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HomeMy WebLinkAboutAgenda Packets - 2018/12/10CITY OF MOUNDS VIEW CITY COUNCIL MEETING AGENDA MOUNDS VIEW CITY HALL Monday, December 10, 2018 6:30 p.m. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL: Mueller, Gunn, Hull, Meehlhause, Bergeron 4. APPROVAL OF AGENDA 5. CONSENT AGENDA A. Approval of Minutes: a. November 26, 2018 Council b. December 3, 2018 Truth in Taxation B. Just and Correct Claims C. Resolution 9040, Approving a Therapeutic Massage license renewal for Eric Rautio, Eric Roy Massage, 8373 Groveland Court 6. PUBLIC COMMENT Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 7. SPECIAL ORDER OF BUSINESS A. Resolution 9046, Appreciation of Angelica Klebsch’s years of service on the Mounds View Planning Commission 8. COUNCIL BUSINESS A. 6:30 p.m. Public Hearing - 2019 Tax Levy and Budgets for All Funds 1. Resolution 9047 Adopting the 2019 Tax Levy 2. Resolution 9049 Approving the 2019 EDA Tax Levy 3. Resolution 9048 Adopting 2019 Municipal Budget B. 6:30 p.m. Public Hearing, Consider a Transfer of City Business Licenses from Mermaid, Inc. (Michael J. Anderson) to Shift Entertainment, LLC dba The Mermaid, 2200 Mounds View Boulevard. 1. Consideration of Resolution 9044 to Transfer On-Sale Intoxicating Liquor License 2. Consideration of Resolution 9043 to Transfer Restaurant and Bowling Licenses (no public hearing required) C. Resolution 9039, Approving the 2019 City Council Meeting, Council/Staff Retreats, and the Town Hall Meeting Dates D. Resolution 9041, Approving Various Appointments to the City of Mounds View’s Boards, Commissions and Committees E. Resolution 9055 Promotion of Brian Beeman to Assistant City Administrator F. Second Reading, Ordinance 952, Approving and ordering summary publication. Roll Call Vote G. Second Reading, Ordinance 953, Approving and ordering summary publication. Roll Call Vote H. Resolution 9053 Approving Loan Documents, Master Subordination Agreement, and Master Disbursement Agreements Relating to the Local Housing Incentives Account Program (LHIA) Loan and the Boulevard Apartment Project I. Resolution 9051, Approving Repairs to Garage Door at the Public Works Building J. Resolution 9052, Approving the Proposal from Buetow 2 Architects for the City Hall Remodel Project K. Resolution 9050, Approving a Market Adjustment for 2019 9. REPORTS A. Reports of Mayor and Council 1. Discuss the need for a 2nd meeting in December B. Reports of Staff C. Reports of City Attorney 10. Next Council Work Session: Monday, January 7, 2019 at 6:30 p.m. Next Council Meeting: Wednesday, December 26, 2018 at 6:30 p.m. if needed (if needed) 11. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 November 26, 2018 6 Mounds View City Hall 7 2401 County Road 10, Mounds View, MN 55112 8 6:30 P.M. 9 10 11 1. MEETING IS CALLED TO ORDER 12 13 2. PLEDGE OF ALLEGIANCE 14 15 3. ROLL CALL: Bergeron, Gunn, Hull, Meehlhause, Mueller 16 17 NOT PRESENT: None. 18 19 4. APPROVAL OF AGENDA 20 A. Monday, November 26, 2018, City Council Agenda. 21 22 MOTION/SECOND: Gunn/Meehlhause. To Approve the Monday, November 26, 2018, agenda 23 as amended adding Item 8C. 24 25 Ayes – 5 Nays – 0 Motion carried. 26 27 5. CONSENT AGENDA 28 29 Mayor Mueller asked to remove Item D. 30 31 A. Approval of Minutes: November 12, 2018. 32 B. Just and Correct Claims. 33 C. Resolution 9029, Approving the Recording Secretary Service Agreement 34 Amendment with TimeSaver Off-Site Secretarial Inc. 35 D. Resolution 9038, Approving a Cost of Living Adjustment, Insurance 36 Contribution, and Insurance Opt-Out Payment Amounts for 2019. 37 38 Mayor Mueller noted a correction to the minutes on Page 4, Line 3 stating the name Tierney 39 should be added to the matter regarding the remodeling of Edgewood Middle School. 40 41 MOTION/SECOND: Mueller/Meehlhause. To Approve the Consent Agenda as amended 42 removing Item 5D. 43 44 Ayes – 5 Nays – 0 Motion carried. 45 Mounds View City Council November 26, 2018 Regular Meeting Page 2 1 D. Resolution 9038, Approving a Cost of Living Adjustment, Insurance 2 Contribution, and Insurance Opt-Out Payment Amounts for 2019. 3 4 Mayor Mueller encouraged the Council to support this Resolution. She noted health insurance 5 premiums would increase between 5% and 7% in 2019. She commented further on how this 6 would impact the City’s levy. 7 8 MOTION/SECOND: Mueller/Gunn. To Waive the Reading and Adopt Resolution 9038, 9 Approving a Cost of Living Adjustment, Insurance Contribution, and Insurance Opt-Out 10 Payment Amounts for 2019. 11 12 Ayes – 5 Nays – 0 Motion carried. 13 14 6. PUBLIC COMMENT 15 16 None. 17 18 7. SPECIAL ORDER OF BUSINESS 19 20 None. 21 22 8. COUNCIL BUSINESS 23 A. Resolution 9042, Implementation a Non-Union Pay Grid Effective December 24 31, 2018. 25 26 Finance Director Beer requested the Council adopt a Resolution implementing a non-union pay 27 grid which would be effective December 31, 2018. He explained every three years the City was 28 subject to pay equity compliance. He discussed how pay points were evaluated for open 29 positions in order for the City to remain in compliance. He described the pay adjustments that 30 were being recommended for pay equity purposes. 31 32 City Administrator Zikmund reported the Human Resources Committee had reviewed the non-33 union pay grid and offered their support. He explained this was a very complicated subject and he 34 thanked staff for all of their efforts on this matter. 35 36 Mayor Mueller commented on the non-union pay grid and requested staff read the requirement in 37 full for the record. Finance Director Beer read the Minnesota State Law requirement in full for 38 the record. 39 40 Council Member Gunn asked if the effective date should be January 1, 2019. Finance Director 41 Beer reported the effective date must be December 31, 2018 according to the pay equity 42 standards. 43 44 MOTION/SECOND: Meehlhause/Bergeron. To Waive the Reading and Adopt Resolution 45 Mounds View City Council November 26, 2018 Regular Meeting Page 3 9042, Implementation a Non-Union Pay Grid Effective December 31, 2018. 1 2 Ayes – 5 Nays – 0 Motion carried. 3 4 B. Resolution 9035, Approving the 2019 City of Mounds View Fee Schedule. 5 6 City Administrator Zikmund requested the Council approve the 2019 City of Mounds View fee 7 schedule. He reviewed the fee schedule with the Council noting the changes and recommended 8 approval. 9 10 Mayor Mueller suggested an amendment to the non-profit policy recommending additional 11 language be added to state a non-profit with real property in the City shall receive a reduced rate. 12 Finance Director Beer suggested the City Administrator be allowed to have some discretion in 13 this area. 14 15 City Administrator Zikmund suggested this portion of the Fee Schedule be amended to read: 16 Those non-profits that provide a measureable benefit to the City of Mounds View, and have real 17 physical property in the City. 18 19 Council Member Meehlhause stated there were five non-profits in the community that aren’t 20 necessarily located within the boundaries of the City but provide measureable benefit to Mounds 21 View residents. He explained the Quincy House, Ralph Reeder Food Shelf, Community Support 22 Center, Community Partners for Youth, and Northeast Youth and Family Services all provide 23 measureable benefits to Mounds View residents. 24 25 Council Member Bergeron asked if the City knows how many non-profit groups have looked to 26 rent in the City. Finance Director Beer reported there was one organization. 27 28 Council Member Meehlhause recommended the Community Center staff be made aware of this 29 provision. 30 31 Council Member Gunn requested notational be changed to National. 32 33 MOTION/SECOND: Meehlhause/Gunn. To Waive the Reading and Adopt Resolution 9035, 34 Approving the 2019 City of Mounds View Fee Schedule. 35 36 Council Member Bergeron reported the City would now welcome all residents to use City parks 37 free of charge for National Night Out. 38 39 Ayes – 5 Nays – 0 Motion carried. 40 41 C. Resolution 9045, Recommending a Party to Fill Vacancy on Charter 42 Commission. 43 44 City Administrator Zikmund requested the Council recommend a party to fill the vacancy on the 45 Mounds View City Council November 26, 2018 Regular Meeting Page 4 Charter Commission. He explained on September 10th the Council passed a Resolution on who 1 to appoint to the Charter Commission. He noted four names were submitted and one of the 2 individuals did not fill out an application, which meant there was a vacancy. He reported last 3 Tuesday at the Charter Commission meeting the group considered two applications. He stated a 4 third application has since been received by City staff. He provided further comment on his 5 discussions with the Court and noted the judge was considering the two applications. It was 6 staff’s recommendation that a third application be forwarded to the Court for consideration. He 7 requested the Council make a recommendation on the Charter Commission vacancy. 8 9 Mayor Mueller requested comment from the Council on how to proceed with the Charter 10 Commission vacancy. 11 12 Council Member Gunn stated she supported the appointment of Candidate B to the Charter 13 Commission. 14 15 MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt Resolution 9045, 16 Recommending Candidate B to Fill Vacancy on Charter Commission. 17 18 Council Member Gunn stated she believed Candidate B has been involved with the City and has 19 shown great interest in the community. 20 21 Council Member Meehlhause agreed. 22 23 Mayor Mueller stated she was originally going to recommend Candidate A due to his strong ties 24 to the community, but noted she could support Candidate B. She suggested Candidate A be 25 contacted to see if there was interest in serving on the Planning Commission. 26 27 Council Member Hull reported he supported Candidate A. There was further discussion 28 regarding Candidate A and Council Member Hull stated he had the name confused with another 29 individual. This led Council Member Hull to support Candidate B. 30 31 Council Member Meehlhause reported this was simply a recommendation to the judge regarding 32 the City’s appointment. City Administrator Zikmund noted this was correct. 33 34 Council Member Bergeron stated he would be recusing himself from the vote because he did not 35 know the candidates and did not feel qualified to make a selection. 36 37 Ayes – 4 Nays – 0 Abstain – 1 (Bergeron) Motion carried. 38 39 9. REPORTS 40 A. Reports of Mayor and Council. 41 42 Council Member Bergeron commented on a neighborhood meeting he attended last week 43 regarding Long Lake Woods. He stated he has heard from some of the neighbors with additional 44 questions. He clarified at this point the details were quite vague which was typical. He 45 Mounds View City Council November 26, 2018 Regular Meeting Page 5 understood there were concerns with the water table on this property and suggested a 1 representative be present from the watershed district be present at the next neighborhood 2 meeting. He noted this project was early in its concept phase. City Administrator Zikmund 3 reported this was not a City initiative, but rather was being driven by the developer. He 4 explained the developer was pursuing a wetland delineation and the ball was in his court. 5 6 Council Member Gunn encouraged the developer to talk to the parcel owners to see if they were 7 willing to sell their property. She explained this would not be led by the City. 8 9 Council Member Meehlhause stated he attended the neighborhood meeting as well and thanked 10 Council Member Bergeron for his report. 11 12 Council Member Meehlhause explained he attended a Twin Cities Gateway Board meeting last 13 week at Mickman Brothers. He commented on their Christmas wreath operation. He requested 14 Al Stauffacher and Steve Markuson be invited to attend a Council worksession meeting in 2019. 15 He discussed how the group was working to spend down its reserves and would be prepaying on 16 its agreements for the coming year. He updated the Council on the hospitality tax that had come 17 in for 2018 noting Mounds View was up 15%. He thanked the Mounds View Festival Treasurer 18 for providing the Gateway Board with a letter discussing how funds were spent on this year’s 19 event. 20 21 Council Member Meehlhause reported he would be attending a LMC/Metro Cities Regional 22 meeting on Thursday, November 29th and stated the YMCA Advisory Committee would be 23 meeting on Monday, December 3rd at 11:00 a.m. 24 25 Council Member Meehlhause encouraged residents to visit Edgewood Middle School on Sunday, 26 December 2nd for the Lions Annual Waffle Breakfast with Santa from 9:00 a.m. to 1:00 p.m. 27 28 Council Member Gunn commented on the free lazy eye screening that would be provided by the 29 Lions at the Waffle Breakfast. 30 31 Mayor Mueller stated she was looking forward to attending the LMC/Metro Cities Regional 32 meetings on Thursday, November 29th. 33 34 Mayor Mueller reported the Festival in the Park Committee was seeking additional volunteers. It 35 was noted Festival in the Park would be held at Silver View Park on Saturday, August 17, 2019. 36 She commented further on the events that were being planned for the coming year. She indicated 37 the Festival in the Park Committee would be meeting next on Tuesday, January 15th at 7:00 p.m. 38 at the Community Center. 39 40 Mayor Mueller indicated the Mounds View Police Foundation was seeking additional volunteers. 41 42 Mayor Mueller thanked all of the Mounds View residents who share their holiday cheer by 43 putting up light displays this time of year. 44 45 Mounds View City Council November 26, 2018 Regular Meeting Page 6 Council Member Gunn proposed the City consider holding a tree lighting ceremony at the Public 1 Works building. She understood this would require the City to buy lights but believed this would 2 be a great event for the community. She suggested the event having hot cocoa, a bonfire and 3 carolers. 4 5 Mayor Mueller suggested a committee be formed to discuss the potential of a tree lighting event. 6 7 Council Member Gunn reported the Mounds View Police Foundation could use additional 8 donations for Shop with a Cop. She reported Shop with a Cop would be held on Monday, 9 December 17th. 10 11 Council Member Gunn explained tickets were now on sale for the Daddy Daughter Dance for 12 2019. 13 14 Mayor Mueller reported the Ralph Reeder Food Shelf had matching grants available for cash 15 donations made now through the Friday, December 14th. 16 17 B. Reports of Staff. 18 19 Finance Director Beer reported the Truth In Taxation meeting would be held on Monday, 20 December 3rd at 6:00 p.m. 21 22 C. Reports of City Attorney. 23 24 City Attorney Riggs had nothing additional to report. 25 26 10. Truth-In-Taxation Meeting: Monday, December 3, 2018, at 6:00 p.m. 27 Next Council Work Session: Monday, December 3, 2018, at 6:30 p.m. 28 Next EDA Meeting: Monday, December 10, 2018, at 6:00 p.m. 29 Next Council Meeting: Monday, December 10, 2018, at 6:30 p.m. 30 31 11. ADJOURNMENT 32 33 The meeting was adjourned at 7:46 p.m. 34 35 Transcribed by: 36 37 Heidi Guenther 38 TimeSaver Off Site Secretarial, Inc. 39 PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Truth In Taxation Meeting 5 December 3, 2018 6 Mounds View City Hall 7 2401 County Road 10, Mounds View, MN 55112 8 6:00 P.M. 9 10 11 1. MEETING IS CALLED TO ORDER 12 13 2. PLEDGE OF ALLEGIANCE 14 15 3. ROLL CALL: Bergeron, Gunn, Hull, Meehlhause and Mueller. 16 17 NOT PRESENT: None. 18 19 4. APPROVAL OF AGENDA 20 A. Monday, December 3, 2018, City Council Agenda. 21 22 MOTION/SECOND: Gunn/Meehlhause. To Approve the Monday, December 3, 2018, agenda as 23 presented. 24 25 Ayes – 5 Nays – 0 Motion carried. 26 27 5. COUNCIL BUSINESS 28 A. Truth in Taxation. 29 30 Finance Director Beer indicated this Special meeting fulfilled the City’s need to hold a Truth in 31 Taxation Hearing. He reviewed the proposed 2019 budget in detail indicating it was the City’s 32 mission to provide high quality public services at a fiscally responsible rate. General fund 33 expenditures by purpose were reviewed along with expenditures by function. He explained this 34 meeting would provide the public a chance to voice concerns and noted the final budget would 35 be approved at the December 10th Council Meeting. He commented on the general fund 36 operating expenditures by function. The proposed revenues for 2019 were reviewed and he 37 indicated the proposed property tax levy would be 9.12%. He reviewed how the City’s median 38 value homeowner would be impacted by the proposed levy. The tax levy per capita was 39 discussed and staff recommended the Council take comments from the public. 40 41 Mayor Mueller commented on the increased health care costs the City would incur in the coming 42 year and asked if this was written into the 2019 budget. Finance Director Beer reported this 43 increase had been included in the City’s expenditures. He commented further on the City’s 44 worker’s comp increase. He described how the City’s experience mod would decrease over time. 45 Mounds View City Council December 3, 2018 Truth in Taxation Meeting Page 2 1 Mayor Mueller indicated the EDA/HRA levy assists the City with addressing community 2 development since the City’s three TIF districts had retired. She asked if the City would 3 continue to seal coat its streets whether or not the EDA/HRA levy was approved. Finance 4 Director Beer reported this was the case, noting sealcoating was budgeted separately in the City’s 5 long-term maintenance fund. 6 7 Mayor Mueller stated she believed the only wiggle room the budget had at this time was with the 8 EDA/HRA levy. Finance Director Beer explained if the Council were to do away with this levy, 9 the Council would have to change the City’s strategic plan. 10 11 Council Member Meehlhause questioned what the tax levy increase was for 2018. Finance 12 Director Beer stated the levy in 2018 was 8.87%. 13 14 Mayor Mueller questioned what percentage the EDA/HRA levy was of the total levy. Finance 15 Director Beer reported this made up approximately 2%. 16 17 Council Member Hull stated he did not see any EDA activity in the next five years. 18 19 Council Member Meehlhause commented the EDA levy helps with the loan programs being 20 provided to residents. 21 22 Mayor Mueller questioned how a 2% reduction in the levy would impact the median value 23 homeowner. Finance Director Beer estimated this would reduce the expense to homeowners by 24 approximately $4 to $5. 25 26 Council Member Hull stated the City had several significant expenditures increases in 2019 and 27 did not believe there would be any EDA activity for the next five years. City Administrator 28 Zikmund reviewed the Council’s strategic plan and noted the properties the City had in mind for 29 redevelopment in the near future. 30 31 Council Member Meehlhause asked if any of the EDA/HRA levy was used to support Brian 32 Beeman. Finance Director Beer reported a portion of the levy was used to pay Business 33 Development Coordinator Beeman. 34 35 Mayor Mueller opened the Truth in Taxation meeting for public comment at 6:34 p.m. 36 37 Brian Amundsen, 3048 Woodale Drive, stated he has spoken to the Council twice during the 38 budgeting process. He expressed concern with the proposed levy increase. He commented on 39 the Council’s Statement of Values and encouraged the Council to follow the spirit of the law. He 40 discussed the limits that were set on expanding fees within the City’s Charter and levy cap. He 41 questioned why the EDA had not submitted a budget to the City Council. Finance Director Beer 42 reported a budget was submitted to the Council in August of 2018. 43 44 Mayor Mueller closed the Truth in Taxation meeting at 6:41 p.m. 45 Mounds View City Council December 3, 2018 Truth in Taxation Meeting Page 3 1 6. Next Council Work Session: Monday, December 3, 2018, at 6:30 p.m. 2 Next Council Meeting: Monday, December 10, 2018, at 6:30 p.m. 3 4 7. ADJOURNMENT 5 6 The meeting was adjourned at 6:42 p.m. 7 8 Transcribed by: 9 10 Heidi Guenther 11 TimeSaver Off Site Secretarial, Inc. 12 Item No: 05C Meeting Date: December 10, 2018 Type of Business: CA Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Resolution 9040, Renewal of Therapeutic Massage License for Eric Rautio, Eric Roy Massage, 8373 Groveland Court Mounds View City Code requires that massage therapists be licensed in the City of Mounds View and that the license be renewed annually. Eric Rautio, owner of Eric Roy Massage, 8373 Groveland Court, has had an enterprise therapeutic massage license for Eric Roy Massage and an individual massage therapy license for himself with the City of Mounds View since 2017. Mr. Rautio has no other massage therapists on staff. Massage therapy licenses run from January 1 to December 31 of each year. Mr. Rautio is applying to renew his license for 2019. Mr. Rautio’s criminal background check that was conducted by the Mounds View Police Department was satisfactory and his property taxes and Mounds View water/sewer bill are current. Staff is recommending that the Council approve a license renewal for that a Therapeutic Massage Enterprise License and an Individual Therapeutic Massage License for Eric Rautio, Eric Roy Massage, 8373 Groveland Court. Respectfully Submitted, ________________________ Nyle Zikmund RESOLUTION NO. 9040 CITY OF MOUNDS VIEW COUNTY OR RAMSEY STATE OF MINNESOTA APPROVING A THERAPEUTIC MASSAGE LICENSE RENEWAL FOR ERIC RAUTIO, 8373 GROVELAND COURT WHEREAS, Mounds View City Code requires that massage therapists be licensed in the City of Mounds View and that the license be renewed annually; and WHEREAS, in 2017, Eric Rautio, owner of Eric Roy Massage, 8373 Groveland Court, was issued an enterprise therapeutic massage license for Eric Roy Massage and an individual massage therapy license for himself by the City Council; and WHEREAS, Eric Rautio is applying to renew those licenses; and WHEREAS, Eric Rautio has a satisfactory criminal background check report by the Mounds View Police Department; and WHEREAS, Eric Ratio is current with his property taxes and Mounds View water/sewer bill. NOW, THEREFORE BE IT RESOLVED, that a Therapeutic Massage Enterprise License and an Individual Therapeutic Massage License be renewed for Eric Rautio, Eric Roy Massage, 8373 Groveland Court. BE IT FURTHER BE RESOLVED that these licenses will expire on December 31, 2019. Adopted this 10th day of December, 2018. ______________________________ Carol A. Mueller, Mayor ATTEST: ___________________________________ Nyle Zikmund, City Administrator (SEAL) Item No: 07A Meeting Date: December 10, 2018 Type of Business: Special Order of Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Jon Sevald, Community Development Director Item Title/Subject: Resolution 9046, Appreciation of Angelica Klebsch’s years of service on the Mounds View Planning Commission Background Angelica Klebsch, who has served on the Mounds View Planning Commission since 2016, is stepping down when her term ends on December 31, 2018, due to other commitments. Recommendation The City Council is requested to approve Resolution 9046, a Resolution of Appreciation of Angelica’s selfless years of service to the community. Respectfully, Jon Sevald, AICP Community Development Director RESOLUTION 9046 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION OF APPRECIATION TO ANGELICA KLEBSCH FOR HER SERVICE ON THE MOUNDS VIEW PLANNING AND ZONING COMMISSION WHEREAS, Angelica Klebsch was appointed by the City Council to serve on the Mounds View Planning and Zoning Commission, beginning January 1, 2016 and expiring December 31, 2018 (Resolution 8492); and, WHEREAS, Commissioner Klebsch has served the City as a model citizen, volunteering her time and providing invaluable advice and opinions to the Commission and Staff throughout her three years of service on the Commission, including as Chairman in 2018; and, NOW, THEREFORE, BE IT RESOVELD, that the City Council of the City of Mounds View, on behalf of its residents, expresses its appreciation to Angelica Klebsch for her dedication and devoted service on the Planning and Zoning Commission. Adopted this 10th day of December, 2018. Mayor Carol A. Mueller ______________________________ ______________________________ Councilmember Sherry Gunn Councilmember Al Hull ______________________________ ______________________________ Councilmember Bill Bergeron Councilmember Gary Meehlhause ATTEST: ______________________________ Nyle Zikmund, City Administrator (seal) Item No: 8.A.1. Meeting Date: December 10, 2018 Type of Business: Council Business Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 9047 Adopting the 2019 Property Tax Levy Attached is Resolution 9047 adopting the 2019 property tax levy. The Truth-in-taxation meeting was held on December 3, 2018 and the public was provided an opportunity to comment. The City Council has proposed a final levy increase of 4.4% for the General Fund and the police officer referendums increased by 0.30%. A Street Improvement levy of $150,000 has been reestablished and debt service requires a levy increase of 1.40%. The overall increase is 9.12% for all levies. The City Council may adopt the tax levy on December 10th or schedule an additional meeting if necessary to adopt it no later than December 28, 2018. Staff recommends that the City Council adopt resolution 9047 adopting the 2019 property tax levy. Respectfully submitted, ________________________ Mark Beer RESOLUTION NO. 9047 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA Adopting the 2019 Property Tax Levy WHEREAS, the City Council has conducted numerous meetings and has made available detailed copies of the proposed 2019 Budget; and WHEREAS, the City Council provided the public an opportunity to speak at the Truth in Taxation meeting on December 3, 2018 and at the several budget meeting to take comment on the proposed 2019 tax levy; and WHEREAS, the Fire Improvement Bonds and Notes will require debt service of $165,800 due to changes in the allocation of costs between participating cities. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View that the following property tax levy for 2019 is hereby approved: General Fund base levy $ 4,244,285 Fire bonds and notes 165,800 PERA rate increase levy 39,145 Police Referendum market value levy 2017 100,000 Police Referendum market value levy 2004 210,000 Total General Fund property tax levy $ 4,759,230 Street Improvement Capital Projects Fund levy $ 150,000 2017 Capital Improvement Bonds Debt Service levy $ 418,446 Total Property Tax Levy $ 5,327,676 and the City Administrator is hereby directed to notify Ramsey County and the State of Minnesota of said 2019 property tax levy. Said resolution was declared to have been duly passed and adopted this 10th day of December, 2018. __________________________ Carol A. Mueller, Mayor ATTEST: __________________________ Nyle Zikmund, City Administrator (SEAL) 486850v2 AMB MU205-13 Item No: 8.A.2. Meeting Date: December 10, 2018 Type of Business: Council Business City Administrator Review: ______ City of Mounds View Staff Report To: City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 9049 Approving the EDA Property Tax Levy Request for Fiscal Year 2019 Previously the City’s economic development activities were funded with tax increment revenues. These tax increment revenues were discontinued as required by state statute. This left the City with limited resources to continue existing business outreach, marketing, advertising, small scale incentives, property acquisitions, professional services, and staff training and development. The City Council as part of the 3 year Strategic Plan indicated that maintaining this levy is a priority. The EDA established levies in 2017 to help accomplish some of the above goals. There is no proposed increase in the total levied for 2019. The EDA adopted a request to the City to levy $100,000 on behalf of the EDA at the August 27, 2018 meeting and the City Council approved that request at the September 10, 2018 meeting and there is no change in that request since preliminary adoption. Respectfully submitted, ___________________________ Mark Beer, Finance Director 486850v2 AMB MU205-13 RESOLUTION NO. 9049 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING THE ECONOMIC DEVELOPMENT AUTHORITY PROPERTY TAX LEVY REQUEST FOR FISCAL YEAR 2019 WHEREAS, the Mounds View Economic Development Authority (the "EDA") has requested that the City of Mounds View levy a tax for the benefit of the EDA pursuant to Minnesota Statutes 469.107, Subdivision 1; and WHEREAS, the City Council of the City of Mounds View approved resolution 9011 approving a preliminary levy of $100,000 on behalf of the EDA on September 10, 2018. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Mounds View hereby gives final approval for the collection of a levy for the benefit of the economic development activities within the community in fiscal year 2019 in the amount not to exceed $100,000, which amount shall be included in the City’s levy. Adopted this 10th Day of December 2018. ______________________________ Carol A. Mueller, Mayor (ATTEST) ______________________________ Nyle Zikmund, City Administrator (SEAL) Item No.: 8.A.3. Meeting Date: December 10, 2018 Type of Business: Council Business Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title: Resolution 9048 Adopting the 2019 Budgets for All Funds Attached is Resolution 9048 and summaries of the 2019 General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, and Enterprise Funds budgets. Respectfully submitted, ______________________ Mark Beer RESOLUTION NO. 9048 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA ADOPTING THE 2019 BUDGETS FOR ALL FUNDS WHEREAS, the City Council conducted numerous meetings and made available detailed budgets at City Hall and on the City’s website for the 2019 budgets for all funds; and WHEREAS, the City Council has considered said budgets. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View that the following appropriations for the calendar year 2019 are hereby approved: GENERAL FUND: Amount City Council $ 60,752 Advisory Commissions 19,500 City Administrator 309,655 Elections 26,832 Finance 274,169 Central Services 280,773 Community Development 477,189 Police 3,148,099 Fire 518,262 Public Works Administration 156,637 Streets 449,904 Fleet management 122,604 Building maintenance 137,834 Recreation 122,042 Parks & Athletic Fields 358,750 Forestry 49,188 Convention & Visitors 61,750 Social services 26,329 Contingency 0 Fitness Program 6,500 Transfer to EDA Fund 50,000 Transfer to Special Projects Fund 75,000 Transfer to Vehicle Fund 286,000 Transfer to Community Center 190,000 Debt Service, Energy Savings 24,495 Debt Service, Fire Department 166,116 Total General Fund $7,398,380 Resolution 9048 Page 2 FUND: Amount Cable TV $ 248,722 Forfeiture 3,200 Economic Development 297,787 Community Center 483,079 Lakeside Park 23,710 Recycling grant 31,545 TIF District #5 1,697,387 GO CIP Bonds 2017A 393,370 Park Dedication Fund 83,500 Vehicle & equipment 423,000 Special Projects Fund 562,698 Street Improvement Fund 1,118,000 Water 1,722,086 Wastewater 2,066,633 Street Lighting 100,063 Surface Water 527,077 TOTAL ALL FUNDS $17,180,237 BE IT FURTHER RESOLVED, that, summaries of the 2019 budget shall be incorporated with and included as part of this resolution as Attachment A. Passed and adopted this 10th day of December, 2018. ________________________________ Carol A. Mueller, Mayor ATTEST: ________________________________ Nyle Zikmund, City Administrator (SEAL) CITY OF MOUNDS VIEW, MINNESOTA Combined 2019 Budget All Funds Special Debt Capital Total 2019 2018 General Revenue Service Projects Government Enterprise Total All Total All Fund Funds Funds Funds Funds Funds Funds Funds Revenues: Property taxes 4,759,230$ 100,000$ 418,446$ 150,000$ 5,427,676$ -$ 5,427,676$ 4,873,985$ Tax increments - 1,711,275 - - 1,711,275 - 1,711,275 1,670,873 All other taxes 389,000 128,000 - 295,000 812,000 - 812,000 904,000 Special assessments - - - 15,000 15,000 65,000 80,000 80,000 Licenses & permits 183,372 - - - 183,372 - 183,372 183,172 Intergovernmental: State categorical aid 993,014 - - 275,000 1,268,014 - 1,268,014 1,259,754 County grants - 31,545 - - 31,545 - 31,545 31,455 Other local govt.170,000 23,000 - - 193,000 - 193,000 93,000 Charges for services: Culture and recreation - 312,062 - - 312,062 - 312,062 257,414 Utility service charges - -- - - 3,210,180 3,210,180 3,081,018 Miscellaneous 16,625 - - - 16,625 2,000 18,625 18,825 Fines 33,000 2,000 - - 35,000 - 35,000 38,600 Investment income 115,000 3,500 200 11,000 129,700 39,400 169,100 176,600 Miscellaneous: Other 294,084 500 - 3,000 297,584 - 297,584 285,946 Total revenues 6,953,325$ 2,311,882$ 418,646$ 749,000$ 10,432,853$ 3,316,580$ 13,749,433$ 12,954,642$ 1 CITY OF MOUNDS VIEW, MINNESOTA Combined 2019 Budget All Funds Special Debt Capital Total 2019 2018 General Revenue Service Projects Government Enterprise Total All Total All Fund Funds Funds Funds Funds Funds Funds Funds Expenditures: General government: Personal services 592,507 - - - 592,507 - 592,507 567,671 Supplies 46,450 - - - 46,450 - 46,450 44,291 Contractual services 332,724 - - 332,724 - 332,724 329,759 Capital outlay - - - 439,858 439,858 - 439,858 40,000 Public safety Personal services 2,704,665 - - - 2,704,665 - 2,704,665 2,534,404 Supplies 77,390 2,700 - - 80,090 - 80,090 81,770 Contractual services 824,545 500 - - 825,045 - 825,045 800,038 Capital outlay 59,761 - - 111,000 170,761 - 170,761 155,136 Public works Personal services 547,410 - - - 547,410 899,008 1,446,418 1,399,943 Supplies 133,555 - - - 133,555 130,926 264,481 285,471 Contractual services 186,014 - - - 186,014 1,765,619 1,951,633 1,920,209 Depreciation - - - - - 368,000 368,000 358,000 Capital outlay - - - 1,324,340 1,324,340 921,000 2,245,340 2,921,320 Sanitation Personal services - 12,377 - - 12,377 - 12,377 14,026 Supplies - 500 - - 500 - 500 500 Contractual services - 18,668 - - 18,668 - 18,668 16,929 Culture and recreation: Personal services 237,404 149,808 - - 387,212 - 387,212 363,142 Supplies 55,858 28,220 - - 84,078 - 84,078 75,625 Contractual services 236,718 419,363 - - 656,081 - 656,081 620,295 Capital outlay - 105,000 - 189,000 294,000 - 294,000 527,545 Community & Economic development Personal services 417,600 125,365 - - 542,965 - 542,965 488,985 Supplies 4,485 600 - - 5,085 - 5,085 4,075 Contractual services 55,104 1,733,646 - - 1,788,750 - 1,788,750 1,769,968 Capital outlay - 50,000 - - 50,000 - 50,000 50,000 Miscellaneous Personal services 6,500 - - - 6,500 - 6,500 6,500 Contractual services 88,079 - - - 88,079 - 88,079 84,973 Debt principal 162,725 42,199 225,000 - 429,924 7,349 437,273 142,112 Interest and fiscal charges 27,886 10,921 168,370 - 207,177 1,902 209,079 250,629 Total expenditures 6,797,380 2,699,867 393,370 2,064,198 11,954,815 4,093,804 16,048,619 15,853,316 Surplus of revenues over (under) expenditures and 155,945 (387,985) 25,276 (1,315,198) (1,521,962) (777,224) (2,299,186) (2,898,674) Other financing sources (uses) Transfers in 195,055 325,563 - 511,000 1,031,618 100,000 1,131,618 1,093,628 Transfers out (601,000) (85,563) - (123,000) (809,563) (322,055) (1,131,618) (1,093,628) Total other fin. sources (uses)(405,945) 240,000 - 388,000 222,055 (222,055) - - Net change in fund balance or net assets (250,000) (147,985) 25,276 (927,198) (1,299,907) (999,279) (2,299,186) (2,898,674) Add back capital outlay & debt principal - - - - - 928,349 928,349 386,453 Fund balance, January 1:9,189,739 1,478,889 328,624 3,311,649 14,308,901 10,917,204 25,226,105 25,331,455 Fund balance, December 31 8,939,739 1,330,904 353,900 2,384,451 13,008,994 10,846,274 23,855,268 22,819,234 2 City of Mounds View 2019 Budget Summary 2015 2016 2017 2018 2019 Change from 2018 General Fund:Actual Actual Actual Budget Request Dollar Percent Revenues: Property taxes - Base levy 3,651,411 3,700,381 3,809,842 4,025,429 4,244,285 218,856 5.44% Special tax levies, Bonds 154,119 154,119 90,835 99,177 165,800 66,623 67.18% Special tax levies, Operations 226,145 233,145 244,145 334,345 349,145 14,800 4.43% Franchise tax 309,039 296,173 309,303 290,000 295,000 5,000 1.72% Other taxes 47,877 27,556 31,610 29,000 29,000 - 0.00% Hotel/motel tax 69,109 67,408 68,666 65,000 65,000 - 0.00% Licenses and permits 204,845 184,499 310,965 183,172 183,372 200 0.11% Intergovernmental 1,038,060 1,090,100 1,093,163 1,054,754 1,163,014 108,260 10.26% Charges for services 18,942 40,988 17,144 16,825 16,625 (200) -1.19% Fines & forfeitures 36,338 29,278 26,810 36,600 33,000 (3,600) -9.84% Interest 112,669 104,985 127,086 115,000 115,000 - 0.00% Miscellaneous 321,188 342,547 382,536 282,696 294,084 11,388 4.03% Transfers: DARE Fund 4,643 - - - - - 0.00% Water Fund - - - 78,103 80,446 2,343 3.00% Sewer Fund 56,611 58,309 60,058 61,860 80,446 18,586 30.05% Storm Water Fund 7,383 7,604 7,832 8,067 8,309 242 3.00% Street Light Fund 2,536 2,612 2,690 2,771 2,854 83 3.00% Vehicle & Equipment Fund 21,000 22,000 21,600 22,000 23,000 1,000 4.55% Debt proceeds 246,729 - 172,427 - - - 0.00% Total revenues 6,528,644 6,361,704 6,776,712 6,704,799 7,148,380 443,581 6.62% 92,173 90,525 92,180 172,801 195,055 Expenditures: Legislative Services: City Council 47,115 47,213 55,479 60,881 60,752 (129) -0.21% Advisory Commissions 8,720 15,520 14,375 17,000 19,500 2,500 14.71% Subtotal 55,835 62,733 69,854 77,881 80,252 2,371 3.04% Administrative Services: City Administrator 271,314 282,476 314,338 285,610 309,655 24,045 8.42% Elections 22,222 47,279 32,575 24,500 26,832 2,332 9.52% Finance 246,268 255,786 261,574 271,256 274,169 2,913 1.07% Central Services 216,482 237,713 259,406 282,474 280,773 (1,701) -0.60% Subtotal 756,286 823,254 867,893 863,840 891,429 27,589 3.19% Community Development 353,381 320,413 324,265 458,347 477,189 18,842 4.11% Police 2,710,054 2,719,071 2,814,764 2,970,719 3,148,099 177,380 5.97% Fire 567,934 592,181 685,187 603,383 684,378 80,995 13.42% Public Works Administration 113,779 135,670 129,775 148,962 156,637 7,675 5.15% Parks, Recreation & Forestry: Recreation 112,429 109,358 109,071 118,849 122,042 3,193 2.69% Parks 333,043 322,085 280,083 337,519 358,750 21,231 6.29% Forestry 34,478 29,474 11,887 42,173 49,188 7,015 16.63% Subtotal 479,950 460,917 401,041 498,541 529,980 31,439 6.31% Fleet Services: Building & Grounds Mtnce 391,909 116,217 118,555 130,876 137,834 6,958 5.32% Vehicle & Equipment Mtnce 84,331 86,966 108,818 113,448 122,604 9,156 8.07% Subtotal 476,240 203,183 227,373 244,324 260,438 16,114 6.60% Streets: Pavement Management 203,268 185,346 192,701 231,743 233,056 1,313 0.57% Snow & Ice Control 134,936 131,951 107,680 148,117 150,547 2,430 1.64% Sign Maintenance 40,315 37,082 44,676 67,248 66,301 (947) -1.41% Subtotal 378,519 354,379 345,057 447,108 449,904 2,796 0.63% Other Convention & Visitor's Bureau 65,654 64,038 65,233 61,750 61,750 - 0.00% Social Service Coordination 20,178 20,259 20,461 20,748 26,329 5,581 26.90% Miscellaneous/contingency 4,975 5,061 5,238 6,500 6,500 - 0.00% Transfers to other funds 496,000 745,000 765,000 565,000 601,000 36,000 6.37% Debt service 20,268 24,495 24,495 24,496 24,495 (1) 0.00% Subtotal 607,075 858,853 880,427 678,494 720,074 41,580 6.13% Total expenditures 6,499,053 6,530,654 6,745,636 6,991,599 7,398,380 406,781 5.82% Net change in fund balance 29,591 (168,950) 31,076 (286,800) (250,000) 36,800 Beginning Fund Balance 9,584,822 9,614,413 9,445,463 9,476,539 9,189,739 Ending Fund Balance 9,614,413 9,445,463 9,476,539 9,189,739 8,939,739 36,800 3 CITY OF MOUNDS VIEW, MINNESOTA Special Revenue Funds 2019 Budgets Combining Statement of Revenues and Expenditures and Net Changes in Fund Balances Cable Community Lakeside Recycling TIF TV Forfeiture EDA Center Park Grant District #5 2019 2018 Revenues: Taxes 128,000 - 100,000 - - - 1,711,275 1,939,275 1,900,873 Intergovernmental: County grants - - - - - 31,545 - 31,545 31,455 Other local govt.- - - - 23,000 - - 23,000 23,000 Charges for services: Culture and recreation - - - 312,062 - - - 312,062 257,414 Miscellaneous: Fines - 2,000 - - - - - 2,000 2,000 Investment income - - - 300 200 - 3,000 3,500 3,600 Other - - - - 500 - - 500 250 Total revenues 128,000 2,000 100,000 312,362 23,700 31,545 1,714,275 2,311,882 2,218,592 Expenditures: Public safety Supplies - 2,700 - - - - - 2,700 1,100 Contractual services - 500 - - - - - 500 500 Capital outlay - - - - - - - - 5,500 Sanitation Personal services - - - - - 12,377 - 12,377 14,026 Supplies - - - - - 500 - 500 500 Contractual services - - - - - 18,668 - 18,668 16,929 Culture and recreation: Personal services 94,480 - - 51,113 4,215 - - 149,808 144,464 Supplies 3,750 - - 21,970 2,500 - - 28,220 26,677 Contractual services 45,492 - - 356,876 16,995 - - 419,363 389,380 Capital outlay 105,000 - - - - - - 105,000 207,545 Debt Service - - - 53,120 - - - 53,120 53,120 Economic development Personal services - - 125,365 - - - - 125,365 108,665 Supplies - - 600 - - - - 600 700 Contractual services - - 121,822 - - - 1,611,824 1,733,646 1,695,316 Capital outlay - - 50,000 - - - - 50,000 50,000 Total expenditures 248,722 3,200 297,787 483,079 23,710 31,545 1,611,824 2,699,867 2,714,422 Surplus of revenues over (under) expenditures (120,722) (1,200) (197,787) (170,717) (10) - 102,451 (387,985) (495,830) Other financing sources (uses) Transfers in - - 135,563 190,000 - - - 325,563 323,543 Transfers out - - - - - - (85,563) (85,563) (83,543) Total other financing sources (uses)- - 135,563 190,000 - - (85,563) 240,000 240,000 Net change in fund balance (120,722) (1,200) (62,224) 19,283 (10) - 16,888 (147,985) (255,830) Fund balance, January 1:140,806 (2,288) 298,157 157,546 9,479 28,360 846,829 1,478,889 1,473,287 Fund balance, December 31 20,084 (3,488) 235,933 176,829 9,469 28,360 863,717 1,330,904 1,217,457 Total 4 2018 2019 Change from 2018 Budget Request Dollar Percent GO Capital Imp. Plan Bonds of 2017A Debt Service (Fund 506): Revenues 3101 Property taxes 415,034 418,446 3,412 0.82% 3102 Delinquent taxes - - - 0.00% 3121 Fiscal disparities - - - 0.00% 3610 Investment income 200 200 - 0.00% 3680 Misc revenue - - - 0.00% 3972 Transfers 126,284 - (126,284) -100.00% 3993 Bond proceeds - - - 0.00% Total revenue 541,518 418,646 (122,872) -22.69% Operating expenses (4650): Contractual services 8010 Debt, principal - 225,000 225,000 0.00% 8020 Debt, interest 211,419 166,895 (44,524) -21.06% 8030 Paying agent 475 475 - 0.00% 8040 Continuing disclosure 1,000 1,000 - 0.00% Total contractual services 212,894 393,370 180,476 84.77% Net change in fund balance 328,624 25,276 (303,348) -92.31% Fund balance, beginning year - 328,624 328,624 0.00% Fund balance, end of year 328,624 353,900 25,276 7.69% 2019 Budget Summary 5 CITY OF MOUNDS VIEW, MINNESOTA Capital Project Funds 2019 Budgets Combining Statement of Revenues and Expenditures Park Vehicle and Special Street Dedication Equipment Projects Improvement 2019 2018 Revenue: Taxes -$-$-$150,000$ 150,000$ -$ Franchise fees -- - 295,000 295,000 290,000 Special assessments -- - 15,000 15,000 20,000 Intergovernmental: State - - - 275,000 275,000 275,000 County - - - - - - Miscellaneous: Investment income 1,000 -2,000 8,000 11,000 19,000 Other 3,000 --- 3,000 3,000 Total revenue 4,000 -2,000 743,000 749,000 607,000 Expenditures: General government -20,500 419,358 -439,858 40,000 Public safety -111,000 - - 111,000 84,600 Streets and highways -63,000 143,340 1,118,000 1,324,340 2,542,000 Culture and recreation 83,500 105,500 - - 189,000 320,000 Total expenditures 83,500 300,000 562,698 1,118,000 2,064,198 2,986,600 Excess (deficiency) of revenue over expenditures (79,500) (300,000) (560,698) (375,000) (1,315,198) (2,379,600) Other financing sources (uses) Operating transfers Bonds issued - - - - - - Transfers in -436,000 75,000 -511,000 471,000 Transfers out -(123,000) - - (123,000)(148,284) Total other financing sources (uses)-313,000 75,000 -388,000 322,716 Net change in fund balance (79,500) 13,000 (485,698) (375,000) (927,198) (2,056,884) Fund balance, January 1 22,739 1,657,813 577,345 1,053,752 3,311,649 4,142,040 Fund balance, December 31 (56,761)$ 1,670,813$ 91,647$ 678,752$ 2,384,451$ 2,085,156$ Total Budget 6 CITY OF MOUNDS VIEW, MINNESOTA Enterprise Funds 2019 Budgets Combining Statement of Revenues and Expenses Sanitary Street Storm Water Sewer Lighting Water 2019 2018 Operating revenue: Operating revenues 1,155,660 1,663,618 104,402 286,500 3,210,180 3,081,018 Special assessments 65,000 - - - 65,000 60,000 Connection charges 2,000 - - - 2,000 2,000 Total operating revenue 1,222,660 1,663,618 104,402 286,500 3,277,180 3,143,018 Operating expenses: Personal services 382,568 372,773 8,058 135,609 899,008 874,243 Supplies 77,949 31,502 1,000 20,475 130,926 149,976 Contractual services 231,623 103,819 3,900 191,684 531,026 499,161 Electricity & gas 129,500 2,100 75,000 - 206,600 187,600 Disposal charges - 997,993 - - 997,993 978,249 Contingency 15,000 15,000 - - 30,000 30,000 Depreciation 238,000 95,000 - 35,000 368,000 358,000 Capital outlays 500,000 316,000 - 105,000 921,000 379,320 Total operating expenses 1,574,640 1,934,187 87,958 487,768 4,084,553 3,456,549 Net operating income (loss)(351,980) (270,569) 16,444 (201,268) (807,373) (313,531) Non-operating revenue (expenses): Investment income 1,000 21,000 1,400 16,000 39,400 38,800 Principal payment on debt (ESP Lease)- - (7,349) - (7,349) (7,133) Interest on debt (ESP Lease)- - (1,902) - (1,902) (2,119) Total non-operating 1,000 21,000 (7,851) 16,000 30,149 29,548 Transfers Transfers in - 100,000 - - 100,000 - Transfers out (147,446) (132,446) (2,854) (39,309) (322,055) (296,801) Revenues over (under) expenditures (498,426) (282,015) 5,739 (224,577) (999,279) (580,784) Add back: Capital outlays 500,000 316,000 - 105,000 921,000 379,320 Principal on debt - - 7,349 - 7,349 7,133 Net income (loss)1,574 33,985 13,088 (119,577) (70,930) (194,331) Net assets (deficit), January 1 3,951,668 3,839,553 91,536 3,034,448 10,917,204 11,157,537 Net assets (deficit), December 31 3,953,242$ 3,873,538$ 104,624$ 2,914,871$ 10,846,274$ 10,963,206$ Total 7 Item No: 08B1 Meeting Date: December 10, 2018 Type of Business: CB Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Public Hearing, Resolution 9044, Approving an On-Sale Intoxicating License Transfer from Mermaid, Inc. to the Triple Shift Entertainment, LLC (doing business as “The Mermaid”) for The Mermaid located at 2200 Mounds View Boulevard Background: In accordance with Chapter 502 of the Mounds View City Code, a public hearing is required for all liquor license transfers. Triple Shift Entertainment LLC is purchasing the property known as “The Mermaid” in mid to late December and would like the On-Sale Intoxicating Liquor License transferred from The Mermaid, Inc. to Triple Shift Entertainment, LLC. Discussion: Triple Shift Entertainment, LLC will be purchasing the property and business known as “The Mermaid” located at 2200 Mounds View Boulevard, from the Mermaid, Inc. This sale will take place sometime mid to late December 2018. Triple Shift Entertainment is requesting that the licenses be transferred to coincide with the closing date. Triple Shift Entertainment LLC as submitted all required city liquor license application materials and fees (which includes Sunday Sales). They have also submitted an application for an Outdoor Liquor Consumption Endorsement to sell liquor outside on their patio (weather permitting). The following investigations and inspections have been conducted: Mounds View Police Department The Mounds View Police Department has issued a satisfactory background report for the applicant, Robert James Spigner, representing Triple Shift Entertainment LLC. City Billing (Mounds View Finance Department)/Ramsey County Property Taxes) The Mermaid is up to date on payment of all water/sewer bills. There are no other outstanding fees owed to the City. The Finance Department issued a satisfactory report. In addition, there are no outstanding property taxes for this property. Fire Inspection (SBM Fire Department) The last fire inspection conducted on the property was August 28, 2017 which passed. If Council desires that another inspection be conducted for fire compliance, please advise Staff and we will get that scheduled promptly as our new Fire Marshal is now a Mounds View staff member, Jacob Martin. Recommendation: Staff recommends approving Resolution 9044, approving an On-Sale Intoxicating Liquor License transfer from Mermaid, Inc. to the Triple Shift Entertainment LLC (to include Sunday Sales and an Outdoor Liquor Endorsement). Respectfully Submitted, ___________________________ Nyle Zikmund RESOLUTION 9044 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA Approving an On-Sale Intoxicating License Transfer from Mermaid, Inc. to Triple Shift Entertainment LLC, (doing business as “The Mermaid”) for the The Mermaid Located at 2200 Mounds View Boulevard WHEREAS, Triple Shift Entertainment, LLC has made application to the City of Mounds View to transfer the On-Sale Intoxicating Liquor License (including Sunday Sales and an Outdoor Liquor Consumption Endorsement) for the Mermaid from Mermaid, Inc. to Triple Shift Entertainment, LLC dba “The Mermaid”; and WHEREAS, all City of Mounds View business license applications or transfers must be approved by the City Council; and WHEREAS, all application materials have been submitted to the City; and WHEREAS, all property taxes and water/sewer charges are current; and WHEREAS, the licensing period would run from December ___, 2018 to June 30, 2019. NOW, THEREFORE, BE IT RESOLVED that the Mounds View City Council does hereby approve an On-Sale Intoxicating Liquor License (with Outdoor Liquor Consumption Endorsement) transfer from the Mermaid, Inc. to Triple Shift Entertainment, LLC dba “The Mermaid” for the property located at 2200 Mounds View Boulevard. Adopted this 10th day of December, 2018. ___________________________________ Carol A. Mueller, Mayor ATTEST: ___________________________________ Nyle Zikmund, City Administrator (SEAL) Item No: 8B2 Meeting Date: December 10, 2018 Type of Business: CB Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Resolution 9043, Approving a Bowling and Restaurant License Transfer from Mermaid, Inc., to Triple Shift Entertainment, LLC, (doing Business as “The Mermaid”), Located at 2200 Mounds View Boulevard Discussion: Triple Shift Entertainment, LLC will be purchasing the property and business known as “The Mermaid” located at 2200 Mounds View Boulevard, from the Mermaid, Inc. This sale will take place sometime mid to late December 2018. Triple Shift Entertainment is requesting that the licenses be transferred to coincide with the closing date. All application materials have been submitted and property taxes and water/sewer bills are current. In addition, the City has received a satisfactory criminal background check on the applicant. Recommendation: Staff recommends approval of Resolution 9043, authorizing a transfer of the Bowling and Restaurant Business Licenses to Triple Shift Entertainment dba The Mermaid. Respectfully Submitted, ____________________ Nyle Zikmund RESOLUTION 9043 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA Approving Bowling and Restaurant License Transfers for “The Mermaid” Located at 2200 Mounds View Boulevard from Mermaid, Inc. to Triple Shift Entertainment, LLC WHEREAS, Triple Shift Entertainment, LLC has made application to the City of Mounds View to transfer the restaurant and bowling licenses for the Mermaid from Mermaid, Inc. to Triple Shift Entertainment, LLC dba “The Mermaid”; and WHEREAS, all City of Mounds View business license applications or transfers must be approved by the City Council; and WHEREAS, all application materials have been submitted to the City; and WHEREAS, all property taxes and water/sewer charges are current; and WHEREAS, the licensing period would run from December ___, 2018 to June 30, 2019. NOW, THEREFORE, BE IT RESOLVED that the Mounds View City Council does hereby approve Bowling and Restaurant Business License transfers from the Mermaid, Inc. to Triple Shift Entertainment, LLC dba “The Mermaid” for the property located at 2200 Mounds View Boulevard. Adopted this 10th day of December, 2018. ___________________________________ Carol A. Mueller, Mayor ATTEST: ___________________________________ Nyle Zikmund, City Administrator (SEAL) Item No: 08C Meeting Date: December 10, 2018 Type of Business: Council Business Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Resolution 9039, Approving the 2019 City Council Meeting, Council/Staff Retreats, and the Town Hall Meeting Dates DISCUSSION Based on the Council’s historical schedule of conducting work sessions for the first Monday of each month and regular Council meeting on the second and fourth Mondays of each month, attached is a proposed list of meeting dates for 2019 (Exhibit A). In addition, Staff has added EDA meetings to the list which are typically held on the same days just prior to the regular Council meetings. The following legal holidays fall on dates that would otherwise be considered meeting dates: September 2nd (Labor Day) is a Work Session and May 27th (Memorial Day) and November 11th (Veterans Day) are Council Meetings. Staff is proposing Tuesday, September 3rd for the Work Session, and Tuesday, November 13th and May 28th for the Council Meetings. Based on council direction, there will also be a special council meeting on January 7, 2018 prior to the work session for the purpose of board and commission appointments and any other business the council deems appropriate for the special meeting. Council and Staff have not discussed the retreat dates. Historically, the council has met in January and in November to review current council goals/priorities and establish subsequent council goals/priorities. With regard to the town hall meeting, Staff recommends scheduling the meeting for a date in April on possibly a Tuesday or Wednesday. Staff recommends again that the town hall meeting be located at Mounds View City Hall starting at 6:00 p.m. RECOMMENDATION Please advise Staff as to which dates you desire for the Council/Staff retreats and town hall meeting. Staff will add the dates to Exhibit A of Resolution 9039 following the meeting. Please also let Staff know if the suggested meeting dates for meetings that fall on a holiday (as shown in Exhibit A) are acceptable. Respectfully submitted, ____________________________ Nyle Zikmund, City Administrator RESOLUTION NO. 9039 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA SETTING AND APPROVING THE 2019 CITY COUNCIL MEETING, COUNCIL/STAFF RETREAT AND TOWN HALL MEETING DATES WHEREAS, the City’s Charter states that the City Council shall meet regularly at least twice monthly as they may designate by ordinance; and WHEREAS, Chapter 105 of the Mounds View City Code states that regular meetings of the City Council shall be held on the second and fourth Mondays of every month; and WHEREAS, Staff has added EDA meetings to the calendar which are typically held on the same days just prior to the regular Council meetings; and WHEREAS, the City Council has traditionally scheduled Work Sessions on the first Monday of the month; and WHEREAS, in accordance with City Code, these meeting dates have been scheduled as shown in Exhibit A; and WHEREAS, the Mounds View City Council has scheduled the 2019 Council/ Staff Retreats and 2019 Town Hall Meeting as shown in Exhibit A. NOW, THEREFORE, BE IT RESOLVED that the Mounds View City Council does hereby establish the official City of Mounds View City Council meeting calendar for 2019 as shown in Exhibit A. Adopted this 10th day of December 2018. ______________________________________ Carol A. Mueller, Mayor ATTEST: _______________________________________ Nyle Zikmund, City Administrator (SEAL) EXHIBIT A 2019 (Meetings held on Monday unless otherwise noted) WORK SESSIONS COUNCIL MEETINGS EDA MEETINGS January 7 January 7 (Special) January ___ (Staff/ Council Retreat 6:00 PM) January 14 January 14 January 28 January 28 February 4 February 11 February 11 February 25 February 25 March 4 March 11 March 11 March 25 March 25 April 1 April 8 April 8 April 22 April 22 April ___ (Town Hall Meeting 6:00 PM) May 6 May 13 May 13 May 28 (Tuesday) May 28 June 3 June 10 June 10 June 24 June 24 July 1 July 8 July 8 July 22 July 22 August 5 August 12 August 12 August 26 August 26 September 3 (Tuesday) September 9 September 9 September 23 September 23 October 7 October 14 October 14 October 28 October 28 November 4 November 12 (Tuesday) November 12 November ___ (Staff/ Council Retreat 6:00 PM November 25 November 25 December 2 December 9 December 9 December 23 December 23 Item No: 08D Meeting Date: December 10, 2018 Type of Business: CB Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, Interim City Administrator Item Title/Subject: Resolution 9041, Approving Appointments to the City of Mounds View’s Boards, Commissions, and Committees INTRODUCTION The Economic Development Commission; Parks, Recreation and Forestry Commission; and Planning Commission, have term seats that will expire on December 31, 2018. The following appointments are recommended by Staff: DISCUSSION Economic Development Commission: (Three Seats Open) Staff has received four appointment applications for the EDC; Roscoe Curry, Jason Helgemoe, Gary Stevenson and Jim Freichels. Three of applicants are currently serving on the EDC and are requesting to renew their terms. Roscoe Curry is new applicant and he has also applied for the Parks, Recreation and Forestry and Planning Commissions. He desires to be placed where he is needed most. At its November 16, 2018 EDC meeting, a motion was made recommending Mr. Helgemoe and Mr. Freichels as EDC Commission member business reps and Mr. Stevenson as EDC Commission member residential rep. At its November 36th meeting, the EDA adopted Resolution 18-EDA-316 appointing all three applicants. Parks, Recreation and Forestry Commission: (Three Seats Open) Staff has received three appointment applications for the PRF Commission; John Kroeger, Gary Rundle and Roscoe Curry. John Kroeger is currently servicing on the PRF Commission and is requesting to renew his term. Gary Rundle is currently serving on the Planning Commission and the PRF Commission. Roscoe Curry is a new applicant that has applied for all three commissions and desires to be placed where he is needed most with the PRF as his first choice. At its November 15th meeting, the PRF Commission unanimously recommended appointing all three applicants. Planning Commission: (Three Seats Open) Staff has received three appointment applications for the Planning Commission; Jason French, Celena Monn and Roscoe Curry. Two of the applicants are currently serving on the Planning Commission and are requesting to renew their term. Roscoe Curry, as stated earlier, has applied to all three Commissions, however, the PRF Commission is his first choice and the Commission has recommended to Staff that Mr. Curry be appointed on the PRF Commission. The Planning Commission at its December 5th meeting adopted Resolution 1090-18 recommending reappointing Jason French and Celena Monn. STAFF RECOMMENDATION Attached are all submitted applications. Staff is recommending Jason Helgemoe, Gary Stevenson and Jim Freichels be appointed to the EDC; John Kroeger, Gary Rundle and Roscoe Curry to the PRF Commission and Jason French and Celena Monn to the Planning Commission. For all applicants that are appointed, their terms will expire December 31, 2021. The Planning Commission will have one open seat. Attached is Resolution 9041 for your consideration. Respectfully submitted, _____________________ Nyle Zikmund, City Administrator RESOLUTION NO. 9041 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING APPOINTMENTS TO THE CITY OF MOUNDS VIEW’S BOARDS, COMMISSIONS AND COMMITTEES WHEREAS, the City of Mounds View’s boards, commissions and committees consist of members appointed by the City Council; and WHEREAS, there will be vacant seats effective December 31, 2018, on the Economic Development Commission (3); Parks, Recreation and Forestry Commission (3); and Planning Commission (3); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View, Ramsey County, Minnesota, hereby approve the appointments as follows: Term Expiration (3-Year Term) Economic Development Commission: Jason Helgemoe (Business Rep) December 31, 2021 Gary Stevenson (Resident Rep) December 31, 2021 Jim Freichels (Business Rep) December 31, 2021 Parks, Recreation and John Kroeger December 31, 2021 Forestry Commission: Gary Rundle December 31, 2021 Roscoe Curry December 31, 2021 Planning Commission: Jason French December 31, 2021 Celena Monn December 31, 2021 Adopted this 10th day of December, 2018. ___________________________________ Carol A. Mueller, Mayor ATTEST: _______________________________________ Nyle Zikmund, City Administrator (SEAL) Item No: 8.E. Meeting Date: December 19, 2018 Type of Business: Council Business Administrator review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Resolution 9055, Approving the Promotion of Brian Beeman to Assistant City Administrator Background: Mr. Beeman began his career with Mounds View in July, 2014 when he was hired as the Business Development Coordinator. About a year ago he transitioned from part time to full time. Additionally, the City has; over the years – has the position of Assistant City Administrator. That position recently went away with the creation and hiring of a full time Human Resource Coordinator. Discussion: The decision to create and hire a dedicated Human Resource position has proven its wisdom, especially given the need to hire ten employees (20% of the workforce) this past year. However, it has become apparent to me that having a clear second/assistant remains critical to the strategic goals as well as sustainability of operations. This issue has been discussed at workshop and vetted by the Human Resource Committee. Our consultant evaluated the job description, which is included as an attachment to the item. Step 1 Step 1.5 Step 2 Step 3 Step 4 Step 5 $39.34 $40.57 $41.50 $44.26 $46.71 $49.17 Recommendation: Staff recommends that Mr. Beeman be promoted to Assistant City Administrator and begin at Step 1 or $39.34 on January 1, 2019 and move to $40.57 (step 1.5)upon successful completion of a six month probation period ending July 1, 2019 and Step 2 on January 1, 2020. Respectfully submitted, ________________________ Nyle Zikmund, City Administrator RESOLUTION NO. 9055 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING THE PROMOTION OF BRIAN BEEMAN TO ASSISTANT CITY ADMINISTRATOR WHEREAS, Brian Beeman was hired as the Business Development Coordinator; and WHEREAS, Mr. Beeman has met and exceeded expectations in that position as well as demonstrated a desire and ability to add more value to the City of Mounds View ; and WHEREAS, An Assistant City Administrator adds value both in meeting strategic and sustainability goals; and WHEREAS, Council has discussed this at retreat and the 2019 proposed budget includes sufficient resources for the pay range of the position as follows and: Step 1 Step 1.5 Step 2 Step 3 Step 4 Step 5 $39.34 $40.57 $41.50 $44.26 $46.71 $49.17 WHEREAS, Mr. Beeman is recommend to be assigned to Step 1 of the wage scale effective January 1, 2019. NOW, THEREFORE IT BE RESOLVED THAT the City Council of the City of Mounds View approves the following: 1. Brian Beeman shall be promoted to the Assistant City Administrator position effective January 1, 2019, and be assigned to Step 1 of the pay range. 2. Mr. Beeman shall be subject to a six month promotional probationary period and move to Step 1.5 on July 1, 2019 upon successful completion and on his one year anniversary January 1, 2020 move to step 2. Adopted this 10th Day of December, 2018 ________________________________ Carol A. Mueller, Mayor ATTEST: ________________________________ Nyle Zikmund, City Administrator (seal) Item No 8F Meeting Date: December 10, 2018 Type of Business: CB Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Ordinance 952 Chapter 600 Code Update, Second Reading, adoption and ordering summary publication Introduction: This is a continuation of the City Code update with Chapters 100 through 500 update and adopted earlier this year. Chapter 600 deals with Public Health. The proposed Ordinance has been published on our web page since November 7, 2018 and First Reading was held on November 13. One change was made at the meeting; increasing the length of time a commercial vehicle can be parked on the street (during non-restricted hours) from 2 hours to 4 hours. Discussion: Along with numerous technical changes, substantive changes include the council a modest increase to fire false alarm calls from $200 to $250 as it appears more than a decade has passed since it was last increase. We also clarified that the false alarm occurrence is for the entire complex; that is – each unit in each building does not get two “free” false alarms before we impose a fee. Lastly, we “added” domestic” water response to the ordinance as a fee in response to at least on multi-family property failing to provide adequate plumbing and repair systems resulting in residences calling the Fire Department to shut off their water when broken pipes occur. Another addition since first reading is found in Section 3, subsection 1a where language was added to reference our ability to promulgate Solid Waste Management Standards (which we have done) and this simply provides substantiation of our legal authority to do. Recommendation: Conduct Second Reading of Ordinance 952 to update Chapter 600 of the City Code, approve and order summary publication. Respectfully submitted, ________________________ Nyle Zikmund City Administrator 1 ORDINANCE NO. 952 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING TITLE 600, CHAPTERS 601, 602, 603, 606, AND 607 OF THE MOUNDS VIEW CITY CODE RELATING TO PUBLIC HEALTH AND SAFETY SECTION 1. The City Council of the City of Mounds View hereby amends Title 600, Chapter 601 of the Mounds View Municipal Code by deleting Chapter 601 in its entirety. SECTION 2. The City Council of the City of Mounds View hereby amends Title 600, Chapter 602 of the Mounds View Municipal Code by adding the double-underlined material and deleting the stricken material as follows: CHAPTER 602 POLICE AND FIRE FEES AND CHARGESALARMS 1 SECTION: 602.01: Definitions 602.02: False Alarm Fees 602.03: Maintenance-Related Fire Service Charge 602.043: Appeal Process 602.054: Collection of Fees 602.01: DEFINITIONS: As used in this Chapter, the following words and terms shall have the meanings ascribed to them in this Section: Subd. 1. ALARM USER: The person, firm, partnership, association, corporation, company or organization of any kind upon whose premises an alarm or alarm system is installed, operated or maintained. In the case of a single-family residenceresidential alarms, “alarm user” shall mean the owner, resident, tenant or lessee of the single-family residence, as the case may be. In the case of a multi-family residence, including apartment complexes, “alarm user” shall mean the owner of the multi-family residence. Subd. 2. ALARMS: Any mechanical functioning or electronic device which, directly or indirectly, summons police or fire personnel. 1 See subdivision 702.0)(13)g of this Code, false alarms and tampering with the system declared a misdemeanor; see Section 1002.02, amendment 11.301 of this Code, sounding fire alarms constitutes a fire. 2 Subd. 3. CITY: The City of Mounds View. Subd. 4. FALSE ALARMS: Any alarm message or automated signal that summons police or fire personnel to a location where no fire, smoke, criminal activity or other emergency exists. This definition does not include alarms caused by weather or other conditions deemed to be beyond the control of the alarm manufacturer, installer or owner. Subd. 5. MAINTENANCE-RELATED FIRE SERVICES: Services provided by the City’s fire department related to property maintenance issues, including but not limited to those related to domestic water supplies and plumbing. 602.02: FALSE ALARM FEES: Subd. 1. Fee Established: A fee shall be charged by the City to any alarm user for a third and any subsequent false alarm response within a twelve (12) month time period. The alarm user will be responsible for payment of the fee. Subd. 2. Schedule of Fees: The following are established fees for false alarms: a. Fire Alarms: (1) For the third and each subsequent false fire alarm in a twelve (12) month period, two hundred and fifty dollars ($250.00200.00). (2) For each subsequent false fire alarm over three (3) in a twelve (12) month period, two hundred fifty dollars ($250.00). b. Police Alarms: (1) For the third and each subsequent false police alarm in a twelve (12) month period, fiftyone hundred dollars ($100.0050.00). (2) For each subsequent false police alarm over three (3) in any twelve (12) month period, seventy five dollars ($75.00). 602.03: MAINTENANCE-RELATED FIRE SERVICE CHARGE: Due to an increase in maintenance-related fire service calls at properties within the City and pursuant to its authority to charge for fire services contained in Minnesota Statutes, sections 366.011, 366.012, and 415.01, the City may impose a service charge on a property owner for receiving maintenance-related fire services. Subd. 1. Property owners receiving maintenance-related fire services shall be billed directly by the City a charge in the amount of $250.00 per occurrence, which shall be used to offset the expenses in providing said services. If the property owner fails to pay the service charge within 20 days of the billing date, it will be considered delinquent and the City may send a notice of delinquency. 3 Subd. 2. If a charge remains unpaid for more than 30 days after a written notice of delinquency, the City may certify the unpaid charge for collection with property taxes in accordance with Section 602.05, subdivision 2. 602.043: APPEAL PROCESS: Subd. 1. Appeal to Fire Chief or Police Chief: An alarm user or property owner required by the City to pay a fee as a result of false alarm or a maintenance-related fire service charge may make a written appeal of false alarm charges to the Chief of Police or Fire Chief within ten (10) working days after mailed notice of a false alarmthe fee or charge. The Chief of Police or Fire Chief has the authority to make final determination as to whether the applicant is to be charged with a false alarm. Subd. 2. Appeal to Council: An alarm user may appeal the decision of the Chief of Police or Fire Chief to the City Council by submitting a request, in writing, to the City Administrator within ten (10) working days after the decision of the Chief of Police or Fire Chief. 602.054: COLLECTION OF FEES: Subd. 1. Names Submitted to Finance Department: The Police Department and the Fire Department shall document the names of the alarm users or property owners that owe fees or chargeswho violate the provisions of this Chapter. The names shall be submitted to the Finance Department with the appropriate feeamount to be charged. Subd. 2. Means of Collection: The Finance Department shall be responsible for the collection of the false alarm feescharges authorized under this Chapter. The City shall have the power to collect such fees by whatever means becomes necessary, including the institution of a civil action against the alarm user responsible for the payment of such fee and tax certification on the alarm user’s tax rolls with the County. If a fee or charge remains unpaid for 30 days after a written notice of delinquency, the City Council may, on or before October 15 of each year, certify it to the county auditor for collection with property taxes. The City must give the property owner notice of its intent to certify by September 15. SECTION 3. The City Council of the City of Mounds View hereby amends Title 600, Chapter 603, Section 603.02, subdivision 1 of the Mounds View Municipal Code by adding the double- underlined material as follows: Subd. 1. Collection Required: a. All garbage, recyclables, yard waste, source-separated organic waste and other waste material accumulated in the city shall be collected and conveyed under the supervision of the city administrator. The city administrator or their designee shall have the authority to develop Solid Waste Management Standards concerning days of collection, type and location of waste containers and other matters as they deem necessary to provide for the safe, orderly and cost-efficient preparation, storage, collection and disposal of all waste 4 materials covered in this ordinance. These standards shall not be contrary to this Chapter and upon their approval and adoption by the City Council via resolution, said standards are incorporated into this Code as if fully set forth herein. Any violation of these standards shall be deemed a violation of this Code. b. Unless otherwise exempt pursuant to subdivision 2 hereof, each residence, multiple-unit dwelling, commercial establishment and mobile home park in the City shall contract with a hauler licensed by the City for the collection of garbage and/or recyclables. c. All residents and commercial property shall separate all designated recyclables, and other items designated by City of Mounds View Solid Waste Management Standards, from garbage. These source separated items shall be collected for separate recycling, processing or treatment. d. All garbage shall be disposed of in compliance with state law and county policies regarding required processing of solid waste. SECTION 4. The City Council of the City of Mounds View hereby amends Title 600, Chapter 603, Section 603.05, subdivision 2 of the Mounds View Municipal Code by adding the double- underlined material as follows: Subd. 2. Disposal: Except for purposes of composting under subdivision 1 above or of authorized disposal at designated Ramsey County yard waste collection sites, it shall be unlawful for any person to dispose of yard waste on private or public lands located in the City. All yard waste must be disposed of in the manner prescribed by law. SECTION 5. The City Council of the City of Mounds View hereby amends Title 600, Chapter 603, Section 603.06, subdivision 1(d) of the Mounds View Municipal Code by adding the double- underlined material and deleting the stricken material as follows: d. Liability Insurance: Before a license is issued, the applicant shall file with the City Administrator evidence that the applicant has in effect public liability insurance for the hauler’s business and for all vehicles that will be used to haul in the City of Mounds View Solid Waste Management Standards. SECTION 6. The City Council of the City of Mounds View hereby amends Title 600, Chapter 606, Section 606.03 of the Mounds View Municipal Code by adding the double-underlined material and deleting the stricken material as follows: 606.03: DESTRUCTION BY CITY AUTHORITY: When the owner or person in control of any plot of ground fails to destroy grasses or weeds growing thereon as provided herein, the Code Enforcement Official, or its designee, Superintendent of Public Works of the City shall destroy or cause to be cut such grasses or weeds and any expense incurred by the City under the authority of the Superintendent of Public Works in so doing shall be a charge against the owner or other person so failing, which may be recovered on behalf of the City by recording a lien against the property for the cost of said cutting or by instituting an appropriate action at law. Said cost 5 shall be an amount as determined by the City. SECTION 7. The City Council of the City of Mounds View hereby amends Title 600, Chapter 607, Section 607.03, subdivision 3(b) of the Mounds View Municipal Code by adding the double- underlined material as follows: b. All limbs of trees which are less than eight feet (8’) above the surface of any public street, sidewalk or alley. SECTION 8. The City Council of the City of Mounds View hereby amends Title 600, Chapter 607, Section 607.06, Subdivision 2 of the Mounds View Municipal Code by adding the double- underlined material and deleting the stricken material as follows: Subd. 2. Unlawful Parking And Storage: a. No person may place, store, or allow the placement or storage of non-drop axle ice fish houses, skateboard ramps, play houses, or other similar nonpermanent structures outside continuously for longer than twenty four (24) hours in the front-yard area of residentially-zoned property. b. No person may place, store or allow the placement or storage of pipe, lumber, steel, machinery, or similar materials, including all materials used in connection with a business, outside on residentially-zoned property. c. No person shall cause, undertake, permit or allow the outside parking and storage of vehicles on any property within the City unless it complies with the following requirements: (1) Vehicles which are parked or stored outside shall be parked upon an “improved surface” as defined in this Code. (2) All vehicles, watercraft and other articles stored outside on residential property must be owned by a person who is a legal resident of that property. d. No person owning, driving or in charge of any commercial vehicle or trailer with a gross weight classification higher than “G” (12,001 – 15,000 pounds) as identified on the license plate and specified in Minnesota Statutes, may cause or permit that commercial vehicle or trailer to be parked outside or stand continuously for more than two (2) hours on a residential property or a public street within a residential zone in the City between the hours of 7:00 p.m. and 7:00 a.m. No more than one (1) commercial vehicle or trailer with a gross weight classification of “G” or lower may be parked upon a single-family residential property between the hours of 7:00 p.m. and 7:00 a.m. e. No person owning, driving or in charge of any vehicle with more than one (1) rear axel chassis design or more than six (6) wheels total may cause or permit that vehicle to be parked outside or stand continuously for more than two (2) four (4) hours on residential 6 property or public street within a residential zone in the City. f. There shall be no more than one (1) Commercial Vehicle parked upon a single-family residential property or per dwelling unit in the case of multiple unit dwellings. SECTION 9. In accordance with Section 3.07 of the City Charter, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: On November 26, 2018, the City Council adopted Ordinance 952 that amends Title 600, Chapters 601, 602, 603, 606, and 607 of the Mounds View City Code. The purpose of the amendment was to modify certain city public health and safety regulations, remove outdated code language, clarify certain regulations, and update the code to conform to current practices. The Ordinance also incorporates new provisions regarding maintenance- related fire service charges. A printed copy of the ordinance is available for inspection during regular business hours at Mounds View City Hall and is available on line at the City’s web site located at www.moundsviewmn.org. SECTION 10. This ordinance shall take effect and be in force 30 days from and after its passage and publication, in accordance with Section 3.09 of the City Charter. Introduction and First Reading by the Mounds View City Council on November 12, 2018. Second Reading and Adoption by the Mounds View City Council on December 10, 2018. Publication Date: December 21, 2018. Carol A. Mueller, Mayor Attest: ______________________________ Nyle Zikmund City Administrator (seal) 1 See subdivision 702.0)(13)g of this Code, false alarms and tampering with the system declared a misdemeanor; see Section 1002.02, amendment 11.301 of this Code, sounding fire alarms constitutes a fire. 1 538384v1 DTA MU210-54 1 ORDINANCE NO. 952 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING TITLE 600, CHAPTERS 601, 602, 603, 606, AND 607 OF THE MOUNDS VIEW CITY CODE RELATING TO PUBLIC HEALTH AND SAFETY SECTION 1.The City Council of the City of Mounds View hereby amends Title 600, Chapter 601 of the Mounds View Municipal Code by deleting Chapter 601 in its entirety. SECTION 2.The City Council of the City of Mounds View hereby amends Title 600, Chapter 602 of the Mounds View Municipal Code by adding the double-underlined material and deleting the stricken material as follows: CHAPTER 602 POLICE AND FIRE FEES AND CHARGESALARMS1 SECTION: 602.01:Definitions 602.02:False Alarm Fees 602.03:Maintenance-Related Fire Service Charge 602.043:Appeal Process 602.054:Collection of Fees 602.01:DEFINITIONS:As used in this Chapter, the following words and terms shall have the meanings ascribed to them in this Section: Subd.1.ALARM USER: The person, firm, partnership, association, corporation, company or organization of any kind upon whose premises an alarm or alarm sys tem is installed, operated or maintained. In the case of a single-family residenceresidential alarms,“alarm user” shall mean the owner, resident, tenant or lessee of the single-family residence, as the case may be.In the case of a multi-family residence, including apartment complexes, “alarm user” shall mean the owner of the multi-family residence. Subd.2.ALARMS: Any mechanical functioning or electronic device which, directly or indirectly, summons police or fire personnel. Subd.3.CITY: The City of Mounds View. 2 538384v1 DTA MU210-54 2 Subd.4.FALSE ALARMS: Any alarm message or automated signal that summons police or fire personnel to a location where no fire, smoke, criminal activity or other emergency exists. This definition does not include alarms caused by weather or other conditions deemed to be beyond the control of the alarm manufacturer, installer or owner. Subd. 5.MAINTENANCE-RELATED FIRE SERVICES: Services provided by the City’s fire department related to property maintenance issues, including but not limited to those related to domestic water supplies and plumbing. 