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HomeMy WebLinkAbout5-17-16 part 2MAYOR AND COUNCIL COMMUNICATION DATE: 5/17/16 CONSENT ITEM #: 18 MOTION AGENDA ITEM: Boulder Ponds 2nd Addition Final PUD and Final Plat SUBMITTED BY: Stephen Wensman, Planning Director REVIEWED BY: Emily Becker, City Planner Jack Griffin, City Engineer BACKGROUND: OP4 Boulder Ponds, LLC is requesting approval of Boulder Ponds 2nd Addition Final PUD and Final Plat, the second phase of the Boulder Ponds residential development. The Planning Commission reviewed the Final PUD and Final Plat on April 25, 2016 and recommended approval with eight conditions. ISSUE BEFORE COUNCIL: Approval of the Final PUD and Final Plat of Boulder Ponds 2nd Addition. PROPOSAL DETAILS/ANALYSIS: The Planning Commission recommended approval of the Boulder Ponds 2nd Addition Final PUD and Final Plat with eight conditions. Since the Planning Commission review, OP4 Boulder Ponds has received approval for both Boulder Ponds and Boulder Ponds 2nd Addition landscape plans. The irrigation plans for Boulder Ponds 2nd Addition are still being reviewed. The Developer is currently reviewing the Landscape Maintenance and License Agreement, also a condition of Final Plat. The Developer has provided evidence to the City Attorney that it has a fee interest in the Plat. Evidence of Watershed approval and compliance with conditions has been met. There is no work to be performed within the BP pipeline area. As a result, the related conditions have been removed from the attached resolution of approval. Staff is recommending approval of Boulder Ponds 2ND Addition Final Plat and Final PUD Plan based on the following findings: 1) That the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan is consistent with the Preliminary Plat and Plans as approved by the City of Lake Elmo on September 16, 2014. 2) That the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan is consistent with the Lake Elmo Comprehensive Plan and the Future Land Use Map for this area. City Council Meeting May 17, 2016 Consent Agenda Item #__ 2 3) That the Boulder Ponds 2nd Addition Final Plat generally complies with the City’s Urban Low Density Residential zoning district, with the exceptions as noted in the approved Preliminary PUD Plans. 4) That the Boulder Ponds 2nd Addition Final Plat complies with all other applicable zoning requirements, including the City’s landscaping, storm water, sediment and erosion control and other ordinances, except as noted in this report or attachment thereof. 5) That the Boulder Ponds 2nd Addition Final Plat complies with the City’s subdivision ordinance. FISCAL IMPACT: The City will be asked to review a developer’s agreement as a separate agenda item. The agreement will include a detailed accounting of any development costs that will be the responsibility of the City. OPTIONS: The Boulder Ponds 2nd Addition Final PUD and Final Plat are consistent with the Preliminary Plat approval and should be approved by the City Council. RECOMMENDATION: Staff and the Planning Commission recommend approval with the following motion: “move to approve Resolution 2016-41 approving the Final PUD and Final Plat for Boulder Ponds 2nd Addition with 5 conditions” 1 Resolution 2016-41 CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2016-41 A RESOLUTION APPROVING A FINAL PLAT AND FINAL PLANNED UNIT DEVELOPMENT (PUD) PLAN FOR THE BOULDER PONDS 2ND ADDITION PLANNED RESIDENTIAL DEVELOPMENT WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, Boulder Ponds OP4, LLC, 11455 Viking Drive, Suite 350, Eden Prairie, MN has submitted an application to the City of Lake Elmo (“City”) for a Final Plat and Final PUD Plan for the Boulder Ponds 2nd residential development, a copy of which is on file in the City of Lake Elmo Community Development Department; and WHEREAS, the City approved the Boulder Ponds PUD General Concept Plan on December 17, 2013; and WHEREAS, the City approved the Boulder Ponds Preliminary Plat and Preliminary PUD Plan on September 16, 2014; and WHEREAS, the proposed Boulder Ponds 2nd Final Plat and Final PUD Plan includes 18 single family residential lots within a planned development on Outlot H, Boulder Ponds in Stage 1 of the I-94 Corridor Planning Area; and WHEREAS, the Lake Elmo Planning Commission reviewed the Final Plat and Final PUD Plans on April 25, 2016; and WHEREAS, the Lake Elmo Planning Commission adopted a motion recommending approval of the Final Plat and Final PUD Plan subject to 8 conditions of approval; and WHEREAS, the Lake Elmo Planning Commission has submitted its report and recommendation concerning the Final Plat and Final PUD Plan as part of a memorandum to the City Council for the May 17, 2016 Council Meeting; and WHEREAS, the Developer has complied with three of the eight conditions prior to City Council review; and WHEREAS, the City Council reviewed the Boulder Ponds 2nd Final Plat and Final PUD Plan at its meeting held on May 17, 2016 and made the following findings of fact: 1) That the Boulder Ponds Final Plat and Final PUD Plan is consistent with the Preliminary Plat and Plans as approved by the City of Lake Elmo on September 16, 2014. 2 Resolution 2016-41 2) That the Boulder Ponds Final Plat and Final PUD Plan is consistent with the Lake Elmo Comprehensive Plan and the Future Land Use Map for this area. 3) That the Boulder Ponds Final Plat generally complies with the City’s Urban Low Density Residential zoning district, with the exceptions as noted in the approved Preliminary PUD Plans. 4) That the Boulder Ponds Final Plat complies with all other applicable zoning requirements, including the City’s landscaping, storm water, sediment and erosion control and other ordinances, except as noted in this report or attachment thereof. 5) That the Boulder Ponds 2nd Addition Final Plat complies with the City’s subdivision ordinance. 6) That the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan complies with the City’s Planned Unit Development Ordinance. 7) That the Boulder Ponds 2nd Addition Final Plat is consistent with the City’s engineering standards with the exceptions noted by the City Engineer in his review comments to the City dated April 21, 2016. NOW, THEREFORE, BE IT RESOLVED THAT the City Council does hereby approve the Boulder Ponds Final Plat and Final PUD Plan subject to the following conditions: 1) Final grading, drainage, and erosion control plans, utility plans, sanitary and storm water management plans, and street and utility construction plans shall be reviewed and approved by the City Engineer prior to the recording of the Final Plat. All changes and modifications to the plat and plans requested by the City Engineer in a memo dated 4/21/16 shall be incorporated into these documents before prior to signing the Plat for recording. 2) Prior to the release of the Final Plat for recording, the Developer shall enter into a Developer’s Agreement acceptable to the City Attorney and approved by the City Council that delineates who is responsible for the design, construction, and payment of the required improvements with financial guarantees therefore. 3) The Final Irrigation Plan shall be submitted for review and approval by the City Landscape Architect Consultant prior to the release of building permits. 4) The applicant shall provide a complete development lot book for all lots in Phase 2 of the Boulder Ponds development clarifying proper building placement for use in granting building permits prior to the release of Final Plat for recording. 5) That a Landscape and Irrigation License Agreement be executed for the maintenance of commonly held CIC and City outlots and rights-of-ways prior release of the final plat for recording. 3 Resolution 2016-41 Passed and duly adopted this 17st day of May, 2016 by the City Council of the City of Lake Elmo, Minnesota. ___________________________________ Mike Pearson, Mayor ATTEST: ____________________________________ Julie Johnson, City Clerk BUSINESS ITEM 5a – ACTION ITEM PLANNING COMMISSION DATE: APRIL 25, 2016 AGENDA ITEM: 5A– BUSINESS ITEM CASE # 2016-07 ITEM: Boulder Ponds 2nd Addition – Final Plat, Final PUD Plan SUBMITTED BY: Stephen Wensman, Planning Director REVIEWED BY: Emily Becker, City Planner Jack Griffin, City Engineer South Washington Watershed District Greg Malmquist, Fire Chief SUMMARY AND ACTION REQUESTED: The Planning Commission is being asked to consider an application for a Final Plat, Final PUD Plan submitted by OP4 Boulder Ponds, LLC. The Final Plat application represents the second phase of the Boulder Ponds residential development and includes 18 single family residential lots. The proposed project is located north of Hudson Blvd. N., east of the Eagle Point Business Park and south of the Stonegate subdivision. Staff is recommending approval of the of the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan subject to compliance with 8 conditions as noted in this report. GENERAL INFORMATION Applicant: OP4 Boulder Ponds, LLC (Deb Ridgeway), 11455 Viking Drive, Suite 350, Eden Prairie, MN 55344. Property Owners: OP4 Boulder Ponds, LLC (Deb Ridgeway), 11455 Viking Drive, Suite 350, Eden Prairie, MN 55344 and Bremer Bank (Kathleen Tucci) 8555 Eagle Point Blvd., PO Box 1000, Lake Elmo. Location: Outlot H, Boulder Ponds, PID # 34.029.21.32.0035 Request: Application for Final Plat and Final Planned Unit Development (PUD) Plan for the 2nd phase of the Boulder Ponds planned development which includes 18 single family lots. Existing Land Use and Zoning: LDR (PUD) - Urban Low Density Residential Planned Unit Development. Surrounding Land Use and Zoning: North –Stonegate Residential Estates (RE) subdivision; west – Eagle Point Business Park (Bremer Bank, Eagle Point Town Office Condos, High Pointe Medical Campus, vacant land) (BP); east – Lennar Savona Urban Low Density Residential (LDR) subdivision; south – vacant land guided for Commercial and Interstate Highway 94. 2 BUSINESS ITEM 5a – ACTION ITEM Comprehensive Plan: Urban Medium Density Residential (4.5-7.0 units per acre), History: Boulder Ponds General Concept Plan approved by the City on 12/17/13 (Resolution #2013-109). Boulder Ponds Preliminary Plat and Preliminary PUD Plan approved by the City on 9/16/14 (Resolution #2014-73). The first phase Boulder Ponds Final Plat and Final PUD was approved on April 21, 2015 Deadline for Action: Application Complete – 3/21/16 60 Day Deadline –5/20/16 Extension Letter Mailed – N/A 120 Day Deadline – N/A Applicable Regulations: Chapter 153 – Subdivision Regulations Article 10 – Urban Residential Districts (LDR) Article 16 – Planned Unit Development Regulations §150.270 Storm Water, Erosion, and Sediment REQUEST DETAILS The City of Lake Elmo has received a request from OP4 Boulder Ponds, LLC for a Final Plat and Final PUD Plan to subdivide Oulot H, Boulder Ponds, 5.07 acres, into 18 single family (detached Villa) lots on a cul-de-sac as guided by the approved Preliminary PUD Plan. The applicant has submitted detailed construction plans for related to sanitary sewer, water main, storm sewer, grading, drainage, landscaping, and other details that have been reviewed by the City Engineer, Fire Chief and Landscape Consultant. The City’s subdivision ordinance establishes the procedure for obtaining final subdivision approval, in which case a final plat may only be reviewed after the City takes action on a preliminary plat. As long as the final plat is consistent with the preliminary approval, it must be approved by the City. Please note that the City’s approval of the Boulder Ponds Preliminary Plat included 13 conditions that must be met by the applicant, which are addressed in the “Review and Analysis” section below. Staff has reviewed the final plat and found that it is consistent with the preliminary plat that was approved by the City on September 16, 2014. Please note that the final plat and construction plans indicate the new street will have the name, Jade Way North, which is consistent with the preliminary plat. The City Engineer has reviewed the final plat, and his comments are attached to this report. Although there are some additional revisions and additions necessary for the Final Plat and final construction plans that need to be addressed by the applicant, the revisions can be made before the City releases the final plat for recording. Staff is recommending that all revisions and modifications noted within the City Engineer’s review memorandum date April 21, 2016 be completed prior to the release of Final Plat for recording as a condition of approval. FINAL PLAT REVIEW AND ANALYSIS The preliminary plat for Boulder Ponds was approved with several conditions, which are indicated below along with Staff’s comments on the status of each. For those items and issues that are not directly addressed below, Staff has provided additional comments following 13 preliminary plat 3 BUSINESS ITEM 5a – ACTION ITEM conditions list. Staff is recommending approval of the final plat, but with additional conditions intended to address the outstanding issues that will require additional review and/or documentation. Please also note that the applicant has also provided a response to the preliminary plat conditions as part of the project narrative (Attachment #2). Preliminary Plat Conditions – With Staff Update Comments (updated information in bold italics): 1) The applicant must enter into a separate grading agreement with the City prior to the commencement of any grading activity in advance of final plat and plan approval. The City Engineer shall review any grading plan that is submitted in advance of a final plat, and said plan shall document extent of any proposed grading on the site. Comments: The site was mass graded in phase 1. 2) The developer shall be required to submit an updated parkland dedication calculation in advance of Final Plat. Upon submission of the calculation, the applicant must work with the City to achieve the required parkland dedication amount per the City’s Subdivision Ordinance. The developer shall be required to pay a fee in lieu of land dedication equivalent to the fair market value for the amount of land that is required to be dedicated for such purposes in the City’s Subdivision Ordinance less the amount of land that is accepted for park purposes by the City. Any cash in lieu of land dedication shall be paid by the applicant prior to the release of the Final Plat for recording. Comments: The park land dedication of 1.77 acres which will be comprised of that the portion of the northern greenbelt park not within the Xcel Energy easement will be dedicated in the third phase of the development. The remaining park dedication equivalent to the fair market value of 2.57 acres of land was paid with the first phase of the development. 3) The developer shall follow all the rules and regulations of the Wetland Conservation Act and adhere to the conditions of approval for the South Washington Watershed District Permit. Comments: The permit was received with the first phase of the development. 4) The applicant will work with the Planning Staff to name all streets in the subdivision in a manner acceptable to the City prior to the submission of Final Plat. Comments: The streets in the entire development were named and the names were approved by the Fire Chief. 5) The applicant will work with staff to address the comments in the City Engineer's review memo dated 7/24/14 to the satisfaction of the City Engineer as part of the Final Plat and Final PUD Plan. Comments: These were completed for the 1st phase. 6) In addition to standard easements required by the Subdivision Ordinance, additional drainage and utility easements must be provided extending 10 feet from meandering sidewalks, as well as all of the portion of private lots between meandering sidewalks and the public right-of- way. Comments: This was complied with in the first phase and will be again in the second phase. 7) The landscape plan shall be updated to locate all boulevard trees in between the public street and sidewalk to not interfere with private utilities. Comments: The landscaping plans for all phases have been accepted per Stephen Mastey’s review memo 4/20/16 with the exception of the irrigation plans. Irrigation plans are close to being approved. 4 BUSINESS ITEM 5a – ACTION ITEM 8) All islands and medians internal to the Boulder Ponds development shall be platted as part of the right-of-way and shall be maintained by the Home Owners Association. The applicant shall enter into a maintenance agreement with the City that clarifies the individuals or entities responsible for any landscaping installed in areas outside of land dedicated as public park and open space on the Final Plat. Comments: The islands and median except those in 5th Street are the responsibility of the HOA into perpetuity. The developer has an approved management plan, but has not entered into a landscape license agreement. 9) The design of the northern buffer trail shall be modified to a width of 8 feet as opposed to the regional trail standard of 10 feet. Comments: This condition will be address in the third phase of the development. 10) The eastern segment of the northern buffer trail shall be moved to the south to the greatest extent possible with plantings to screen the trail on the north side. Comments: This has been completed. 11) Prior to recording the Final Plat for any portion of the area shown in the Preliminary Plat, the Developer shall enter into a Developers Agreement acceptable to the City Attorney that delineates who is responsible for the design, construction, and payment of public improvements. Comments: Complete 12) The Final PUD Plan will include a development lot book to clarify proper building placement for use in granting building permits for the development. Comments: Completed Staff is recommending that the conditions noted above that pertain to the 1st Addition Final Plat and that have not yet been addressed by the applicant should be again conditioned with this approval. The City Engineer’s review letter identifies several issues that need to be addressed by the developer in order for the City to approve the final plans. However, the majority of these concerns are related to the construction plans and should have little bearing on the final plat. The City Landscape Architect has reviewed and approved the Landscape Plans, the Landscape Management Plan, however the irrigation plans have not yet been approved, and are about half way complete. The Fire Chief has reviewed the Final Plat and has identified no issues. Staff is recommending that City Officials not sign the final plat mylars until the City’s construction plan review is finalized and all necessary easements are documented on the Final Plat. Based on the above Staff report and analysis, Staff is recommending approval of the Final Plat with several conditions intended to address the outstanding issues noted above and to further clarify the City’s expectations in order for the developer to proceed with the recording of the Final Plat. The recommended conditions are as follows: Recommended Conditions of Approval: 1) Final grading, drainage, and erosion control plans, utility plans, sanitary and storm water management plans, and street and utility construction plans shall be reviewed and approved by the City Engineer prior to the recording of the Final Plat. All changes and modifications to the plat and plans requested by the City Engineer in a memo dated April 21, 2016 shall be incorporated into these documents before prior to signing the Plat for recording. 5 BUSINESS ITEM 5a – ACTION ITEM 2) Prior to the release of Final Plat for recording, the developer shall provide evidence in a form satisfactory to the City Attorney that warrants it has fee interest in area included in the Boulder Ponds Final Plat. 3) Prior to the release of the Final Plat for recording, the Developer shall enter into a Developer’s Agreement acceptable to the City Attorney and approved by the City Council that delineates who is responsible for the design, construction, and payment of the required improvements with financial guarantees therefore. 4) The Final Irrigation Plan shall be submitted for review and approval by the City Landscape Architect Consultant prior to the release of building permits. 5) The applicant shall provide evidence that all conditions attached to the South Washington Watershed District permit for the Final Plat and associated grading work have been met prior to the release of the Final Plat for recording. 6) The applicant must provide written authorization to perform any work in the BP Pipeline easement areas prior to the release of the Final Plat for recording. 7) The applicant shall provide a complete development lot book for all lots in Phase 2 of the Boulder Ponds development clarifying proper building placement for use in granting building permits prior to the release of Final Plat for recording. 8) That a Landscape and Irrigation License Agreement be executed for the maintenance of commonly held CIC and City outlots and rights-of-ways prior release of the final plat for recording. DRAFT FINDINGS Staff is recommending that the Planning Commission consider the following findings with regards to the proposed Boulder Ponds 2ND Addition Final Plat and Final PUD Plan: 1) That the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan is consistent with the Preliminary Plat and Plans as approved by the City of Lake Elmo on September 16, 2014. 2) That the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan is consistent with the Lake Elmo Comprehensive Plan and the Future Land Use Map for this area. 3) That the Boulder Ponds 2nd Addition Final Plat generally complies with the City’s Urban Low Density Residential zoning district, with the exceptions as noted in the approved Preliminary PUD Plans. 4) That the Boulder Ponds 2nd Addition Final Plat complies with all other applicable zoning requirements, including the City’s landscaping, storm water, sediment and erosion control and other ordinances, except as noted in this report or attachment thereof. 5) That the Boulder Ponds 2nd Addition Final Plat complies with the City’s subdivision ordinance. 6 BUSINESS ITEM 5a – ACTION ITEM 6) That the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan complies with the City’s Planned Unit Development Ordinance. 7) That the Boulder Ponds 2nd Addition Final Plat is consistent with the City’s engineering standards with the exceptions noted by the City Engineer in his review comments to the City dated April 21, 2016. RECCOMENDATION: Staff is recommending approval of the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan with the 8 conditions of approval as listed in the Staff report. The suggested motion is the following: “Move to recommend approval of the Boulder Ponds 2nd Addition Final Plat and Final PUD Plan with the 8 conditions of approval as drafted by Staff based on the findings of fact listed in the Staff Report.” ATTACHMENTS:  Application Forms and Project Narrative  Final Plat  City Engineer Review Memorandum, dated 4/21/16  Fire Chief Review Memorandum, dated 3/24/16  Landscape Consultant Review Memorandum, dated 4/20/16  (Final Construction Plans are available upon request) ORDER OF BUSINESS: - Introduction ........................................................................................ Planning Staff - Report by Staff ................................................................................... Planning Staff - Questions from the Commission ............................ Chair & Commission Members - Discussion by the Commission .............................. Chair & Commission Members - Action by the Commission ..................................... Chair & Commission Members Boulder Ponds 2nd Addition Final Plat Application 1 Boulder Ponds 2nd Addition Final Plat Narrative/Written Statement Consisting of nearly 60 acres, Boulder Ponds offers a uniquely planned mixed-use neighborhood. The variety of land uses provides a seamless transition to the existing surrounding areas. From the south, the commercial parcels complement the existing commercial uses. Moving north, the medium density residential serves to buffer the commercial from the lower density single family homes. 5th Street further provides the separation between the commercial and residential uses. The design concept and goals for Boulder Ponds has generally remained consistent throughout the approval process. As opposed to the more standard grid approach, the curvilinear nature of the streets is designed around the existing topography of the site, which offers premium lots with maximum open space. Further, the design works to limit double fronted lots. The oversized cul-de-sacs, meandering sidewalks and varying setbacks not only enhance site lines, but also create a quality neighborhood with aesthetically pleasing characteristics. The detached single family lots consist of two types of housing; traditional single family homes and detached Villa homes. The single family homes are geared toward families typically with children with pricing starting around $390,000. The detached Villa product will include association maintained grounds which is largely geared toward empty nesters. Pricing for these start around $360,000. Please refer to attached Typical Elevation and Floor Plans for further details on product type. Boulder Ponds will have its own neighborhood theming evident in the signage, landscaping and site furnishings. Neighborhood signage will include monuments clad in natural stone at the main entry points as shown in the landscape plan set. Community gathering spaces will be located in key areas of Boulder Ponds including a larger centrally located gathering space along Jade Trail which will include a shelter, grill and seating. Another area will be in the southerly cul-de-sac to include a smaller scale shelter and seating. Consistent theming in all these elements creates a neighborhood with a stronger sense of identity. The homeowners associations will be responsible for the ownership and maintenance these special features. Boulder Ponds 2nd Addition Final Plat Application 2 INCLUDED ATTACHMENTS: Attachment A – Lot Tabulation, Zoning & Density Attachment B – Tree Study Plan Attachment C – Typical Villa House Plans Boulder Ponds 2nd Addition Final Plat Application 3 Written Statements a. Landowner’s Name(s), Project Representatives and Contact Information. LANDOWNER/ OP4 Boulder Ponds, LLC DEVELOPER c/o The Excelsior Group, LLC 1660 Highway 100 South, Suite 400 St. Louis Park, MN 55416 Ben Schmidt, Vice President 952.525.3225 Ben.Schmidt@ExcelsiorLLC.com Deb Ridgeway, Asset Manager 952.525.3223 Deb.Ridgeway@ExelsiorLLC.com ENGINEER SEH Dave Blommel 320.229.4349 dblommel@sehinc.com SURVEYOR EG Rud Jason Rud 651.361.8200 jrud@egrud.com LANDSCAPE Westwood Professional Services ARCHITECT Cory Meyer 952.906.7437 cory.meyer@westwoodps.com b. Property Address, Zoning, Parcel Size, PID and Legal Description Boulder Ponds 2nd Addition ADDRESS n/a CURRENT ZONING LDR - PUD PARCEL SIZE Acres 5.07 Sq. Ft 22,0795 PID 34-029-21-32-0035 LEGAL DESCR Outlot H, BOULDER PONDS Boulder Ponds 2nd Addition Final Plat Application 4 c. Final Subdivision & Lot Information Please refer to ATTACHMENT A Lot tabulation sheet for lot information. d. How issues have been addressed since Preliminary Plat Below are the conditions of preliminary approval per Resolution 2014-73 with responses: CONDITION RESPONSE/STATUS 1 The applicant must enter into a separate grading agreement with the City prior to the commencement of any grading activity in advance of final plat and plan approval. The City Engineer shall review any grading plan that is submitted in advance of a final plat, and said plan shall document extent of any proposed grading on the site. COMPLETE 2 The developer shall be required to submit an updated parkland dedication calculation in advance of Final Plat. Upon submission of the calculation, the applicant must work with the City to achieve the required parkland dedication amount per the City’s Subdivision Ordinance. The developer shall be required to pay a fee in lieu of land dedication equivalent to the fair market value for the amount of land that is required to be dedicated for such purposes in the City’s Subdivision Ordinance less the amount of land that is accepted for park purposes by the City. Any cash in lieu of land dedication shall be paid by the applicant prior to the release of the Final Plat for recording. The greenway park lot will be dedicated with the third phase of development along with trail improvements. 3 The developer shall follow all the rules and regulations of the Wetland Conservation Act and adhere to the conditions of approval for the South Washington Watershed District Permit. PERMIT RECEIVED 4 The applicant will work with the Planning Staff to name all streets in the subdivision in a manner acceptable to the City prior to the submission of Final Plat. Modifications to the Preliminary Plat and Preliminary PUD Plans COMPLETE 5 The applicant will work with staff to address the comments in the City Engineer's review memo dated 7/24/14 to the satisfaction of the City Engineer as part of the Final Plat and Final PUD Plan. COMPLETE for 1st phase 6 In addition to standard easements required by the Subdivision Ordinance, additional drainage and utility easements must be provided extending 10 feet from meandering sidewalks, as well as all of the portion of private lots between meandering sidewalks and the public right-of- way. Where sidewalks encroach onto lots, easements are shown on the Final Plat. 7 The landscape plan shall be updated to locate all boulevard COMPLETE Boulder Ponds 2nd Addition Final Plat Application 5 CONDITION RESPONSE/STATUS trees in between the public street and sidewalk to not interfere with private utilities. 8 All islands and medians internal to the Boulder Ponds development shall be platted as part of the right-of-way and shall be maintained by the Home Owners Association. The applicant shall enter into a maintenance agreement with the City that clarifies the individuals or entities responsible for any landscaping installed in areas outside of land dedicated as public park and open space on the Final Plat. HOA documents specify that public islands and medians (except 5th Street) are the responsibility of the HOA. 9 The design of the northern buffer trail shall be modified to a width of 8 feet as opposed to the regional trail standard of 10 feet. COMPLETE 10 The eastern segment of the northern buffer trail shall be moved to the south to the greatest extent possible with plantings to screen the trail on the north side. COMPLETE Plat Restrictions 11 Prior to recording the Final Plat for any portion of the area shown in the Preliminary Plat, the Developer shall enter into a Developers Agreement acceptable to the City Attorney that delineates who is responsible for the design, construction, and payment of public improvements. COMPLETE for the 1st phase. 12 The Final PUD Plan will include a development lot book to clarify proper building placement for use in granting building permits for the development. COMPLETE for the 1st phase and will be done for the 2nd Addition, as well. e. Site Density Calculation The Lot Tabulation submitted with the 1st phase approvals showed density information for the entire site. In summary:  The overall gross site density (for all phases of development) is calculated at 2.74 dwelling units per acre (DUA).  Net of commercial, ponding and right-of way, the total site density is calculated at 5.18 DUA. f. Phasing of Infrastructure and Other Improvements Grading. Grading for the entire site was completed in 2015. Streets & Utilities. Utility and street construction is complete for the 1st phase, with the exception of the final lift of asphalt. The 2nd Addition includes improvements for Boulder Ponds 2nd Addition Final Plat Application 6 18 Villa lots. It is anticipated that the 1st lift of asphalt will be complete mid-summer 2016. Site Amenities. The main monument on 5th Street and Jade Trail is complete. The planned monument at the Hudson & Jade Trail entrance along with site furnishings and remaining landscaping for the 1st phase will be complete spring 2016. The 2nd Addition landscaping will be complete August 2016. Model Homes. All the single family and Villa style lots are under contract with one builder. Model homes for each of these product styles are complete and currently used to market the site. Future Phases. The last phase of the development including the completion of 5th Street will occur dependent on sales. This will likely occur in 2017. g. How Concerns of Neighboring Properties Have Been Addressed The only concern raised was at the 2014 public hearing by a Stone Gate Estates neighbor. It was requested that the trail be located as far south as possible. With some grade adjustments, this has been achieved. h. How Conflicts with Nearby Land Uses and/or Disturbances to Wetlands or Natural Areas Have Been Mitigated Northerly Buffer. The future trail between Stone Gate Estates to the north softens the impact of the lot sizes between the two neighborhoods. Transition. The future senior housing (MDR) provides a transition between the commercial and residential (LDR) uses. 5th Street. 5th Street provides a separation of the residential neighborhood from the surrounding commercial uses. Supplemental Uses. The Boulder Ponds commercial area compliments the other commercial uses along Hudson Blvd. Preservation. The existing wetland is being preserved. i. Justification that Proposal will Not Place Excessive Burden on Infrastructure in the Area. Roads / Traffic. We are participating in the construction of 5th Street, a regional MSA road that runs east/west. The City of Lake Elmo has studied the area and determined the new MSA road will be sufficient to serve the new developments in the area. In addition to participation with the construction of 5th Street, we are proposing the construction of a north/south road (Jade Trail) connecting Hudson Boulder Ponds 2nd Addition Final Plat Application 7 Blvd to 5th Street. Future turn lanes are shown on Hudson Blvd, which are planned for installation when Hudson Blvd is expanded. Sewer. The site has gravity sewer access along Hudson Blvd that is served by the regional sewer system. This additional capacity has been accounted for in the City of Lake Elmo's Comprehensive Plan. Water Supply. Water will be served by Oakdale’s water supply until such time the City of Lake Elmo can run its own trunk lines to the wider regional development area. Staff has indicated there is sufficient water to serve the development. Parks. A 3.85 acre linear park in the 2nd phase of development will connect to the regional system. Staff has indicated that the trail construction or other related improvement costs may be used as an offset to park dedication fees. It is understood that the City is not requiring additional parkland. Fire / Police. The streets were designed to accommodate a ladder fire truck. Boulder Ponds is primarily residential, which tends to have less calls per capita than other property types. j. Proposed Lakeshore Access N/A k. Parks and Open Space Description The linear park located along the northerly property line will be dedicated and improved with a trail and landscaping with the 3rd phase of development. l. Development Schedule • Grading - COMPLETE • 1st Phase Utility Installation - COMPLETE • 1st phase street & sidewalk construction (1st lift) - COMPLETE • 1st Phase landscape and monument installation – SPRING 2016 • 2nd lift asphalt on 1st phase streets – FALL 2016 • 2nd Addition Improvements (Street & Utilities) – JULY 2016 • 3rd Addition Improvements – 2017 (sales dependent) Boulder Ponds Final Plat/PUD/Zoning Amendment Application ATTACHMENT A Lot Tabulation BOULDER PONDS 2ND ADDITION, Lake Elmo Final Plat Lot Tabulation 2/19/2016 LOT BLK SQ FT ACRE LOT TYPE PROPOSED ZONING LOTS 1 1 9,057 0.21 Villa LDR 2 1 8,001 0.18 Villa LDR 3 1 8,012 0.18 Villa LDR 4 1 9,582 0.22 Villa LDR 5 1 9,959 0.23 Villa LDR 6 1 8,783 0.20 Villa LDR 7 1 8,455 0.19 Villa LDR 8 1 9,080 0.21 Villa LDR 9 1 12,793 0.29 Villa LDR 10 1 21,111 0.48 Villa LDR 11 1 10,190 0.23 Villa LDR 12 1 9,331 0.21 Villa LDR 13 1 8,270 0.19 Villa LDR 14 1 8,973 0.21 Villa LDR 15 1 8,645 0.20 Villa LDR 16 1 10,929 0.25 Villa LDR 17 1 10,342 0.24 Villa LDR 18 1 9,546 0.22 Villa LDR RIGHT OF WAY 39,735 0.91 Right of Way 5.07 TOTAL SITE ACREAGE Boulder Ponds Final Plat/PUD/Zoning Amendment Application ATTACHMENT B Tree Study Plan All trees have been cleared from the site, most of which were around the former homestead. A summary of the significant trees surveyed in May 2014 was included with the 1st Phase application. Boulder Ponds Final Plat/PUD/Zoning Amendment Application ATTACHMENT C Typical Villa Elevations and Floor Plans LEXINGTON 2-4 Bedrooms | 3 Baths | 2-Car Garage | 1,936-3,426 sf VILLA FLOOR PLANS 707 Commerce Dr | Suite 410 | Woodbury, MN 55125 | 651-289-6800 | CREATIVEHCI.COM All prices, promotions, features, options, amenities, floor plans, elevations, materials and dimensions are subject to change without notice, All information is deemed reliable but not guaranteed. Please ask the new home specialist for more information. ©2015 Creative Homes, Inc. MN Builder License #BC667667. WI Builder License #1248864. Future Basement1,020 -1,463 sfMain Level: 1,963 sf WESTON 2-4 Bedrooms | 2-3 Baths | 2-Car Garage | 1,791-3,582 sf VILLA FLOOR PLANS 707 Commerce Dr | Suite 410 | Woodbury, MN 55125 | 651-289-6800 | CREATIVEHCI.COM All prices, promotions, features, options, amenities, floor plans, elevations, materials and dimensions are subject to change without notice, All information is deemed reliable but not guaranteed. Please ask the new home specialist for more information. ©2015 Creative Homes, Inc. MN Builder License #BC667667. WI Builder License #1248864. Future Basement1,326 -1,791 sfMain Level: 1,791 sf BOULDER PONDS 2ND ADDITION, Lake Elmo Final Plat Lot Tabulation 2/19/2016 LOT BLK SQ FT ACRE LOT TYPE PROPOSE D ZONING NOTES LOTS 1 1 9,057 0.21 Villa LDR 2 1 8,001 0.18 Villa LDR 3 1 8,012 0.18 Villa LDR 4 1 9,582 0.22 Villa LDR 5 1 9,959 0.23 Villa LDR 6 1 8,783 0.20 Villa LDR 7 1 8,455 0.19 Villa LDR 8 1 9,080 0.21 Villa LDR 9 1 12,793 0.29 Villa LDR 10 1 21,111 0.48 Villa LDR 11 1 10,190 0.23 Villa LDR 12 1 9,331 0.21 Villa LDR 13 1 8,270 0.19 Villa LDR 14 1 8,973 0.21 Villa LDR 15 1 8,645 0.20 Villa LDR 16 1 10,929 0.25 Villa LDR 17 1 10,342 0.24 Villa LDR 18 1 9,546 0.22 Villa LDR RIGHT OF WAY 39,735 0.91 Right of Way 5.07 TOTAL SITE ACREAGE   PAGE 1 of 2  MEMORANDUM           Date: April 21, 2016      To: Stephen Wensman, City Planner Re: Boulder Ponds 2nd Addition – Final Plat   Cc: Ryan Stempski, P.E., Assistant City Engineer  Engineering Review Comments  From: Jack Griffin, P.E., City Engineer        An engineering review has been completed for the Boulder Ponds 2nd Addition. Final Plat/Final Construction  Plans were received on March 17, 2016. The submittal consisted of the following documentation:     Boulder Ponds 2nd Addition Final Plat, dated March 2, 2016, prepared by E.G. Rud & Sons, Inc.   Boulder Ponds 2nd Addition Construction Plans dated March 16, 2016, prepared by SEH, Inc.   Boulder Ponds Landscape Plans, dated March 17, 2016, prepared by Westwood Professional Services.      STATUS/FINDINGS:   Engineering review comments have been provided in two separate memos; one for Final Plat  approval, and one to assist with the completion of the final Construction Plans.  Please see the following review  comments relating to the Final Plat application.      FINAL PLAT: BOULDER PONDS 2ND ADDITION   Final Construction Plans and Specifications must be revised in accordance with the Construction Plan  engineering review email dated April 2, 2016 and any subsequent engineering review completed upon  receipt of updated construction plans.    Final Construction Plans and Specifications must be prepared in accordance with the City Engineering  Design Standards Manual using City details, plan notes and specifications and meeting City Engineering  Design Guidelines.   All easements as requested by the City Engineer and Public Works department shall be documented on the  Final Plat prior to the release of the Final Plat for recording. Easements may need to be revised pending  review by the City of a detailed right‐of‐way boulevard plan. Boulder Ponds 2nd Addition includes  meandering sidewalks which, when implemented, does not comply with the City standard boulevard  layout. Therefore an alternate boulevard layout plan must detail the proposed changes for City review and  approval and easements must be amended as necessary to accommodate all right‐of‐way infrastructure,  including sidewalk location, boulevard trees, hydrants, street lights, street signs, water and sewer service  stubs, and location for the private utility trench.   All Outlots to be owned by the City, all easements and all right‐of‐way as requested by the City Engineer  and Public Works department shall be documented on the Final Construction Plans.   Final Plat should be contingent upon the City receiving copies of fully executed temporary construction  easements or property owner permissions in a form acceptable to the City Attorney that allows for the  construction and grading activities for all work off‐site from the proposed Plat limits.  FOCUS ENGINEERING, inc.  Cara Geheren, P.E.  651.300.4261 Jack Griffin, P.E.               651.300.4264  Ryan Stempski, P.E. 651.300.4267  Chad Isakson, P.E. 651.300.4283    PAGE 2 of 2   Final Plat should be contingent upon receipt and City Attorney review of any agreements between the  Developer and the BP Pipeline easement area and the Xcel Energy Transmission Easement area,  demonstrating that said agreements in no way unacceptably encumbers the City.      FINAL CONSTRUCTION PLANS & SPECIFICATIONS   No construction for Boulder Ponds 2nd Addition may begin until the applicant has received City Engineer  approval for the Final Construction Plans; the applicant has obtained and submitted to the City all  applicable permits, easements and permissions needed for the project; and a preconstruction meeting has  been held by the City’s engineering department.   The construction plans, landscape plans and grading plans must incorporate a complete project, including  completion, as part of the Boulder Ponds 2nd Addition, of the infiltration basins and wetland areas within  Outlots G and I, including the installation of draintiles and any soil corrections. The plans must also  incorporate an erosion and sedimentation control plan specific to the work to be completed for the  Boulder Ponds 2nd Addition.    Landscape Plans must be prepared to identify the specific improvements to be completed with the Boulder  Ponds 2nd Addition including plantings and restoration within Outlots G and I.   The Final Plat shall not be recorded until final construction plan approval is granted.   A separate memorandum has been provided, dated April 2, 2016 to direct additional plan corrections  necessary for final construction plan approval.  2350 BAYLESS PLACE• ST. PAUL, MN • 55114 PHONE: 651.646.1020 • EMAIL: STEPHEN@LAN D ARCINC.COM BOULDER PONDS PHASE 1, 2 & 5TH STREET – DESIGN REVIEW LAKE ELMO, MN LANDSCAPE ARCHITECTURAL DESIGN REVIEW DATED APRIL 20TH, 2016 REVIEWED PLAN SET DATED MARCH 17TH, 2016 Landscape Plans are Approved (with condition below - Item #1) Required Items still in process by Boulder Ponds Project Team 1. Landscape irrigation plans dated 04 15 2016 have been submitted by Northway Irrigation on behalf of your project team with City review in process for all commonly held HOA & City Outlots / R.O.W. areas. SINCERELY, LANDSCAPE ARCHITECTURE, INC. STEPHEN MASTEY, ASLA, CLARB, LEED AP MAYOR AND COUNCIL COMMUNICATION DATE: 5/17/16 CONSENT ITEM #: 19 MOTION AGENDA ITEM: Boulder Ponds 2nd Addition Developer Agreement SUBMITTED BY: Stephen Wensman, Planning Director REVIEWED BY: Jack Griffin, City Engineer BACKGROUND: OP4 Boulder Ponds, LLC has requested Final Plat and PUD Plans approval of Boulder Ponds 2nd Addition in a subsequent agenda item for the May 17, 2016 City Council meeting. The Developer and City Staff is requesting approval of the attached developer’s agreement pertaining to the Boulder Ponds 2nd Addition Final Plat. The agreement has been drafted based on the agreement template previously reviewed by the Council and the agreement that was executed for other residential subdivisions. ISSUE BEFORE COUNCIL: To approve Resolution 2016-42 approving the Developer’s Agreement for Boulder Ponds 2nd Addition. PROPOSAL DETAILS/ANALYSIS: One of the conditions of approval for the Boulder Ponds 2nd Addition Final Plat specifies that the developer enter into a Developer’s Agreement prior to the execution of the plat by City officials. The attached draft agreement is consistent with the City’s developer agreement template. The key aspects of the agreement include the following components: • That all improvements to be completed by October 31, 2017. • That the developer provide a letter of credit in the amount of 125% of the total cost of the proposed improvements. The construction estimates provided have been reviewed by the City Engineer and found to be accurate. The necessary letter of credit to secure the construction activity and expenses will be $533,844 for the 2nd phase of the Boulder Ponds development. • That the developer provide a cash deposit of $158,708 for SAC and WAC charges, engineering administration, one year of street light operating costs, park land dedication fee, and other City fees. City Council Meeting May 17, 2016 Consent Agenda Item #__ 2 • No park dedication is required with this plat, however, future land dedication is required in the 3rd phase of the development. FISCAL IMPACT: Direct Payments to Developer- None. Future financial impacts of the development include maintenance of streets, trails, sanitary sewer mains, watermains and other public infrastructure, maintenance of storm water ponding areas (after two years), maintenance of the landscaping in public areas, monthly lease payments for 2 street lights, and other public financial responsibilities typically associated with a new development. RECOMMENDATION: Based on the above Staff Report, Staff is recommending that the City Council approve the Developer’s Agreement for Boulder Ponds 2nd Addition and that the Council direct the Mayor and Staff to execute this document once the financial security and cash requirements have been received. The suggested motion to adopt the Staff recommendation is as follows: “Move to adopt Resolution 2016-42, approving the developer’s agreement for the Boulder Ponds 2nd Addition planned residential development.” ATTACHMENTS: 1. Resolution 2016-42 2. Boulder Ponds 2nd Addition Development Agreement CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2016-42 A RESOLUTION APPROVING THE DEVELOPER’S AGREEMENT FOR THE SECOND PHASE OF THE BOULDER PONDS PLANNED RESIDENTIAL DEVELOPMENT WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, OP4 Boulder Ponds, LLC, 11455 Viking Drive, Suite 350, Eden Prairie, MN (“Applicant”) has previously submitted an application to the City of Lake Elmo (“City”) for a Final Plat for Boulder Ponds; and WHEREAS, the Lake Elmo City Council considered and approved the Preliminary Plat request for Boulder Ponds at a meeting held on September 16, 2014; and WHEREAS, The Lake Elmo City Council adopted Resolution No. 2016-__ on May 17, 2016 approving the Final Plat for Boulder Ponds 2nd Addition; and WHEREAS, A condition of said Resolution No. 2016-__ establishes that, prior to the execution of the Final Plat by City officials, the Applicant is to enter into a Developer’s Agreement with the City; and WHEREAS, the Applicant and City have agreed to enter into such a contract, and a copy of the Developer’s Agreement was submitted to the City Council for consideration at its May 17, 2016 meeting. NOW, THEREFORE, based on the information received, the City Council of the City of Lake Elmo does hereby approve the Developer’s Agreement for Boulder Ponds 2nd Addition and authorizes the Mayor and City Clerk to execute the document. Passed and duly adopted this 17 day of May 2016 by the City Council of the City of Lake Elmo, Minnesota. __________________________________ Mike Pearson, Mayor ATTEST: ________________________________ Julie Johnson, City Clerk REV2: 04/18/2016 1 (reserved for recording information) DEVELOPMENT CONTRACT (Public sewer and water) Boulder Ponds 2nd Addition AGREEMENT dated , 2016, by and between the CITY OF LAKE ELMO a Minnesota municipal corporation (“City”), and OP4 Boulder Ponds (the “Developer”). 