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11-14-22 CC Reg Mtg Agenda Packet CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, NOVEMBER 14, 2022 7:00 P.M. For those wishing to listen live to the meeting, please go to ci.shorewood.mn.us/current_meeting for the meeting link. Contact the city at 952.960.7900 during regular business hours with questions. AGENDA 1. CONVENE CITY COUNCIL MEETING A. Pledge of Allegiance B. Roll Call Mayor Labadie___ Siakel___ Johnson___ Callies___ Gorham___ C. Review and Adopt Agenda Attachments 2. CONSENT AGENDA The Consent Agenda is a series of actions which are being considered for adoption this evening under a single motion. These items have been reviewed by city council and city staff and there shall be no further discussion by the council tonight on the Consent Agenda items. Any council member or member of city staff may request that an item be removed from the Consent Agenda for separate consideration or discussion. If there are any brief concerns or questions by council, we can answer those now. Motion to approve items on the Consent Agenda & Adopt Resolutions Therein: A. City Council Special Meeting Minutes of October 19, 2022 Minutes B. Economic Development Authority (EDA) Meeting Minutes of October 24, 2022 Minutes C. City Council Regular Meeting Minutes of October 24, 2022 Minutes D. City Council Special Meeting Minutes of October 27, 2022 Minutes E. Approval of the Verified Claims List Claims List F. Accept Donations from American Legion Post 259 and Lucky’s Parks/Rec Director Memo Station for Arctic Fever Event Resolution 22-108 G. Approve Employment Agreement for Marc Nevinski Interim City Administrator Memo for City Administrator H. Approve Lease Renewal with AT&T Interim City Administrator Memo Resolution 22-109 I. Approve Assessment Agreements for Water Connections Finance Director Memo Resolution 22-110 CITY COUNCIL REGULAR MEETING AGENDA Page 2 J. Approve Change Order No. 1 and Accept Final Improvements for City Engineer Memo Glen Road, Amlee Road, & Manitou Lane Landscape Project, Resolution 22-111 City Project 18-08 K. Accept Quotes and Award Contract for 2022 Street Sweeping City Engineer Memo Debris Removal, City Project 22-08 Resolution 22-112 L. Authorize Application for Matching Grant, Public Works Director of Public Works Memo Safety Equipment. 3. MATTERS FROM THE FLOOR This is an opportunity for members of the public to bring an item, which is not on tonight's agenda, to the attention of the mayor and council. When you are recognized, please raise your hand or use the raise your hand feature. Please identify yourself by your first and last name and your address for the record. After this introduction, please limit your comments to three minutes. No action will be taken by the council on this matter. The mayor or council may request that staff place this matter on a future agenda or ask staff to address it during Item 10. Staff Reports. (No Council Action will be taken) 4. ENGINEERING/PUBLIC WORKS A. Accept Bids and Award Contract for Birch Bluff Improvements, City Engineer Memo No Parking, and Authorize Wetland Bank Purchase, City Project 21-01 Resolution 22-113 Resolution 22-114 Resolution 22-115 B. Strawberry Lane Easement Update City Engineer Memo 5. GENERAL/NEW BUSINESS A. PUBLIC HEARING: Assessment for Unpaid Bills Approve Assessment for Unpaid Bills Finance Director Memo Resolution 22-116 B. 2022 Bond Issuance Finance Director Memo Resolution 22-117 6. STAFF AND COUNCIL REPORTS A. Staff 1. 2022 General Election Update City Clerk/HR Director Memo B. Mayor and City Council 7. ADJOURN 2A CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL SPECIAL WORK SESSION MEETING COUNCIL CHAMBERS WEDNESDAY, OCTOBER 19, 2022 5:00 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Councilmember Callies called the meeting to order at 5:00 P.M. A. Roll Call Present. Councilmembers: Siakel, Gorham, and Callies; and Interim City Administrator Shukle. Absent: Mayor Labadie and Councilmember Johnson. B. Acting Mayor Siakel moved, Gorham seconded, to appoint Councilmember Callies as Acting Mayor for this evening’s meeting. Motion passed 3/0. Gorham moved, Siakel seconded to adopt the agenda as presented. Motion passed 3/0. C. Discuss Semi-Finalist Candidates for City Administrator; Select Finalists for Interviews The Council reviewed the list of semi-finalists and determined to narrow the list from 6 candidates to 3 for interviews. Candidates #1, #2 and #6, were selected for interviews. Interviews will be held on Thursday, October 27, 2022, beginning at 5:00 p.m. at Shorewood City Hall. Interviews will be 45 minutes in length with discussion on the results of the interviews to follow. D. ADJOURN Siakel moved, Gorham seconded, Adjourning the City Council Work Session Meeting of October 19, 2022, at 5:25 p.m. Motion passed 3/0. ATTEST: Jennifer Labadie, Mayor Sandie Thone, City Clerk 2B CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD ECONOMIC DEVELOPMENT AUTHORITY COUNCIL CHAMBERS MONDAY, OCTOBER 24, 2022 6:15 P.M. MINUTES 1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING President Labadie called the meeting to order at 6:35 P.M. A. Roll Call Present. President Labadie; Commissioners Gorham, and Callies; City Attorney Shepherd; Interim City Administrator Shukle; City Clerk/HR Director Thone; Assistant Treasure/Finance Director Rigdon; Planning Director Darling; Director of Public Works Brown; and, City Engineer Budde Absent: Commissioners Johnson and Siakel B. Agenda Callies moved, Gorham seconded, to Approve the Agenda, as presented. All in favor, motion passed. 2. APPROVAL OF MINUTES A. EDA Minutes of June 13, 2022 Gorham moved, Callies seconded, to Approve the EDA Minutes from June 13, 2022, as presented. All in favor, motion passed. 3. NEW BUSINESS A. Resolution Authorizing the EDA to Exercise the Full Call Option on the 2017A Lease Revenue Refunding Bonds Assistant Treasurer/Finance Director Rigdon stated that opportunities to reduce the tax levy have been discussed previously and explained that this particular idea would pay off the 2017 building bonds, that were originally issued by the EDA in 2008. He explained that the proposal is to pay off the bonds by using General Fund Reserves. He stated that if the City takes this action, they will be able to reduce the annual levy. Councilmember Gorham asked what this would amount to for levy percentages. Assistant Treasurer/Finance Director Rigdon stated that it should get the levy down to 5.5% which began at 8.9%. Councilmember Gorham explained that his goal was to get the levy as low as possible, so he feels this is the right thing to do. He stated that he also thinks this is a good idea because he expects the City will begin seeing material costs increases. CITY OF SHOREWOOD ECONOMIC DEVELOPMENT MEETING MINUTES OCTOBER 24, 2022 Page 2 of 2 Callies moved, Labadie seconded, Adopting RESOLUTION NO. 22-2, “A Resolution Providing for the Redemption and Prepayment of the Shorewood Economic Development Authority Public Project Lease Revenue Refunding Bonds, Series 2017A.” All in favor, motion passed. 4. ADJOURN Gorham moved, Callies seconded, Adjourning the Economic Development Authority Meeting of October 24, 2022, at 6:42 P.M. Motion passed 3/0. ATTEST: Jennifer Labadie, President Sandie Thone, City Clerk 2C CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, OCTOBER 24, 2022 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Labadie called the meeting to order at 7:00 P.M. A. Pledge of Allegiance B. Roll Call Present. Mayor Labadie; Councilmembers Gorham, and Callies; City Attorney Shepherd; Interim City Administrator Shukle; City Clerk/HR Director Thone; Finance Director Rigdon; Planning Director Darling; Director of Public Works Brown; and, City Engineer Budde Absent: Councilmembers Johnson and Siakel C. Review Agenda Gorham moved, Callies seconded, approving the agenda as presented. All in favor, motion passed. 2. CONSENT AGENDA Mayor Labadie reviewed the items on the Consent Agenda. Councilmember Callies asked to remove item 2.G. from the Consent Agenda and move it to the regular agenda for discussion as item 7.C. Callies moved, Gorham seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. City Council Regular Meeting Minutes of October 11, 2022 B. Approval of the Verified Claims List C. Ordinance City Code Supplement S-17-2022, Approving Ordinance 594 and Adopting RESOLUTION NO. 22-099, “A Resolution Approving Summary Publication of Ordinance 594 Enacting and Adopting the 2022 S-17 Supplement to the Code of Ordinances for the City of Shorewood.” D. Establishing Polling Places for 2023, Adopting RESOLUTION NO. 22-100, “A Resolution Designating 2023 Polling Precinct Locations for the City of Shorewood.” CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 2 of 12 E. Accept Arctic Fever Donations, Adopting RESOLUTION NO. 22-101, “A Resolution Accepting Donations to the City of Shorewood 2023 Arctic Fever Event.” F. Change Order for Silverwood Park, Adopting RESOLUTION NO. 22-102, “A Resolution to Accept Change Order for Silverwood Park Improvements; City Project 21-05” G. Interim Administrator Contract Extension (Removed for discussion and as item 7.C.) H. Approve Excluded Bingo Permit Application, Adopting RESOLUTION NO. 22-103, “A Resolution Approving a Temporary Excluded Bingo Permit for Skippers Booster Club” I. Approvement Permanent Appointment of Planning Technician nd J. Approve Deadline Extension for Code Compliance, Location: 26580 62 Street West, Adopting RESOLUTION NO. 22-104, “ A Resolution Approving a Request for Extension to Correct a Code Violation for Property Located at nd 26580 62 Street West” All in favor, motion passed. 3. MATTERS FROM THE FLOOR No one wished to address the Council. 4. REPORTS AND PRESENTATIONS A. Hennepin County Commissioner, Chris LaTondresse Hennepin County Commissioner, Chris LaTondresse, gave a brief presentation to the Council that outlined District 6 and some of the things that the County government has been working on. He reviewed the efforts made by the County through various vaccination events in order to battle Covid-19. He described some of the ways the American Rescue Plan Acts funds were used throughout the District and gave an overview of the County efforts related to housing stability; public safety; and support for the small business community. He displayed a list of the current and future transportation projects around Lake Minnetonka. Mayor Labadie thanked County Commissioner LaTondresse for presenting this information to the Council. County Commissioner LaTondresse introduced his staff that were also present and encouraged residents, or the Council, to contact their office if they ever need assistance. 5. PLANNING A. Report by Commissioner Holker on October 4, 2022 Planning Commission Meeting CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 3 of 12 Planning Commissioner Holker gave a brief overview of the discussion and actions taken at the October 4, 2022 Planning Commission meeting. B. Variance to Grade in Lake Minnetonka Shore Impact Zone Applicant: Karen Kinzie Location: 27190 Edgewood Road Planning Director Darling explained that this is a request to grade inside the Shore Impact Zone at 27190 Edgewood Road. She explained that the Shore Impact Zone is the land located between the Ordinary High Water Level (OHWL) of a public water and a line at half the structure’s setback and explained that for Lake Minnetonka this is twenty-five feet from the OHWL. She stated that the home was built in 1986 by a previous owner and noted that following its construction, staff received complaints regarding fill that was brought to the site. Staff found that the homeowner had raised the level of the home so that there was less floodplain on the property and the ordinance prohibiting grading within the Shore Impact Zone had just been adopted. She noted that she suspects that the floodplain regulations were also very different at that time than in their current form. She explained that staff, in conjunction with the DNR, ultimately decided that rather than pulling all the dirt back out and re-exposing the shoreline, they chose to issue a variance instead which mean that there were some odd berming and lumps left behind. She explained that the current applicant would like to provide a more gentle slope towards the lake rather than having the large mound. She stated that there is very little impact off of the property from this action, but explained that the City would require more Best Management Practices (BMP) for grading and site control to ensure that there is not an issue with runoff. She explained that the applicant was proposing to grade eighteen feet to the OHWL and reiterated that the berms were constructed by a previous property owner and this is a proposal to remove those artificial obstructions. She stated that permitting this grading activity within the Shore Impact Zone is unusual, but staff believes that using the property BMPs will control runoff and prevent discharge of pollutants. She noted that rather than requiring a double row of silt fence, the Council could require a double row of bio-logs. She stated that staff and the Planning Commission recommend approval, subject to the conditions listed in the staff report. She noted that there was a typographical error noted in condition (c) that should state, ‘permanent ground cover shall be planted…’. Councilmember Gorham asked if this was unusual because there was a variance to add the berms and now a variance is also needed to remove the berms. He asked what the berms were doing with the runoff. Planning Director Darling stated that it looked as though it was just a place for some of the excess soil and does not think it was helping the drainage situation in the area. She stated that the way it was graded, it appears as though it would hug around the pool area and snake out through a few areas of the backyard. Kevin Kinzie, 27190 Edgewood Road, stated that he believes the berms were created just as a way to get rid of the dirt. He stated that water goes to the lake and the rest goes back towards the house as well as to the neighbors. He stated that they are just trying to correct a wrong and make it right which should create a flow away from the house and not be an issue for their neighbor. He stated that it will also create a more flat area so it does not enter the lake at such a steep level. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 4 of 12 Councilmember Gorham asked if the idea was that the vegetation would help slow it down and the BMPs would help reduce the runoff. Planning Director Darling explained that the BMPs would help until the vegetation is fully established. Councilmember Gorham confirmed that the first variance was done posthumously. Mayor Labadie stated that she has been to this property and has seen the grading and would agree with the description given by Planning Director Darling that they were artificial obstructions. Gorham moved, Callies seconded, Adopting RESOLUTION NO. 22-105, “A Resolution Approving A Variance to Grade Within the Shore Impact Zone for Lake Minnetonka on Property Located at 27190 Edgewood Road.” All in favor, motion passed. 6. ENGINEERING/PUBLIC WORKS A. Accept Bids and Award Bid for Strawberry Lane Project, City Project 19-05 City Engineer Budde stated that on September 12, 2022, the Council gave staff the authorization to advertise and open bids for this project which were opened on October 13, 2022. He noted that the City received a total of eleven bids with the low bid being submitted by Kuechle Underground out of Kimball. He explained that the construction costs were about three percent above the engineer’s estimate and brought the total project cost to about $700,000 over the CIP budget. . He stated that the bidding was competitive, and the construction prices across the industry have seen inflation of about fifteen percent. He noted that staff had considered ways that the plans could be modified in order to come in closer to budget but felt did not feel cutting out any of the scope made much sense, so they are recommending approval, as presented. He gave a brief overview of a proposed timeline, if this is approved, including tree removal happening in November. He reminded the Council that the substantially complete date would be September 1, 2023. Councilmember Callies noted that the Council has discussed this project a lot and she would agree that she did not feel altering the scope was the right way to go. She stated that it is unlike that costs will go down and would like to see the City move forward and complete the project on time. Councilmember Gorham stated that the bids were all very close and that this was a healthy bid. He stated that he thinks this also shows the importance of bidding these kinds of projects in the fall. He noted that it also shows that the City is not immune to the national escalation in material costs which means if the City tried to cut anything and throw it into the next year, he felt it would just end up costing the City even more money. Mayor Labadie stated that she completely agreed with the comments made by her colleagues. Gorham moved, Labadie seconded, Adopting RESOLUTION NO. 22-106, “A Resolution to Accept Bids and Award Contract for the Strawberry Lane Reconstruction, City Project 19- 05.” All in favor, motion passed. 7. GENERAL/NEW BUSINESS CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 5 of 12 A. 2022A Street Reconstruction and Utility Revenue Financing Shannon Sweeney, David Drown Associations, gave a brief presentation that highlighted the process of adopting a ten year CIP which was done in December of 2020. He explained that the Street Reconstruction Plan authorizes the issuance of public financing to fund specific project costs that are eligible under that statute. He stated that the City has several projects where they have now received bids for the 2022 Street Reconstruction Projects including: Strawberry Lane; Strawberry Court; Peach Circle; the Rehabilitation of Wastewater Lift Stations 7, 9, and 10, and the 2022 Mill and Overlay. He noted that based on current conditions, he is recommending negotiated bank placements for the issuance of public debt which is different than what they have done in the past with a competitive sale and gave a brief overview of the reason for the different approach. He stated that they are recommending that the City authorize them to work with R.W. Baird as a bank placement agent in order to solicit multiple proposals. Councilmember Callies asked if Finance Director Rigdon had also looked through this information and agreed with the recommendation being made by David Drown Associates. Finance Director Rigdon stated that he had reviewed it and also felt that it was something that the City needed to do in order to get the cheapest and best benefit. Callies moved, Gorham seconded, Adopting RESOLUTION NO. 22-107, “A Resolution Initiating the Sale of a General Obligation Street Reconstruction and Utility Revenue Note Series 2022A Through Negotiated Bank Placement.” All in favor, motion passed. B. Accept Communications/Recycling Coordinator Resignation and Approve Organizational Changes and Advertisement/Recruitment for Position Interim Administrator Shukle explained that Communications/Recycling Coordinator Julie Moore, who had served in various roles for the City over the last twenty years, had submitted her letter of resignation. He stated that upon receiving her letter, staff took a look at the current staffing and the organizational needs. He stated that staff is proposing to divide up the duties of the Communications/Recycling Coordinator position and have them be absorbed by the Deputy City Clerk, the Administrative Assistant, the part-time Administrative Assistant, and by changing some of the City Clerk/HR Director Thone’s duties to make that position more of what is called an Administrative Services Director. He gave an overview of the staff who would be absorbing these duties, explained the proposed change from City Clerk/HR Director to Administrative Services Director, and the recommendation to add a part-time Administrative Assistant. He noted that these changes will only have a slight impact on the 2022 budget and have a total impact for 2023 of $11,484. He noted that this change gives the opportunity for current employees to advance themselves and utilize their skill sets. Councilmember Callies stated that she can tell a lot of work has gone into this proposal and explained that she supported the possibility of having internal promotions, however, she had significant concerns about the timing of these changes and some of the job descriptions. She stated that she did not think this was the correct time to make these changes and felt it should be done after the new City Administrator was in place because she thinks it will be important for that individual to have input. She stated that the packet materials indicated that the current employees are ready, willing, and able to step into the new positions, which indicated to her, that this has already been discussed with them. She explained that she feels that this is something that should CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 6 of 12 have come to the Council in advance, perhaps at a work session and not just already being proposed as to how the City is going to be reorganized. She stated that she feels that this process has been done backwards and reiterated that the Council should have been involved on the front end. She noted that she did see some merit in combining some of these positions,but has major concerns about the Administrative Services position because she feels this job description is for a City Administrator and felt it was too much authority for this size of a City. She stated that City Clerk/HR Director Thone has done an excellent job with data practices and some of her other duties, but she feels this recommendation is going too far because it is essentially an Assistant City Administrator and looks like a City Administrator. She stated that she felt that the Council needed to take a step back for a closer look and noted that she felt it was also important to remember that there were two Councilmembers not in attendance tonight who should be given the opportunity to weigh in on these changes. Councilmember Gorham stated that his first issue is with the timing of this change just prior to a new City Administrator coming on board. He stated that it is a bit hard to tell what Communications/Recycling Coordinator Moore was doing and how the roles were exported to other staff members. He asked if this was just her thirty-two hours split as eight hours each to the four individuals. Interim City Administrator Shukle stated that Communications/Recycling Coordinator Moore was currently at forty hours/week and had previously been at thirty-two hours/week. Councilmember Gorham asked if every employee who had been at thirty-two hours/week is now at forty hours/week? City Clerk/HR Director Thone explained that the Communications/Recycling Coordinator position was the only one that was at thirty-two hours/week until that changed in 2021 when it moved to forty hours/week. She stated that Michelle Norman is currently at twenty hours/week,but has been working extra since the City has been down a position at the Community Center and explained that everyone else is full-time. Councilmember Gorham stated that there is a lot happening in the staff report and this would be a huge undertaking. He stated that he did not feel that the Council had received enough information at this point. He stated that what has been presented seems to fit neatly,but explained that he did not think the Council had been presented with enough evidence to make the decision that this is the right way for the City to go. He stated that he agreed with Councilmember Callies point that this may have been a good topic for a work session discussion. Mayor Labadie stated that she agreed with all of the comments that have been made and noted that she had posed a question earlier today about whether the proposed pay grades with the new tasks are accurate. She stated that she honestly does not know the answer and would be uncomfortable voting to approve this proposal without more information. She explained that she felt a decision would be premature, at this point. She stated that there also was not a full Council present at tonight’s meeting. She stated that she was not implying that this proposal is wrong or would be a bad decision, but feels that the Council needed more justification, and would like it to be a full Council decision. She noted that she was well aware that the City was currently short staffed and that there will be an election soon so she feels the Council owes staff an explanation and some suggestions to bridge the gap that they are facing right now. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 7 of 12 Councilmember Callies stated that staff is already in place for the elections and did not think that Communications/Recycling Coordinator Moore was involved in those duties. Interim City Administrator Shukle stated that Communications/Recycling Coordinator Moore was assisting with the elections. Councilmember Callies suggested that the City could hire a temporary person and let them know that there is a possibility that it may become a permanent position. She asked what the essential functions that were being done by Communications/Recycling Coordinator Moore that need to be done right now and asked if the City could advertise for that position. Councilmember Gorham stated that they could also work ‘out of class’ to make up for what Communications/Recycling Coordinator Moore has been doing. He stated that they could be compensated at the other level as long as they are doing these other duties and taking on more responsibilities. Councilmember Callies stated that she feels that raises a bigger issue and did not think that the Council was up to speed in terms of what the City’s hiring practices are or anything about the tests are that people are asked to perform. She stated that she thinks the Council should be getting that information and noted that there may be other positions in the City that could use their title being changed or looked at more closely. She noted that, to her, it looks like this has been under consideration for some time and not like it was simply put together in a two week time period. Mayor Labadie stated that she has no problem rewarding the existing employees, but there has been discussion at several meetings about the need to review the City’s pay grades and pay structures at the annual retreat. She stated that it feels like a lot was put in front of the Council and she reiterated that she would be uncomfortable proceeding forward without, at least, most of the Council being present. Councilmember Gorham reiterated that he also felt that it would make a lot of sense to have the new City Administrator in place before this is considered. Councilmember Callies suggested that perhaps the City hire the proposed part-time position in order to give some time for the employees to continue in their current positions. Interim City Administrator Shukle stated that he felt that would be acceptable. He stated that he understood the Council’s concerns about this proposal and noted that they had not been expected to receive Communication/Recycling Coordinator Moore’s resignation. He explained that staff took a look at what