602.02:FALSE ALARM FEES: Subd.1.Fee Established: A fee shall be charged by the City to any alarm user for a third and any subsequent false alarm response within a twelve (12) month time period. The alarm user will be responsible for payment of the fee. Subd.2.Schedule of Fees: The following are established fees for false alarms: a.Fire Alarms: (1)For the third and each subsequent false fire alarm in a twelve (12) month period, two hundred and fifty dollars ($250.00200.00). (2) For each subsequent false fire alarm over three (3) in a twelve (12) month period, two hundred fifty dollars ($250.00). b.Police Alarms: (1)For the third and each subsequent false police alarm in a twelve (12) month period, fiftyone hundred dollars ($100.0050.00). (2) For each subsequent false police alarm over three (3) in any twelve (12) month period, seventy five dollars ($75.00). 602.03:MAINTENANCE-RELATED FIRE SERVICE CHARGE: Due to an increase in maintenance-related fire service calls at properties within the City and pursuant to its authority to charge for fire services contained in Minnesota Statutes, sections 366.011, 366.012, and 415.01, the City may impose a service charge on a property owner for receiving maintenance-related fire services. Subd.1.Property owners receiving maintenance-related fire services shall be billed directly by the City a charge in the amount of $250.00 per occurrence, which shall be used to offset the expenses in providing said services. If the property owner fails to pay the service charge within 20 days of the billing date, it will be considered delinquent and the City may send a notice of delinquency. 3 538384v1 DTA MU210-54 3 Subd.2.If a charge remains unpaid for more than 30 days after a written notice of delinquency, the City may certify the unpaid charge for collection with property taxes in accordance with Section 602.05, subdivision 2. 602.043:APPEAL PROCESS: Subd.1.Appeal to Fire Chief or Police Chief: An alarm user or property owner required by the City to pay a fee as a result of false alarm or a maintenance-related fire service charge may make a written appeal of false alarm charges to the Chief of Police or Fire Chief within ten (10) working days after mailed notice of a false alarmthe fee or charge. The Chief of Police or Fire Chief has the authority to make final determination as to whether the applicant is to be charged with a false alarm. Subd.2.Appeal to Council: An alarm user may appeal the decision of the Chief of Police or Fire Chief to the City Council by submitting a request, in writing, to the City Administrator within ten (10) working days after the decision of the Chief of Police or Fire Chief. 602.054:COLLECTION OF FEES: Subd.1.Names Submitted to Finance Department: The Police Department and the Fire Department shall document the names of the alarm users or property owners that owe fees or chargeswho violate the provisions of this Chapter. The names shall be submitted to the Finance Department with the appropriate feeamount to be charged. Subd.2.Means of Collection: The Finance Department shall be responsible for the collection of the false alarm feescharges authorized under this Chapter. The City shall have the power to collect such fees by whatever means becomes necessary, including the institution of a civil action against the alarm user responsible for the payment of such fee and tax certification on the alarm user’s tax rolls with the County. If a fee or charge remains unpaid for 30 days after a written notice of delinquency, the City Council may, on or before October 15 of each year, certify it to the county auditor for collection with property taxes. The City must give the property owner notice of its intent to certify by September 15. SECTION 3. The City Council of the City of Mounds View hereby amends Title 600, Chapter 603, Section 603.02, subdivision 1 of the Mounds View Municipal Code by adding the double-underlined material as follows: Subd.1.Collection Required: All garbage, recyclables, yard waste, source-separated organic waste and other wastea. material accumulated in the city shall be collected and conveyed under the supervision of the city administrator. The city administrator or their designee shall have the authority to develop Solid Waste Management Standards concerning days of collection, typ e and location of waste containers and other matters as they deem necessary to provide for the 4 538384v1 DTA MU210-54 4 safe, orderly and cost-efficient preparation, storage, collection and disposal of all waste materials covered in this ordinance.These standards shall not be contrary to this Chapter and upon their approval and adoption by the City Council via resolution, said standards are incorporated into this Code as if fully set forth herein. Any violation of these standards shall be deemed a violation of this Code. Unless otherwise exempt pursuant to subdivision 2 hereof, each residence, multiple-unitb. dwelling, commercial establishment and mobile home park in the City shall contract with a hauler licensed by the City for the collection of garbage and/or recyclables. All residents and commercial property shall separate all designated recyclables, and otherc. items designated by City of Mounds View Solid Waste Management Standards, from garbage. These source separated items shall be collected for separate recycling, processing or treatment. All garbage shall be disposed of in compliance with state law and county policiesd. regarding required processing of solid waste. SECTION 4.The City Council of the City of Mounds View hereby amends Title 600, Chapter 603, Section 603.05, subdivision 2 of the Mounds View Municipal Code by adding the double-underlined material as follows: Subd.2.Disposal: Except for purposes of composting under subdivision 1 above or of authorized disposal at designated Ramsey County yard waste collection sites, it shall be unlawful for any person to dispose of yard waste on private or public lands located in the City. All yard waste must be disposed of in the manner prescribed by law. SECTION 4.5.The City Council of the City of Mounds View hereby amends Title 600, Chapter 603, Section 603.06, subdivision 1(d) of the Mounds View Municipal Code by adding the double-underlined material and deleting the stricken material as follows: d.Liability Insurance: Before a license is issued, the applicant shall file with the City Administrator evidence that the applicant has in effect public liability insurance for the hauler’s business and for all vehicles that will be used to haul in the City of Mounds View Solid Waste Management Standards. SECTION 5.6.The City Council of the City of Mounds View hereby amends Title 600, Chapter 606, Section 606.03 of the Mounds View Municipal Code by adding the double-underlined material and deleting the stricken material as follows: 606.03:DESTRUCTION BY CITY AUTHORITY: When the owner or person in control of any plot of ground fails to destroy grasses or weeds growing thereon as provided herein, the Code Enforcement Official, or its designee,Superintendent of Public Works of the City shall destroy or cause to be cut such grasses or weeds and any expense incurred by the City under the authority of the Superintendent of Public Works in so doing shall be a charge against the owner or other person so failing, which may be recovered on behalf of the City by recording a lien 5 538384v1 DTA MU210-54 5 against the property for the cost of said cutting or by instituting an appropriate action at law. Said cost shall be an amount as determined by the City. SECTION 6.7.The City Council of the City of Mounds View hereby amends Title 600, Chapter 607, Section 607.03, subdivision 3(b) of the Mounds View Municipal Code by adding the double-underlined material as follows: b.All limbs of trees which are less than eight feet (8’) above the surface of any public street, sidewalk or alley. SECTION 7.8.The City Council of the City of Mounds View hereby amends Title 600, Chapter 607, Section 607.06, Subdivision 2 of the Mounds View Municipal Code by adding the double-underlined material and deleting the stricken material as follows: Subd.2.Unlawful Parking And Storage: a.No person may place, store, or allow the placement or storage of non-drop axle ice fish houses, skateboard ramps, play houses, or other similar nonpermanent structures outside continuously for longer than twenty four (24) hours in the front-yard area of residentially-zoned property. b.No person may place, store or allow the placement or storage of pipe, lumber, steel, machinery, or similar materials, including all materials used in connection with a business, outside on residentially-zoned property. c.No person shall cause, undertake, permit or allow the outside parking and storage of vehicles on any property within the City unless it complies with the following requirements: (1) Vehicles which are parked or stored outside shall be parked upon an “improved surface” as defined in this Code. (2) All vehicles, watercraft and other articles stored outside on residential property must be owned by a person who is a legal resident of that property. d.No person owning, driving or in charge of any commercial vehicle or trailer with a gross weight classification higher than “G” (12,001 – 15,000 pounds) as identified on the license plate and specified in Minnesota Statutes, may cause or permit that commercial vehicle or trailer to be parked outside or stand continuously for more than two (2) hours on a residential property or a public street within a residential zone in the City between the hours of 7:00 p.m. and 7:00 a.m. No more than one (1) commercial vehicle or trailer with a gross weight classification of “G” or lower may be parked upon a single-family residential property between the hours of 7:00 p.m. and 7:00 a.m. e.No person owning, driving or in charge of any vehicle with more than one (1) rear axel chassis design or more than six (6) wheels total may cause or permit that vehicle to 6 538384v1 DTA MU210-54 6 be parked outside or stand continuously for more than two (2) hours on residential property or public street within a residential zone in the City. f.There shall be no more than one (1) Commercial Vehicle parked upon a single-family residential property or per dwelling unit in the case of multiple unit dwellings. SECTION 8.9. In accordance with Section 3.07 of the City Charter, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: On November 26, 2018, the City Council adopted Ordinance 952 that amends Title 600, Chapters 601, 602, 603, 606, and 607 of the Mounds View City Code. The purpose of the amendment was to modify certain city public health and safety regulations, remove outdated code language, clarify certain regulations, and update the code to conform to current practices. The Ordinance also incorporates new provisions regarding maintenance-related fire service charges. A printed copy of the ordinance is available for inspection during regular business hours at Mounds View City Hall and is available on line at the City’s web site located at www.moundsviewmn.org. SECTION 9.10. This ordinance shall take effect and be in force 30 days from and after its passage and publication, in accordance with Section 3.09 of the City Charter. Introduction and First Reading by the Mounds View City Council on November 12, 2018. Second Reading and Adoption by the Mounds View City Council on November 26, 2018. Publication Date:__________________, 2018. Carol A. Mueller, Mayor Attest: ______________________________ Nyle Zikmund City Administrator (seal) Document comparison by W orkshare 9 on W ednesday, November 14, 2018 5:00:08 PM Input: Document 1 ID PowerDocs://DOCSOPEN/538384/1 Description DOCSOPEN-#538384-v1-Title_600_Amendment Document 2 ID PowerDocs://DOCSOPEN/538384/2 Description DOCSOPEN-#538384-v2-Title_600_Amendment Rendering set Standard Legend: Insertion Deletion Moved from Moved to Style change Format change Moved deletion Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 18 Deletions 9 Moved from 0 Moved to 0 Style change 0 Format changed 0 Total changes 27 Item No 8G Meeting Date: December 10, 2018 Type of Business: CB Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Ordinance 953 Chapter 700 Code Update, Second Reading, adoption and ordering summary publication Introduction: This is a continuation of the City Code update with Chapters 100 thru 500 updated earlier this year and Chapters 600 and 700 coming forward now. The proposed Ordinance was posted on our web page on Wednesday November 7, 2018 and first reading occurred on November 13, 2018. Summary publication will occur on December 21st and the Ordinance will take effect 30 days after. Discussion: Chapter 700 of the code is specific to Public Safety - Police. This chapter includes dog licensing with several technical and consistency changes. There is one substantive change that was driven by mutual agreement of our city attorney and prosecuting attorney specific to Section 702.01 which was specific to misdemeanors. Continuing on our effort to remove statutory redundancy (our code at times was reprinted statute) we have removed all that leaving only the firearm discharge and swimming in public lakes or pools, being the most frequent issues. Recommendation: Conduct Second Reading of Ordinance 952 to update Chapter 700 of the City Code, adopt and order summary publication. Respectfully submitted, ________________________ Nyle Zikmund City Administrator 543142v2 DTA MU210-54 Ordinance 953 1 ORDINANCE NO. 953 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING TITLE 700, CHAPTERS 701 AND 702 OF THE MOUNDS VIEW CITY CODE RELATING TO POLICE REGULATIONS SECTION 1. The City Council of the City of Mounds View hereby amends Title 700, Chapter 701, Section 701.04 of the Mounds View Municipal Code by adding the double-underlined material and deleting the stricken material as follows: 701.04: DOGS: Subd. 1. Dog at large prohibited. A dog owner violates this section if their dog is at large. Subd. 2. Howling and barking. A dog owner violates this section if the dog which, by frequent and habitual howling, yelping, barking or otherwise, causes annoyance or disturbance to two (2) or more persons; provided that the provisions of this section shall not apply to duly authorized hospitals or clinics conducted for the treatment of small animals. Subd. 3. Clean up. Any owner or person having the custody or control of any dog shall: a. Not permit the dog to be on public property or the property of another without having in their immediate possession a device for the collection and removal of feces to a proper receptacle. b. Remove feces left by a dog to a proper receptacle located on the owner’s or custodian’s property, except that droppings in a park may be placed in an outside park trash container. c. The provisions of this section shall not apply to a blind person with a guide dog or to a person with dogs engaged in search or rescue activities. Subd. 4. Damage to property. No dog owner shall permit a dog to damage any lawn, garden or other property. Subd. 5. Licensing and tags. a. License required; fee established: No dog owner shall keep any dog over six (6) months of age within the Municipality unless a license has been issued by the City Administrator for a fee established by City Council resolution. License shall be renewed biennially. The fee for licenses obtained for a period of one (1) year or less shall be one- half (1/2) of the above fees. 543142v2 DTA MU210-54 Ordinance 953 2 b. Rabies inoculation certificate: A certification from a veterinarian shall accompany an application indicating the following: (1) That the dog has been inoculated for rabies within two (2) years from the date of application. (2) That the dog has been spayed or neutered, when a license is being sought for a spayed female or neutered male. c. Expiration: All dog licenses issued under this Chapter shall expire on September 30 of the year of their expiration. d. Payment of fee: It shall be the duty of each dog owner to pay the biennial license fee imposed to the City Administrator before SeptemberOctober 1 in the year which the license is to be renewed, upon acquiring ownership or possession of any unlicensed dog, or upon establishing residence in Mounds View. The City Administrator shall cause a notice of the necessity of paying such license fee to be printed in the City Newsletter one (1) time each yearbefore August 15 of the year in which licenses expire. e. Receipts and tags: Upon payment of the license fee, the City Administrator shall execute a receipt in duplicate. The City Administrator shall deliver the original receipt to the person who paid the fee, retaining the duplicate. The City Administrator shall give an appropriate tag to the owner. The tag shall be metallic and shall be of a different size and design each license period. f. Affixing tags: The owner shall cause the a City-issued tag to be affixed by a permanent metal fastener to the collar of the dog in such manner that the tag may be easily seen. The owner shall ensure the dog wears the tag at all times when outdoors. g. Duplicate tags: If a dog tag is lost, a duplicate may be issued by the City Administrator upon presentation of a receipt showing payment of the license fee for the current year. A charge of two dollars ($2.00) to be determined by the City shall be paid for each duplicate tag. h. Change of address: A dog owner shall notify the City Administrator of any change of address inside the City within ten (10) days. i. Refunds: No dog tag shall be transferred to another dog or dog owner and no refund shall be made on any license fee. j. Offense involving tags: It shall be unlawful to counterfeit or attempt to counterfeit the tags provided for herein or for any person other than the owner to remove from any dog a tag required by this section. Subd. 6. Rabies bites: 543142v2 DTA MU210-54 Ordinance 953 3 a. Whenever a dog has bitten a human or a domestic or farm animal, the dog shall be impounded or confined for a period of ten (10) days or more at the expense of the owner of the dog. Except for the time limit, disposition or redemption shall be in accordance with provisions of this Chapter. The impoundment or confinement may be waived whenever the dog owner presents to the Community Service Officer or a police officer a certificate of a licensed veterinarian indicating that the dog has been vaccinated for rabies on a date not less than twenty-four (24) months prior to the date of the bite. b. A dog owner will not keep a dog that has been bitten by any animal known to have been afflicted with rabies. A dog owner who has a dog which has been bitten by an animal known to have been afflicted with rabies shall, upon demand of the Community Service Officer or any police officer of the City, surrender the dog to the officer for observation and/or treatment. With the approval of the officer, the dog may be surrendered to a registered veterinarian or to any approved non-profit corporation organized for the purpose of sheltering dogs. Subd. 7. Impoundment and redemption: a. Fees: the dog owner may redeem a dog impounded after the term of impoundment ends by paying an impoundment fee, boarding charge, and veterinary service charge. Fees not set by the pound shall be determined by the City Council per resolution. b. Upon purchase or presentation of a current license tag and a receipt for the fees required above, the pound shall release the dog to its owner upon adequate proof of ownership. c. Disposition and unredeemed animals: Any dog which is not redeemed within the time allowed by this Chapter may be sold for not less than the amount provided above to anyone desiring to purchase the dog, if the dog is not requested by a licensed education or scientific institution under Minnesota Statutes, Section 35.71. Any dog which is not redeemed by the owner or sold shall be disposed of. d. Time for redemption: All impounded dogs except those confined for observation of rabies, shall be redeemed within five (5) days, not including Sundays or legal holidays, after the dog was impounded. Any dog not redeemed within five (5) days may be sold, destroyed or otherwise disposed of. e. Guard dogs: (1) A business that has a guard dog for security purposes shall post a conspicuous notice at the entrance of the premises of the presence regarding said dog. (2) A business that has a guard dog shall file with the City a release authorizing the Police or Fire Department to shoot the dog in an emergency situation, if necessary, in order to allow a police officer or firefighter to gain admittance to the premises in 543142v2 DTA MU210-54 Ordinance 953 4 the performance of their duties. Subd. 8. Kennels: a. Licensing requirements: The owner of a proposed dog kennel shall submit a license application to the City Administrator. Upon receipt of the application, the City Administrator shall schedule a public hearing at a future City Council Meeting and shall notify all registered landowners or those occupying land within five hundred feet (500') of the proposed kennel at least ten (10) days in advance of the hearing. The kennel license may be issued by the City Council by resolution after a public hearing is held. Kennel licenses shall expire on June 30 of each year. b. License fee: The annual license fee for dog kennels shall be established by resolution of the City Council. The license fees are due September 1 of each year. c. Cleanliness and order; nuisance declared: Kennels and the premises around the kennel shall be kept in a clean, quiet, orderly and sanitary condition so as not to constitute a nuisance as defined in Chapter 607 of this Code and in Minnesota Statutes, Section 561.01. In determining whether a nuisance exists, consideration shall be given to the kennel’s location, location of other residences, and general character of the neighborhood. d. Revocation: A kennel license may be revoked by action of the Council for just cause after providing the license holder with an opportunity to be heard. Just cause shall include any violations of this Code reasonably related to the operation of the dog kennel and/or treatment of animals. e. Persons Ineligible: No license shall be granted to an applicant who has mistreated animals or has been convicted for animal cruelty offenses. f. Renewals: Annual renewals of kennel licenses may be approved administratively unless the City has received substantiated complaints related to the dog kennel or any code violations have occurred at the dog kennel during the previous year. SECTION 2. The City Council of the City of Mounds View hereby amends Title 700, Chapter 701, Section 701.06 of the Mounds View Municipal Code by adding the double-underlined material and deleting the stricken material as follows: 701.06: RAISING/KEEPING DOMESTIC OR FARM ANIMALS: Subd. 1. Nuisance Declared: It is hereby declared to be unlawful and a public nuisance affecting the public peace, safety, and welfare for an owner or resident within the City to keep or raise any farm animal, except as noted below. a. Residents on properties zoned R-1, Single Family Residential, may be permitted to keep and raise up to eight (8) chickens and/or ducks under the following conditions and restrictions: 543142v2 DTA MU210-54 Ordinance 953 5 (1) Residents seeking approval to keep and raise chickens or ducks shall submit an application, application fee, site plan and coop specifications incorporating generally held best practices. Initial applications shall be considered by the City Council after holding a public hearing on the matter. Renewals may be approved administratively unless the City has received substantiated complaints or related violations have been noted during the previous year. (2) Coop structures shall be set back at least twenty (20) feet from property lines and the subject home; coops shall only be located in rear yards. New coops shall require a permit and shall be considered an