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06-26-23 CC Reg Mtg Agenda Packet CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, JUNE 26, 2023 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___ Callies___ Maddy___ Sanschagrin___ 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 Work Session Minutes of June 12, 2023 Minutes B. City Council Regular Meeting Minutes of June 12, 2023 Minutes C. Approval of the Verified Claims List Claims List D. Approve Seasonal Public Works Hire City Clerk/HR Director Memo 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 Council. Anyone wishing to address the Council should raise their hand, or if attending remotely please use the “raise hand” function on your screen and wait to be called on. Please make your comments from the podium and identify yourself by your first and last name and your address for the record. Please limit your comments to three minutes. No discussion or action will be taken by the Council on this matter. If requested by the Council, City staff will prepare a report for the Council regarding the matter and place it on the next agenda. 4. REPORTS AND PRESENTATIONS A. Tim Litfin, Minnetonka Community Ed- Tour de Tonka Update City Administrator Memo 5. PARKS A. Report by Commissioner Hirner on May and June Park Commission Meeting/Park Tours Minutes CITY COUNCIL REGULAR MEETING AGENDA Page 2 6. PLANNING A. Report by Commissioner Eggenberger on 06/06/23 Planning Minutes Commission Meeting B. Variance to setback from side yard abutting a public street Planning Director Memo Location: 4805 Rustic Way Resolution 23-062 Applicant: John and Amanda Lhotka 7. ENGINEERING/PUBLIC WORKS A. Approve Pavement Management Software Public Works Director Memo 8. GENERAL/NEW BUSINESS A. Appointment to Fill Council Vacancy City Administrator Memo Resolution 23-063 B. Review Council Assignments City Administrator Memo Resolution 23-064 C. Approve Proposed SLMPD JPA City Administrator Memo Resolution 23-065 D. Approve the South Lake Minnetonka Police Dept. 2024 Budget City Administrator Memo Resolution 23-066 E. Bond Sale Results Finance Director Memo Resolution 23-067 F. Approve New Retail Liquor License – Red’s Savoy Pizza City Clerk/HR Director Memo at 19215 State Hwy 7 Resolution 23-068 G. Adult Use Cannabis Discussion City Administrator Memo 9. STAFF AND COUNCIL REPORTS A. Staff 1. Spring Clean-Up/Shred Event Update Communications Coordinator Memo 2. Matters From The Floor - Response to Alan Yelsey City Administrator Memo B. Mayor and City Council 10. ADJOURN 2A CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION MEETING COUNCIL CHAMBERS MONDAY, JUNE 12, 2023 5:30 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Mayor Labadie called the meeting to order at 5:30 P.M. A. Roll Call Present. Mayor Labadie; Councilmembers Labadie, Callies, Maddy, and Sanschagrin; City Attorney Shepherd; City Administrator Nevinski; Parks and Recreation Director Crossfield; City Clerk/HR Director Thone; Finance Director Rigdon; Planning Director Darling; Director of Public Works Morreim; and, City Engineer Budde Absent: None B. Review Agenda Maddy moved, Callies seconded, approving the agenda as presented. Motion passed 4/0. 2. COUNCIL CANDIDATE REVIEWS/INTERVIEWS City Administrator Nevinski noted that there was a bit of a technical glitch was the form available on the City’s website. He stated in order not to miss anyone who may have wanted to apply, they have extended the deadline to June 20, 2023 at 12:00 noon. He stated that Woody Love has chosen to withdrawn his application for the Council opening and will be interviewing this evening. 5:30 P.M. Nathaniel Gorham Nathaniel Gorham introduced himself and gave an overview of his background and experience and shared reasons why he was interested in serving on the Council again. The Council asked questions about what he felt were the biggest challenges for the City and his work with the Planning Commission. Mayor Labadie recessed the meeting at 5:48 p.m. and reconvened at 6:00 p.m. 5:45 P.M. Woody Love 6:00 P.M. Scott Zerby Scott Zerby introduced himself and gave an overview of his background, experience, and shared reasons why he was interested in serving on the Council again. He noted that he served for a total of eighteen years, with eight years as mayor. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES MAY 8, 2023 Page 2 of 2 The Council asked questions about the possibility of running again once this vacant term is completed, decisions that have turned out to be controversial, serving as a Councilmember rather than Mayor, and past differences in opinion between he and Mayor Labadie on past City projects. Mayor Labadie recessed the meeting at 6:17 p.m. and reconvened at 6:28 p.m. 3. MINNETONKA COMMUNITY ED ADVISORY COUNCIL INTERVIEW 6:30 P.M. Tad Shaw City Administrator Nevinski explained that the position on the Minnetonka Community Ed Advisory Council represents the City and form the discussion around community education needs and interests. He noted that Tad Shaw has served in this position for the last few years. He noted that this position is appointed on an annual basis. Tad Shaw gave an overview of his background, experience, and interest in continuing to serve on the Minnetonka Community Ed Advisory Council. The Council asked questions and discussed the activities of the Minnetonka Community Ed Advisory Council, Tour de Tonka, member cities, and the past civic service and education emphasis of the Advisory Council compared to its current focus on the Tour de Tonka. They discussed the change from the activities of the Advisory Council and the move away from voting on any actions with the sole focus being on Tour de Tonka and the possibility of speaking with the new superintendent about possibly changing it back to a voting body. ADJOURN Maddy moved, Sanschagrin seconded, Adjourning the City Council Work Session Meeting of June 12, 2023, at 6:51 P.M. Motion passed 4/0. ATTEST: Jennifer Labadie, Mayor Sandie Thone, City Clerk 2B CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, JUNE 12, 2023 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Labadie called the meeting to order at 7:03 P.M. A. Pledge of Allegiance B. Roll Call Present. Mayor Labadie; Councilmembers Callies, Maddy, and Sanschagrin; City Attorney Shepherd; City Administrator Nevinski; City Clerk/HR Director Thone; Finance Director Rigdon; Planning Director Darling; Park and Recreation Director Crossfield; Director of Public Works Morreim; and, City Engineer Budde Absent: None C. Review Agenda Maddy 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 Sanschagrin asked for a clarification on item C., regarding an item on the Verified Claims List. He referenced the listed expenses for herbicide in an amount of $1,375.00 and asked what those were for. Public Works Director Morreim explained that those charges are for the contractor, Greener Blade and the applications were done at the City’s direction under the guidance of the IPM. He stated that he has printed off the information and can find a way to distribute the details to the Council about those items, if they are interested. Councilmember Maddy asked about item 2.E., regarding the Juneteenth holiday. He stated that it states that the cost to the City is about $10,000 and asked for clarification on whether this was a budget increase or if it just reflected the cost of the services that the City will not be providing that day. City Administrator Nevinski confirmed that this understanding was correct and this amount reflects an unbudgeted daily cost for this holiday that the City has to account for. He clarified that it is a budget neutral item, but needed to be documented. Councilmember Callies asked about item 2.F., related to the kitchen rental rates. She asked for clarification of a ‘home based kitchen’. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 12, 2023 Page 2 of 9 Park and Recreation Director Crossfield explained that when a food manager is getting their license to prepare foods, they have a health inspector come out and inspect the kitchen where they will be preparing food, which is what is considered their ‘home based kitchen’. Sanschagrin moved, Maddy seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. City Council Work Session Minutes of May 22, 2023 B. City Council Regular Meeting Minutes of May 22, 2023 C. Approval of the Verified Claims List D. Approve Part-Time Administrative Assistant New Hire E. Approve Addition of Juneteenth Holiday to City Calendar, Adopting RESOLUTION NO. 23-056, “A Resolution Establishing Juneteenth as a City Holiday.” F. Approve Shorewood Community and Event Center Kitchen Rental Rates, Adopting RESOLUTION NO. 23-057, “ A Resolution to Update the 2023 City Master Fee Schedule Pertaining to Kitchen Rental Feel at the Shorewood Community and Event Center.” G. Approve Extension for Development Approvals – Location: Excelsior Wood (20325 Excelsior Boulevard) for Red Granite Construction, Adopting RESOLUTION NO. 23-058, “ A Resolution Approving an Extension to the Final Plat Approval for Excelsior Woods for Property at 20325 Excelsior Boulevard.” H. Approve Seasonal Public Works Hire I. Accept Resignation of PT Community Center Attendant and Authorize Recruitment J. Approve PT Community Center Attendant K. Authorize Execution of Hennepin County Regional Railroad Authority Permit L. Approve Drainage and Utility Easement Agreement, City Project 21-01, Adopting RESOLUTION NO. 23-059, ‘A Resolution Approving Birch Bluff Improvement Project Easements, City Project 21-01” M. Approve a Special Assessment for 25530 Birch Bluff Road, Adopting RESOLUTION NO. 23-61, “A Resolution Approving and Adopting a Special Assessment.” Motion passed. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 12, 2023 Page 3 of 9 3. MATTERS FROM THE FLOOR Anna Quade, 23675 Smithtown Road, asked about the 2040 Comprehensive Plan that was approved by the City last year and the process to adjust the plan. Planning Director Darling stated that if the change is for a piece of property that a party has a controlling interest in, they can make an application to make a change to the Comprehensive Plan. She noted that she is available to discuss this in greater detail if residents would like to contact her and make and appointment. Chris Chazlin, 25630 Maple View Court, noted that he had lived in Shorewood for seventeen years and congratulated the Council to continuing to hold Matters from the Floor as part of their meetings. He stated that he had signed the petition relating to the Eureka Road project and noted that they are still awaiting a response to their request for no scoping study because of the expense and the need for repairs. He stated that the condition of the road has gotten worse since the Birch Bluff project has begun. He stated that there is a desire from the public for some type of open forum meeting, similar to what was done for that project last year in order to give the public a chance to come forward and express their opinion on the project. City Engineer Budde stated that since they received the petition, the City has paused their efforts in scoping the project and noted that he has been focusing on the Birch Bluff and Strawberry Lane projects. He stated that they plan to start pushing out the on-line engagement with the public in early July and plan to hold an open house sometime in early August. Rick Stromberg, 5510 Wedgewood Avenue, stated that he has walked his dogs for almost thirty years on the light rail trail down to Freeman Park and around the woods at least once a day. He stated that he has seen the woods deteriorate with the buckthorn problem. He stated that the Council does not seem to care very much about controlling the buckthorn even though it is considered a non-native invasive species. He stated that he had sent pictures to the Council last fall that showed that there was not any new growth of native trees. He stated that as the trees die out, nothing will be there except for buckthorn. He stated that with relation to the Smithtown Ponds project, there is a lot of new dirt over there and some trees have been planted, but noted that some of them are already dying. He asked if the City had a plan in place to keep the buckthorn from migrating to that area from Freeman Park. Mayor Labadie explained that the City had halted its buckthorn mitigation efforts while they were getting professional opinions and researching the Integrated Pest Management. She noted that the City has received a grant relating to buckthorn management in Freeman Park. Planning Director Darling stated that staff met earlier today to discuss how the City can move forward with the buckthorn removal grant. She stated that the grant is from the DNR for Buckthorn eradication and noted that some of the work included using daubing of chemicals on the cut buckthorn. She explained that the project was put on hold while they were studying the Integrated Pest Management (IPM) plan and noted that the Council has given staff the authorization to move forward because the chemicals used for daubing are consistent with the IPM plan. She stated that Public Works director Morreim will begin working with contractors to get estimates so the City can move forward with this project and not lose the grant funds. Alan Yelsey, 26335 Peach Circle, offered criticism related to his feeling that it is disrespectful for Mayor Labadie and Councilmember Maddy to publicly disrespect and diminish the value of citizen CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 12, 2023 Page 4 of 9 input in comments that have been recorded at past meetings. He expressed frustration that residents are only given three minutes to make their statements and are not allowed to have a discussion about their items. He stated that he felt this was a very anti-democratic approach to running a government. He stated that regarding safety, when the Smithtown Ponds project was proposed, neighbors asked the City to make sure that they were not going to be in hazard due to mosquitos and the ponds are sitting, filled with water and no mitigation or protection has taken place. He stated that he feels this is a very poor practice and is dangerous to the residents and asked the City to remedy that situation immediately. He stated that there is also a pile of about fifteen to twenty feet of sand sitting on Strawberry Lane. He shared a story of a time when he was in elementary school where a friend of his died from playing in a similar pile of sand. He urged the City to take some safety precautions for both of these issues. He stated that the City is also attempting to charge him two-thousand dollars to gain access to data from the City that is available in electronic form which he also feels is undemocratic. He expressed frustration with the City’s decision to go into bonding debt without the public realizing the extent of the debt. He stated that he feels the City is being run by an engineering firm that profits from every project that is undertaken and has also received a large amount of money for just planning. Mayor Labadie reviewed the concerns raised by Mr. Yelsey and asked if staff could respond to those concerns at the next Council meeting. City Administrator Nevinski stated that staff can prepare reports in response to the concerns that had been raised. Mr. Stromberg stated that he has seen mosquito control active in the area mentioned by Mr. Yelsey. Mayor Labadie asked staff to address that item at the next meeting. Christine Sanschagrin, 27725 Island View Road, stated that if there is a safety issue with a pile of sand, she feels it would be important to address it immediately and not wait until the next Council meeting. She stated that especially because it is now summer and children are out of school. She urged the Council to address that issue immediately and not wait for their next meeting. Mayor Labadie clarified that staff will be giving the Council a summary at the next Council meeting. She explained that she had faith that City staff was taking adequate safety precautions in the immediate future. City Engineer Budde stated that he will contact the contractor in the morning to discuss ways to mitigate any potential safety issues. He stated that he also plans to go take a look at the area to confirm that it is a safety issue. 