1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat for Boulder Ponds 2nd Addition (referred to in this Contract as the “plat”). The land is situated in the County of Washington, State of Minnesota, and is legally described on Exhibit A 2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the plat on condition that the Developer enter into this Contract, furnish the security required by it, and record the plat with the County Recorder or Registrar of Titles within (180) days after the City Council approves the final plat. 3. RIGHT TO PROCEED. Unless separate written approval has been given by the City, within the plat or land to be platted, the Developer may not grade or otherwise disturb the earth, remove trees, construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings until all the following conditions have been satisfied: 1) this agreement has been fully executed by both REV2: 04/18/2016 2 parties and filed with the City Clerk, 2) the necessary security has been received by the City, 3) the plat has been recorded with the Washington County Recorder's Office, and 4) the City’s Planning Director has issued a letter that all conditions have been satisfied, a preconstruction conference has been held, and that the Developer may proceed. 4. PHASED DEVELOPMENT. If the plat is a phase of a multi-phased preliminary plat, the City may refuse to approve final plats of subsequent phases if the Developer has breached this Contract and the breach has not been remedied. Development of subsequent phases may not proceed until Development Contracts for such phases are approved by the City. Park charges and availability charges for sewer and water referred to in this Contract are not being imposed on outlots, if any, in the plat that are designated in an approved preliminary plat for future subdivision into lots and blocks. Such charges will be calculated and imposed when the outlots are final platted into lots and blocks. 5. PRELIMINARY PLAT STATUS. If the plat is a phase of a multi-phased preliminary plat, the preliminary plat approval for all phases not final platted shall lapse and be void unless final platted into lots and blocks, not outlots, within five (5) years after preliminary plat approval. 6. CHANGES IN OFFICIAL CONTROLS. For two (2) years from the date of this Contract, no amendments to the City's Comprehensive Plan or official controls shall apply to or affect the use, development density, lot size, lot layout or dedications of the approved final plat unless required by state or federal law or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything in this Contract to the contrary, to the full extent permitted by state law, the City may require compliance with any amendments to the City's Comprehensive Plan, official controls, platting or dedication requirements enacted after the date of this Contract. 7. DEVELOPMENT PLANS. The plat shall be developed in accordance with the following plans and at the Developer’s sole expense. The plans shall not be attached to this Contract. If the plans vary from the written terms of this Contract, the written terms shall control. The plans are: Plan A - Plat Plan B - Final Grading, Drainage, and Erosion Control Plan REV2: 04/18/2016 3 Plan C - Tree Preservation and Reforestation Plan Plan D - Plans and Specifications for Public Improvements Plan E - Street Lighting Plan Plan F - Landscape Plan 8. IMPROVEMENTS. The Developer shall install and pay for the following: A. Streets B. Sanitary Sewer C. Watermain D. Surface Water Facilities (pipe, ponds, rain gardens, etc.) E. Grading and Erosion Control F. Sidewalks/Trails G. Street Lighting H. Underground Utilities I. Street Signs and Traffic Control Signs J. Landscaping K. Tree Preservation and Reforestation L. Wetland Mitigation and Buffers M. Monuments Required by Minnesota Statutes N. Miscellaneous Facilities The improvements shall be installed in accordance with the City subdivision ordinance and the City’s Engineering Design and Construction Standards Manual and pursuant to the direction of the City Engineer. The Developer shall submit plans and specifications which have been prepared by a competent registered professional engineer to the City for approval by the City Engineer. The Developer shall instruct its engineer to provide adequate field inspection personnel to assure an acceptable level of quality control to the extent that the Developer's engineer will be able to certify that the construction work meets the approved City standards as a condition of City acceptance. In addition, the City may, at the City's discretion and at the Developer's expense, have one or more City inspectors and a soil engineer inspect the work on a full or part-time basis. The Developer's engineer shall provide for on-site project management. The Developer's engineer is responsible for design changes and contract administration between the Developer REV2: 04/18/2016 4 and the Developer's contractor. The Developer or his engineer shall schedule a pre-construction meeting at a mutually agreeable time at the City Hall with all parties concerned, including the City staff, to review the program for the construction work. All labor and work shall be done and performed in the best and most workmanlike manner and in strict conformance with the approved plans and specifications. No deviations from the approved plans and specifications will be permitted unless approved in writing by the City Engineer. The Developer agrees to furnish to the City a list of contractors being considered for retention by the Developer for the performance of the work required by the Contract. The Developer shall not do any work or furnish any materials not covered by the plans and specifications and special conditions of this Contract, for which reimbursement is expected from the City, unless such work is first ordered in writing by the City Engineer as provided in the specifications. 9. CITY ENGINEERING ADMINISTRATION AND CONSTRUCTION OBSERVATION. At the time of Final Plat, the Developer shall submit an escrow for City Engineering Administration and Construction Observation in an amount provided under paragraph 34. Summary of Cash Requirements. Thereafter, the Developer shall reimburse the City each month, within 30 days of receiving an invoice, for all engineering administration and construction observation performed during the construction of the plat After 30 days of the invoice, the City may draw upon the escrow and stop the work on site until said escrow has been replenished in its full amount. City engineering administration will include monitoring of construction progress and construction observation, consultation with the Developer and his engineer on status or problems regarding the project, coordination for testing, final inspection and acceptance, project monitoring during the warranty period, and processing of requests for reduction in security. Construction observation may be performed by the City's in-house staff or consulting engineer. Construction observation shall include, at the discretion of the city, part or full time inspection of proposed public utilities and street construction. Services will be billed on an hourly basis. REV2: 04/18/2016 5 The direction and review provided through the inspection of the improvements should not be considered a substitute for the Developer required management of the development. The Developer will cause the contractor(s) to furnish the City with a schedule of proposed operations at least five (5) days prior to the commencement of construction of each type of Improvement. City shall inspect all Developer Installed Improvements during and after construction for compliance with approved plans and specifications. The Developer will notify the City Engineer at such times during construction as the City Engineer requires for inspection purposes. Such inspection is pursuant to the City’s governmental authority, and no agency or joint venture relationship between the City and the Developer is thereby created. 10. CONTRACTORS/SUBCONTRACTORS. City Council members, City employees, and City Planning Commission members, and corporations, partnerships, and other entities in which such individuals have greater than a 25% ownership interest or in which they are an officer or director may not act as contractors or subcontractors for the public improvements identified in Paragraph 8 above. 11. PERMITS. The Developer shall obtain or require its contractors and subcontractors to obtain all necessary permits, including but not limited to: A. Right-of-Way Excavations and Obstructions: • City of Lake Elmo, Right-of-Way Utility Installation(s) • City of Lake Elmo, Right-of-Way Obstruction(s) • Washington County, Utility Installations(s) • Washington County, Street or Driveway Access(s) • Minnesota Department of Transportation, Utility Installation • Minnesota Department of Transportation, Right-of-Way Permit B. Watermain Extensions: • Minnesota Department of Health C. Sanitary Sewer Extensions: • Minnesota Pollution Control Agency • Metropolitan Council Environmental Services D. Stormwater Management: • Valley Branch, Brown’s Creek or South Washington Watershed District Permit E. Erosion, Sedimentation Control: • Minnesota Pollution Control Agency, General NPDES Stormwater Permit • SWPPP (Stormwater Pollution Prevention Plan) REV2: 04/18/2016 6 F. Wetland Mitigation: • Board of Water and Soil Resources, WCA G. Construction Dewatering: • Minnesota Department of Natural Resources 12. TIME OF PERFORMANCE. The Developer shall install all required public improvements by October 31, 2017, with the exception of the final wear course of asphalt on streets. The Developer shall install the bituminous wearing course of streets after the first course has weathered a winter season, consistent with warranty requirements, however final acceptance of the improvements will not be granted until all work is completed including the final wear course. The Developer may, however, request an extension of time from the City. If an extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases and amending this agreement to reflect the extended completion date. Final wear course placement outside of this time frame must have the written approval of the City Engineer. 13. LICENSE. The Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the plat to perform all work and inspections deemed appropriate by the City in conjunction with plat development. 14. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public utility construction, and street construction is restricted to access the subdivision via Hudson Boulevard and Jade Trail North. No construction traffic is permitted on other adjacent local streets. 15. CONSTRUCTION SEQUENCE AND COMPLIANCE. The City will require the Developer to construct the improvements in a sequence which will allow progress and compliance points to be measured and evaluated. The Developer and/or their representatives are required to supervise and coordinate all construction activities for all improvements and must notify the City in writing stating when the work is ready for the inspection at each of the measurable points defined in the following paragraphs 16, 17 and 18. 16. EROSION CONTROL. Prior to initiating site grading, the erosion control plan, Plan B, REV2: 04/18/2016 7 shall be implemented by the Developer and inspected and approved by the City. Erosion control practices must comply with the approved plans and specifications for the plat, with all watershed district permits and with Minnesota Pollution Control Agency’s Best Management Practices. The City may impose additional erosion control requirements as deemed necessary. 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 such 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 and City's rights or obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days after submitting an invoice for such costs, the City may draw down the security to pay any costs. No development, utility or street construction will be allowed and no building permits will be issued unless the plat is in full compliance with the approved erosion control plan. If building permits are issued prior to the acceptance of public improvements, the Developer assumes all responsibility for erosion control compliance throughout the plat and the City may take such action as allowed by this agreement against the Developer for any noncompliant issue as stated above. Erosion control plans for individual lots will be required in accordance with the City’s building permit requirements, or as required by the City or City Engineer. 17. GRADING PLAN. The plat shall be graded in accordance with the approved grading drainage and erosion control plan, Plan "B". The plan shall conform to the Engineering Design and Construction Standards Manual. All grading shall be completed within the Subdivision prior to the preparation and submittal of the as-constructed grading plan. A. Within thirty (30) days after completion of the grading, the Developer shall provide the City with a "record" grading plan certified by a registered land surveyor or engineer that all ponds, swales, and ditches have been constructed on public easements or land owned by the City. The "record" plan shall contain site grades and field verified elevations of the following: a) cross sections of ponds; b) location and elevations along all swales, emergency overflows, wetlands, wetland mitigation areas if any, REV2: 04/18/2016 8 ditches, locations and dimensions of borrow areas/stockpiles; c) lot corner elevations and house pads; and d) top and bottom of retaining walls. B. The City will not issue any building permits until the approved certified record grading plan is on file with the City. 18. STREET AND UTILITY IMPROVEMENTS. All storm sewers, sanitary sewers, watermain, and streets shall be installed in accordance with the approved Plans and Specifications for Public Improvements, Plan "D". The plan shall conform to the City’s Engineering Design and Construction Standards Manual. Curb and gutter and the first lift of the bituminous streets, sidewalks, boulevards graded, street signs installed, and all restoration work on the site shall be completed in accordance with the approved plans. Once the work is completed, the developer or its representative shall submit a written request to the City asking for an inspection of the initial improvements. The City will then schedule a walk- through to create a punch list of outstanding items to be completed. Upon receipt of the written punch list provided by the City, the punch list items must be completed by the Developer and the City notified to re- inspect the improvements. The final bituminous wear course shall be installed in accordance with paragraph 12 above. 19. STREET MAINTENANCE DURING CONSTRUCTION. The Developer shall be responsible for all street maintenance until the streets are accepted by the City in writing. Warning signs shall be placed when hazards develop in streets to prevent the public from traveling on same and to direct attention to detours. If and when streets become impassable, such streets shall be barricaded and closed. In the event residences are occupied prior to completing streets, the Developer shall maintain a smooth surface and provide proper surface drainage to insure that the streets are passable to traffic and emergency vehicles. The Developer shall be responsible for keeping streets within and without the subdivision clean of dirt and debris that may spill, track, or wash onto the street from the Developer’s operation. The Developer may request, in writing, that the City keep the streets open during the winter months by plowing snow from the streets prior to final acceptance of said streets. The City shall not be responsible for repairing the streets because of snow plowing operations. Providing snow plowing service does not constitute final acceptance of REV2: 04/18/2016 9 the streets by the City. The Developer shall contract for street cleaning within and immediately adjacent to the development. At a minimum, scraping and sweeping shall take place on a weekly basis. A copy of this contract shall be approved by the City before grading is started. The contract shall provide that the City may direct the contractor to clean the streets and the contractor will bill the Developer. 20. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction required by this Contract, the improvements lying within public easements shall become City property. Prior to acceptance of the improvements by the City, the Developer must furnish the City with a complete set of reproducible "record" plans, an electronic file of the "record" plans in accordance with the City’s Engineering Design and Construction Standards Manual together with the following affidavits: - Developer/Developer Engineer’s Certificate - Land Surveyor’s Certificate certifying that all construction has been completed in accordance with the terms of this Contract. All necessary forms will be furnished by the City. Upon receipt of “record plans” and affidavits, and upon review and verification by the City Engineer, the City Engineer will accept the completed public improvements. 21. PARK DEDICATION. The Developer shall dedicate 1.77 acres of park land comprised of that the portion of the northern greenbelt park not within the Xcel Energy easement with the third phase of the development. Fees in lieu of land dedication was paid as part of the Boulder Ponds Development Contract. 22. SANITARY SEWER AND WATER UTILITY AVAILABILITY CHARGES (SAC AND WAC). The Developer shall be responsible for the payment of all sewer availability charges (SAC) and all water availability charges (WAC) with respect to the Improvements required by the City and any state or metropolitan government agency. The sewer availability charge (SAC) in the amount of $3,000.00 per REU shall be paid by the Developer prior to the City recording the final plat. The total amount to be paid by the Developer is $54,000.00. REV2: 04/18/2016 10 The water availability charge (WAC) in the amount of $3,000.00 per REU shall be paid by the Developer prior to the City recording the final plat. The total amount to be paid by the Developer is $54,000.00. In addition, a sewer connection charge in the amount of $1,000.00 per REU, a Met Council sewer availability charge in the amount of $2,485.00 per REU, and a water connection charge in the amount of $1,000.00 per REU will be collected by the City at the time the building permit is issued for each lot. 23. TRAFFIC CONTROL SIGNS. The Developer is responsible for the cost of for the installation of traffic control signs. The traffic control signs shall be installed in accordance with the City subdivision ordinance and the City’s Engineering Design and Construction Standards Manual and pursuant to the direction of the City Engineer. 24. STREET LIGHTS. The Developer is responsible for the cost of street light installation consistent with a street lighting plan approved by the City. Before the City signs the final plat, the Developer shall post a security for street light installation consistent with the approved plan. The required security is $12,000 and consist of one (2) decorative lights at $6000 each. The Developer shall also pay $258 in payment of the first year operating costs for street lights. 25. WETLAND MITIGATION. The Developer shall complete wetland mitigation/restoration in accordance with the approved Plans and Specifications and in accordance with any applicable Watershed or agency Permits. If the mitigation work is found to be incomplete or restoration is unsuccessful the City may draw down the security at any time during the warranty period if the Developer fails to take corrective measures to be used by the City to perform the work. 26. BUILDING PERMITS/CERTIFICATES OF OCCUPANCY. A. Public sewer and water, curbing, and one lift of asphalt shall be installed on all public and private streets prior to issuance of any building permits, except one model home on a lot acceptable to the Planning Director. B. Prior to issuance of building permits, wetland buffer monuments shall be placed in accordance with the City’s zoning ordinance. The monument design shall be approved by the REV2: 04/18/2016 11 Community Development Department. C. Written certification of the as-constructed grading must be on file at the City for the phase of the development. D. Breach of the terms of this Contract by the Developer, including nonpayment of billings from the City, shall be grounds for denial of building permits and/or withholding of other permits, inspection or actions, including lots sold to third parties, and the halting of all work in the plat. E. If building permits are issued prior to the acceptance of public improvements, the Developer assumes all liability and costs resulting in delays in completion of public improvements and damage to public improvements caused by the City, Developer, its contractors, subcontractors, materialmen, employees, agents, or third parties. F. No sewer and water connection permits may be issued until the streets needed for access have been paved with a bituminous surface and the utilities are tested and approved by the City Engineer. G. The City will not issue a certificate of occupancy for any building constructed on any lot or parcel in the Plat until Public sewer and water, curbing, and one lift of asphalt is installed on all public and private streets; all utilities are tested and approved by the City Engineer; and the as- constructed grading must be on file at the City for the phase of the development. This requirement does not allow for the development to be phased for some lots. 27. RESPONSIBILITY FOR COSTS. A. In the event that the City receives claims from labor, materialmen, or others that work required by this Contract has been performed, the sums due them have not been paid, and the laborers, materialmen, or others are seeking payment from the City, the Developer hereby authorizes the City to commence an Interpleader action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon the letters of credit in an amount up to 125 percent of the claim(s) and deposit the funds in compliance with the Rule, and upon such deposit, the Developer shall release, discharge, and dismiss the City from any further proceedings as it pertains to the letters of credit deposited with the District REV2: 04/18/2016 12 Court, except that the Court shall retain jurisdiction to determine attorneys' fees pursuant to this Contract. B. Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City in conjunction with the development of the plat, including but not limited to legal, planning, engineering and inspection expenses incurred in connection with approval and acceptance of the plat, the preparation of this Contract, review of construction plans and documents, and all costs and expenses incurred by the City in monitoring and inspecting development of the plat. All amounts incurred and due at the time, must be fully paid prior to execution and release of the final plat for recording. C. The Developer shall hold the City and its officers, employees, and agents harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from plat approval and development. The Developer shall indemnify the City and its officers, employees, and agents for all costs, damages, or expenses which the City may pay or incur in consequence of such claims, including attorneys' fees. D. The Developer shall reimburse the City for costs incurred in the enforcement of this Contract, including reasonable engineering and attorneys' fees. E. The Developer shall pay, or cause to be paid when due, and in any event before any penalty is attached, all special assessments referred to in this Contract. This is a personal obligation of the Developer and shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it. F. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Contract within thirty (30) days after receipt. Bills not paid within thirty (30) days shall be assessed a late fee per the City of Lake Elmo adopted Fee Schedule. Upon request, the City will provide copies of detailed invoices of the work performed. 28. SPECIAL PROVISIONS. The following special provisions shall apply to plat development: A. Implementation of the recommendations listed in the April 21, 2016 Engineering memorandum. REV2: 04/18/2016 13 B. The Developer must obtain a sign permit from the City Building Official prior to installation of any subdivision identification signs. C. The Developer shall enter into a landscape license agreement that identifies required management of landscaping and individuals or entities responsible for any landscaping installed in areas outside of land dedicated as public park and open space on the final plat. 29. MISCELLANEOUS. A. The Developer may not assign this Contract without the written permission of the City Council. The Developer's obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it. B. Retaining walls that require a building permit shall be constructed in accordance with plans and specifications prepared by a structural or geotechnical engineer licensed by the State of Minnesota. Following construction, a certification signed by the design engineer shall be filed with the City Engineer evidencing that the retaining wall was constructed in accordance with the approved plans and specifications. All retaining walls identified on the development plans or by special conditions referred to in this Contract shall be constructed before any other building permit is issued for a lot on which a retaining wall is required to be built. C. Appropriate legal documents regarding Homeowner Association documents, covenants and restrictions, as approved by the City Attorney, shall be filed with the final plat. No third- party beneficiary is hereby conferred. D. Developer shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has accepted the public improvements, public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of Developer's work or the work of its subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall be not less than $500,000 for one person and $1,000,000 for each occurrence; limits for property damage shall be not less than $200,000 for each occurrence; or a combination single limit policy of $1,000,000 or more. The City shall be named as an additional insured on REV2: 04/18/2016 14 the policy, and the Developer shall file with the City a certificate evidencing coverage prior to the City signing the plat. The certificate shall provide that the City must be given thirty (30) days advance written notice of the cancellation of the insurance. E. Third parties shall have no recourse against the City under this Contract. F. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Contract is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Contract. G. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Contract shall not be a waiver or release. H. This Contract shall run with the land and may be recorded against the title to the property. The Developer covenants with the City, its successors and assigns, that the Developer has fee title to the property being final platted and/or has obtained consents to this Contract, in the form attached hereto, from all parties who have an interest in the property; that there are no unrecorded interests in the property being final platted; and that the Developer will indemnify and hold the City harmless for any breach of the foregoing covenants. I. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. J. The Developer represents to the City that the plat complies with all city, county, metropolitan, state, and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the plat does not comply, the City may, at its option, refuse to allow construction or development work in the plat until the Developer does REV2: 04/18/2016 15 comply. Upon the City’s demand, the Developer shall cease work until there is compliance. 30. EVENTS OF DEFAULT. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement, any one or more of the following events: A. Subject to unavoidable delays, failure by the Developer to commence and complete construction of the Public Improvements pursuant to the terms, conditions and limitations of this Agreement. B. Failure by the Developer to substantially observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. 31. REMEDIES ON DEFAULT. Whenever any Event of Default occurs, the City, subject to any rights of third parties agreed to by the City pursuant to this Agreement, or otherwise by written, executed instrument of the City, may take any one or more of the following: A. The City may suspend its performance under the Agreement until it receives assurances from the Developer, deemed adequate by the City, that Developer will cure its default and continue their performance under the Agreement. Suspension of performance includes the right of the City to withhold permits including, but not limited to, building permits. B. The City may initiate such action, including legal or administrative action, as is necessary for the City to secure performance of any provision of this agreement or recover any amounts due under this Agreement from the Developer, or immediately draw on the Letter of Credit, as set forth in this Agreement. 32. 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 their 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 such expenses may include, but are not REV2: 04/18/2016 16 limited to, the reasonable fees of legal counsel employed with respect to the enforcement of this Agreement. 33. WARRANTY. The Developer warrants all improvements required to be constructed by it pursuant to this Contract against poor material and faulty workmanship. The Developer shall submit a letter of credit for twenty-five percent (25%) of the amount of the original cost of the improvements. A. The required warranty period for materials and workmanship for the utility contractor installing public sewer and water mains shall be two (2) years from the date of final written City acceptance of the work. B. The required warranty period for all work relating to street construction, including concrete curb and gutter, sidewalks and trails, materials and equipment shall be subject to one (1) year from the date of final written acceptance, unless the wearing course is placed during the same construction season as the bituminous base course. In those instances, the Developer shall guarantee all work, including street construction, concrete curb and gutter, sidewalks and trails, material and equipment for a period of two (2) years from the date of final written City acceptance of the work. C. The required warranty period for sod, trees, and landscaping is two growing seasons following installation. 34. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the terms of this agreement, payment of special assessments, payment of the costs of all public improvements, and construction of all public improvements, the Developer shall furnish the City with an irrevocable letter of credit, in the form attached hereto, from a bank, cash escrow or a combination cash escrow and Letter of Credit ("security") for $533,844. The amount of the security was calculated as follows: CONSTRUCTION CATEGORY: COST 125% 1. Grading N/A 2. Sanitary Sewer $73,000 $91,250 3. Watermain $67,000 $83,750 4. Storm Sewer (includes pond structures and outfall pipes) $39,500 $49,375 5. Streets $84,175 $105,219 6. Trails and Sidewalks REV2: 04/18/2016 17 7. Surface Water Facilities (infiltration basins, bio retention basins, rain gardens, etc.) $13,000 $16,250 8. Street Lighting $12,000 $15,000 9. Street Signs and Traffic Control Signs $1,600 $2000 10. Private Utilities (electricity, natural gas, telephone, and cable) (To be coordinated by the Developer) 11. Landscaping $75,000 $93,750 12. Tree Preservation and Restoration N/A 13. Wetland Mitigation and Buffers $1,000 $1,250 14. Monuments $1,800 $2,250 15. Erosion and Sedimentation Control $36,650 $45,813 16. Miscellaneous Facilities N/A 17. Developer’s Record Drawings $2,500 3,125 CONSTRUCTION SUBTOTAL $427,075 N/A TOTAL PROJECT SECURITIES (at 125% Construction Costs) N/A $533,844 This breakdown is for historical reference; it is not a restriction on the use of the security. The bank shall be subject to the approval of the City Administrator. The City may draw down the security, without notice, for any violation of the terms of this Contract or if the security is allowed to lapse prior to the end of the required term. If the required public improvements are not completed at least thirty (30) days prior to the expiration of the security, the City may also draw it down. If the security is drawn down, the proceeds shall be used to cure the default. 35. REDUCTION OF SECURITY. Upon written request by the Developer to the City Engineer and upon receipt of proof satisfactory to the City Engineer that work has been completed in accordance with the approved plans and specifications, and terms of this Agreement, and that all financial obligations to the City have been satisfied, the City Engineer may approve reductions in the security as follows: a. Upon completion of grading operations, including temporary site restoration, Developer shall submit an as-built grading survey to the City that at a minimum establishes the as-built REV2: 04/18/2016 18 grades at all lot corners and downstream drainage conveyance systems and storm water ponds. Upon inspection of the site and approval of the as-built survey, 100%, or $0.00, of the grading security may be released. This security reduction does not include amounts related to erosion and sedimentation control. b. Up to 75% of the security provided in accordance with paragraph 34 may be released upon completion of the following key milestones of the project as determined by the City Engineer. c. Construction Categories 2 and 3: The amount of $131,250 may be released when all sanitary sewer and watermain utilities have been installed, all testing and televising has been successfully completed, sanitary sewer as-built inverts have been verified, and the utilities are considered ready for use by the City Engineer. d. Construction Categories 4 and 5: The amount of $115,945 may be released when all streets, and storm sewer have been installed and tested, and have been found to be complete to the satisfaction of the City Engineer including all corrective work for any identified punch list items and including verification of storm sewer as-built inverts, but not including the final wear course. e. Construction Categories 6-18: The amount of $153,188 may be released when all remaining Developer’s obligations under this Agreement have been completed including: (1) bituminous wear course, (2) street lighting and private utilities, (3) sidewalks and trails, (4) bio retention facilities, (5) iron monuments for lot corners have been installed, (3) all financial obligations to the City satisfied, (4) the required "record" plans in the form of the City standards have been received and approved by the City, and (5) the public improvements are accepted by the City Engineer and City Council. f. At no point may the Security be reduced below twenty-five percent (25%) of the original security amount until: (1) the warranty period has expired, (2) all improvements have been fully completed and excepted by the City, including all corrective work and identified punch list items, and (3) all financial obligations to the City have been satisfied. g. In addition to the above project milestone based security reductions, the Developer may submit written request to the City Engineer and upon receipt of proof satisfactory to the City Engineer that work is progressing in accordance with the approved plans and specifications, REV2: 04/18/2016 19 and terms of this Agreement, and that all financial obligations to the City have been satisfied, the City Engineer may approve a one-time reduction in the security for Construction Categories 2-5 in an amount not to exceed fifty percent (50%) of the initial security amounts. h. It is the intention of the parties that the City at all times have available to it a Letter of Credit in an amount adequate to ensure completion of all elements of the Subdivision Improvements and other obligations of the Developer under this Agreement, including fees or costs due to the City by the Developer. To that end and notwithstanding anything herein to the contrary, all requests by the Developer for a reduction or release of the Letter of Credit shall be evaluated by the City in light of that principle. 36. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash requirements under this Contract which must be furnished to the City at the time of final plat approval: Sewer Availability Charge (SAC) $54,000 Water Availability Charge (WAC) $54,000 Park Dedication N/A Street Light Operating Fee $258 City Base Map Upgrading ($25.00 per REU) $450 City Engineering Administration Escrow $50,000 TOTAL CASH REQUIREMENTS $158,708 37. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the following address:1660 Highway 100 South, Suite 400, St. Louis Park, MN 55416. Notices to the City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City by certified mail in care of the City Administrator at the following address: Lake Elmo City Hall, 3800 Laverne Avenue N. Lake Elmo, Minnesota 55042. 38. EVIDENCE OF TITLE. Developer shall furnish the City with evidence of fee ownership of the property being platted by way of an attorney’s title opinion or title insurance policy dated not earlier than thirty (30) days prior to the execution of the plat. REV2: 04/18/2016 20 CITY OF LAKE ELMO (SEAL) BY: Mike Pearson, Mayor REV2: 04/18/2016 21 AND Julie Johnson, City Clerk DEVELOPER: BY: Its STATE OF MINNESOTA ) ( ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this day of , 2016, by Mike Pearson and by Julie Johnson, the Mayor and City Clerk of the City of Lake Elmo, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2016, by the of . NOTARY PUBLIC DRAFTED BY: City of Lake Elmo 3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901 REV2: 04/18/2016 22 FEE OWNER CONSENT TO DEVELOPMENT CONTRACT , fee owners of all or part of the subject property, the development of which is governed by the foregoing Development Contract, affirm and consent to the provisions thereof and agree to be bound by the provisions as the same may apply to that portion of the subject property owned by them. Dated this day of , 2016. STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2016, by . NOTARY PUBLIC DRAFTED BY: City of Lake Elmo 3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901 REV2: 04/18/2016 23 MORTGAGE CONSENT TO DEVELOPMENT CONTRACT , which holds a mortgage on the subject property, the development of which is governed by the foregoing Development Contract, agrees that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage. Dated this day of , 2016. STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of _, 2016, by . NOTARY PUBLIC DRAFTED BY: City of Lake Elmo 3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901 REV2: 04/18/2016 24 CONTRACT PURCHASER CONSENT TO DEVELOPMENT CONTRACT , which/who has a contract purchaser's interest in all or part of the subject property, the development of which is governed by the foregoing Development Contract, hereby affirms and consents to the provisions thereof and agrees to be bound by the provisions as the same may apply to that portion of the subject property in which there is a contract purchaser's interest. Dated this day of , 2016. STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of _, 2016, by . NOTARY PUBLIC DRAFTED BY: City of Lake Elmo 3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901 REV2: 04/18/2016 25 EXHIBIT “A” TO DEVELOPMENT CONTRACT Legal Description of Property Being Final Platted as Outlot H, Boulder Ponds REV2: 04/18/2016 26 IRREVOCABLE LETTER OF CREDIT No. Date: TO: City of Lake Elmo Dear Sir or Madam: We hereby issue, for the account of OP4 Boulder Ponds, LLC and in your favor, our Irrevocable Letter of Credit in the amount of $533,844.00, available to you by your draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause, "Drawn under Letter of Credit No. , dated , 2 , of (Name of Bank) "; b) Be signed by the Mayor or City Administrator of the City of Lake Elmo. c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30, 2_ _. This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written notice to the Lake Elmo City Administrator that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: City Administrator, City Hall, 3800 Laverne Ave. N. Lake Elmo Minnesota 55042 and is actually received by the City Administrator at least thirty (30) days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 500. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. BY: Its MAYOR AND COUNCIL COMMUNICATION DATE: 5/17/16 CONSENT ITEM #: 20 MOTION AGENDA ITEM: An exception to Section 154.406, D to allow accessory structure closer to front lot line than principal structure. SUBMITTED BY: Stephen Wensman, Planning Director REVIEWED BY: Kristina Handt, City Administrator Emily Becker, City Planner BACKGROUND: Mae Vue and Jeerasak Poophakumpanart, the owner of a 40 acre parcel at 2675 Legion Avenue, are requesting an exemption from the requirement that accessory structures be located no closer to the front lot line than the principal structure. The City of Lake Elmo Code, Section 154.406, D. prohibits accessory structures from being located closer to the front lot line than the principal structure unless by Resolution of City Council, an exception is granted. The owners are requesting such an exemption. ISSUE BEFORE COUNCIL: Approve Resolution 2016-43 to grant an exemption to allow an accessory structures to be located closer to the front lot line than the principal structure. PROPOSAL DETAILS/ANALYSIS: The owners of 2675 Legion Avenue, recently constructed a home on the northwest corner of their property, more or less on the high point of the property. Access to their property is from a long driveway that extends over an unbuilt Legion Avenue right of way, to the south of the property. The City Council recently granted an encroachment to the Legion Avenue right of way for their driveway in order to allow the construction of the driveway on the Legion Avenue right of way, providing access to the property. Although the property access is to the south, the front property line is along the Legion Avenue easement on the west side of the property. This unbuilt Legion Avenue easement is 41.48 foot wide, at present, too narrow to construct a street without additional right of way from the property to the west. There are no plans to construct an extension of Legion Avenue, nor are there any public utilities planned for the easement at this time. The owners would like to locate an accessory structure to the south and west of their home, closer to the front property line than the principal structure. The new accessory structure would be located 25’ from the Legion Avenue easement. The home is located 68.4 feet from Legion Avenue easement (the front property line). FISCAL IMPACT: None OPTIONS: City Council Meeting May 17, 2016 Consent Agenda Item #20 2 To deny or approve. RECOMMENDATION: Staff recommends the City Council approve Resolution 2016-43 approving an exemption to allow an accessory structure closer to the front property line than the principal structure. If this item is removed from the Consent Agenda, Staff recommends the following motion: “Move to recommend approval of Resolution 2016-43 approving an exemption to allow an accessory structure closer to the front property line than the principal structure at 2675 Legion Avenue”. ATTACHMENT:  Resolution 2016-43  Site Plan/Survey Resolution 2016-43 CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2016-43 A RESOLUTION APPROVING AN EXEMPTION FROM CODE SECTION 154.406, D TO ALLOW AN ACCESSORY STRUCTURE CLOSER TO FRONT PROPERTY LINE THAN PRINCIPAL STRUCTURE. WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, the owners of a residential property at 2675 Legion Avenue, Mae Vue and Jeerasak Poophakumpanart would like to construct an accessory structure to be located closer to the front property line than the principal structure; and WHEREAS, the City of Lake Elmo Code of Ordinances, Section 154.406, D prohibits accessory structures closer to front property lines than the principal structure unless an exemption is granted by City Council resolution; and WHEREAS, the City Council considered the said matter at its May 17, 2016 meeting; and NOW, THEREFORE, based on the information received, the City Council makes the following: FINDINGS 1. The proposed accessory structure will comply with the City’s accessory structure ordinances and zoning district regulations, with the exception as approved by this Resolution. 2. The proposed accessory structure location has been reviewed by the City Staff and the City Engineer and the location appears to poses no threat, nor impact any City project or plans. 