accessory building subject to all other conditions referenced in Section 1106.06 of the Zoning Code. (3) Coops and the subject property shall be maintained in a clean and sanitary manner and may be subject to City inspection as may be deemed necessary. (4) Backyard areas within which chicken or ducks are allowed to roam shall be fenced to confine said birdschickens or ducks to subject property. (5) Neither roosters nor drakes shall be permitted. (6) No slaughtering or beheading shall be permitted on the subject premises. (7) Food shall be stored in watertight, rodent-proof container. (8) Permits are valid for one yearexpire on December 31 of each year and shall be renewed annually. Permits may be revoked or denied by the City Council based on cruelty, negligence or nuisance. In such event, the property owner shall be provided with an opportunity to be heard. Subd. 2. Restrictions: It is unlawful for a dog owner to keep or raise more than two (2) dogs except as allowed under 701.04(h) “Kennels.” It is unlawful to keep or raise a domestic or farm animal if it creates a public nuisance and adversely affects the public health and welfare. Subd. 3. Investigation of Complaints: It shall be the duty of the Community Service Officer and the Police Department to investigate all complaints submitted to the Council regarding domestic or farm animals. After investigation, if there appears to be a violation of this Chapter, the investigating officer shall issue a citation. SECTION 3. The City Council of the City of Mounds View hereby amends Title 700, Chapter 702 of the Mounds View Municipal Code by deleting Section 702.01 in its entirety and replacing it with the double-underlined material as follows: 702.01: MISDEMEANORS: The acts, types and causes of behavior enumerated in this Section constitute misdemeanors and are punishable as provided in Section 104.01 of this Code. 543142v2 DTA MU210-54 Ordinance 953 6 Subd. 1. Crimes Against Public Safety and Health: a. Discharging or Use of Weapons. (1) No person shall discharge a weapon in any public place in the city, unless otherwise permitted by this Section. (2) No person shall carry, possess, or display, in a manner intended to cause bodily injury or cause fear of bodily injury, any edged object or instrument such as a knife, sword, machete, or any other device that is designed to or is capable of cutting, slashing, or stabbing or otherwise causing bodily injury within the City. (3) Definitions: (a) WEAPON. Includes: (i). Any “dangerous weapon” as the same is defined by M.S. § 609.02, subd. 6, as it may be amended from time to time; (ii). Any BB gun or any air gun or any air rifle or any air soft gun or any other device that is designed to or is capable of firing or ejecting any type of a projectile by any means; or (iii). Any sling shot, wrist rocket, bow, crossbow, or any other device that is designed to or is capable of propelling any type of object by any means. (b) PUBLIC PLACE. Any place in the City of Mounds View, except: a person’s residence; a person’s place of business if owned or managed by the person; a permitted gun show; or a place of business permitted for the buying or selling of weapons. (4) Exceptions. This section shall not prohibit the following: (a) any law enforcement officer, any member of the armed forces of the Minnesota National Guard or of the United States of America, or any other person lawfully permitted to possess a weapon, to the extent authorized by permit or law, from discharging a weapon in the city pursuant to their official duty or as allowed by their properly-issued permit. b. It shall be unlawful for any person to enter the water of any lake or public swimming pool within the limits of the City between the hours of ten o’clock (10:00) P.M. and five o’clock (5:00) A.M. SECTION 4. In accordance with Section 3.07 of the City Charter, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: 543142v2 DTA MU210-54 Ordinance 953 7 On November 26, 2018, the City Council adopted Ordinance 953 that amends Title 700, Chapters 701 and 702 of the Mounds View City Code. The purpose of the amendment was to modify certain city police regulations, remove outdated code language and unnecessary references and provisions that are regulated by state statute, and update the code to conform to current practices. A printed copy of the ordinance is available for inspection during regular business hours at Mounds View City Hall and is available on line at the City’s web site located at www.moundsviewmn.org. SECTION 5. This ordinance shall take effect and be in force 30 days from and after its passage and publication, in accordance with Section 3.09 of the City Charter. Introduction and First Reading by the Mounds View City Council on November 12, 2018. Second Reading and Adoption by the Mounds View City Council on December 10, 2018. Publication Date: December 21, 2018. Carol A. Mueller, Mayor Attest: ______________________________ Nyle Zikmund City Administrator (seal) 547340v2 MU205-47 Item No 8H Meeting Date: December 10, 2018 Type of Business: CB Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Business Development Coordinator Item Title/Subject: Resolution No. 9053 Approving Loan Documents, Master Subordination Agreement, and Master Disbursement Agreement Related to the Local Housing Incentives Account Program (LHIA) Loan and the Boulevard Apartment Project Introduction: At the request of Boulevard Apartments, Limited Partnership (MWF), the City applied for and received grant funds in the amount of $500,000 under the Metropolitan Council’s Local Housing Incentives Programs (the “LHIA Grant”). Pursuant to the terms of the LHIA Grant Agreement, the City will loan the LHIA Grant funds to the developer to help finance the costs associated with the Boulevard apartment project. Discussion: The City intends to loan the LHIA Grant funds to the developer, and therefore must approve and execute certain forms and loan documents. These documents are attached and include a mortgage, promissory note, loan agreement, master subordination agreement, and master disbursement agreement. Resolution No. 9053 is also attached, which effectively approves all of the aforementioned documents. The City’s legal consultant, Kennedy & Graven, has reviewed each document and will be present at the City Council meeting to further discuss and answer questions pertaining to the documents. It is recommended that the City adopt Resolution No. 9053. Recommendation: Consider Resolution No. 9053 for approval. Respectfully submitted, ________________________ Brian Beeman Business Development Coordinator Attachments: 1) Resolution No. 9053 2) Mortgage 3) Promissory Note 4) LHIA Loan Agreement 5) Master Subordination Agreement 6) Master Disbursement Agreement 1 RESOLUTION NO. 9053 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING LOAN DOCUMENTS, MASTER SUBORDINATION AGREEMENT, AND MASTER DISBURSEMENT AGREEMENT RELATED TO THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM (LHIA) LOAN AND THE BOULEVARD APARTMENT PROJECT WHEREAS, the Mounds View Economic Development Authority (the “Authority”) and Boulevard Apartments, Limited Partnership, a Minnesota limited partnership (“Boulevard”), have entered into that certain Contract for Private Development setting forth the terms and conditions regarding a 60-unit affordable housing facility (the “Project”) on certain real property within Ramsey County, Minnesota and platted as Boulevard (the “Property”); and WHEREAS, the City of Mounds View (the “City”) has received grant funds in the amount of $500,000 from the Metropolitan Council under its Local Housing Incentives Account Program (“LHIA Grant”), in accordance with the terms of that certain Metropolitan Livable Communities Act Grant Agreement; and WHEREAS, the City desires to loan proceeds of the LHIA Grant in the amount of $500,000 to Boulevard to finance Boulevard’s costs for acquisition of the Property and construction of the Project (the “LHIA Loan”); and WHEREAS, payment of the LHIA Loan will be secured via certain loan documents, including a loan agreement between the City and Boulevard and mortgage on the Property, and it has been requested that the City agree to subordinate the LHIA Loan, in accordance with a Master Subordination Agreement and Estoppel Certificate, and agree to a certain order of priority for disbursement of Project funds, in accordance with a Master Disbursement Agreement; and WHEREAS , there has been presented before the City Council a loan agreement, mortgage, and promissory note related to the LHIA Loan (collectively, the “Loan Documents”), a Master Subordination Agreement and Estoppel Certificate, and a Master Disbursement Agreement; and WHEREAS , the City Council has reviewed the Loan documents, the Master Subordination Agreement, and the Master Disbursement Agreement and finds the execution of the same are in the best interests of the City and of its residents. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View, Minnesota as follows: 2 1. That the Loan Agreement between the City of Mounds View and Boulevard Apartments, Limited Partnership for the Metropolitan Council Local Housing Incentives Account – Metropolitan Livable Communities Act, and the corresponding mortgage and promissory note, are hereby approved, subject to modifications that do not alter the substance of the transaction and that are approved by the City Attorney. 2. That the Master Subordination Agreement and Estoppel Certificate is hereby approved, subject to modifications that do not alter the substance of the transaction and that are approved by the City Attorney. 3. That the Master Disbursement Agreement is hereby approved, subject to modifications that do not alter the substance of the transaction and that are approved by the City Attorney. 4. That the Mayor and the City Administrator are hereby authorized and directed to execute all appropriate documents, including, but not limited to, the above stated documents, to effectuate the transactions contemplated by this Resolution. Adopted by the City Council this 10th day of December, 2018. ________________________ Carol A. Mueller, Mayor ATTEST: _______________________________ Nyle Zikmund, City Administrator MORTGAGE THIS MORTGAGE (the “Mortgage”) is made effective as of __________, 2018, by BOULEVARD APARTMENTS, LIMITED PARTNERSHIP, a Minnesota limited partnership (“Mortgagor”), in favor of the CITY OF MOUNDS VIEW, a Minnesota municipal corporation (“Mortgagee”). W I T N E S E T H: WHEREAS, Mortgagee has agreed to make a loan in the amount of $500,000 (the “Loan”) pursuant to that certain Promissory Note of even date herewith executed by Mortgagor and made payable in the original principal amount of $500,000 (the “Note”); and WHEREAS, Mortgagor will secure the Note by this Mortgage. NOW THEREFORE, THIS MORTGAGE FURTHER WITNESSETH, that in consideration of the aggregate sum of $500,000 (the “Mortgage Amount”) made available to Mortgagor and other good and lawful consideration, the receipt and sufficiency of which are hereby acknowledged, and to secure, and as security for, the payment of the principal of and other premiums, penalties and charges on the Note and the performance and observance by Mortgagor of all of the covenants, agreements, representations, warranties and conditions contained herein, Mortgagor hereby mortgages, bargains and conveys, and grants a security interest to Mortgagee forever, in and to the tract(s) of land legally described in Exhibit A attached hereto and made a part hereof (hereinafter referred to as the “Land”); Together with (a) all of the buildings, structures and other improvements now standing or at any time hereafter constructed or placed upon the Land; (b) all hereditaments, easements, rights, privileges and appurtenances now or hereafter belonging, attached or in any way pertaining to the Land or to any building, structure or improvement now or hereafter located thereon; (c) the immediate and continuing right to receive and collect all rents, income, issues and profits now due and which may hereafter become due under or by virtue of any lease or agreement (oral or written) for the leasing, subleasing, use or occupancy of all or part of the Land now, heretofore or hereafter made or agreed to by Mortgagor; and (d) all insurance and other proceeds of, and all condemnation awards with respect to, the foregoing (all of the foregoing is hereinafter collectively referred to as the “Mortgaged Property”) subject to the rights of all holders of mortgages with priority over the Mortgage. The filing of this Mortgage shall constitute a fixture filing in the office where it is filed and a carbon, photographic or other reproduction of this document may also be filed as a financing statement: Name and Address of Boulevard Apartments, Limited Partnership Debtor and Record 7645 Lyndale Avenue South Owner of Real Estate Minneapolis, Minnesota 55423 Description of the Types See above (or items) of property covered by this financing statement: Description of real estate See Exhibit A attached hereto. to which all or a part of the collateral is attached or upon which it is located: Some of the above described collateral is or is to become fixtures upon or minerals and mineral rights located upon the real estate described on Exhibit A, and this financing statement is to be filed for record in the public real estate records. AND MORTGAGOR, for itself and its successors and assigns, does covenant, that it is lawfully seized of the Mortgaged Property and has good right to sell and convey the same; that the Mortgaged Property is free from all encumbrances except as may be further stated in this Mortgage; and that Mortgagor will WARRANT AND DEFEND the title to the same against all lawful claims not specifically excepted in this Mortgage. PROVIDED, NEVERTHELESS, that if Mortgagor shall pay the principal sum equal to the Mortgage Amount and any other sums due and owing under the Note and shall also pay or cause to be paid all other sums as may be advanced by the Mortgagee in accordance with this Mortgage either to protect the lien of this Mortgage, or for any other purpose, and shall also keep and perform all and singular the covenants herein required on the part of Mortgagor to be kept and performed (the Note and all such sums, and such covenants herein collectively referred to as the “Indebtedness Secured Hereby”), then this Mortgage shall be null and void, in which event the Mortgagee will execute and deliver in form suitable for recording at Mortgagor’s expense a full satisfaction of this Mortgage; otherwise this Mortgage shall remain in full force and effect. ARTICLE I. GENERAL COVENANTS, AGREEMENTS, WARRANTIES SECTION 1.1. OBSERVANCE OF COVENANTS. Mortgagor shall duly and punctually perform and observe all of the covenants, agreements and provisions contained herein. Mortgagor shall pay the outstanding principal balance of the Indebtedness Secured Hereby and any other amounts due under the Note in accordance with the terms of the Note. SECTION 1.2. MAINTENANCE; REPAIRS. Mortgagor shall keep and maintain the Mortgaged Property in good condition, subject to ordinary wear and tear, free from any waste or misuse, and will comply with all requirements of law, municipal ordinances and regulations, restrictions and covenants affecting the Mortgaged Property and its use. SECTION 1.3. PAYMENT OF TAXES AND ASSESSMENTS. Mortgagor shall, before any penalty attaches thereto, pay or cause to be paid all taxes, assessments and levies of every nature heretofore or hereafter assessed against the Mortgaged Property and upon demand will furnish receipted bills evidencing such payment. Nothing in this Section 1.3 shall require the payment or discharge of any obligations imposed upon Mortgagor by this Section so long as Mortgagor shall diligently and in good faith and at their own expense contest the same or the validity thereof by appropriate legal proceeding which shall operate to prevent the collection thereof or other realization thereon and the sale or forfeiture of the Mortgaged Property or any part thereof to satisfy the same; provided, however, that during such contest Mortgagor shall provide security assuring the discharge of Mortgagor’s obligation under this Section and of any additional charge, penalty or expense arising from or incurred as a result of such contest; and provided further, however, that if at any time payment of any obligation imposed upon Mortgagor by this Section shall become necessary to prevent the delivery of a tax deed conveying the Land or any portion thereof because of nonpayment, then Mortgagor shall pay the same in sufficient time to prevent the delivery of such tax deed. SECTION 1.4. LIENS. Except for liens and encumbrances, if any, listed on Exhibit B attached hereto or consented to in writing by or granted to the Mortgagee (“Permitted Encumbrances”), Mortgagor will keep the Mortgaged Property free from all liens (other than the liens hereof and liens for taxes, assessments not yet due and payable) and encumbrances of every nature whatsoever, including without limitation secondary or subsequent mortgage liens, heretofore or hereafter arising, Mortgagor will pay and procure the release of any such lien or encumbrances. Nothing in this Section 1.4 shall require the payment or discharge of any obligations imposed upon Mortgagor by this Section so long as Mortgagor shall diligently and in good faith and at its own expense contest the same or the validity thereof by appropriate legal proceeding which shall operate to prevent the collection thereof or other realization thereon and the sale or forfeiture of the Mortgaged Property or any part thereof to satisfy the same; provided, however, that during such contest Mortgagor shall, at the reasonable request of Mortgagee, provide security satisfactory to the Mortgagee, assuring the discharge of Mortgagor’s obligation under this Section and of any additional charge, penalty or expense arising from or incurred as a result of such contest; and provided further, however, that if at any time payment of any obligation imposed upon Mortgagor by this Section shall become necessary to prevent the delivery of a tax deed conveying the Land or any portion thereof because of nonpayment, or any other forfeiture or involuntary transfer of Mortgagor’s interest in any of the Mortgaged Property, then Mortgagor shall pay the same in sufficient time to prevent the delivery of such tax deed, forfeiture or involuntary transfer. SECTION 1.5. COMPLIANCE WITH LAW. Mortgagor will promptly comply with all present and future laws, ordinances, rules and regulations of any governmental authority affecting the Mortgaged Property unless the same is being diligently contested by Mortgagor in good faith and by proper proceedings. SECTION 1.6. RIGHT OF MORTGAGEE TO ENTER. Mortgagor will permit Mortgagee and its agents to enter, and to authorize others to enter, upon any or all of the Land, at any time and from time to time after reasonable prior notice (except in the case of an emergency, as determined by the Mortgagee in its reasonable discretion, in which case no notice shall be required), during normal business hours, to inspect the Mortgaged Property, to perform or observe any covenants, conditions or terms hereunder which Mortgagor shall fail to perform, meet or comply with, or for any other purpose in connection with the protection or preservation of Mortgagee’s security, without thereby becoming liable to Mortgagor or any person in possession under the Mortgage. SECTION 1.7. RIGHT OF THE MORTGAGEE TO PERFORM. If Mortgagor fails to pay all and singular any taxes, assessments, levies or other similar charges or encumbrances heretofore or hereafter assessed against the Mortgaged Property or fails to obtain the release of any lien or encumbrance (other than a Permitted Encumbrance) of any nature heretofore or hereafter arising upon the Mortgaged Property or fails to perform any other covenants and agreements contained in this Mortgage or if any action or proceeding is commenced which adversely affects or questions the title to or possession of the Mortgaged Property or the interest of Mortgagor or Mortgagee therein, then the Mortgagee, at the Mortgagee’s option, without notice to Mortgagor, may perform such covenants and agreements, investigate and defend against such action or proceeding, and take such other action as the Mortgagee deems necessary to protect the Mortgagee’s interest. Any amounts disbursed by the Mortgagee pursuant to this Section 1.7, including without limitation court costs and expenses and reasonable attorneys’ fees, with interest thereon, shall become additional indebtedness of Mortgagor, shall accrue interest at 8% per annum and shall be secured by this Mortgage. SECTION 1.8. FURTHER ASSURANCES. At any time and from time to time, upon request, Mortgagor will make, execute and deliver or cause to be made, executed and delivered, any and all other further instruments, certificates and other documents as may, in the reasonable opinion of Mortgagee, be necessary or desirable in order to effectuate, complete or perfect, or to continue and preserve, the obligations of Mortgagor hereunder and under the Note and the mortgage and security interest granted by this Mortgage. SECTION 1.9. EXPENSES. Mortgagor will pay for all reasonable attorney’s fees, costs and expenses incurred by Mortgagee in any legal proceeding or dispute of any kind in which Mortgagee is made a part, or appears as party plaintiff or defendant, affecting the Indebtedness Secured Hereby, this Mortgage, the interest created herein or the Mortgaged Property, including but not limited to the exercise of the power of sale set forth in this Mortgage, any condemnation action involving the Mortgaged Property or any action to protect the security. SECTION 1.10. SUBORDINATION TO FUTURE INDEBTEDNESS. Mortgagee expressly agrees that its rights under the Mortgage shall be subordinate to the refinancing of any loan which is secured by a mortgage identified as a Permitted Encumbrance on Exhibit B attached hereto; provided, however, that the foregoing shall not apply in the case of a refinance transaction under which the Mortgagor receives proceeds of the new financing. Recording of this Mortgage will evidence Mortgagee’s acceptance of this provision. SECTION 1.11. GRANT AGREEMENT. Mortgagor shall duly and punctually perform and observe all of the Mortgagee’s and other applicable covenants, agreements and provisions of that certain Metropolitan Livable Communities Act Grant Agreement dated as of [__________, 2018] by and between Mortgagee and the Metropolitan Council, having an end date of December 31, 2020. ARTICLE II. INSURANCE, CONDEMNATION AND USE OF PROCEEDS SECTION 2.1. INSURANCE. Until the Indebtedness Secured Hereby has been paid in full, Mortgagor shall keep any buildings, structures, fixtures and other improvements now existing or hereafter erected on the Land insured against loss by fire, vandalism, and malicious mischief, perils of extended coverage, and such other hazards, casualties and contingencies, in an amount not less than the greater of (a) the full replacement cost thereof and (b) the full insurable value thereof, which in no event shall be less than the amount of Indebtedness Secured Hereby, and naming the Mortgagee as loss payee. Mortgagor shall also maintain comprehensive general public liability insurance providing for limits of coverage of not less than $1,000,000 per occurrence, and $2,000,000 combined single limit coverage, and naming the Mortgagee as an additional insured. SECTION 2.2. CONDEMNATION. Mortgagor shall give immediate written notice of the actual or threatened commencement of any proceedings under condemnation or eminent domain affecting all or any part of the Mortgaged Property or any easement therein or appurtenance thereof. Subject to the Permitted Encumbrances, if all or any part of the Mortgaged Property is damaged, taken or acquired, either temporarily or permanently, in any condemnation proceeding, or by exercise of the right of eminent domain, the amount of any award or other payment for such taking, acquisition or damages made in consideration thereof, to the extent of the full amount of the remaining unpaid indebtedness secured by this instrument, is hereby assigned to Mortgagee, who is empowered to collect and receive the same and to give proper receipts therefore in the name of Mortgagor and the same shall be paid forthwith to Mortgagee, to be applied to the Indebtedness Secured Hereby. Mortgagee’s rights under this Section 2.2 shall be limited by the rights of senior lenders to Mortgagor. Any condemnation proceeds remaining of payment of all outstanding loans to Mortgagor shall be returned to Mortgagor. SECTION 2.3. RESTORATION. Notwithstanding Section 2.1 or 2.2 of this Mortgage, Mortgagee shall not exercise Mortgagee’s option to apply insurance or condemnation proceeds to the payment of the Indebtedness Secured Hereby but shall make such proceeds available for the restoration and repair of the Mortgaged Property if all of the following conditions are met: (a) Mortgagor is not in breach or default of any provision of this Mortgage or the Note, or Mortgagor’s breach or default has been cured with the applicable cure period, and (b) Mortgagee determines that there will be sufficient funds, through insurance or condemnation proceeds and contributions by Mortgagor, to restore and repair the Mortgaged Property to a condition as close as reasonably possible to what previously existed, due consideration given to any portion of the Mortgaged Property taken through eminent domain or condemnation. ARTICLE III. EVENT OF DEFAULT; REMEDIES SECTION 3.1. EVENT 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) Failure by Borrower to make any payment due within thirty (30) days after such payment becomes due and payable; or (b) Failure by Borrower to substantially observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement, and such failure is not cured within ninety (90) days after Lender notifies Borrower in writing of such failure; provided, however, that if Borrower has commenced the cure of such default within ninety (90) days, then such ninety- (90-) day period shall be extended so long as Borrower is diligently pursuing the cure; or (c) Borrower shall: i. file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended, or under any similar federal or state law; or ii. make an assignment for the benefit of its creditors; or