4. REPORTS AND PRESENTATIONS A. Fall/Winter 2022-2023 Photo Contest Winners City Clerk/HR Director Thone gave an overview of the Fall/Winter 2022-2023 Photo Contest Winners: Fall Delights: Christine Hall, Fall Submissions CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 12, 2023 Page 5 of 9 Winter Wonder: Carrie Massine, Stunning Winter Snow on Sweetwater People and Pets: Molly Bragg, Paddle Boarding Wildlife: John Felix Makey, Stoic Green Heron City Clerk/HR Director Thone encouraged residents to submit their photos for the upcoming Spring/Summer Photo Contests. B. Excelsior Chamber of Commerce – Excelsior Fireworks City Administrator Nevinski noted that typically, the city participates with the Excelsior Chamber of Commerce to help provide fireworks in the area and noted that the City’s budget usually includes about $7,500 for this event. Tiffany King, Executive Director, Excelsior/Lake Minnetonka Chamber of Commerce, gave an overview of the Chamber as a 501(c) 6 non-profit organization. She reviewed the history of past Fourth of July events, logistics of deploying fireworks, and budget and funding details. She stated that they have appreciated the continued public partnership with the area municipalities Mayor Labadie expressed her appreciation for the data and information presented by Ms. King and noted that the Council had frequently asked for this information in the past. City Administrator Nevinski stated that the City had already budgeted $7,500 for 2023 for support of this event. Mayor Labadie suggested that in the future, it may make more sense for this presentation to be made in the fall when the Council is working on their budget for the following year. Callies moved, Maddy seconded, to Approve the budgeted $7,500 for the Excelsior Chamber of Commerce event for the Fourth of July, as planned. All in favor, motion passed. City Administrator Nevinski stated that in the future they will plan for this presentation and decision to happen in closer conjunction with the actual budget cycle and adoption. Ms. King noted that she has volunteer opportunities available for the Fourth of July events next month and encouraged people to contact her if they were interested in assisting. 5. PARKS 6. PLANNING 7. ENGINEERING/PUBLIC WORKS 8. GENERAL/NEW BUSINESS A. Appointment to Minnetonka Community Education Advisory Council City Administrator Nevinski noted that the Council Work Session held earlier this evening, Mr. Tad Shaw interviewed to fill the remaining term for this open position. He explained that the seat is open and will expire January 31, 2024. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 12, 2023 Page 6 of 9 Mayor Labadie clarified that this position is an ‘advisory’ position and not a voting position and noted that Mr. Shaw has served in this position for many years. She stated that she would like to request that whoever the City appoints in this position provide an update to the Council in November, so they have that information prior to appointing for the next calendar year. Councilmember Callies stated that she would like to hear more about what the Minnetonka Community Education Advisory Council does and noted that it may be possible that the City needs to do more to promote this position in the future. She stated that she does not think the Council has a great understanding about what this position does so it is hard to ask for people to join as a representative. Sanschagrin moved, Maddy seconded, Adopting RESOLUTION NO. 23-060, “A Resolution Making an Appointment to the Minnetonka Community Education Advisory Council.” All in favor, motion passed. B. Approve Comparable Cities for Compensation Study City Administrator Nevinski reminded the Council that at their last meeting they had approved a contract with David Drown Associates to complete a compensation study for the City. He explained that one of the ways that the Council is able to weigh in and help set some direction with the study is to approve a list of comparable cities for inclusion in the compensation study. He reviewed the suggested inclusion of a ‘spotlight’ community as a point of reference and noted that staff felt that Minnetonka would be a good ‘spotlight’ city. Mayor Labadie asked if the price of the contract would change based on the number of cities that are analyzed. City Administrator Nevinski stated that would not change the price of the contract with David Drown Associates. Councilmember Callies stated that she feels the proposed list may be too large unless the consultant felt this was an appropriate number of cities. Councilmember Sanschagrin noted that it struck him that some of these cities are more comparable than others. He suggested that cities like Mound, Minnetrista, Orono, Victoria, and Spring Lake Park may be more comparable to Shorewood. He stated that perhaps they could keep the overall list, but also have data that shows the comparisons with cities who may be more comparable than the others. City Administrator Nevinski stated that he thinks that is good feedback for the consultant. He explained that his understanding is that the more data they have to analyze the better the outcome will be. Councilmember Callies asked if David Drown Associates would present to the Council data from 25 cities and noted that she feels that information may be overwhelming unless they can adequately summarize the data. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 12, 2023 Page 7 of 9 City Administrator Nevinski noted that even if David Drown Associates includes 25 cities in their analysis, he did not believe that they would turn around and give 25 data sets to the Council for review. Mayor Labadie stated that she feels that it would make sense for Chanhassen to be the ‘spotlight’ city. Councilmember Callies stated that Chanhassen still has a lot of area that can be developed and Minnetonka is more established, which is more similar to Shorewood. She asked Planning Director Darling if she had an opinion on which city would be best as a ‘spotlight’ city. Planning Director Darling agreed that Minnetonka is pretty much fully developed and dependent on redevelopment, which is where Shorewood will be within the next few years. Councilmember Sanschagrin reiterated that he would like to see the compensation study include the larger 25 city group, but that a closer look them be taken with a smaller subset of cities that are more similar to Shorewood. The Council discussed potential spotlight communities. City Administrator Nevinski reminded the Council that the spotlight city would not be included in the data analysis which means it would not impact the pool of data and was just a point of reference with a city that Shorewood sort of competes with. Councilmember Maddy asked why staff had recommended choosing Minnetonka as the spotlight city. City Administrator Nevinski stated that he believes the recommendation came down to the development patterns. Mayor Labadie asked Public Works Director Morreim to weigh in on what city he thinks may be more comparable as a spotlight city. Public Works Director Morreim stated that based on the conversation relating to prospective positions, he thinks they would be transferable to any of the proposed spotlight cities. He noted that members of his staff have come from places like Chanhassen or Mound. He stated that in his opinion the skills are transferrable and they just need to be scaled up or down depending on the size of the cities. He stated that, in his opinion, any of the four suggested spotlight cities would be a good fit. Councilmember Sanschagrin stated that he would remove Eden Prairie because it is so large and Hopkins because it is so urban. He stated that would leave either Minnetonka or Chanhassen and he feels he would be fine supporting either of those cities as the spotlight city. Sanschagrin moved, Maddy seconded, to Approve the Attached List of Comparable Cities and the Spotlight City of Minnetonka to be used to complete the 2023 Compensation Study.” All in favor, motion passed. 9. STAFF AND COUNCIL REPORTS CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 12, 2023 Page 8 of 9 A. Staff Park and Recreation Director Crossfield reminded the Council that the Silverwood Park Grand Opening celebration would take place on June 20, 2023 at 5:00 p.m. She noted that they are still open to last minute registrations for the Tai Chi in the Parks events coming up. She stated that the second Park tour will be held June 13, 2023 and will begin at Badger Park at 6:00 p.m. She noted that they will also be touring Manor Park, South Shore Park, and the Christmas Lake Boat Launch. Public Works Director Morreim stated that there will be two summer seasonal staff members who will begin work this week. He stated that they finished flushing watermains on June 7, 2023. He stated that they are working on studying the iron content in the water and noted that he would provide a more robust update to the Council in July when he has more information. He stated that there were a lot of activities in Freeman Park this last weekend between soccer and baseball as well as work being done on Strawberry which is adjacent to the park. He stated that they had worked with the Police Department to recommend that people not utilize Eureka and Highway 7 and explained that they encouraged this because they really did not want to close anything down. He noted that overall he think things went pretty well but there were a few hiccups with things like bathroom maintenance and some parking on Eureka. Mayor Labadie stated that she had received a notice from Tonka United who said they just finished help reorganize the fields for the splash tourney and their ‘field guy’, Eli, was very impressed with the mowing job. She noted that they had asked that this compliment be passed onto the Public Works crew. City Engineer Budde gave an update on the Birch Bluff project and noted that the Army Corps of Engineers has jurisdiction but are not requiring any archeological investigations as part of the project so he is hopeful that they will have the permit in hand sometime this week. He stated that the Smithtown Pond project is coming together nicely and the contractor should be paving the trail within the next week and the site should be mostly wrapped up within the next two weeks. Planning Director Darling reported that the City received the 2022 Population estimates as of April 1, 2022 which show that the City has 7,779 people, which is a drop of forty-eight people from 2021. She stated that she has been working with the Met Council because she believes that they have under counted some of the units for places like Shorewood Landings and the Minnetonka Country Club. She noted that she did not think they would be willing to adjust the numbers very much and explained that if this number is revised, she will report that information to the Council. City Attorney Shepherd updated the Council on the Strawberry Lane condemnation and noted that the City has secured title and possession of the property so the project can move forward. He stated that commissioners have been selected to review and determine the amount of the award which will be forthcoming most likely in the fall. He stated that the May 26, 2023 City Council meeting, Councilmember Sanschagrin had expressed a desire to abstain from voting on a matter. He stated that Councilmember Sanschagrin admittedly did not have a conflict and the instruction and advice he gave him at the time was to go ahead and vote. He stated that Councilmember Sanschagrin has pointed out that under Roberts Rules of Order he had a right to abstain for any reason, not just because of a conflict. He stated that he wanted to apologize for making that error and noted that abstention, when there is not a conflict of interest is, in essence, a ‘no’ vote. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 12, 2023 Page 9 of 9 City Administrator Nevinski stated that there was discussion at the last meeting about the South Lake Minnetonka Police Department Joint Powers Agreement (JPA). He stated that the working group met last week to discuss some minor points within the JPA as well as the term of the agreement. He noted that he believes that they have agreed on a twenty year period of the JPA with an auto-renewal for another twenty years. He reviewed some of the other items discussed by the working group related to look-backs and arbitration. City Administrator Nevinski noted that there will be a budget workshop meeting for the South Lake Minnetonka Police Department next week and a draft of the JPA will also be shared at that time. B. Mayor and City Council Councilmember Sanschagrin expressed his appreciation to City Attorney Shepherd for clarifying his recent guidance and noted that he accepted his apology. Councilmember Callies stated that she went to the Public Works Facility for Public Works Week. She stated that it was nice to see things spruced up a bit, but noted that she feels they could use a more comfortable break room. 10. ADJOURN Sanschagrin moved, Maddy seconded, Adjourning the City Council Regular Meeting of June 12, 2023, at 8:22 P.M. All in favor, motion passed. ATTEST: Jennifer Labadie, Mayor Sandie Thone, City Clerk City Council Meeting Item Item Title/Subject: Approve Public Works Seasonal Hire: Spencer Ellis 2D Meeting Date: June 12, 2023 Prepared by: Sandie Thone, City Clerk/Human Resources Director Reviewed by: Matt Morreim, Public Works Director Attachments: None Background: On February 27, 2023 City Council approved the recruitment for two Public Works Seasonal positions. Each year the Public Works department hires temporary seasonal workers who perform maintenance in the city’s parks and other duties as assigned. Due to a previous new hire backing out of the position, the position was offered to the next candidate in line. On June 1st, staff interviewed candidate Spencer Ellis for the seasonal position. Spencer has experience working for the City of Minnetonka as a seasonal public works employee. He has experience as a baseball umpire and a basketball official. Spencer attended the University of South Dakota. Financial Considerations: As delineated below and planned for in the 2023 Budget. Action Requested: Staff respectfully recommends the city council approve Spencer Ellis’ appointment as Public Works Seasonal working full-time at the rate of $18.00 per hour. This temporary, seasonal position is not eligible for benefits and is exempt under the seasonal 185- calendar day limit for PERA. Spencer’s anticipated start date will be Monday, July 3, 2023. Motion, second and simple majority vote required. Connection to Vision/Mission: Consistency in providing residents quality public services, 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 Item 4A City Council Meeting Item Title/Subject: Presentation of 2023 Tour de Tonka Meeting Date: June 26, 2023 Prepared by: Marc Nevinski, City Administrator Background Tim Litfin, Executive Director of Minnetonka Community Education, will present plans for the 2023 Tour de Tonka, which is scheduled for Saturday August 5, 2023. 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 5A CITY OF SHOREWOOD FREEMAN PARK EDDY STATION PARK COMMISSION MEETING 6000 EUREKA ROAD TUESDAY, MAY 23, 2023 CATHCART PARK ND 26655 WEST 62 STREET DRAFT MINUTES 1. CONVENE PARK COMMISSION MEETING Chair Hirner convened the park tour meeting at 6:06 p.m. A. Roll Call Present: Chair Hirner, Commissioners Levy, Garske, Wenner, Czerwonka City Council Liaison Sanschagrin; Parks and Recreation Director Crossfield; Planning Director Darling; and Lead Field Supervisor Heitz Absent: none 2. AGENDA nd Motion by Garske, 2 by Levy to approve the agenda as shown. Motion passed unanimously. 3. PARK TOURS Discussion occurred on assigned Park Commission liaison report months and moving the July 11 Park Commission meeting to July 25. June – Levy August - Wenner Freeman Park: Items that were discussed during the tour:  Heitz described drainage projects that had been completed between softball fields  Bids are now open for the Freeman Park Trail project  Crossfield informed the group that three athletic associations would like to contribute towards the building of artificial turf fields for soccer, football and lacrosse at the park  Darling mentioned the buckthorn removal process that would be taking place via a grant that was awarded as well as the city matching funds.  There is a significant drop between the concrete pad for the south picnic shelter and the grass  The water fountain had broken parts and the pad was heaving  A commissioner recommending placing nerf targets throughout the park.  A commissioner noted a broken fence post Cathcart Park: Items that were discussed during the tour:  A receptacle is hanging from a light pole near the playground  Boards around hockey rink need painting or replacement  Request for more picnic tables in the park  Playground needs paint touch ups  Busted fence post on chain link fence. 4. ADJOURN AT 7:57 p.m. CITY OF SHOREWOOD BADGER PARK PARK COMMISSION MEETING 5745 COUNTRY CLUB RD TUESDAY, JUNE 13, 2023 MANOR PARK 20630 MANOR RD SOUTH SHORE COMM. PARK 5355 ST. ALBANS BAY RD CHRISTMAS LAKE BOAT LAUNCH 5655 MERRY LN DRAFT MINUTES 1. CONVENE PARK COMMISSION MEETING Chair Hirner convened the park tour meeting at 6:15 p.m. A. Roll Call Present: Chair Hirner, Commissioners Levy, Garske, Wenner, Czerwonka City Council Liaison Sanschagrin; Parks and Recreation Director Crossfield; Planning Director Darling; and Lead Field Supervisor Heitz, Councilmember Calles (joined at Manor Park) Absent: None 2. PARK TOURS Badger Park: Items that were discussed during the tour:  Heitz informed the group that they have had some minor issues with vandalism at the restrooms but nothing that rose to the level of needing to close for an extended period of time  Heitz explained the fence issues and additional netting requested for Badger field, Hirner requested staff to review what is typical of netting/fencing for Lacrosse fields  Holes in netting need to be tied up  Observed young trees in poor health/dead along trail near field  New signage is needed for restroom doors  Questions about rules for e-bikes  Discussion of if there should be a charcoal bin or would adding one cause more issues, Commissioners asked Heitz to make a recommendation in the future  Badger Park parking lots are tilted up, instead of straight down. Manor Park: Items that were discussed during the tour:  Net is torn on tennis courts  Retaining walls need work, likely replacement in a few years  Trip hazard on the sidewalk outside the restroom. South Shore Community Park: Items that were discussed during the tour:  General agreement that making the park senior focused was a good idea  Requested staff to engage with the community gardeners to see what they would like at the park  Discussed potential for a share shed for gardening tools, adaptive gardening tools and excess produce exchange area  Discussed potential for a little free library  Shade structures  Fire pit? Christmas Lake Boat Landing: Items that were discussed during the tour:  Boat landing could benefit from a bike rack installation. Inspectors at the site note that they have not noticed much demand in the past, but we may need to add in the future.  Picnic table 3. ADJOURN AT 8:02 CITY OF SHOREWOOD COUNCIL CHAMBERS PLANNING COMMISSION MEETING 5755 COUNTRY CLUB ROAD TUESDAY, JUNE 6, 2023 7:00 P.M. MINUTES CALL TO ORDER Chair Gorham called the meeting to order at 7:00 P.M. ROLL CALL Present: Chair Gorham; Commissioners Eggenberger, Huskins, and Holker; Planning Director Darling; and Council Liaison Maddy Absent: Commissioner Johnson 1. APPROVAL OF AGENDA Huskins moved, Holker seconded, approving the agenda for June 6, 2023, as presented. Motion passed 4/0. 2. APPROVAL OF MINUTES  May 2, 2023 Commissioner Holker noted a small change needed on page 2 under Review C, where it should state “may be amended from time to time”. Holker moved, Huskins seconded, approving the Planning Commission Meeting Minutes of May 2, 2023, as amended. Motion passed 4/0. 3. MATTERS FROM THE FLOOR – NONE 4. PUBLIC HEARINGS - NONE 5. OTHER BUSINESS A. Variance to Setback from Side yard Abutting a Public Street Location: 4805 Rustic Way Applicants: John and Amanda Lhotka Planning Director Darling gave an overview of the request for a variance to the setback for a side yard abutting a public street at 4805 Rustic Way. She explained that the applicants would like to expand their home by constructing an addition on the west side to provide a 3-stall garage, including a storage area and a bonus room upstairs. She stated that their request requires about a 9 foot variance. She noted that the on street parking in this area is very constrained so the hope is that the 3-stall garage would provide adequate parking for the family and allow for guest parking outside the garage area. She stated that it was inaccurately noted in the staff report that this property was riparian and clarified that it is not. She gave a brief overview of the analysis of the variance request and explained that staff is proposing that CITY OF SHOREWOOD PLANNING COMMISSION MEETING JUNE 6, 2023 Page 2 of 4 they reduce the amount of the variance request for storage area from about 9 feet to about 4 feet. Staff recommends approval of the variance request subject to the condition that they reduce the request to about 4 feet and acquire all necessary permits. Commissioner Huskins asked about the neighboring properties that have less than code requirements for setback. He asked if those properties were considered legally non- conforming. Planning Director Darling stated that she believed that most of them are legally non- conforming. She noted that one of them was constructed in the last 10-15 years and believes that they probably had a variance in order to construct. Commissioner Huskins asked if the other setbacks on the property conformed to code. Planning Director Darling stated that the other setbacks are conforming. Commissioner Huskins stated that the application is for more than just a 3-car garage and asked what the practical difficulties are that the Commission should be paying attention to. Planning Director Darling stated that when she looks at the application, the mud room that they are proposing meets required setbacks so she did not include any practical difficulties on that item. She stated that the only portion of the application where they need a variance is the portion outlined in the report and is primarily for the storage room and a bit of the garage space and upper level. Chair Gorham reviewed the recommendation presented by staff for the change in the variance. Commissioner Eggenberger asked which version of the proposed plan had been circulated to the neighbors. Planning Director Darling stated that it was the original plan and noted that the new updated plans were just received by the City earlier today. John Lhotka, 4805 Rustic Way, stated that they moved here in 2018 and love the neighborhood and the home. He stated that they have just had ongoing challenges when it comes to the space that they have, in particular, the garage area and explained some of the reasons why they had asked for the additional area for storage. He stated that he does not like this latest revised design because of the loss of the storage area that they had wanted. He stated that staff had mentioned that they may be able to put their stuff in a shed, but because of the lot he is not sure where they could put a shed, because the only real buildable area on the lot is where they are proposing the garage. He stated that both he and his wife work from home and noted that he has been working from his son’s room and the plans are for the upstairs space to be used for office space as well we extra storage for their home. He reiterated that he would prefer the original proposal rather than the alternative with the smaller amount of storage space available. Commissioner Huskins stated that in the drawings there are proposed decks and asked if there were currently decks. Mr. Lhotka stated that currently there is a deck off the back that they will lose and the front deck will be replaced in essentially the same location, but with different materials. He stated CITY OF SHOREWOOD PLANNING COMMISSION MEETING JUNE 6, 2023 Page 3 of 4 that they have spoken with basically all of their neighbors who are all in support of their request. He noted that he believed that many of them had submitted letters to the City. Tommy Everson, Everson Architects, Edina, reviewed the survey information that showed the buildable area of the lot, the footprint of the house, the proposed addition, and the setbacks. He stated that they could not find a similar situation in the City where the home on a peninsula with essentially 3 front yard setbacks. He stated that the lot is also irregularly shaped which makes much of it unbuildable. He stated that the solution proposed by City staff solves the parking issue, but does not solve the storage issue. He stated that Mr. Lhotka does not want to build a garage just for 3 cars and nothing else, so what staff has proposed is not practical. Commissioner Holker stated that he mentioned a few times that with the alternative plan that they would remain short on storage space, but there would be an extra stall. Mr. Everson stated that was true, but there is no street parking and the driveway is not conducive to parking and noted that the home is essentially a rambler with a lookout basement. Mr. Lhotka noted that the home is not even 3,000 square feet and noted that it may look larger than that because they have tall ceilings and a high/steep roofline. He noted that he feels that they have tried to do everything they can to minimize the impact and feels that their original plan did that but also provided the storage they need. Commissioner Eggenberger stated that he did not have a problem with the original plan as presented. He stated that he does not think the additional storage space changes site lines. He stated that the neighbors have all seen the original plan and were in favor of it. He would suggest that the Commission recommend approval of the original plan without the staff recommendation to reduce the size of the variance request. Chair Gorham asked about his thoughts on the minimum to alleviate the difficulty. Commissioner Eggenberger stated that he feels their original proposal to have storage space just makes sense. He stated that if he were a neighbor, he would rather have things in the storage space than just sitting out. He noted that to him, it is a common sense kind of situation and not that big of a deal. Commissioner Huskins stated that he agreed and noted that many of the other homes in the area do not conform with the setbacks for the zoning in the area. He stated that he had been persuaded by the applicants description of what their true needs are. He stated that given the character of the neighborhood and the support of the neighbors, he would be comfortable recommending approval of the original proposed plans without the changes recommended by staff. Commissioner Eggenberger noted that one of the overriding factors for him was that this property essentially has 3 front yards. Commissioner Holker stated that she is a bit on the fence because while a 3-car garage is great, many people live without them. Chair Gorham stated that one of the things that resonated with him was not being able to locate a shed on the property. He stated that the site is awkward and there are three front CITY OF SHOREWOOD PLANNING COMMISSION MEETING JUNE 6, 2023 Page 4 of 4 setbacks. He stated that the applicant appears to be trying to do the minimum, and he believes that there is enough practical difficulty present for him to vote for approval. Commissioner Holker stated that she was fine approving this request but questioned when the Commission would ‘put their stake in the ground’ and say this is the code. Chair Gorham stated that he wanted to make sure that there was a unique-enough situation here in order to justify granting this request. Eggenberger moved, Huskins seconded, to recommend approval of the variance to setback from side yard abutting a public street located at 4805 Rustic Way for John and Amanda Lhotka, as originally proposed by the applicant, with the conditions as proposed by staff without the reduction in the variance request suggested by staff. Motion passed 4/0. Planning Director Darling noted that this would come before the Council on June 26, 2023. 6. REPORTS A. Council Meeting Report Council Liaison Maddy gave an overview of the discussion and action taken at recent Council meetings. He noted that Councilmember Callies would be the liaison to the Commission for the remainder of the year. B. Draft Next Meeting Agenda Planning Director Darling stated that there are currently two incomplete applications in process. She noted that Councilmember Patrick Johnson has resigned which leaves an opening on the Council. She suggested that any interested Commissioners apply on the City’s website and noted that the deadline is June 9, 2023. C. Update Sign Code Amendments Planning Director Darling noted that she needs a bit more time to take a look at this information before bringing the amendments back to the Commission. 7. ADJOURNMENT Huskins moved, Holker seconded, adjourning the Planning Commission Meeting of June 6, 2023, at 8:00 P.M. Motion passed 4/0. City Council Meeting Item 7A Title/Subject: Approving Road Management Software MEETING TYPE Meeting Date: June 26, 2023 Regular Meeting Prepared by: Matt Morreim, Public Works Director Reviewed by: Marc Nevinski, City Administrator Attachments: Vaisala RoadAI Proposal w/ update terms and conditions Background in Recommendation: The city has a robust capital program for road maintenance and construction. Current one-time and ongoing capital funding for road improvements that exceeds $1M per year include street reconstruction, mill and overlay and pavement preservation funds (crack filling, sealing, etc.). Part of the identification and prioritization of these funds is done through the city’s pavement management program and inspections. In the past, the city tracked pavement conditions using the PASER inspection method and logging annual inspection data in a spreadsheet. The inspections were completed by city staff and were subjective, general and comparative to past years and other segments. Staff reviewed multiple options for pavement management inspection and condition rating and is recommending Vaisala RoadAI. Vaisala RoadAI utilizes high-quality video and artificial intelligence (AI) to assess pavement surface and facilities quickly and accurately. This data can be used to create reports to help strategic decisions regarding capital projects and routine maintenance or roads, signs and striping. Key benefits to utilizing the Vaisala RoadAI system are:  Specific road defect categorization with geolocation (new)  Identification of potholes including severity (new)  Full analysis roads multiple times per year (new)  Road condition analysis on smaller segments (<10’) across the road network (new)  Updated video of all streets each year (new)  Sign and striping inventory with geolocation (new)  All asset condition data is digitally stored  Data can be exported to utilize in a future asset management system to track ratings over an extended period of time.  Ability to analyze of parking lots and trails (new) 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 Cost of the program is as follows:  Year 1 – $8,428 o $7,428 – Vaisala services o $1,000 – One-time purchase of mobile device for video capture (Google Pixel)  Year 2 - $9,500 Annual renewal is optional and is detailed in the attached proposal. Financial or Budget Considerations: Cost of the program in 2023 would be $8,428. Adequate funding exists in the 2023 CIP – 404 Street Reconstruction Fund (item LR-99-099). The cost of $8,428 is below budget. Action Requested: Motion to approve the contract for Vaisala RoadAI and the one-time purchase of the compatible mobile device. 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. Item 8A City Council Meeting Item Title/Subject: Adopt Resolution Filling Council Vacancy and Appointing New Member Meeting Date: June 26, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: Resolution Background Following the resignation of Council Member Johnson, the Council declared a vacancy (Resolution 23-055) and began accepting applications for residents interested in being appointed to complete the term. Applications were accepted until 12:00 PM on Tuesday June thth 20, 2023. Interviews of all applicants were held on June 12 and June 26. Candidates to fill the Council vacancy are: Jason Allerding Pamela Magistad Michelle DiGruttolo Conrad Nill Nat Gorham Sarah St. Louis Ian Jamieson Scott Zerby Council should discuss the applicants, considering their application materials and interviews, and select a candidate to fill the remaining term. The selected candidate will be sworn in on July 10, 2023. Financial Considerations None. Action Requested Motion to approve the attached resolution appointing __________________ to fill the Council vacancy for the remainder of the term. A majority vote by the Council is required. Minnesota Statutes 412.02, Subd 2a state that in the event of a tie vote the Mayor shall make the appointment. 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 23-063 A RESOLUTION TO FILL A COUNCIL VACANCY WHEREAS, the City Council adopted Resolution No. 23-055 declaring a Council vacancy on May 22, 2023 ; and WHEREAS, less than two years remain in the term of the vacant council seat and the vacancy occurred before the first day to file for candidacy for the next regular city election; and WHEREAS, Minnesota Statutes 412.02, Subd 2a state a vacancy in an office should be filled by council appointment until an election is held, and that in the case of a tie vote, the Mayor shall make the appointment; and WHEREAS, the City advertised the vacancy using its newsletter, website, social media, message board and local newspaper; and WHEREAS, after discovering a technical problem with the online submission form, the City extend the submission deadline from Noon on June 9, 2023 to Noon on June 20, 2023; and WHEREAS, as of June 20, 2023, eight candidates have submitted applications to fill the Council vacancy; and WHEREAS, the City Council has reviewed the applications and interviewed interested candidates on June 12, 2023 and June 26, 2023; and WHEREAS, the Council has deliberatively discussed and considered the candidates as part of its regular meeting agenda on June 26, 2023. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shorewood appoints ____________________________ to fill the Council vacancy for the remainder of the term, which will expire January 2, 2025. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 26 day of June 2023. __________________________ Jennifer Labadie, Mayor ATTEST: ________________________________ Sandie Thone, City Clerk Item 8B City Council Meeting Item Title/Subject: Council Assignments Meeting Date: June 26, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: Current 2023 Council Assignments Background With the appointment of a new council member, the City Council should review the current committee and liaison assignments for the remainder of the year and make adjustments where appropriate. Currently the Excelsior Fire District Board Member and Council Rep/Park Commission Liaison (July to December) assignments are vacant. Financial Considerations None Action Requested Motion to approve the attached resolution revising the 2023 Council’s Annual Appointments. A majority vote by the Council is required. 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 23-064 A RESOLUTION REVISING AND DESIGNATING 2023 ANNUAL APPOINTMENTS TO CERTAIN OFFICES AND POSITIONS WITHIN THE CITY OF SHOREWOOD WHEREAS, it has been the policy of the Shorewood City Council to make annual appointments to fill certain offices and positions within the City government at the beginning of each year; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: 1. That the following persons are appointed to the following offices and positions: Acting Mayor: Councilmember Callies Council Rep/Park Commission Liaison: January – June 2023: Councilmember Sanschagrin July – December 2023: Councilmember Johnson _________ Council Rep/Planning Commission Liaison: January – June 2023: Councilmember Maddy July – December 2023: Councilmember Callies Lake Minnetonka Communications Commission: Councilmember Sanschagrin Alternate LMCC: Councilmember Maddy South Lake Minnetonka PD Coordinating Committee: Mayor Labadie Alternate SLMPD CC: Councilmember Callies Excelsior Fire District Board Member: Councilmember Johnson__________ Alternate EFD Board Member: Councilmember Maddy Weed Inspector: Mayor Labadie-per State Statute Assistant Weed Inspector(s): Chris Heitz & Luke Weber Electronic Funds Transfer Authority: Joe Rigdon, Michelle Nguyen, Marc Nevinski 2. That the following other appointments are made: City Attorney: Jared Shepherd, Campbell Knutson, P.A. City Prosecutor: Campbell Knutson, P.A. 3. Official Depositories: Alerus Bank, 4M Fund and other Depositories as necessary 4. Official Newspaper: Sun Sailor (and Laker Pioneer News as applicable) 5. In absence of the City Clerk, the City Administrator is authorized to sign contracts on behalf of the City. That such appointments shall take effect on the date hereof and shall continue for the remainder of the year or until such time as a successor is appointed by the City Council. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 26 day of June 2023. __________________________ Jennifer Labadie, Mayor ATTEST: ________________________________ Sandie Thone, City Clerk Item 8C City Council Meeting Item Title/Subject: Approval of South Lake Minnetonka Joint Powers Agreement Meeting Date: June 26, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: Resolution Joint Powers Agreement dated 6.13.2023 Background The Joint Powers Agreement that governs the South Lake Minnetonka Police Department is set to expire at the end of 2023. Last fall the cities of Shorewood, Greenwood, and Tonka Bay agreed to and approved an updated JPA but Excelsior delayed approval and instead proposed a host of changes to the JPA at the April 11, 2023 Coordinating Committee meeting. A number of the changes were relatively minor and generally not viewed as particularly controversial. These included:  Various clarifications and updating terminology.  Reducing five-year data intervals to three  Adjusting the procedure if an annual budget is not approved. (Sec 7, Subd 2, A and D, respectively)  Tasking the Operating Committee (City Administrators/Manager) with day to day supervision of the Chief. (Sec 6)  Adjustments to requirements for a party to withdrawal or dissolution of JPA (Secs 10 & 11)  Expenditure guidelines for the Chief (Sec 12) nd Council discussed the proposed modifications at it May 22 work session and assigned Mayor th Labadie and Councilmember Sanschagrin to the JPA working group, which met on June 7. The most notable changes included:  Duration of JPA: 20 year term, beginning August 1, 2023, which will automatically renew for an additional 20 year term unless a member submits notification two years in advance. (Section 8). o Terms of five, ten and indefinite periods were also discussed. Shorter periods were favored by Excelsior which wanted an opportunity to review the JPA for frequently in light of the changing policing practices, as well as provide members more leverage to propose changes. The working group felt that for the stability of the department and strategic planning, it was important to have a longer term for the JPA.  Formula: Retain the current formula structure, which includes using the 2006 arbitration formula. However, the working group agreed to reducing the data review intervals from five years to three years. (Section 7, B) o Several alternative formulas were discussed, including changes to the weight of the formula components. Although proposed changes may result in a simpler 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 formula, the majority of the working group believed it wasn’t worth the protracted process to explain and gain support of the member councils.  Additional Modifications: o A number of modifications were made to clarify or clear up existing language; added duties to the operating committee (Section 6, D) and the coordinating committee (Section 5, Subd 12); o Added the budget formula to the JPA (Section 7, Subd 2); o added language about the timing of a withdrawal (Section 10, Subd 1, A), revisions to the JPA in such and event (Subd 3) and clarified that the JPA remains in full force and effect until remaining parties vote for dissolution (Section 11, subd 1). o Allow the Chief to make unbudgeted expenditures up to $20,000 without the operating committee’s approval. (Section 12, G) o Set a time frame for dispute resolution (Section 14) Financial Considerations Currently Shorewood spends approximately $1.5M on policing. Not entering into an updated JPA would require contracting with another community – perhaps for more money and less service – or establishing its own police department, likely at two to three times the current operating cost. Action Requested Motion to adopt the attached resolution approving the revised joint powers agreement and authorizing the Mayor to execute the finished draft, allowing for any non-substantive changes. A majority vote by the Council is required. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-065 A RESOLUTION APPROVING A REVISED JOINT POWERS AGREEMENT GOVERNING THE SOUTH LAKE MINNETONKA POLICE DEPARTMENT WHEREAS, the Cities of Shorewood, Excelsior, Tonka Bay and Greenwood are members of the South Lake Minnetonka Police Department, which is established through a joint powers agreement, originally executed in 1973 and modified from time to time pursuant to Minnesota Statutes Section 471.59; and WHEREAS, the current joint powers agreement is due to expire at the end of 2023; and WHEREAS, the current member cities desire to continue to operate the joint powers agreement in order to provide high quality police services to the community at a cost effective manner; and WHEREAS, the member cities have discussed and agreed to revisions to the joint powers agreement, which are reflected in the draft dated June 13, 2023 and attached to this resolution as Exhibit A; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shorewood approves of and authorizes the Mayor to execute the finished draft of the joint powers agreement attached as Exhibit A, allowing for any non-substantive changes. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 26 day of June 2023. __________________________ Jennifer Labadie, Mayor ATTEST: ________________________________ Sandie Thone, City Clerk EXHIBIT A Joint Powers Agreement dated June 13, 2023 South Lake Minnetonka Police Department Item 8D City Council Meeting Item Title/Subject: Approve the SLMPD 2024 Budget Meeting Date: June 26, 2023 Prepared by: Marc Nevinski, City Administrator Reviewed by: Joe Rigdon, Finance Director Attachments: Police Chief 2024 Budget Power Point Resolution Background The SLMPD must submit its proposed 2024 budget to the member cities for approval. The th Coordinating Committee will consider the final 2024 budget on July 12. The proposed 2024 SLMPD budget includes several options that the Coordinating Committee reviewed in a work th session on June 14.  Option 1 increases the budget by 6.3%, due largely to wage increases for officers, and would mean a cost to Shorewood of $1,573,891 for policing services in 2024.  Option 2 limits the increase to 4.7% by removing $47,000 of training and education expenses. This increase would mean a cost to Shorewood of $1,550,525 for policing services in 2024, a difference of $23,366.  Option 3 further limits the increase to 4.0% by removing both the aforementioned $47,000 and an additional $22,800 in uniforms and gear. This increase would mean a cost to Shorewood of $1,539,191 for policing services in 2024, a difference of $34,700. An additional and important factor for Council to know is that the 2023 Legislature provided cities with additional police funding in the form of a Public Safety Aid Package. The funds are allocated to the cities (not the SLMPD) for eligible uses, including retention/ recruitment, training, equipment, wages, mental health response, engagement, and violence prevention. Capital improvements, tactical vehicles and chemical munitions are prohibited uses. The Coordinating Committee felt it was important not use the funds to pay for operating expenses, but rather the funds should be put towards one-time expenditures. However, the Committee concluded that the decision would be up to each member’s city council as to how it wished to fund police services. Shorewood is anticipated to receive $342,512 from the aid package and the amount must be stth certified by the commissioner by August 1. Funds will be received by December 26. 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 Financial Considerations The Council will be committing to funding the SLMPD without having completed its own 2024 budget. The 2023 cost for SLMPD was $1,484,218, and the increase for 2024 could be as high as $1,573,891, assuming option 1, an increase of $89,673. Staff believes it is important to invest in officer training, education, equipment and gear, and that delaying investments now often means paying for them later at increased cost. Staff also agrees that one-time funding should be used to pay for one-time, finite, expenses and not ongoing, annual operating costs, as eventually those one-time funds run out and but the costs to operate continue indefinitely. Staff recommends the Council approve Option 1 and then consider how it may wish to fund the increase using either levy dollars, aid dollars or a combination of both during its 2024 budget discussions. Action Requested Motion to adopt resolution approve the South Lake Minnetonka Police Department 2024 Budget, Option 1 – a 6.3% increase. A majority vote by the Council is required. RESOLUTION 23-066 CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA A RESOLUTION MAKING APPROVING THE 2024 ANNUAL OPERATING BUDGET OF THE SOUTH LAKE MINNETONKA POLICE DEPARTMENT. WHEREAS, the City of Shorewood is a member of the South Lake Minnetonka Police Department through a joint powers agreement which also includes the Ci?es of Excelsior, Greenwood, Tonka Bay; and WHEREAS, under the terms of the joint powers agreement, member ci?es must unanimously approve the annual opera?ng budget; and WHEREAS, the Chief of Police presented a proposed 2024 opera?ng budget for review by the Coordina?ng Commi?ee for the South Lake Minnetonka Police Department on June 14, 2023; and WHEREAS, the Coordina?ng Commi?ee discussed the proposed budget and recommended its considera?on by the Member’s city councils; and WHEREAS, the Shorewood City Council has reviewed the proposed 2024 opera?ng budget and finds it reasonable and appropriate to provide the desired level of public safety within the City and the South Lake Minnetonka area. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA the proposed 2024 opera?ng budget of the South Lake Minnetonka Police Department, reflec?ng a 6.3% increase and Shorewood’s share at $1,573,891, is hereby approved. th Adopted by the Shorewood City Council this 26 day of June 2023. __________________________ Jennifer Labadie, Mayor A?est: ____________________________ Sandie Thone, City Clerk City of Shorewood Council Meeting Item 8E Title/Subject: Bond Sale Results Meeting Date: June 26, 2023 MEETING Prepared By: Joe Rigdon, Finance Director TYPE REGULAR Reviewed By: Marc Nevinski, City Administrator Attachments: Letter from Shannon Sweeney of David Drown Associates Resolution providing for the issuance and sale of bonds Standard & Poors Bond Rating Report Background: In order to finance the following 2023 street and utility projects, the Council previously authorized the competitive negotiated sale of General Obligation street reconstruction and utility revenue bonds:  Birch Bluff Road  Lift Station #11 Rehabilitation The 2023A bond sale is scheduled for June 26, 2023 and Shannon Sweeney from David Drown Associates will be at the City Council meeting to present the results of the sale. The attached draft of the bond award resolution will be updated with the sale results. On June 21, 2023, Standard & Poors assigned its AA+ rating to the 2023A bonds, and also affirmed its AA+ rating on the City’s outstanding General Obligation debt. The ratings report is attached. Recommended Action: Staff recommends approval of a Resolution providing for the issuance and sale of $5,645,000 General Obligation Street Construction and Utility Revenue Bonds, Series 2023A, 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: June 26, 2023 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 June 26, 2023, at 7:00 P.M., for the purpose, in part, of authorizing the issuance and awarding the sale of $5,645,000 General Obligation Street Reconstruction and Utility Revenue Bonds, Series 2023A. The following members were present: and the following were absent: Member ______________ introduced the following resolution and moved its adoption: RESOLUTION NO. 23-067 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $5,645,000 GENERAL OBLIGATION STREET RECONSTRUCTION AND UTILITY REVENUE BONDS, SERIES 2023A, 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 $5,645,000 General Obligation Street Reconstruction and Utility Revenue Bonds, Series 2023A (the "Bonds" or individually a "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"); and 2. Section 444.075 to finance improvements to the municipal water system, sanitary sewer system and storm sewer system (collectively, the "Utility Improvements"); and B. WHEREAS, on May 11, 2020, following duly published notice thereof, the Council held a public hearing on the issuance of approximately $___________________ 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 reconstruction bonds was filed with the City Administrator within 30 days after the public hearing on May 11, 2020; and 127512690v1 D. WHEREAS, the Bonds, 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 (1) "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; (2) "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; and (3) "Utility Portion" of the General Obligation Street Reconstruction and Utility Revenue Bond, Series 2022A, in the original principal amount of $7,570,000, dated December 1, 2022 (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 advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by David Drown; and H. WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the City Administrator, or designee, at the offices of David Drown at 11:00 A.M. this same day pursuant to the Terms of Offering established for the Bonds; and I. WHEREAS, it is in the best interests of the City that the Bonds be issued in book- entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Shorewood, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of _____________________________ _______________________ (the "Purchaser"), to purchase the Bonds in accordance with the Terms of Offering, at the rates of interest hereinafter set forth, and to pay therefor the sum of $______________, plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received and is hereby accepted, and the Bonds are hereby awarded to the Purchaser. The Finance Director is directed to retain the deposit of the Purchaser. 2 127512690v1 2. Bond Terms. (a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds shall be dated July 12, 2023, as the date of original issue and shall be issued forthwith on or after such date in fully registered form, shall be numbered from R-1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations") and shall mature on February 1 in the years and amounts as follows: Amount Year Amount Year 2025 $ 2035 $ 2026 2036 2027 2037 2028 2038 2029 2039 2030 2040 2031 2041 2032 2042 2033 2043 2034 2044 As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Allocation. The aggregate principal amount of $___________ maturing in each of the years and amounts hereinafter set forth are issued to finance the Street Reconstruction Project (the "Reconstruction Portion"); and the aggregate principal amount of $___________ maturing in each of the years and amounts hereinafter set forth are issued to finance the Utility Improvements (the "Utility Portion"): Street Reconstruction Year Portion Utility Portion Total Amount 2025 $ $ $ 2026 2027 2028 2029 2030 2031 2032 3 127512690v1 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 If Bonds are prepaid, the prepayments shall be allocated to the portions of debt service (and hence allocated to the payment of Bonds 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. (c) Book Entry Only System. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any 4 127512690v1 Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10, references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book-entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. 5 127512690v1 (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than fifteen calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (d) Termination of Book-Entry Only System. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (d) shall limit or restrict the provisions of paragraph 10. (e) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 6 127512690v1 3. Purpose. The Street Reconstruction Portion of the Bonds shall provide funds to finance the Street Reconstruction Project. The Utility Portion of the Bonds 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 Bonds. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2024, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year Interest Rate Maturity Year Interest Rate 2025 % 2035 % 2026 2036 2027 2037 2028 2038 2029 2039 2030 2040 2031 2041 2032 2042 2033 2043 2034 2044 5. Redemption. All Bonds maturing on February 1, 2031 and thereafter, shall be subject to redemption and prepayment at the option of the City on February 1, 2030, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the City; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds at least thirty (30) days prior to the date fixed for redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, 7 127512690v1 that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. U.S. Bank Trust Company, National Association, in St. Paul, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: 8 127512690v1 UNITED STATES OF AMERICA STATE OF MINNESOTA HENNEPIN COUNTY CITY OF SHOREWOOD R-_______ $_________ GENERAL OBLIGATION STREET RECONSTRUCTION AND UTILITY REVENUE BOND, SERIES 2023A Interest Rate Maturity Date Date of Original Issue CUSIP % February 1, July 12, 2023 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THE CITY OF SHOREWOOD, HENNEPIN COUNTY, MINNESOTA (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, unless called for earlier redemption, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2024, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of U.S. Bank Trust Company, National Association, in St. Paul, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer, acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of 9 127512690v1 this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. Optional Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2031, and thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1, 2030, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the Issuer; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected Holder of the Bonds at least thirty (30) days prior to the date fixed for redemption. Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear interest on the specified redemption date, provided funds for their redemption have been duly deposited. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $5,645,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on June 26, 2023 (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 10 127512690v1 Obligation Street Reconstruction and Utility Revenue Bonds, Series 2023A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or the Holder's attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution 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 Holders of the Bonds that it will impose and collect 11 127512690v1 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 Bonds, as defined in the Resolution, adequate to pay all principal and interest when due on the Utility Portion of the Bonds; 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 Bonds 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 City Administrator, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration: Registrable by: U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION Payable by: U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION CITY OF SHOREWOOD, BOND REGISTRAR'S HENNEPIN COUNTY, MINNESOTA CERTIFICATE OF AUTHENTICATION This Bond is one of the /s/ Facsimile______________________ Bonds described in the Mayor Resolution mentioned within. U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION /s/ Facsimile______________________ St. Paul, Minnesota, City Administrator Bond Registrar By: Authorized Signature 12 127512690v1 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - ___________ as custodian for ______________ (Cust) (Minor) under the _____________________ Uniform (State) Transfers to Minors Act Additional abbreviations may also be used though not in the above list. ___________________________________________________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________________________________ the within Bond and does hereby irrevocably constitute and appoint _________________ attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated:_____________________ ___________________________ Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: ___________________________ Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not affect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: ________________________________________ ________________________________________ ________________________________________ (Include information for all joint owners if the Bond is held by joint account.) 13 127512690v1 8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of the City by the signatures of its Mayor and City Administrator and be sealed with the seal of the City; provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate seal has been omitted. In the event of disability or resignation or other absence of either officer, the Bonds may be signed by the manual or facsimile signature of the officer who may act on behalf of the absent or disabled officer. In case either officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is July 12, 2023. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City. 14 127512690v1 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or the Holder's attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Finance Director is hereby authorized to negotiate and execute the terms of said agreement. 11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby established a special fund to be designated "General Obligation Street Reconstruction and Utility Revenue Bonds, Series 2023A 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. 15 127512690v1 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 Bonds have 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 Bonds, less capitalized interest, and plus any amount paid for the Bonds in excess of the minimum bid. 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 Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes herein levied 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: (i) Street Reconstruction Project Debt Service Subaccount. To the Street Reconstruction Project Debt Service Subaccount there shall be credited: (A) capitalized interest in the amount of $______________ (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Street Reconstruction Portion of the Bonds on or before February 1, 2024; (B) all collections of taxes herein and hereafter levied for the payment of the Street Reconstruction Portion of the Bonds; (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 Street Reconstruction Project 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 Street Reconstruction Project Debt Service Subaccount. The Street Reconstruction Project Debt Service Subaccount shall be used solely to pay the principal and interest on the Street Reconstruction Portion of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. 16 127512690v1 (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 Bonds; (B) all collections of 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 Bonds 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 Bonds 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 Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds 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 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 Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 16. Covenants Relating to the Street Reconstruction Portion of the Bonds. (a) Tax Levy. To provide moneys for payment of the principal and interest on the Street Reconstruction Portion of the Bonds 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 17 127512690v1 See Attached Schedule in Exhibit B (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 Bonds, 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 Bonds. The tax levies shall be irrepealable so long as any of the Street Reconstruction Portion of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 17. Covenants Relating to the Utility Portion of the Bonds. (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 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 Bonds. 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 Bonds 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. (c) Covenant to Maintain Rates and Charges. In accordance with Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the Holders of the Bonds 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 Bonds. 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." 18. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the net revenues of the System appropriated and pledged to the payment of principal and interest on the Utility Portion of the Bonds, 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 18 127512690v1 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 Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 19. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 20. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: (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 19 127512690v1 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 Bonds, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Bonds. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds, and 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 Bonds are issued, shall be treated as made on the day the Bonds are issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect that such action will not impair the tax-exempt status of the Bonds. 21. Continuing Disclosure. The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to the Municipal Securities Rulemaking Board (the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. (b) Provide or cause to be provided to the MSRB notice of the occurrence of certain events with respect to the Bonds in not more than ten (10) business days after the occurrence of the event, in accordance with the Undertaking. (c) Provide or cause to be provided to the MSRB notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking, in not more than ten (10) business days following such occurrence. (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these 20 127512690v1 covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and City Administrator, or any other officer of the City authorized to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 22. Certificate of Registration and Tax Levy. A certified copy of this resolution is hereby directed to be filed with the with the Auditor/Treasurer of Hennepin County, Minnesota, together with such other information as the Auditor/Treasurer shall require, and there shall be obtained from the Auditor/Treasurer a certificate that the Bonds have been entered in the Auditor/Treasurer's Bond Register and that the tax levy required by law has been made. 23. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 24. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 25. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment earnings to the United States. The City expects to satisfy the 24-month exemption for gross proceeds of the Bonds as provided in Section 1.148-7(d)(1) of the Regulations. The Mayor and/or City Administrator and/or Finance Director are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the City. 26. Not Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; 21 127512690v1 (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2023 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2023 have been designated for purposes of Section 265(b)(3) of the Code; and (f) the aggregate face amount of the Bonds does not exceed $10,000,000. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 27. Official Statement. The Official Statement relating to the Bonds prepared and distributed by David Drown is hereby approved and the officers of the City are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and accuracy of the Official Statement. 28. 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. 29. 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. 22 127512690v1 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 $5,645,000 General Obligation Street Reconstruction and Utility Revenue Bonds, Series 2023A. WITNESS my hand on June 26, 2023. ________________________________ City Clerk 23 127512690v1 EXHIBIT A PROPOSALS \[To be supplied by David Drown Associates, Inc.\] A-1 127512690v1 EXHIBIT B TAX LEVY SCHEDULE \[To be supplied by David Drown Associates, Inc.\] 127512690v1 Item 8F City Council Meeting Item Title/Subject: Approval of Red’s Savoy Pizza Wine and Strong Beer Liquor License Meeting Date: June 26, 2023 Prepared by: Sandie Thone, City Clerk/Human Resources Director Reviewed by: Brenda Pricco, Deputy City Clerk Attachments: Red’s Savoy Pizza Wine and Strong Beer Liquor License Resolution Background Shorewood City Code Chapter 401, Liquor Regulations provides for consideration of licensing establishments to sell on and off-sale liquor in the city limits. The following establishment is requesting council consideration in issuing a new liquor license: Applicant Address License_______ Reed Daniels 19215 MN Hwy 7 1) Wine* Garrison Reed LLC Shorewood, MN 55331 2) 3.2% Malt Liquor* DBA Red’s Savoy Pizza *This combination allows for the sale of strong beer as well as wine The applicant, Reed Daniels/Garrison Reed LLC, has successfully passed a background investigation performed by the South Lake Minnetonka Police Department, has successfully submitted all the required documentation, met the insurance liability requirements, submitted the required city licensing/investigation fees of $500 for new liquor license investigation fee, $1,000 for the annual Wine License, and $300 for the annual 3.2 % Malt Liquor License. A holder of a Wine License and a 3.2 Percent Malt Liquor License issued to the same establishment pursuant to MN Statute §340A.411 is allowed to sell intoxicating malt liquor (strong beer) without an additional license. Therefore, Red’s Savoy Pizza, with the approval of these licenses by both the city and the state, will be allowed to sell wine and strong beer at this location. The applicant has met the preliminary State of Minnesota, Department of Public Safety, Alcohol and Gambling Enforcement requirements as well. Once the city council has approved the license it will be forwarded to the State of Minnesota, Department of Public Safety, Alcohol and 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 Gambling Enforcement department who will perform a premises inspection pursuant to the requirements for obtaining a new liquor license issued in the state. Financial Considerations Licensing fees as set forth in the City’s fee schedule have been duly collected. Action Requested Staff respectfully recommends the city council approve Resolution 23-068 Approving a New Wine, and a 3.2 Percent Malt Liquor License effective upon the State of Minnesota, Department of Public Safety, Alcohol and Gambling Enforcement approval for Reed Daniels, Garrison Reed LLC, DBA Red’s Savoy Pizza located at 19215 State Highway 7 in Shorewood. Motion, second, and simple majority vote required. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-068 RED’S SAVOY PIZZA WINE/3.2 PERCENT MALT LIQUOR LICENSE WHEREAS, Shorewood City Code, Chapter 401 provides that no person may directly or indirectly, on any pretense or by any device, sell, barter, keep for sale, charge for possession, or otherwise dispose of alcoholic beverages as part of a commercial transaction without having obtained the required license or permit; and WHEREAS, in addition to the requirements set forth by the Minnesota Department of Public Safety, Alcohol and Gambling Enforcement Division, Shorewood City Code provides that the applicant shall complete an application for a liquor license, pay the required licensing fee, fulfill insurance coverage requirements and complete a successful background investigation; and WHEREAS, Garrison Reed LLC, DBA Red’s Savoy Pizza and owner Reed Daniels has successfully completed the application process, satisfying the requirements as delineated above for the issuance of a wine/3.2 percent malt liquor license for the City of Shorewood, conditional approval will be granted for the period of one year, effective on the date the Minnesota Department of Public Safety, Alcohol and Gambling Enforcement Division certifies that the applicant has passed the new license inspection and met all criteria for approval by the State agency as well as being consistent with the requirements and provisions of Chapter 401 of the Shorewood City Code. We anticipate this license period to be effective once approved by the State and good through May 31, 2024 at which time the applicant/license holder will be up for stst renewal as provided in Shorewood’s liquor license renewal terms of June 1 to May 31 of each year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, the following license is issued to the applicant as follows is approved: Applicant Address License_______ Reed Daniels 19215 MN State Highway 7 Wine*/3.2 % Malt Liquor* DBA/Red’s Savoy Pizza Shorewood, MN 55331 *allows strong beer ADOPTED BY THE CITY COUNCIL of the City of Shorewood this 26th day of June 2023. _______________________________ ATTEST: Jennifer Labadie, Mayor _________________________________ Sandie Thone, City Clerk Item 8G City Council Meeting Item Title/Subject: Adult Use Cannabis Discussion Meeting Date: June 26, 2023 Prepared by: Marc Nevinski, City Administrator Reviewed by: Jared Shepherd, City Attorney Attachments: LMC Summary of Adult Use Cannabis Background The 2023 legislature legalized the production, sale and use of recreational cannabis by adults. During the legislative session, cities lobbied for the inclusion of local controls (licensing, fees) in order to manage the impacts of legalized sale and use in communities. Significant local control is largely preempted by the legislation. The attached FAQ from the League of Minnesota Cities provides a summary of the law. The City Attorney and McKaia Dykema, a law clerk from Campbell Knutson, will provide a presentation as well. At this time, staff requests direction from Council on the two following questions: 1. Hemp-derived THC Moratorium (Ordinance No. 592) – Following legislation in 2022 legalizing the sale of edibles containing hemp-derived THC, the City enacted a moratorium on the sale of such products. The moratorium is set to expire at the end of July. Unfortunately the new law does not authorize an extension of THC product sales moratorium, so Council has the following options. A. Develop licensing regulations for the sale of hemp-derived THC. Such regulations will only be in effect until January 2025, but will require staff time and resources to develop and enforce. B. Do not regulate the sale of hemp-derived THC products until January of 2025. 2. Adult Use Cannabis Moratorium – Council may wish to establish a moratorium on the sale of Adult Use Cannabis until such time as additional guidance can be provided by the State and local regulations can be developed. Note: The Council may also decide not to enact a cannabis moratorium but may develop regulations in the interim on zoning, registration, and enforcement. Financial Considerations None at this time. Action Requested Council direction is requested 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 General information Q1. What does the new law do? A1. The new law legalizes the possession, use, manufacturing, and sale of certain cannabis products within the state. It establishes the Office of Cannabis Management (OCM), which is charged with, among other things, enforcing an organized system of regulation for the cannabis industry and the hemp consumer industry. The law also:  Establishes labor standards for the use of cannabis and hemp products by employees and testing of employees.  Establishes expungement procedures for certain individuals previously convicted of a crime related to cannabis. Possession, use, and home growth under this new law will be legal beginning Aug. 1, 2023, and legal sales are expected to begin in January of 2025. Various other effective dates are noted throughout these FAQs as they apply. Q2. How much cannabis can a person legally possess? A2. This law allows a person of 21 years of age or older to:  Use, possess, or transport cannabis paraphernalia.  Possess 2 ounces or less of cannabis flower in a public place.  Possess 2 pounds or less of cannabis flower in a person’s residence.  Possess or transport 8 grams or less of adult-use cannabis concentrate.  Possess or transport edible products infused with a total of 800 milligrams or less of tetrahydrocannabinol.  Give away cannabis flower and products in an amount that is legal for a person to possess in public. The law authorizes an individual to use adult-use cannabis flower and adult-use cannabis products:  In a private residence including the individual’s curtilage or yard.  On private property, unless the owner of the property prohibits the use of the products.  On the premises of an establishment or event licensed to permit on-site consumption. Q3. Are cannabis products legal under federal regulations? A3. Marijuana remains a Schedule I drug under federal law, meaning it is illegal, with limited exceptions, to grow, process, sell or possess marijuana from a federal standpoint. Q4. Can a person grow their own cannabis? A4. The law authorizes a person to cultivate up to eight cannabis plants, of which four or fewer may be mature, flowering plants provided that it is in an enclosed, locked space that is not open to public view. Q5. Does the Clean Indoor Air Act apply to cannabis products? A5. A person may not use cannabis flower, cannabis products, or hemp-derived consumer products in a manner that involves the inhalation of smokes, aerosol, or vapor at any location where smoking is prohibited under the Clean Indoor Air Act. Q6. What types of licenses will the OCM issue? A6. The OCM will issue the following types of licenses:  Cannabis microbusiness.  Cannabis mezzo business.  Cannabis cultivator.  Cannabis manufacturer.  Cannabis retailer.  Cannabis wholesaler.  Cannabis transporter.  Cannabis testing facility.  Cannabis event organizer.  Cannabis delivery service.  Lower-potency hemp edible manufacturer.  Medical cannabis cultivator.  Medical cannabis processor.  Medical cannabis retailer. Q7. Can cannabis start to be sold now? A7. Cannabis will not be able to be sold until the Office of Cannabis Management is established and able to issue licenses. Communication from state agencies indicate an intended timeline of January 2025 for when sales will be live to the public. Before beginning sales, a cannabis retailer must obtain a local retail registration. Any business attempting to sell cannabis products before licenses are issued should be reported to the Department of Health. Q8. Under the new law, where can adult-use cannabis be sold? A8. Cannabis products and hemp derived consumer products may only be sold in business with a license issued by the OCM. Q9. Could my city’s municipal liquor store sell adult-use cannabis? A9. The law adds edible cannabinoid products as an item allowed to be sold at exclusive liquor stores, including municipal liquor stores. The ability of cities to sell cannabinoid products at a liquor store is unique to Minnesota and may create new and complex coverage and liability questions around these products. The League and the League of Minnesota Cities Insurance Trust (LMCIT) are working on guidance for cities considering selling cannabinoid products at their municipal liquor stores. This information will be updated when such guidance is drafted. Q10. Can my city have a municipal cannabis retail store? A10. The new law authorizes cities to operate a municipal cannabis retail store. This is a unique opportunity for Minnesota cities and more research is needed to determine the legal ramifications of such an operation. Taxation and revenue Q11. How will these new products be taxed? A11. A tax equal to 10% of gross receipts from retail sales of taxable cannabis products will be imposed on any taxable cannabis product retailer that sells cannabis products to customers. Q12. Can our city impose its own cannabis tax? A12. Cities are prohibited from imposing a tax solely on the sale of taxable cannabis products. Q13. Do sales taxes apply? A13. The state sales tax and local sales taxes apply to cannabis and hemp-derived cannabinoid products. Q14. Who receives taxes collected from the sale of cannabis products? A14. Revenues from the retail sales of cannabis products will be divided, with 80% going to the general fund and 20% to the local government cannabis aid account. Cities will receive 50% of the amount certified to the local government cannabis aid account. Q15. What is considered a “taxable cannabis product retailer?” A15. A taxable cannabis product retailer is a retailer that sells any taxable cannabis products. This includes a cannabis retailer, cannabis microbusiness, cannabis mezzo business, and lower-potency hemp edible retailer. Minn. Stat § 295.81, subd. 1(s). Q16. How much revenue will cities receive from the local government cannabis aid fund? A16. Half of the amount certified in the cannabis local government aid fund will go to cities. Cities will receive a distribution proportional to the number of cannabis businesses located in the city as compared to the number of cannabis businesses in all cities. Q17. When will cities receive revenue from the local government cannabis aid account? A17. The gross receipts tax goes is effective for gross receipts received after June 30, 2023. The law requires the Department of Revenue to certify the amount to be paid to each city by Sept. 1, 2024, and every year after, and the full amount must be paid on Dec. 26, 2024, and every year after. Enforcement and public safety Q18. How is the new law enforced? A18. All licensing issues will be enforced by the Office of Cannabis Management. Until the OCM is up and running, the currently legal hemp-derived edible products under Minn. Stat. § 151.72 will be temporarily regulated by the Department of Health, which is taking over the enforcement of edible cannabis products previously done by the Board of Pharmacy. Local law enforcement may still enforce illegal possession or use crimes where applicable. Access the Department of Health’s site on the temporary regulation of lower-potency hemp edibles Q19. What are penalties for someone selling edible cannabis products that do not meet the state’s requirements? A19. If a retailer is found to be selling edible cannabis products that do not meet state requirements, the Department of Health may embargo the products and potentially destroy the products with the retailer paying for all court costs and fees, storage, and other proper expenses. Q20. Can a person still be charged with possession of cannabis products? A20. Beginning Aug. 1, 2023, the following actions are considered cannabis possession crimes:  Possession of cannabis in the first degree. (Punishable by imprisonment for not more than five years or payment of a fine of not more than $10,000, or both). o More than 2 pounds but not more than 10 kilograms of cannabis flower. o More than 160 grams but not more than 2 kilograms of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 16 grams but not more than 200 grams of THC.  Possession of cannabis in the second degree. (Punishable by imprisonment for not more than one year or payment of a fine of not more than $3,000, or both). o More than 1 pound but not more than 2 pounds of cannabis flower in any place other than the person’s residence. o More than 80 grams but not more than 160 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 8 grams but not more than 16 grams of THC.  Possession of cannabis in the third degree. (Punishable by imprisonment for not more than 90 days or payment of a fine of not more than $1,000, or both). o More than 4 ounces but not more than 1 pound of cannabis flower in any place other than the person’s residence. o More than 16 grams but not more than 80 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 1,600 milligrams but not more than 8 grams of THC.  