3. The proposed accessory structure will pose no threat to the health, safety and welfare of the public. BE IT RESOLVED THAT the City Council does hereby approve the exemption from the front property setback, complying with Section 154.406, D of the City of Lake Emo’s Code of Ordinances. This resolution was adopted by the City Council of the City of Lake Elmo on this 17th day of May, 2016. Resolution 2016-43 _____________________________ Mike Pearson, Mayor ATTEST: ___________________________ Julie Johnson, City Clerk MAYOR AND COUNCIL COMMUNICATION DATE: 5/17/16 REGULAR ITEM #: 21 MOTION AGENDA ITEM: Planning Department 2016 Work Plan SUBMITTED BY: Stephen Wensman, Planning Director REVIEWED BY: Emily Becker, City Planner Planning Commission BACKGROUND: Every year, the Planning Staff and the Planning Commission prepare an annual workplan for the Department. The 2016 workplan got a late start this year with all the staff changes and workload. The Planning Departments work plan for 2016 was prepared by reviewing the 2015 workplan and with input from the Planning Commission. The Council typically reviews the work plan and provides comments as needed about Department tasks and priorities. The primary intent of the work plan is to help prioritize the projects the Planning Staff and Planning Commission will be reviewing over the course of 2016, and to also help keep the Commission informed about the internal planning related activities and projects that will be undertaken by the Staff over the coming year. This is a working document that provides guidance to the Commission and Council yet has the flexibility to respond to priorities as they emerge. It will also help the Commission and Planning Staff to gauge its progress at achieving some of its goals for the year. ISSUE BEFORE COUNCIL: Review and provide comment regarding Planning Department tasks and priorities for 2016 as needed. PROPOSAL DETAILS/ANALYSIS: None FISCAL IMPACT: Not yet specified. Certain items on the work plan may require outside assistance, such as the zoning code codification and work on a form based code. Staff will seek Council direction as appropriate prior to utilizing such assistance. RECOMMENDATION: City Council Meeting May 17, 2016 Consent Agenda Item #21 2 This item has been placed on the Consent Agenda for Council approval. If the City Council wants to discuss the workplan, or to modify it, the Council can move the agenda item to the regular agenda then accept the work plan with modifications. If on the regular agenda, the Staff and the Planning Commission recommended the following motion: “Move to accept the 2016 Planning Development Department Work Plan as amended” ATTACHMENTS: 1. 2016 Planning Development Department Work Plan 1 2016 Planning Department Work Plan Prepared by the Lake Elmo Planning Commission: 4/25/16 Accepted by the City Council Key Status C – Complete IP – In Progress Completion Goal (CG) A – 0 to 3 months B – 3 to 6 months C – 6 to 9 months D – 9 to 12 months PL Priority Level (1-5 with 1 being the highest priority) Project and Description CG PL Status ZONING INITIATIVES Zoning Map Updates  Update Zoning Map to change Village parcels to VMX consistent with the Comprehensive Plan B 2  Implement zoning map changes for specific developments in the Village and I-94 Corridor. B 2 Zoning Text Amendments (Zoning Code Update)  Codify Zoning Ordinance D 1  General performance standards B 1  Specific development standards C 4  Public Facilities ordinance amendments B 1  Tree Preservation Ordinance perfecting amendments C 3  Home Occupation Ordinance B 2  Amend LDR Setback Requirements A 1  Landscape Ordinance Amendment D 5  Outdoor Lighting Ordinance Revisions D 3  Outdoor Wood Burning Furnaces D 5  Revise contractor work hours ordinance C 3 IP  Wireless Communications Ordinance for Microcell technology D 4  Hunting Ordinance (City Attorney) IP  Platting for Minor Subdivisions D 5  Create new zoning district for Washington County Landfill consistent with the MPCA D 5 Form-based Code 2  Prepare a scope of work to be accomplished including the need for outside assistance A 1  Draft a form-based code to supplement the Village Mixed-Use zoning district based on the scope of work C 2  Incorporate design standards from the Design Standards Manual as part of a form-based code C 2 Shoreland Ordinance Update  Obtain DNR approval of revised Shoreland Ordinance B 1 IP  Adopt final version of Shoreland Ordinance based on DNR approval B 1 Subdivision Ordinance  Prepare update to incorporate updated engineering standards and to revise submission requirements D 4 Airport Zoning  Resolve zoning conflicts with the Metropolitan Airports Commission, Met Council, MnDOT, and Washington County D 1 IP  Implement City airport zoning regulations for the airport safety zones within the Village Planning Area D 2 PLANNING INITIATIVES Village Area Planning  Submit application for new Village Parkway railroad crossing B 2 IP  Update Village AUAR B 1 General Comprehensive Planning  Review Waste Water chapter of Comprehensive Plan in conjunction with rural areas review D 3  RFP for Comprehensive Planning Services B 2  Plan for possible density reductions and reguiding land use in the Village and I-94 area to address changes in the 2015 system statement A 1 IP  Amend Rural Single Family description to allow for sewer service within the MUSA A 1 IP Park Planning  Assist with the creation of a master plan for selected City parks, provide assistance to Parks Commission as needed D 3  Update the Comprehensive Park and Trail System Plan C 3  Update Parks 10-year CIP B 2 Capital Improvement Plan  Planning Commission review of 10-year Capital Improvement Plan for consistency with the Comprehensive Plan D 2 General Planning Studies  Conduct review of 201 (community) septic system policies and management practices. Develop system for proper oversight, billing, and maintenance of community systems. D 3 IP 3  Develop list of contacts and resources for private community septic systems C 3 TRANSPORTATION PLANNING PROJECTS  Participate in Manning Avenue (CSAH 15) study with Washington County. B 2 IP ADMINISTRATIVE INITIATIVES Developer’s Agreements and Escrows  Track planning and other review time against development escrow accounts A 1 IP Building Division  Develop disaster preparedness manual for Lake Elmo D 3 Permit Software Implementation  Implement Code Enforcement Module for Permit Works A 2  Add Planning Module from PermitWorks to track planning and zoning applications B 1  Complete move of planning file system to PermitWorks software B 3 IP Code Enforcement  Provide support to code enforcement program with the Building Inspector as the City’s code enforcement officer B 3 IP File Archiving and Management  Archive older zoning files B 2 IP  Scan zoning files in to Laserfische system C 4 IP Policy and Procedures Review  Develop application intake and completeness worksheet A 2 IP  Streamline & Improve Policies/Procedures for the handling of routine land matters including but not limited to variances, site plan review, setbacks et al; A 1 MAYOR AND COUNCIL COMMUNICATION DATE: May 17, 2016 CONSENT ITEM #: 22 AGENDA ITEM: Washington County HRA Economic Development Bill SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: The Council heard from Barbara Dacy, Executive Director or the Washington County HRA, at their May 10th workshop regarding legislative to give the HRA economic development authority. As she mentioned, the bill has passed the legislature and been signed by the Governor. However, the Washington County Board of Commissioners still needs to adopt enabling legislation so Lake Elmo can still weigh in on the proposal. ISSUE: Should the City Council adopt Resolution 2016-39 A Resolution Supporting Proposed Legislation to Authorize the County of Washington to Confer Economic Development Powers upon the Washington County Housing and Redevelopment Authority? PROPOSAL: A copy of the resolution, bill and key aspects of the bill as discussed at the workshop are included in your packet. RECOMMENDATION: If removed from the consent agenda: Motion to approve Resolution No. 2016-39, A Resolution Supporting Proposed Legislation to Authorize the County of Washington to Confer Economic Development Powers upon the Washington County Housing and Redevelopment Authority. RESOLUTION NO. 2016-39 RESOLUTION OF THE CITY OF LAKE ELMO, MINNESOTA SUPPORTING PROPOSED LEGISLATION TO AUTHORIZE THE COUNTY OF WASHINGTON TO CONFER ECONOMIC DEVELOPMENT POWERS UPON THE WASHINGTON COUNTY HOUSING AND REVELOPMENT AUTHORITY BACKGROUND RECITALS WHEREAS, the Washington County Housing and Redevelopment Authority (the “WCHRA”) is a county housing and redevelopment authority created and existing under Laws 1974, Chapter 475, as amended, which provides and maintains affordable, decent, and safe housing opportunities in Washington County ; and WHEREAS, in 2013 the County Board of Commissioners (the “County Board”) of the County of Washington (the “County”) established a broadly-representative economic development work group comprised of municipal economic development practitioners and community partners to assist the County in developing a county-wide long-range economic development strategy; and WHEREAS, based on the process carried out by the economic development work group, in May of 2014 the County adopted an Economic Development Strategic Plan (the “Economic Development Strategic Plan”); and WHEREAS, in furtherance of the Economic Development Strategic Plan, the County has determined that the WCHRA should have primary responsibility for economic development activities on behalf of the County; and WHEREAS; proposed legislation has been prepared which would authorize the County Board by resolution to confer on the WCHRA the powers of an economic development authority (the “Proposed Law”), thus enabling the County to address economic needs as identified in the Economic Development Strategic Plan; and WHEREAS, adoption of the Proposed Law would empower the WCHRA to undertake economic development activities not authorized by the current WCHRA enabling law, such as, by way of illustration, implementing County marketing and public relations programs relating to economic development, conducting economic development studies to document the need for financial assistance programs, and carrying out financial assistance programs for economic development purposes; and ATTACHMENT B PROPOSED BILL Laws 1974, Chapter 475, section 1, is amended to read: Section 1. WASHINGTON COUNTY; COMMUNITY DEVELOPMENT AGENCY HOUSING AND REDEVELOPMENT AUTHORITY. There is created in Washington county a public body corporate and politic, to be known as the Washington county housing and redevelopment authority community development agency, having all the powers and duties of a county authority under the provisions of Minnesota Statutes, sections 469.001 to 469.047, and all powers of a county housing and redevelopment authority under any other provisions of Minnesota law. and Sections 469.001 to 469.047 and 469.090 to 469.1081 apply to the county of Washington. For purposes of applying sections 469.090 to 469.1081 to Washington county, notwithstanding Minnesota Statutes, section 469.090, subdivision 3, “city” means county and “city council” means county board. Laws 1974, chapter 475, section 2, subdivision 1, is amended to read: Subdivision 1. This act shall not limit or restrict any existing housing and redevelopment authority or city economic development authority. The jurisdiction and area of operation of the Washington county community development agency housing and redevelopment authority includes all of the area within the territorial boundaries of the county and includes the areas within the boundaries of every city in the county and the areas of operation of city housing and redevelopment authorities and city economic development authorities in the county, whenever created, and notwithstanding any provision of Minnesota Statutes, sections 469.005, subdivision 1, or 469.008, subject, however, to Section 3. The jurisdiction and area of operation of the Washington county community development agency housing and redevelopment authority shall not be affected by any concurrence by the Washington county community development agency housing and redevelopment authority under section 469.004, subdivision 5. Laws 1974, chapter 475, section 2, subdivision 2, is amended to read: Subdivision 2. A municipal housing and redevelopment authority may request the Washington county community development agency housing and redevelopment authority to handle the housing duties of the authority and, in such an event, the Washington county community development agency housing and redevelopment authority shall act and have exclusive jurisdiction for housing in the municipality pursuant to the provisions of the municipal housing and redevelopment act, Minnesota Statutes, sections 469.001 to 469.047 462.411 to 462.711, and acts amendatory thereof. A transfer of duties relating to housing shall not transfer any duties relating to redevelopment. Laws 1974, chapter 475, section 2, is amended by adding a subdivision to read: Subdivision 2a. The governing body of a statutory or home rule charter city or township with an existing municipal economic development authority may request the Washington county community development agency to handle the economic development, housing or redevelopment duties of the authority and, in such an event, the Washington county community development agency shall act and have exclusive jurisdiction for economic development, housing or redevelopment duties in the city or township pursuant to the provisions of the economic development authorities act, Minnesota Statutes, sections 469.090 to 469.1081. 462.411 to 462.711 Laws 1974, chapter 475, section 2 is amended by adding a subdivision to read: Subdivision 4. Washington county community development agency. (a) The Washington county housing and redevelopment authority shall be known as the Washington county community development agency. In addition to the other powers granted in this section, the Washington county community development agency shall have the powers of an economic development authority under sections 469.090 to 469.1081 that are granted to the agency by resolution adopted by the Washington county board of commissioners, except as provided in paragraph (b). The enabling resolution may impose the limits upon the actions of the agency that are listed in paragraph (c). The agency may exercise any of the powers granted to it under sections 469.001 to 469.047 and any of the powers of an economic development authority granted to it by the Washington county board of commissioners for the purposes described in these sections. (b) The Washington county community development agency may not levy the tax described in section 469.107, but with the approval of the Washington county board may increase its levy of the special tax described in section 469.033, subdivision 6, to any higher limit authorized under section 469.107. The money in the housing and redevelopment project fund under section 469.033, subdivision 6, may be expended by the Washington county community development agency for the purposes of sections 469.001 to 469.047 or sections 469.090 to 469.1081. (c) The enabling resolution may impose the limits upon the actions of the agency as may be imposed by a municipality under section 469.092, except that the resolution adopted under paragraph (a) may not impose any limitations on the authority’s exercise of its powers under sections 469.001 to 469.047. (d) Section 469.1082 does not apply to the county of Washington. Laws 1974, chapter 475, section 2, is amended by adding a subdivision to read: Subdivision. 5. Offers of tax-forfeited lands. Notwithstanding any other law, Washington county may offer to the Washington county community development agency, under the conditions and policies established by the county, nonconservation tax-forfeited land prior to making the properties available to cities in Washington county. Laws 1974, chapter 475, section 3 is amended to read: Sec. 3. MUNICIPAL APPROVAL. Subdivision 1. Housing and redevelopment projects. If any housing or redevelopment project is undertaken in Washington county pursuant to this authorization, and the project is within the boundaries of any statutory or home rule charter city or township, the project and the location of the project shall be subject to approval by the governing body of the city or township. The procedures in section 469.007, subdivision 2, shall apply to the governing body project and location approvals required by this section. Subdivision 2. Economic development projects. If any development district or economic development project is undertaken in Washington county pursuant to this authorization, and the project is within the boundaries of any statutory or home rule charter city or township, the project shall be subject to the planning, zoning, sanitary, and building laws, ordinances, and regulations applicable to the locality in which the project is situated. Additionally, unless such city or township has authorized the Washington county community development agency to exercise exclusive jurisdiction for economic development duties pursuant to Laws 1974, chapter 475, section 2, subdivision 2a, as amended, then prior to the exercise of any powers under Minnesota Statutes, sections 469.090 to 469.1081, within the boundaries of the city or township with respect to a proposed development district or economic development project or proposed development district or economic development project site, the development district or economic development project and the location of the project must be authorized by resolution of the governing body of the city or township with respect to each identified parcel of property. EFFECTIVE DATE. This section is effective the day after the governing body of Washington county and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 654.021, subdivisions 2 and 3. 820053.DOCX WHEREAS, the Proposed Law would retain the existing County Board consent process for establishing the WHCRA’s housing and redevelopment authority levy under Minnesota. Statutes, Section 469.033, subdivision 6, and would preclude the WCHRA from imposing any concurrent or separate economic development authority levy otherwise authorized under Minnesota Statutes, Section 469.107 (while permitting the County Board to consent to a WCHRA levy at a rate equal to the higher of the permissible housing and redevelopment authority levy rate or the permissible economic development authority levy rate as they may be established by the Legislature); and WHEREAS, consistent with existing requirements of the WCHRA’s enabling law for local approval of housing projects and redevelopment projects, the Proposed Law would require municipal location and project approval as well for development districts and economic development projects; and WHEREAS, in order to appropriately reflect the combined housing, redevelopment and economic development powers to be conferred, the Proposed Law would change the name of the WCHRA to the Washington County Community Development Agency; and WHEREAS, the Proposed Law would effect no change in the current structure or composition of the WCHRA Board of Commissioners; and WHEREAS, the Proposed Law would authorize the County to offer tax-forfeited real property to the WCHRA on the same basis as such parcels are offered to a County department; and WHEREAS, the County Board has determined to include the Proposed Law as part of the County’s legislative initiative for the 2016 Legislature; and WHEREAS, the City Council of the City of Lake Elmo, Minnesota, finds that enactment by the Legislature of the Proposed Law, and the carrying out of economic development activities by the WCHRA in the County, including in the City of Lake Elmo, pursuant to the Proposed Law, would be in the public interest and would afford substantial benefit to the residents, businesses, citizens and taxpayers of the City of Lake Elmo; and WHEREAS, the County, the WCHRA and the City of Lake Elmo contemplate that the WCHRA and the City will work together as partners in carrying out economic development activities within the City of Lake Elmo which will be complementary and non-duplicative. NOW, THEREFORE, the City Council of the City of Lake Elmo, Minnesota adopts this Resolution supporting the proposed legislation described above in furtherance of economic development activities by the WCHRA on behalf of Washington County. This Resolution was declared duly passed and adopted and was signed by the Mayor of the City of Lake Elmo and attested to by the City Clerk this _____ day of _________, 2016. ______________________________ Mike Pearson, Mayor ATTESTED: ______________________________ Julie Johnson, City Clerk MAYOR & COUNCIL COMMUNICATION -- page 1 -- DATE: May 17, 2016 REGULAR $$ ITEM # 23 AGENDA ITEM: Presentation of Bond Issuance Results; $9,860,000 General Obligation Improvement Bond Series 2016A SUBMITTED BY: Cathy Bendel, Finance Director THROUGH: Tammy Omdal, Senior Vice President, Northland Securities REVIEWED BY: Tammy Omdal, Northland Securities Kristina Handt, City Administrator SUGGESTED ORDER OF BUSINESS: - Questions from Council to Staff ............................................. Mayor Facilitates - Report/Presentations…………………….……City Staff, Northland Securities - Questions from Council to Staff……………………………..Mayor Facilitates - Public Input, if Appropriate………………………………….Mayor Facilitates - Call for Motion ............................................................... Mayor & City Council - Discussion ....................................................................... Mayor & City Council - Action on Motion .................................................................... Mayor Facilitates POLICY RECOMMENDER: Finance FISCAL IMPACT: The City will have the responsibility for the debt service on the issuance of $9,860,000 of new debt as presented in the Financing Plan. SUMMARY AND ACTION REQUESTED: On May 3, 2016, the City authorized the issuance and sale of $9,860,000 in General Obligation Improvement Bonds, Series 2016A. Resolution No. 2016-44 awards the sale, prescribes the forms and details and provides for the payment of $9,860,000 to the City of Lake Elmo. The recommended motion for this action is as follows: City Council Meeting [Regular Agenda Item 23] May 17, 2016 -- page 2 -- “Move to approve Resolution No. 2016-44 awarding the sale, prescribing the form and details and providing for the payment of $9,860,000 General Obligation Bonds, Series 2016A” STAFF REPORT: Northland Securities will accept bids on the 2016A Bonds on Tuesday, May 17, 2016 at 10:30 A.M. Tammy Omdal, Senior Vice President with Northland Securities will present the results of the sale of the 2016A Bonds and respond to inquiries. RECOMMENDATION: It is recommended that the City Council approve Resolution 2016-44 authorizing the issuance and sale of $9,860,000 in General Obligation Bonds, Series 2016A. “Move to approve Resolution No. 2016-44 awarding the sale, prescribing the form and details and providing for the payment of $9,860,000 General Obligation Bonds, Series 2016A” ATTACHMENT(S): 1. Resolution No. 2016-44 2. Moody’s rating report dated May 11th, 2016 CERTIFICATION OF MINUTES RELATING TO $9,860,000 GENERAL OBLIGATION BONDS, SERIES 2016A Issuer: City of Lake Elmo, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held on May 17, 2016, at 7:00 p.m., at the City Hall. Members present: Members absent: Documents Attached: Minutes of said meeting (including): RESOLUTION NO. 2016-44 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $9,860,000 GENERAL OBLIGATION BONDS, SERIES 2016A I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 17th day of May, 2016. City Clerk It was reported that _________ (__) proposals for the purchase of $9,860,000 General Obligation Bonds, Series 2016A were received prior to 10:30 A.M., Central Time, pursuant to the Official Statement distributed to potential purchasers of the Bonds by Northland Securities, Inc., municipal advisor to the City. The proposals have been publicly opened, read and tabulated and were found to be as follows: See Attached Councilmember ____________________ introduced the following resolution and moved its adoption, which motion was seconded by Councilmember ____________________: RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $9,860,000 GENERAL OBLIGATION BONDS, SERIES 2016A BE IT RESOLVED by the City Council, City of Lake Elmo, Minnesota (the “City”), as follows: SECTION 1. AUTHORIZATION AND SALE. 1.01. Authorization. This City Council, by resolution duly adopted on May 3, 2016, authorized the issuance and sale of its General Obligation Bonds, Series 2016A (the “Bonds”), pursuant to Minnesota Statutes, Chapters 429, 444 and 475, for the purpose of (a) financing various improvement projects in the City (the “Improvements Project”), (b) financing various street, water, sewer and storm water improvements in the City (the “Utility Project”), and (c) funding costs of issuance of the Bonds (collectively, the “Project”). 1.02. Sale. Pursuant to the Notice of Sale and the Preliminary Official Statement prepared on behalf of the City by Northland Securities, Inc., municipal advisor to the City, sealed or electronic proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of _______________, in ____________, ___________ (the “Purchaser”), to purchase the Bonds in the principal amount of $9,860,000, at a price of $____________ plus accrued interest, if any, on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. The principal amount of the portion of the Bonds, $_________ allocable to the Improvements Project shall be designated as the “Improvement Bonds,” and the principal amount of the portion of the Bonds allocable to the Utility Project, $__________, shall be designated as the “Utility Bonds.” 1.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Finance Director are hereby authorized and directed on behalf of the City to execute a contract for the sale of the Bonds with the Purchaser in accordance with the Preliminary Official Statement. The good faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been delivered, and shall be deducted from the purchase price paid at settlement. SECTION 2. BOND TERMS; REGISTRATION; EXECUTION AND DELIVERY. 2.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 2 2.02. Maturities; Interest Rates; Denominations and Payment. The Bonds shall be originally dated as of June 1, 2016, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on January 15 in the years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption, at the annual rates set forth opposite such years and amounts, as follows: Maturity Improvement Bonds Utility Bonds Total Rate 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof shall be payable by check or draft issued by the Registrar described herein, provided that so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 2.03. Dates and Interest Payment Dates. Upon initial delivery of the Bonds pursuant to Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable on January 15 and July 15 in each year, commencing January 15, 2017, each such date being referred to herein as an Interest Payment Date, to the persons in whose names the Bonds are registered on the Bond Register, as hereinafter defined, at the Registrar’s close of business on the first day of the calendar month in which such Interest Payment Date occurs, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months. 3 2.04. Redemption. Bonds maturing on January 15, 2025 and later years shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in integral multiples of $5,000, on January 15, 2024, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The City Finance Director shall cause notice of the call for redemption thereof to be published if and as required by law, and at least thirty (30) and not more than sixty (60) days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the Registrar and registered holders of any Bonds to be redeemed at their addresses as they appear on the Bond Register described in Section 2.06 hereof, provided that notice shall be given to any securities depository in accordance with its operational arrangements. No defect in or failure to give such notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS- ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing on January 15, 20____ and 20____ (the “Term Bonds”) shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 2.04 at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on January 15 in each of the following years the following stated principal amounts of such Bonds: Year Principal Amount The remaining $_______________ stated principal amount of such Bonds shall be paid at maturity on January 15, 20____. Year Principal Amount The remaining $_______________ stated principal amount of such Bonds shall be paid at maturity on January 15, 20____. 4 Notice of redemption shall be given as provided in the preceding paragraph.] 2.05. Appointment of Registrar. The City hereby appoints Northland Trust Services, Inc., in Minneapolis, Minnesota, as the initial Bond registrar, transfer agent and paying agent (the “Registrar”). The Mayor and City Finance Director are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company organized under the laws of the United States or one of the states of the United States and authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar, effective upon not less than thirty days’ written notice and upon the appointment and acceptance of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 2.06. Registration. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a register (the “Bond Register”) in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. The term Holder or Bondholder as used herein shall mean the person (whether a natural person, corporation, association, partnership, trust, governmental unit, or other legal entity) in whose name a Bond is registered in the Bond Register. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the Holder thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the Holder thereof or by an attorney duly authorized by the Holder in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the first day of the month in which the interest payment date occurs and until such interest payment date. (c) Exchange of Bonds. At the option of the Holder of any Bond in a denomination greater than $5,000, such Bond may be exchanged for other Bonds of authorized denominations, of the same maturity and a like aggregate principal amount, upon surrender of the Bond to be exchanged at the office of the Registrar. Whenever any Bond is so surrendered for exchange the City shall execute and the Registrar shall authenticate and deliver the Bonds which the Bondholder making the exchange is entitled to receive. (d) Cancellation. All Bonds surrendered for payment, transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. 5 (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the Bond Register as the absolute owner of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving payment of or on account of, the principal of and interest on the Bond and for all other purposes; and all payments made to or upon the order of such Holder shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. (j) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.07. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the City Finance Director and shall be executed on behalf of the City by the signatures of the Mayor and the City Finance Director, provided that the signatures may be 6 printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until the date of delivery of such Bond. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond, substantially in the form provided in Section 2.09, has been executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on any Bond shall be conclusive evidence that it has been duly authenticated and delivered under this Resolution. When the Bonds have been prepared, executed and authenticated, the City Finance Director shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale theretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.08. Securities Depository. (a) For purposes of this section the following terms shall have the following meanings: “Beneficial Owner” shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person’s subrogee. “Cede & Co.” shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. “DTC” shall mean The Depository Trust Company of New York, New York. “Participant” shall mean any broker-dealer, bank or other financial institution for which DTC holds bonds as securities depository. “Representation Letter” shall mean the Representation Letter pursuant to which the City agrees to comply with DTC’s Operational Arrangements. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the Bond Register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the Bond Register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to 7 the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC’s Operational Arrangements, 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 interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of physical certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC, if not previously filed with DTC, by the Mayor or City Finance Director is hereby authorized and directed. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of physical certificates and the method of payment of principal of and interest on such Bonds in the form of physical certificates. 2.09. Form of Bonds. The Bonds shall be prepared in substantially the form found at EXHIBIT A attached hereto. Section 3. USE OF PROCEEDS; PROJECT FUND. 3.01. Project Fund There is hereby created a special bookkeeping fund to be designated as the “General Obligation Bonds, Series 2016A Project Fund” (the “Project Fund”), to be held and administered 8 by the City Finance Director separate and apart from all other funds of the City. Within the Project Fund are established the following accounts: (a) Improvements Project Account. The Improvements Project Account shall be credited with (i) $__________ from the proceeds from the Bonds and (ii) all special assessments collected with respect to the Improvements Project until all costs of the Improvements Project have been fully paid. The City Finance Director shall maintain the Improvements Project Account until payment of all costs and expenses incurred in connection with the construction of the Improvements Project have been paid. (b) Utility Project Account. The Utility Project Account shall be credited with $_________ from the proceeds of the Bonds. The City Finance Director shall maintain the Utility Project Account until all costs and expenses incurred by the City in connection with the construction of the Utility Project have been paid. From the Project Fund there shall be paid all costs and expenses related to the construction and acquisition of the Project. After payment of all such costs and expenses, the Project Fund shall be terminated. All funds on hand in the Project Fund when terminated shall be credited to the Bond Fund described in Section 4 hereof, unless and except as such proceeds may be transferred to some other fund or account as to which the City has received from bond counsel an opinion that such other transfer is permitted by applicable laws and does not impair the exemption of interest on the Bonds from federal income taxes. In no event shall funds remain in the Project Fund later than June 1, 2021. SECTION 4. GENERAL OBLIGATION BONDS, SERIES 2016A BOND FUND. The Bonds shall be payable from a separate General Obligation Bonds, Series 2016A Bond Fund (the “Bond Fund”) of the City, which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. Into the Bond Fund shall be paid (a) any funds received from the Purchaser upon delivery of the Bonds in excess of the amounts specified in Section 3 above; (b) special assessments levied and collected in accordance with this Resolution except as otherwise provided in Section 3.01, clause (a) hereof; (c) net revenues of the municipal water, sewer and storm water systems, such revenues to be distributed ratably with respect to the Utility Bonds payable therefrom and any other obligations of the City payable from the same source; (d) any taxes collected pursuant to Section 7 hereof; and (e) any other funds appropriated by this Council for the payment of the Bonds. The principal of and interest on the Bonds shall be payable from the Bond Fund, and the money on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. On or before each principal and interest payment date for the Bonds, the City Finance Director is directed to remit to the Registrar from funds on deposit in the Bond Fund the amount needed to pay principal and interest on the Bonds on the next succeeding principal and interest payment date. There are hereby established two accounts in the Bond Fund, designated as the “Debt Service Account” and the “Surplus Account.” There shall initially be deposited into the Debt Service Account upon the issuance of the Bonds the amount set forth in clause (a) above. Thereafter, during each bond year (each twelve month period commencing on January 16 and ending on the following January 15, a “Bond Year”), as monies are received into the Bond Fund, 9 the City Finance Director shall first deposit such monies into the Debt Service Account until an amount has been appropriated thereto sufficient to pay all principal and interest due on the Bonds through the end of the Bond Year. All subsequent monies received in the Bond Fund during the Bond Year shall be appropriated to the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient for the payment of principal and interest then due, the City Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. Investment earnings (and losses) on amounts from time to time held in the Debt Service Account and Surplus Account shall be credited or charged to said accounts. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Account when the balance therein is sufficient, and the City covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. SECTION 5. SPECIAL ASSESSMENTS. The City hereby covenants and agrees that, for the payment of the costs of the Improvements Project, the City has done or will do and perform all acts and things necessary for the final and valid levy of special assessments in the principal amount of $__________, which is not less than 20% of the cost of the Improvements Project. The principal of and interest on such special assessments are estimated to be levied and collected in the years and amounts shown on EXHIBIT B attached hereto. The principal of the assessments shall be made payable in annual installments, with interest as established by this Council in accordance with law on unpaid installments thereof from time to time remaining unpaid. In the event any special assessment shall at any time be held invalid with respect to any lot or tract of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or by this Council or by any of the officers or employees of the City, either in the making of such special assessment or in the performance of any condition precedent thereto, the City hereby covenants and agrees that it will forthwith do all such further things and take all such further proceedings as shall be required by law to make such special assessment a valid and binding lien upon said property. SECTION 6. PLEDGE OF NET REVENUES. It is hereby found, determined and declared that the City owns and operates its municipal water, sewer and storm water systems as revenue- producing utilities and as a convenience, and that the net operating revenues of the systems, after deducting from the gross receipts derived from charges for the service, use and availability of the systems the normal, current and reasonable expenses of operation and maintenance thereof, will be sufficient, together with any other pledged funds, for the payment when due of the principal of and interest on the Utility Bonds and on any other bonds to which such revenues are pledged. Pursuant to Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the registered owners from time to time of the Bonds that until the Bonds and the interest thereon are discharged as provided in Section 8 or paid in full, the City will impose and collect reasonable charges in accordance with said Section 444.075 for the service, use and availability of its municipal water and storm water systems according to schedules sufficient to produce net revenues sufficient, with other funds pledged to payment of the Utility Bonds, to pay the Utility 10 Bonds and any other bonds to which said net revenues have been pledged; and the net revenues, to the extent necessary, are hereby irrevocably pledged and appropriated to the payment of the Bonds and interest thereon when due. Nothing herein shall preclude the City from hereafter making further pledges and appropriations of the net revenues of its municipal water, sewer and storm water systems for payment of additional obligations of the City hereafter authorized if the Council determines before the authorization of such additional obligations that the estimated net revenues of the systems will be sufficient, together with any other sources pledged to the payment of the outstanding and additional obligations, for payment of the outstanding bonds and such additional obligations. Such further pledges and appropriations of net revenues may be made superior or subordinate to or on a parity with, the pledge and appropriation herein made. SECTION 7. PLEDGE OF TAXING POWERS. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce aggregate amounts which, together with the collections of other amounts as set forth in Section 4, will produce amounts not less than 5% in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City, the taxes to be levied and collected in the following years and amounts: Levy Years Collection Years Amount See attached schedules The taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the tax levies from other legally available funds, in accordance with the provisions of Minnesota Statutes, Section 475.61. SECTION 8. DEFEASANCE. When all of the Bonds have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the Holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date 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 Registrar on or before that date an amount equal to the principal, redemption premium, if any, and interest then due, provided that notice of such redemption has been duly given as provided herein. 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 the Registrar or with a bank or trust company qualified by law to act as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited for such purpose, bearing interest payable at such times and at such rates and maturing or callable at the holder’s option on such dates as shall be required to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been irrevocably provided for, to an 11 earlier designated redemption date. If such deposit is made more than ninety days before the maturity date or specified redemption date of the Bonds to be discharged, the City must have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates or earlier designated redemption date. SECTION 8. TAX COVENANTS; ARBITRAGE MATTERS AND CONTINUING DISCLOSURE. 8.01. General Tax Covenant. The City agrees with the registered owners from time to time of the Bonds that it will not take, or permit to be taken by any of its officers, employees or agents, any action that would cause interest on the Bonds to become includable in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the “Code”) and applicable Treasury Regulations (the “Regulations”), and agrees to take any and all actions within its powers to ensure that the interest on the Bonds will not become includable in gross income of the recipient under the Code and the Regulations. All proceeds of the Bonds deposited in the Project Fund will be expended solely for the payment of the costs of the Project. The Project is and will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, management contract, use agreement, capacity agreement or other agreement with any non- governmental person relating to the use of the Project, or any portion thereof, or security for the payment of the Bonds which might cause the Bonds to be considered “private activity bonds” or “private loan bonds” pursuant to Section 141 of the Code. 8.02. Arbitrage Certification. The Mayor and City Finance Director being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with Section 148 of the Code, and applicable Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be “arbitrage bonds” within the meaning of the Code and Regulations. 8.03. Arbitrage Rebate. The City acknowledges that the Bonds are subject to the rebate requirements of Section 148(f) of the Code. The City covenants and agrees to retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(f) and applicable Regulations unless the Bonds qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section 1.148-7 of the Regulations and no “gross proceeds” of the Bonds (other than amounts constituting a “bona fide debt service fund”) arise during or after the expenditure of the original proceeds thereof. 8.04. Qualified Tax-Exempt Obligations. The City Council hereby designates the Bonds as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of tax-exempt obligations (within the meaning of Section 12 265(b)(3) of the Code) which will be issued by the City and all subordinate entities during calendar year 2016 does not exceed $10,000,000. 8.05. Reimbursement. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the Project which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the Project meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to “preliminary expenditures” for the Project as defined in Section 1.150-2(f)(2) of the Regulations, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% of the “issue price” of the Bonds. 8.06. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner owner means, in respect of the Bonds, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of the Bonds, any person or entity which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bonds (including persons or entities holding Certificates through nominees, depositories or other intermediaries), or (b) is treated as the owner of the Bonds for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: 13 (1) On or before 12 months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2015, the following financial information and operating data in respect of the City (the Disclosure Information): (A) the audited financial statements of the City for such fiscal year, prepared in accordance with generally accepted accounting principles in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under the headings: “Economic and Financial Information—Valuations”; “--Tax Capacity Rates” and “—Tax Levies and Collections” and “Summary of Debt and Debt Statistics.” Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been filed with the SEC or have been made available to the public by the Municipal Securities Rulemaking Board (the “MSRB”) through its Electronic Municipal Market Access System (EMMA). The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. 