they have in place and what could be done to fill those gaps with what they already have and by taking advantages of the existing skill sets. He stated that their goal was to utilize their abilities so the City would not have to miss a step along the way. He stated that with the job market the way it is and with the difficulty in recruiting to fill positions in both the private and public sector, they felt that the City already had people that could do this work and this would also be a way to reward them. He assured the Council that the thought was “not just to simply slam something down their throats.” Councilmember Gorham stated that he did not think the Council was trying to say that and noted that they all think the City staff is great. He noted that they certainly want them to be happy and be able to grow within the City, but there was a lot of information packed into a four page staff CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 8 of 12 report. He stated that he would like to see more information, for example, their resumes because what was presented was just too condensed. Mayor Labadie stated that she agreed but wanted to make sure the Council gave staff some direction. She stated that she has heard the suggestion of scheduling a work session which she feels a good idea. She stated that she was not sure that this discussion could wait until the annual retreat which will not happen until at least January of 2023. Councilmember Callies stated that the earliest the City would have a new City Administrator is December, so perhaps discussing this in January, at the retreat, would make the most sense. Councilmember Gorham noted that he would also like the new City Administrator to be involved in these work session discussions or at the retreat. Mayor Labadie asked what direction the Council would like to give regarding the immediate need for tasks that were being completed by Communications/Recycling Coordinator Moore. Councilmember Callies stated that she does not think the Council has a good sense of those tasks. Mayor Labadie asked City Clerk/HR Director Thone to give the Council a general idea of how many hours a part-time employee would be needed to bridge the gap while these discussions are taking place. City Clerk/HR Director Thone asked if the Council wanted to utilize the current employees to fill the gaps and then plan to bring someone in to do more of the entry-level type duties or if they were wanting to see how many hours were being done with communications, recycling, and events.? Councilmember Callies stated that the Council needed to know what the main responsibilities are that need to be filled with this resignation. She noted that the new Park and Recreation Director will be taking over the communication duties for the Shorewood Community and Event Center. City Clerk/HR Director Thone walked the Council through some examples based on her job description and the organization that was included in the packet. Councilmember Callies stated that she would just like to focus on Communication/Recycling Coordinator Moore’s duties. City Clerk/HR Director Thone explained that would be the eight hours of lead communications and another six to eight hours of social media component along with the newsletter. She stated that the proposal was for all of those to move to the Administrative Communications Coordinator. She stated that the recycling duties are about six hours a week which was proposed to go to the Communications Recycling Coordinator position. She noted that the other duties would be backing up the front desk and handling events. Councilmember Callies stated that the Council has not yet decided on the reorganization that City Clerk/HR Director Thone is describing and explained that they are just trying to fill the gap that this resignation leaves. She stated that perhaps the best approach would be just hiring for the position as it is right now and noted that it could be considered a temporary position. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 9 of 12 Mayor Labadie stated that if this is a temporary position, she questioned whether the City still needed to have someone work forty hours/week. She stated that she feels that the Council is speculating on a lot of questions that they do not necessarily have the answers to because they do not know the exact job duties that were being performed by Communications/Recycling Coordinator Moore. She stated that she likes the concept of putting a temporary person in place while this is examined more closely. City Clerk/HR Director Thone noted that Communications/Recycling Coordinator Moore’s current job description was included in the packet. She stated that if the City advertises and posts for the existing position, it will not give an opportunity for the current employees to advance in the future, unless they do put it in place as a temporary position. She noted that the job market right now is somewhat difficult and she is not sure that the City would have a lot luck filling a temporary position because it has also been difficult to fill permanent positions. She stated that she felt it was also easier to fill full-time positions than it is part-time positions. Mayor Labadie stated that she does not doubt any of the information City Clerk/HR Director Thone just shared and understands that the current job market is not an easy one. Councilmember Gorham stated that it appears as though everyone is generally full-time with the exception of Ms. Norman. He asked if Ms. Norman could just go full-time, on a temporary basis, in order to buy the City some time to consider this situation and hire the new City Administrator. City Clerk/HR Director Thone stated that they could certainly asked if Ms. Norman would consider that option. Councilmember Callies noted that Ms. Norman had been interested in taking on the Recycling Coordinator duties. Councilmember Gorham explained that was what he had meant when he made the statement earlier about working ‘out of class’ so she would be doing this role until the picture is more clear and explained that he did not want to lose Ms. Norman. Councilmember Callies asked if the City could use an intern to put together the newsletter. Mayor Labadie reiterated that the Council was spending a lot of time speculating. She stated that she did not oppose offering Ms. Norman more hours and compensating her for that, but was not sure if that would be enough to replace a forty hour/week employee. She suggested that perhaps the City could also advertise for a part-time temporary employee. Councilmember Gorham stated that it is clear that the Council needs a bit more time and reiterated that he feels this kind of decision should have the involvement of the new City Administrator. He stated that if Ms. Norman would agree to go full-time for the time being, it would give the Council time to get to the point where they can have the larger discussion with the new City Administrator. He stated that he would rather make a slight change until January/February rather than move forward with the dramatic landscape shift that has been suggested. Mayor Labadie reiterated that at this point, Council was directing staff to offer more hours to Ms. Norman and hold off on filling these duties on a permanent basis until the new City Administrator CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 10 of 12 is in place, when the Council can have a more thorough work session discussion about it,and when there is a full Council present. Callies moved, Labadie seconded, Accept Communications/Recycling Coordinator Moore’s resignation and offer a full-time position to Michelle Norman in order to take on additional tasks vacated by the Communications/Recycling Coordinator position. All in favor, motion passed. C. Interim Administrator Contract Extension (Moved from Consent Agenda item 2G) City Attorney Shepherd stated that Interim City Administrator Shukle’s term of employment with the City began on May 2, 2022 and was to go through November 2, 2022. He explained that the City is still in the process of searching for a new City Administrator, so staff is recommending that the agreement with Interim City Administrator Shukle be extended to three weeks after the commencement of employment of a permanent City Administrator. Councilmember Callies stated that she had pulled this item for discussion because she would like to bring this back to the meeting on Thursday because she thinks there might then be a better sense where things are at with the selection of a City Administrator. She stated that November 2, 2022 is coming up quickly, so the Council may still have to do something, but was not sure it was necessary for there to be three weeks after the permanent City Administrator is hired. She noted that anyone stepping into this position will be an experienced individual and is not sure that much of a time period would be necessary and noted that former City Administrator Lerud was not at the City when Interim City Administrator Shukle came on board. She reiterated that she was hopeful that the Council will have a better idea of where things stand following their meeting on Thursday. Mayor Labadie stated that the meeting for Thursday has already been noticed and this item was not on that notice and asked if that could still be brought up. City Attorney Shepherd stated that he would recommend that the Council did not discuss it at the special meeting because it was intended to be for just that particular topic. Mayor Labadie suggested that, because of the approaching deadline, that the language be changed to ‘up to’ three weeks, or, ‘no more than’ three weeks, in the extension agreement. City Attorney Shepherd stated that if that was the direction from Council, he would recommend it be ‘until the commencement of employment’ or perhaps a week. He noted that he thinks the City should have a finite period of time rather than something that is then once again negotiated. Councilmember Gorham stated that he did not think it seemed like a bad idea to have some overlap and asked if former City Administrator Lerud had any overlap with Interim City Administrator Shukle. Interim City Administrator Shukle stated that they had one day of overlap. Councilmember Gorham asked if Interim City Administrator Shukle felt that a three-week overlap was necessary? CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 11 of 12 Interim City Administrator Shukle stated that he is fine with it,but is open to anything and explained that he has plans to leave town in late January. He stated that the candidate that the City selects may be able to come in and hit the ground running, but noted that from his past experience, it is nice to have someone there during the transition. Councilmember Gorham stated that he likes the idea of changing the language to ‘up to’ three weeks and then it can be determined based on the candidate. City Attorney Shepherd reiterated that could be done, but his goal, with this amendment, was based on the fact that the City does not know when the new City Administrator will be starting so by tying it to the commencement of that employment, then the City has some wiggle room. Councilmember Callies stated that, in her opinion, three weeks feels like a lot of time for there to be overlap for an experienced person. Mayor Labadie suggested an amendment to be ‘…shall extend no longer than…’. City Attorney Shepherd noted that with this change the Council would then be negotiating that time period at a later date. He suggested that the Council just pick a time period and stick with it, for example, one week. The Council came to a consensus that they supported an overlap between the new City Administrator and the Interim City Administrator of one week. Labadie moved, Gorham seconded, to Extend the Interim City Administrator Term as proposed in the First Amendment to the Interim Administrator Agreement, with the modification of removing ‘three weeks’ and replacing the language with ‘one week’. All in favor, motion passed. 