HomeMy WebLinkAbout06-09-2021 Regular Meeting
CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
AGENDA
June 9, 2021 at 7:00 P.M.
NOTE: THIS MEETING WILL BE HELD BY WEB CONFERENCE*
A. CALL TO ORDER:
B. ROLL CALL: ANDREWS ___ GUSTAFSON____ LEEHY___
MIAZGA ___ WEHYEE___
STAFF PRESENT: THONGVANH____
C. PRESENTATION
D. APPROVAL OF MINUTES:
1. May 5, 2021 City Council Workshop Minutes
2. May 12, 2021 City Council Regular Minutes
E. PUBLIC HEARINGS:
1. Public Improvement Hearing for Alley Improvements
F. CONSENT AGENDA:
1. General Disbursements through: 6/03/21 $27,909.30
Payroll through: 5/31/21 $19,428.01
2. City License(s)
G: POLICY ITEMS:
1. Suite Living Senior Care of Ramsey Project – Supplement and Amendment of a Trust
Indenture
H. INFORMATION/ANNOUNCEMENTS:
I. COMMUNITY FORUM: Please limit comments to 3 minutes per person. Items brought before the Council will be referred for consideration. Council may ask questions for clarification, but no council action or discussion will be held on these items.
J. ADJOURNMENT:
*You can participate in the meeting by clicking the following Zoom link:
https://us02web.zoom.us/j/89488033956
Toll Free Number:
1-877-853-5247
1-888-788-0099
Webinar ID: 894 8803 3956
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CITY OF FALCON HEIGHTS
City Council Workshop
City Hall
2077 West Larpenteur Avenue
MINUTES
May 5, 2021
6:30 P.M.
NOTE: THIS MEETING WAS HELD BY WEB CONFERENCE
A. CALL TO ORDER: 6:33PM
B. ROLL CALL: ANDREWS _X__ GUSTAFSON__X__ LEEHY_X__
MIAZGA _X__ WEHYEE_X__
STAFF PRESENT: THONGVANH__X__ WALTER_X__
C. PRESENTATIONS:
D. POLICY ITEMS:
1. Speed Limit Evaluation Report
City Engineer Friehammer
In the packet is the Speed Limit Evaluation Report, which I will go through with you tonight.
We are recommending changing the speed limit to 20mph on most streets in Falcon Heights.
We would recommend 25mph on collector roads, with the exception of Roselawn. About 83% of
streets in the City would be reduced to 20. Roselawn is a former Ramsey County road but is
now City road with shared jurisdiction with the City of Roseville.
For Hamline and Hoyt, St. Paul’s report is recommending 25mph. If Falcon Heights adopts this,
it would be signed. Roselawn would have to be done the same way.
Council Member Wehyee
Would we then have to retroactively update the ordinance to update the speed limit on
Roselawn?
City Engineer Freihammer
My recommendation is to adopt an ordinance similar to how Minneapolis and St. Paul have,
which is to delegate authority to the City Engineer to assign the speed limits. If in the future the
Council recommends a change, I would draft a memo and we would discuss it but it would
happen much more quickly. It also allows the Engineer to ensure that speed limits are applied
in a way that is consistent with traffic standards based on data.
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Mayor Gustafson
Would Hoyt to the west of Cleveland also need to be a shared jurisdiction with St. Paul?
City Engineer Freihammer
Yes. St. Paul is recommending 20 mph and we would recommend the same.
Council Member Miazga
I’m wondering if any of my colleagues would be willing to lower the speed limit on Roselawn
to 25 mph.
Council Member Weyhee
Would you recommend traffic calming effects on Roselawn?
City Engineer Freihammer
The road could definitely use some traffic calming. One of the issues is that the roads are in
good condition so the opportunity for a cost-effective reconstruction may not come up for many
years. Just dropping the speed limit to 25 may not be effective, because about half of drivers are
currently driving faster than the posted speed limit of 30 mph. The other thing is enforcement, if
you don’t enforce it people aren’t going to obey the posted speed limit.
Council Member Miazga
I don’t agree with the reasoning that we shouldn’t post the lower speed because we assume
people will drive fast regardless. We should post the lower speed and hope that it has a
deterrent effect, and worry about more enforcement details when we have our new law
enforcement agency.
Council Member Wehyee
I still am unclear what the process will look like in terms of the Council’s responsibilities.
Administrator Thongvanh
The City has to adopt an ordinance that creates a process of changing the speed limit. The
ordinance that St. Paul and Minneapolis adopted authorizes the Engineer to make these
changes. If in the future a change is needed, it doesn’t have to come back to the council, it
would be done with an engineering report and would go into effect. We’ll provide some
communication to the public and we will need to host a public hearing because it’s an
ordinance change. For now, staff will work with the City Attorney to draft the ordinance and
post for the public hearing.
Council Member Andrews
Thank you for your work on this. I think this change will calm some of the people in the
Northome area.
2. Idaho/Iowa Alleyway Petition
City Engineer Freihammer
We received a petition from around 52% of property owners on the block, so we are required to
respond to this issue. The drainage behind two or three of the properties in the alley is very
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poor and below the level of we would consider acceptable drainage in the alley. We did a
survey of the area, there are improvements that could be made. The condition of the alley is fair
to poor. The residents pay for 90% of the costs, generally because the alley is only serving the
adjacent residents.
Our estimate to repair the alley would be $20-30,000 for that one block. If the Council would
like to include this repair in the pavement management project, we would just need to do a
change order. We would need to complete a feasibility report, but this could be completed this
year if the Council wishes. We are aware of a couple other alleys needing repair, but if the
Council decided that was a priority, it may be better to wait. Otherwise, it would still be cost
effective to do just 1 alley.
Administrator Thongvanh
I think it’s prudent to do this one this year. Holding off on the improvements would mean this
waits until 2024.