14 (2) In a timely manner, not in excess of 10 business days, to the MSRB through EMMA, notice of the occurrence of any of the following events (each a “Material Fact,” as hereinafter defined): (A) principal and interest payment delinquencies; (B) non-payment related defaults; (C) unscheduled draws on debt service reserves reflecting financial difficulties; (D) unscheduled draws on credit enhancements reflecting financial difficulties; (E) substitution of credit or liquidity providers, or their failure to perform; (F) adverse tax opinions or events affecting the tax-exempt status of the security; (G) modifications to rights of security holders; (H) bond calls; (I) defeasances; (J) release, substitution, or sale of property securing repayment of the securities; (K) rating changes; (L) bankruptcy, insolvency, receivership, or similar event of the obligated person; (M) the consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of an obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (N) appointment of a successor or additional trustee or the change of name of a trustee, if material. As used herein, for those events that must be reported if material, a “Material Fact” is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell the Bonds or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a Material Fact is also a fact that would be deemed material for purposes of the purchase, holding or sale of the Bonds within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental 15 authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner, to the MSRB through EMMA, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. (1) The City agrees to make available to the MSRB through EMMA, in an electronic format as prescribed by the MSRB, the information described in subsection (b). (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term; Amendments; Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(2) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary 16 qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. SECTION 9. CERTIFICATION OF PROCEEDINGS. 9.01. Registration of Bonds. The City Finance Director is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Washington County, together with such additional information as is required, and to obtain a certificate that the Bonds and the taxes levied pursuant hereto have been duly entered upon the County Auditor’s Bond register. 9.02. Authentication of Transcript. The officers of the City and the County Auditor are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the Bonds and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the City as to the correctness of all statements contained therein. 9.03. Official Statement. The Preliminary Official Statement relating to the Bonds, dated as of _________, 2016 prepared and distributed by Northland Securities, Inc., is hereby approved. Northland Securities, Inc., is hereby authorized on behalf of the City to prepare and distribute to the Purchaser within seven business days from the date hereof, a Final Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Bonds required to be included in the Official Statement by Rule l5c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The officers of the City are hereby authorized and directed 17 to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. 9.04. Authorization of Payment of Certain Costs of Issuance of the Bonds. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to the Registrar on the closing date for further distribution as directed by Northland Securities, Inc. 9.05. Effective Date. This resolution shall be in full force and effect from and after its passage. Upon 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. EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF LAKE ELMO GENERAL OBLIGATION BONDS, SERIES 2016A R-___ $_________ Interest Rate Maturity Date Date of Original Issue CUSIP No. __% January 15, 20__ June 1, 2016 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THOUSAND DOLLARS CITY OF LAKE ELMO, State of Minnesota (the “City”) acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner specified above, or registered assigns, the principal amount specified above on the maturity date specified above and promises to pay interest thereon from the date of original issue specified above or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, at the annual interest rate specified above, payable on January 15 and July 15 in each year, commencing January 15, 2017 (each such date, an “Interest Payment Date”), all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest so payable on any Interest Payment Date shall be paid to the person in whose name this Bond is registered at the close of business on the first day (whether or not a business day) of the calendar month in which such Interest Payment Date occurs. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof at the principal office of the agent of the Registrar described below, the principal hereof are payable in lawful money of the United States of America by check or draft drawn on Northland Trust Services, Inc., Minneapolis, Minnesota, as Bond registrar, transfer agent and paying agent, or its successor designated under the Resolution described herein (the “Registrar”) or other agreed-upon means of payment by the Registrar or its designated successor. For the prompt and full payment of such principal and interest as the same respectively come due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue (the “Bonds”) in the aggregate principal amount of $9,860,000 issued pursuant to a resolution adopted by the City Council on May 17, 2016 (the “Resolution”), to finance various street, water, sewer and storm water improvements and to fund the costs of issuance of the Bonds. This Bond issued by authority of and in strict accordance with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429, 444 and 475. For the full and prompt payment of the principal of and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are hereby 2 irrevocably pledged. The Bonds are issuable only in fully registered form, in the denomination of $5,000 or any integral multiple thereof, of single maturities. Bonds maturing on January 15, 2025 and later years shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the Bond depository in accordance with its customary procedures) in multiples of $5,000, on January 15, 2024, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The City shall cause notice of the call for redemption thereof to be published if and to the extent required by law, and at least thirty (30) and not more than sixty (60) days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail (or, if applicable, provided in accordance with the operational arrangements of the securities depository), to the registered holders of any Bonds, at the holders’ addresses as they appear on the Bond register maintained by the Bond Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS- ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing in the years 20____ and 20____ shall be subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on January 15 in each of the years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20__ Term Bonds Maturing in 20__ Sinking Fund Payment Date Aggregate Principal Amount Sinking Fund Payment Date Aggregate Principal Amount (final maturity) (final maturity) Notice of redemption shall be given as provided in the preceding paragraph.] As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner’s attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner’s attorney, and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the designated transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date; subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to any such transfer or exchange. 3 The Bonds have been designated by the City as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment as herein provided and for all other purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that, prior to the issuance hereof, the City Council has by the Resolution covenanted and agreed to collect and apply to payment of the bonds ad valorem taxes levied on all taxable property in the City, certain net revenues of its municipal water, sewer and storm water systems and special assessments upon property specially benefited by the local improvements financed with the Bonds, which taxes, revenues and assessments are estimated to be collectible in years and amounts sufficient to produce sums not less than 5% in excess of the principal of and interest on the Bonds when due, and has appropriated such assessments, revenues and taxes to its General Obligation Bonds, Series 2016 Bond Fund for the payment of such principal and interest; that if necessary for the payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; that all proceedings relative to the projects financed by this Bond have been or will be taken according to law and that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. 4 IN WITNESS WHEREOF, the City has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and City Finance Director and has caused this Bond to be dated as of the date set forth below. CITY OF LAKE ELMO, MINNESOTA (facsimile signature – City Finance Director) (facsimile signature – Mayor) __________ CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: __________________ NORTHLAND TRUST SERVICES, INC., as Registrar By Authorized Representative 5 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 the applicable laws or regulations: TEN COM --as tenants in common UTMA …………. as Custodian for ………….. (Cust) (Minor) TEN ENT --as tenants by the entireties under Uniform Transfers to Minors Act ....…….. (State) JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. __________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ______________________________________________________________________ the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint ______________________________________________________________________ attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: EXHIBIT B Special Assessments and Tax Levies WASHINGTON COUNTY AUDITOR’S CERTIFICATE AS TO REGISTRATION AND TAX LEVY The undersigned, being the duly qualified and acting County Auditor of Washington County, Minnesota, hereby certifies that there has been filed in my office a certified copy of a resolution duly adopted on May 17, 2016, by the City Council of Lake Elmo, Minnesota, setting forth the form and details of an issue of $9,860,000 General Obligation Bonds, Series 2016A dated the date of issuance thereof. I further certify that the issue has been entered on my bond register and the taxes required by law have been levied as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal on the _____ day of ____________, 2016. Washington County Auditor (SEAL) U.S. PUBLIC FINANCE CREDIT OPINION 11 May 2016 New Issue Contacts Antonina Peshkova 312-706-9977 Associate Analyst antonina.peshkova@moodys.com Henrietta Chang 312-706-9960 VP-Sr Credit Officer henrietta.chang@moodys.com Lake Elmo, MN New Issue: Moody's Assigns Aa2 to Lake Elmo, MN's $9.9M GOULT Bonds, Ser. 2016A Summary Rating Rationale Moody's Investors Service has assigned a Aa2 rating to the City of Lake Elmo's (MN) $9.9 million General Obligation (GO) Bonds, Series 2016A. Concurrently, Moody's maintains the Aa2 rating on city's outstanding GO debt. Post-sale, the city will have $31.4 million of GO debt outstanding. The Aa2 rating reflects the city's modestly-sized and affluent tax base experiencing growth, located in the Twin Cities metro region; strong finances supported by conservative budget strategies and healthy unassigned fund balance; moderate direct debt burden; and modest exposure to unfunded pension liabilities. Credit Strengths »Affluent tax base favorably located in Twin Cities metropolitan area »Strong financial operations and healthy financial reserves and liquidity Credit Challenges »Small tax base size relative to others in the rating category »Above average fixed costs Rating Outlook Outlooks on the underlying credit are usually not assigned to local governments with this amount of debt. Factors that Could Lead to an Upgrade »Growth in the city's tax base to levels consistent with higher-rated entities Factors that Could Lead to a Downgrade »Deterioration of the tax base or weakening of the demographic profile »Material declines in the city's financial reserves »Significant increase in debt levels MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. 2 11 May 2016 Lake Elmo, MN: New Issue: Moody's Assigns Aa2 to Lake Elmo, MN's $9.9M GOULT Bonds, Ser. 2016A Key Indicators Exhibit 1 Lake Elmo, MN The above table does not include the most recent full value or sale data. Post sale, the district will have $12 million in net direct debt outstanding, equal to 0.9% of full value and 0.8 timesoperating revenue.Source: Moody's Investors Service, Audited Financial Results, US Census Bureau Detailed Rating Considerations Economy and Tax Base: Modestly-Sized Affluent Tax Base Near the Twin Cities The city's tax base is expected to grow in the medium term due to its favorable location within the Twin Cities metropolitan area and large amount of land available for development. Located in Washington County (Aaa stable), the city lies along the eastern edge of the metropolitan region. The city's full value of $1.3 billion experienced three years of significant residentially-driven growth, recovering losses in prior years. This trend is expected to continue given several ongoing and planned developments. Major development areas include a mixed use development along I-94, the “Old Village” section of the city, and the northern edge of the city along Highway 36. Lake Elmo is primarily a bedroom community with the majority of residents commuting to employment opportunities throughout the Twin Cities area. Based upon net tax capacity, the city is 77% residential and 15% commercial and industrial. The largest employer of city residents is 3M Company, which is headquartered in nearby Maplewood (Aa1) and employs approximately 9,100. Management reports that the city's other major employers and taxpayers remain stable. The city's population has grown in recent decades, including 17.6% between 2000 and 2010, and the Metropolitan Council (Minn- St. Paul Area) (Aaa stable) estimates that the city's 2010 population of 8,069 could grow to 18,200 by 2040. Washington County's unemployment rate of 3.7% in March of 2016 remained below the national (5.0%) and on par with the state (3.7%) levels for same period. Lake Elmo's resident income levels significantly exceed those of the nation, with median family income equivalent to 194.1% and of the nation. Financial Operations And Reserves: Stable Financial Operations Supported by Healthy Reserves The city's financial operations are expected to remain stable given its history of sound financial management and maintenance of healthy General Fund liquidity and reserves. The city has closed five out of the past six fiscal years with modest operating surpluses, which management attributes to conservative budget assumptions. A minimal $4,000 operating surplus in fiscal 2014 increased the General Fund balance to $3.2 million, or a substantial 93.5% of revenues. Approximately $600,000 of the city's fund balance is MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE 3 11 May 2016 Lake Elmo, MN: New Issue: Moody's Assigns Aa2 to Lake Elmo, MN's $9.9M GOULT Bonds, Ser. 2016A reserved for an advance to the city's Old Village Fund, which is being repaid by property tax revenues associated with the ongoing mixed-use development. According to the city officials, the amount is projected to be paid in full by 2017. The city's fiscal 2014 unassigned fund balance of $2.5 million, which is equivalent to 74.7% of revenues, remains healthy and above the city's policy of maintaining unassigned fund balance of 35% of budgeted operating revenues. For fiscal 2015, the city's budget was balanced and management estimates a modest operating surplus of approximately $50,000 due to favorable budget variances. The city adopted a balanced budget for fiscal 2016, conservatively assuming no additional revenue coming from the new developments. Property taxes comprise 72.3% of Lake Elmo's General Fund revenues, and the city's collection rate is high with few appeals. The city does not receive any local government aid from the state; therefore, it is subject to minimal risk associated with budgetary pressures at the state. The state implemented property tax limits for 2014 only, but the cap did not impact Lake Elmo as the city had planned to keep its levy flat. LIQUIDITY In 2014, the city's unrestricted net operating cash position across major operating funds (General Fund and Debt Service Fund) was $3.5 million or a very healthy 86.9% of revenues. Debt and Pensions: Low Debt Burden with No Additional Borrowing Planned The city's direct debt burden is a low 0.9% of full value and has modest long-term pension and OPEB liabilities. The direct debt burden excludes $19.4 million of GO debt that is expected to be repaid by the city's self-supporting water and sewer enterprises. The city's total fixed costs of $4.5 million, including debt service, pension, and OPEB expenditures make up 21% of fiscal 2014 operating revenues. DEBT STRUCTURE All of the district's direct debt is fixed rate and amortizes over the long term. Principal amortization is below average with 67% of all debt retired in ten years. DEBT-RELATED DERIVATIVES The city has no derivative agreements. PENSIONS AND OPEB Lake Elmo has a low employee pension burden, based on unfunded liabilities for its participation in a multi-employer cost sharing plan administered by the state, the General Employees Retirement Fund (GERF) and one single employer pension plan the Lake Elmo Firefighter's Relief Association plan. Moody's three-year average adjusted net pension liability (ANPL) for the city, through fiscal 2014, is $3.7 million, or 0.3% of full value and 0.8 times operating revenues (General Fund and Debt Service Funds). Moody's ANPL reflects certain adjustments we make to improve the comparability of reported pension liabilities. The adjustments are not intended to replace the city's reported liability information, but to improve comparability with other rated entities. We determined the city's share of liability for GERF in proportion to its contributions to the plan. The city's fiscal 2014 total contribution to both plans was $140,000 or 3.4% of operating revenues. The city administers a single-employer defined benefit healthcare plan that provides benefits to retirees until Medicare eligibility and funds these liabilities on a pay-as-you-go basis. The city funds its plan on a pay as you go basis and in fiscal year 2014, the city did not contribute anything to the plan as there were no retiree participants. As of January 1, 2014, the actuarial accrued liability for benefits was $204,437, all of which was unfunded. Management and Governance: Strong Institutional Framework Score Minnesota cities have an institutional framework score of “Aa,” or strong. Revenues are moderately predictable as cities rely primarily on property taxes. Some cities also rely on State Local Government Aid (LGA), which is distributed based on demographic and tax base factors. Revenue-raising flexibility is moderate as cities generally benefit from unlimited levying authority, except during years in which the state has imposed limits. Levy limits are not in place for the 2016-2017 biennium. Expenditures mostly consist of personnel costs, which are highly predictable. Cities typically maintain low fixed costs and have a moderate ability to reduce expenditures. Management has a fund balance policy of maintaining 35% of the following year's budgeted expenditures in reserves. Favorably, the city does not rely on LGA and is less impacted by the state's fiscal condition. MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE 4 11 May 2016 Lake Elmo, MN: New Issue: Moody's Assigns Aa2 to Lake Elmo, MN's $9.9M GOULT Bonds, Ser. 2016A Legal Security The bonds are secured by the city's general obligation unlimited tax (GOULT) pledge to levy a dedicated debt service tax that is not limited by rate or amount. The security benefits from a statutory lien and there is no lock box structure for debt service. Use of Proceeds Proceeds of the bonds will be used to provide street, water, sewer and storm water improvement projects. Obligor Profile Located in Washington County (Aaa stable), the city lies along the eastern edge of the Twin Cities metropolitan region. The 2010 population was 8,069 according to census estimates. Methodology The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology. Ratings Exhibit 3 Lake Elmo (City of) MN Issue Rating General Obligation Bonds, Series 2016A Aa2 Rating Type Underlying LT Sale Amount $9,860,000 Expected Sale Date 05/17/2016 Rating Description General Obligation Source: Moody's Investors Service MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE 5 11 May 2016 Lake Elmo, MN: New Issue: Moody's Assigns Aa2 to Lake Elmo, MN's $9.9M GOULT Bonds, Ser. 2016A © 2016 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. 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REPORT NUMBER 1027038 MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE 6 11 May 2016 Lake Elmo, MN: New Issue: Moody's Assigns Aa2 to Lake Elmo, MN's $9.9M GOULT Bonds, Ser. 2016A Contacts Antonina Peshkova 312-706-9977 Associate Analyst antonina.peshkova@moodys.com Henrietta Chang 312-706-9960 VP-Sr Credit Officer henrietta.chang@moodys.com CLIENT SERVICES Americas 1-212-553-1653 Asia Pacific 852-3551-3077 Japan 81-3-5408-4100 EMEA 44-20-7772-5454 MAYOR AND COUNCIL COMMUNICATION DATE: May 17, 2016 REGULAR ITEM #: 24 MOTION AGENDA ITEM: Lions Park RFP SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: On November 4, 2015, Parks Commission Chair Weis explained the scope of the RFP request for ballpark redesign and presented photos of ball parks in other Minnesota cities. Weis explained that the Parks Commission has placed Lions Park on the Parks Commission CIP and has incurred significant cost for repairs, prompting the need for further planning. Following the presentation and public comments the following motion passed: Councilmember Fliflet, seconded by Councilmember Bloyer, moved TO ISSUE AN RFP FOR ARCHITECTURAL WORK TO REDESIGN THE BALLFIELDS IN THE HISTORIC DOWNTOWN. MOTION PASSED 5 – 0. At the April 18, 2016 Parks Commission meeting, the commissioners approved a proposed layout/redesign that included the removal of the parks storage building for a skating rink. A copy of the proposed layout is included in the packet. ISSUE BEFORE COUNCIL: Should the RFP also include the removal of the parks storage building (south of fire station #1)? PROPOSAL DETAILS/ANALYSIS: Since the proposed impacted area approved at the Parks Commission on April 18, 2016 extends beyond the ballfield area to include the removal of the parks storage building for a hockey rink, staff is bringing the issue back to Council to either amend the proposal to include removal of the storage building or to not include a hockey rink at the storage building site. FISCAL IMPACT: Staff anticipates additional cost to remove the parks storage building. The exact amount will be estimated in the RFP. Furthermore, the city may expect additional costs in determining where the items currently housed in the storage building will be relocated. OPTIONS: 1) Approve issuing an RFP to include removal of the parks storage building 2) Do not approve issuing an RFP with the parks storage building removal 3) Make other changes to parameters of RFP RECOMMENDATION: Per Parks Commission actions: Motion to include the removal of the parks storage building in Lions Park RFP MAYOR AND COUNCIL COMMUNICATION DATE: May 17, 2016 REGULAR ITEM #: 25 MOTION AGENDA ITEM: Library Parking Lot SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: The Library Board has been working on a parking lot design since last fall. They have vetted a couple different designs and settled on the concept B plan that is included in your packet. Brett Emmons and Library Director Nate Deprey met with City staff to discuss the process to move forward on May 10th. ISSUE BEFORE COUNCIL: Would the city cost share on the non-motorized portions of the project – sidewalks, planning for connection along north side of building, etc.? Would the City cost share in the overall project? PROPOSAL DETAILS/ANALYSIS: The library board is pursuing a design of the parking lot that will be a paved parking area along with green infrastructure features that will both improve water quality/quantity and downtown aesthetics/connectivity. They would like to promote & enhance the pedestrian/bike connectivity between Lk Elmo Ave. downtown and areas to the east (Lions Park, future senior housing, future development), as envisioned in the last downtown vision documents. Since the Library Board feels the parking lot really does serve as a broader community resource for parking in the downtown area. So they would also like to request the city share in the cost of the parking lot as part of enhancing the downtown park users and businesses. FISCAL IMPACT: The estimated project costs are not known at this time but may be available at the meeting. OPTIONS: 1) Agree to cost share in the entire project 2) Agree to cost share for non-motorized portions of the project such as the sidewalk and connection along the north of the building. 