at 3:28:01 PM CDT To: <djunker@ci.stillwater.mn.us> Subject: Mr. Junker: Mr. Junker: In regard to Commercial Use Permit issued 18 years ago, we were never aware of this building requirement and were sold our condo on the premise. Neither our community nor the Commercial Manager was aware of the conditions set forth in CUP. I believe that these conditions seriously threaten the security of our building. Not only vehicles, but also pedestrians would have access to our condo through the four doors that open into the garage area. Since vehicle owners need access to the building and the restrooms, it would be necessarily open to all pedestrians. Also the doors to the residents garage would be vulnerable because of being adjacent to the public parking. Public parking, open 24 hours day and 7 days a week would be a serious threat to the security of our building. At this time there is an access code to enter the commercial garage, a code access to the front door and another to enter the condo proper. I like this kind of security. As well advanced senior citizens, this security is very important. The security of this building was a major priority when researching our move to Stillwater, and we feel that we need this I can’t understand how our garage would improve the parking situation in Stillwater. The clients and employees of the businesses in the building, as well as our guests would need to park on the street. It seems that would be just trading one space for another. Another issue would be parking for the business clients or condo guests that are elderly or handicapped. Will the city provide additional handicap parking? Also, many handicapped citizens drive their own vehicles. Imagine trying to exit your car with a walker or wheelchair into the heavy traffic on Main Street, Stillwater? Would the City be financially responsible for potential injuries? I feel that with the taxes paid by the over 90 residents of this community, the fact that we patronize businesses up and down Main Street, and the value of this property benefits the city, that you have a responsibility to us, the taxpayers. I hope that this issue can be resolved reasonably and fairly. Respectfully 2 Sharon Ketz 350 Main St N #362 Stillwater, MN. 55082 651-351-0027 Sent from my iPad Jenn Sundberg From: JUNE KOLODZIESKi <kolodzieski@msn.com> Saturday, March 31, 2018 5:28 PM Sent: To: Cc: David Junker; Abbi Wittman; Bill Turnblad; Shawn Sanders; Barb & Steve Scribner patrick@pvcap.com; dgluth@earthlink.net Subject: CUP for commercial garage at Stillwater Mills Regarding special hearing on April 3rd at City Hall: We are residents of Stillwater Mills and have thoroughly enjoyed living in Stillwater. However, my husband and I are very concerned about the potential for the commercial garage to have to stay open 24/7 . I can see no advantage for this change only negative impacts. The following are our greatest concerns: 1. being open continually would be a huge draw for homeless and possible bar patrons usage. Because our structure is closed from the elements, they would find this a great place to snuggle up, unlike the garage attached to Lowell Inn which is open to the elements. And even in that garage, I have personally come upon homeless especially in the stairwells there, charging their phones and getting a respite from the weather. I believe this would pose a huge security issue. And those who use it legitimally would certainly have a right to be uncomfortable going to and from their cars or into storage areas. 2. because this would be open and there can not be reserved parking, the Mills residents would loose IO spaces dedicated to our guests, family, etc. Not a small inconvenience. Again, one reason we moved here as I personally compared secured parking availability among several condos in St. Paul. 3. In addition, requiring bathroom access at 2:00 am for businesses that are all closed and do not receive customers at that time, seems like much more than is needed. We would have to strip our lobby down to nothing for fear of theft: no welcoming chairs, rug, Christmas Tree, or wall decorations. Please reconsider and grant a variance for this special circumstance. One of the reasons we moved to Stillwater was because we felt safe. We would hate to see this change. Respectfully, June and Ray Kolodzieski 350 Main St N, unit 354 Stillwater, MN 55082 651 829-4341 email: ko lo dz ies ki @ ms n.c o m 1 1 Bill Turnblad From:CeCe <ccluth@earthlink.net> Sent:Wednesday, March 14, 2018 7:22 AM To:David Junker; Abbi Wittman; Bill Turnblad; Shawn Sanders Subject:Garage Parking 350 Main St. N., Stillwater, MN As a resident of Stillwater Mills, 350 Main St. N., it has been brought to my attention that the first floor of indoor garage parking, also known as the “Commercial” area of parking for the building, is being considered for use as totally public parking. This news is more than disturbing for a variety of reasons. 1. When we purchased our condo 8 years ago, one of the most attractive amenities was that of indoor parking for our guests. We will lose this very valuable asset if the garage becomes open to the public - and our guests would then have to pay a parking fee which is not what we bargained for when we based our home purchase on this desirable amenity. 2. Another highly valued feature for residents of this condo building is the security. It is our understanding, if the garage area becomes public parking, the door between the garage and our “outer” lobby (which is currently only unlocked during business hours) will be unlocked 24 hours, 7 days a week, to allow access to the restroom in that lobby area. This is a huge security concern as this lobby is pleasantly decorated for the enjoyment of our business occupants and residents, and we feel with 24 hour public access it opens the area to possibility of theft of items as well as vandalism to say nothing of removing one level of entrance security to the residents’ area of the building. 3. There are businesses on the first floor of this building that use that parking area for their employees and clients - a valuable asset for those concerned. It is my feeling it is not necessary to open this space to public parking. This space has been here for 10 years, it is part of our building community space and we would not be pleased to see this open to the public. It is good to see Stillwater grow and improve, but the sudden need for this space to become part of the public parking network in Stillwater is not appreciated by owners of space in this building. There is a ramp connected to the new hotel - that should satisfy their parking needs - any further growth of event, hotels, or other such places of business should determine how they will handle the additional vehicles when they plan the venue - and not impact parking space that was considered for the use of owners and guests of this or any other building. Cecilia Luth 350 Main St. N. #246 Stillwater, MN 55082 1 Bill Turnblad From:Bob McAdam <bob@landmarkcustomhomes.com> Sent:Sunday, March 18, 2018 3:19 PM To:djunker@ci.stillwater.mn; Abbi Wittman; Bill Turnblad; Shawn Sanders To Whom It May Concern, My wife, Dianne, and I recently moved to 350 Main Street N., Stillwater Mills. One of the reasons that we chose our home was the security that it provided us. It has been brought to our attention that the commercial area and our lobby are being considered to be opened to the public as public parking. This is of grave concern to us, for our well being and safety. The fact that you are considering having the door between the garage and our lobby and the restroom open 24 hours a day, 7 days a week is unacceptable. This area has been decorated by Stillwater Mills residents and is enjoyed by the residents. The possibility of theft, vandalism and homeless people is very worrisome and scary. Our daughter works at ReMax and is sometimes there at night. This would be a huge worry to her and to us if this area was open to anyone 24 hours a day and night One of the reasons that we bought here was for the extra 10 parking spaces available to our guests. The proposal takes that away from all of the residents who utilize these spaces. We love to see the rebirth and growth in downtown Stillwater We feel, though, that the hotels and event centers should have had a plan for parking before opening. We certainly didn’t think that their plan would be to use our parking area and lobby to achieve their goals. We are confident that you will listen to our concerns and think carefully about the problems that could occur if the garage and lobby are opened to the public. Thank you. Robert and Dianne McAdam 350 Main Street N # 454 Stillwater MN Sent from Mail for Windows 10 1 Bill Turnblad From:Cameron Murray <ctmurray@mac.com> Sent:Monday, March 12, 2018 7:28 PM To:Abbi Wittman; Bill Turnblad Subject:Parking in the commercial spaces at Stillwater Mills Attachments:2005-02-01 CC Packet - review of Nov 2003 public hearing.pdf; 2005-02-01 CC MIN - Public bathrooms.pdf I heard via email today that the owner of the commercial parking garage is meeting with the city on April 3. I researched this a while back and found the City Packet with the CUP (attached 2005-02-01 CC Packet Re), and indeed condition 6J mentions the commercial garage should be open for parking after business hours. In the note from the President of our homeowners association it is implied by the commercial garage owner that the bathrooms just off the parking garage, in our vestibule, must stay open during these public parking hours. The door between the garage and our vestibule is unlocked during business hours as this bathroom is used by some of the commercial clients. But after hours this is locked, and only resident key fobs can open. As this door forms part of our security system, the residents are very concerned about having this door open 24 hours a day (leaving the vestibule open 24 hrs). In the meeting minutes document attached "2005-02-01 CC Min - Public Bathrooms", on page 7 and 8 the council denied the request to not have public bathrooms. In a discussion after