Possession of cannabis in the fourth degree. (Punishable as a petty misdemeanor). o More than 2 ounces but not more than 4 ounces of cannabis flower in any place other than the person’s residence. o More than 8 grams but not more than 16 grams of cannabis concentrate. o Edible cannabinoid products infused with more than 800 milligrams but not more than 1,600 milligrams of THC. Q21. Can a person still be charged with sale of cannabis products? A21. Beginning Aug. 1, 2023, the following actions are considered cannabis sale crimes:  Sale of cannabis in the first degree. Punishable by imprisonment for not more than five years or to a payment of a fine of not more than $10,000 or both if a person unlawfully sells more than 2 ounces of cannabis flower; more than 8 grams of cannabis concentrate; or edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 800 milligrams of THC: o To a minor and the defendant is more than 36 months older than the minor. o Within 10 years of two or more convictions of sale in the second or third degree. o Within 10 years of a conviction of first degree  Sale of cannabis in the second degree. May be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both if an adult: o Unlawfully sells more than 2 ounces of cannabis flower; more than 8 grams of cannabis concentrate; or edible cannabis products, lower- potency hemp edibles, or hemp-derived consumer products infused with more than 800 milligrams of THC:  In a school zone, a park zone, or a drug treatment facility; or  Within 10 years of a conviction of sale of cannabis in the first, second, or third degree. o Unlawfully sells cannabis flower, cannabis concentrate, edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products to a minor.  Sale of cannabis in the third degree. An adult may be sentenced to imprisonment for not more than 90 days or to payment of a fine of not more than $1,000, or both, if the adult unlawfully sells: o More than 2 ounces of cannabis flower. o More than 8 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 800 milligrams of THC.  Sale of cannabis in the fourth degree. An adult is guilty of a petty misdemeanor if they unlawfully sell: o Not more than 2 ounces of cannabis flower. o Not more than 8 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with not more than 800 milligrams of THC. A sale for no remuneration by an individual over the age of 21 to another individual over the age of 21 is not unlawful as cannabis sale in the fourth degree.  Sale of cannabis by a minor. A minor is guilty of a petty misdemeanor if the minor unlawfully sells: o Not more than 2 ounces of cannabis flower. o Not more than 8 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with not more than 800 milligrams of THC. A minor is guilty of a misdemeanor if the minor unlawfully sells:  o More than 2 ounces of cannabis flower. o More than 8 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 800 milligrams of THC. Q22. Can a person be charged with a crime for cultivating cannabis? A22. Beginning Aug. 1, 2023, the following are crimes related to the cultivation of cannabis.  Cultivation of cannabis in the first degree. A person is guilty of cultivation of cannabis in the first degree and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if the person unlawfully cultivates more than 23 cannabis plants.  Cultivation of cannabis in the second degree. A person is guilty of cultivation of cannabis in the second degree and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both, if the person unlawfully cultivates more than 16 cannabis plants but not more than 23 cannabis plants. Q23. Can a person be charged with a crime for using cannabis in public? A23. Beginning Aug. 1, 2023, a city may adopt an ordinance establishing a petty misdemeanor offense for a person who unlawfully uses cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in a public place other than the following.  A private residence including the person’s curtilage or yard.  Private property not generally accessible by the public, unless the person is explicitly prohibited from consuming cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products on the property by the owner of the property.  The premises of an establishment or event licensed to permit on-site consumption. Q24. How do our officers determine if a driver is under the influence of adult- use cannabis? A24. Officers will need to use the same process for determining if a person is under the influence of cannabis while operating a vehicle as they would have prior to the new law being enacted. Q25. Is it a crime to use cannabis products while operating a motor vehicle? A25. It is a misdemeanor for a person to use cannabis flower, a cannabis product, a lower-potency hemp edible, a hemp-derived consumer product, or any other product containing an artificially derived cannabinoid in a motor vehicle when the vehicle is on a street or highway. Q26. Is it a crime to possess cannabis products in a motor vehicle? A26. Beginning Aug. 1, 2023, a person may be charged with a misdemeanor if they possess cannabis products in a motor vehicle on a street or highway if the products meet any of the following conditions:  Do not meet the packaging requirements set in statute.  Have been removed from the packaging in which they were sold.  Are in packaging that has been opened, or the seal has been broken.  Are in packaging in which the contents have been partially removed. It is not considered a crime if the cannabis products are in the trunk of the vehicle or in another area of the vehicle not normally occupied by the driver and passengers if the vehicle is not equipped with a trunk. A utility compartment or glove compartment is deemed to be within the area occupied by the driver and passengers. Q27. Could cities prohibit the sale of adult-use cannabis entirely? A27. Cities may not prohibit the possession, transportation, or use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products authorized by the new law. Q28. Is our city required to adopt regulations under the new law? A28. Cities are not required to adopt any new regulations under the new law. However, they will be required to register retail sellers and perform compliance checks. Q29. Are prior convictions for cannabis use expunged and what is the city’s role in that process? A29. Certain cannabis-related convictions will be expunged by the Bureau of Criminal Apprehension. Upon receipt of a notice of expungement, cities are required to seal all records related to the expungement, including the records of the person’s arrest, indictment, trial verdict, and dismissal or discharge of the case. Certain felony convictions will be reviewed by the Cannabis Expungement Board to determine what, if any, action should be taken related to a prior conviction. Cities will be required to provide the Cannabis Expungement Board free access to records held by law enforcement agencies or prosecuting authorities. City regulation Q30. Can the city require sellers to have a city-issued license? A30. A city may not require additional licenses other than the cannabis licenses issued by the OCM. However, the OCM will forward applications to cities for them to certify whether the proposed cannabis business complies with local zoning ordinance and, if applicable whether the proposed business complies with the state fire and building code. The OCM may not issue a license to a cannabis business that does not meet local zoning and land use laws. In addition, upon receipt of an application for a cannabis license, the OCM will contact the city in which the business would be located and provide the city with 30 days in which to provide input on the application. This is the city’s opportunity to provide the OCM with any additional information it believes is relevant to the OCM’s decision on whether to issue a license, including but not limited to identifying concerns about the proposed location of a cannabis business, or sharing public information about the applicant. Before a cannabis business begins making retails sales, it will be required to register with the city in which it is located. Q31. When is our city required to issue retail registration to a cannabis retail business? A31. A city is required to issue a retail registration to a cannabis microbusiness with a retail operations endorsement, cannabis mezzo business with a retail operations endorsement, cannabis retailer, medical cannabis retailer, or lower-potency hemp edible retailer that:  Has a valid license issued by the OCM.  Has paid the registration fee.  Is found to be in compliance with the requirements of the applicable state laws through a preliminary compliance check performed by the city.  Is current on all property taxes and assessments at the location where the retail establishment is located. Q32. Can a retail registration issued by our city be transferred? A32. Retail registration may not be transferred. Q33. Is our city required to conduct compliance checks on businesses with a cannabis retail registration? A33. Cities will be required to conduct compliance checks on retail cannabis businesses with a retail registration by the city. The OCM will develop standardized forms and procedures for these compliance checks. Q34. Can our city charge a fee for a cannabis retail registration? A34. city may impose an initial retail fee of $500 or up to half the amount of the applicable initial license fee charged by the OCM, whichever is less. The city may also charge a renewal retail registration fee of $1,000 or up to half the amount of the applicable renewal license fee charged by the OCM, whichever is less. Q35. Can my city limit the number of cannabis retailer licenses issued in our city? A35. A city that issues cannabis retailer registrations may, by ordinance, limit the number of licensed cannabis retailers, cannabis mezzo businesses with a retail operations endorsement, and cannabis microbusinesses with a retail operations endorsement to no fewer than one registration for every 12,500 residents. In addition, if a county has one active registration for every 12,500 residents, a city within the county is not obligated to register any additional cannabis businesses. Q36. How does this impact my city’s existing license for THC products? A36. It appears that cities may continue to license edible cannabinoid products until the OCM begins issuing licenses. Those businesses that sell edible cannabinoid products to consumers must register with the Minnesota Department of Health by Oct. 1, 2023. However, once the OCM begins issuing lower-potency hemp edible retailer licenses, cities are likely preempted from continuing to issue their own licenses and would begin registering retailers through the city’s cannabis retailer registration process. Q37. Which state agency is charged with regulating edible cannabinoid products until the OCM begins licensing cannabis products? A37. The Minnesota Department of Health is now charged with the regulations of edible cannabinoid products until the OCM begins issuing licenses. Learn more on the Minnesota Department of Health website. Q38. What changes have been made to the edible cannabinoid law adopted in 2022? A38. The new law allows for the continued sale of certain edible cannabinoid products with new limitations including:  Manufacturers must have each batch of products tested to certify they comply with the standards adopted by the Minnesota Department of Health.  Manufacturers must disclose information regarding foreign materials applied or added to the products.  Labels must contain a batch number.  Beverages cannot contain more than two servings per container.  Edible cannabinoid products may not contain artificially derived or synthetic cannabinoids.  Edible cannabinoid products, other than beverages, must be displayed behind a checkout counter.  Retailers must verify age of purchaser. Q39. Can edible cannabinoid products be sold for on-site consumption? A39. Until the OCM begins issuing licenses, the on-site consumption of edible cannabinoid products is limited to those businesses with an on-sale liquor license issued under Minnesota Statutes, Chapter 340A. In addition, the following conditions must be met:  Products must be served in original.  Products may not be sold to an intoxicated customer.  Products must not be permitted to be mixed with alcoholic beverages.  Products removed from packaging must remain on premises. After the OCM is set up, it will issue on-site consumption endorsements for cannabis license holders. Q40. Will I be able to prohibit cannabis events in my city? A40. The new law authorizes temporary cannabis events lasting no more than four days. To be approved for a cannabis event license, applicants must obtain any necessary permits or licenses issued by a local unit of government. Cities may not prohibit cannabis events, but they may set standards which the event organizer must meet. Cities may also permit on-site consumption for events but are not required to. Q41. How does this impact my city’s existing THC license program? A41. Local THC licenses may continue until the OCM begins issuing its own licenses, which state agencies anticipate beginning in January of 2025. When the OCM licensing begins, cities will need to follow the retail registration procedures outlined in the law. Q42. How does the new law impact my city’s existing THC moratorium? A42. The new law does not affect a current moratorium. If a city adopted a moratorium on low-potency edibles, it remains in place and will expire as noted when it was adopted. Q43. Can the city’s zoning regulation restrict where a business can operate? A43. Cities are allowed to adopt reasonable restrictions on the time, place, and manner of the operations of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. Cities may prohibit the operations of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field. The OCM will develop model ordinances for reasonable restrictions on the time, place, and manner of a cannabis business. Q44. Can cities adopt a moratorium prohibiting the sale, manufacturing, or distribution of adult-use cannabis to study the issue? A44. Cities may adopt an interim ordinance if:  It is conducting studies.  Has authorized a study to be conducted.  Has held or has scheduled a hearing for the purpose of considering adoption or amendment of reasonable restriction on the time, place, and manner of the operation of a cannabis business as defined in the new law. Before adopting an interim ordinance, the city must hold a public hearing on the issue. The interim ordinance may be in place until Jan. 1, 2025. The authority for an extended moratorium does not apply to the sale or production of low-potency hemp edible products. Q45: What if my city has complaints about a licensed cannabis business? A45. The OCM will establish an expedited complaint process to receive, review, and respond to complaints made by cities about a cannabis business. The OCM will be required to respond to the complaint within seven days and perform any necessary inspections within 30 days. If certain cannabis businesses are deemed by the city to pose an immediate threat to the health or safety of the public, the OCM must respond within one business day. Q46: Can a city deny a liquor license if they find that the business is selling cannabis or low-potency hemp products without a license? A46. Yes. The new law prohibits a retail license from being issued to a person who has had a license or registration issued under ch. 342 or Minn. Stat. § 151.72, subd. 5b revoked; has been convicted of an offense under Minn. Stat. § 151.72, subd. 7; or has been convicted under any other statute for the illegal sale of marijuana, cannabis flower, cannabis products, lower-potency hemp edibles, hemp-derived consumer products, or edible cannabinoid products and the sale took place on the premises of a business that sells intoxicating liquor or 3.2% malt liquor. Q47. Can a city suspend or revoke a tobacco license if they find that they are selling cannabis or low-potency hemp products without a license? A47. Yes. The new law allows a tobacco license to be suspended or revoked if the licensee has a registration or licensed under ch. 342 or Minn. Stat. § 151.72, subd. 5b revoked; is convicted of an offense under Minn. Stat. § 151.72, subd. 7; or has been convicted under any other statute for the illegal sale of marijuana, cannabis flower, cannabis products, lower-potency hemp edibles, hemp-derived consumer products, or edible cannabinoid products and the sale took place on the premises of a business that sells tobacco. A city must provide notice and an opportunity for a hearing before suspension or revocation. City employment and personnel issues Q48. Does the new law allowing adult-use cannabis change anything about how we do drug testing for CDL holders? A48. No, cities with positions requiring an employee to hold a commercial driver’s license (CDL) will recall these positions are regulated by federal law, and those regulations are supervised by the Federal Department of Transportation (DOT). Federal law preempts state law related to cannabinoid use; in fact, the DOT states in its DOT Recreational Marijuana Notice that it does not authorize the use of Schedule I drugs, including marijuana, for any reason. As a result, cities should continue to follow their drug-testing procedures related to CDL holders and may enforce prohibitions against any use of cannabinoids for CDL holders, regardless of state law protections. Cities can find more information on existing drug testing policies in the LMC Drug and Alcohol Testing Toolkit, starting on page 22. An updated model Non-DOT Drug, Alcohol and Cannabis Policies will be available once legal consultants have reviewed. Q49. Does the new law change anything related to employees who carry a firearm? A49. No. Public safety employees who carry a firearm cannot lawfully use marijuana under federal law. Federal law prohibits cities from providing firearms or ammunition to an employee it knows or has reason to think is using marijuana. Although there is a legal difference between marijuana products and hemp products, it may not be possible to differentiate the products in a drug test. Officers should be mindful of any substance they ingest because they are ultimately responsible if those products lead to a positive marijuana test. Q50. Besides positions requiring a CDL or carrying a firearm, are there any other positions which are not affected by the new law? A50. Yes. The law excludes the following seven position classes from the law’s changes: 1. A safety-sensitive position, as defined in as defined in Minn. Stat. § 181.950, subd. 13. 