iii. admit in writing its inability to pay its debts generally as they become due; or iv. be adjudicated a bankrupt or insolvent; or if a petition or answer proposing the adjudication of Borrower as a bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within ninety (90) days after the filing thereof; or a receiver, trustee or liquidator of Borrower or of the Project, or part thereof, shall be appointed in any proceeding brought against Borrower, and shall not be discharged within ninety (90) days after such appointment, or if Borrower shall consent to or acquiesce in such appointment. SECTION 3.2. REMEDIES. Subject to the rights of any senior lenders to Mortgagor and except as provided in that certain Master Subordination Agreement and Estoppel Certificate by and among Mortgagor, Mortgagee, the Ramsey County Housing and Redevelopment Authority, Mounds View Group LLC, and the Minnesota Housing Finance Agency, as amended from time to time, upon the occurrence of an Event of Default or at any time thereafter, Mortgagee may, at its option, exercise any and all of the following rights and remedies (and any other rights and remedies available to it under applicable law or any document related hereto): (a) Mortgagee may declare immediately due and payable all indebtedness secured by this Mortgage and the same shall thereupon be immediately due and payable; (b) Mortgagee shall be entitled as a matter of right to the immediate appointment of a receiver for the Mortgaged Property by a court of competent jurisdiction, without regard to (i) the then current fair market value of the Mortgaged Property, (ii) whether any waste has occurred on or about the Mortgaged Property, (iii) the solvency or financial condition of Mortgagor or any other party, or (iv) any other event, occurrence, condition or factor which may limit or restrict Mortgagee’s absolute right to the appointment of such a receiver; (c) Mortgagee may foreclose this Mortgage by action or (to the extent permitted by Minnesota law) advertisement upon written notice thereof to Mortgagor, and Mortgagor hereby authorizes the Mortgagee to do so, power being herein expressly granted to sell the Mortgaged Property at public auction without any prior hearing thereof and to convey the same to the purchaser, in fee simple, pursuant to the statutes of Minnesota in such case made and provided and, out of the proceeds arising from such sale, to pay all Indebtedness Secured Hereby, and all legal costs and charges of such foreclosure and the reasonable attorney’s fees; and (d) Mortgagee may exercise any of the remedies made available to a secured party under the Uniform Commercial Code in effect in the State of Minnesota, or other applicable law, with respect to any of the Mortgaged Property which constitutes personal property, including without limitation the right to take possession thereof, proceeding without judicial process or by judicial process (without a prior hearing or notice thereof, which Mortgagor hereby waives), and the right to sell, lease or otherwise dispose of or use any or all of such personal property. Mortgagee may require Mortgagor to assemble such personal property and make it available to Mortgagee at a place designated by Mortgagee which is reasonably convenient to both Mortgagor and Mortgagee. If notice to Mortgagor of any intended disposition of any of the Mortgaged Property constituting personal property or any other intended action is required by law in a particular instance, such notice shall be deemed commercially reasonable if given at least thirty (30) calendar days prior to the date of intended disposition or other action. In the event of a sale under this Mortgage, whether by virtue of judicial proceedings or otherwise, the Mortgaged Property may, at the option of Mortgagee, be sold as one parcel and as an entirety or in such parcels, manner and order as Mortgagee in its sole discretion may elect. Any proceeds following a foreclosure remaining of payment of all outstanding loans to Mortgagor shall be returned to Mortgagor. Wells Fargo Affordable Housing Community Development Corporation, the investor limited partner of Mortgagor (the “Investor Limited Partner”), shall have the right, but not the obligation, to cure any Event of Default by Mortgagor under this Mortgage or any default under the Note, and Mortgagee shall accept performance by Investor Limited Partner of any obligation of Mortgagor thereunder as though tendered by Mortgagor itself, provided such performance by Investor Limited Partner has occurred during the applicable cure period, if any, provided to Mortgagor thereunder with respect to such default or Event of Default. SECTION 3.3. PURCHASE OF MORTGAGED PROPERTY. In case of any sale of the Mortgaged Property pursuant to any judgment or decree of any court or otherwise in connection with the enforcement of any of the terms of this Mortgage, Mortgagee, its successors and assigns, may become the purchaser, and for the purpose of making settlement for or payment of the purchase price, shall be entitled to turn in and use the Note and any claims for interest, late charges and prepayment premiums matured and unpaid thereon, together with any other Indebtedness Secured Hereby, if any, in order that there may be credited as paid on the purchase price the sum, or any part thereof, then due under the Note, including principal, late charges and prepayment premiums, if any, thereon, and any other Indebtedness Secured Hereby. ARTICLE IV. MISCELLANEOUS SECTION 4.1. SUCCESSORS AND ASSIGNS. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Mortgagor and Mortgagee, including among Mortgagor’s assigns any purchasers or transferees of the Mortgaged Property. SECTION 4.2. NON-RECOURSE. Neither the Mortgagor, nor any partner, officer, director, employee or agent of Mortgagor, shall have any personal liability for the Mortgagor's obligations hereunder, it being recognized by Mortgagee that the obligations of the Mortgagor hereunder are non-recourse obligations and that the remedies of Mortgagee are limited to the security provided in connection with this Mortgage. SECTION 4.3. TAX CREDIT REQUIREMENTS. Notwithstanding any provision in the Mortgage or other documents evidencing the Loan, the Mortgagee acknowledges that the Loan and the Mortgage is subordinate to the requirements of Section 42(h)(6)(E) of the Internal Revenue Code pertaining to limitations on eviction of tenants and increases in rent for the three- year period following foreclosure. SECTION 4.4. HEADINGS. The headings of the sections contained herein are for convenience only and are not to be construed to be a part of or limit or affect the terms hereof. SECTION 4.5. TRANSFER; REMOVAL; AMENDMENT. Notwithstanding anything to the contrary contained in this Mortgage or the Note, it shall not constitute an Event of Default under this Mortgage or a default under the Note and the consent of Mortgagee is not required, for: (a) the transfer of the limited partner interests in Mortgagor owned by the Investor Limited Partner to an affiliate of Investor Limited Partner in accordance with the terms of Mortgagor’s partnership agreement, as such partnership agreement may be amended from time to time (the “Partnership Agreement”), (b) the transfer of the ownership interests in Investor Limited Partner, so long as the managing member or general partner of Investor Limited Partner is an affiliate of Investor Limited Partner, (c) the removal of the general partner of Mortgagor for cause in accordance with the Partnership Agreement by Investor Limited Partner and the replacement of the general partner with an affiliate of Investor Limited Partner, or (d) an amendment of the Partnership Agreement (i) resulting from transfers as described above or (ii) which does not materially and adversely affect the ability of Mortgagor to perform Mortgagor’s obligations under this Mortgage and the Note. Mortgagee further agrees that if its consent is required hereunder as a condition to (a) the transfer of the limited partner interests in Mortgagor owned by the Investor Limited Partner to a party that is not an affiliate of Investor Limited Partner, or (b) the replacement of the general partner of Mortgagor with a party that is not an affiliate of Investor Limited Partner, such consent shall not be unreasonably withheld, conditioned, or delayed. SECTION 4.6. NOTICE. Any notices to be delivered hereunder shall be delivered to the addresses of the appropriate parties as set forth in that certain Loan Agreement by and between the Mortgagor and Mortgagee dated even herewith (the “Loan Agreement”). THIS MORTGAGE IS EXEMPT FROM MORTGAGE REGISTRATION TAX IMPOSED BY MINNESOTA STATUTES, §287.035, PURSUANT TO MINNESOTA STATUTES, § 287.04, BECAUSE THE PRINCIPAL AMOUNT OF THE ORIGINAL MORTGAGE LOAN REFERRED TO HEREIN IS MADE UNDER A LOW AND MODERATE INCOME OR OTHER AFFORDABLE HOUSING PROGRAM AND THE MORTGAGEE IS THE CITY OF MOUNDS VIEW. [The remainder of this page has been left blank intentionally.] IN WITNESS WHEREOF, Mortgagor has caused this Mortgage to be duly executed and delivered to Mortgagee as of the day and year first above written. MORTGAGOR: BOULEVARD APARTMENTS, LIMITED PARTNERSHIP, a Minnesota limited partnership By: Mounds View Group LLC Its: General Partner By: Christopher J. Stokka Its Chief Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ______ day of __________, 2018, by Christopher J. Stokka, the Chief Manager of Mounds View Group LLC, a Minnesota limited liability company, the general partner of Boulevard Apartments, Limited Partnership, a Minnesota limited partnership, on behalf of such limited liability company and limited partnership. __________________________________ Notary Public 15867666v3 THIS INSTRUMENT WAS DRAFTED BY: Winthrop & Weinstine P.A. (SWA) Capella Tower, Suite 3500 225 South Sixth Street Minneapolis, MN 55402 (612) 604-6400 537810v3 DTA MU205-47 EXHIBIT A Legal Description 537810v3 DTA MU205-47 EXHIBIT B Permitted Encumbrances 1. A. Real estate taxes payable in 2018 and thereafter, a lien not yet due and payable. B. Special assessments hereafter levied. 2. INSERT 537807v2 DTA MU205-47 PROMISSORY NOTE $500,000.00 __________, 2018 FOR VALUE RECEIVED, the undersigned, BOULEVARD APARTMENTS, LIMITED PARTNERSHIP, a Minnesota limited partnership (“Borrower”), hereby promises to pay to the order of the CITY OF MOUNDS VIEW, a Minnesota municipal corporation, its successors, or assigns (“Lender”), at 2401 Mounds View Boulevard, Mounds View, Minnesota 55112, or at such other place as the Lender from time to time may designate in writing, the principal sum of Five Hundred Thousand and no/100 Dollars ($500,000.00) with interest at the rate of zero percent 0% per annum. Said sum was made available to Borrower to enable Borrower to acquire and construct a 60-unit affordable rental housing project located at 7980 Groveland Road, Mounds View, Minnesota 55112. The principal balance shall be due and payable in full on December 31, 2060. This Note is secured by a Mortgage of even date herewith (the “Mortgage”) and such Mortgage describes the rights of the Lender as to the acceleration of the indebtedness evidenced by this Note. The Borrower shall have the right of prepayment either in full or in partial payments, which right shall be without penalty. Upon the occurrence of an Event of Default (as defined in the Mortgage or the Loan Agreement), then the full amount of the balance of principal and interest unpaid upon this Note shall at once become due and payable at the option of the Lender without demand or notice, said demand or notice being expressly waived, and failure to exercise said option at any time shall not constitute a waiver of the right to exercise the same at any subsequent time. Neither the Borrower nor any of its partners shall have any personal liability for the payment of any sums due under this Note or the performance of any obligations of the Borrower hereunder. In any action to realize upon any security furnished under any instrument now or hereafter securing the indebtedness evidenced by this Note or to collect any amounts payable hereunder, neither the Borrower nor any partner of the Borrower or any partner, officer, director, shareholder, employee or agent of any partner of the Borrower shall have any personal liability for the repayment of this Note and no judgment for the repayment of this Note or interest thereon or any other sums due under this Note or for damages for failure to perform any obligations owed to the Borrower hereunder will be enforced against the Borrower personally or against any property of the Borrower other than the security furnished under the Mortgage or any other instrument securing this Note. This Note shall be governed by and construed in accordance with the laws of the State of Minnesota. Wells Fargo Affordable Housing Community Development Corporation, the investor limited partner of Borrower and its successors and assigns (the “Investor Limited Partner”), shall have the right, but not the obligation, to cure any default or Event of Default under this Note or the Mortgage, and Lender shall accept performance by the Investor Limited Partner of any obligation of Borrower thereunder as though tendered by Borrower itself, provided such performance by the - 2 - 537807v2 DTA MU205-47 Investor Limited Partner has occurred during the applicable cure period, if any, provided to Borrower thereunder with respect to such default or Event of Default. Any notices required to be given under this Note shall be deemed given when deposited in the United States mail, postage prepaid, addressed to the recipient or to the record successor thereof at the address designated herein. A copy of any written notice under this Note given to Borrower by Lender will be delivered to the Investor Limited Partner at the following address as and when such notice is given to Borrower: If to the Investor Limited Partner: Wells Fargo Affordable Housing Community Development Corporation MAC D1053-170 301 South College Street, 17th Floor Charlotte, NC 28202-6000 Attention: Director of Asset Management with copies to: Joel Hjelmaas, Counsel Wells Fargo Bank, N.A. MAC X2401-06T 1 Home Campus, 6th Floor Des Moines, IA 50328-0001 and Josephine Lo Pillsbury Winthrop Shaw Pittman LLP Two Houston Center 909 Fannin, Suite 2000 Houston, TX 77010-1028 The provisions of this Note shall be binding upon the Borrower and its successors or assigns. As evidenced by its acceptance of this Note, Lender represents that, to the best of its knowledge, the funds to be loaned to Borrower pursuant to this Note have not and will not be funded or subsidized, in whole or in part, directly or indirectly, by the proceeds of any obligation the interest on which is exempt from taxes under Section 103 of the Internal Revenue Code of 1986, as amended. [The remainder of this page has been left blank intentionally.] - 3 - 537807v2 DTA MU205-47 IN WITNESS WHEREOF, this Promissory Note has been duly executed by the Borrower as of the day and year above first written. BOULEVARD APARTMENTS, LIMITED PARTNERSHIP, a Minnesota limited partnership By: Mounds View Group LLC Its: General Partner By: Christopher J. Stokka Its Chief Manager 1 LOAN AGREEMENT THIS LOAN AGREEMENT (this “Agreement”) is made effective as of [__________], 2018, by and between the CITY OF MOUNDS VIEW, MINNESOTA, a Minnesota municipal corporation (the “City”), and BOULEVARD APARTMENTS, LIMITED PARTNERSHIP, a Minnesota limited partnership (the “Borrower”). WITNESSETH: WHEREAS, the City has determined to assist in the financing of the acquisition and construction of the Project (as defined hereunder) by loaning to the Borrower the original principal amount of Five Hundred Thousand and no/100 Dollars ($500,000.00) (the “Loan”), upon the terms and conditions of this Agreement and that certain Promissory Note dated even herewith by the Borrower payable to the order of the City, together with all renewals, extensions, and modifications of the same (the “Note”), the proceeds of which are to be used solely for costs associated with Borrower’s acquisition and construction of that certain 60-unit multifamily housing project in Mounds View, Minnesota to be known as “Boulevard” (the “Project”) pursuant to the eligibility requirements of the Act and the Grant Agreement (both as defined hereunder); and WHEREAS, the City has entered into that certain Metropolitan Livable Communities Act Grant Agreement dated as of [__________, 2018] (the “Grant Agreement”) for Grant No. SG- 10103, a copy of which is attached hereto as Exhibit B, by and between the City and the Metropolitan Council (the “Council”), pursuant to which the Council awarded the City certain funds (the “Grant”) to finance the Loan to the Borrower in consideration for the City’s agreement to include in this Agreement various provisions insuring the Borrower’s compliance with the provisions and requirements of the Act. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I DEFINITIONS Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Act means the Metropolitan Livable Communities Act set forth at Minnesota Statutes Section 473.25 and 473.254, as amended. Agreement means this Loan Agreement, as the same may be from time to time modified, amended or supplemented; City means the City of Mounds View, Minnesota, or any successor to its functions; County means Ramsey County, Minnesota; 2 Borrower means Boulevard Apartments, Limited Partnership, a Minnesota limited partnership, its successors and assigns; Event of Default means any of the events described in Section 5.1 of this Agreement; and Property means the real property (including any improvements thereon) legally described in Exhibit A of this Agreement. ARTICLE II UNDERTAKINGS OF THE CITY Section 2.1 City Loan. (a) Subject to satisfaction of the conditions set forth in Article III and all terms of the Grant Agreement, the City agrees to make the Loan to the Borrower solely from the proceeds of the Grant. (b) The Loan shall occur upon receipt by the City of proceeds of the Grant pursuant to the Grant Agreement and the satisfaction of all conditions thereto capable of being satisfied as of the date hereof as set forth in the Grant Agreement. ARTICLE III UNDERTAKINGS OF THE BORROWER Section 3.1 Terms of the Loan. (a) The Borrower acknowledges that the City is loaning the proceeds of the Grant to the Borrower in the form of the Loan. No interest shall accrue on the principal amount of the Loan. (b) The entire principal balance shall be due and payable in full as provided in the Note. (c) The Borrower agrees to use the proceeds of the Loan solely for eligible costs under the Grant Agreement. Section 3.2 Conditions to Making the Loan. As a condition precedent to the City’s making of the Loan, the Borrower shall (i) deliver to the City an executed original of the Note and the Mortgage; (ii) the City shall have received fully executed copies of the Grant Agreement; (iii) the Borrower shall have complied with all conditions set forth in the Grant Agreement capable of being satisfied as of the date hereof and provided evidence thereof to the City; and (iv) all filing fees for the Mortgage have been (or, in connection with the closing of the Loan, will be) paid by the Borrower. 3 Section 3.3 Disbursement of the Loan Proceeds. The proceeds of the Loan shall be disbursed to the Borrower pursuant to the terms and conditions of the Grant Agreement. The City has no obligation to disburse proceeds of the Loan until it receives proceeds of the Grant from the Council. The City will submit a draw request in the form of a payment request form to the Council on behalf of the Borrower no more frequently than once per month. The City shall, upon its approval of a payment request form, forward the request and supporting invoices to the Council for approval. The Council is the final arbiter of what costs are eligible for reimbursement. The City is not obligated to disburse funds for any Project costs incurred after the Expiration Date (as defined in the Grant Agreement) or any earlier termination, whichever occurs first. Any Loan funds not disbursed prior to the Expiration Date will revert to the Council and the Loan amount will be reduced accordingly. The City shall not be responsible for the content of the draw request. ARTICLE IV BORROWER COVENANTS Section 4.1 Status of Borrower; Transfer of Substantially All Assets. The Borrower represents and agrees that throughout the term of the Note, the Borrower will maintain its existence as a limited partnership and will not wind up or otherwise dispose of all or substantially all of its assets. The Borrower agrees to comply with all applicable federal, state and local laws and regulations governing the Project and funds provided under this Loan Agreement, including but not limited to state and federal Occupational Safety and Health Act Regulations. Section 4.2 Release and Indemnification Covenants. (a) The Borrower releases the City and its governing body members, officers, agents, servants and employees thereof (hereinafter, for purposes of this Section 4.2, the “Indemnified Parties”) from, covenants and agrees that the Indemnified Parties shall not be liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss or damage to property or any injury to or death of any person occurring at or about or resulting from or occurring on the Property. (b) Except for any willful misconduct or gross negligence of the Indemnified Parties, the Borrower agrees to protect and defend the Indemnified Parties, now or forever, and further agrees to hold the Indemnified Parties harmless, defend and indemnify from any liability, changes, damages, losses, expenses, judgments, claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising (i) from any violation of any agreement or condition of this Agreement (except with respect to any suit, action, demand or other proceeding brought 4 by the Borrower against the City to enforce its rights under this Agreement) or (ii) any hazardous substance located in or on the Property. (c) The Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Borrower or its officers, agents, servants or employees or any other person who may be about the Property due to any act of negligence of any person, other than any act of willful misconduct or gross negligence on the part of any such Indemnified Party or its officers, agents, servants or employees. (d) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City, respectively, and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof. (e) The provisions of this Section 4.2 shall survive the termination of this Agreement. Section 4.3 Real Property Taxes. The Borrower shall pay all real property taxes with respect to all parts of the Property owned by it which are payable pursuant to the provisions of any statutory or contractual duty that shall accrue until title to the Property is vested in another person. Section 4.4 Compliance with the Act and the Grant Agreement. The Borrower hereby covenants and agrees that it shall comply with all applicable requirements of the Act and the Grant Agreement. The City hereby covenants and agrees that it shall comply with all applicable requirements of the Grant Agreement. The Borrower must comply with all applicable requirements in the Grant Agreement. A default by the Borrower as the Project Owner (as defined in the Grant Agreement) under the Grant Agreement will constitute noncompliance with this Loan Agreement. If the City finds that there has been a material failure to comply with the provisions of this Loan Agreement, the City may take action to protect its interests, including refusal to disburse additional funds and acceleration of the Loan. If action to correct such default is not taken by the Borrower within ninety (90) calendar days (or such longer period as is reasonably necessary and approved by the City) after being notified by the City, the City may terminate this Loan Agreement. Termination does not alter Borrower’s obligation to repay any Loan funds due to the City as a result of a default under the terms of this Loan Agreement. The City agrees that a cure of an event of default under this Loan Agreement made or tendered by the Borrower’s Investor Limited Partner (as defined herein) or its designee shall be accepted or rejected on the same basis as if such cure was made or tendered by the Borrower and, to the extent accepted, shall be deemed to be a cure by Borrower hereunder. A default by the City of its obligations under the Grant Agreement shall not constitute a default under this Agreement, the Note or any document in connection with the Loan. Notwithstanding any contrary provision of this Loan Agreement, if for any reason (except to the extent caused by the City’s willful misconduct or gross negligence) the 5 Council requires the City to repay any or all of the Grant funds due to the default by the Borrower of its obligations under the Grant Agreement, Borrower unconditionally guarantees that it will repay whatever funds are required to be returned to the Council within ten (10) days of written notification of the Council’s requirement, and, in addition, agrees to pay any and all expenses incurred by the City in enforcing this provision. Borrower hereby expressly and irrevocably waives all defenses in any action brought by the City to enforce this provision based on claims of waiver, release, surrender, alteration or compromise. This provision shall survive expiration or termination of this Loan Agreement. Section 4.5 Data Practices Act. The Borrower shall comply with applicable provisions of the Minnesota Government Data Practices Act, Chapter 13. Section 4.6 Plan. The Borrower shall develop an affirmative fair housing marketing plan. The Borrower shall submit any necessary affirmative fair housing documentation to the City for approval prior to the disbursement of funds. Section 4.7 Access to Records. The Borrower shall furnish all information and reports required hereunder and by the rules and regulations of the City, and to permit access to the Borrower’s books, records and accounts for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. Section 4.8 Affordability Requirements. The Borrower shall comply with Section 2.15 of the Grant Agreement relating to the affordability of the Project. ARTICLE V EVENTS OF DEFAULT Section 5.1 Events of Default Defined. 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) Failure by the Borrower to substantially observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement and such failure is not cured by the Borrower within ninety (90) days after it receives notification of such failure from the City. (b) The Borrower shall: (1) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended, or under any similar federal or state law; or 6 (2) make an assignment for the benefit of its creditors; or (3) admit in writing its inability to pay its debts generally as they become due; or (4) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Borrower as a bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within ninety (90) days after the filing thereof; or a receiver, trustee or liquidator of the Borrower or of the Property, or part thereof, shall be appointed in any proceeding brought against the Borrower, and shall not be discharged within ninety (90) days after such appointment, or if the Borrower shall consent to or acquiesce in such appointment. Wells Fargo Affordable Housing Community Development Corporation, the investor limited partner of Borrower (the “Investor Limited Partner”) shall have the right, but not the obligation, to cure any Event of Default by Borrower under this Agreement or any default under any other Loan Document, and Lender shall accept performance by Investor Limited Partner of any obligation of Borrower thereunder as though tendered by Borrower itself, provided such performance by Investor Limited Partner has occurred during the applicable cure period, if any, provided to Borrower thereunder with respect to such default or Event of Default. Upon the occurrence of any event that would become an Event of Default hereunder if not cured within any applicable cure period set forth herein, Borrower agrees to promptly provide written notice to Lender describing such event and Borrower’s plan for curing the same. Section 5.2 Remedies on Default. Whenever any Event of Default referred to in Section 5.1 of this Agreement occurs and is continuing, the City, as specified below, may take any one or more of the following actions: (a) The City may declare the unpaid principal of the Loan immediately due and payable. (b) The City may exercise its rights and remedies under the Mortgage, dated even herewith, from the Borrower to the City (the “Mortgage”) and proceed against the collateral described therein, subject to the terms and conditions of that certain Master Subordination Agreement and Estoppel Certificate dated even herewith among the Borrower, the City, the Ramsey County Housing and Redevelopment Authority, Mounds View Group LLC, and the Minnesota Housing Finance Agency. (c) The City may suspend its performance under this Agreement until it receives assurances from the Borrower, deemed adequate by the City, that the Borrower will cure its default and continue its performance under this Agreement. (d) The City may cancel and rescind this Agreement. (e) The City may take any action, including legal or administrative action, which may appear necessary or desirable to collect any payments due under this 7 Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Borrower under this Agreement. Section 5.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 5.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 5.5 Agreement to Pay Attorneys’ Fees and Expenses. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Borrower herein contained, the Borrower agrees that it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. ARTICLE VI ADDITIONAL PROVISIONS Section 6.1 Titles of Articles and Sections. Any titles of the several parts, articles and sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 6.2 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (a) in the case of the Borrower, is addressed to or delivered personally to the Borrower at: Boulevard Apartments, Limited Partnership Attention: Chief Manager of Mounds View Group, LLC 7645 Lyndale Avenue South Minneapolis, MN 55423 With copies to: 8 Winthrop & Weinstine, P.A. Attention: Jeffrey J. Koerselman, Esq. 225 South Sixth Street, Suite 3500 Minneapolis, MN 55402 Wells Fargo Affordable Housing Community Development Corporation MAC D1053-170 301 South College Street, 17th Floor Charlotte, North Carolina 28202-6000 Attention: Asset Management Joel Hjelmaas, Counsel Wells Fargo Bank, N.A. MAC X2401-06T 1 Home Campus, 6th Floor Des Moines, IA 50328-0001 and Josephine Lo Pillsbury Winthrop Shaw Pittman LLP Two Houston Center 909 Fannin, Suite 2000 Houston, TX 77010-1028 (b) in the case of the City, is addressed or delivered personally to the City at: City of Mounds View, Minnesota 2401 Mounds View Boulevard Mounds View, MN 55112 Attn: Business Development Coordinator or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Section 6.3 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 6.4 Modification. If the Borrower is requested by the holder of a mortgage or by a prospective holder of a prospective mortgage to amend or supplement this Agreement in any manner whatsoever, the City will, in good faith, consider the request with a view to granting the same unless the City, in its reasonable judgment, concludes that such modification is not in the public interest, or will significantly and undesirably 9 weaken the financial security provided to the interests of the City by the terms and provisions of this Agreement. Section 6.5 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State of Minnesota. Section 6.6 Termination. This Agreement shall terminate on the earlier of December 31, 2060 or the date the Loan is repaid in full. Section 6.7 Tax Credit Requirements. Notwithstanding any provision in the Mortgage or other documents evidencing the Loan, the City acknowledges that the Loan and the Mortgage are subordinate to the requirements of Section 42(h)(6)(E) of the Internal Revenue Code pertaining to limitations on eviction of tenants and increases in rent for the three-year period following foreclosure. [The remainder of this page has been left blank intentionally.] S-1 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. CITY OF MOUNDS VIEW, MINNESOTA By_____________________________ Its Mayor By_____________________________ Its City Administrator BOULEVARD APARTMENTS, LIMITED PARTNERSHIP By: Mounds View Group LLC Its: General Partner By: Christopher J. Stokka Its Chief Manager A-1 537809v3 MU205-47 EXHIBIT A Legal Description of the Property A-2 537809v3 MU205-47 EXHIBIT B Grant Agreement (See attached) Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 1 12/03/2018 (Ver. 11/20/2017) FOR USE BY FILING OFFICER ONLY MASTER SUBORDINATION AGREEMENT AND ESTOPPEL CERTIFICATE THIS MASTER SUBORDINATION AGREEMENT AND ESTOPPEL CERTIFICATE (this “Agreement”) is effective as of the ____ day of ____________, 20___, and entered into among Boulevard Apartments, Limited Partnership, a Minnesota limited partnership (“Borrower”), the Minnesota Housing Finance Agency, a public body corporate and politic of the State of Minnesota (“MHFA”), City of Mounds View, a Minnesota municipal corporation (the “City”), and Ramsey County Housing and Redevelopment Authority, a political subdivision of the State of Minnesota (the “HRA). RECITALS A. Borrower has applied to and obtained certain loans from the other parties to this Agreement and will use the proceeds of the loans and additional equity to fund the acquisition, construction and/or rehabilitation of a multifamily housing development identified as MHFA Development No. 8022 (the “Development”), which will be situated on real property located in the City of Mounds View, County of Ramsey, State of Minnesota, and legally described in Exhibit A attached to this Agreement (the “Property”). B. The following is a listing and description of the loans that Borrower has obtained from the other parties to this Agreement (collectively, the “Loans”), and the repayment of the Loans will be secured by liens on the Property, and a listing of the documents that evidence and secure the repayment of the Loans (collectively, the “Loan Documents”): Description of Loan Amount of Loan Loan Documents Evidencing and Securing Repayment A loan from MHFA through its Bridge Loan Program. $6,980,000.00 Those documents set forth in Exhibit B attached to this Agreement. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 2 12/03/2018 (Ver. 11/20/2017) A loan from MHFA through its HUD Risk-Sharing (Federal Financing Bank) Program. $6,497,000.00 Those documents set forth in Exhibit C attached to this Agreement. A loan from MHFA through its Flexible Financing for Capital Costs Program. $1,636,000.00 Those documents set forth in Exhibit D attached to this Agreement. A loan from the City through the Metropolitan Council Local Housing Incentive Account. A loan from the HRA through its HOME Program $500,000.00 $375,000.00 Those documents set forth in Exhibit E attached to this Agreement. Those documents set forth in Exhibit F attached to this Agreement. . C. The parties intend that the Loans, the corresponding Loan Documents, and other documents referred to in this Agreement and the liens created by the Loan Documents and other documents referred to in this Agreement have a certain order of priority. D. The parties wish to specify how the terms and conditions contained in the Loan Documents will be interpreted in the event of a conflict or inconsistency. NOW, THEREFORE, in consideration of good and valuable consideration, and in further consideration of the parties making and entering into the Loans, the parties to this Agreement agree as follows: 1. Definitions. For the purposes of this Agreement, the definitions set forth above are incorporated into this Section 1 by reference. The following terms have the meanings set out respectively after each term, and its meaning is equally applicable to both the singular and plural forms of the term defined: (a) “Bankruptcy Proceeding” means any bankruptcy, reorganization, insolvency, composition, restructuring, dissolution, liquidation, receivership, assignment for the benefit of creditors, or custodianship action or proceeding under any federal or state law with respect to Borrower, any guarantor of any of the Loan Documents, any of their respective properties, or any of their respective partners, members, officers, directors, or shareholders. (b) “City Loan” means a loan from the City of proceeds of a Local Housing Incentives Account grant from the Metropolitan Council in accordance with a Metropolitan Livable Communities Act Grant Agreement to Borrower in an original principal amount of $500,000.00. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 3 12/03/2018 (Ver. 11/20/2017) (c) “City Loan Documents” means those documents listed in Exhibit E attached to this Agreement which evidence and secure the repayment of the City Loan. (d) “HRA Loan” means a loan from the HRA through its HOME Program to Borrower in an original principal amount of $375,000.00. (e) “HRA Loan Documents” means those documents listed in Exhibit F attached to this Agreement which evidence and secure the repayment of the HRA Loan. (f) “MHFA Bridge Loan” means a loan from MHFA through its Bridge Loan Program to Borrower in an original principal amount of $6,980,000.00. (g) “MHFA Bridge Loan Documents” means those documents listed in Exhibit B attached to this Agreement which evidence and secure the repayment of the MHFA Bridge Loan. (h) “MHFA FFCC Loan” means a loan from MHFA through its Flexible Financing for Capital Costs Program to Borrower in an original principal amount of $1,636,000.00. (i) “MHFA FFCC Loan Documents” means those documents listed in Exhibit D attached to this Agreement which evidence and secure the repayment of the MHFA FFCC Loan. (j) “MHFA HRS FFB Loan” means a loan from MHFA through its HUD Risk-Sharing (Federal Financing Bank) Program to Borrower in an original principal amount of $6,497,000.00. (k) “MHFA HRS FFB Loan Documents” means those documents listed in Exhibit C attached to this Agreement which evidence and secure the repayment of the MHFA HRS FFB Loan. (l) “Permanent Loan Closing” means the date that the MHFA HRS FFB Loan is closed and the MHFA Bridge Loan is paid off in full. 2. Consent to Loans, Liens and Encumbrances. The parties agree and consent to all of the Loans and agree that all of the liens and encumbrances created by the Loan Documents are deemed to be permitted encumbrances under their respective Loan Documents. The parties further agree to execute any and all documents that any party to this Agreement may reasonably request in order to document that the liens and encumbrances are permitted encumbrances under their respective Loan Documents. 3. Use of Loan Documents. The parties agree and consent to the use of the Loan Documents set forth in the attached exhibits in conjunction with the Loan referenced in each exhibit. In addition, each party, as to the Loan Documents that correspond to one of its Loans, does hereby covenant, warrant, consent and agree that (i) the described Loan Documents are all Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 4 12/03/2018 (Ver. 11/20/2017) of the documents that the party has entered into regarding the corresponding Loan, (ii) there are no documents relating to its Loan other than the described Loan Documents for its Loan, (iii) it will not enter into any other document for its Loan that would adversely impact any other party or parties to this Agreement without the prior written consent of the party or parties (excluding documentation of amounts having been advanced by a party for the protection of its security interest or lien priority pursuant to the Loan Documents), (iv) any existing document or documents that may come into existence in the future to which a party is or becomes a party or from which a party obtains a benefit that is different from the benefits that the other parties have received or will receive, and that is not listed in the Loan Documents set forth in this Agreement for the Loan, will be of no force or effect until approved and consented to in writing by all of the parties to this Agreement upon which the document has, or will have, an adverse effect (excluding documentation of amounts having been advanced by a party for the protection of its security interest or lien priority pursuant to the Loan Documents), and upon written approval, the documents will automatically be considered to be included in the exhibit to this Agreement setting forth the Loan Documents for the Loan. The other parties to this Agreement will execute any document that may reasonably be requested in order to include the document in the exhibit. 4. Subordination of Loans and Loan Documents. (a) Loan Priority. Except as specifically provided below, each party agrees to the following priority of the Loan Documents and any and all the liens and encumbrances created by the Loan Documents and subordinates its respective Loan Documents and the liens and encumbrances created by its respective Loan Documents to those Loan Documents and liens and encumbrances created by the Loan Documents that are listed as having a priority over its Loan Documents and the liens and encumbrances created by its respective Loan Documents: Loan Documents and Liens and Encumbrances Created by the Loan Documents Party to the Loan Documents and Holder of Liens and Encumbrances Created by the Loan Documents Order of Priority MHFA Bridge Loan Documents MHFA First MHFA FFCC Loan Documents MHFA Second City Loan Documents City Third HRA Loan Documents HRA Fourth Fifth After the Permanent Loan Closing, except as specifically provided below, each party agrees to the following priority of the Loan Documents and any and all liens and encumbrances created by the Loan Documents. Each party agrees to subordinate its respective Loan Documents and liens and encumbrances created by its respective Loan Documents to those Loan Documents and liens and encumbrances that are listed as having a priority over its Loan Documents and liens and encumbrances created by its respective Loan Documents: Loan Documents and Party to the Loan Documents Order of Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 5 12/03/2018 (Ver. 11/20/2017) Liens and Encumbrances Created by the Loan Documents and Holder of Liens and Encumbrances Created by the Loan Documents Priority MHFA HRS FFB Loan Documents MHFA First MHFA FFCC Loan Documents MHFA Second City Loan Documents City Third HRA Loan Documents HRA Fourth (b) Tax Credit Declaration. The parties acknowledge that the Development is intended to receive the benefits of Low Income Housing Tax Credits (the “Credits”) pursuant to Section 42 of the Internal Revenue Code (“Section 42”) and that it is a condition of the receipt of the Credits that Borrower file a Declaration of Land Use Restrictive Covenants for Low-Income Housing Credits (the “Tax Credit Declaration”) substantially in the form attached to this Agreement as Exhibit G. The parties consent to the terms of the Tax Credit Declaration as required by Section 2(c) of the Tax Credit Declaration and agree that the Tax Credit Declaration is subordinate to each of their Loans and the related Loan Documents, except to the extent required by Section 9(d) of the Tax Credit Declaration (relating to the three-year vacancy control during the extended use period). (c) Use Agreement. The parties acknowledge that the Development is intended to receive a project-based rent assistance subsidy through the Section 811 Project Rental Assistance Demonstration Program (the “811 Subsidy”) and that it is a condition of the receipt of the 811 Subsidy that Borrower file a Use Agreement (the “Use Agreement”) substantially in the form attached hereto as Exhibit H. The parties consent to the terms of the Use Agreement and agree that the Use Agreement is subordinate to each of their Loans and the related Loan Documents. 5. Collection of Payments. The parties agree that MHFA will collect one Annual Payment, as defined in the Flexible Financing for Capital Costs Program Mortgage Note (the “ FFCC Note”), on behalf of the Subordinate Lenders (as defined in the FFCC Note). MHFA will apply its Allocable Portion (as defined in the FFCC Note) as payment on the FFCC Note, and will forward the remaining Allocable Portion to the Subordinate Lenders as payment on the Subordinate Notes (as defined in the FFCC Note). 6. Interpretation. The parties are entering into and executing this Agreement in order to establish the subordination and priority of the Loan Documents and any liens and encumbrances created by the Loan Documents, and, accordingly, the parties agree, understand, and acknowledge that the enforceability of this Agreement is not, and will not be, restricted, limited, or impaired by the fact that not all of the parties to this Agreement are signatories to each or any of the Loan Documents. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 6 12/03/2018 (Ver. 11/20/2017) 7. Most Restrictive Requirements. Notwithstanding the order of priority and subordinations granted in this Agreement, the Borrower will comply not only with the Loan Documents having first priority but with all Loan Documents. For example, if a party’s Loan Documents contain rent, income or occupancy requirements that are more restrictive than Loan Documents that are more senior in priority, then the Borrower will comply with the more restrictive Loan Documents for as long as they remain in effect. 8. Absence of Events of Default and Compliance with Closing Requirements. Each party states, represents, and warranties that as to each of its individual Loans, (i) its Loans have been duly closed, (ii) there are no events of default, or events that with the passage of time could constitute an event of default, currently existing with respect to any of its Loans, and (iii) all of its Loans are in good standing. 9. Notice of Default and Cure Rights. Each party will deliver to the other parties a default notice within five business days in each case where a party has given a default notice to Borrower (provided that each party will have no liability to any party for failure to timely give notice). Failure of the notifying party to send a default notice to the other parties will not prevent the exercise of the notifying party's rights and remedies under the Loan Documents, subject to the provisions of this Agreement. The other parties will have the opportunity, but not the obligation, to cure any default within 60 days following the date of the notice; provided, however that the notifying party will be entitled, during the 60-day period, to continue to pursue its rights and remedies under the Loan Documents. 10. Use of Insurance and Condemnation Proceeds. Notwithstanding any provisions to the contrary contained in this Agreement or in any of the Loan Documents, the parties agree that any and all insurance and/or condemnation proceeds will be used first to repair or reinstate the Development. If there are any remaining proceeds, or if the amounts are insufficient to repair or reinstate the Development, or if the Development cannot be repaired or reinstated, then the proceeds will be used to pay off the Loans in order of the priority of the Loan Documents specified in this Agreement. 11. Agreement Not to Commence Bankruptcy Proceeding. The parties agree that during the term of this Agreement they will not commence, or join with any other creditor in commencing, any Bankruptcy Proceeding with respect to Borrower, without the other parties’ prior written consents. 12. Consent to MHFA HRS FFB Loan. The parties to this Agreement acknowledge that MHFA and the Borrower have executed and delivered an End Loan Commitment of even date with this Agreement pursuant to which MHFA commits to loan to the Borrower, and the Borrower commits to borrow from MHFA the MHFA HRS FFB Loan following completion of construction of the Development and fulfillment of the conditions set forth in this Agreement. The MHFA HRS FFB Loan will be used for the purpose of paying off the MHFA Bridge Loan. MHFA, the City, and the HRA hereby consent to the making and borrowing of the MHFA HRS FFB Loan, and agree that the MHFA HRS FFB Loan will be secured by a mortgage on the Property. The mortgage securing the MHFA HRS FFB Loan will be in first lien position upon payment in full of the MHFA Bridge Loan and the release or satisfaction of all documents Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 7 12/03/2018 (Ver. 11/20/2017) securing the MHFA Bridge Loan. In connection with the closing of the MHFA HRS FFB Loan and payment in full of the MHFA Bridge Loan, the parties to this Agreement agree that the MHFA HRS FFB Loan will have first lien priority pursuant to Section 4(a) without the need to amend this Agreement. 13. Survival of Termination. The terms of this Agreement will continue, and will survive the termination of this Agreement, if any payment under the Loan Documents (whether by or on behalf of Borrower, as proceeds of security or enforcement of any right of set-off or otherwise) is for any reason repaid or returned to Borrower or its insolvent estate, or avoided, set aside or required to be paid to Borrower, a trustee, receiver or other similar party under any bankruptcy, insolvency, receivership or similar law. In the event, any or all of the Loans originally intended to be satisfied will be deemed to be reinstated and outstanding to the extent of any repayment, return, or other action, as if the payment had not been made. 14. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which will be an original but all of which will constitute one instrument. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK) Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 8 12/03/2018 (Ver. 11/20/2017) IN WITNESS WHEREOF, the parties have executed this Master Subordination Agreement and Estoppel Certificate as of the date first written above. BORROWER: BOULEVARD APARTMENTS, LIMITED PARTNERSHIP a Minnesota limited partnership By: Mounds View Group LLC a Minnesota limited liability company General Partner By: Christopher J. Stokka, Chief Manager STATE OF MINNESOTA ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this ____ day of ________, 20__, by Christopher J. Stokka, the Chief Manager of Mounds View Group LLC, a Minnesota limited liability company, General Partner of Boulevard Apartments, Limited Partnership, a Minnesota limited partnership, on behalf of the limited liability company and the limited partnership. Notary Public THIS DOCUMENT WAS DRAFTED BY: Minnesota Housing Finance Agency 400 Wabasha Street North, Suite 400 St. Paul, MN 55102-1109 Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 9 12/03/2018 (Ver. 11/20/2017) MHFA: MINNESOTA HOUSING FINANCE AGENCY By: Wesley J. Butler Assistant Commissioner, Multifamily STATE OF MINNESOTA ) ) ss COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this ______ day of ____________, 20 , by Wesley J. Butler, Assistant Commissioner, Multifamily of the Minnesota Housing Finance Agency, on behalf of the agency. Notary Public Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 10 12/03/2018 (Ver. 11/20/2017) CITY: CITY OF MOUNDS VIEW a Minnesota municipal corporation By: Its: STATE OF MINNESOTA ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this ___ day of ____________, 20 , by_________________ the ________________ of _________________, a _______________ on behalf of the _________________. Notary Public Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 11 12/03/2018 (Ver. 11/20/2017) HRA: RAMSEY COUNTY HOUSING AND REDEVELOPMENT AUTHORITY a political subdivision of the State of Minnesota By: Its: STATE OF MINNESOTA ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this ___ day of ____________, 20 , by ___________________ the _______________ of ______________, a ____________ on behalf of the __________________. Notary Public Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 12 12/03/2018 (Ver. 11/20/2017) Exhibit A LEGAL DESCRIPTION Lot 1, Block 1, Boulevard, Ramsey County, Minnesota. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 13 12/03/2018 (Ver. 11/20/2017) Exhibit B MHFA BRIDGE LOAN DOCUMENTS 1. Bridge Loan Program Combination Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Financing Statement executed by Borrower to MHFA, of even date with the document to which this exhibit is attached, securing the repayment of a loan from in an original principal amount of $6,980,000.00, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 2. Bond Compliance Agreement, of even date with the document to which this exhibit is attached, between Borrower and MHFA, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 3. Bridge Loan Program Regulatory Agreement, of even date with the document to which this exhibit is attached, between Borrower and MHFA, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 4. The following additional Bridge Loan Program Loan Documents: (a) Assignment of Architect’s Contract; (b) Assignment of Construction Contract; (c) Assignment of Rights to Tax Credits, Partnership Interests and Capital Contributions; (d) Certification Regarding Identity of Interest or Family Relationship; (e) Construction Loan Agreement; (f) Disbursement Agreement; (g) Guaranty (executed by Erik Weis); (h) Guaranty (executed by Jay Weis); (i) Master Disbursement Agreement; (j) Mortgage Loan Commitment; (k) Mortgage Note in an original principal amount of $6,980,000.00; (l) Supplement to General Conditions of the Agreement Between Owner and Contractor; and (m) UCC-1 Financing Statement. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 14 12/03/2018 (Ver. 11/20/2017) Exhibit C MHFA HRS FFB LOAN DOCUMENTS 1. HUD Risk-Sharing (Federal Financing Bank) Program Combination Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Financing Statement executed by Borrower to MHFA, dated_____________, securing the repayment of a loan in an original principal amount of $6,497,000.00, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 2. HUD Risk-Sharing (Federal Financing Bank) Program Regulatory Agreement, dated____________, between Borrower and MHFA, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 3. HUD Risk-Sharing (Federal Financing Bank) Program Declaration of Covenants, Conditions and Restrictions, dated_____________, executed by Borrower in favor of MHFA, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 4. Declaration of Covenants, Conditions and Restrictions (Subsidy), dated_____________, executed by Borrower in favor of MHFA, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 5. The following additional HRS FFB Program Loan Documents: (a) Allonge Endorsement to TIF Note; (b) Assignment of Development Agreement; (c) Assignment of Tax Increment Financing; (d) Certification Regarding Identity of Interest or Family Relationship; (e) Certification Regarding Liens; (f) Certification Regarding Payment of Obligations; (g) Disclosure of Lobbying Activities (h) Guaranty (executed by Erik Weis); (i) Guaranty (executed by Jay Weis); (j) Mortgage Loan Commitment; (k) Mortgage Note in an original principal amount of $6,497,000.00; (l) Mortgagor Certification Regarding Lobbying and Federal Debt; and (m) Operating Deficit Reserve and Escrow Account Agreement. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 15 12/03/2018 (Ver. 11/20/2017) Exhibit D MHFA FFCC LOAN DOCUMENTS 1. Flexible Financing for Capital Costs Program Combination Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Financing Statement executed by Borrower to MHFA, of even date with the document to which this exhibit is attached, securing the repayment of a loan in an original principal amount of $1,636,000.00, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 2. Flexible Financing for Capital Costs Program Regulatory Agreement, of even date with the document to which this exhibit is attached, between Borrower and MHFA, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 3. Flexible Financing for Capital Costs Program Declaration of Covenants, Conditions and Restrictions, of even date with the document to which this exhibit is attached, executed by Borrower in favor of MHFA, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 4. Declaration of Covenants, Conditions and Restrictions (Subsidy), of even date with the document to which this exhibit is attached, executed by Borrower in favor of MHFA, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 5. The following additional FFCC Program Loan Documents: (a) Mortgage Note in an original principal amount of $1,636,000.00. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 16 12/03/2018 (Ver. 11/20/2017) Exhibit E CITY LOAN DOCUMENTS 1. Mortgage executed by Borrower to the City, of even date with the document to which this exhibit is attached, securing the repayment of a loan from in an original principal amount of $500,000.00, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 2. The following additional City Loan Documents: (a) Loan Agreement; and (b) Promissory Note in an original principal amount of $500,000.00. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 17 12/03/2018 (Ver. 11/20/2017) Exhibit F HRA LOAN DOCUMENTS 1. Statutory Mortgage, Assignment of Leases and Rents executed by Borrower to the HRA, of even date with the document to which this exhibit is attached, securing the repayment of a loan from in an original principal amount of $375,000.00, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 2. Declaration of Covenants and Restrictions executed by Borrower in favor of the HRA, of even date with the document to which this exhibit is attached, which will be recorded in the Office of the Registrar of Titles for Ramsey County, Minnesota. 2. The following additional HRA Loan Documents: (a) Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions; (b) Loan Agreement; and (b) Promissory Note in an original principal amount of $375,000.00. Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 18 12/03/2018 (Ver. 11/20/2017) Exhibit G TAX CREDIT DECLARATION Boulevard, Mounds View MHFA Dev. #8022 Master Subordination Agreement 19 12/03/2018 (Ver. 11/20/2017) Exhibit H USE AGREEMENT Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 1 12/03/2018 (Ver. 11/20/2017) MASTER DISBURSEMENT AGREEMENT THIS MASTER DISBURSEMENT AGREEMENT (this “Agreement”) has an effective date of the ____ day of__________, 20___, and is entered into among Boulevard Apartments, Limited Partnership, a Minnesota limited partnership, with its offices located at 7645 Lyndale Avenue South, Minneapolis, MN 55423 (“Borrower”), the Minnesota Housing Finance Agency, a public body corporate and politic of the State of Minnesota, with its offices located at 400 Wabasha Street North, Suite 400, St. Paul, MN 55102-1109 (“MHFA”), Ramsey County Housing and Redevelopment Authority, a political subdivision of the State of Minnesota (the “HRA”), City of Mounds View, a Minnesota municipal corporation (the “City”), Mounds View Group LLC, a Minnesota limited liability company (the “General Partner”), Inverwood, LLC, a Minnesota limited liability company (“Inverwood”) and First American Title Insurance Company, a Nebraska corporation, with its offices located at 121 South 8th Street, Suite 1250, Minneapolis, MN 55402 (“Title Company”). RECITALS A. Borrower has applied to and obtained loans from certain other parties to this Agreement and will use the proceeds of such loans and additional equity to fund the acquisition, construction and/or rehabilitation of a multifamily housing development identified as MHFA Development No. 8022 (the “Development”), which will be situated on real property located in the City of Mounds View, County of Ramsey, State of Minnesota, and legally described in Exhibit A attached to this Agreement. B. The following is a listing and description of the loans that Borrower has obtained (collectively, the “Loans”) and the Equity (as defined in this Agreement) that Borrower will use to fund the acquisition, construction and/or rehabilitation of the Development (collectively, the “Project Funds”): Description of Project Funds Amount A loan from MHFA through its Bridge Loan Program, none of which has been disbursed as of the effective date of this Agreement. $6,980,000.00 A loan from MHFA through its Flexible Financing for Capital Costs Program, none of which has been disbursed as of the effective date of this Agreement. $1,636,000.00 A grant from the HRA through the Environmental Response Fund, none of which has been disbursed as of the effective date of this Agreement. $49,520.00 Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 2 12/03/2018 (Ver. 11/20/2017) A loan from City through the Metropolitan Council Local Housing Incentives Account none of which has been disbursed as of the effective date of this Agreement. A loan from the HRA through the HOME Program, none of which has been disbursed as of the effective date of this Agreement. A loan from the General Partner, none of which has been disbursed as of the effective date of this Agreement. A loan from Inverwood, none of which has been disbursed as of the effective date of this Agreement. $500,000.00 $375,000.00 $500,000.00 $1,779,944.00 Funds to be supplied by Borrower, as further described in Section 1 (c) of this Agreement, none of which has been disbursed as of the effective date of this Agreement. $753,539.00 C. MHFA, the HRA, City, General Partner and Inverwood have entered into agreements with Borrower and/or Title Company regarding the disbursement of the Project Funds. D. The parties have agreed that the Project Funds are to be disbursed in a certain order of priority. E. The parties wish to establish how the Project Funds are to be disbursed and the order of priority for the disbursement. NOW, THEREFORE, the parties agree as follows: 1. Definitions. The definitions set forth above are incorporated into this Section 1 by reference. The following terms have the meanings set out respectively after each such term, and such meaning are equally applicable to both the singular and plural forms of the term defined: (a) “City Disbursement Agreement” - An agreement, whether verbal or written, between the City, Borrower, and, if applicable, Title Company, which provides for the disbursement of the City Loan. (b) “City Loan” – A loan from the City through the Metropolitan Council Local Housing Incentives Account to Borrower in an original principal amount of $500,000.00. (c) “Equity” – Cash monies in an amount of $753,539.00 to be supplied to Title Company by Borrower. (d) “General Partner Disbursement Agreement” – An agreement, whether verbal or written, between the General Partner, Borrower, and, if applicable, Title Company, which provides for the disbursement of the General Partner Loan. Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 3 12/03/2018 (Ver. 11/20/2017) (e) “General Partner Loan” - A loan from the General Partner to Borrower in an original principal amount of $500,000.00. (f) “HRA Disbursement Agreement” – An agreement, whether verbal or written, between the HRA, Borrower, and if applicable, Title Company, which provides for the disbursement of the HRA ERF Grant and HRA Loan. (g) “HRA ERF Grant” – A grant from the HRA through the Environmental Response Fund to Borrower in an original principal amount of $49,520.00. (h) “HRA Loan”- A loan from the HRA through the HOME Program to Borrower in an original principal amount of $375,000.00. (i) “Inverwood Disbursement Agreement” – An agreement, whether verbal or written, between Inverwood, Borrower, and if applicable, Title Company, which provides for the disbursement of the Inverwood Loan. (j) “Inverwood Loan” – A loan from Inverwood to Borrower in an original principal amount of $1,779,944.00. (f) “MHFA Disbursement Agreement” - The Disbursement Agreement between MHFA and Title Company of even date with this Agreement, which provides for the disbursement of the Equity and the proceeds of the MHFA Bridge Loan and the MHFA FFCC Loan. (g) “MHFA Bridge Loan” - A loan from MHFA through its Bridge Loan Program to Borrower in an original principal amount of $6,980,000.00. (h) “MHFA FFCC Loan” - A loan from MHFA through its Flexible Financing for Capital Costs Program to Borrower in an original principal amount of $1,636,000.00. 2. Order of Priority for Disbursement of Project Funds. Each party agrees that the Title Company has already been, or will be from time to time, supplied with the Project Funds and must disburse the Project Funds in the following order: Source of Project Funds Order of Disbursement Equity HRA Loan (except for the holdback of $1,000.00) First Second HRA ERF Grant Third MHFA Bridge Loan Fourth City Loan Fifth MHFA FFCC Loan General Partner Loan Inverwood Loan HRA Loan (remaining holdback of Sixth Seventh Eighth Ninth Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 4 12/03/2018 (Ver. 11/20/2017) $1,000.00) The parties agree that the Project Funds must be disbursed in the order indicated and that none of the proceeds of a source of funds will be disbursed until all of the proceeds of funds that are to be disbursed prior to such source have been disbursed. The parties further direct Title Company to disburse the Project Funds in the order indicated, and Title Company agrees to comply with such direction. Notwithstanding the above order of disbursement, the parties agree that if funds from one funding source (the “Original Funding Source”) are unavailable due to (a) the requirements of the documents governing the eligible uses of such funding source and/or (b) certain conditions for disbursement of such funds that have not yet been met, subject to the terms of such funding party’s documents, funds from the next funding source in the order above will be made available for disbursement, but only to the extent the Original Funding Source is unavailable. 3. Disbursement of Individual Loan Proceeds. When Borrower desires the disbursement of any or all of the Project Funds referred to in Section 2, it will submit a draw request to the appropriate entity that is supplying such funds. If the draw request meets the provisions contained in the applicable document that Borrower has entered into with the entity supplying the requested funds and all other requirements imposed by the applicable document have been satisfied, then the approving entity will approve the draw request and forward it to MHFA for authorization for the disbursement of the draw. MHFA’s authorization will be solely to confirm that the Development is being constructed in conformance with all applicable plans and specifications and will not in any way relate to Borrower’s compliance with any provision imposed by an entity for the disbursement of that entity’s funds. Upon authorization by MHFA, MHFA will forward the draw request to Title Company for disbursement of the applicable funds. Title Company will not disburse any monies without first receiving a draw request approved by both the entity whose monies are to be disbursed and MHFA, and upon receipt of an approved draw request, Title Company will disburse the applicable monies in accordance with the provisions contained in the following documents: Source of Project Funds to be Disbursed Entity Supplying the Source of Project Funds Disbursement Document Equity Borrower MHFA Disbursement Agreement MHFA Bridge Loan MHFA MHFA Disbursement Agreement MHFA FFCC Loan MHFA MHFA Disbursement Agreement City Loan City City Disbursement Agreement General Partner Loan HRA ERF Grant HRA Loan Inverwood Loan General Partner HRA HRA Inverwood General Partner Disbursement Agreement HRA Disbursement Agreement HRA Disbursement Agreement Inverwood Disbursement Agreement Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 5 12/03/2018 (Ver. 11/20/2017) 4. Binding Effect. This Agreement is binding upon and inures to the benefit of the parties to this Agreement and their respective successors and assigns. 5. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which is an original but all of which will constitute one instrument. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK) Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 6 12/03/2018 (Ver. 11/20/2017) IN WITNESS WHEREOF, the parties have executed this Master Disbursement Agreement as of the date first written above. BORROWER: BOULEVARD APARTMENTS, LIMITED PARTNERSHIP a Minnesota limited partnership By: Mounds View Group LLC a Minnesota limited liability company General Partner By: Christopher J. Stokka, Chief Manager THIS DOCUMENT WAS DRAFTED BY: Minnesota Housing Finance Agency 400 Wabasha Street North, Suite 400 St. Paul, MN 55102-1109 Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 7 12/03/2018 (Ver. 11/20/2017) MHFA: MINNESOTA HOUSING FINANCE AGENCY By: _______________________________________ Wesley J. Butler Assistant Commissioner, Multifamily Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 8 12/03/2018 (Ver. 11/20/2017) HRA: RAMSEY COUNTY HOUSING AND REDEVELOPMENT AUTHORITY a political subdivision of the State of Minnesota By: Its: Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 9 12/03/2018 (Ver. 11/20/2017) CITY: CITY OF MOUNDS VIEW a Minnesota municipal corporation By: Its: Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 10 12/03/2018 (Ver. 11/20/2017) GENERAL PARTNER: MOUNDS VIEW GROUP LLC a Minnesota limited liability company By: Its: Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 11 12/03/2018 (Ver. 11/20/2017) INVERWOOD: INVERWOOD, LLC a Minnesota limited liability company By: Its: Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 12 12/03/2018 (Ver. 11/20/2017) TITLE COMPANY: FIRST AMERICAN TITLE INSURANCE COMPANY a Nebraska corporation By: _________________________________ Its: _________________________________ Boulevard, Mounds View MHFA Dev. #8022 Master Disbursement Agreement 13 12/03/2018 (Ver. 11/20/2017) Exhibit A LEGAL DESCRIPTION Lot 1, Block 1, Boulevard, Ramsey County, Minnesota. Item No: 8I Meeting Date: December 10, 2018 Type of Business: CB Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Don Peterson, Public Works Director Item Title/Subject: Resolution 9051, Approving repairs to a Garage Door at the Public Works Facility . Background/Discussion: Staff accidently backed into one of the garage doors at the Public Works Facility. As the vehicle was entering into the bay, the angle of the sun prevented the employee from observing that the door was coming down therefore rendering damage to the door. The door was inspected and red tagged and then placed out of service. Staff contacted two garage door companies to receive quotes and was informed that the door was specific to the original manufacturer and they are the only supplier of the garage door. The cost of the repairs, from Overhead Garage Door of Northland, Eagan MN, is $6,970.73. Staff is also working with the garage door company in adjusting the timing and sensors of the doors to prevent this situation happening again. The repair and monies were discussed with Finance Director Beer and it was determined to be funded from 730-4823-5130. Recommendation: Staff is recommending that the garage door repairs be made from Overhead Garage Door of Northland, Eagan MN, $6,970.73, to be funded from account 730-4823-5130. Respectfully submitted, Don Peterson Public Works Director RESOLUTION 9051 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING THE REPAIRS TO A GARAGE DOOR AT THE PUBLIC WORKS FACILITY WHEREAS, Staff accidently backed into a garage door at the Public Works Facility; and, WHEREAS, Staff contacted a garage door company to inspect the door was then red tagged and then placed out of service; and, WHEREAS, a quote was received for the repairs to the garage door from Overhead Garage Door of Northland, Egan MN, for $6,970.73; and, WHEREAS, Staff discussed the needed repairs and funding options with the Finance Director Beer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View, Ramsey County, Minnesota as follows: 1. The City Council approves the repairs to the garage door by Overhead Garage Door Co. of Northland, Eagan, MN for a total of $6,907.73. Adopted this day 10th day of December, 2018 ____________________________________ Carol A Mueller, Mayor ATTEST: ____________________________________ Nyle Zikmund, City Administrator SEAL: Item No: 8J Meeting Date: December 10, 2018 Type of Business: CB Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Don Peterson, Public Works Director Item Title/Subject: Resolution 9052, Approving the Proposal from Buetow 2 Architects for the City Hall Remodel Project Background/ Discussion: The City Council has been discussing the possibility of remodeling City Hall and the Police Department. Discussion was brought forward by Staff with the move of Public Works Administration Staff and the Police Department requiring more space and accommodations due to their current limited space and recent additional officers approved by referendum. (The current space in the Police Department is lacking showers in both the men’s and women’s locker rooms, also needed is a soft interview room, and a secure holding room.) A rough concept was presented to the City Council on April 2nd and Council was supportive of moving forward in hiring an architectural firm to review the concept plans and investigate if a remodel project at City Hall was feasible. Staff created a “Request for Proposal” (RFP) packet and sent them to (5) five different firms, with a due date of November 26th, 2018. Staff received two proposals, one from Buetow 2 Architects, out of Minneapolis, at a cost of $16,800.00, plus reimbursable expenses. The 2nd proposal was from Pear Architecture LLC out of St. Paul, at a cost of $18,350, plus reimbursable expenses. Recommendation: Staff recommends the City Council approve the proposal from Buetow 2 Architects, Inc, and enter into a contract at a cost of $16,800 plus reimbursable expenses. Buetow 2 Architects will provide Professional Architectural and Engineering services as outlined in the RFP for the City Hall Remodel – City Project 2018-C03. Both the City Administrator as well as the Public Works Director have worked with Buetow 2 Architects in the past and given satisfactory review of the services provided. Buetow 2 Architects would not start work until after January 1, 2019. Funding for these services would be from account 480-4470-7050. Respectfully submitted, Don Peterson Public Works Director RESOLUTION 9052 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING THE PROPOSAL FROM BUETOW 2 ARCHITECTS FOR THE CITY HALL REMODEL PROJECT WHEREAS, the City Council has discussed the option of remodeling City Hall in order to provide more space for the Police Department; and, WHEREAS, Public Works Staff created a Request for Proposal for architectural services for the remodel; and, WHEREAS, Staff sent the proposals out to 5 different firms and received 2 proposals; and, WHEREAS, Buetow 2 Architects, Inc. submitted the low cost proposal for Professional Architectural and Engineering Services at $16,800.00 plus reimbursable expenses; and, WHEREAS, the proposals were reviewed and Staff recommends the City Council approve the proposal and enter into a contract with Buetow 2 Architects, Inc. for the City Hall Remodel, City Project 2018-C03. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View, Ramsey County, Minnesota as follows: 1. Accepts the proposal from Buetow 2 Architects for Professional Architectural and Engineering Services for the proposed City Hall Remodel at cost of $16,800.00 plus reimbursable expenses. 2. Approves entering into a contract to provide said services with Buetow 2 Architects as reviewed by the City Attorney. 3. Funding for Architectural and Engineering Services will be from the account 480-4470- 7050. 4. The Mayor and City Administrator are hereby authorized and directed to execute all appropriate documents to effectuate the actions contemplated by this resolution. 5. The Mayor and City Administrator, Staff and consultants are hereby authorized and directed to take any and all additional steps and actions necessary or convenient in order to accomplish the intent of this Resolution. Adopted this 10th day of December, 2018 Carol A. Mueller, Mayor ATTEST: ____________________________________ Nyle Zikmund, City Administrator (seal) Item No: 8.K. Meeting Date: December 10, 2018 Type of Business: Council Business Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 9050, Approving a Market Adjustment for 2019 Background: The City Council commissioned a market study for all non-union employees in 2017 with the intent that it would be implemented with the 2019 budget. There were 11 positions that were below market. One position has been eliminated (CSO – Police), 8 positions have been subsequently implemented as part of the hiring process (Building Official, PW Superintendent, PW Engineering Tech, PW GIS Tech) or early implementation (Deputy Police Chief, Receptionist, Police Admin Support, Accountant). The remaining 2 positions (City Administrator, Police Chief) would need to be approved by the City Council. The market adjustments would be subject to a cost of living adjustment approved in resolution 9038. The City Administrator pay range is subsequently reduced by a $700/month car allowance per the City Administrator employment agreement sections 7 and 13.2. Discussion: To complete the implementation of the 2017 market study the following pay ranges should be considered by the City Council: Current pay range Step 1 Step 1.5 Step 2 Step 3 Step 4 Step 5 City Administrator 53.22 54.88 56.54 59.87 63.19 66.52 Police Chief 46.70 48.16 49.61 52.53 55.45 58.37 Proposed pay range Step 1 Step 1.5 Step 2 Step 3 Step 4 Step 5 City Administrator 55.11 56.83 58.56 62.00 65.45 68.89 Police Chief 46.98 48.45 49.92 52.86 55.79 58.73 Recommendation: Staff recommends that the City Council consider Resolution 9050 which would be effective January 1, 2019. Respectfully submitted, Mark Beer RESOLUTION NO. 9050 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING A MARKET ADJUSTMENT FOR 2019 WHEREAS, the City commissioned a market study of all non-union employees in 2017 to maintain a competitive pay structure in light of significant staff turnover; and WHEREAS, eleven positions were below the market position based on a twelve city group the City uses for comparison and would be subject to a market adjustment based on the study; and WHEREAS, one position has been eliminated and eight other positions have been implemented as part of the hiring process or early implementation; and WHEREAS, the pay ranges would be effective January 1, 2019 and would be adjusted for any Cost of Living Adjustment (COLA) the City Council granted for 2019. NOW, THEREFORE, BE IT RESOLVED that the Mounds View City Council does hereby approve the pay ranges below effective January 1, 2019. Step 1 Step 1.5 Step 2 Step 3 Step 4 Step 5 City Administrator 55.11 56.83 58.56 62.00 65.45 68.89 Police Chief 46.98 48.45 49.92 52.86 55.79 58.73 Adopted this 10th day of December, 2018. ________________________________ Carol A. Mueller, Mayor ATTEST: ________________________________ Nyle Zikmund, City Administrator (seal)