8. STAFF AND COUNCIL REPORTS A. Administrator and Staff City Engineer Budde stated that the Smithtown Pond project will begin moving dirt next week. Planning Director Darling noted that the City has been experiencing more vandalism at Badger Park and in one instance they were able to catch three boys that were involved. She stated that she demanded a written apology from each of them, but has only received one thus far, which she found concerning. She stated that she and Interim City Administrator Shukle will be determining what other steps should be taken for the individuals who have not come forward with a written apology. She stated that she will forward the report and the one letter to the Council. She stated that there will also be some potential abatements coming before the Council over the next month or so. She explained that the deer management program was in full swing and noted that one hunt was completed on October 14-16, 2022 where ten deer were harvested. She noted that there are two more hunts coming up on October 28-30, 2022 and November 11-13, 2022. B. Mayor and City Council 9. ADJOURN CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 24, 2022 Page 12 of 12 Gorham moved, Callies seconded, Adjourning the City Council Regular Meeting of October 24, 2022, at 8:32 P.M. All in favor, motion passed. ATTEST: Jennifer Labadie, Mayor Sandie Thone, City Clerk 2D CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL SPECIAL WORK SESSION MEETING COUNCIL CHAMBERS THURSDAY, OCTOBER 27, 2022 5:45 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Mayor Labadie called the meeting to order at 5:45 P.M. A. Roll Call Present. Mayor Labadie; Councilmembers: Siakel, Gorham, Johnson and Callies; Interim City Administrator Shukle; Patty Heminover, Baker Tilly. Absent: None B. Approve Agenda Callies moved, Siakel seconded, to adopt the agenda as presented . Motion passed 5/0. C. Interview Finalists for City Administrator position. Marc Nevinski was first to interview. The City Council asked a series of questions. Upon completion of the interview, the second finalist, Dan Madsen, was interviewed. The same questions were asked of Mr. Madsen. D. Discussion The City Council then discussed the finalists. They determined that both were well qualified for the position. Consensus was to direct Patty Heminover, Baker Tilly to extend an offer of employment to Marc Nevinski. If the offer is unacceptable to Mr. Nevinski, the Council directed that the position be offered to Dan Madsen. E. ADJOURN Callies moved, Gorham seconded, adjourning the City Council Work Session Meeting of October 27, 2022, at 8:13 p.m. Motion passed 5/0. ATTEST: Jennifer Labadie, Mayor Sandie Thone, City Clerk City of Shorewood Council Meeting Item 2F Title/Subject: Resolution Accepting Donations to Arctic Fever Event Meeting Date: Monday, November 14, 2022 MEETING Prepared by: Janelle Crossfield, Park/Rec Director TYPE Reviewed by: Ed Shukle, Interim City Administrator Regular Attachments: Resolution 22-108 Meeting Policy Consideration: Pursuant to Minnesota State Statutes sections §465.03 and §471.17 all donations or gifts of real and personal property, including donations for the benefit of public recreational services, must be accepted by the city council. Background: The following persons or entities have offered to contribute the cash amounts set forth below, for the purpose of the 2023 Arctic Fever Event being held on January 20 and January 21, 2023: Name of Donor Amount American Legion Post 259 $500.00 Lucky’s Station $1260.00 Financial Considerations: This donation will help to cover expenses incurred for the 2023 Arctic Fever Event. Action Requested: Staff respectfully recommends the city council approve the Resolution Accepting Donations as Delineated in the Resolution to the 2023 Arctic Fever Event and direct staff to send a thank you note to all donors. Motion, second and two-thirds majority vote required. Connection to Vision/Mission: Consistency in providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 22-108 A RESOLUTION ACCEPTING DONATIONS TO THE CITY OF SHOREWOOD 2023 ARCTIC FEVER EVENT WHEREAS, the City of Shorewood is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and is authorized to accept gifts for the benefit of their public recreational services pursuant to Minnesota Statutes section 471.17; and WHEREAS, the following persons and entities have offered to contribute a donation as set forth below to the city: Name of Donor Amount American Legion Post 259 $500 Lucky’s Station $1260 WHEREAS, the terms or conditions of the donations are to be used for the 2023 Arctic Fever Event; and WHEREAS, all such donations have been contributed to the city for the benefit of its citizens, as allowed by law; and WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA AS FOLLOWS: 1. The donations described above are accepted and shall be used to establish and/or operate services either alone or in cooperation with others, as allowed by law. 2. The city clerk is hereby directed to issue receipts to each donor acknowledging the city’s receipt of the donor’s donation. Passed by the City Council of Shorewood, Minnesota this 14th day of November 2022. __________________________ Jennifer Labadie, Mayor ___________________________ Sandie Thone, City Clerk City of Shorewood Council Meeting Item 2G Title/Subject: Approval of City Administrator Employment Agreement Meeting Date: Monday, November 14, 2022 MEETING Prepared by: Ed Shukle, Interim City Administrator TYPE Regular Reviewed by: Jared Shepherd, City Attorney Meeting Attachments: Proposed Employment Agreement Background: The City Council engaged the executive recruitment services of BakerTilly to conduct a national search for a new city administrator following the resignation of Greg Lerud. BakerTilly performed their search to obtain qualified candidates for the City Council to consider. Following the application and review process, the City Council held a series of interviews for the position. The City Council has now offered the position to Marc Levinski. Attached is a proposed Employment Agreement between the City of Shorewood and Mr. Levinski. The anticipated start date is January 1, 2023. Financial Considerations: Costs associated with the appointment are included in the city’s general fund budget. Action Requested: Approval of the Employment Agreement as presented. Motion, second and Connection to Vision/Mission: Consistency in providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 EMPLOYMENT AGREEMENT This EMPLOYMENT AGREEMENT ("Agreement") is entered into this of _________ , 2022 by and between the City of Shorewood, a Minnesota municipal corporation ("Employer" or "City"), and Marc Nevinski ("Employee"). The parties agree as follows: 1. NATURE OF EMPLOYMENT/FULL TIME COMMITMENT. Employer agrees to employ Employee as its City Administrator. Employee's first day of employment as City Administrator is anticipated to be January 1, 2023, but may be modified by agreement of both parties. Employee agrees to serve as City Administrator in accordance with State statutes and City ordinances and policies and to perform such other legally permissible and proper duties and functions as the City Council shall from time-to-time assign. Employee agrees to devote his full working time, attention and energies to the performance of his duties and, except as otherwise provided herein, he will not, during his employment by Employer: (a) engage in any activity which will have a materially adverse effect on Employer's goodwill or civic or business relationships, or which will result in material harm to Employer, or (b) provide services to any other governmental entity, agency, organization, person, firm, or corporation which, in Employer's opinion, will conflict with or detract from Employee's performance of his duties. Subject only to the notice provisions in paragraph 15, Employee is employed by Employer at will. 2. TERM. This Agreement shall remain in full force and effect from the date hereof until terminated by the Employer or Employee as provided in paragraphs 15 and 16 of this Agreement. 3. COMPENSATION. Employer shall pay Employee a salary of $155,000 per annum, payable in regular installments according to Employer's normal payroll practices and subject to appropriate withholdings. Except as otherwise provided herein, Employer will review Employee's compensation on an annual basis during the term of this Agreement, and the Agreement shall be amended automatically to reflect any salary adjustments that are provided or required by the Employer's compensation policies. 4. PERFORMANCE EVALUATION. Employer shall perform an initial review of Employee's performance no later than July 31, 2023. Contingent on Employee's satisfactory performance as determined at the sole discretion of Employer, Employee will receive a 3% Cost-of-Living (COLA) increase in salary to be consistent with that provided to other full-time, non-union employees. Thereafter, Employer will perform performance evaluations of Employee in accordance with its practices and procedures for full-time, non-union employees. 5. PENSION PLAN. Employer shall contribute to the Public Employee Retirement Association (PERA) as required by State law for Employee or an alternate pension plan as authorized by State law, if selected by Employee. Employer shall also contribute to any other benefit plans consistent with the benefits provided to other full-time, non-union employees of the Employer. 6. SICK LEAVE. Effective upon Employee's first day of employment, Employee shall be credited with three (3) days of accrued sick leave. In addition, Employee shall accrue sick leave at a rate of one (1) day per month in accordance with the City's personnel policies. 7. VACATION. It is understood and agreed by the parties that, for purposes of vacation leave accrual, Employee will be deemed to have twenty (20) years of service. Pursuant to Employer's vacation policy, at such level of service, Employee is eligible to accrue vacation leave at the rate of 7.692 hours per pay period worked, twenty-five (25) days maximum per year. In order to provide Employee with an allotment of vacation hours at the outset of his employment, effective upon Employee's first day of employment, Employee shall be credited with eighty (80) hours or two (2) weeks – 10 days)) of accrued vacation leave. Employee's use of vacation leave, the timing of accruals, and the amount of future accruals are to be in accordance with the City's personnel policies. 8. HOLIDAYS. Employer shall provide Employee the same paid holidays as enjoyed by other full-time, non-union employees. 9. GROUP INSURANCE. Employer shall provide Employee with certain benefits, which may include group health, dental, and life insurance benefits, as are provided to its full-time, non-union employees and on terms and conditions no less favorable as those provided to other comparable employees. Employee's eligibility to receive any benefit shall be determined by applicable eligibility requirements for such benefit and will be at the sole discretion of Employer. Nothing in this Agreement shall preclude Employer from terminating or amending any employee benefit consistent with applicable law. 10. DUES AND SUBSCRIPTIONS/PROFESSIONAL DEVELOPMENT. Within budgetary constraints and with prior authorization of Employer, Employer shall pay for dues, subscriptions, and related membership costs for Employee's membership in certain professional organizations in which participation is necessary and reasonable for the performance of his job duties, which may include, but not be limited to, the International City/County Management Association (ICMA) and the Minnesota City Management Association (MCMA). Employee may attend various conferences, meetings and occasions for such professional organizations as are approved in 2 advance by Employer. Employee's reasonable travel and subsistence expenses related to approved professional development activities will be reimbursed by Employer in accordance with Employer’s policies and procedures. Employee shall use good judgment in Employee's outside activities so Employee will not neglect his duties to the Employer, and Employer at all times retains discretion over such activities. 11. CIVIC CLUB MEMBERSHIP. Employer recognizes the desirability of representation in and before local civic and other organizations. Employee is authorized to become a member of such civic clubs or organizations as approved by Employer and at Employer's expense. 12. GENERAL EXPENSES/MILEAGE. Employer shall reimburse Employee for reasonable job-related expenses which it is anticipated Employee will incur from time to time, with appropriate documentation and in accordance with Employer's policies and procedures. Employer shall reimburse Employee for mileage for use of his personal vehicle for City business, in accordance with Internal Revenue Service regulations and Employer's policies and procedures. 13. HOURS OF WORK. Employee will generally be available during Employer's regular business hours. It is understood that the position of City Administrator requires attendance at evening and weekend meetings as necessary. In recognition of these work demands, the Employee shall be allowed to use reasonable flexibility in setting his office schedule. 14. OUTSIDE ACTIVITIES. The employment provided for by this Agreement shall be the Employee's sole employment. Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to Employer and the community, the Employee may elect to accept limited teaching or consulting opportunities, subject to Employer's prior consent, with the understanding that such arrangements shall not constitute interference with or a conflict of interest with his responsibilities under this Agreement. 15. TERMINATION. Employee is an at-will employee; either he or Employer may terminate this Agreement and his employment at any time for any reason, subject only to Employee's agreement to provide Employer with thirty (30) days advance written notice and the severance payment provisions contained in paragraph 16 below, In accordance with the terms and conditions of Employer's policies and procedures, Employee will receive payment for the prescribed amount of accrued vacation and sick leave upon termination of his employment. 