City Engineer Freihammer
The PMP is scheduled to begin May 17. This project should only lengthen the overall project by
a couple of days. We would need to approve a change order and hold a public hearing. We
could have a change order ready to approve at the June 9 meeting. We would prepare the actual
assessment amounts for that meeting, this will be based on lot frontage. It would be roughly
$1200 each assuming they all had equal frontage.
3. American Rescue Plan Funding Update
Administrator Thongvanh
The webinar was postponed. I wanted to provide an update to Council on this but there is no
additional information they were able to share at this time. Hopefully I will have more
information at the next workshop.
4. Amber Union Update
Administrator Thongvanh
We’re continuing to move forward, there are a lot of complexities with the funding. The
developer will be providing us a new portion of the property in exchange for a piece of land
that is currently owned by the city and used as an emergency vehicle turnaround. If we vacate
the City-owned piece, Buhl investors has said they would provide up to $20,000 to install
conduit wiring for an EV charging station.
Council Member Leehy
You mentioned the historical part of the building. I’m wondering which part is historical,
because the whole property is considered historical.
Administrator Thongvanh
Correct, there’re are some limitations. In their documents, the developer wants more greenspace
because it’s currently a concrete jungle.
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5. Community Park Building Update
Administrator Thongvanh
Staff and Public Works visited three parks facilities in Roseville. The packet includes some
photos of the facilities. The cost for the Lexington and Autumn Grove buildings ranged from
800-900K, and they included a conference room area, an office for staff, and a warming house.
Cedarholm Golf Course was much larger. I’d look at having something like the smaller
buildings, but having maybe 2 additional meeting rooms that people could rent out for use.
The University is in discussion with me, and I’m looking at a new agreement that is similar to
what was done when the first building was constructed. That building at that time cost about
$300,000. The agreement would include a stipulation that if the University decided to terminate
the agreement early, they would have to pay the remainder of unpaid building costs so we
could use that to pay our debt service.
I’m hoping to pay for at least half of the project with existing funds so that our levy funds won’t
be so high.
We can either do lowest bid or best value bidding. The bigger building, the golf course, I believe
they did best value. Using best value allows you to promote local contractors, but lowest bid
allows you to convey to the public that you are keeping costs low.
Council Member Miazga
Would you say that state bonding is off the table?
Administrator Thongvanh
I’m guessing we’ll be done with the construction at that point but there might be other
improvements that we request funding for in the future.
E. INFORMATION/ANNOUNCEMENTS:
Administrator Thongvanh
I’m working on the process of liquidating the fire equipment. I’ll be selling one of the trucks to
Century College for $17,500, the value was estimated at $15-20K. I’ll be hopefully receiving a
proposal from St. Paul for our other two trucks, we can discuss if they’re acceptable. Statute
allows us to sell to another jurisdiction without a lot of other red tape. Otherwise, we’ll have to
go the other route. I’ll bring that to the council hopefully in the next couple of weeks. We’re
starting to get the community garden up and running. I’ll be working with Ashleigh on a policy
for liquidating equipment via a non-profit agency. Hopefully we’ll bring it back at the end of
the month.
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F. ADJOURNMENT: 8:06PM
________________________________
Randall C. Gustafson, Mayor
Dated this 5th day of May, 2021
_________________________________
Sack Thongvanh, City Administrator
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CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
MINUTES
May 12, 2021 at 7:00 P.M.
NOTE: THIS MEETING WAS HELD BY WEB CONFERENCE
A. CALL TO ORDER: 7:04PM
B. ROLL CALL: ANDREWS _X__ GUSTAFSON__X__ LEEHY_X__
MIAZGA ___ WEHYEE___
STAFF PRESENT: THONGVANH_X___
C. PRESENTATION
1. 2020 Year-End Annual Audit Report
Matt Mayer, Bergan KDV
We have prepared an independent auditor’s report, which provides a true and accurate depiction of the
City’s financial statements. The audit for 2020 was very clean and reflects positively on the City and its
staff. The City’s fund balance has progressively increased in the last five years. The fund balance is equal
to total assets minus total liabilities. Revenue for the year was increased over 2019, part of this was a
conscious decision by the Council but it was also due to influx of COVID-19 funds. The City chose to use
the funds for public safety through its police contract, so this had a positive impact on the general fund.
The City’s budget was 2.8 million in spending and revenue; revenue came in better than expected and
spending for the year was under budget.
The sanitary sewer fund showed a less favorable year. There was a change in revenue based on decreased
water usage for the State Fair and at the University of Minnesota due to COVID-19. These entities pay
based on water usage, so this revenue was lower than expected last year. There is still a healthy fund
balance in the sanitary sewer fund.
The storm drainage fund was shielded from impacts due to COVID-19 since it’s charged based on typical
usage, not actual. The fund has a balance of $200K, so it’s a good one to grow in the future to provide for
capital improvement projects in the future.
Administrator Thongvanh
Based on the results of this audit, we should be able to fund the community park building by at least 50%
so that should result in us not needing to increase the levy to cover this project.
Motion to accept and approve the Year-End 2020 Audit Report by Council Member Andrews;
Approved, 3-0.
D. APPROVAL OF MINUTES:
1. April 7, 2021 City Council Workshop Minutes
2. April 14, 2021 City Council Regular Minutes
Motion to approve the minutes by Council Member Leehy;
Approved, 3-0.
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E. PUBLIC HEARINGS:
F. CONSENT AGENDA:
1. General Disbursements through: 5/7/21 $204,937.08
Payroll through: 4/30/21 $19,550.37
2. City License(s)
3. Polling Place Agreement
4. Appointment of Laure Campbell to the Community Engagement Commission
Motion to approve the consent agenda by Council Member Andrews;
Approved, 3-0.
G: POLICY ITEMS:
1. Amber Union Project – Conduit Revenue Bonds
Catherine Courtney, Taft Law
There are two resolutions before you this evening related to the Amber Union project. The first resolution
is to authorize the issuance of the next series of bonds will be part of the overall financing for the project.
After the meeting tonight, we will continue drafting the agreements and we will send signature pages for
the mayor and administrator to sign. We do have a deadline to close on these bonds on July 9 but we are
trying to close by the end of June.
Motion to approve Resolution 21-19 and authorize Mayor and City Administrator to execute all necessary
documents related to passage of the resolution by Council Member Leehy;
Approved, 3-0.
2. Amber Union Project – Tax Increment Financing
Catherine Courtney, Taft Law
This resolution relates to the tax increment revenue note that will be given by the developer to the City.
One of the lenders in the overall project are requesting an assignment of that note by the City to the
lender. This resolution is to approve that assignment.
Mayor Gustafson
Their request makes it so that it’s possible for us to do the TIF and have the project financed properly?
Catherine Courtney, Taft Law
Correct, it provides security for one of the other pots of money that is being used to finance the project.
Council Member Leehy
It seems to me like it’s similar to requiring insurance to have a mortgage?
Catherine Courtney, Taft Law
Correct, it’s a way of securing it. This is very typical on projects such as this.
Motion to approve Resolution 21-20 and authorize Mayor and City Administrator to execute all necessary
documents related to passage of the resolution by Council Member Andrews;
Approved, 3-0.
Peter Deanovic, Buhl Investors
We are circulating projects for signatures to make sure that we are set for ground breaking, which we
anticipate for mid- to late-June. Thank you for your partnership in trying to bring this asset back to life.
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3. Order Feasibility Report and Set Public Hearing for Alley Improvements
City Engineer Freihammer
Staff received a petition from residents for improvements to the alleyway on Iowa and Idaho between
Pascal and Arona Street. Instead of doing a bid for this project, we would just change order it to the
current contract with have with the PMP this year. Staff recommend approval of the attached resolution
ordering a feasibility report and setting a public hearing. We will bring this project to the contractor’s
attention at a construction meeting tomorrow.
Motion to approve Resolution 21-21 by Council Member Andrews;
Approved, 3-0.
H. INFORMATION/ANNOUNCEMENTS:
I. COMMUNITY FORUM:
J. ADJOURNMENT: 8:07PM
________________________________
Randall C. Gustafson, Mayor
Dated this 12th day of May, 2021
_________________________________
Sack Thongvanh, City Administrator
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REQUEST FOR COUNCIL ACTION
City of Falcon Heights, Minnesota __________________________
Item Public Improvement Hearing for Alley Improvements
Description
At the May 21, 2021 Council workshop, the City Council ordered the
preparation of a feasibility report and set the date for a public hearing for
improvements in the Idaho/Iowa alleyway between Pascal St. and Arona St.
This was based on a petition from 52% of adjacent property owners. The
petition requests the City address problematic drainage on the alleyway,
specifically where it intersects Pascal Street.
At the May 26, 2021 Council meeting, the City Council accepted the feasibility
report for these improvements, which further identified storm water
improvements on Pascal Street. Following Minnesota Statutes, Chapter 429,
notice of the public hearing must be posted twice prior to the meeting; this was
done in the St Paul Pioneer Press on May 15, 2021 and May 22, 2021. A notice
was also sent to each property proposed to be assessed as a part of this project.
Once the hearing is closed, the next step in the process is for the City Council
to order the improvements.
The improvements consist of mill and overlay and minor stormwater
improvements on:
• Idaho Ave./Iowa Ave. alleyway from Pascal St. to Arona St.
Idaho/Iowa Alleyway Improvements:
In order to address the drainage issue, staff would propose re-grading a
portion of the alleyway, lowering the existing catch basin and adjusting the
elevation profile of the alleyway. The portion of the alleyway where the profile
is adjusted will be repaved. The rest of the alleyway would have a 2-inch mill
and new pavement overlay to tie the pavement together on the two portions.
This would improve the pavement condition of the alley as a whole. The cost
of this improvement is estimated to be $43,000.
Pascal Street Storm Water Improvements:
After studying the drainage issue in more detail, if the alley is re-graded and
improved, the alley drainage will be corrected but the drainage on Pascal may
Meeting Date June 9, 2021
Agenda Item Public Hearing E1
Attachment Resolution, Preliminary Assessment
Roll, Feasibility Report, Presentation
Submitted By Stephanie Smith, Asst. City Engineer
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become worse. The Pascal Street curb grade is very flat allowing water to pond
at the alley intersection, particularly under freeze-thaw conditions. The polling
of water at this location requires additional work on Pascal Street to correct.
As detailed in the feasibility report, a new catch basin is proposed to be
installed near the alley and connect by a perforated infiltration trench/pipe
north to the catch basin/infiltration trench at Pascal/Iowa. The proposed
storm sewer would be constructed in the boulevard to minimize impacts to the
street. This would help eliminate some of the major standing water. The cost of
this improvement is estimated to be $27,000.
Project Schedule:
Due to the complexity of the drainage in the area and short timeframe to add
this project to this years PMP contract, engineering staff proposes to delay the
project until a later date. The current PMP contract has minimal pipe work and
adding that to the project may result in higher than normal prices.
Additionally, this will allow staff to look into more options and to make sure
the solution found will solve the problem and be cost effective.
• Delay entire project until a later date.
• Drainage issues will still be present in freeze/thaw conditions.
Additional maintenance may be needed to address this in the short
term.
• Approve only alley improvements.
• Pavement issues would be resolved. Some drainage issue will still
be present at the alley intersection.
• Approve both the alley improvements and storm sewer improvements
• Additional City cost. Change order may result in higher than
normal costs due to the added nature of the work.
If the Council were to order a project anticipated for the 2022 construction
schedule, a draft schedule is shown below. Items that require Council action
are marked “CC”:
• June 9, 2021 – CC Public Hearing, Order Improvements
• Fall 2021 – CC Approve Plans and Spec, Authorize Ad for Bids
• Winter 2021/2022– Open Bids
• Spring 2022 – CC Award Contract
• Summer 2022 – Construction
• Fall 2022 – CC Assessment Hearing
A resolution accepting ordering the improvements is attached.
Budget Impact The City’s Assessment Manual states that property owners are responsible for
90% of the costs for alleyway improvements. The assessment per parcel is
proposed based on the length of the parcel frontage on the alleyway and is
estimated at $32.03/front-foot. The City would fund the remaining 10% of the
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cost with the Street Fund. The assessment cost is estimated at $38,700 and the
City’s cost would be $4,300 from the street improvement fund.
The estimated cost for the additional storm sewer work on Pascal is $27,000
which would be paid using storm sewer funds.
Attachment(s) • Preliminary Assessment Roll
• Feasibility Report
• Presentation
• Resolution 2021-28 Ordering Improvements for the 2021 Alleyway
Improvement Project
Action(s)
Requested
Hold Public Improvement Hearing and Consider Resolution Ordering
Improvements for the 2021 Alleyway Improvement Project.
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PRELIMINARY ASSEMENT ROLL
Parcel ID Parcel Address
Frontage
(FT)
Footage
Used
(FT)
Assessment
Rate ($/FT)
Proposed
Assessment
Total ($)
222923220084 1463 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220083 1467 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220082 1471 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220081 1477 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220080 1481 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220079 1485 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220078 1489 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220077 1493 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220076 1497 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220075 1503 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220074 1507 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220073 1513 IOWA AVE W 50 50 $ 32.03 $ 1,601.50
222923220072 1512 IDAHO AVE W 65 65 $ 32.03 $ 2,081.95
222923220071 1508 IDAHO AVE W 55 55 $ 32.03 $ 1,761.65
222923220070 1502 IDAHO AVE W 60 60 $ 32.03 $ 1,921.80
222923220069 1494 IDAHO AVE W 50 50 $ 32.03 $ 1,601.50
222923220068 1490 IDAHO AVE W 50 50 $ 32.03 $ 1,601.50
222923220067 1488 IDAHO AVE W 50 50 $ 32.03 $ 1,601.50
222923220066 1482 IDAHO AVE W 50 50 $ 32.03 $ 1,601.50
222923220065 1478 IDAHO AVE W 50 50 $ 32.03 $ 1,601.50
222923220064 1472 IDAHO AVE W 60 60 $ 32.03 $ 1,921.80
222923220063 1468 IDAHO AVE W 55 55 $ 32.03 $ 1,761.65
222923220062 1464 IDAHO AVE W 55 55 $ 32.03 $ 1,761.65
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15111525152514881512149714721485150215241473148014841469150514721479146814641508151214891513150314941490150414941471146714681482147814931481147714931488148514971498150714631489146314641508mapdoc: IdahoIowaAlleywayAssessment.mxdmap: IdahoIowaAlleywayAssessment.pdf
Data Sources and Contacts:* Ramsey County GIS Base Map (5/04/21)* City of Roseville Engineering DepartmentFor further information regarding the contents of this map contact:City of Roseville, Engineering Department,2660 Civic Center Drive, Roseville MNDISCLAIMER:This map is neither a legally recorded map nor a survey and is not intended to be used as one. This map is a compilation of records,information and data located in various city, county, state and federal offices and other sources regarding the area shown, and is tobe used for reference purposes only. The City does not warrant that the Geographic Information System (GIS) Data used to preparethis map are error free, and the City does not represent that the GIS Data can be used for navigational, tracking or any other purposerequiring exacting measurement of distance or direction or precision in the depiction of geographic features. If errors or discrepanciesare found please contact 651-792-7075. The preceding disclaimer is provided pursuant to Minnesota Statutes §466.03, Subd. 21 (2000),and the user of this map acknowledges that the City shall not be liable for any damages, and expressly waives all claims, and agrees todefend, indemnify, and hold harmless the City from any and all claims brought by User, its employees or agents, or third parties whicharise out of the user's access or use of data provided.
´0 15 30 45 60FeetPrepared by:City of Roseville Engineering DepartmentMay 20, 2021
Idaho and Iowa Alleyway Assessed Parcels
IDAHO AVE
IOWA AVE PASCAL STARONA AVEProposed Assessments 16 of 67
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Falcon Heights –June 9, 2021
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Need for the project
o Drainage Issue Reported
•Ponding at Pascal Street
•Icing During Freeze/Thaw
o Petition Received –52% of Property Owners
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Drainage Improvements
o Adjust existing east catch basin
elevation
o Regrade the alleyway
Optional -Pascal Street Storm Water
Improvements
o Install new catch basin and tie-into
storm sewer at Pascal Street &
Idaho Avenue
Surface Improvements
o Mill and Overlay Pavement
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Adjustments to the alley
grading may increase
flow to a relatively flat
area where the alleyway
meets Pascal Street.
The flat area allows
ponding in the street and
icing during freeze/thaw.
Improvements shown are
estimated at $27,000.
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Complex Drainage Area
Infiltration Trench
Systems
High Prices for Pipe if
Change Ordered into
PMP
Short Time Frame for
Design
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Estimated
Cost*
Street
Infrastructure
Funds
Assessments Storm
Sewer Fund
Alleyway
Improvements**$43,000 $4,300 $38,700
Optional Pascal St.
Storm Water
Improvements***
$27,000 $27,000
Total $70,000 $4,300 $38,700 $27,000
*Includes 13.5% Engineering
**Includes 10% Contingency
***Includes 30% Contingency
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Alleyway Assessment Rates:
o Adjacent Properties –90% of
the cost
o City – 10% of the cost
The breakdown of costs for
the estimated frontage, per
foot rates:
o $38,700 / 1208’ =
$32.03/foot
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After assessment hearing:
Pay part or all up front interest free in first 30 days
Add to property taxes
Length of payment period and interest rate set by City Council
Typically 5 years
Interest rate 2% over current rate of return on the City’s portfolio
First payment due in 2022 with property taxes
Hardship deferral
Homestead property
Age 65 or older, or retired by virtue of a disability
Payment would be a hardship
Assessment will accrue interest
Application available at City Hall
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1. Delay entire project until a later date. (Staff Recommended)
•Drainage issues will still be present in freeze/thaw conditions. Additional
maintenance may be needed to address this in the short term.
2. Approve only alley improvements.
•Pavement issues would be resolved. Some drainage issue will still be present at the
alley intersection.
3. Approve both the alley improvements and storm sewer
improvements
o Additional City cost. Change order may result in higher than normal costs due to the
added nature of the work.
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June 9, 2021 –Public Hearing, Order Improvements
Fall 2021 –Approve Plans and Spec, Authorize Ad for Bids
Winter 2021/2022–Open Bids
Spring 2022 –Award Contract
Summer 2022 – Construction
Fall 2022 –Assessment Hearing
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Hold Public Hearing
Consider Resolution to Order Improvements (Staff Recommends
Delaying Project)
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CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
June 9, 2021
No. 21-28
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
RESOLUTION ORDERING IMPROVEMENT FOR THE
2021 ALLEYWAY IMPROVEMENT PROJECT WHEREAS, pursuant to resolution of the City Council adopted May 12, 2021, fixed a date for a council hearing on the 2021 Alleyway Improvement Project, the proposed improvement of the
following alleyway:
• Idaho Avenue/Iowa Avenue, Pascal Street to Arona Street
WHEREAS, ten days' mailed notice and two weeks' published notice of the hearing was given, and the hearing was held on June 9, 2021, at which all persons desiring to be heard were given an opportunity to be heard thereon,
NOW THEREFORE BE IT RESOLVED by the Council of the City of Falcon Heights,
Minnesota: 1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report.
2. Such improvement is hereby ordered as proposed in the City Council resolution adopted June
9, 2021. 3. Such improvement has no relationship to the comprehensive municipal plan.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Moved by: Approved by:
Randy Gustafson
Mayor
GUSTAFSON ____ In Favor Attested by:
LEEHY Sack Thongvanh
MIAZGA ____ Against City Administrator
ANDREWS
WEHYEE
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REQUEST FOR COUNCIL ACTION
City of Falcon Heights, Minnesota __________________________
Item General Disbursements and Payroll
Description
General Disbursements through: 6/03/21 $27,909.30
Payroll through: 5/31/21 $19,428.01
Budget Impact The general disbursements and payroll are consistent with the budget.
Attachment(s) • General Disbursements and Payroll
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve general
disbursements and payroll.
*Payroll has not been processed
Meeting Date June 9, 2021
Agenda Item Consent F1
Attachment General Disbursements and Payroll
Submitted By Roland Olson, Finance Director
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REQUEST FOR COUNCIL ACTION
City of Falcon Heights, Minnesota __________________________
Item Approval of City License(s)
Description
The following individuals/entities have applied for a General Contractor’s
License for 2021. Staff have received the necessary documents for licensure.
1. Ace Asphalt Inc
Budget Impact N/A
Attachment(s) N/A
Action(s)
Requested
Staff recommends approval of the City license applications contingent fire
inspections as required.
Meeting Date June 9, 2021
Agenda Item Consent F2
Attachment N/A
Submitted By Vandara Thammavongsa
Assistant to the City Administrator
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REQUEST FOR COUNCIL ACTION
City of Falcon Heights, Minnesota __________________________
Item Suite Living Senior Care of Ramsey Project – Supplement and Amendment of a
Trust Indenture
Description
On June 10, 2020, the City issued conduit bond for Suite Living Senior Care of
Ramsey Series 2020A of $7,680,000 and Series B of $335,000. The purpose of
the supplemental indenture is to facilitate a redemption and a purchase in lieu
of redemption, which will result in the bonds being paid off.
Budget Impact N/A
Attachment(s) • Resolution 21-29 Authorizing the Supplement and Amendment of A
Trust Indenture Between the City of Falcon Heights, Minnesota and
Wilmington Trust, National Association, and Other Matters Relating
Thereto
• Supplement and Amendment of a Trust Indenture
Action(s)
Requested
Motion to adopt attached resolution and authorize the Mayor and City
Administrator to execute all necessary documents.
Meeting Date June 9, 2021
Agenda Item Policy G1
Attachment Resolution & Documents
Submitted By Stephanie Smith, Asst. City Engineer
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26725016.1
FIRST SUPPLEMENTAL TRUST INDENTURE
between
CITY OF FALCON HEIGHTS, MINNESOTA,
as Issuer
and
WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee Securing: $7,680,000 City of Falcon Heights, Minnesota Senior Housing Revenue Bonds
(Suite Living Senior Care of Ramsey Project) Series 2020A
$335,000 City of Falcon Heights, Minnesota Taxable Senior Housing Revenue Bonds
(Suite Living Senior Care of Ramsey Project) Series 2020B
Dated as of April 1, 2021
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26725016.1
FIRST SUPPLEMENTAL TRUST INDENTURE
THIS FIRST SUPPLEMENTAL TRUST INDENTURE, executed and dated as of the 1st day of April, 2021 (this “First Supplemental Indenture”), supplementing the Trust Indenture dated as of June 1, 2020 (the “Original Indenture” and, together with this First Supplemental Indenture and as further supplemented and amended from time to time, the “Indenture”), between the CITY
OF FALCON HEIGHTS, MINNESOTA, a municipal corporation existing under the laws of the
State of Minnesota (the “Issuer”), and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association chartered under the laws of the United States of America and duly authorized and empowered to accept and execute trusts of the character herein set out under and by virtue of the laws of the United States of America, as trustee (the “Trustee”).
W I T N E S S E T H:
WHEREAS, pursuant to the Original Indenture, the Issuer issued its City of Falcon Heights, Minnesota Senior Housing Revenue Bonds (Suite Living Senior Care of Ramsey Project) Series 2020A, in the original aggregate principal amount of $7,680,000 (the “Series 2020A
Bonds”), and its City of Falcon Heights, Minnesota Taxable Senior Housing Revenue Bonds (Suite
Living Senior Care of Ramsey Project) Series 2020B, in the original aggregate principal amount of $335,000 (the “Series 2020B Bonds” and, together with the Series 2020A Bonds, the “Series 2020 Bonds”); and
WHEREAS, pursuant to (1) a Joint Powers Agreement dated as of June 1, 2020, between
the Issuer and the City of Ramsey, Minnesota, and (2) a Loan Agreement dated as of June 1, 2020,
between the Issuer and Hampton Properties of Ramsey, LLC, a Minnesota limited liability company (the “Borrower”), the sole member of which is Suburban Housing & Community Services Corporation, a California nonprofit, public benefit corporation that has been determined to be an exempt organization within the meaning of Section 501(c)(3) of the Internal Revenue
Code of 1986, as amended, the Issuer lent the proceeds of the Series 2020 Bonds to the Borrower
to finance and refinance the costs of the acquisition, construction, and equipping of a senior living facility known as Suite Living Senior Care of Ramsey, located at 139th Lane Northwest at the intersection of Jasper Street Northwest in Ramsey, Minnesota, and consisting of an approximately 32-unit high acuity assisted living, and memory care facility; and
WHEREAS, under the Indenture Greenwich Investment Management, Inc. (“GIM”), is the
Bondholder Representative with respect to the Bonds; and WHEREAS, pursuant to Section 3.02 of the Indenture, the Borrower desires to purchase in lieu of redemption, and the Bondholder Representative has agreed, on behalf of persons for
whom GIM serves as an investment advisor, to sell to the Borrower, all of the Series 2020A Bonds
owned by persons for whom GIM serves as investment advisor at a purchase price of 95% (ninety five percent) of the principal amount thereof, with no interest accrued through the purchase date, and all of the Series 2020B Bonds owned by persons for whom GIM serves as investment advisor at a purchase price of 99.5% (ninety nine and one half percent) of the principal amount thereof,
with no accrued interest through the purchase date (the “Purchase in Lieu of Redemption”); and
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WHEREAS, the Borrower also desires to redeem prior to maturity the approximately
$110,000.00 aggregate principal amount of the Series 2020A Bonds owned by persons other than
persons for whom GIM serves as an investment advisor at a redemption price of 101% (one hundred one percent) of the principal amount thereof, plus interest accrued through the redemption date (the “Redemption”); and
WHEREAS, with the consent of the Bondholder Representative as required by Section
11.02(a) of the Indenture, the Issuer and the Trustee desire to enter into this First Supplemental Indenture to authorize and otherwise provide for the Purchase in Lieu of Redemption and the Redemption; and
WHEREAS, all acts, proceedings and things necessary and required by law to make the
Indenture a valid and effective deed of trust, have been done, taken and performed, and the execution, acknowledgment and delivery of this First Supplemental Indenture have, in all respects, been duly authorized by the Issuer and the Trustee;
NOW THEREFORE, the Issuer and the Trustee, in consideration of the premises and other
good and lawful consideration, the receipt and sufficiency of which are hereby acknowledged,
hereby agree as follows:
Section 1. Definitions. In this First Supplemental Indenture, words and terms defined in the Original Indenture shall have the meaning therein prescribed unless the context otherwise indicates. Any words or terms used in the Original Indenture for which a different definition is
provided herein shall have the meanings herein prescribed unless the context otherwise indicates.
Section 2. Amendment of Optional Redemption Date. Section 3.01(b) of the Original Indenture is hereby deleted in its entirety and replaced with the following text:
(b) Optional Redemption of Series 2020 Bonds. The Series 2020 Bonds are subject to optional redemption in whole or in part on or after April 1,
2021 at a redemption price of 101% (one hundred one percent) of the principal
amount thereof, plus interest accrued to the date of redemption.
Section 3. Waiver of Notice of First Supplemental Indenture. The Issuer and the Trustee acknowledge and agree that Sections 11.02(b) and 11.03 of the Indenture require: (a) the Trustee to provide notice of any proposed supplemental indenture to the Bondholder
Representative, each Holder of Bonds then outstanding, and the Borrower; and (b) the Bondholder
Representative or, if none, a Majority of the Bondholders, and the Borrower to consent to and approve any supplemental indenture prior to the execution thereof. By executing their respective signature pages set forth at the end of this First Supplemental Indenture, the Bondholder Representative, on behalf of itself and each Holder of the Bonds, and the Borrower hereby: (y)
waive the requirements of Sections 11.02(b) and 11.03 of the Indenture requiring the Trustee to
provide notice of this First Supplemental Indenture to the Bondholder Representative, each Holder of outstanding Bonds, and the Borrower; and (z) consent to and approve this First Supplemental Indenture.
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Section 4. Waiver of Notice of Redemption. The Issuer and the Trustee acknowledge
and agree that Sections 3.02 and 3.03 of the Indenture require: (a) the Borrower to give the Trustee
notice of redemption or purchase in lieu of redemption at least forty-five (45) days before the redemption date; and (b) the Trustee to give notice of redemption to the Bondholder Representative and the Holder of each Series 2020 Bond at least thirty (30) and not more than sixty (60) days before the redemption date. By executing its signature page set forth at the end of this First
Supplemental Indenture, the Bondholder Representative, on behalf of itself and each Holder of the
Bonds, hereby waives the notice requirements of Sections 3.02 and 3.03 of the Indenture with respect to the Purchase in Lieu of Redemption and the Redemption and consents to and approves the Purchase in Lieu of Redemption and the Redemption; provided, however, that the Trustee shall, as soon as practicable before the Redemption date, provide notice of redemption in the form
required by Section 3.03 of the Indenture to the Holder of each Series 2020 Bond other than the
Bondholder Representative by first class mail at the address for each Holder set forth on the Bond Register and by posting such notice on the Electronic Municipal Market Access service of the Municipal Securities Rulemaking Board; provided further, that the Series 2020 Bonds or portions thereof designated for the Redemption will become and be due and payable on the date fixed for
the Redemption, as long as: (a) the Borrower has paid all compensation, expenses, and other
amounts owing to the Issuer, the Bondholder Representative, their respective counsel, and bond counsel; and (b) immediately-available funds are on deposit with the Trustee in an amount sufficient to pay the Redemption price and all compensation, expenses, and other amounts owing to the Trustee and its counsel, in which case such Series 2020 Bonds or portions thereof will be
deemed “paid,” as that term is used in Section 8.01 of the Indenture, and will cease to bear interest
from and after the Redemption date, whether or not such Series 2020 Bonds or portions thereof are presented and surrendered for payment on such date.
Section 5. Purchase in Lieu of Redemption Account. The Trustee shall deposit all funds transmitted by the Borrower to the Trustee for the purpose of paying the purchase price of
the Purchase in Lieu of Redemption into the Principal Account of the Bond Fund. On the Purchase
in Lieu of Redemption date, the Trustee shall use the funds deposited in the Principal Account of the Bond Fund to purchase the Series 2020 Bonds that are subject to the Purchase in Lieu of Redemption and shall cancel such Series 2020 Bonds in accordance with Section 3.02 of the Indenture.
Section 6. Opinion of Bond Counsel and Consents. This First Supplemental Indenture
shall not become effective unless and until: (a) Taft Stettinius & Hollister LLP, as bond counsel, has delivered to the Trustee an Opinion of Bond Counsel stating that this Supplemental Indenture: (i) is authorized or permitted by the Original Indenture, complies with its terms, and upon execution will be valid and binding on the Issuer in accordance with its terms; and (ii) will not
adversely affect the exclusion from gross income for federal income tax purposes of the interest
on the Series 2020A Bonds; and (b) the Borrower and the Bondholder Representative have consented to and approved this First Supplemental Indenture by executing the signature pages set forth at the end of this Supplemental Indenture.
Section 7. Effect of First Supplemental Indenture. Except as specifically amended by
this First Supplemental Indenture, the provisions of the Original Indenture remain in full force and
effect. In the event that any provisions of this First Supplemental Indenture and the Original Indenture conflict, the provisions of this First Supplemental Indenture shall control.
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Section 8. Counterparts. This First Supplemental Indenture may be simultaneously
executed in several counterparts, each of which shall be an original, and all of which shall
constitute but one and the same instrument.
Section 9. Electronic Signatures. The parties agree that the electronic signature of a party to this First Supplemental Indenture shall be as valid as an original signature of such party and shall be effective to bind such party to this First Supplemental Indenture. The parties agree
that any electronically signed document (including this First Supplemental Indenture) shall be
deemed (a) to be “written” or “in writing,” (b) to have been signed and (c) to constitute a record established and maintained in the ordinary course of business and an original written record when printed from electronic files. Such paper copies or “printouts,” if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties
to the same extent and under the same conditions as other original business records created and
maintained in documentary form. Neither party shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule. For purposes hereof, “electronic signature” means a manually signed original signature that is then transmitted by electronic means;
“transmitted by electronic means” means sent in the form of a facsimile or sent via the internet as
a “pdf” (portable document format) or other replicating image attached to an e mail message; and, “electronically signed document” means a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.
[SIGNATURE PAGES FOLLOW]
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IN WITNESS WHEREOF, the Issuer has executed this First Supplemental Indenture by
causing its name to be hereunto subscribed by its Authorized Signatory; the Trustee has executed
this First Supplemental Indenture by causing its name to be hereunto subscribed by its Authorized Signatory; the Bondholder Representative has executed, consented to, and approved this First Supplemental Indenture by causing its name to be hereunto subscribed by its Authorized Signatory; and the Borrower has executed, consented, to, and approved this First Supplemental
Indenture by causing its name to be hereunto subscribed by its Authorized Signatory, all being
done as of the date and year first written above.
CITY OF FALCON HEIGHTS, MINNESOTA
By: ______________________________________
Name: Randall C. Gustafson Its: Mayor
By: ______________________________________ Name: Sack Thongvanh Its: City Administrator
[Signature Page – First Supplemental Indenture]
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WILMINGTON TRUST, NATIONAL ASSOCIATION
By: ______________________________________ Name: ____________________________________
Its: ______________________________________
[Signature Page – First Supplemental Indenture]
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CONSENTED AND AGREED TO:
HAMPTON PROPERTIES OF RAMSEY, LLC By: Suburban Housing & Community Services Corporation
Its: Sole Member
By: ________________________________ Name: Tim C. Eppler
Its: Manager
[Signature Page – First Supplemental Indenture]
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CONSENTED AND AGREED TO:
GREENWICH INVESTMENT MANAGEMENT, INC. By: ______________________________________
Name: Drew J. Collins
Its: Managing Director
[Signature Page – First Supplemental Indenture]
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Extract of Minutes of a Meeting of the
City Council of the
City of Falcon Heights, Minnesota
Pursuant to due call and notice thereof, a regular or special meeting of the City Council of
the City of Falcon Heights, Minnesota, was duly held at the City Hall in such City, or by electronic
means as permitted by law, on Wednesday, the 9th day of June, 2021 at 7:00 o'clock p.m.
The following Council members were present:
and the following Council members were absent:
Member _____________ introduced the following resolution and moved its adoption:
CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
June 9, 2021
No. 21-29
A RESOLUTION AUTHORIZING THE SUPPLEMENT AND AMENDMENT OF A TRUST INDENTURE BETWEEN
THE CITY OF FALCON HEIGHTS, MINNESOTA AND WILMINGTON TRUST, NATIONAL ASSOCIATION, AND OTHER MATTERS RELATING THERETO
WHEREAS, pursuant to Resolution No. 20-25, adopted on June 10, 2020 (the “Original Resolution”), by the City Council of the City of Falcon Heights, Minnesota (the “Issuer”), the Issuer issued its Senior Housing Revenue Bonds (Suite Living Senior Care of Ramsey Project) Series 2020A in the original aggregate principal amount of $7,680,000 and its Taxable Senior Housing Revenue Bonds (Suite Living Senior Care of Ramsey Project) Series 2020B in the
aggregate principal amount of $335,000 (collectively, the “Bonds”) pursuant to a Trust Indenture dated as of June 1, 2020 (the “Indenture”) between the Issuer and Wilmington Trust, National Association (the “Trustee”) and loaned proceeds of the Bonds to Hampton Properties of Ramsey, LLC, a Minnesota limited liability company (the “Borrower”), pursuant to a Loan Agreement dated as of June 1, 2020 between the Issuer and the Borrower; and
WHEREAS, under the Indenture, Greenwich Investment Management, Inc. (the "Bondholder
Representative") is the bondholder representative with respect to the Bonds;
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WHEREAS, the Borrower and the Bondholder Representative have agreed to certain
modifications to the Indenture and, to give effect thereto, have requested that the Issuer enter into
a First Supplemental Trust Indenture (the “Supplement”) between the Issuer and the Trustee;
WHEREAS, under the Indenture, the Bondholder Representative has the right to consent to and approve of supplements to the Indenture, it is anticipated that the Bondholder Representative will duly consent to and approve of the Supplement, and such consent and approval is expected to
be evidenced by the Bondholder Representative’s execution of the Supplement;
WHEREAS, the City Council of the Issuer (the “Council”) has been informed by Taft Stettinius & Hollister LLP, as bond counsel, that the Supplement is permitted by and complies with the terms of the Indenture and that it is anticipated that the consents required for the execution of the Supplement by the Issuer will be obtained;
WHEREAS, the proposed form of the Supplement has been made available to the Council;
and
WHEREAS, based on the request of the Borrower and the aforementioned anticipated consent and approval of the Bondholder Representative, the Council has determined that the Supplement is in the best interest of the Borrower and the Bondholder Representative and is in furtherance of
the Issuer’s public purpose as set forth in the Original Resolution;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota, as follows:
Section 1. The proposed form of Supplement, as presented to this meeting, is hereby approved. Any Authorized Signatory (hereinafter defined) is hereby authorized and directed, for and on
behalf of the Issuer, to execute and deliver the Supplement in substantially said form, with such
changes and insertions therein as such Authorized Signatory, with the advice of counsel to the Issuer, may approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section 2. The Supplement shall be executed on behalf of the Issuer by the Mayor and the City
Administrator or any member of the Council (such officials being referred to herein individually
as an “Authorized Signatory” and collectively as the “Authorized Signatories”). The facsimile, electronic or digital signature of any Authorized Signatory shall be deemed to be the legal equivalent of a manual signature on specified documents or on all documents and valid and binding for all purposes. If any Authorized Signatory whose signature, countersignature or attestation
appears on the Supplement or any Bond-related document ceases to be an official before the
execution and delivery of the Supplement, his or her signature, countersignature or attestation appearing on the Supplement and any Bond-related document (regardless of whether any such Bond-related document is specifically identified in this Resolution) is valid and sufficient for all purposes to the same extent as if he or she had remained in the office until the execution and
delivery of the Supplement.
Section 3. The appropriate officials and agents of the Issuer, including each Authorized Signatory, are hereby authorized and directed, jointly and severally, for and in the name and on behalf of the Issuer, to execute and deliver any and all documents, including, without limitation,
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any and all documents and certificates as may be required under the Internal Revenue Code, and
to do any and all things and take any and all actions which may be necessary or advisable, in their
discretion, to effectuate the actions which the Issuer has approved in this Resolution and to consummate by the Issuer the transactions contemplated by the documents approved hereby, including any subsequent amendments, waivers or consents entered into or given in accordance with such documents. It is not necessary that the Bonds and the various documents authorized
hereby or otherwise relating to the Bonds all be signed by the same Authorized Signatory.
Section 4. Except to the extent modified by the Supplement, all provisions of the Indenture are hereby confirmed in full force and effect.
Section 5. This Resolution shall take effect from and after its adoption.
Adopted by the City Council of the City of Falcon Heights, Minnesota, this 9th day of June, 2021.
_________________________________
Randall C. Gustafson
Mayor
ATTEST:
______________________________ Sack Thongvanh City Administrator
After full discussion thereof and upon vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
COUNTY OF RAMSEY
CITY OF FALCON HEIGHTS
I, the undersigned, being the duly qualified and acting City Administrator of the City of
Falcon Heights, 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 of said City duly
called and held on the date therein indicated, insofar as such minutes relate to authorizing a
supplemental indenture for the Suite Living Senior Care of Ramsey Project.
WITNESS my hand and the seal of said City this ___ day of __________, 2021.
_______________________________________ Sack Thongvanh
City Administrator
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