3) Do not agree to cost share AAAAACCCCCCCCCDDDDDBBBBBBBBBBBtree trench - below groundseatingcrossingcrossingstree trench fi lters and cools runoff and provides irrigation for landscaping KEY LEGEND: pretreatment catch basins protect tree trench and improves maintenanceadditional landscaping for traffi c calming and aestheticswalkway, additional library parking, and bike racks enhance pedestrian connectionsseatingRevised parking lot and entry drive to capture stormwater and create enhance pedestrian environment. A tree trench will capture and store stormwater for infi ltration and reuse by landscaping above.• Approx. 1,700 cf + of treatment volume in tree trench• Pedestrian connection from Lake Elmo Ave. to Lion’s Park• Potential to capture adjacent streets• Benches, lighting, and furnishings improve pedestrian areasCONCEPT BLAKE ELMO LIBRARY - TREE TRENCH AND WALKWAYMARCH 2016 202050.00150.00120.00147.00 288.00100.00 111.772020104.7440.00200.00 .8020202020202020202020202020202020202520202020202020202020202020202020202053.8 699.892 7 .3 8 22.6221.251 7 0 .8 8 1 1 0.00134.0050.0013.90 30200.00 12.5 42.155 70.00271.87262.39125.60 5.5 0 20202042.902020120.00 5 0 .0 0 50 .00 5 2.0 0 5 0 .0 050.0010 0.0 0 1 0 0.005 0 .0 0 1 0 0.0 0 9 9.9 65 0 .0 0 1 49.841 0 0 .0 0 1 0 0.0 050.009 5 .0 090.0045.0065.50 147.00 61.00135.9050.005 0.0083.0083.0065.20104.74261.6040.0040.0020202020202020202020202020202020202020202025147.00 2020202020202020202020202020202020202020120.00 147.00 147 162 .1 4 146.5750.0050.001 00.0060.001 4 9 .5 2 130.8349.0040.0019 3 .0 8 1 40.0092.00272.047 2 .0 0 65.50 150.00 147.00 2020202070.502 8 .0 777.945 2.0 0 52.3752.3762.841 2 2.501 8 9.8 7 146.62122.003 0.0 0 50.0075.0078.550.0075.0078.51 2 3 .7 0 6.00 12560.00130.00 59.20181.00135.9015200.00 90.0016.77 180.00 153.10 46.605311079110113549358234 81 3570 35113510 3504110913479 3537 110943585 3520 3 5 2 4 3590 3 61 0 3 5 4 6 11 08 2 11194 3 5 1 4 35 1511051 1 1 0 7 2 1 10 9 83603 3604 32513517 C reated on 5/1 2/2016 This drawing is the result of the compilation and reproductionof land records as they appear in various Washington Countyoffices. The drawing should be used for reference purposes only. W ashington County is not responsible for anyinaccuracies. MAP FOR REFERENCE ONLYNOT A LEGAL DOCUMENT 0 140 28070 F eet1302921230054 3 53 7 L AK E EL M O AV E N, CITY O F L AKE EL M O Parcel ID: Parcel Address: MAYOR AND COUNCIL COMMUNICATION DATE: 5/17/16 REGULAR ITEM #: 26 MOTION AGENDA ITEM: Discussion: zoning text amendment to the permitted, conditional and interim land uses in the rural zoning districts. SUBMITTED BY: Stephen Wensman, Planning Director REVIEWED BY: Kristina Handt, City Administrator Emily Becker, City Planner BACKGROUND: On December 15, 2015, Staff asked City Council to consider an ordinance amendment as it pertains to secondary dwellings, cemeteries, commercial stables, commercial kennels, golf courses, and agricultural sales in the Rural and Agricultural Zoning Districts. The City Council approved a motion to amend the Lake Elmo City Code with the intent to reverse changes made in October of 2013 as it pertains to these listed land uses in the rural districts. The motion read: “TO APPROVE AN ORDINANCE AMENDMENT, AMENDING ARTICLE IX OF THE ZONING ORDINANCE REMOVING SECONDARY DWELLINGS, CEMETERY, COMMERCIAL KENNEL, COMMERCIAL STABLE, GOLF COURSE AND AGRICULTURAL SALES AS ALLOWABLE USES IN THE RURAL DISTRICTS”. In effect, the motion removed each of the above mentioned land use categories from Article IX, Section 154.401, Table 9-1. The ordinance has not been published as Staff is seeking clarification from the Council as to the intent of the ordinance as it relates to the impact. ISSUE BEFORE COUNCIL: To review the motion made on December 15, 2016, and the potential unintended consequence. If the Council wishes to revise its motion, staff has prepared an alternate motion. PROPOSAL DETAILS/ANALYSIS: On December 15, 2015 the City Council discussed the zoning text amendment related to the above mentioned land uses within the rural zoning districts. The Council’s expressed concern was that these uses were added to the Code in 2013 (Ordinance 08-173) without adequate discussion. OLD CODE PRIOR TO OCTOBER 2013. City Council Meeting May 17, 2016 Regular Agenda Item #26 Prior to the approval of Ordinance 08-173, the RT Zoning District did not exist. The land uses Commercial Kennel and Commercial Stable did not exist by definition. Kennels and Stables did not differentiate between private and commercial. Land Uses Prior to 10/2013 Land Use Permitted/Conditional/Interim Zoning District Secondary Dwellings Permitted Use A-Agriculture Cemeteries Conditional Use PF – Public-Semi Public Golf Courses Conditional Use R-3 Manufactured Home Park District Restricted Recreation (Commercial Recreation) Conditional Use A-Agriculture Agricultural Sales Business Permitted Use RR - Rural Residential A -Agriculture OCTOBER 2013 LAND USE CHANGES. Ordinance 08-173, updated the Zoning Code by eliminating some zoning districts, created the RT-Rural Development Transitional zoning district, created some new land use categories such as Commercial Kennel and Commercial Stable, and assigned land uses to districts as P-permitted, C-conditional, or I- Interim uses. Agricultural Sales Business became an interim use in several districts. RT A RR RS RE Residential District Uses Secondary dwelling - P - - - Cemetery - P P - - Commercial Kennel C C C - - Commercial Stable - C - - - Golf Course - C - - - Restricted Recreation - C - - - Agricultural Sales Business I I I - - City Council Meeting May 17, 2016 Regular Agenda Item #26 After the City Council’s December 15, 2015 motion to amend the zoning in the rural districts, Staff held off preparing the final draft of the amended ordinance and its publication in order to understand the motion approved by Council, its impact, and to inform the Council about what may have been unintended consequences, mainly that Agricultural Sales Businesses will no longer be a land use category in the Rural and Agricultural Zoning Districts. Motion made on December 15, 2015 struck all of the above mentioned land uses from Article IX, Section 154.401, Table 9-1. As a result of the ordinance amendment, existing agricultural sales businesses will be unable to renew their permits when they expire. The affected businesses are: Name IUP Expiration Date Country Sun Farm and Greenhouses July 2, 2023 Krueger Tree Farm January 1, 2023 The attached zoning text amendment strikes secondary dwelling, cemetery, commercial kennel, commercial stable, golf courses and agricultural sales business from Article IX, Section 154.401, Table 9- 1, consistent with the City Council motion made on December 15, 2015. Staff has prepared an alternate ordinance that would strike the above mentioned land uses from the Rural Districts, but keeping “agricultural sales business” as an interim use. FISCAL IMPACT: None OPTIONS: The City Council has the following options: 1) Reaffirm the motion made on December 15, 2017, and make the following motion in support of summary publication: “Move to approve Resolution 2016-46 approving the summary publication of Ordinance 08- 136 striking secondary dwelling, cemetery, commercial kennel, commercial stable, golf courses and agricultural sales business from Article IX, Section 154.401, Table 9-1”. Or, 1) Amend the motion of approval for the zoning text amendment keeping Agricultural Sales Businesses an interim use in the Rural and Agricultural Districts with the following motion: “Move to approve Ordinance 08-136 Amending Article IX of the Zoning Ordinance, striking the land use categories: secondary dwelling, cemetery, commercial kennel, commercial stable and golf course, from Section 154.401, Table 9-1., and leaving agricultural sales business as an interim use” 2) “Move to approve Resolution 2016-46 approving the summary publication of the zoning text amendment as it pertains to secondary dwellings, cemeteries, commercial stables, commercial City Council Meeting May 17, 2016 Regular Agenda Item #26 kennels, and golf courses, in Rural and Agricultural Districts (leaving agricultural sales business as an interim use)”. RECOMMENDATION: Staff recommends the City Council reconsider the motion to amend the City of Lake Elmo as it pertains to secondary dwellings, cemeteries, commercial stables, commercial kennels, golf courses, and agricultural sales in the Rural and Agricultural Zoning Districts with the following actions (Resolutions for summary publications require a 4/5 vote): 1) “Moved to approve Ordinance 08-136 Amending Article IX of the Zoning Ordinance, striking the land use categories: secondary dwelling, cemetery, commercial kennel, commercial stable and golf course, from Section 154.401, Table 9-1., and leaving agricultural sales business as an interim use” 2) “Move to approve Resolution 2016-46 approving the summary publication of the zoning text amendment as it pertains to secondary dwellings, cemeteries, commercial stables, commercial kennels, and golf courses, in Rural and Agricultural Districts (leaving agricultural sales businesses as an interim use)”. If the City Council intended to remove Agricultural Sales Business from Section 154.401, Table 9-1, Staff recommends the following motion (Resolutions for summary publications require a 4/5 vote): 1) “Move to approve Resolution 2016-46 approving the summary publication of Ordinance 08-136 striking secondary dwelling, cemetery, commercial kennel, commercial stable, golf courses and agricultural sales business from Article IX, Section 154.401, Table 9-1”. ATTACHMENTS: • Ordinance 08-136a Amending Article IX of the Zoning Ordinance, striking the land use categories: secondary dwelling, cemetery, commercial kennel, commercial stable and golf course, from Section 154.401, Table 9-1., and leaving agricultural sales business as an interim use • Ordinance 08-136b Amending Article IX of the Zoning Ordinance, striking the land use categories: secondary dwelling, cemetery, commercial kennel, commercial stable, golf course, and agriculture sales business from Section 154.401, Table 9-1. • Resolution 2016-46a approving the summary publication of the zoning text amendment as it pertains to secondary dwellings, cemeteries, commercial stables, commercial kennels, and golf courses, in Rural and Agricultural Districts (leaving agricultural sales businesses as an interim use) • Resolution 2016-46b approving the summary publication of Ordinance 08-136b striking secondary dwelling, cemetery, commercial kennel, commercial stable, golf courses and agricultural sales business from Article IX, Section 154.401, Table 9-1”. CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 08-136a AN ORDINANCE AMENDING SECTION 154.401 OF THE LAKE ELMO CITY CODE TO AMEND PERMITTED, CONDITIONAL AND INTERIM USES IN THE RURAL ZOINING DISTRICTS The City Council of the City of Lake Elmo hereby ordains that Section 154.401, Table 9-1 is hereby amended to read as follows: § 154.401 PERMITTED ,CONDITIONAL AND INTERIM USES. Table 9-1 lists all permitted and conditional uses allowed in the rural districts. “P” indicates a permitted use, “C” a conditional use, and “I” an interim use. Uses not so indicated shall be considered prohibited. Cross-references listed in the table under “Standards” indicate the location within this Ordinance of specific development standards that apply to the limited use. A. Combinations of uses. Principal and accessory uses may be combined on a single parcel. Table 9.1: Permitted, Conditional and Interim Uses, Rural Districts RT A RR RS RE Standard Residential Uses Household Living Single-family detached dwelling P P P P P 154.404, Services Self Service Storage Facility Ia Ia - - - 154.404.G Outdoor Recreation Outdoor Recreation Facility - C - - - 154.306.B Parks and Open Areas P P P P P Agricultural and Related Uses Agricultural Entertainment Business I I I - - 154.306.B,154.914 Agricultural Production P P P - - Agricultural Sales Business I I I - - 154.110 Agricultural Services C C - - - 154.404.J Forestry Operations - P - - - Table 9-1: Permitted Conditional and Interim Uses, Rural Districts RT A RR RS RE Standard Notes to Rural Districts Table 9-1 a. Non-Agricultural Low Impact Use (see 154.404.G) Note: Standards listed in Table 9-1 are listed by Article, Section and Subsection. (Ord. 08-073, passed 3-19-2013) (Ord. 08-107, passed 5-6-2014) Effective Date This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo. Adoption Date This Ordinance No. 08-___ was adopted on this 15 day of December, 2015, by a vote of 3 Ayes and 2 Nays. ________________________________ Mayor Mike Pearson Greenhouses, Non Retail C C C - - Wayside Stand P P P - - 154.454.D Industrial and Extractive Uses Motor Freight and Warehousing Ia - - - - 154.404.G Accessory Uses Bed and Breakfast C C C - - 154.310 Domestic Pets P P P P P Family Day Care P P P P P Home Occupation P P P P P Kennel, Private C C C - - 154.404.I Solar Equipment P P P P P 154.310.C Stable, Private C C C - - Swimming Pools, Hot Tubs, Etc. P P P P P Temporary Sales P P P P P Water-Oriented Accessory Structures P P P P P Other Structures Typically Incidental and Clearly Subordinate to Permitted Uses P P P P P Commercial Wedding Ceremony Venue I I I Open Space Preservation Development OP Development - C C - - 154.650 OP-Alt Development - C C - - 154.700 ATTEST: ________________________________ Julie Johnson City Clerk This Ordinance No. 08-136 was published on the ___ day of ____, 2016. Resolution 2016-46 Page 1 of 2 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2016-46a RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE 08-136 BY TITLE AND SUMMARY WHEREAS, the City Council of the City of Lake Elmo has adopted Ordinance No. 08-136, an ordinance to amend the Permitted, Conditional and Interim Uses in the Rural Districts, Chapter 154, Article VIII, Section 154.401. WHEREAS, the ordinance is lengthy; and WHEREAS, Minnesota Statutes, section 412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo, that the City Clerk shall cause the following summary of Ordinance No. 08-___ to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Lake Elmo has adopted Ordinance No. 08-136, which amends Chapter 154, Article VIII, Section 154.401. The revised ordinance amends Table 9-1, Permitted and Conditional Uses with the following changes: • Strikes striking secondary dwelling, cemetery, commercial kennel, commercial stable, and golf courses from Article IX, Section 154.401, Table 9-1 The full text of Ordinance No. 08-136 is available for inspection at Lake Elmo city hall during regular business hours. BE IT FURTHER RESOLVED by the City Council of the City of Lake Elmo that the City Administrator keep a copy of the ordinance at City Hall for public inspection and that a full copy of the ordinance be placed in a public location within the City. Dated: May 17, 2016 ___________________________________ Mayor Mike Pearson ATTEST: Resolution 2016-46 Page 2 of 2 ____________________________________ Julie Johnson, City Clerk (SEAL) The motion for the adoption of the foregoing resolution was duly seconded by member _____________________ and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: Whereupon said resolution was declared duly passed and adopted. CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 08-136b AN ORDINANCE AMENDING SECTION 154.401 OF THE LAKE ELMO CITY CODE TO AMEND PERMITTED, CONDITIONAL AND INTERIM USES IN THE RURAL ZOINING DISTRICTS The City Council of the City of Lake Elmo hereby ordains that Section 154.401, Table 9-1 is hereby amended to read as follows: § 154.401 PERMITTED ,CONDITIONAL AND INTERIM USES. Table 9-1 lists all permitted and conditional uses allowed in the rural districts. “P” indicates a permitted use, “C” a conditional use, and “I” an interim use. Uses not so indicated shall be considered prohibited. Cross-references listed in the table under “Standards” indicate the location within this Ordinance of specific development standards that apply to the limited use. A. Combinations of uses. Principal and accessory uses may be combined on a single parcel. Table 9.1: Permitted, Conditional and Interim Uses, Rural Districts RT A RR RS RE Standard Residential Uses Household Living Single-family detached dwelling P P P P P 154.404, Services Self Service Storage Facility Ia Ia - - - 154.404.G Outdoor Recreation Outdoor Recreation Facility - C - - - 154.306.B Parks and Open Areas P P P P P Agricultural and Related Uses Agricultural Entertainment Business I I I - - 154.306.B,154.914 Agricultural Production P P P - - Agricultural Services C C - - - 154.404.J Forestry Operations - P - - - Table 9-1: Permitted Conditional and Interim Uses, Rural Districts RT A RR RS RE Standard Notes to Rural Districts Table 9-1 a. Non-Agricultural Low Impact Use (see 154.404.G) Note: Standards listed in Table 9-1 are listed by Article, Section and Subsection. (Ord. 08-073, passed 3-19-2013) (Ord. 08-107, passed 5-6-2014) Effective Date This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo. Adoption Date This Ordinance No. 08-136 was adopted on this 15 day of December, 2015, by a vote of 3 Ayes and 2 Nays. ________________________________ Mayor Mike Pearson Greenhouses, Non Retail C C C - - Wayside Stand P P P - - 154.454.D Industrial and Extractive Uses Motor Freight and Warehousing Ia - - - - 154.404.G Accessory Uses Bed and Breakfast C C C - - 154.310 Domestic Pets P P P P P Family Day Care P P P P P Home Occupation P P P P P Kennel, Private C C C - - 154.404.I Solar Equipment P P P P P 154.310.C Stable, Private C C C - - Swimming Pools, Hot Tubs, Etc. P P P P P Temporary Sales P P P P P Water-Oriented Accessory Structures P P P P P Other Structures Typically Incidental and Clearly Subordinate to Permitted Uses P P P P P Commercial Wedding Ceremony Venue I I I Open Space Preservation Development OP Development - C C - - 154.650 OP-Alt Development - C C - - 154.700 ATTEST: ________________________________ Julie Johnson City Clerk This Ordinance No. 08-136 was published on the ___ day of ____, 2016. Resolution 2016-46 Page 1 of 2 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2016-46b RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE 08-136 BY TITLE AND SUMMARY WHEREAS, the City Council of the City of Lake Elmo has adopted Ordinance No. 08-136, an ordinance to amend the Permitted, Conditional and Interim Uses in the Rural Districts, Chapter 154, Article VIII, Section 154.401. WHEREAS, the ordinance is lengthy; and WHEREAS, Minnesota Statutes, section 412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo, that the City Clerk shall cause the following summary of Ordinance No. 08-136 to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Lake Elmo has adopted Ordinance No. 08-136, which amends Chapter 154, Article VIII, Section 154.401. The revised ordinance amends Table 9-1, Permitted and Conditional Uses with the following changes: • Strikes striking secondary dwelling, cemetery, commercial kennel, commercial stable, golf courses and agriculture sales business from Article IX, Section 154.401, Table 9-1 The full text of Ordinance No. 08-136 is available for inspection at Lake Elmo city hall during regular business hours. BE IT FURTHER RESOLVED by the City Council of the City of Lake Elmo that the City Administrator keep a copy of the ordinance at City Hall for public inspection and that a full copy of the ordinance be placed in a public location within the City. Dated: May 17, 2016 ___________________________________ Mayor Mike Pearson ATTEST: Resolution 2016-46 Page 2 of 2 ____________________________________ Julie Johnson, City Clerk (SEAL) The motion for the adoption of the foregoing resolution was duly seconded by member _____________________ and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: Whereupon said resolution was declared duly passed and adopted. MAYOR AND COUNCIL COMMUNICATION DATE: May 17, 2016 REGULAR ITEM #: 27 MOTION AGENDA ITEM: Shared Services and Fire Dept Staffing SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: In response to the recent reports about delayed fire response and limited staffing available for calls at certain times, Council members Fliflet and Lundgren are requesting staff look into some shared services with other departments and/or staffing changes within Lake Elmo Fire (such as the expansion of duty crews). As we have done with other issues, staff is bringing this to the Council for direction before embarking on this task. ISSUE BEFORE COUNCIL: Should staff research and prepare info for presentation to the Council and/or Public Safety Committee regarding shared, automatic or direct service agreements and department staffing options? PROPOSAL DETAILS/ANALYSIS: Staff is being asked to look into options to address staffing shortages in the Fire Department. This could include reviewing the shared services study from 2011, exploring direct aid agreements with other communities, or automatic aid once the County Tiburon system is finally implemented. In addition, the City could explore different staffing structures such as expanded duty crews, hiring part time firefighters to be at the station as other communities do, or reviewing recruitment efforts. This is not an exhaustive list and staff is not prepared to talk about the details at this time but given Council direction we will research more fully the options. The results of staff research could be shared with the Council and/or the Public Safety Committee at a future work session or joint meeting. OPTIONS: 1) Direct staff to research shared services or other agreements and staffing options for the Fire Department and report back to the Council 2) Direct staff to research shared services or other agreements and staffing options for the Fire Department and report back to a joint meeting of the Public Safety Committee and Council 3) Do not direct staff to research these issues RECOMMENDATION: Per Council members Fliflet and Lundgren, Motion to direct staff to research shared services or other agreements and staffing options for the Fire Department