2. A peace officer position, as defined in Minn. Stat. § 626.84, subd. 1. 3. A firefighter position, as defined in Minn. Stat. § 299N.01, subd. 3. 4. A position requiring face-to-face care, training, education, supervision, counseling, consultation, or medical assistance to: 1. Children. 2. Vulnerable adults, as defined in Minn. Stat. § 626.5572, subd. 21. 3. Patients who receive health care services from a provider for the treatment, examination, or emergency care of a medical, psychiatric, or mental condition. 5. A position funded by a federal grant. 6. Any other position for which state or federal law requires testing of a job applicant or employee for cannabis. 7. A position requiring a commercial driver’s license or requiring an employee to operate a motor vehicle for which state or federal law requires drug or alcohol testing of a job applicant or employee. Q51. Can we still prohibit employees from being under the influence of cannabis while at work? Does the League have a model policy with updated language? A51. Yes, employers can continue to prohibit employees from being under the influence of cannabis products, while at work. For employers, a key focus will be workplace safety with the consideration that cannabis is more difficult to detect and test than alcohol. Employers may continue to maintain drug-free policies at the workplace and discipline employees who use cannabis during working hours or who report to work impaired. Under the Occupational Safety and Health Administration’s (OSHA) General Duty Clause of the Occupational Safety and Health Act, employers are required to furnish a workplace free from recognized hazards that are likely to cause serious physical harm. This provision of the Act is typically used in accident cases where toxicology screens are positive. OSHA’s new electronic recordkeeping rule, clarified on Oct. 11, 2018, states “If the employer chooses to use drug testing to investigate the incident, the employer should test all employees whose conduct could have contributed to the incident, not just employees who reported injuries,” with respect to using drug testing to evaluate the root cause of a workplace incident that harmed or could have harmed employees. Thus, a non-DOT drug and cannabis-city testing policy with protocols following this guidance is important. Under the new law, employers can enact and enforce work policies prohibiting the use, possession, and impairment of cannabis while at work or operating employer vehicles, equipment, and machinery. It is difficult to test for cannabis to determine if an employee is currently under the influence due to the drug’s ability to be detectable for weeks after it is used. With the prohibitions on disciplining employees other than those listed in Q3, employers will be in a difficult position to take action against an employee who tests positive for cannabis. A best practice is for cities to train supervisors about the behavioral signs and symptoms of drug and cannabis use as well as how to document observations of potential impairment so should a situation occur in the workplace, supervisors can effectively respond and document what they observed leading to the situation. An updated model Non-DOT Drug, Alcohol and Cannabis Policies will be available once legal consultants have reviewed. Q52. If an employee is injured while being under the influence of cannabis at work, are they still entitled to workers’ compensation benefits? A52. While each case is very fact-specific, the general rule is that if the injury was intentionally self-inflicted or the intoxication of the employee is the proximate cause of the injury, then the employer is not liable for compensation. The burden of proof of these facts is upon the employer. Q53. Can employees be in possession of edibles or other cannabis products while at work? A53. Cities may enact policies prohibiting employees from bringing cannabis products, including edibles, to work. A best practice is for cities to train supervisors about the behavioral signs and symptoms of drug and cannabis use as well as documenting observations of potential impairment so should a situation occur in the workplace, supervisors can effectively respond and document what they observed leading to the situation. Q54. Do we need to change anything in our collective bargaining agreement (CBA) regarding discipline of employees who use cannabis products? A54. Maybe. If cities have policies within their CBAs that relate to cannabis use and discipline, cities should consult with their city attorney to determine if any changes are needed. CBAs may address cannabis and cannabis testing, but the CBAs must at least meet the minimum employee rights guaranteed by the statute. Ensure your city’s drug and cannabis-testing policies have been updated and your supervisors are trained on the behavioral signs and symptoms associated with impairment as well as documenting observations of potential impairment. If the CBA includes language that policy changes need to be negotiated, then there would need to be a meeting with the union if the city’s policy changes. Q55. Can employees use cannabis products off-duty? A55. It depends. See Q1, Q2, and Q3 for a list of employees who can be prohibited from using cannabis products both on and off duty due to federal or state regulations. Other employees would be able to use cannabis products while they are off duty, if they are not impaired at work. If there are any questions regarding whether an employee could be prevented from using cannabis products while off-duty, please consult your city attorney before any action is taken. In addition, the law prohibits an employer from taking adverse employment action against an employee who is a patient in the state’s medical cannabis program unless a failure to do so would violate federal or state law or regulations, or cause an employer to lose a monetary or incensing-related benefit under federal law or regulations. Q56. How does this impact the requirements of the Drug-Free Workplace Act? A56. It does not. The Drug-Free Workplace Act of 1988 (DFWA) requires federal grantees and contractors to implement a drug-free workplace policy and establish a drug-free awareness program as a precondition for receiving a federal grant or a contract. However, the DFWA does not require covered employers to test employees for drugs or terminate them for drug-related violations, so the new Minnesota state law does not impact the DFWA directly. Minnesota law allows employers to prohibit employees from bringing legal cannabis products to work and permits employers to prohibit employees from being under the influence while at work. It would be best practice for cities with drug-free work policies to keep those in effect. If a city wishes to do so, it can update its policy to include lawful cannabis products within its scope. An updated model Non-DOT Drug, Alcohol and Cannabis Policies will be available once legal consultants have reviewed. Q57. Should my city continue to include cannabis as a pre-employment panel screen for my non-DOT/safety-sensitive employees? A57. The new Minnesota law prohibits an employer from refusing to hire an applicant simply because of a positive cannabis drug test. There are exceptions for positions where such testing and denial of job offer is required under applicable federal or state law. Cities will want to refer to the Q3, which provides a list of positions excepted from cannabis testing prohibitions. Practically speaking, if a position is not excepted, cities will need to determine whether they want to continue to test for cannabis in light of the limitation of the testing and confer with their city attorney before taking an action as a result of a positive test. Item 9A.1 City Council Meeting Item Title/Subject: 2023 Spring Clean-Up & Paper Shred Results Meeting Date: 6/26/2023 Prepared by: Eric Wilson, Communications and Recycling Coordinator Reviewed by: Attachments: Spring Clean-Up & Paper Shred Event Infographic Background: The annual City Spring Clean-Up and Paper Shred event took place on Saturday, May 20, 2023. Results from the event below: Item (by category) Qty Item (by category) Qty (lbs) Appliances 53 Electronics 5173 Light bulbs 887 Batteries 493 Tires 68 Ballasts 14 Push Mower 6 Total 5,680 lbs Snow Blower 2 Small Gas Equipment 12 Pressure Washer 3 Exercise Bike 1 Paper Shredded 288 gallons Tanks 6 Bicycles 38 Volunteers 4 Total 1,076 items Financial Considerations: No action necessary at this time. Below are total costs from the event. Expenses Revenue Petty Cash $300.00 $300.00 Refreshments – volunteers, staff $169.65 Certified Appliance Recycling $7,720.20 Republic Services $758.42 Stericycle (Shred-it) $1,348.20 Cash Received $5,564.00 Total cost $10,296.47 $5,864.00 ($4,432.47) *total cost does not include City Staff time. **$-4,432.47 is consistent with numbers from previous years Action Requested: n/a 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 Item 9A.2 City Council Meeting Item Title/Subject: Matters from the Floor Response – Alan Yelsey, 26335 Peach Circle Meeting Date: June 26, 2023 Prepared by: Marc Nevinski, City Administrator; Sandie Thone, City Clerk, Joe Rigdon, Finance Director Attachments: Bonds Summary Mr. Yelsey appeared virtually at Matters from the Floor on June 12, 2023 and made the following comments: 1. Mr. Yelsey objected to the time limits placed on Matters from the Floor. He stated that it is undemocratic to not allow discussion and that the City values the opinion of experts over that of residents. Cities commonly establish time limits (two to five minutes is common) for speakers during open forum periods of a council meeting in order to promote efficient meetings and ensure all those who wish to address the council have an opportunity to do so. The League of Minnesota Cities notes that people attend council meetings to provide information to the city council. However, LMC also notes that discussions or debates between council members and constituents is inappropriate and may reflect poorly on the decision-making process. Constituents have many ways of communicating with elected officials individually or as a body, including via staff, one on one conversations, emails and letters, public hearings, and engagement events. 2. Mr. Yelsey expressed concern that the Smithtown Ponds have not been treated for mosquitos. He also expressed concern about a sand pile on Strawberry Lane The Smithtown Ponds project is nearing completion and as-built plans will be provided to the Metropolitan Mosquito Control District when work is finished so the ponds can be mapped correctly in its system and treated for mosquitos as necessary. An adjacent existing pond was treated in May. Staff informed the MMCD at the end of May of the treatment concern regarding the ponds under construction and they stated that field staff would inspect the site and determine a course of action. On June 15 MMCD reported they again check the ponds and noted that due to the lack of rain most water holding sites are not producing mosquitos. The City Engineer has discussed the safety of the sand pile with the contractor. There is no OSHA regulations addressing sand piles and that the sand pile in a construction zone does not present an eminent hazard. That said, signage or fencing will be installed around the sand pile until it needs to be accessed. 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 3. Mr. Yelsey stated that the $2000 charge for data requested is undemocratic. According to MNGDPA, State Statute 13.03, subd. 3, the City may charge for data request at the rate of .25 per page for data totaling under 100 pages and for actual staff time for data that exceeds 100 pages but inspection is always offered and it is free. The Data Request Mr. Yelsey is referring to above was sent with the following explanation that this is exactly what the city had to do and pay to provide this large amount of information. Pursuant to the MNGDPA, municipalities may charge for Data Request copies, which include copies sent via electronic transmission. The above request exceeds the limit of 100 pages, therefore would qualify for the “actual cost” method in calculating the data request cost. The actual costs for searching and retrieving the government data requested, pursuant to MN Statute §13.03, subd.3(c) , is as follows: Principal Engineer Andrew Budde 11.5 hours $1,978 Engineering Staff 3 hours $440 Engineering Admin Staff 2 hours $140 Total 16.5 hours $2,558 It is worth noting that on October 17, 2022 after a lengthy Hearing in Yelsey v. Shorewood, the judge dismissed Mr. Yelsey’s complaints entirely, ruling that the city “did not fail to permit Complainant to inspect and copy public government data at reasonable times and places and inform Complainant of the data’s meaning.” In fact, the judge did however find the city failed “to charge Complainant the actual cost of providing copies when it charged him \[only\] the per-page rate for documents exceeding 100 pages.” The City is simply complying with MN Data Practices Act and charging the cost of actual staff time in fulfilling a large request. The City has previously notified Mr. Yelsey that all of this data is available for inspection at no cost. 4. Mr. Yelsey expressed concern about the City taking on approximately $25M in debt and stated the public does not realize it. Since 2020, the City has annually financed various street improvement and utility projects through the issuance of general obligation (G.O.) bonds. To date, the City has issued $13,230,000 of G.O. street reconstruction bonds, and $11,810,000 of G.O. revenue bonds, for a total of $25,040,000 overall. The current balance outstanding is $24,145,000. The attached spreadsheet provides a summary of bonding activity and indicates which City projects and improvements have been financed. (See attached Bond Summary) S&P Global continues to provide the City with a AA+ bond rating and has noted the City’s finances are stable. City budgets are publicly presented and discussed several times annually and are available on the City website. Projects requiring debt are considered multiple times at Council meetings and include a number of authorizations and approvals before a contract is awarded or debt is issued. 5. Mr. Yelsey objected to the fees paid to the City’s engineering firm. The following is a summary of Engineering Services provided by Bolton & Menk. General Engineering includes day to day engineering services that cities commonly provide. Project Engineering includes project specific work such as design, field engineering, and construction observation. Engineering Summary - Bolton & Menk December 2019 through May 2023 Months of General Project/Other Year Service Engineering Engineering Total 2019 12/19 6,117.00 0.00 6,117.00 2020 1/20-12/20 136,650.47 1,224,892.29 1,361,542.76 2021 1/21-12/21 125,714.70 1,639,724.75 1,765,439.45 2022 1/22-12/22 115,116.02 1,284,126.68 1,399,242.70 2023 1/23-5/23 45,413.05 447,645.20 493,058.25 429,011.24 4,596,388.92 5,025,400.16