the vote, the developer mentioned he is concerned with the security issue associated with this bathroom. Quoting the document; "Councilmember Junker noted that the City did not anticipate that the restrooms would be available around the clock, that it was assumed when retail spaces close, the restrooms would be closed to the public”. The council had the document I attached ( "2005-02-01 CC Packet review of Nov 2003 packet”) at this meeting, and it contains the provision 6J stating the garage should be open after business hours. So the council knew they were allowing the closing of the bathroom after business hours while the garage was open. So I am asking if the city has other documents regarding the bathroom issue, or if the city is not requiring access to the vestibule bathrooms after hours, could you please contact Dave Luth, dgluth@earthlink.net, or call 651- 777-2737? Thanks Cam Murray 1 Bill Turnblad From:Pat Johnson <potsym@gmail.com> Sent:Tuesday, March 20, 2018 11:54 AM To:Abbi Wittman Subject:City Planner This is a response to the cities plan to open our commercial garage 24/7 to the public…. I have been a resident of the Stillwater Mills Condo Building since 2006. The opening of the garage to the public would be a disservice to all who live here. There is mostly the issue of security. We could have transits sleeping in our lobby overnight. People waiting to walk in with residents at all hours…That would be very hard to stop as once they are in who knows where they would be headed . I am 89 years old, would I be able to deter anyone. What about the bathroom issue..We could have anyone using the lobby bathrooms at all hours. Who would be taking care of the cleaning of these bathrooms? Even the bathroomsin the river park are closed at 9 pm.. We are given parking for our guests, what will happen to them.. Will we be given security guards? I do not know whose idea this was, but it certainly will be detrimental to the residents of this building. Sincerely. Pat Johnson #333 1 Bill Turnblad From:Sher J <sherryl.johnson59@gmail.com> Sent:Sunday, March 18, 2018 7:02 PM To:David Junker; Abbi Wittman; Bill Turnblad; ssanders@ci.stlillwater.mn.us Cc:patrick@pvcap.com; Dave Luth; Bob MacDonald Subject:concerns about the CUP provision for Stillwater Mills homeowners To: Council Member: Dave Junker City Planner: Abbi Jo Wittman Community Development Director: Bill Turnblad Director of Public Works/City Engineer: Shawn Sanders From: Sherryl Johnson, Ed.D. Stillwater Mills Homeowner RE: Striking the "J" provision of the CUP provision Thank you for your service to the City of Stillwater. As you face your decision about whether or not to enforce the "J" component of the Conditional Use Permit established in 2006, please consider these concerns that I share with my fellow homeowners here at the Mills. I have been a homeowner here for nine years and have served on our Board of Directors for nearly half of those years. 1). Security. Will there by any possibility that the public will enter our private or commercially shared property, i.e. our front or inner lobbies, our lobby bathrooms? (These areas were not designed for heavy public use - only for residential use. Homeowners here purchased their properties with no expectation that the lobbies would have public access that might violate their security.) 2) If so, how will security be provided for those areas? Who will pay for property damage? Is the City liable for security and damage and maintenance costs? 3) Why is the "J" component implementation now being considered 12 years after the provision was written and then left idle? 4) With the loss of the commercial area parking, will the Mills still meet the City's criteria for the number of parking spots per number of household units? 5). Businesses in the Mills building will potentially lose their use of evening and weekend parking spots and they will lose their extra income from the space that Mills residents now rent for use for their additional vehicles. It is important for this decision group to remember that the downtown condo homeowners provide very substantial income to the City. It is my understanding that the Lofts and the Mills alone at about 150 units compare with close to 300 households in terms of tax income and yet the sewer provisions and street and curbing requirements are far less for the condos than that required for the same number of houses. This means lots of tax income from the condo homeowners stays in the City's coffers. Another cost-savings for the city with these condos is that condo homeowners are largely empty-nesters meaning that the taxes we pay are not spent to school our children nor likely to police our bad behavior on the roads, etc. So the City largely benefits from the taxes that we pay. Please positively consider striking the "J" provision from the CUP agreement with the Mills condo's and commercial. 2 Thank you. Sherryl -- Sherryl L. Johnson, Ed.D. March 25, 2018 To: Dave Junker Abbi Jo Wittman Bill Turnblad Shawn Sanders Cc: Patrick Juetten Subject: Stillwater Mills Commercial Parking Lot The number one concern in regard to opening up the Commercial Parking Lot at Stillwater Mills to the public, 24/7 is safety. We have a very secure building with only Stillwater Mills residents and their guests allowed in our outer lobby after normal business hours. I can see this safety changing significantly with opening these areas up to the public 24/7. What is to prevent homeless from entering this heated garage and sleeping overnight. What is to prevent people from congregating in the lobby and parking lot after the bars close, harassing the home owners as they try to enter the building. This building does not only occupy several businesses, but is home to approximately 100 families. With this change, parking for resident guests will probably be discontinued, which is a concern to those who live in the building. I have been in the public parking ramp next to the Lowell in and have seen garbage, such as beer cans, miscellaneous trash throw up and even used condoms laying around, I do not want to see that in the place I live. I do not understand how the city would be allowed to turn a privately owned parking ramp into a public ramp. Concerned Downtown Resident David and Lynn Sontag 350 Main St N, Unit 234 Stillwater MN 55082 1 Bill Turnblad From:Jenn Sundberg Sent:Friday, April 13, 2018 8:07 AM To:Bill Turnblad Subject:FW: Case No. CPC/2018-11 Homeowner of 350 Main Street Feedback FYI From: Jessica Rennich [mailto:jessicarennich@gmail.com] Sent: Thursday, April 12, 2018 1:19 PM To: Jenn Sundberg <jsundberg@ci.stillwater.mn.us> Subject: Case No. CPC/2018-11 Homeowner of 350 Main Street Feedback Hello Jenn, I am sending this letter in regards to the city of Stillwater wanting to allow public parking in the commercial parking garage at 350 Main Street (Stillwater Mills condo). I am not able to attend the public meetings due to work travel. I have been a resident in this building for 10 years and am 31 years old, I own a condo in the building. I am strictly opposed to the city allowing public parking in my home for two reasons: 1.) Building safety - I own a dog and frequently walk through the commercial space alone at night to take my dog to the designated dog relief areas which are located outside the commercial garage. I have witnessed on three separate occasions when the building security has kept uninvited trouble makers out of the commercial garage. Once when teens were trying to enter through a secure door at night with skateboards, I asked them to leave and informed them it was a private building not a public space. The second time was a drunk driver trying to escape the police from PD Pappy's across the street, the driver tried pulling into our commercial garage but because it was locked and secure he could not enter and the police were able to stop him while blocking the entrance into our building. A third time was last summer when very intoxicated individuals tried entering our building and since they were not able to they smashed alcohol bottles on Mulberry Street. I had to call public works to have the mess cleaned up. These are three instances in my personal experience where the wrong people tried entering our secure residence for the wrong reasons through the commercial garage. Due to the building being secure and not a public space, it kept these safety threats from entering into our residence. 2.) I pay for maintenance and building wear and tear through my HOA dues. Simple yet costly equipment such as garage doors, openers, security points and HVAC for removing the fumes will see increased use. As a homeowner I am the one who pays for these repairs to the building. What happens if a person injures them self and tries to sue our HOA, or causes property damage inside this space as a result of the property being opened for public use - who pays for this? For example, there is no smoking inside the commercial garage, what if an individual tosses a cigarette on the floor and it catches fire, does the city pay for this as it was a "public" space? Will the city contribute to the building's reserve funds for paying for things like maintenance, cleaning and repair to our garage? 