16. SEVERANCE BENEFITS. a. In the event Employer terminates Employee's employment for cause, as defined below, or that Employee voluntarily terminates his employment, Employee's right to further compensation and benefits will end as of the effective date of the termination, except as otherwise provided by the 3 terms of the benefit policy or applicable law, and Employer shall have no further obligation to compensate Employee. b. In the event that Employer terminates Employee's employment without cause, Employee shall be entitled to severance in the form of salary continuation payment (at Employee's then current rate of pay) for a maximum of six (6) months from the date of termination ("Severance Period"). Should Employee timely elect continuation coverage of applicable Employer benefit plans, Employer shall continue to make its contribution toward group health and dental insurance premiums then in effect during the Severance Period, subject to the following: i. Employee must sign and not rescind a waiver and release of claims provided by Employer. ii. Employer's obligation to make salary continuation and insurance contribution payments will cease effective the date Employee accepts comparable employment, it being understood and agreed that Employee will exercise his best efforts to secure comparable employment during the Severance Period. Employee agrees to immediately notify Employer upon his receipt of a bona fide offer of comparable employment. For purposes of this Agreement, comparable employment is defined as employment in a position of comparable responsibility, compensation, and benefits. c. Termination for Cause. Employer shall have the right to terminate Employee's employment at any time for "Cause" and Employer shall have no obligation to make the severance payments above. Whether Cause exists shall be within the sole discretion of the Employer, and for purposes of this Agreement shall mean that Employee has: i. Committed a material breach of this Agreement or Employer's policies; ii. Failed to substantially perform his duties, failed to carry out any lawful directive of Employer, or demonstrated incompetence or gross inefficiency in his position, as determined by Employer, and, to the extent Employer deems such deficiencies as curable, where such deficiencies are not cured or corrected by Employee within thirty (30) days of receipt of written notice from Employer; iii. Been convicted of or pleaded nolo contendere to any felony or any crime involving moral turpitude or an illegal act involving personal gain to Employee; or 4 iv. Been guilty of gross negligence, willful misconduct, or immoral conduct affecting the performance of his duties, resulting in material harm to, or having a materially adverse effect on Employer. 17. GENERAL CONDITIONS OF EMPLOYMENT. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employer to terminate the services of Employee at any time, for any reason, subject only to the provisions of this Agreement and applicable law. Furthermore, nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from Employee's position with Employer, subject only to the provisions of this Agreement. 18. CHOICE OF LAW AND VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 19. ASSIGNMENT. Employee and Employer agree that this Agreement is a personal employment contract and the rights of the parties cannot be transferred. 20. COUNTERPARTS. This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 21. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties with respect to the employment relationship between Employer and Employee. This Agreement supersedes all prior oral or written communications between the parties, replaces all prior agreements or understandings, and the parties agree that there were no inducements or representations leading to the execution of this Agreement except as herein contained. Employee states that he had adequate time to review this Agreement and understands its terms. 22. WAIVER. This Agreement may be waived only through a writing signed by the parties to this Agreement. The waiver by Employer or Employee of any breach of any term or condition of this Agreement shall not constitute the waiver of any other breach. 5 23. SEVERABILITY. In case any one or more of the provisions of this Agreement shall be invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained in this Agreement will not in any way be affected or impaired thereby. IN WITNESS WHEREOF, Employer has caused this Agreement to be signed and executed on its behalf by its Mayor and Employee has signed this Agreement, in duplicate, the day and year first written above. EMPLOYEE: EMPLOYER: CITY OF SHOREWOOD ____________________ MARC NEVINSKI ____________________ Mayor Date:________________ Date:_______________ ATTEST: ____________________ City Clerk/HR Director 6 City of Shorewood Council Meeting Item 2H Title/Subject: Resolution 22-109 Approving Lease Renewal with AT&T for Cell Tower space on City of Shorewood MEETING Water Tower Located at 5500 Old Market Road TYPE Regular Meeting Date: Monday, November 14, 2022 Meeting Prepared by: Ed Shukle, Interim City Administrator Reviewed by: Jared Shepherd, City Attorney Attachments: Resolution 22-109; Reinstatement and Ratification of Second Amendment to Water Tower Space Lease Agreement Policy Consideration/Policy/ Financial Considerations: The City is renting the space as the owner of the water tower. This is an annual revenue source for the City of Shorewood. Background: AT&T has been leasing space on the City of Shorewood Water Tower located at 5500 Old Market Road since July 2002. The lease expired this summer and AT&T, through its representative, MD7, contacted the City of Shorewood about renewing the lease for another similar period of time. The term of the original agreement expired on June 30, 2022. AT&T proposed a longer-term agreement (expiring in June 2042) with a reduction in base rent from $55,000 to $37,500 annually. AT&T defended their offer by indicating that there have been recent industry developments changing how wireless telecommunications carriers operate. AT&T indicated that in the past, carriers focused on rapidly building out their networks in order to provide the best coverage. They further stated that while consumers are enjoying greater services and better coverage than ever before, operating costs continue to escalate. As a result, the wireless industry is also focusing on operating networks as efficiently as possible. Staff rejected this proposal arguing that AT&T’s offer is drastically less than the previous lease terms and does not reflect the marketability of the site. Staff made a counteroffer with a shorter term (2 five-year terms) with the annual base rent remaining at $55,000. AT&T has accepted this counteroffer. The renewal terms are spelled out in the attached “Reinstatement and Ratification of and Second Amendment to Water Tower Space Lease Agreement.” Financial Considerations: This is an annual revenue source for the City of Shorewood. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Action Requested: Staff respectfully recommends the City Council approve Resolution 22-109 approving the lease renewal as stated in the attached “Reinstatement and Ratification of and Second Amendment to Water Tower Space Lease Agreement.” Motion, second and … Connection to Vision/Mission: Consistency in providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 22-109 A RESOLUTION APPROVING THE REINSTATEMENT AND RATIFICATION OF AND SECOND AMENDMENT TO WATER TOWER SPACE LEASE AGREEMENT WHEREAS, the City of Shorewood has been renting water tower space at its water tower located at 5500 Old Market Road to AT&T since 2002; and WHEREAS, the current lease expired on June 30, 2022; and WHEREAS, the City has been negotiating a new lease with AT&T; and WHEREAS, negotiations were recently completed and a tentative agreement has been reached and is ready for review and approval by the Shorewood City Council; and WHEREAS, the attached staff report and “Reinstatement and Ratification of and Second Amendment to the Water Tower Space Lease Agreement” outline the terms of the new lease. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA that it hereby approves the lease renewal as outlined in the attached staff report and “Reinstatement and Ratification of and Second Amendment to Water Tower Space Lease Agreement. th Adopted by the City Council of Shorewood, Minnesota this 14 day of November, 2022. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk #2I MEETING TYPE REGULAR City of Shorewood Council Meeting Item Title / Subject: Assessment Agreements for Water Connections Meeting Date: November 14, 2022 Prepared by: Joe Rigdon, Finance Director Reviewed by: Ed Shukle, Interim City Administrator Attachment: Resolution Certifying Special Assessments on the 2023 Hennepin County Property Tax Rolls Background: The City Council for the City of Shorewood offers a program for residents who have public water available but are not connected to the municipal system, the ability to assess the water access charge over a number of years. An assessment agreement was developed in consultation with the city attorney, and numerous properties have signed assessment agreements since 2019. The owners of all the properties listed below have signed Assessment Agreements that state the terms of the assessment and are waiving their right to appeal the assessment. The current water access charge is $10,000. Prior water assessments collected are applied against the $10,000 access charge when applicable. PID ADDRESS NAME AMOUNT TERM INTEREST RATE 33-117-23-21-0003 24850 Glen Road Hillstrom 5,000 5 years 5.0% 33-117-23-12-0008 24710 Glen Road Lugowski 5,000 5 years 5.0% Recommendation / Action Requested: Staff recommends approval of the Resolution Certifying Special Assessments on the 2023 Hennepin County Property Tax Rolls. Next Steps and Timeline: The assessments will be certified with the Hennepin County Assessor’s office. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD COUNTY OF HENNEPIN RESOLUTION 22-110 A RESOLUTION CERTIFYING SPECIAL ASSESSMENTS ON THE 2023 HENNEPIN COUNTY PROPERTY TAX ROLLS WHEREAS, the City Council for the City of Shorewood offered a program for residents who had public water available but were not connected to the municipal system, the ability to assess the water access charge over a number of years; and, WHEREAS, the owners of all the properties listed below have signed Assessment Agreements that state the terms of the assessment and waiving their right to appeal the assessment, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD AS FOLLOWS: That pursuant to the terms of the assessment agreements, the city hereby approves and certifies the following special assessments: PID ADDRESS NAME AMOUNT TERM INTEREST RATE 33-117-23-21-0003 24850 Glen Road Hillstrom 5,000 5 years 5.0% 33-117-23-12-0008 24710 Glen Road Lugowski 5,000 5 years 5.0% Such certification, which is due to the County Auditor no later than November 30, 2022, shall be payable over the period of years indicated on the table. The owner of the affected party may, at any time prior to certification of assessments to the County Auditor, pay the whole of the certified assessments to the Shorewood City Clerk. The clerk shall forthwith transmit a certified copy of this certification roll to the County Auditor to be extended on the property tax lists of the county and such certified assessments shall be collected and paid over in the same manner as property taxes. Hennepin County Special Assessment Division is hereby authorized to certify the assessments on the property tax rolls payable in 2023. th ADOPTED BY THE SHOREWOOD CITY COUNCIL this 14 day of November 2022. ________________________________ Jennifer Labadie, Mayor ATTEST ________________________________ Sandie Thone, City Clerk CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 22-111 A RESOLUTION TO APPROVE CHANGE ORDER NO. 1 AND AUTHORIZE FINAL ACCEPTANCE FOR THE GLEN ROAD, MANITOU LANE, AND AMLEE ROAD LANDSCAPE PROJECT; CITY PROJECT 18-08 WHEREAS, pursuant to the approved award of the Glen Road, Manitou Lane, and Amlee Road Landscape Project to Maple Crest Landscaping at the June 27, 2022, Council Meeting; and WHEREAS, Maple Crest Landscaping could not complete the restoration and landscaping plan due to the overgrowth of weeds on the site; and WHEREAS, City Staff agreed to have the top 2-inches of topsoil removed and replaced as part of Change Order No. 1; and WHEREAS, Maple Crest Landscaping has completed all work in accordance with the awarded contract and Change Order; and WHEREAS, Staff has reviewed the estimate, verified quantities, and recommends approval of Change Order No. 1, accepting improvements of the project, and approving final payment to Maple Crest Landscaping. NOW, THEREFORE, BE IT RESOLVED: the City Council of the City of Shorewood hereby approves Change Order No1, accept improvements, and authorize final payment to Maple Crest Landscaping in the amount of $11,156.00 for the Glen Road, Manitou Lane, and Amlee Road Landscape Project according to the plans and specifications on file in the office of the City Clerk. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 14 day of November, 2022. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 22-112 A RESOLUTION TO ACCEPT QUOTES AND AWARD CONTRACT FOR 2022 STREET SWEEPING REMOVALS, CITY PROJECT 22-08 WHEREAS, pursuant to a request for quotations for the 2022 Street Sweeping Removal th project, quotes were received on October 28, 2022, opened and tabulated according to law, with the following quotes received: Contractor Total Bid W.M. Mueller & Sons $26,725.00 Valley Paving $31,750.00 Kuechle Underground $33,500.00 Meyer Contracting $49,075.00 WHEREAS, W.M Mueller & Sons, Inc. is the lowest responsible bidder; and WHEREAS, W.M Mueller & Sons, Inc. is a responsible and responsive contractor, that has completed projects of similar size and scope successfully; and WHEREAS, the street sweepings will be hauled and disposed of at DemCon Landfill near Shakopee, MN; and NOW THEREFORE, IT RESOLVED: by the City Council of the City of Shorewood hereby approves the resolution to accept quotes and authorizes entering into a contract with W.M Mueller & Sons, Inc. based on the lowest quote amount in the name of the City of Shorewood for the 2022 Street Sweeping Removals Project according to the specifications on file in the office of the City Clerk. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 14 day of November 2022. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 22-113 A RESOLUTION TO ACCEPT BIDS AND AWARD CONTRACT FOR THE BIRCH BLUFF ROAD STREET & UTILITY IMPROVEMENT PROJECT CITY PROJECT 21-01 WHEREAS, pursuant to an advertisement for bids for the Birch Bluff Street & Utility Improvement project, bids were received on November 2, 2022, opened and tabulated according to law, with the following bids received and complying with the advertisement: Contractor Total Bid New Look Contracting $4,051,478.25 Valley Paving $4,184,184.00 S.M. Hentges & Sons $4,337,200.50 Northwest Asphalt $4,414,945.24 Meyer Contracting $4,700,383.26 S.R. Weidema $4,810.055.75 Northdale Construction $4,811,260.71 Geislinger & Sons $4,920,709.90 WHEREAS, New Look Contracting, Inc. is the lowest responsible bidder; and WHEREAS, New Look Contracting, Inc. is a responsible and responsive contractor, that has completed projects of similar size and scope successfully; and NOW THEREFORE, IT RESOLVED: by the City Council of the City of Shorewood hereby authorized and directed to enter into a contract with New Look Contracting, Inc. based on the lowest bid amount in the name of the City of Shorewood for the Birch Bluff Street & Utility Improvement Project according to the plans and specifications therefore approved by the City Council and on file in the office of the City Clerk. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 14 day of November 2022. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 22-114 A RESOLUTION TO PURCHASE WETLAND BANK CREDITS FOR BIRCH BLUFF ROAD AND UTILITY IMPROVEMENTS PROJECT; CITY PROJECT 21-01 WHEREAS, the City plans to reconstruct Birch Bluff Road, Grant Lorenz Road, and Lee Circle as part of the Birch Bluff Road Street and Utility Improvement Project; and WHEREAS, the City has delineated wetlands adjacent to the project and anticipates permanent wetland impacts for roadway grading and storm pond construction; and WHEREAS, the City will need to purchase wetland bank credits in order provide replacement wetlands for those impacted as part of the Birch Bluff Road Improvements Project to fulfill the conditions of the wetland permits; and NOW THEREFORE, IT RESOLVED: by the City Council of the City of Shorewood hereby approve the resolution to authorize staff to acquire the necessary wetland bank credits as required for the project. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 14 day of November, 2022. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 22-115 A RESOLUTION TO PROHIBIT PARKING FOR THE WEST BOUND LANES OF BIRCH BLUFF ROAD AND THE SOUTH BOUND LANES OF GRANT LORENZ ROAD; CITY PROJECT 21-01 WHEREAS, the City will be reconstructing Birch Bluff Road and Grant Lorenz Road from Edgewood Road to the Tonka Bay City limits to the city standard street width of 26 feet measured from face of curbs; and WHEREAS, the city standard street width does not accommodate for parking on both sides of the roadway and still provide a safe and effective route for the general public and emergency response; and WHEREAS, the west bound lane of Birch Bluff Road from the eastern city limits with Tonka Bay and the south bound lane on Grant Lorenz Road from Birch Bluff Road to Edgewood Road shall be signed and enforced as no parking; and NOW THEREFORE, IT RESOLVED: by the City Council of the City of Shorewood hereby approve the resolution to sign and enforce no parking along the west bound land of Birch Bluff Road from the eastern limits with Tonka Bay and the south bound lane of Grant Lorenz Road from Birch Bluff Road to Edgewood Road. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 14 day of November, 2022. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk 5A MEETING TYPE Regular City of Shorewood Council Meeting Item Meeting Title/Subject: Public Hearing – Certification of Assessments for unpaid charges Meeting Date: November 14, 2022 Prepared by: Joe Rigdon, Finance Director Reviewed by: Michelle Nguyen, Senior Accountant Attachments: 2022 Certification Listing (Preliminary) Policy Consideration: Pursuant to Shorewood City Code 903.09, Subdv. 3(e) Tax Assessments, all delinquent accounts may be certified by the clerk who shall prepare an assessment roll each year providing for assessment of the delinquent accounts against respective property served th and delivered to the city council for adoption prior to November 30 of each year. Upon adoption the clerk shall certify to the County Auditor the amount due, plus a certification fee as established in the Shorewood Master Fee Schedule and the County Auditor shall thereupon enter the amount as part of the tax levy on the premises to be collected during the ensuing year. Background: The City of Shorewood is responsible for providing water, sewer, stormwater, recycling and other services to property owners within the city limits. The city has established fees for the provision of these services as delineated in the City’s Master Fee Schedule. All delinquent accounts were notified of the process pursuant to state statute and had sufficient time to make payment arrangements or pay the unpaid charges. In addition, all delinquent account holders were notified that property owners wishing to object to proposed assessments against their property should do so during the November 14, 2022 city council meeting where council would consider the assessment levied against their property. Action Requested: Staff respectfully recommends the city council hold the public hearing and consider any property owner objections to the proposed assessments. After the public hearing, staff recommends approval of the attached Resolution Certifying Unpaid Charges to the 2023 Hennepin County Tax Rolls. Connection to Vision/Mission: Consistency in providing residents quality public services, a healthy environment, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD COUNTY OF HENNEPIN RESOLUTION 22-116 A RESOLUTION CERTIFYING UNPAID CHARGES ON THE 2023 HENNEPIN COUNTY PROPERTY TAX ROLLS WHEREAS, pursuant to proper notice given as required by law, the Shorewood City Council has met, heard, and passed upon all objections to the proposed certifications of unpaid charges for municipal fees and utilities; and WHEREAS, the delinquent amounts have been minimized through diligent collection efforts by city staff. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD AS FOLLOWS: Such proposed certification of unpaid charges, a copy of which is available in the City Clerk’s office and referred to as Exhibit 1 and made a part of the resolution hereof, is hereby accepted and shall continue a lien against the lands named therein. Such certification, which is due to the County Auditor no later than November 30, 2022, shall be payable over a period of one year on or before the first Monday in January. The owner of the affected party may, at any time prior to certification of unpaid charges to the County Auditor, pay the whole of the certified unpaid charges to the city clerk on such property, including the assessment fee of $50.00 payable to the City of Shorewood. The clerk shall forthwith transmit a certified copy of this certification roll to the County Auditor to be extended on the property tax lists of the county and such certified unpaid charges shall be collected and paid over in the same manner as property taxes. Hennepin County Special Assessment Division is hereby authorized to certify the unpaid charges, on the property tax rolls payable in 2023, for the following services: Water Levy # To be updated Sewer Levy # To be updated Stormwater Levy # To be updated Recycling Levy # To be updated Delinquent Fee Levy # To be updated Total Levy-City of Shorewood $50,121.87 ADOPTED BY THE SHOREWOOD CITY COUNCIL this 14th day of November 2022. ______________________________ ATTEST: Jennifer Labadie, Mayor ________________________________ Sandie Thone, City Clerk City of Shorewood Council Meeting Item 5B Title/Subject: 2022 Bond Issuance Meeting Date: November 14, 2022 MEETING Prepared By: Joe Rigdon, Finance Director TYPE REGULAR Reviewed By: Ed Shukle, Interim City Administrator Attachments: Letter from Shannon Sweeney of David Drown Associates Resolution Background: In order to finance the following 2022-2023 street and utility projects, the Council previously authorized the negotiated bank placement of General Obligation street reconstruction and utility revenue bonds:  Strawberry Lane  Strawberry Court  Peach Circle  2022 Mill & Overlay  Lift Stations 7, 9, and 10 rehabilitation The 2022A bond sale is scheduled for December 1, 2022 and Shannon Sweeney from David Drown Associates will be at the City Council meeting to present the results of the sale. Recommended Action: Staff recommends approval of a Resolution providing for the issuance and sale of a $7,570,000 General Obligation Street Reconstruction and Utility Revenue Bond, Series 2022A, pledging for the security thereof net revenues and levying a tax for the payment thereof. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA HELD: NOVEMBER 14, 2022 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Shorewood, Hennepin County, Minnesota, was duly held at the City Hall on November 14, 2022, at 7:00 P.M., for the purpose, in part, of authorizing the issuance and awarding the sale of a $7,570,000 General Obligation Street Reconstruction and Utility Revenue Bond, Series 2022A. The following members were present: and the following were absent: Member ______________ introduced the following resolution and moved its adoption: RESOLUTION NO. 22-117 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF A $7,570,000 GENERAL OBLIGATION STREET RECONSTRUCTION AND UTILITY REVENUE BOND, SERIES 2022A, PLEDGING FOR THE SECURITY THEREOF NET REVENUES AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of Shorewood, Minnesota (the "City") has heretofore determined and declared that it is necessary and expedient to issue a $7,570,000 General Obligation Street Reconstruction and Utility Revenue Bond, Series 2022A (the "Bond"), pursuant to Minnesota Statutes, Chapter 475; and 1. Section 475.58, Subdivision 3b, to finance street reconstruction improvements under the City's Street Reconstruction Plan (the "Street Reconstruction Project") in the amount of $3,535,000 (the "Street Reconstruction Portion of the Bond"); and 2. Section 444.075 to finance improvements to the municipal water system, sanitary sewer system and storm sewer system (collectively, the "Utility Improvements") in the amount of $4,035,000 (the "Utility Portion of the Bond"); B. WHEREAS, on May 11, 2020, following duly published notice thereof, the City Council held a public hearing on the issuance of approximately $18,230,681 principal amount of bonds to finance the Street Reconstruction Project and all persons who wished to speak or provide written information relative to the public hearing were afforded an opportunity to do so; and C. WHEREAS, no petition signed by voters equal to 5 percent of the votes cast in the City in the last municipal general election requesting a vote on the issuance of the street 75285660v1 reconstruction bonds was filed with the City Administrator within 30 days after the public hearing on May 11, 2020; and D. WHEREAS, the Street Reconstruction Portion of the Bond, together with any outstanding bonds of the City that are subject to the City's net debt limit, do not exceed the City's net debt limit; and E. WHEREAS, the City owns and operates a municipal water system (the "Water System"), a municipal sanitary sewer system (the "Sanitary Sewer System"), and a municipal storm sewer system (the "Storm Sewer System", and together with the Water System and the Sanitary Sewer System, the "System"), as separate revenue producing public utilities; and F. WHEREAS, the net revenues of the System are pledged to the payment of the City's outstanding (i) Utility Portion of the General Obligation Street Reconstruction and Utility Revenue Bond, Series 2020A, in the original principal amount of $7,500,000, dated August 25, 2020; and (ii) Utility Portion of the General Obligation Street Reconstruction and Utility Revenue Bond, Series 2021A, in the original principal amount of $4,325,000, dated July 28, 2021; (collectively the "Outstanding System Bonds"); and G. WHEREAS, the City has retained David Drown Associates, Inc., in Minneapolis, Minnesota ("David Drown"), as its independent municipal adviser for the sale of the Bond and was therefore authorized to sell the Bond by private negotiation in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bond have been solicited by Robert W. Baird & Co., Incorporated, as placement agent; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota, as follows: 1. Acceptance of Offer. The offer of Truist Bank, a North Carolina banking corporation of Charlotte, North Carolina (the "Purchaser"), to purchase the Bond and to pay therefor the sum of $7,570,000, all in accordance with the terms and at the rate of interest hereinafter set forth, is hereby accepted. 2. Terms; Original Issue Date; Denominations; Maturities; Interest and Redemption. The City shall forthwith issue the Bond, which shall be in fully registered form without interest coupons, shall be dated, mature, bear interest, be subject to redemption and be payable as provided in the form of the Bond. (a) Allocation. The Street Reconstruction Portion of the Bond, being the aggregate principal amount of $3,535,000, maturing in each of the years and amounts hereinafter set forth, is issued to finance the Street Reconstruction Project. The Utility Portion of the Bond, being the aggregate principal amount of $4,035,000, maturing in each of the years and amounts hereinafter set forth, is issued to finance the Utility Improvements. 