2 My largest concern with the city allowing the public to use my residence for parking is security. There are many doors that access our home through the commercial garage. The city would be removing a safety barrier by allowing public parking in our residence. The city will see an increase in police calls due to the wrong behavior taking place in a very private, low visibility residence parking garage. Thank you for listening to my concern over the issue with allowing the public to use our residence as a parking garage. If you can reply to my email letting me know this has been received and will be taken into consideration would be greatly appreciated. Sincerely, Jessica Rennich 350 Main Street Stillwater, MN 55082 TO: FROM: DATE: SUBJECT: MEMORANDUM Mayor and City Council Shawn Sander~rector of Public Works August 17, 2018 2018 Sidewalk Rehabilitation Project Approval of Plans & Specifications and Authorize Advertisement of Bids (Project 2018-03) DISCUSSION Plans and specifications for the 2018 Sidewalk Rehabilitation Project are completed. The bid date will be September 4, 2018 at 10:00 A.M. with bids presented to Council at the meeting later that day. RECOMMENDATION Staff recommends that the City Council approve the plans and specifications for the 2018 Sidewalk Rehabilitation Project and authorize advertisement for bids. ACTION REQUIRED If Council concurs with staff recommendation, Council should pass a motion adopting Resolution 2018-__ Approving Plans & Specifications and Ordering Advertisement for Bids for the 2009 Sidewalk Rehabilitation Project (Project 2018-03). APPROVE PLANS & SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR 2018 SIDEWALK REHABILITATION PROJECT (PROJECT 2018-03) WHEREAS, pursuant to a resolution passed by the Council on July 31, 2018, the City Engineer has prepared plans and specifications for the 2018 Sidewalk Rehabilitation Project (Project 2018-03) and has presented such plans and specifications to Council for approval. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF STILLWATER, MINNESOTA: 1. The plans and specifications presented by the City Engineer are hereby approved. 2. The City Clerk has inserted in the Gazette an advertisement for bids upon the making of the improvement under the approved plans and specifications. The advertisement was published once in the Stillwater Gazette, specifying the work to be done, stating that bids will be received by the City Clerk until Tuesday September 4, 2018, at 10:00 a.m. at which time they will be publicly opened at City Hall by the City Engineer; will then be tabulated and will be considered by the Council at their next regular Council meeting on September 4, 2018, in the Council Chambers. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier's check, bid bond or certified check payable to the Clerk for five (5) percent of the amount of the bid. Adopted by the Council this 21st day of August 2018. Ted Kozlowski , Mayor Attest: Diane F. Ward, City Clerk CITY COUNCIL DATE: August 15, 2018 TOPIC: Minar neighborhood development FROM: Bill Turnblad, Community Development Director BACKGROUND The city received an inquiry from several Minar Avenue Neighborhood residents to extend city sewer and water for the purpose of developing their lots for additional single family home sites. And though the city’s current comprehensive plan envisions splitting the lots in the Minar Neighborhood into smaller parcels and servicing them with sanitary sewer and municipal water, no strategy has been developed for extending those utilities. Therefore, city staff brought the lack of a strategy to the City Council for consideration on May 1, 2018. Minar Neighborhood Page 2 of 3 The City Council directed staff to initiate a feasibility study process to determine if extending sewer and water is the preferred development strategy. As part of this process, staff was asked to hold a neighborhood meeting and prepare an estimate of costs. NEIGHBORHOOD MEETING & SURVEY On June 14th a neighborhood meeting was held at the Stillwater Public Library. The slide deck for the PowerPoint presentation is attached. The purpose of the meeting was to discuss development strategy options and to distribute an opinion survey on the subject. (A sample survey is attached.) Owners of 34 of the 44 homes in the neighborhood responded. (One survey from each household.) 73.5% prefer to see no lot splits. 26.5% would like the option to subdivide their lot. Of those that would like to have the option to subdivide, all but one wanted one acre lots with septic systems and private wells (i.e. no sanitary sewer or municipal water extension and therefore no sewer and water assessments). One of the respondents wanted the option to develop at standard urban densities. ESTIMATE OF COSTS The City Engineering Department completed an estimate of the cost of extending the utilities throughout the neighborhood. At today’s rates, with minimal storm sewer improvements, the cost of servicing all the properties would be about three million dollars. (The itemized estimate is attached.) Roughly speaking, that is about $27,000 per acre. There is no identified funding mechanism at the moment for covering the costs other than assessment. OPTIONS As discussed at the neighborhood meeting, there are three general development strategies that are possible. 1. Leave as is – 2.5 acre minimum lot size 2. Allow 1.0 acre lots with on-site septic systems and private wells 3. Extend municipal sewer and water into the neighborhood and allow lot splits at a suburban density a. This could occur in phases or all at once b. Payment options might include i. Assess all properties as soon as sewer and water are extended, whether this is in phases or all at once. a) This is the more common approach Page 3 of 3 ii. Defer assessment until lot split occurs a) The city used this approach for the North Hill project b) Key to being able to offer this option is finding a funding source that allows the city to make improvement bond payments. ACTION NEEDED City staff requests the City Council to consider the three general development strategies, and decide which to adopt. Staff will then initiate the necessary steps to implement the strategy. Attachments: Neighborhood Meeting presentation Sample Survey Cost estimate for utilities bt 8/15/2018 1 MINAR NEIGHBORHOOD Re-development options Bill Turnblad City of Stillwater Community Development Director June 14, 2018 8/15/2018 2 MINAR NEIGHBORHOOD MEETING – DEVELOPMENT OPTIONS 1. Leave as is – 2.5 acre minimum lot size 2. Allow 1.0 acre lots with on-site septic systems and private wells 3. Extend municipal sewer and water into the neighborhood and allow lot splits at a suburban density a. This could occur in phases or all at once b. Payment options might include i. Assess all properties as soon as sewer and water are extended, whether this is in phases or all at once. a) This is the more common approach ii. Defer assessment until lot split occurs a) The city used this approach for the North Hill project b) Key to being able to offer this option is finding a funding source that allows the city to make improvement bond payments. {If the development strategy progresses to a feasibility study phase, then funding sources would be identified. This would answer the question whether deferred assessments would be possible.} 8/15/2018 3 MINAR NEIGHBORHOOD MEETING – NEXT STEPS 1. Please fill out a survey (one per household). Return it tonight to me or email it to bturnblad@ci.stillwater.mn.us 2. City Engineer does an initial cost estimate [July] 3. City Council decides if a sewer and water extension project is the preferred re-development strategy for the neighborhood. If they find that it is, they will order a feasibility study to be completed. [August - September] 4. Moratorium would be placed on lot splits until an ordinance is in place formalizing whichever re-development strategy is selected [June – December if 1.0 acre lots; June – June if sewer and water to be extended] 5. Feasibility study is completed and a 2 nd neighborhood meeting would be held [September – November] 6. Re-development ordinance written [Oct – Dec if 1.0 acre lots; December – February if sewer and water extended] 7. Throughout the process I will keep you informed by email. So, on your survey, please write the email address you would prefer me to use. MINAR NEIGHBORHOOD Questions? Minar Neighborhood Questionnaire Form One per household Name: ____________________________________________________ Address: ___________________________________________________ Email: _____________________________________________________ 1. Do you want your lot to remain at its current size, or would you like to have the option to split it? A. Current size B. Option to split 2. If you would like the option to split your lot, would you prefer a one acre split (with no city sewer and water service) or smaller lots than that (with city sewer and water)? A. Not applicable: not interested in subdividing my lot B. One acre lots with no city sewer or water C. Smaller lots with city sewer and water 3. If you would like the option to split your lot, in what general timeframe do you think you might want to subdivide you property? A. Not applicable: not interested in subdividing my lot B. Within the next three years. C. Within three to five years. D. Within five to ten years. E. More than ten years into the future. 4. If you would like the option to have smaller lots with city sewer and water, which option for payment of the costs of extending the sewer and water would you prefer? A. Not applicable: not interested in subdividing my lot B. Assess my share of the cost upon completion of the sewer and water extension project. C. Defer assessment until I am ready to subdivide my property. (This option is dependent upon the City finding some kind of financing tool to carry the costs until assessments can be paid.) D. Other: _____________________________________________________________________ Comments/Opinions (please continue on back side of page): _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Please return form to 216 4th Street North Stillwater MN 55082 or email to Bill Turnblad at bturnblad@ci.stillwater.mn.us Item No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 City of Stillwater Item Mobilization (5% maxi Traffic control Sawing Concrete Pavement (Full Depth) Sawin!!: Bituminous Pavement (Full Depth) Remove Bituminous Pavement Common Excavation Class 5 Aggre11:ate Base Course Test Rolling Common Laborer 10 C.Y. Truck 3 C.Y. Front End Loader 1.5 C.Y. Backhoe Street Sweeper w/ Pickup Broom Water for Dust Control Bituminous Material for Tack Coat Wear Course Mixture SPWEA340B (Driveways) (3-inch) Wear Course Mixture SPWEA330C Base Course Mixture SPNWEB330C 12" RC Pipe Sewer Desi11:n 3006 Cl. VIAii Depths) 8" PVC Sanitary Sewer Pipe 12" PVC Sanitary Sewer Pipe Sanitary Sewer MH (0-10') deep Sanitary Manhole Extra Depth 8'x4" wve 4" PVC Sewer Service 4" PVC Sewer Service Riser 8" DIP Water main 6"dip Water main Furnish & Install Hydrant with gate Valve and Box 8" Gate Valve and Box DIP Fittings 1" Curb Stub & Box 1" Corporation Stop 1" water Service Type K Cooner 1.5" Steel Manhole Adjusting Rings(Storm and Sanitary) Minar Ave Estimated Quantities Furnish & Install Manhole Castin!!: -Storm or Sanitary( Neenah R1733 or equal) Rain Guardian (sediment control structure) Select Topsoil Borrow screened (LV) Fertilizer Type 3 (350#/Acre) Seeding Hydraulic Soil Stabilizer, Type 5 (2500#/Acre) Sod Ditch preparation 12 " CMP culvert Mail Box Contingency 10% Engineering 20% Total Unit LS LS LF LF SY CY TON RS HR HR HR HR HR MG GAL SY TN TN LF LF LF EA LF EA LF LF LF LF EA EA LB EA EA LF EA EA EA CY LB AC LB SY LF LF EA Estimated Unit Cost Total Cost Quantity I 1.00 $ 120,000.00 $ 120,000.00 1.00 $ 25 000.00 $ 25 ,000.00 60 $ 3.50 $ 210.00 570 $ 2.00 $ 1,140.00 17 760 $ 3.50 $ 62160.00 300 $ 15.00 $ 4 500.00 14,000 $ 15.00 $ 210 000.00 73 $ 50.00 $ 3 632.50 50 $ 100.00 $ 5,000.00 50 $ 120.00 $ 6,000.00 50 $ 160.00 $ 8,000.00 50 $ 160.00 $ 8,000.00 50 $ 140.00 $ 7,000.00 so $ 65.00 $ 3,250.00 4,440 $ 1.80 $ 7,992.00 400 $ 40.00 $ 16,000.00 1,465 $ 100.00 $ 146,500.00 2,442 $ 100.00 $ 244,200.00 750 $ 75.00 $ 56,250.00 3,955 $ 15.00 $ 59 ,325.00 3,090 $ 20.00 $ 61,800.00 38 $ 3 800.00 $ 144 400.00 200 $ 200.00 $ 40,000.00 40 $ 120.00 $ 4 800.00 1,800 $ 12.00 $ 21 ,600.00 640 $ 12.00 $ 7,680.00 7 635 $ 55.00 $ 419,925.00 400 $ 40.00 $ 16,000.00 10 $ 6,000.00 $ 60,000.00 8 $ 2,700.00 $ 21 ,600.00 500 $ 10.00 $ 5,000.00 40 $ 900.00 $ 36 ,000.00 40 $ 760.00 $ 30,400.00 1800 $ 37.50 $ 67 ,500.00 76 $ 175.00 $ 13 300.00 38 $ 1,000.00 $ 38 000.00 5 $ 2 500.00 $ 12 500.00 2,153 $ 30.00 $ 64 590.00 1,200 $ 0.75 $ 900.00 4 $ 1.25 $ 4.38 5,000 $ 1.25 $ 6,250.00 6,460 $ 1.25 $ 8,075.00 14 530 $ 15.00 $ 217 ,950.00 600 $ 15.00 $ 9,000.00 40 $ 100.00 $ 4,000.00 $ 2,305,433.88 $ 230,543.39 $ 461,086.78 $ 2,997,064.04 817/2018 CITY COUNCIL REPORT MEMO DATE: August 15, 2018 CASE NO.: 2018-45 COUNCIL MEETING: August 21, 2018 LANDOWNER: Sterling Black, Fairway Development DEVELOPER: Sterling Black, Fairway Development REQUEST: Final Plat & Development Agreement approval for Heritage Ridge (f.k.a. Hazel Place), a 7 lot single-family development LOCATION: 1902 William Street REVIEWERS: City Engineer, City Attorney, Brown’s Creek Watershed District REPORT BY: Bill Turnblad, Community Development Director BACKGROUND Sterling Black, Fairway Development, received Preliminary Plat approval on September 5, 2017 for what was then known as Hazel Place. The City Council approved the Preliminary Plat (Resolution 2017-163), but with the condition that only seven lots be developed, rather than the eight shown on the Preliminary Plat. The Planning Commission recommended in August of 2017 that the Council approve the Preliminary Plat. In June the City Council considered an eight-lot Final Plat for this project, but did not find it consistent with their Preliminary Plat approval for seven lots. Therefore, the Council denied the requested plat approval. Subsequently, the developer submitted a revised Final Plat with seven lots. The only substantive difference between this version of the Final Plat and the previous version is that Lot 8 was eliminated and combined with Lot 7. The result is that Lot 7 now has two potential building pads for a house. This can be seen in the graphic on the next page. Heritage Ridge August 15, 2018 Page 2 SPECIFIC REQUEST The developer is requesting approval of the Final Plat and development agreement for HERITAGE RIDGE. Revised lot layout EVALUATION OF REQUEST Preliminary Plat Review Final plat cases are evaluated against the conditions of preliminary plat approval, which are found in Resolution No. 2017-163, and reproduced verbatim below. 1. The site shall be developed in substantial conformance with the following plans on file with the Community Development Department, except may be modified by the conditions herein: Preliminary Plat dated 7/12/2017 Preliminary Grading and Erosion Control Plan dated 3/17/2017 Heritage Ridge August 15, 2018 Page 3 Preliminary Utility Plan dated 3/17/2017 Preliminary Street and Storm Sewer Plan & Details dated 3/17/2017 Preliminary Landscape Plan dated 3/17/2017 Tree Preservation Plan dated 3/17/2017 This condition is met. 2. The total number of lots is limited to seven plus one stormwater outlot. This condition is met. 3. Outlot A shall not be permitted and shall be combined with Lot 6 or sold to an adjacent property owner, being combined with a larger tract of land. This has been done. Outlot A was proposed to encumber the steep slopes leading down to the Brown’s Creek Trail. It has been incorporated into Lot 6. 4. No more than two lots are permitted to share a driveway. As can be seen in the graphic to the left, a combined driveway is proposed to preserve the option to build on pad 7a. Staff would suggest an addition to the shared driveway that allows vehicles from pad 7a to be backed around to exit driving forward. That could be accommodated in several ways as shown in green to the left. This driveway detail will have to be included on the building permit application for building pad 7a. 5. If there is a shared driveway, then a shared driveway access and maintenance agreement shall be submitted for review and approval with the final plat. This will be recorded in conjunction with the Final Plat. The driveway shared between Lots 6 and 7 has an easement/maintenance agreement. It has been submitted to the City and found satisfactory by the City Attorney. The agreement must be filed together with the Final Plat for recording with Washington County. 6. The entire property shall be rezoned to RA – One Family Residential prior to the issuance of a building permit. Heritage Ridge August 15, 2018 Page 4 A minor Comprehensive Plan Amendment is needed in order to return this property to the RA Zoning it had before this project was initiated. Unfortunately, Comprehensive Plan Amendments are not being accepted by the Metropolitan Council at this time. Instead, minor Comp Plan Amendments, such as this, are to be included in the 2040 Comp Plan Update that the City is required to submit this fall. So, staff recommends that the City Council conduct a first and second reading of a rezoning ordinance, but that the rezoning not take effect until the 2040 Comp Plan is approved by the Metropolitan Council. To prevent the unlikely scenario of one of the new houses being converted into a duplex before the rezoning to RA takes effect, staff recommends simply adding a condition that though the property is zoned RB on an interim basis, conversions to duplexes will not be permitted. 7. Civil engineering plans submitted with final plat application materials must be consistent with the City Engineer comments found in this report, and the plans must be found satisfactory to the City Engineer. This condition is met, but will be included in the development agreement for this project. 8. The amended preliminary plat shall be reviewed by the Brown’s Creek Watershed District prior to the submittal of the final plat. A BCWD permit shall be required. District recommended conditions will be incorporated by reference into this approval. The permit has been issued. 9. All electrical and communications utility lines shall be buried. This shall be specified in the plans submitted for final plat approval. This condition will be included in the development agreement for this project. 10. All of the stormwater infiltration ponds and basins must be privately maintained. A Home Owner’s Association will be required to maintain the ponds and basins, as will associated maintenance documents that will have to be filed in chain of title. These must be submitted to the City for approval of form and content together with Final Plat application materials. Home Owner’s Association documents have been provided to the City and found satisfactory by the City Attorney and City Engineer. These will have to be filed together with the Final Plat for recording with Washington County. 11. Home Owner’s Association documents including stormwater facilities maintenance, and outlot ownership must be submitted with final plat application Heritage Ridge August 15, 2018 Page 5 for approval by the City. When approved by the City, they must be filed together with the Final Plat. Home Owner’s Association documents have been provided to the City and found satisfactory by the City Attorney and City Engineer. These will have to be filed together with the Final Plat for recording with Washington County. 12. A total of 42 trees shall be planted on private property. 24 of these trees will be planted three per lot and may be installed after new home construction has been completed. But, if the three per lot plantings wait until after home construction, then cost of the trees must be escrowed with the City. Details of this escrow will be included in the development agreement for the project. At $250 per tree for the 21 trees that will be planted after houses are constructed, a total of $5,250 will need to be deposited with the City as an escrow. These funds are to be deposited with the City prior to release of the plat from City offices for recording with Washington County. As each home is constructed, the three trees are planted for that lot, and the City inspects the plantings, the escrow amount for that lot can be released. 13. This development will be responsible for paying City park and trail fees of $2,500 per lot (with credit given for the original homestead). This $15,000 in fees will be due prior to release of the final plat from the City for recording with Washington County. This condition will be included in the development agreement for this project. 14. This development shall be responsible for paying sanitary and municipal water fees associated with the “North Hill Project”, in an amount established by the City Council. Timing for payment of these fees must be included in the development agreement for this project. The amount of $12,061 per unit was established by the City Council. The farm house on the property was already assessed for this. So, six lots will be responsible for the payment, for a total of $72,366 will be due to the City prior to release of the plat from City offices for filing with Washington County. The development agreement itself is nearing final draft form but will need to be signed by the developer prior to the pre-construction meeting and prior to release of the Final Plat from City Offices. This language will be included in the development agreement. 15. Pruning and grading near any of the oak trees to be saved shall not occur between April 15th and July 1st, unless a professional forester has prepared an oak impact plan that is approved by the City in advance of work on site. Heritage Ridge August 15, 2018 Page 6 This condition will be included in the development agreement for this project. 16. Either monument signage and street lighting must be approved with the final plat, or neither will be permitted in the future. The monument sign standards include: limit the height to 6 feet; must be on private property; must be landscaped; has to be maintained by a Home Owner’s Association; cannot be internally lit; and if it is not on HOA owned property, a sign easement is required. The proposed sign is 4 feet tall by 6 feet wide. It will be landscaped and have external lighting. The sign will be maintained by the HOA, but it will be on private property. So, a sign easement/maintenance agreement has been submitted and found satisfactory by the City Attorney. This document must be executed and filed with Washington County prior to issuance of a sign permit. ALTERNATIVES The City Council has the following alternatives: 1. Approve the Final Plat by adopting the attached Final Plat Resolution. 2. Deny the Final Plat, if it is found inconsistent with the approved Preliminary Plat. 3. Table action on the Final Plat for more information. RECOMMENDATION Staff recommends approving the Final Plat and development agreement with the conditions found above and in the attached development agreement. Attachments: Final Plat Resolution (Development Agreement will be available at Council meeting) Final Plat Monument sign information Development Plans RESOLUTION NO. CITY OF STILLWATER WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING THE FINAL PLAT FOR HERITAGE RIDGE AND AUTHORIZING ENTERING INTO A DEVELOPMENT AGREEMENT WITH FAIRWAY DEVELOPMENT LLC CASE NO. 2018-45 WHEREAS, Sterling Black, Fairway Development, LLC (“Developer”) made application for approval of the Final Plat known as HERITAGE RIDGE; and WHEREAS, on August 23, 2017 the Stillwater Planning Commission held a public hearing and recommended approval of the Preliminary Plat; and WHEREAS, on September 5, 2017 the City Council held a public hearing on the Preliminary Plat and preliminary plans and approved them; and WHEREAS, on August 21, 2018 the Stillwater City Council reviewed the Final Plat and final plans for HERITAGE RIDGE and found them to be consistent with the Preliminary Plat and plans. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Stillwater hereby approves the Final Plat for HERITAGE RIDGE with the following conditions: 1. The Developer shall enter into the attached Development Agreement with the City, which contains all the conditions outlined in the Staff Report dated August 15, 2018, subject to minor modification by the City Attorney; and 2. The property shall be developed in conformance with RA, Single Family Residential zoning district standards. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council of the City of Stillwater hereby authorizes the Mayor and City Clerk to execute the attached Development Agreement with the Developer. Enacted by the City Council of the City of Stillwater, Minnesota this 21st day of August, 2018. Page 2 of 2 CITY OF STILLWATER Ted Kozlowski, Mayor ATTEST: Diane F. Ward, City Clerk HERITAGEPLACEBLOCK 11234567OUTLOT AHERITAGE RIDGENORTHAS SHOWN WITHIN ONE YEAR AFTER THE RECORDING DATE OF THIS PLAT.UNLESS OTHERWISE INDICATED. THESE MONUMENTS WILL BE PLACED DENOTES SET 1/2 INCH X 18 INCH IRON PIPE MARKED R.L.S. 25718 N01 13'15"W(NOT TO SCALE)NORTHTHE ORIENTATION OF THIS BEARING SYSTEM IS BASED ON THE WEST LINE OF THE NW 1/4 OF SECTION 21, TOWNSHIP 30 NORTH, RANGE 20 WEST, AND IS ASSUMED TO HAVE THE BEARING OF DENOTES FOUND JUDICIALLANDMARK PER INTERLOCUTORYORDER COURT FILE NO.SC5-04-4618 AND C0-041-4512.SEE BELOW FOR JUDICIAL LANDMARKFOUND.SECTION 21, T30N,R20W, WASHINGTON COUNTY, MINNESOTAVICINITY MAPDENOTES DISTANCE PER PLAT OF BROWN'S CREEK HEIGHTSPLATSHEET 2 OF 2 SHEETSLAND SURVEYING, INCCORNERSTONESCALE IN FEETSCALE: 1 INCH = 40 FEET040801010ARE SHOWN AS THUS:DRAINAGE AND UTILITY EASEMENTS(NOT TO SCALE)55BEING 10 FEET IN WIDTH AND ADJOININGSTREET LINES, REAR LOT LINES ANDBOUNDARY LINES AND BEING 5 FEET INWIDTH AND ADJOINING LOT LINES UNLESSOTHERWISE SHOWN ON THE PLAT.J UDICIALLANDMARKRLS 25718 YOUR STORY. YOUR BRAND. LAURI MATENAER [LAURI@ DISCOVERTHECLARITY.COM] WENDI ST.SAUVER [WENDI@ DISCOVERTHECLARITY.COM] Monument Signage for Residential Development. Bringing together the elements of reclaimed wood and patina steel create that perfect combination of Modern Farmhouse style in this monument signage. Stillwater has the historic charm with the quaint downtown yet an modern artsy vibe from the diverse shopping, restaurants and entertainment. The slab of this would be reclaimed wood and the name would sit upon a raw steel picture ledge frame with patina steel naming convention. Prairie grasses, native plantings and mulch would be placed at the base. Either Ground uplighting or lighing from behind the lettering would illuminate the signage. Sizing: 12' Wide x 4' Tall* *Sizing is an estimate, to be finalized once design is chosen. OPTION 2 WOOD/STEEL 18 SIGNEASEMENTHER I T A G E P L A C E HAZEL STREETHAZEL COURTOUTLOT A 1 PROJ. NO.Sign Easement Exhibit ______1 OF 1 LAND SURVEYING, INC.CORNERSTONE Suite #1 6750 Stillwater Blvd. N. Stillwater, MN 55082 Phone 651.275.8969Fax 651.275.8976 dan@cssurvey.net Sign Easement Description: Sign Easement (to be recorded after the plat is recorded) That part of Lot 8, Block 1, HERITAGE RIDGE, Washington County, Minnesota described as BEGINNING at the southeast corner of said Lot 8; thence northerly along the easterly line of said Lot 8 a distance of 35.00 feet; thence southwesterly to a point on the southwesterly line of said Lot 8 distant 35.00 feet from the point of beginning; thence southeasterly along said southwesterly line a distance of 35.00 feet to the point of BEGINNING. SHEET LC05026 0 NORTH 40 80 Phone (952) 937-5150 12701 Whitewater Drive, Suite #300 Fax (952) 937-5822 Minnetonka, MN 55343 Toll Free (888) 937-5150 • • • • • • • • • Phone (952) 937-5150 12701 Whitewater Drive, Suite #300 Fax (952) 937-5822 Minnetonka, MN 55343 Toll Free (888) 937-5150 Phone (952) 937-5150 12701 Whitewater Drive, Suite #300 Fax (952) 937-5822 Minnetonka, MN 55343 Toll Free (888) 937-5150 NOTE: THE ABOVE LANDSCAPE TOTALS ARE GIVEN AS A CONVENIENCE TO THE LANDSCAPE CONTRACTOR. THE LANDSCAPE CONTRACTOR IS RESPONSIBLE FOR VERIFYING COUNTS WITH PLANTING PLAN. NOT TO SCALE 2 COMMON NAMEQTY ID SIZEBOTANICAL NAME METHOD HEIGHT WIDTH SM 2.5" CAL. B&B 50'-75' 40'-50' RM Sugar Maple Swamp White Oak Northwood Red Maple Acer saccharum Quercus bicolor Acser rubrum 'Northwood' WO SPACING AS SHOWN AS SHOWN AS SHOWN 50' 35' 50'-60' 40'-50' (AT INSTALLATION)(AT MATURITY) (AT MATURITY) AB 50'-60' 40'-50'Autumn Blaze Maple Acer x freemanii 'Jeffers Red'AS SHOWN COMMENT WRAP TREES - FASTEN TOP AND BOTTOM, REMOVE BY APRIL 1ST OR PAINT TRUNKS WITH WHITE PAINT MIX(1/3 WHITE LATEX PAINT + 2/3 WATER). HA Hackberry Celtis occidentalis9 10 6 7 4 OVERSTORY DECIDUOUS YARD TREE NOTE: 1. OVERSTORY DECIDUOUS BUFFER TREES AND EVERGREEN BUFFER TREES TO BE INSTALLED AFTER UTILITIES AND STREETS ARE COMPLETED. OVERSTORY YARD TREES TO BE INSTALLED AFTER HOME CONSTRUCTION COMPLETED. NOT TO SCALE 1 GENERAL: 1. ALL PLANT MATERIAL INSTALLATION, INCLUDING SEED AND SOD, SHALL BE COMPLETED PRIOR TO SUBSTANTIAL COMPLETION. 2. CONTRACTOR SHALL LOCATE AND VERIFY ALL UTILITIES, INCLUDING IRRIGATION LINES, WITH THE OWNER FOR PROPRIETARY UTILITIES 48 HOURS BEFORE DIGGING. CONTRACTOR SHALL CONTACT EITHER COMMON GROUND ALLIANCE AT 811 OR CALL811.COM OR GOPHER STATE ONE CALL AT 651-681-7326 (TWIN CITIES METRO AREA) OR 800-252-1166 (GREATER MINNESOTA) OR WEB AT www.gopherstateonecall.org. CONTRACTOR SHALL BE RESPONSIBLE FOR THE PROTECTION AND REPAIR OF ANY DAMAGES TO SAME. NOTIFY THE LANDSCAPE ARCHITECT OF ANY CONFLICTS TO FACILITATE PLANT RELOCATION. 3. THE CONTRACTOR SHALL BE RESPONSIBLE FOR COMPLYING WITH ALL APPLICABLE CODES, REGULATIONS, AND PERMITS GOVERNING THE WORK. 4. ALL PLANT MATERIAL QUANTITIES, SHAPES OF BEDS AND LOCATIONS SHOWN ARE APPROXIMATE. CONTRACTOR SHALL BE RESPONSIBLE FOR COMPLETE COVERAGE OF ALL PLANTING BEDS AT SPACING SHOWN AND ADJUSTED TO CONFORM TO THE EXACT CONDITIONS OF THE SITE. THE LANDSCAPE ARCHITECT SHALL APPROVE THE STAKING LOCATION OF ALL PLANT MATERIALS PRIOR TO INSTALLATION.ACTUAL LOCATION OF PLANT MATERIAL IS SUBJECT TO FIELD AND SITE CONDITIONS. 5. NO PLANTING WILL BE INSTALLED UNTIL ALL GRADING AND CONSTRUCTION HAS BEEN COMPLETED IN THE IMMEDIATE AREA. 6. NO PLANT MATERIAL SHALL BE SUBSTITUTED WITHOUT THE APPROVAL OF THE LANDSCAPE ARCHITECT OR OWNER. ALL SUBSTITUTIONS MUST BE APPROVED PRIOR TO SUBMISSION OF ANY BID AND/OR QUOTE BY THE LANDSCAPE CONTRACTOR. THE LANDSCAPE ARCHITECT RESERVES THE RIGHT TO REJECT ANY PLANTS WHICH ARE DEEMED UNSATISFACTORY BEFORE, DURING, OR AFTER INSTALLATION. 7. THE PLAN TAKES PRECEDENCE OVER THE LANDSCAPE LEGEND IF DISCREPANCIES EXIST. THE SPECIFICATIONS TAKE PRECEDENCE OVER THE PLANTING NOTES AND GENERAL NOTES. 8. CONTRACTOR SHALL PROVIDE GUARANTEE OF ALL PLANT MATERIALS FOR TWO COMPLETE GROWING SEASONS (APRIL 1 - NOVEMBER 1)YEAR . THE GUARANTEE BEGINS ON THE DATE OF THE LANDSCAPE ARCHITECT'S OR OWNER'S WRITTEN ACCEPTANCE OF THE INITIAL PLANTING. THE GUARANTEE SHALL COVER THE FULL COST OF REPLACEMENT INCLUDING LABOR AND PLANTS. REPLACEMENT PLANT MATERIAL SHALL HAVE A ONE YEAR GUARANTEE COMMENCING UPON PLANTING. NY PLANT MATERIAL WHICH DIES, TURNS BROWN, OR DEFOLIATES (PRIOR TO TOTAL ACCEPTANCE OF THE WORK) SHALL BE PROMPTLY REMOVED FROM THE SITE AND REPLACED WITH MATERIAL OF THE SAME SPECIES, QUANTITY, AND SIZE AND MEETING ALL LANDSCAPE LEGEND SPECIFICATIONS. 9. CONTRACTOR SHALL PROVIDE NECESSARY WATERING OF PLANT MATERIALS UNTIL THE PLANT IS FULLY ESTABLISHED OR IRRIGATION SYSTEM IS OPERATIONAL. OWNER WILL NOT PROVIDE WATER FOR CONTRACTOR. 10. PLANTS TO MEET AMERICAN STANDARD FOR NURSERY STOCK (ANSI Z60.1-2004 OR MOST CURRENT VERSION) REQUIREMENTS FOR SIZE AND TYPE SPECIFIED. 11. REPAIR ALL DAMAGE TO PROPERTY FROM PLANTING OPERATIONS AT NO COST TO OWNER SOIL PREPARATION: 12. TOPSOIL SHALL BE LOCAL FERTILE AGRICULTURAL SOIL FREE OF SUBSOILS, ROCKS, CLAYS, PLANTS, WEEDS, ROOTS AND OTHER IMPURITIES. PH VALUE SHALL BE BETWEEN 5.4 AND 7.0. 13. REMOVE DEBRIS AND WEEDS FROM SUBSOIL. 14. THE NEED FOR SOIL AMENDMENTS SHALL BE DETERMINED UPON SITE SOIL CONDITIONS PRIOR TO PLANTING. LANDSCAPE CONTRACTOR SHALL PERFORM A SOIL TEST PRIOR TO INSTALLATION AND NOTIFY LANDSCAPE ARCHITECT FOR THE NEED OF ANY SOIL AMENDMENTS. 15. SPREAD TOPSOIL TO A MINIMUM DEPTH OF 6". TOPSOIL PLACEMENT SHALL TAKE PLACE DURING DRY WEATHER. PREPARE TOPSOIL SO THAT IT IS FREE OF DEBRIS AND GRADED TO DRAIN AS INDICATED ON GRADING PLANS. 16. LIGHTLY COMPACT TOPSOIL AFTER PLACEMENT AND PROHIBIT CONSTRUCTION TRAFFIC FROM AREAS WITH TOPSOIL. PLANTING: 17. ALL PLANTS TO BE SPECIMEN GRADE, MINNESOTA-GROWN AND/OR HARDY. SPECIMEN GRADE SHALL ADHERE TO, BUT IS NOT LIMITED BY, THE FOLLOWING STANDARDS: ALL PLANTS SHALL BE FREE FROM DISEASE, PESTS, WOUNDS, SCARS, ETC. ALL PLANTS SHALL BE FREE FROM NOTICEABLE GAPS, HOLES, OR DEFORMITIES. ALL PLANTS SHALL BE FREE FROM BROKEN OR DEAD BRANCHES. ALL PLANTS SHALL HAVE HEAVY, HEALTHY BRANCHING AND LEAFING. CONIFEROUS TREES SHALL HAVE AN ESTABLISHED MAIN LEADER AND A HEIGHT TO WIDTH RATIO OF NO LESS THAN 5:3. 18. PLANTS TO BE INSTALLED AS PER MNLA & ANSI STANDARD PLANTING PRACTICES. 19. PLANTS SHALL BE IMMEDIATELY PLANTED UPON ARRIVAL AT SITE. PROPERLY HEEL-IN MATERIALS IF NECESSARY; TEMPORARY ONLY. 20. PRIOR TO PLANTING, FIELD VERIFY THAT THE ROOT COLLAR/ROOT FLAIR IS LOCATED AT THE TOP OF THE BALLED & BURLAP TREE. IF THIS IS NOT THE CASE, SOIL SHALL BE REMOVED DOWN TO THE ROOT COLLAR/ROOT FLAIR. WHEN THE BALLED & BURLAP TREE IS PLANTED, THE ROOT COLLAR/ROOT FLAIR SHALL BE EVEN OR SLIGHTLY ABOVE FINISHED GRADE. 21. OPEN TOP OF BURLAP ON BB MATERIALS; REMOVE POT ON POTTED PLANTS; SPLIT AND BREAK APART PEAT POTS. VERTICALLY SCORE ROOT BALLS PRIOR TO INSTALLATION. 22. PRUNE PLANTS AS NECESSARY - PER STANDARD NURSERY PRACTICE AND TO CORRECT POOR BRANCHING OF EXISTING AND PROPOSED TREES. 23. WRAP ALL SMOOTH-BARKED TREES - FASTEN TOP AND BOTTOM, REMOVE BY APRIL 1ST OR PAINT TRUNKS WITH WHITE PAINT MIX(1/3 WHITE LATEX PAINT +23 WATER). 24. STAKING OF TREES AS REQUIRED; REPOSITION, PLUMB AND STAKE IF NOT PLUMB AFTER ONE YEAR. 25. BACKFILL SOIL AND TOPSOIL TO ADHERE TO MN/DOT STANDARD SPECIFICATION 3877 (SELECT TOPSOIL BORROW) AND TO BE EXISTING TOP SOIL FROM SITE FREE OF ROOTS, ROCKS LARGER THAN ONE INCH, SUBSOIL DEBRIS, AND LARGE WEEDS UNLESS SPECIFIED OTHERWISE. MINIMUM 6" DEPTH TOPSOIL FOR ALL LAWN GRASS AREAS AND 12" DEPTH TOPSOIL FOR TREE, SHRUBS, AND PERENNIALS. 26. WOOD MULCH SHALL BE AT ALL TREE, SHRUB, PERENNIAL, AND MAINTENANCE AREAS, COLOR SHALL BE DARK BROWN. TREE AND SHRUB PLANTING BEDS SHALL HAVE 4" DEPTH OF SHREDDED HARDWOOD MULCH. SHREDDED HARDWOOD MULCH TO BE USED AROUND ALL PLANTS WITHIN TURF AREAS. PERENNIAL AND ORNAMENTAL GRASS BEDS SHALL HAVE 3" DEPTH SHREDDED HARDWOOD MULCH. MULCH TO BE FREE OF DELETERIOUS MATERIAL. 50'-75' 40'-50'AS SHOWN EVERGREEN BUFFER TREE EVERGREEN TREE - 6 OVERSTORY TREE - 36 WP 50'-80' 30'-40'White Pine Pinus strobus AS SHOWN66' HT. B&B OVERSTORY DECIDUOUS BUFFER TREE **SIGN TO DENOTE MIDDLE ZONE WATERSHED BUFFER NOTE: ALL DISTURBED AREAS WITHIN RESIDENTIAL LOTS TO BE SEEDED WITH TURF GRASS SEED 10938772v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL CITY OF STILLWATER, MINNESOTA HELD: AUGUST 21, 2018 Pursuant to due call, a regular meeting of the City Council, City of Stillwater, Washington County, Minnesota, was duly held at the City Hall on August 21, 2018, at 7:00 P.M., for the purpose, in part, of considering proposals and awarding the competitive negotiated sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A. The following members were present: and the following were absent: In accordance with Resolution No. ______ adopted by the City Council on July 17, 2018, the City Clerk presented proposals on $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A, which were received, opened and tabulated at 10:30 A.M., Central Time, at the offices of Springsted Minnesota ("Springsted") on this same day: Bidder Interest Rates True Interest Cost See attached The Council then proceeded to consider and discuss the proposals, after which member _________________ introduced the following resolution and moved its adoption: RESOLUTION NO. _______ RESOLUTION ACCEPTING PROPOSAL ON THE COMPETITIVE NEGOTIATED SALE OF $5,935,000 GENERAL OBLIGATION CAPITAL OUTLAY BONDS, SERIES 2018A, PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of Stillwater, Minnesota (the "City") has heretofore determined and declared that it is necessary and expedient to issue $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A (the "Bonds" or, individually, a "Bond"), pursuant to Minnesota Statutes, Chapter 475, and Sections 10.4, 10.5 and 10.6 of the City's Charter, to finance (i) renovations of the police station; (ii) renovation and remodeling of the City Hall; (iii) the 2018 capital outlay needs of various City departments; (iv) street improvement projects; and (iv) an addition to the St. Croix Valley Recreational Center (the "Project") as more fully described in the resolution duly adopted by the City Council on July 17, 2018; and B. WHEREAS, the City has retained Springsted Incorporated, in St. Paul, Minnesota ("Springsted"), as its independent municipal advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, 10938772v1 2 Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by Springsted; and C. WHEREAS, it is in the best interests of the City that the Bonds be issued in book- entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of _______________________________ (the "Purchaser"), to purchase the Bonds in accordance with the Terms of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the sum of $___________, plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received, is accepted and the Bonds are awarded to the Purchaser. The City Clerk is directed to retain the deposit of the Purchaser and to forthwith return to the unsuccessful bidders their good faith checks or drafts. 2. Bond Terms. (a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds shall be dated September 20, 2018, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R 1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations"). The Bonds shall mature on February 1 in the years and amounts as follows: Year Amount Year Amount 2019 2030 2020 2031 2021 2032 2022 2033 2023 2034 2024 2035 2025 2036 2026 2037 2027 2038 2028 2039 2029 All dates are inclusive. As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Book Entry Only System. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its 10938772v1 3 successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. 10938772v1 4 (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10, references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book-entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than 15 calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (c) Termination of Book-Entry Only System. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the 10938772v1 5 functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 11. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph 10. (d) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 3. Purpose. The Bonds shall provide funds to finance the Project. The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Project shall proceed with due diligence to completion. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2019, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year Interest Rate Maturity Year Interest Rate 2019 2030 2020 2031 2021 2032 2022 2033 2023 2034 2024 2035 2025 2036 2026 2037 2027 2038 2028 2039 2029 5. Redemption. All Bonds maturing on February 1, 2028, and thereafter, shall be subject to redemption and prepayment at the option of the City on February 1, 2027, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the amounts and maturities of the Bonds to be prepaid shall be at the discretion of the City; and if only part of the 10938772v1 6 Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds at least thirty (30) days prior to the date fixed for redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the holder thereof or the Holder's attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. U.S. Bank National Association, in St. Paul, Minnesota is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: 10938772v1 7 UNITED STATES OF AMERICA STATE OF MINNESOTA WASHINGTON COUNTY CITY OF STILLWATER R-_______ $_________ GENERAL OBLIGATION CAPITAL OUTLAY BOND, SERIES 2018A Interest Rate Maturity Date Date of Original Issue CUSIP ____% February 1, ____ September 20, 2018 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THE CITY OF STILLWATER, WASHINGTON COUNTY, MINNESOTA (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2019, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of U.S. Bank National Association, in St. Paul, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. 10938772v1 8 Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2028, and thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1, 2027, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the amounts and maturities of the Bonds to be prepaid shall be at the discretion of the Issuer, and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected Holder of the Bonds at least thirty (30) days prior to the date fixed for redemption. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $5,935,000, all of like date of original issue and tenor, except as to number, maturity, interest rate and denomination, issued pursuant to and in full conformity with the Constitution, Charter of the Issuer and laws of the State of Minnesota, and a resolution adopted by the City Council on August 21, 2018 (the "Resolution"), for the purpose of providing money to finance the Issuer's various capital outlay projects. This Bond is payable out of the General Obligation Capital Outlay Bonds, Series 2018A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the 10938772v1 9 rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution, Charter of the Issuer and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional, charter or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Stillwater, Washington County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its 10938772v1 10 Mayor and its Clerk, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION St. Paul, Minnesota Bond Registrar By Authorized Signature Registrable by: U.S. BANK NATIONAL ASSOCIATION Payable at: U.S. BANK NATIONAL ASSOCIATION CITY OF STILLWATER, WASHINGTON COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile City Clerk 10938772v1 11 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - ___________ as custodian for _____________ (Cust) (Minor) under the _____________________ Uniform Transfers to Minors Act (State) Additional abbreviations may also be used though not in the above list. _________________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________ the within Bond and does hereby irrevocably constitute and appoint ________ attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: ________________ ___________________________________________ Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: ___________________________ Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: ________________________________________ ________________________________________ ________________________________________ (Include information for all joint owners if the Bond is held by joint account.) 10938772v1 12 8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of the City by the signatures of its Mayor and Clerk and be sealed with the seal of the City; provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate seal has been omitted. In the event of disability or resignation or other absence of either officer, the Bonds may be signed by the manual or facsimile signature of the officer who may act on behalf of the absent or disabled officer. In case either officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and, by inserting as the date of registration in the space provided, the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue which is September 20, 2018. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City. 10938772v1 13 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or the Holder's attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The City Clerk is hereby authorized to negotiate and execute the terms of said agreement. 11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Capital Outlay Bonds, Series 2018A Fund" (the "Fund"), to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other accounts maintained in the official financial records of the City. The Fund shall be 10938772v1 14 maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund the following separate accounts: (a) Construction Account. To the Construction Account there shall be credited the proceeds of the sale of the Bonds. From the Construction Account there shall be paid all costs and expenses of making the Project, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. The moneys in the Construction Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes herein levied; and provided further that if upon completion of the Project there shall remain any unexpended balance in the Construction Account, the balance shall be transferred by the Council to the Debt Service Account. (b) Debt Service Account. There are hereby pledged and there shall be credited to the Debt Service Account: (i) available City funds in the amount of $_______ to pay a portion of the interest accruing on the Bonds due on or before February 1, 2019; (ii) collections of all taxes heretofore, herein or hereafter levied for the payment of the Bonds and interest thereon; (iii) all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (iv) all investment earnings on moneys held in the Debt Service Account; and (v) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from the Debt Service Account as provided by law. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an amount not greater than five percent of the proceeds of the Bonds. To this effect, any sums from time to time held in the Construction Account or Debt Service Account (or any other City fund or account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Construction Account or Debt Service Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 16. Tax Levy; Coverage Test. To provide moneys for payment of the principal and interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct 10938772v1 15 annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levy Year of Tax Collection Amount See attached Levy Schedule in Exhibit B For the payment of the principal and interest on the Bonds maturing in 2019, the City has heretofore levied in 2017 a direct ad valorem in the amount of $450,000 which was spread upon the tax rolls and will be collected with and as part of other general property taxes in the City. The tax levies are such that if collected in full they, together with estimated collections of other monies herein pledged for the payment of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 17. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 18. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: 10938772v1 16 (a) Not later than sixty days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Project; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Project, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not exceed twenty percent of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Bonds. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds and in all events within the period ending on the date which is the later of three years after payment of the Reimbursement Expenditure or one year after the date on which the Project to which the Reimbursement Expenditure relates is first placed in service. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bonds are issued, shall be treated as made on the day the Bonds are issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect that such action will not impair the tax-exempt status of the Bonds. 19. Continuing Disclosure. The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to the Municipal Securities Rulemaking Board (the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. 10938772v1 17 (b) Provide or cause to be provided to the MSRB notice of the occurrence of certain events with respect to the Bonds in not more than ten (10) business days after the occurrence of the event, in accordance with the Undertaking. (c) Provide or cause to be provided to the MSRB notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking, in not more than ten (10) business days following such occurrence. (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and Clerk of the City, or any other officer of the City authorized to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 20. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 21. Certificate of Registration. The City Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Washington County, Minnesota, together with such other information as the County Auditor shall require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's Bond Register, and that the tax levy required by law has been made. 22. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 23. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such 10938772v1 18 a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 24. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment earnings to the United States. The City expects to satisfy the 18-month expenditure exemption for gross proceeds of the Bonds as provided in Section 1.148-7(d)(1) of the Regulations. The Mayor and/or Manager are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the City. 25. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2018 will not exceed $10,000,000; (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2018 have been designated for purposes of Section 265(b)(3) of the Code; and (f) the aggregate face amount of the Bonds does not exceed $10,000,000. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 26. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 27. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. 10938772v1 19 The motion for the adoption of the foregoing resolution was duly seconded by member _____________ and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon the resolution was declared duly passed and adopted. Adopted August 21, 2018. Approved: ____________________________ Mayor Attest: ___________________ City Clerk 10938772v1 20 STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF STILLWATER I, the undersigned, being the duly qualified and acting City Clerk of the City of Stillwater, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as such minutes relate to considering proposals and awarding the sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A. WITNESS my hand on August ___, 2018. ______________________________ City Clerk 10938772v1 A-1 EXHIBIT A PROPOSALS [To be supplied by Springsted Incorporated] 10938772v1 B-1 EXHIBIT B SCHEDULES [To be supplied by Springsted Incorporated] 10938772v1 2 STATE OF MINNESOTA COUNTY AUDITOR'S CERTIFICATE COUNTY OF WASHINGTON AS TO TAX LEVY AND REGISTRATION I, the undersigned, being the duly qualified and acting County Auditor of Washington County, Minnesota, DO HEREBY CERTIFY that on the date hereof there was filed in my office a certified copy of a resolution adopted on August 21, 2018 by the City Council of the City of Stillwater, Minnesota, authorizing the issuance of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A (the "Bonds"), and levying a tax for the payment thereof, together with full information regarding the Bonds for which the tax was levied; and the Bonds have been entered in my Bond Register and the tax levy required by law has been made. WITNESS my hand and the seal of the County Auditor on _______________, 2018. ________________________________ County Auditor (SEAL) PLANNING REPORT DATE: August 17, 2018 TO: Mayor & Council members APPLICANT: John Koch, Owner of Portside REQUEST: Trash enclosure on Water Street PREPARED BY: Bill Turnblad, Community Development Director REQUEST John Koch of J-Group, owner of Portside, is requesting the City to allow him to construct a trash enclosure on south Water Street for the combined use of Alfresco, Portside and Midtown Antique Mall. The enclosure would be financed and constructed by John Koch, but would be owned by the City. The enclosure is proposed to be located as shown to the left. It would replace two on-street parking spaces, which can be seen in the picture on the next page. DETAILS The 10’x18‘enclosure will have the same dimensions and design as the one owned by the City on Water Street just to the north. It will have room for recycling, trash and a grease container. Page 2 Mr. Koch has explored the possibility of building the trash enclosure on the abutting pedestrian “island” immediately to the south of the proposed trash enclosure. But, private utility infrastructure is located there, and though he spent considerable time working with the utility company, it is not possible to co-locate the trash enclosure there. The utility company stated that if the trash enclosure were constructed on the island, then access to the infrastructure for maintenance purposes would not be possible. Several years ago the City attempted to construct an identical enclosure outside of the Midtown Antique Mall (not far from the location proposed by Mr. Koch), but the owner of the building objected. This time it appears that the owner is not opposed and would share the facility. RECOMMENDATION Though the Downtown Parking Commission would prefer not to lose any more public parking spaces, they understand the public health and aesthetic issues associated with the lack of a trash enclosure on south end of Water Street. So, at their meeting on August 16, 2018 they unanimously recommended that the City Council approve the request with two conditions: 1. The three building owners would enter into a use agreement with the City prior to starting any construction work. 2. The design, location and construction methods must be approved by the City prior to starting any construction work. Staff also recommends the following additional conditions: 1. If the design of the trash enclosure is not substantially similar (as determined by City staff) to the one constructed to the north on Water Street, then the Heritage Preservation Commission will be required to review a design permit for the structure. 2. A permit to work within the city right-of-way must be obtained from the City Engineering Department. 3. The choice of contractor must be approved by the Community Development Department prior to commencement of any work. Page 3 ALTERNATIVES The City Council has several alternative actions available. A. Approve the Koch request with at least the conditions listed below. Staff will then draft a use agreement for the City Council to approve at a future Council meeting. i. The three building owners must enter into a use agreement with the City prior to starting any construction work. ii. The design, location and construction methods must be approved by the City prior to starting any construction work. iii. If the design of the trash enclosure is not substantially similar (as determined by City staff) to the one constructed to the north on Water Street, then the Heritage Preservation Commission will be required to review a design permit for the structure. iv. A permit to work within the city right-of-way must be obtained from the City Engineering Department. v. The choice of contractor must be approved by the Community Development Department prior to commencement of any work. B. Deny the Koch request. C. Table the Koch request for more information. bt WASHINGTON COUNTY BOARD OF COMMISSIONERS CONSENT CALENDAR * AUGUST 21, 2018 The following items are presented for Board approval/adoption: DEPARTMENT/AGENCY Administration Community Services Public Works ITEM A. Approve August 7, 2018, County Board meeting minutes. B. Appoint Paul Richert, Scandia, and reappoint Andrew Weaver, May Township, and Wade Johnson, May Township, to the Carnelian-Marine-St. Croix Watershed District to terms ending 6/21/2021. C. Approval of Advisory Committee reappointments: Dawn Hyland, LaJuan McIntyre, Jennifer Dailey, Janice Hayne, and Michael Laughton to the Child Protection Citizen Review Panel; Sara Murray to the Workforce Development Board. D. Resolution -Amend Resolution No.2018-065, adopted June 26, 2018, to add language that delegates authority to the Community Services Director to sign the grant agreement and acknowledge the county's allocation of the 20% match to the Minnesota Department of Transportation's 2019 Section 5310 grant. E. Resolution -Request funds from the Minnesota Department of Transportation (MnDOT) for the fiscal years 2022 and 2023 from the Highway Safety Improvement Program (HSIP) to construct left turn lanes along County State Aid Highway (CSAH) 15 (Manning Avenue) at 124th Street, CSAH 7 (Square Lake Trail) and Lynch Road in May Township. *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 listening devices are avallable for use in the County Board Room If you need assistance due to disability or language baffler, please call (651) 430-6000 EQUAL EMPLOYMENT OPPORTUNITY/ AFFIRMATIVE ACTION EMPLOYER August 14, 2018, County Board Meeting Agenda Continued 10. 10: 15-11: 15 2019 Proposed Budget Workshops -Molly O'Rourke, County Administrator and Kevin Corbid, Deputy Administrator A. Introduction to the Proposed 2019 Budget B. Washington County Community Development Agency-Barbara Dacy, Director C. Internal Services: Administration, Accounting and Finance, Human Resources, Information Technology; and General Operations and Commissioners 11 :20-11 :35 Break 11. 11 :35-12:15 Board Workshop with Administration -June Mathiowetz, Senior Planner Land and Water Legacy Program -Discuss Conservation Easement Acquisition in the City of Hugo, and Funding for Property in the City of Bayport Assistive listenfng devices are available for use in the County Board Room If you need assistance due to dfsabllity or language barrier, please calf (651) 430-6000 EQUAL EMPLOYMENT OPPORTUNITY/ AFFIRMATIVE ACTION EMPLOYER WASHINGTON COUNTY BOARD OF COMMISSIONERS CONSENT CALENDAR * AUGUST 14, 2018 The following items are presented for Board approval/adoption: DEPARTMENT/AGENCY Administration Community Services Public Health and Environment Public Works Sheriffs Office ITEM A. Approve county comment letter on the draft City of Lake Elmo Comprehensive Plan. B. Resolution -Approve grant agreement between the Minnesota Department of Veterans Affairs and Washington County in the amount of $17,500 for the period of July 1, 2018 through June 30, 2019. C. Approve the 2019 Ramsey/Washington County Recycling & Energy Board (R&E Board) joint activities budget as recommended by the R&E Board. D. Resolution -Approve 24-hour access/use of two parking spaces on County- owned properties to Disabled American Veterans Minnesota (DAV MN) and the Minneapolis Veterans Affairs Health Care System (MVAHCS). E. Approve a Joint Powers Agreement between the State of Minnesota, acting through its Commissioner of Public Safety on behalf of the Bureau of Criminal Apprehension (BCA), and the Washington County Narcotics Task Force to participate in a Minnesota Anti-Heroin Task Force (AHTF) program. *Consent Calendar items are generally defined as items ofroutine 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 listening devices are available for use in the County Board Room If you need assistance due to disability or language ba"ler, please call (651) 430-6000 EQUAL EMPLOYMENT OPPORTUNITY/ AFFIRMATIVE ACTION EMPLOYER WASHINGTON COUNTY BOARD OF COMMISSIONERS CONSENT CALENDAR * AUGUST 7, 2018 The following items are presented for Board approval/adoption: DEPARTMENT/AGENCY Administration Community Services Property Records and Taxpayer Services Sheriffs Office ITEM A. Approve July 17, 2018 and July 24, 2018, County Board Meeting minutes. B. Adopt Washington County's 2018 Energy Plan. C. Approve county comment letter on the draft City of Scandia Comprehensive Plan. D. Approve 1.0 Full-Time Equivalent (FTE) Social Services Supervisor, Clinical; 3 .2 FTE Senior Social Worker, Clinical; 7.2 FTE Social Worker VII; and 0.5 FTE Case Aide to provide Crisis Response Services. E. Resolution -Approve premises permit application for Arcade Phalen American Legion to conduct gambling at the Disabled Veterans Rest Camp in May Township. F. Approve the plat of St. Croix Knoll Stables Addition in Denmark Township . G. Approve an agreement for assessing services between Washington County and the City of Hugo . H. Approve 1.0 Full-Time Equivalent Residential Property Appraiser. I. Resolution -Appoint a representative and alternate to the Metropolitan Emergency Services Board (MESB) 9-1-1 Technical Operations Committee (TOC). *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. Asslstive /fstening devices are available for use in the County Board Room If you need assistance due to disabllfty or language ba"ier, please call (651) 430-6000 EQUAL EMPLOYMENT OPPORTUNITY/ AFFIRMATIVE ACTION EMPLOYER