2 75285660v1 Year Street Reconstruction Portion Utility Portion Total Amount 2024 $ 40,000 $ 170,000 $ 210,000 2025 125,000 140,000 265,000 2026 130,000 145,000 275,000 2027 135,000 150,000 285,000 2028 140,000 155,000 295,000 2029 145,000 165,000 310,000 2030 150,000 170,000 320,000 2031 160,000 175,000 335,000 2032 165,000 185,000 350,000 2033 175,000 190,000 365,000 2034 180,000 200,000 380,000 2035 190,000 205,000 395,000 2036 195,000 220,000 415,000 2037 205,000 220,000 425,000 2038 215,000 230,000 445,000 2039 220,000 245,000 465,000 2040 230,000 255,000 596,000 2041 235,000 260,000 495,000 2042 245,000 270,000 515,000 2043 255,000 285,000 540,000 If the Bond is prepaid, the prepayments shall be allocated to the portions of debt service (and hence allocated to the payment of Bond treated as relating to a particular portion of debt service) as provided in this paragraph. If the source of prepayment moneys is the general fund of the City, or other generally available source, including the levy of taxes, the prepayment may be allocated to any of the portions of debt service in such amounts as the City shall determine. If the source of a prepayment is excess net revenues of the System pledged to the Utility Improvements, the prepayment shall be allocated to the Utility Portion of debt service. 3. Purpose. The Street Reconstruction Portion of the Bond shall provide funds to finance the Street Reconstruction Project. The Utility Portion of the Bond shall provide funds to finance the Utility Improvements. The Street Reconstruction Project and the Utility Improvements are herein referred to together as the Project. The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bond. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. 4. The Finance Director of the City of Shorewood, Minnesota, is appointed to act as registrar and transfer agent with respect to the Bond (the "Registrar"), and shall do so unless and until a successor registrar is duly appointed, all pursuant to any contract the City and the successor registrar shall execute which is consistent herewith. The Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest 3 75285660v1 on the Bond shall be paid to the registered owner (or record holder) of the Bond in the manner set forth in the form of Bond. 5. Form of Bond. The Bond, together with the Registrar's Certificate of Registration, shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA HENNEPIN COUNTY CITY OF SHOREWOOD R-1 $7,570,000 GENERAL OBLIGATION STREET RECONSTRUCTION AND UTILITY REVENUE BOND, SERIES 2022A Interest Rate Maturity Date Date of Original Issue 4.31% February 1, 2043 December 1, 2022 REGISTERED OWNER: TRUIST BANK, CHARLOTTE, NORTH CAROLINA PRINCIPAL AMOUNT: SEVEN MILLION FIVE HUNDRED SEVENTY THOUSAND DOLLARS THE CITY OF SHOREWOOD, HENNEPIN COUNTY, MINNESOTA (the "City" or "Issuer"), acknowledges that it is indebted and, for value received, hereby promises to pay to the registered owner specified above, or assigns duly certified on the Certificate of Registration attached to and made a part of this Bond (the "Registered Owner"), unless called for earlier redemption, in the manner hereinafter set forth, the $7,570,000 principal amount of this Bond shall be subject to mandatory sinking fund principal installments due on February 1 of the years and in the amounts, respectively, as follows with each such principal installment bearing interest until paid at the interest rate of 4.31% per annum: Principal Installments Principal Principal Installments Principal Due February 1 Amount Due February 1 Amount 2024 $210,000 2034 $380,000 2025 265,000 2035 395,000 2026 275,000 2036 415,000 2027 285,000 2037 425,000 2028 295,000 2038 445,000 2029 310,000 2039 465,000 2030 320,000 2040 485,000 2031 335,000 2041 495,000 2032 350,000 2042 515,000 2033 365,000 2043 540,000 4 75285660v1 In the event that the City shall fail to observe any covenant, agreement or representation in the Resolution (as hereinafter defined), which failure results in the interest on the Bond determined not to be exempt from Federal income tax, the interest rate shall increase to a rate equal to the current tax-exempt rate of interest set forth in this Bond (4.31%) divided by 67.5%. In addition, the Issuer shall pay an amount equal to the difference between the interest paid at the tax-exempt rate and the interest which would have been paid if the interest rate would have been the taxable rate from the date that this Bond was determined to be taxable, plus any penalties, interest, assessments and additions to tax payable by the owner as a result of the loss of the tax- exempt status of interest on this Bond. Interest. Interest shall be payable semiannually on February 1 and August 1 of each year, commencing August 1, 2023 (each a "Payment Date"), and shall be calculated on the basis of a 360 day year consisting of twelve thirty day months. Payment. Principal installments and interest shall be paid by ACH debit, wire transfer or other electronic means to the Registered Owner at the address listed on the Certificate of Registration attached to and made a part of this Bond. The payment of all principal and interest on this Bond shall be made by the Finance Director of the City of Shorewood, Minnesota (the "Registrar"). The Registered Owner of the Bond shall not have to present the physical Bond to receive any payment, including any final payment or any mandatory sinking fund redemption. Date of Payment Not a Business Day. If the nominal date for payment of any principal of or interest on this Bond shall not be a business day of the Issuer or of the Registered Owner, then the date for such payment shall be the next such business day and payment on such business day shall have the same force and effect as if made on the nominal date of payment. Redemption. This Bond is subject to redemption and prepayment, in whole, and not in part, at the option of the Issuer, on any Payment Date on or after February 1, 2030, and any Payment Date thereafter, at a redemption price equal to par, plus accrued interest to such date. Mailed notice of redemption shall be given to the Registered Owner at least thirty (30) days prior to prepayment or redemption. Transfer. This Bond is transferable, as provided in the Resolution, upon the Register kept by the Finance Director upon surrender of this Bond together with a written instrument of transfer duly executed by the Registered Owner or the Registered Owner's attorney duly authorized in writing, and thereupon a new, fully registered Bond in the same principal amount shall be issued to the transferee in exchange therefor (or the transfer shall be duly recorded on the Register and the Certificate of Registration hereof), upon the payment of charges and satisfaction of applicable conditions, if any, as therein prescribed; provided that such transfer may occur only with respect to the entire Bond. The Issuer may treat and consider the person in whose name this Bond is registered as the absolute Registered Owner hereof for the purpose of receiving payment of or on account of the principal of and interest on this Bond and for all other purposes whatsoever. Issuance; Purpose; General Obligation. This Bond is issued as a single instrument in the total principal amount of $7,570,000, pursuant to and in full conformity with the Constitution 5 75285660v1 and laws of the State of Minnesota and a resolution adopted by the City Council on November 14, 2022 (the "Resolution"), for the purpose of providing money to finance street reconstruction projects and improvements to the water, sanitary sewer and storm sewer systems within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation Street Reconstruction and Utility Revenue Bond, Series 2022A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Fees upon Transfer or Loss. The Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bond. Registration. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Registration hereon shall have been executed by the Registrar. Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the Issuer has covenanted and agreed with the Holder of the Bond that it will impose and collect charges for the service, use and availability of its municipal water, storm sewer and sanitary sewer systems (the "System") at the times and in amounts necessary to produce net revenues, together with other sums pledged to the payment of the Utility Portion of the Bond, as defined in the Resolution, adequate to pay all principal and interest when due on the Utility Portion of the Bond; and that the Issuer will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property of the Issuer, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal and interest on Utility Portion of the Bond as they respectively become due, if the net revenues from the System, and any other sums irrevocably appropriated to the Debt Service Account are insufficient therefor; and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Shorewood, Hennepin County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its Interim City Administrator, the corporate seal of the Issuer having been intentionally omitted as permitted by law. 6 75285660v1 CITY OF SHOREWOOD Date of Registration: HENNEPIN COUNTY, MINNESOTA December 1, 2022 /s/ Facsimile REGISTRABLE BY AND Mayor PAYABLE AT: OFFICE OF THE FINANCE DIRECTOR City of Shorewood, Minnesota /s/ Facsimile Interim City Administrator 7 75285660v1 CERTIFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Bond may be made only by the registered owner or the registered owner's legal representative last noted below: DATE OF SIGNATURE OF REGISTERED OWNER REGISTRAR REGISTRATION (FINANCE DIRECTOR) Truist Bank 5130 Parkway Plaza December 1, 2022 Boulevard Charlotte, NC 28217 \[do not sign\] 8 75285660v1 6. Execution. The Bond shall be in typewritten form, shall be executed on behalf of the City by the facsimile signatures of its Mayor and Interim City Administrator the seal having been omitted as permitted by law. In the event of disability or resignation or other absence of either such officer, the Bond may be signed by the signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature shall appear on the Bond shall cease to be such officer before the delivery of the Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. 7. Delivery; Application of Proceeds. The Bond when so prepared and executed shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price and the Purchaser shall not be obliged to see to the proper application thereof. 8. Fund and Accounts. There is hereby established a special fund to be designated "General Obligation Street Reconstruction and Utility Revenue Bond, Series 2022A Fund" (the "Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. The Operation and Maintenance Account for the Water System, the Operation and Maintenance Account for the Sanitary Sewer System and the Operation and Maintenance for the Storm Sewer System (collectively, the "Operation and Maintenance Accounts") heretofore established by the City shall continue to be maintained in the manner heretofore and herein provided by the City. All moneys remaining after paying or providing for the items set forth in the resolutions establishing the Operation and Maintenance Accounts shall constitute and are referred to as "net revenues" until the Utility Portion of the Bond has been paid. In such records there shall be established accounts of the Fund for the purposes and in the amounts as follows: (a) Construction Account. To the Construction Account there shall be credited the proceeds of the sale of the Bond. From the Construction Account there shall be paid all costs and expenses of making the Project, including the cost of any construction or other contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. Moneys in the Construction Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bond may also be used to the extent necessary to pay interest on the Bond due prior to the anticipated date of commencement of the collection of taxes herein levied or covenanted to be levied; and provided further that if upon completion of the Project there shall remain any unexpended balance in the Construction Account, the balance shall be transferred to the Debt Service Account. (b) Debt Service Account. There shall be maintained two separate subaccounts in the Debt Service Account to be designated the "Street Reconstruction Project Debt Service Subaccount" and the "Utility Improvements Debt Service Subaccount". There are hereby irrevocably appropriated and pledged to, and there shall be credited to the separate subaccounts of the Debt Service Account: 9 75285660v1 (i) Street Reconstruction Project Debt Service Subaccount. To the Street Reconstruction Project Debt Service Subaccount there shall be credited: (A) all taxes herein and hereafter levied for the payment of the Street Reconstruction Portion of the Bond; (B) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (C) all investment earnings on funds held in the Street Reconstruction Project Debt Service Subaccount; and (D) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Street Reconstruction Project Debt Service Subaccount. The Street Reconstruction Project Debt Service Subaccount shall be used solely to pay the principal and interest and any premiums for redemption of the Street Reconstruction Portion of the Bond. (ii) Utility Improvements Debt Service Subaccount. To the Utility Improvements Debt Service Subaccount there shall be credited: (A) the net revenues of the System not otherwise pledged and applied to the payment of other obligations of the City, in an amount, together with other funds which may herein or hereafter from time to time be irrevocably appropriated to the Utility Improvements Debt Service Subaccount, sufficient to meet the requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and interest of the Utility Portion of the Bond; (B) any collections of all taxes which may hereafter be levied in the event that the net revenues of the System and other funds herein pledged to the payment of the principal and interest on the Utility Portion of the Bond are insufficient therefore; (C) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Utility Improvements Debt Service Subaccount; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Utility Improvements Debt Service Subaccount. The Utility Improvements Debt Service Subaccount shall be used solely to pay the principal and interest and any premium for redemption of the Utility Portion of the Bond and any other general obligation bonds of the City hereafter issued by the City and made payable from said subaccount as provided by law. No portion of the proceeds of the Bond shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bond was issued and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Bond or $100,000. To this effect, any proceeds of the Bond and any sums from time to time held in the Construction Account, Operation and Maintenance Accounts or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal 10 75285660v1 arbitrage regulations. Money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bond to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 9. Covenants Relating to the Street Reconstruction Portion of the Bond. (a) Tax Levy. To provide moneys for payment of the principal and interest on the Street Reconstruction Portion of the Bond there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Years of Tax Levy Years of Tax Collection Amount See Attached Schedule in Exhibit A (b) Coverage Test. The tax levies are such that if collected in full they, together with other revenues herein pledged for the payment of the Street Reconstruction Portion of the Bond, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Street Reconstruction Portion of the Bond. The tax levies shall be irrepealable so long as any of the Street Reconstruction Portion of the Bond is outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 10. Covenants Relating to the Utility Portion of the Bond. (a) Sufficiency of Net Revenues. It is hereby found, determined and declared that the net revenues of the System are sufficient to pay when due the principal of and interest on the Utility Portion of the Bond and the Series 2022B Bonds and the Outstanding System Bonds and a sum at least five percent in excess thereof. The net revenues of the System are hereby pledged on a parity lien with the Outstanding System Bonds and shall be applied for that purpose, but solely to the extent required to meet, together with other pledged sums, the principal and interest requirements of the Utility Portion of the Bond of the Bond. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the System for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of the System will be sufficient in addition to all other sources, for the payment of the Utility Portion of the Bond and such additional obligations and any such pledge and appropriation of the net revenues may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. (b) Excess Net Revenues. Net revenues in excess of those required for the foregoing may be used for any proper purpose. 11 75285660v1 (c) Covenant to Maintain Rates and Charges. In accordance with Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the Holder of the Bond that it will impose and collect charges for the service, use, availability and connection to the System at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Utility Portion of the Bond. Minnesota Statutes, Section 444.075, Subdivision 2, provides as follows: "Real estate tax revenues should be used only, and then on a temporary basis, to pay general or special obligations when the other revenues are insufficient to meet the obligations." 11. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bond, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the net revenues of the System appropriated and pledged to the payment of principal and interest on the Utility Portion of the Bond, together with other funds irrevocably appropriated to the Utility Improvements Project Debt Service Subaccount herein established, shall at any time be insufficient to pay such principal and interest when due, the City covenants and agrees to levy, without limitation as to rate or amount an ad valorem tax upon all taxable property in the City sufficient to pay such principal and interest as it becomes due. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bond and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 12. Defeasance. When the Bond has been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered owner of the Bond shall, to the extent permitted by law, cease. The City may also discharge its obligations with respect to principal installments of the Bond which is due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if the Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to the Bond, subject to the provisions called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to the Bond, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 13. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the 12 75285660v1 "reimbursement proceeds" of the Bond, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: (a) Not later than sixty days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Project; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Project, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar preliminary costs, which in the aggregate do not exceed twenty percent of the "issue price" of the Bond, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Bond. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bond or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bond, and not later than 18 months after the later of (i) the date of the payment of the Reimbursement Expenditure, or (ii) the date on which the Project to which the Reimbursement Expenditure relates is first placed in service, but in no event more than three years after the date of payment of the Reimbursement Expenditure. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bond is issued, shall be treated as made on the day the Bond is issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its bond counsel for the Bond stating in effect that such action will not impair the tax-exempt status of the Bond. 14. Certificate of Registration. A certified copy of this resolution is hereby directed to be filed in the office of the Director of Property Tax and Public Records of Hennepin County, together with such other information as the Director of Property Tax and Public Records of Hennepin County shall require, and to obtain the Director of Property Tax and Public Records of 13 75285660v1 Hennepin County's Certificate that the Bond has been entered in the bond register and the tax levies required by law have been made. 15. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bond, certified copies of all proceedings and records of the City relating to the Bond and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bond as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 16. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby covenants not to use the proceeds of the Bond or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Bond to be an "private activity bond" within the meaning of Sections 103 and 141 through 150 of the Code. 17. Tax-Exempt Status of the Bond; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bond, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bond, and (iii) the rebate of excess investment earnings to the United States. The City expects to satisfy the 24-month exemption for gross proceeds of the Bond as provided in Section 1.148-7(d)(1) of the Regulations. The Mayor and/or Interim City Administrator and/or Finance Director are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bond as they deem necessary, appropriate or desirable in connection with the Bond, and all such elections shall be, and shall be deemed and treated as, elections of the City. 18. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bond as a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bond is issued after August 7, 1986; (b) the Bond is not a "private activity bond" as defined in Section 141 of the Code; (c) the City hereby designates the Bond as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2022 will not exceed $10,000,000; 14 75285660v1 (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2022 have been designated for purposes of Section 265(b)(3) of the Code; and (f) the aggregate face amount of the Bond does not exceed $10,000,000. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 19. Financial Statements. As soon as available, but in no event within 270 days of fiscal year end, the City shall provide audited fiscal year-end financial statements to the Purchaser. The City shall also provide relevant financing information as requested by the Purchaser. The City's obligation to provided annual audited financial information to the Purchaser commences with the current fiscal year to end on December 31, 2022. 20. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 21. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was duly seconded by member ____________________ and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: _____________________; and the following voted against the same: ______________. Whereupon the resolution was declared duly passed and adopted. 15 75285660v1 STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF SHOREWOOD I, the undersigned, being the duly qualified and acting City Clerk of the City of Shorewood, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as such minutes relate to authorizing the issuance and awarding the sale of $7,570,000 General Obligation Street Reconstruction and Utility Revenue Bond, Series 2022A. WITNESS my hand on November 14, 2022. ________________________________ City Clerk 16 75285660v1 EXHIBIT A TAX LEVY SCHEDULE Years of Tax Years of Tax Levy Collection Amount 2022 2023 $ 228,639 2023 2024 289,416 2024 2025 289,009 2025 2026 288,376 2026 2027 287,517 2027 2028 286,431 2028 2029 285,119 2029 2030 288,831 2030 2031 286,840 2031 2032 289,873 2032 2033 287,203 2033 2034 289,557 2034 2035 286,209 2035 2036 287,884 2036 2037 289,107 2037 2038 284,627 2038 2039 285,171 2039 2040 280,012 2040 2041 279,878 2041 2042 279,290 5,668,991 75285660v1 City of Shorewood Council Meeting Item 6A1 Title/Subject: 2022 General Election Update Meeting Date: Monday, November 14, 2022 MEETING TYPE Prepared by: Sandie Thone, City Clerk/HR Director Regular Meeting Reviewed by: Brenda Pricco, Deputy City Clerk November 8, 2022 General Election Update: The General Election was held on November 8, 2022 at three precincts in the City of Shorewood. The City currently has the following four precincts but one precinct has no residents. nd  Precinct 1: Minnewashta Church at 26710 West 62 Street  Precinct 2: Shorewood Community and Event Center at 5735 Country Club Road  Precinct 3: Excelsior Covenant Church at 19955 Excelsior Blvd  Precinct 4: (Cathcart Park - Carver County) Voters registered at 7:00 a.m. the day of the General Election were as follows: Precinct 1: 1938 Registered Voters Precinct 2: 2743 Registered Voters Precinct 3: 1284 Registered Voters Total: 5965 Registered Voters 7:00 a.m. Election Day Voters Voting on Election Day in Shorewood: Precinct 1: 1005 Precinct 2: 1451 Precinct 3: 739 Total: 3194 Voters Voters Voting by Absentee Ballot (Mail-In and In-Person) 1599 Voters Total Voter Turnout (Absentee In-Person & Mail Out and Election Day) 78% City Office Results: City Council (2): Nat Gorham 1599 Votes 24.85% Dustin Maddy 1610 Votes 25.02% Guy Sanschagrin 1735 Votes 26.97% Sarah St. Louis 1461 Votes 22.71% Write-Ins 29 Votes .45% Congratulations to Guy Sanschagrin and Dustin Maddy! Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Election Judges and Election Staff: We had 51 Election Judges from the community working the General Election and helping at City Hall with Direct Balloting Absentee Voting the seven days before the election. We are so grateful to these great group of residents in the community who stepped up to serve in this year’s Elections! The new judges provided excellent support and rounded out some great teams in each of Shorewood’s three precincts. A big shout out for their dedication and hard work! Thank you!! Undertaking elections is no small feat and there are many people working tirelessly behind the scenes and out front to thank as well. Shorewood Election Judges, Shorewood Elections Staff (Amazing!), Public Works employees delivering voting equipment and setting up the day before and picking up the day after. Special Thanks to the following for all of your hard work, positive attitude, and commitment to this year’s General Election: CITY ELECTIONS STAFF PUBLIC WORKS STAFF Brenda Pricco Chris Heitz Nelia Criswell Matt VanLith Miechelle Norman Todd Roden Ryan Brandt Tim Kosek Rob Hanson Bruce Stark Luke Weber ELECTION JUDGES PRECINCT 1 PRECINCT 2 Jane Stein – Head Judge Laurie Sacchet – Head Judge Laura Doten – Head Judge Anne Straka-Leland – Head Judge Susan Paulson Steve Baer – Head Judge Annie Paul Carey Meyer Janice Zumsteg Ralph Ballard Diane Klimowicz Robert Page Tena Brandhorst Dave Roy Joanne Schmid Marilyn Gagne Court Queen Karen Boynton Jo Berger Lucy DeHaan Andrea Vencl Brandi Hoffman Catherine DeMars Maureen Sheehan-Fisher Martha Snyder Julie Zumsteg Carol Paulsen Michael McDonald Karen Burmeister Kathleen Ostrom Michael Kovalesky Owen Bednar – Student Election Judge Pamela McDonald Dianne Aslesen Laura Tholen PRECINCT 3 Beth Grover – Head Judge Roxanne Martin – Head Judge Elaine Love Gordon Levack Peter Wattson Anne Rivers-Ditsch Phyllis Skinner Charles Niles Bill Erickson Todd Murtha James Berdahl Nancy Anderson Wayne Paulson Patricia Kovalesky Mark Czerwonka Action Requested: No action – Informational Purposes Only Connection to Vision/Mission: Consistency in providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership.