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9/18/2023 - City Council - Regular - Agendas* The Consent Agenda lists those items of business which are considered to be routine, recommended for approval, and/or which need no discussion. The several separate items listed on the Consent Agenda are acted upon by one motion. There will be no separate discussion of these items unless a Council Member makes a request, in which event the item will be removed from the Consent Agenda and placed elsewhere on the regular agenda for Council discussion and action. ** Under Public Comment, individuals may address the City Council about any item not contained on the regular agenda. Each speaker should keep their statements to three minutes to allow sufficient time for others. The Council will take no official action on items discussed at the forum, with the exception of referral to staff for future report. CITY OF SPRING PARK CITY COUNCIL AGENDA SEPTEMBER 18, 2023 – 6:30 PM SPRING PARK CITY HALL 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. PUBLIC COMMENT 5. REQUESTS & PRESENTATIONS a. Gabrial Jabbour – LMCD Update 6. CONSENT AGENDA a. Minutes - Regular City Council & Work Session Minutes - August 21, 2023 b. Approve Payroll and Expenditures c. Special Event Permit #23-16: Back Channel 6th Beerthday Party d. Approval of Temporary Construction Easement: Lift Station #6 e. Resolution #23-17 – Supporting Hennepin Facilities Grant Submission f. Proposed resolution amending certain interest rate mechanisms in conduit note – PHS/Chanhassen g. Proposed resolution amending certain interest rate mechanisms in conduit note – PHS/Lake Minnetonka 7. ACTION AGENDA a. Resolution #23-16 – Adopting 2024 Preliminary Levy 8. REPORTS a. Mayor & Council b. Staff 9. ANNOUNCEMENTS/MISCELLANEOUS (INFORMATION ONLY) a. October 2, 2023 – Regular City Council Meeting – 6:30PM b. October 11, 2023 – Planning Commission Meeting – 6:00PM c. October 16, 2023 – Regular City Council Meeting – 6:30PM d. October 16, 2023 – Council Work Session – 5:30PM 10. ADJOURNMENT CITY OF SPRING PARK CITY COUNCIL MINUTES AUGUST 21, 2023 – 6:30 PM SPRING PARK CITY HALL 1. CALL TO ORDER The meeting was called to order at 6:30 p.m. Council Present: Mayor Rockvam, Council Member’s Chase, Horton, and Sippel. Council Member Hoffman was absent. Staff Present: City Administrator Anderson, City Engineer Nielson 2. PLEDGE OF ALLEGIANCE Mayor Rockvam led the audience in the Pledge of Allegiance 3. APPROVAL OF AGENDA Council Member Horton motioned, being seconded by Council Member Sippel, to approve the agenda as presented. On vote being taken, the motion was unanimously approved. 4. PUBLIC COMMENT: none 5. REQUESTS & PRESENTATIONS: none 6. CONSENT AGENDA Council Member Horton motioned, being seconded by Council Member Sippel, to approve the consent agenda as presented. a. Minutes - Regular City Council Meeting August 7, 2023 b. Approve Payroll and Expenditures c. Approve LMCC Budget On vote being taken, the motion was unanimously approved. 7. ACTION AGENDA: none 8. REPORTS a. Mayor & Council; Mayor Rockvam asked for an update on West Arm West regarding the landscape repair requests from residents, Bickman & Rich. Bickman would like concrete added to his driveway and Rich would like landscape rock added to address the runoff. City Engineer Nielson stated installing concrete would become an issue for multiple reasons - he recommended landscape rock be used instead. Council Member Sippel motioned, being seconded by Council Member Horton, to use landscape rock as opposed to concrete for both residents to address the runoff issues. On roll call vote; Sippel – yes, Horton – yes, Chase – yes, Rockvam - no. Motion carried 3-1. Council Member Sippel inquired about the driveway repairs for Seton Village townhomes. City Engineer Nielson stated they are waiting for a bid from another contractor as Bituminous was not available. The work will include a concrete apron, a valley gutter, and the bituminous will be paved towards the middle. No estimated costs or timing yet. The hydroseeding will begin in a week. b. Staff; none 9. ANNOUNCEMENTS/MISCELLANEOUS (INFORMATION ONLY) a. September 5, 2023 - Regular City Council Meeting – 6:30PM b. September 13, 2023 - Planning Commission Meeting – 6:00PM c. September 18, 2023 - Regular City Council Meeting – 6:30PM d. September 18, 2023 - Work Session – 5:30PM 10. ADJOURNMENT There being no further discussion, Council Member Sippel motioned, being seconded by Council Member Horton, to adjourn the meeting at 6:41p.m. On vote being taken, the motion was unanimously approved. Respectfully submitted, Jamie Hoffman, City Clerk CITY OF SPRING PARK WORK SESSION MINUTES AUGUST 21, 2023 – 5:30 PM SPRING PARK CITY HALL (Work Session discussion times are approximate) 1. 5:30: 2024 Budget Discussion – Preliminary Levy City Administrator Anderson provided a summary of the budget and advised where the proposed levy is coming in based on the items he was including. He requested feedback and discussion from the Council on what other projects they wanted to include. Anderson stated the proposed improvements he included were the repairs to the City Hall building, stairway/entryway, and a mill and overlay of the City Hall driveway & parking area. He also included the mill and overlay for Warren Avenue spanning from Shoreline to Kings Road, new software for the meters, new meters, improvements to the Lake Street boat launch and staff COLA increases. 2. 6:15 Miscellaneous City Engineer Nielson brought forward two resident requests on West Arm Road West for landscape improvements due to the road construction. Mayor Rockvam provided feedback on both road projects and stated that it helped to have a project manager onsite for Black Lake Road. It helped with resolving issues quickly and effectively. He said he would highly recommend we have one onsite for the Sunset Drive project. City Engineer Nielsen recommended we create a policy for projects moving forward so we know what the guidelines are for any runoff or landscaping repairs to residents’ homes that are disrupted during construction. The recommendation is to bring it back to what was there before the construction. A draft policy will be put together and discussed at a future work session. 3. 6:30: Adjourn Council Member Chase motioned, being seconded by Council Member Horton, to adjourn the meeting at 6:30pm. On vote being taken, the motion was unanimously approved. *Check Summary Register© CITY OF SPRING PARK 08/30/23 4:36 PM Page 1 Batch: 090523PAY Name Check Date Check Amt 10100 Wells Fargo Bank NA 33446 CORE & MAIN LP 8/31/2023 $1,403.30 Purchase of radio readers 33447 EARL F. ANDERSEN, INC.8/31/2023 $234.85 Street sign and post for Lake Street 33448 EHLERS 8/31/2023 $2,267.50 Prepare 1st Half 2023 TIF Note Payment 33449 ENDE SEPTIC SERVICES, LLC 8/31/2023 $1,125.00 To pump water our of NAPA and Safety Rail for 33450 HAWKINS, INC.8/31/2023 $827.31 Purchased Chemicals for WTP 33451 KODIAK POWER SOLUTIONS 8/31/2023 $1,457.44 WTP maintenance for overheating generator 33452 LEAGUE OF MINNESOTA CITIES 8/31/2023 $721.00 LMCIT litigation for GL 266496 - Kyle Danielso 33453 MN DEPT OF HEALTH 8/31/2023 $899.00 3rd Qtr. 23' Community Water Supply Service 33454 NEW LOOK CONTRACTING, INC.8/31/2023 $730,539.69 Payment No.2 for Black Lake Rd Construction 33455 NORLINGS LAKE MTKA LANDSC 8/31/2023 $8,712.04 Landscaping Services - May 2023 Job #M682 33456 OPTUM BANK 8/31/2023 $15.00 April - Jun 2023 HAS Employee Monthly Servic 33457 QUALITY FLOW SYSTEMS, INC.8/31/2023 $15,239.00 Field labor on 8/7 & 8/10 for valve fails at WTP 33458 RITEWAY BUSINESS FORMS&P 8/31/2023 $1,317.05 Printing/Assemble Charges for Summer 2023 33459 SAMBATEK, INC.8/31/2023 $14,736.34 General Engi. Services 07/09/23-08/05/23 - Nor 33460 SHAUGHNESSY LAWN CARE 8/31/2023 $1,071.43 Clean Up and Mowing Services 06/15/23-08/15 33461 SOLUTION BUILDERS, INC.8/31/2023 $1,420.00 August 23' IT Managed Services 33462 UNICLEAN CLEANROOM SERVIC 8/31/2023 $148.05 Rug rental services 07/23/23-08/26/23 33463 US BANK 8/31/2023 $856.40 July Credit Card Purchases - Office supplies an 33464 VALLEY-RICH CO INC 8/31/2023 $26,556.51 Watermain Break Repair & Restoration Service 33465 WSB & ASSOCIATES, INC.8/31/2023 $1,857.75 June 23' Planning Services - General 33466 XCEL ENERGY 8/31/2023 $38,730.05 Remaining balance for Black Lake Rd - Conver Total Checks $850,134.71 Batch: 090523PAY Page 1 08/30/23 4:38 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name 10100 Wells Fargo Bank NA 33446 08/31/23 CORE & MAIN LP $1,403.30 Purchase of radio readersRepairs/Maint General T231185E 601-49400-400 $1,403.30Total 33447 08/31/23 EARL F. ANDERSEN, INC. $234.85 Street sign and post for Lake StreetRepairs/Maint Streets/Str 0133533-INE 101-43100-402 $234.85Total 33448 08/31/23 EHLERS $412.50 Prepare 1st Half 2023 TIF Note PaymentOther - TIF 95050E 101-41500-439 $1,855.00 Prepare 1st Half 2023 TIF Note PaymentOther - TIF 95051E 101-41500-439 $2,267.50Total 33449 08/31/23 ENDE SEPTIC SERVICES, LLC $1,125.00 To pump water our of NAPA and Safety Rail for watermain break in May 2023 - Interlachen Repairs / Breaks 33887E 601-49400-411 $1,125.00Total 33450 08/31/23 HAWKINS, INC. $30.00 Purchased Chemicals for WTPChemicals and Chem Pro 6551171E 601-49400-216 $797.31 Purchased Chemicals for WTPChemicals and Chem Pro 6555436E 601-49400-216 $827.31Total 33451 08/31/23 KODIAK POWER SOLUTIONS $1,457.44 WTP maintenance for overheating generatorRepair/Maint Supply 12398064E 601-49400-220 $1,457.44Total 33452 08/31/23 LEAGUE OF MINNESOTA CITIES $721.00 LMCIT litigation for GL 266496 - Kyle Danielson DDS, PLLC Legal Fees GL 266496E 101-41600-304 $721.00Total 33453 08/31/23 MN DEPT OF HEALTH $899.00 3rd Qtr. 23' Community Water Supply Service Connection Fee (07/01/23-09/30/23) Testing FeesE 601-49400-306 $899.00Total 33454 08/31/23 NEW LOOK CONTRACTING, INC. $730,539.69 Payment No.2 for Black Lake Rd ConstructionBlack Lake Rd Feasibility BLK #2E 201-43100-529 $730,539.69Total 33455 08/31/23 NORLINGS LAKE MTKA LANDSCAPE $4,356.02 Landscaping Services - June 2023 Job #M820Landscaping/Gardens/Mai 42200E 101-41940-432 $4,356.02 Landscaping Services - May 2023 Job #M682Landscaping/Gardens/Mai 42218E 101-41940-432 $8,712.04Total 33456 08/31/23 OPTUM BANK $15.00 April - Jun 2023 HAS Employee Monthly Service Fee Other Miscellaneous 0001473702E 101-41500-437 $15.00Total 33457 08/31/23 QUALITY FLOW SYSTEMS, INC. Batch: 090523PAY Page 2 08/30/23 4:38 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name $13,609.00 Quoted supply & installation of valves at Lift Station 6 Depreciation 45385E 602-49450-405 $1,630.00 Field labor on 8/7 & 8/10 for valve fails at WTPRepairs/Maint General 45405E 601-49400-400 $15,239.00Total 33458 08/31/23 RITEWAY BUSINESS FORMS&PRINTIN $439.02 Printing/Assemble Charges for Summer 2023 Newsletters (1,202) Print/Binding 23-32181E 101-41500-350 $439.02 Printing/Assemble Charges for Summer 2023 Newsletters (1,202) Print/Binding 23-32181E 601-49400-350 $439.01 Printing/Assemble Charges for Summer 2023 Newsletters (1,202) Print/Binding 23-32181E 602-49450-350 $1,317.05Total 33459 08/31/23 SAMBATEK, INC. $218.50 General Engi. Services 07/09/23-08/05/23 - Northern & Warren Overlays Engineering Fees 25011E 101-43100-303 $14,517.84 General Engi. Services 07/09/23-08/05/23Black Lake Rd Feasibility 25015E 201-43100-529 $14,736.34Total 33460 08/31/23 SHAUGHNESSY LAWN CARE $1,071.43 Clean Up and Mowing Services 06/15/23-08/15/23Contracted ServicesE 101-45200-310 $1,071.43Total 33461 08/31/23 SOLUTION BUILDERS, INC. $236.67 August 23' IT Managed ServicesIT Technology Support SB52610E 101-41500-330 $236.67 August 23' IT Managed ServicesIT Technology Support SB52610E 601-49400-330 $236.66 August 23' IT Managed ServicesIT Technology Support SB52610E 602-49450-330 $236.67 September 23' IT Managed ServicesIT Technology Support SB52612E 101-41500-330 $236.67 September 23' IT Managed ServicesIT Technology Support SB52612E 601-49400-330 $236.66 September 23' IT Managed ServicesIT Technology Support SB52612E 602-49450-330 $1,420.00Total 33462 08/31/23 UNICLEAN CLEANROOM SERVICES $148.05 Rug rental services 07/23/23-08/26/23Contracted Services 203569E 101-41500-310 $148.05Total 33463 08/31/23 US BANK $383.34 July Credit Card Purchases - LMC Conference - Jamie & MNGFOA Conference - Tria Membership/Dues/EduE 101-41500-433 $83.33 July Credit Card Purchases - Jamie & MNGFOA Conference - Tria Membership/Dues/EduE 601-49400-433 $83.33 July Credit Card Purchases - Jamie & MNGFOA Conference - Tria Membership/Dues/EduE 602-49450-433 $45.09 July Credit Card Purchases -Microsoft & AdobeComputer Support/SupplieE 101-41500-207 $45.09 July Credit Card Purchases -Microsoft & AdobeComputer Support/SupplieE 601-49400-207 $45.08 July Credit Card Purchases -Microsoft & AdobeComputer Support/SupplieE 602-49450-207 $171.14 July Credit Card Purchases - Office supplies and water refills Other MiscellaneousE 101-41500-437 $856.40Total 33464 08/31/23 VALLEY-RICH CO INC $13,052.74 Watermain Break Repair & Restoration Services at Interlachen & Shoreline (May 17) Repairs / Breaks 32004E 601-49400-411 Batch: 090523PAY Page 3 08/30/23 4:38 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name $7,385.61 Watermain Break Repair & Restoration Services at Interlachen & Shoreline (June 2) Repairs / Breaks 32238E 601-49400-411 $6,118.16 Watermain Break Repair & Restoration Services at 3800 Sunset Drive Repairs / Breaks 32354E 601-49400-411 $26,556.51Total 33465 08/31/23 WSB & ASSOCIATES, INC. $250.50 June 23' Planning Services - GeneralContracted Services R-021860-00E 101-41910-310 $1,607.25 June 23' Planning Services - Back ChannelContracted Services R-021860-00E 101-41910-310 $1,857.75Total 33466 08/31/23 XCEL ENERGY $32,732.83 Remaining balance for Black Lake Rd - Conversion of existing overhead electrical WO# 12904654 Black Lake Rd Feasibility E 201-43100-529 $364.75 Electric Usage 06/26/23-07/26/23 - LS #2Utilities/Electric/Gas 1053739464E 602-49450-381 $23.13 Electric Usage 06/26/23-07/26/23 - LS #4Utilities/Electric/Gas 1053739602E 602-49450-381 $40.12 Electric Usage 06/26/23-07/26/23 - West st lightsUtilities/Electric/Gas 1053739628E 101-43100-381 $602.25 Electric Usage 06/26/23-07/26/23 - Co owned lightsUtilities/Electric/Gas 1053740097E 101-43100-381 $154.85 Electric Usage 06/26/23-07/26/23 - Traffice signal and East lights Utilities/Electric/Gas 1053740111E 101-43100-381 $163.50 Electric Usage 06/26/23-07/26/23 - Central & North lights Utilities/Electric/Gas 1053740886E 101-43100-381 $90.13 Electric Usage 06/26/23-07/26/23 - LS #3Utilities/Electric/Gas 1053740899E 602-49450-381 $158.20 Electric Usage 06/26/23-07/26/23 - LS #1Utilities/Electric/Gas 1053740903E 602-49450-381 $703.54 Electric Usage 06/26/23-07/26/23 - LS #6Utilities/Electric/Gas 1053740966E 602-49450-381 $102.57 Electric Usage 06/26/23-07/26/23 - LS #5Utilities/Electric/Gas 1053741795E 602-49450-381 $70.22 Electric Usage 06/26/23-07/26/23 - 4300 Shoreline traffice signal Utilities/Electric/Gas 1053742040E 101-43100-381 $3,206.20 Electric Usage 06/26/23-07/26/23 - WTPUtilities/Electric/Gas 1053742866E 601-49400-381 $317.76 Electric Usage 06/26/23-07/26/23 - City HallUtilities/Electric/Gas 1053744127E 101-43100-381 $38,730.05Total 10100 Wells Fargo Bank NA $850,134.71 Fund Summary 10100 Wells Fargo Bank NA 101 GENERAL FUND $18,106.75 201 PUBLIC IMPROV REVOLVING FUND $777,790.36 601 WATER FUND $38,145.54 602 SEWER FUND $16,092.06 $850,134.71 *Check Summary Register© CITY OF SPRING PARK 09/14/23 9:13 AM Page 1 Batch: 091323ESCROW,091823PAY Name Check Date Check Amt 10100 Wells Fargo Bank NA 33467 DENNIS INVESTMENTS 9/13/2023 $1,000.00 ESCROW REFUND for Special Multiday Event/ 33468 JASPER SERVICES LLC 9/13/2023 $500.00 ESCROW REFUND for Special Event/Music C 33469 MINNETONKA COMMUNITY EDU 9/13/2023 $250.00 ESCROW REFUND for Special Event License 33470 BIFFS, INC.9/13/2023 $166.00 Aug 9 - Sep 5, 2023 Portable Restroom Servic 33471 BITUMINOUS ROADWAYS INC.9/13/2023 $27,449.23 Payment No.4 for West Arm Rd Construction 33472 CARSON, CLELLAND, & SCHRED 9/13/2023 $1,507.50 Aug. 23' Legal Services - Public Safety Aid 33473 CIVICPLUS, LLC 9/13/2023 $625.00 2023 - 2024 Annual Online Hosting and OrdBa 33474 FIVE TECHNOLOGY, INC.9/13/2023 $280.00 Aug. 23' Monthly IT Managed Services 33475 GOOD TO BE HOME CLEANING 9/13/2023 $375.00 Aug. 2023 City Hall Cleaning Services 33476 GOPHER STATE ONE-CALL 9/13/2023 $59.40 August 2023 Locates 33477 JAMIE K. HOFFMAN 9/13/2023 $99.25 Reim. - Mileage and dinner for LMC Conferenc 33478 KLEEN-TEX USA LLC 9/13/2023 $963.90 Purchase of 6x6 Grizzly Vinyl Outdoor Mat 33479 LEAGUE OF MINNESOTA CITIES 9/13/2023 $2,190.00 2023-2024 Annual LMC City Membership Dues 33480 LAKE MTKA. CONSERVATION DI 9/13/2023 $1,011.25 LMCD 3rd Qtr.2023 Levy Payment 33481 LOFFLER COMPANIES, INC.9/13/2023 $42.62 Copier Usage 07/22/23-08/21/23 33482 MEDIACOM, LLC 9/13/2023 $389.90 Internet Services 09/11/23-10/10/23 33483 METRO COUNCIL ENVIRON SER 9/13/2023 $21,758.45 Oct. 23' Wastewater Treatment Monthly Fee 33484 LEAGUE OF MINNESOTA CITIES 9/13/2023 $30.00 2023 LMC Annual MN Mayors Association Me 33485 MNSPECT, LLC 9/13/2023 $1,468.61 Aug. 23' Residential & Commercial Inspections/ 33486 NAVARRE TRUE VALUE HARDW 9/13/2023 $126.49 Purchase of keyless lock, and home defense 33487 NORLINGS LAKE MTKA LANDSC 9/13/2023 $4,356.02 Landscaping Services - July 2023 Job #M894 33488 REPUBLIC SERVICES, INC 9/13/2023 $1,551.84 Aug. 2023 Recycling Services 33489 SECURITY & SOUND CO 9/13/2023 $273.00 Service to replace power supply for cameras on 33490 SOLUTION BUILDERS, INC.9/13/2023 $710.00 Oct. 23' Managed IT Services 33491 VELOCITY TELEPHONE 9/13/2023 $249.47 Phone & Long Distance Services 09/21/23-10/2 33492 XCEL ENERGY 9/13/2023 $90.94 Electric Usage 07/26/23-08/24/23 - 4468 Shorel Total Checks $67,523.87 Batch: 091323ESCROW,091823PAY Page 1 09/14/23 9:24 AMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name 10100 Wells Fargo Bank NA 33467 09/13/23 DENNIS INVESTMENTS $1,000.00 ESCROW REFUND for Special Multiday Event/Music Concert Permit No.SP-23-04SPEV for Denny's Super 30 Bass Tournament Escrow AccountG 101-21700 $1,000.00Total 33468 09/13/23 JASPER SERVICES LLC $500.00 ESCROW REFUND for Special Event/Music Concert Permit No.SP-23-03SPEV for Best Buy Charity Classic Escrow AccountG 101-21700 $500.00Total 33469 09/13/23 MINNETONKA COMMUNITY EDUCATION $250.00 ESCROW REFUND for Special Event License No.23-02SPEV for Tour de Tonka on Aug. 5, 2023 Escrow AccountG 101-21700 $250.00Total 33470 09/13/23 BIFFS, INC. $166.00 Aug 9 - Sep 5, 2023 Portable Restroom Service at Thor Thompson Park Contracted Services W934459E 101-45200-310 $166.00Total 33471 09/13/23 BITUMINOUS ROADWAYS INC. $27,449.23 Payment No.4 for West Arm Rd ConstructionRoad Pavement Project 2 WAR #4E 201-43100-528 $27,449.23Total 33472 09/13/23 CARSON, CLELLAND, & SCHREDER $108.75 Aug. 23' Legal Services - Public Safety AidLegal Fees 4319E 101-41600-304 $217.50 Aug. 23' Legal Services - Sunset DriveLegal Fees 4319E 101-41600-304 $108.75 Aug. 23' Legal Services - LGA CitiesLegal Fees 4319E 101-41600-304 $72.50 Aug. 23' Legal Services - Rental Code ViolationLegal Fees 4319E 101-41600-304 $1,000.00 Aug. 23' Prosecution ServicesLegal Fees 4319E 101-42000-304 $1,507.50Total 33473 09/13/23 CIVICPLUS, LLC $625.00 2023 - 2024 Annual Online Hosting and OrdBank Subscription Renewal Ordinance Codification 270228E 101-41500-119 $625.00Total 33474 09/13/23 FIVE TECHNOLOGY, INC. $93.34 Aug. 23' Monthly IT Managed ServicesIT Technology Support 10823-15E 101-41500-330 $93.33 Aug. 23' Monthly IT Managed ServicesIT Technology Support 10823-15E 601-49400-330 $93.33 Aug. 23' Monthly IT Managed ServicesIT Technology Support 10823-15E 602-49450-330 $280.00Total 33475 09/13/23 GOOD TO BE HOME CLEANING SERVI $375.00 Aug. 2023 City Hall Cleaning ServicesContracted Services 1154E 101-41900-310 $375.00Total 33476 09/13/23 GOPHER STATE ONE-CALL $29.70 August 2023 LocatesContracted Services 3080755E 601-49400-310 $29.70 August 2023 LocatesContracted Services 3080755E 602-49450-310 Batch: 091323ESCROW,091823PAY Page 2 09/14/23 9:24 AMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name $59.40Total 33477 09/13/23 JAMIE K. HOFFMAN $99.25 Reim. - Mileage and dinner for LMC ConferenceOther MiscellaneousE 101-41500-437 $99.25Total 33478 09/13/23 KLEEN-TEX USA LLC $963.90 Purchase of 6x6 Grizzly Vinyl Outdoor MatOther Miscellaneous SIUS2401304E 101-41500-437 $963.90Total 33479 09/13/23 LEAGUE OF MINNESOTA CITIES $2,190.00 2023-2024 Annual LMC City Membership DuesMembership/Dues/Edu 388813E 101-41500-433 $2,190.00Total 33480 09/13/23 LAKE MTKA. CONSERVATION DIST. $1,011.25 LMCD 3rd Qtr.2023 Levy PaymentContracted Services 2023Q3SParE 101-42100-310 $1,011.25Total 33481 09/13/23 LOFFLER COMPANIES, INC. $14.21 Copier Usage 07/22/23-08/21/23Office Equipment/Rental 4448113E 101-41500-413 $14.21 Copier Usage 07/22/23-08/21/23Office Equipment/Rental 4448113E 601-49400-413 $14.20 Copier Usage 07/22/23-08/21/23Office Equipment/Rental 4448113E 602-49450-413 $42.62Total 33482 09/13/23 MEDIACOM, LLC $129.97 Internet Services 09/11/23-10/10/23Internet ServiceE 101-42000-324 $129.97 Internet Services 09/11/23-10/10/23Internet ServiceE 601-49400-324 $129.96 Internet Services 09/11/23-10/10/23Internet ServiceE 602-49450-324 $389.90Total 33483 09/13/23 METRO COUNCIL ENVIRON SERVICES $21,758.45 Oct. 23' Wastewater Treatment Monthly FeeMCES Sewer Service Chg 0001162039E 602-49450-327 $21,758.45Total 33484 09/13/23 LEAGUE OF MINNESOTA CITIES $30.00 2023 LMC Annual MN Mayors Association Membership Fee Other MiscellaneousE 101-41100-437 $30.00Total 33485 09/13/23 MNSPECT, LLC $195.00 Aug. '23' Code Enforcement ServicesContracted Services 0103966-INE 101-42400-310 $276.86 Aug. 23' Residential & Commercial Inspections/Permit Fees/General Fees/Staff Meeting Plan Check Fees 0103983-INE 101-42400-305 $996.75 Aug. 23' Residential & Commercial Inspections/Permit Fees/General Fees/Staff Meeting Contracted Services 0103983-INE 101-42400-310 $1,468.61Total 33486 09/13/23 NAVARRE TRUE VALUE HARDWARE $126.49 Purchase of keyless lock, and home defenseOther Miscellaneous 343463E 101-41900-437 $126.49Total Batch: 091323ESCROW,091823PAY Page 3 09/14/23 9:24 AMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name 33487 09/13/23 NORLINGS LAKE MTKA LANDSCAPE $4,356.02 Landscaping Services - July 2023 Job #M894Landscaping/Gardens/Mai 42295E 101-41940-432 $4,356.02Total 33488 09/13/23 REPUBLIC SERVICES, INC $1,551.84 Aug. 2023 Recycling ServicesContracted Services 0894-006336E 101-42900-310 $1,551.84Total 33489 09/13/23 SECURITY & SOUND CO $273.00 Service to replace power supply for cameras on 8/18/23 Contracted Services 27133E 101-41900-310 $273.00Total 33490 09/13/23 SOLUTION BUILDERS, INC. $236.66 Oct. 23' Managed IT ServicesIT Technology Support SB52696E 602-49450-330 $236.67 Oct. 23' Managed IT ServicesIT Technology Support SB52696E 601-49400-330 $236.67 Oct. 23' Managed IT ServicesIT Technology Support SB52696E 101-41500-330 $710.00Total 33491 09/13/23 VELOCITY TELEPHONE $83.16 Phone & Long Distance Services 09/21/23- 10/21/23 Telephone and Mtce Agre 13960377-nE 101-41500-321 $83.16 Phone & Long Distance Services 09/21/23- 10/21/23 Telephone and Mtce Agre 13960377-nE 601-49400-321 $83.15 Phone & Long Distance Services 09/21/23- 10/21/23 Telephone and Mtce Agre 13960377-nE 602-49450-321 $249.47Total 33492 09/13/23 XCEL ENERGY $76.75 Electric Usage 07/26/23-08/24/23 - 4468 ShorelineUtilities/Electric/Gas 1058385163E 101-43100-381 $14.19 Electric Usage 07/26/23-08/24/23 - XMAS lightsUtilities/Electric/Gas 1058552899E 101-43100-381 $90.94Total 10100 Wells Fargo Bank NA $67,523.87 Fund Summary 10100 Wells Fargo Bank NA 101 GENERAL FUND $17,142.15 201 PUBLIC IMPROV REVOLVING FUND $27,449.23 601 WATER FUND $587.04 602 SEWER FUND $22,345.45 $67,523.87 STAFF MEMO SPECIAL EVENT BACK CHANNEL BREWERY 6TH BEERTHDAY PARTY & BACKTOBERFEST SEPTEMBER 22ND AND 23RD, 2023 1. BACKGROUND: Back Channel Brewery is requesting a permit for 2 special events to be held on Friday, September 22nd and Saturday, September 23rd, for their 6th birthday party and Backtoberfest. The event will be held in the taproom and on the main patio area between the hours of 6:00p.m. to 9:00p.m. on Friday, and between the hours of 10:00a.m. to 10:00p.m. on Saturday. The event will include outdoor music and amplified sound and will allow for patrons to have alcoholic beverages in a defined area demarcated by safety rails and barriers. 2. DISCUSSION: The request for outdoor music and amplified sound requires a special event permit. The event organizers will need to coordinate with the Mound Fire Department and Orono Police Department prior to the event to ensure that all necessary safety precautions have been put into place. Any alcoholic beverages being taken outside of the principal building shall be limited to a defined area demarcated with barriers. At no point shall any alcoholic beverages be allowed outside of the demarcated outdoor area or the principal building. All noise and live music shall comply with section 18-122 of the Spring Park City Code. In the event of legitimate complaints made to the Orono Police Department, Back Channel Brewing shall be required to comply with all recommendations made by the Orono Police Department to bring the noise levels into compliance. The event organizer must send notice of the event to all properties within 350 feet of the Brewery. 3. FINANCIAL CONSIDERATIONS: All required permit fees have been received. 4. RECOMMENDED ACTION: Approve Special Event Application No. 23-16 SPEV: Back Channel Brewing: 6th Beerthday Party and Backtoberfest. Project #819022 Parcel # 6 1 of 8 Form ver. Feb 2022 TEMPORARY CONSTRUCTION EASEMENT Parcel No. 6 This Temporary Construction Easement (“Easement”) is made by and between City of Spring Park, (“Grantor”), a public body corporate and politic and the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota (“Grantee”) (collectively referred to as the “Parties”). Whereas, Grantor is the fee owner of real property that is legally described on the attached Exhibit A (“Property”); and Whereas, Grantee is performing rehabilitation of a force main and gravity pipe along interceptor 6-MO-650 in Mound (“Project”) for which it needs an Easement over, under and across portions of Grantor’s Property; and Whereas, the purpose of the Easement is to, without limitation, locate, stage, install, and construct the Project and associated improvements on the Property (“Work”). Now therefore, for valuable consideration, the receipt of which is acknowledged by Grantor, and in further consideration for the mutual promises made below, the Parties agree as follows: 1. Grant of Easement. Grantor hereby grants and conveys to Grantee, its agents, contractors, permittees, successors, and assigns, a Temporary Construction Easement over, under and across that part of the Property legally described on the attached Exhibit B (the “Easement Area”) and depicted for reference only on the attached Exhibit C for the Work. 2. Use. Grantee may use the Easement Area for purposes of constructing the Project, which may include staging construction materials and equipment, banking soil or project debris, construction project staff parking, installation of utilities, or other specific purposes. 3. No Structures or Impediments. Subsequent to the date of the Easement and until such Easement has expired, Grantor, its heirs, successors, and assigns, will not erect, construct, or create any building, improvement, obstruction, perpendicular utility crossing, or structure of any kind, either above or below the surface of the Easement Area or plant any trees, or stockpile construction debris or construction equipment, or change the grade of the Easement Area without Grantee’s express written consent. Project #819022 Parcel # 6 2 of 8 Form ver. Feb 2022 4. Term of Easement. The Easement shall commence on the January 2, 2024 and shall remain in full force and effect until June 30, 2026 unless otherwise extended in writing by the Parties. 5. Restoration. Upon completion of the Project Grantee shall make reasonable efforts to restore the Easement Area to a like kind condition or the condition that existed prior to the granting of this Easement. 6. Representation of Ownership. Grantor represents that it is the lawful owner and is in lawful possession of the above-described real estate and has the lawful right and authority to convey and grant the Easement. 7. Notices and Demands. All notices, requests, demands, consents, and other communications required or permitted under this Easement shall be in writing and shall be deemed to have been duly and properly given 3 business days after the date of mailing if deposited in a receptacle of the United States mail, first class postage prepaid, addressed to the intended recipient as follows: Grantor: City of Spring Park 4349 Warren Avenue Spring Park, MN 55348 ATTN: Mike Anderson Grantee: Metropolitan Council 390 Robert Street North Saint Paul, MN 55101-1805 Attn: Real Estate Office 8. Termination, Amendment, or Release of Easement. The Easement may only be amended by written agreement signed by the Parties or their successors and/or assigns. If amended, either the Grantee or the Grantor shall record the amendment against the Property. The Grantee may release the Easement at any time during the Term by a executing a Release of Easement and recording the same against the Property and providing a copy of the Release of Easement to the Grantor. After the Term of the Easement has expired, this Easement shall automatically expire without further action by the parties. 9. Miscellaneous. a. Binding Covenant. The provisions and conditions of this Easement shall be binding upon and inure to the benefit of the Parties and their successors and assigns and shall constitute a covenant running with the land. Project #819022 Parcel # 6 3 of 8 Form ver. Feb 2022 b. Waiver. No waiver of any provision of this Easement shall be binding unless executed in writing by the Party making the waiver. No waiver of any provision of this Easement shall be deemed to constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver unless the written waiver so specifies. c. Liability. Each Party is responsible for their own acts and omissions and the results thereof to the extent authorized by the law. This shall not be construed to waive any liability limits or immunities including those arising under Minnesota Statutes Chapter 466. d. Governing Law. This Easement is governed, construed, and enforced under the laws of the State of Minnesota without regard to conflicts of law provisions. e. Counterparts. This Easement may be executed in any number of counterparts, each of which is to be deemed to be an original and the counterparts together constitute one and the same Easement. A physical copy or electronic copy of this Easement, including its signature pages, will be binding, and deemed to be the original. f. Severability. The provisions of this Easement are severable, and in the event that any provision is held to be invalid or unenforceable, the Parties intend that the remaining provisions will remain in full force and effect. g. No Presumption against Drafter. This Easement has been negotiated at arm’s length and with the opportunity for the Parties to consult legal counsel regarding its terms. Accordingly, this Easement shall be interpreted to achieve the intent and purpose of the Parties, without any presumption against the drafting party. h. Authority of Signatory. Each party to this Easement warrants to the other that it has the right and authority to enter into this Easement. The remainder of this page is intentionally left blank. Project #819022 Parcel # 6 4 of 8 Form ver. Feb 2022 METROPOLITAN COUNCIL, a public corporation and political subdivision of the State of Minnesota, By: Title: Acting Regional Administrator STATE OF MINNESOTA ) ) ss COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this ________ day of 2023 by Philip Walljasper, the Acting Regional Administrator on behalf of the Metropolitan Council. _________________________ Notary Public This instrument drafted by: Office of the General Counsel Metropolitan Council 390 North Robert Street Saint Paul, MN 55101 Project #819022 Parcel # 6 5 of 8 Form ver. Feb 2022 CITY OF SPRING PARK By_________________________________ Jerome P. Rockvam Its Mayor And________________________________ Mike Anderson Its City Administrator STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of September 2023, by Jerome P. Rockvam, Mayor, and Mike Anderson, City Administrator, on behalf of the City of Spring Park. _________________________ Notary Public This instrument drafted by: Office of the General Counsel Metropolitan Council 390 North Robert Street Saint Paul, MN 55101 Project #819022 Parcel # 6 6 of 8 Form ver. Feb 2022 EXHIBIT A Legal Description of the Property That part of the following described property: That part of the following described tract lying Northerly of the centerline of County Road No. 15: That part of Government Lot 8, and accretions thereto, Section 18, Township 117, Range 23 described as follows: Beginning at the Southwest corner of said Section 18, thence North along said Section line a distance of 380 feet to the East bank of the main channel, thence Northeasterly along said East bank of said channel to its intersection with the Southerly right-of-way line of the Great Northern Railway (being 205 feet measured along the Southerly right-of-way line from the West line of Section 18), thence Easterly along the Southerly line of said right-of-way a distance of 558.5 feet to the West line of the East 1872.7 feet of said Government Lot 8, thence South 865 feet parallel to the East line of said Government Lot 8 to the South line of said Section 18, thence West 763.3 feet to the point of beginning, which lies West of the East 248.30 feet of said above described property. Section 18, Township 117, Range 23. Torrens Property, Certificate of Title 646733 Project #819022 Parcel # 6 7 of 8 Form ver. Feb 2022 EXHIBIT B Temporary Construction Easement Area Legal Description A temporary easement for construction purposes over, under and across the following described property: That part of Government Lot 8, Section 18, Township 117, Range 23, Hennepin County, lying easterly of the channel, south of Railroad Right-of-way, northerly of County Road No, 15, and west of the east 2,121 feet of said Government Lot 8. Which lies northerly and easterly of the following described line: Commencing at the southwest corner of HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY PROPERTY MAP NO. 49, on file and of record in the office of Registrar of Titles; thence North 00 degrees 17 minutes 26 seconds West, along the west line of said HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY PROPERTY MAP NO. 49, a distance of 59.76 feet; thence South 85 degrees 50 minutes 32 seconds East, along the south line of HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY PROPERTY MAP NO. 49, a distance of 316.95 feet, to the point of beginning of the line to be described; thence South 13 degrees 00 minutes 09 seconds West, a distance of 13.34; thence South 76 degrees 58 minutes 33 seconds East, a distance of 121.08 feet; thence South 12 degrees 27 minutes 57 seconds West a distance of 7.68 feet to the north line of HENNEPIN COUNTY STATE AID HIGHWAY, NO. 15, PLAT 68, and said line there terminating. Project #819022 Parcel # 6 8 of 8 Form ver. Feb 2022 EXHIBIT C Temporary Construction Easement Area Depiction For Reference Purposes Only Page 1 CITY OF SPRING PARK COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION NO. 23-17 A RESOLUTION TO SUBMIT AN APPLICATION FOR A FACILITY AND PLAY SPACES GRANT FROM HENNEPIN YOUTH ACTIVITIES WHEREAS, the Hennepin County Board of Commissioners, via the Hennepin Youth Activities Grants, provides for capital funds to assist local government units of Hennepin County for the development of sports or recreational facilities, and WHEREAS, the City of Spring Park (local government unit, hereinafter LGU) desires to develop additional youth facility enhancements at Thor Thompson Park (name of project, hereinafter PROJECT). NOW, THEREFORE BE IT RESOLVED BY THE City Council (authorizing entity) of the LGU: I. The estimate of the total cost of developing PROJECT shall be $282,659.28. The LGU is requesting $282,659.28 from the Hennepin Youth Activities Grants program and will assume responsibility for providing funds for any additional costs above the quote provided in the application packet. II. The City of Spring Park (LGU or other entity as allowed by LGU) is the owner of the property where the PROJECT is located. The City of Spring Park (same entity) will own the property where PROJECT is located for at least the functional life of the facility, which is estimated to be 25 years. The PROJECT may not be converted to a non-public or non- recreational use within this time period without the approval of Hennepin County. [NOTICE: If the LGU will not be the owner of the property, a Covenant between the LGU and the owner must be executed. Please refer to other program materials for the requirements of the covenant.] III. The City of Spring Park (LGU or other entity as allowed by LGU) agrees to assume one hundred (100) percent of operational and maintenance costs for PROJECT. The City of Spring Park (same entity) will operate PROJECT for its intended purpose as stated in the PROJECT application for the functional life of the facility. IV. LGU agrees to enter into necessary and required agreements with Hennepin County for the specific purpose of developing PROJECT and managing its long-term operation. V. That the City Administrator for the City of Spring Park (authorized representative of the LGU) is authorized and directed to execute the application for the Hennepin Youth Activities Grants program. Page 2 CERTIFICATION I hereby certify that the foregoing resolution is a true and correct copy of the resolution presented to and adopted by the City Council of the City of Spring Park (authorizing entity) at a duly authorized meeting thereof held on the 18th day of September 2023, as shown by the minutes of said meeting in my possession. ADOPTED by the City Council of the City of Spring Park on this 18th day of September 2023. ___________________ Jerome P. Rockvam Mayor Attest: ____________________ Jamie Hoffman City Clerk 128647197v2 2200 IDS Center, 80 South 8th Street Minneapolis, MN 55402 Tel: 612.977.8400 | Fax: 612.977.8650 taftlaw.com MEMORANDUM TO:City of Spring Park, Minnesota FROM:Catherine Courtney; Dan Andersen DATE:August 29, 2023 RE:Resolution Regarding Modification of Conduit Note Enclosed is a resolution for consideration by the City Council at its upcoming meeting on September 18, 2023. As more fully set forth below, the resolution approves the amendment of certain interest rate mechanisms in a conduit note issued by the City of Spring Park, Minnesota (the “City”), for the benefit of PHS/Chanhassen, Inc., a Minnesota nonprofit corporation (the “Borrower”). The proposed amendments do not affect the City’s obligations under the conduit note—the City will continue to have no duty to make any payments or pledge any security to the repayment of the conduit note, both of which remain the responsibility of the Borrower. Background Acting as an issuer of conduit bonds, the City issued its $6,750,000 Senior Housing Revenue Refunding Note, Series 2013C (PHS/Chanhassen, Inc. Project) (the “Note”) to Northeast Bank, a Minnesota state banking corporation (the “Bank”), on November 19, 2013. The City loaned the proceeds of the Note to the Borrower for the purpose of refinancing, in part, the acquisition, construction, and equipping of a 161-unit senior housing and assisted living facility located at 545 Lake Drive in the City of Chanhassen, Minnesota. The Borrower agreed to repay and secure the Note to the Bank. The City did not pledge any payment or security in connection with the Note. Pursuant to the enclosed notice, the Bank has advised the City that the interest rate on the Note is currently a variable rate based on the London Interbank Offered Rate (“LIBOR”)—a key benchmark rate for setting the interest raztes on adjustable rate loans around the world. On June 30, 2023, LIBOR was phased out and is no longer available. This necessitates a change to the benchmark rate used to set interest rates on the Note. Proposed Council Action Under the terms of the Note, the Bank has the discretion to select a comparable benchmark rate to replace LIBOR upon its unavailability. In order to document this change, the Bank has requested that the City and the Borrower enter into an amendment 128647197v2 August 29, 2023 Page 2 to the Note in the form of an Allonge to Note (the “Allonge”). A substantially final version of the Allonge is attached as an exhibit to the resolution enclosed with this memorandum. The City is being asked to approve the execution of the Allonge evidencing the new rates for the Note. Enclosed with this memorandum is a draft resolution for your consideration that approves the form of the Allonge and authorizes its execution. Effect The Allonge does not affect the City’s obligations under the Note or create any new liabilities for the City. The City will not be responsible for paying any bank or legal fees in connection with the execution of the Allonge or for making any payments or pledging any security to the repayment of the Note. The Bank is coordinating the drafting and execution of the documents, and Bond Counsel will be issuing an opinion that the revisions do not adversely affect the tax-exempt status of the Note. If you have any questions, please call Dan Andersen at 612.977.8290. 128647198v3 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF SPRING PARK, MINNESOTA HELD: September 18, 2023 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Spring Park, Hennepin County, Minnesota, was duly called and held at the City Hall in the City on September 18, 2023, at 6:30 p.m. The following members were present: and the following were absent: Member ____________________ introduced the following resolution and moved its adoption: RESOLUTION NO. ____ RESOLUTION AUTHORIZING THE ISSUANCE AND DELIVERY OF AN ALLONGE TO THE CITY OF SPRING PARK’S SENIOR HOUSING REVENUE REFUNDING NOTE, SERIES 2013C (PHS/CHANHASSEN, INC. PROJECT) BE IT RESOLVED, by the City Council of the City of Spring Park, Hennepin County, Minnesota (the “Issuer”), as follows: Section 1. Findings. A. Pursuant to the provisions of Minnesota Statutes, Chapter 462C, as amended, and a resolution of the Issuer adopted on October 7, 2013, the Issuer previously issued its Senior Housing Revenue Refunding Note, Series 2013C (PHS/Chanhassen, Inc. Project), dated November 19, 2013 (the “2013 Note”), in favor of Northeast Bank, a Minnesota state banking corporation (the “Lender”), in the original principal amount of $6,750,000. B. Pursuant to a Loan Agreement dated as of November 19, 2013 (the “2013 Loan Agreement”), between the Issuer and PHS/Chanhassen, Inc., a Minnesota nonprofit corporation (the “Borrower”), the Issuer loaned the proceeds of the 2013 Note to the Borrower for the purpose of refinancing, in part, the acquisition, construction, and equipping of a 161-unit senior housing and assisted living facility located at 545 Lake Drive in the City of Chanhassen, Minnesota (the “Project”), and the Borrower agreed to repay the 2013 Note upon the terms set forth in the 2013 Note. 128647198v3 2 C. Pursuant to a Pledge Agreement, dated as of November 19, 2013 (the “2013 Pledge Agreement”), between the Issuer and the Lender, the Issuer pledged and assigned to the Lender a security interest in all of Issuer’s right, title and interest in and to the 2013 Loan Agreement, except for certain rights of indemnification and reimbursement for certain costs and expenses. D. The Issuer has been advised by the Lender that the 2013 Note is currently owned by the Lender and that the interest rate on the 2013 Note is currently a variable rate to be adjusted on November 19, 2023, and November 19, 2028, to a rate per annum equal to 67% of the sum of the then current LIBOR swap rate for five year obligations, as further described in the 2013 Note (the “Current Index”), plus 275 basis points (the “Adjusted Rate”); provided, however, that on the date of adjustment, the Adjusted Rate must not be adjusted by more than 200 basis points from the previous interest rate, and that the Adjusted Rate must never be less than 2.85% nor more than 6.00%. E. As a result of the discontinuation of the Current Index on June 30, 2023, the Lender and Borrower have agreed to modify the terms of the 2013 Note pursuant to an Allonge to Note substantially in the form attached hereto as Exhibit A (the “Allonge”), in order to (i) replace the Current Index used to calculate the interest rate on the 2013 Note with 1 Month Term SOFR, as further described in the Allonge (the “Replacement Index”), and (ii) make corresponding adjustments to the spread used to calculate the Adjusted Rate (as defined in the 2013 Note). F. The Lender has advised the Issuer that the Adjusted Rate as defined in the Allonge to Note is a rate comparable to the Adjusted Rate as defined in the 2013 Note. Section 2. Authorization A. The Issuer approves the terms of the Allonge in substantially the form attached hereto as Exhibit A, subject to modifications as approved by Taft Stettinius & Hollister LLP as bond counsel to the Issuer, the Mayor and the City Administrator, provided that delivery of the Allonge shall be conclusive evidence of approval. B. The Mayor and the City Administrator are authorized and directed to execute and deliver the Allonge and any other related documents necessary to evidence the modifications agreed to by Borrower and Lender and/or necessary, in the opinion of Taft Stettinius & Hollister LLP as bond counsel to the Issuer, to maintain the tax exempt status of interest on the 2013 Note, all as approved as to form and substance by bond counsel. All prior actions of the Mayor and the City Administrator taken with regard to the Allonge are ratified and approved. Section 3. Delivery. Delivery of the Allonge shall be made at a place mutually satisfactory to the Issuer, the Lender, and the Borrower. The Allonge, when prepared in accordance with this Resolution and executed, shall be delivered by or under the direction of the City Administrator to the Lender in exchange for the execution and delivery of the Allonge by the Lender and the Borrower. 128647198v3 3 Section 4. Effect of Resolution. Except as amended or modified by the Allonge, all terms and conditions of the 2013 Note remain in full force and effect. Adopted: September 18, 2023 By: ___________________________________ Its: Mayor ATTEST: By: Its: City Clerk 128647198v3 Exhibit A ALLONGE TO NOTE This Allonge to Note is dated and effective as of ______________, 2023 (the “Effective Date”), and is attached to and made a part of that certain Senior Housing Revenue Refunding Note, Series 2013C (PHS/Chanhassen, Inc. Project), dated November 19, 2013 (the “Note”), issued by the City of Spring Park, Minnesota, a municipal corporation and political subdivision of the State of Minnesota (the “Issuer”), in the original principal amount of $6,750,000.00 in favor of Northeast Bank, a Minnesota state banking corporation (“Lender”), for the benefit of PHS/Chanhassen, Inc., a Minnesota nonprofit corporation (the “Borrower”). 1. Due to the unavailability of the LIBOR swap rate for five year obligations (as described in the Note) after June 30, 2023, and as contemplated by the terms of the Note in the event of such unavailability, paragraph 2 of the Note is hereby deleted and replaced in its entirety with the following: “2. On November 19, 2018, November 19, 2023, and November 19, 2028 (each an “Adjustment Date”), the interest rate on this Note will be adjusted to a rate per annum equal to, (i) for each Adjustment Date occurring on or before June 30, 2023, 67% of the sum of the then current LIBOR swap rate for five year obligations (as such rate is published by the Federal Reserve in its Federal Reserve Statistical Release Document No. H.15(519), “Selected Interest Rates,” or such equivalent successor publication as selected by the Lender) plus 275 basis points (the “Adjusted LIBOR Rate”) or, (ii) for each Adjustment Date occurring after June 30, 2023, 67% of the sum of the then current 1 Month Term SOFR Rate (as defined below), plus 283 basis points (the “Adjusted SOFR Rate” and, together with the Adjusted LIBOR Rate, the “Adjusted Rate”); provided, however, that on any Adjustment Date the applicable Adjusted Rate shall not be adjusted by more than 200 basis points from the previous interest rate, and that the Adjusted Rate shall never be less than 2.85% nor more than 6.00%. All such adjustments to the interest rate shall be made and become effective as of the applicable Adjustment Date and the interest rate as adjusted shall remain in effect through and including the day immediately preceding the next Adjustment Date or August 1, 2033 (the “Final Maturity Date”), as applicable. As used herein, “1 Month Term SOFR Rate” means the 1 Month Term SOFR rate for five year obligations published by Wells Fargo in its Wells Fargo, Interest Rate Risk Management, Daily Rate Update, Source by Wells Fargo Securities (the “WF Release Document”). The “1 Month Term SOFR rate for five year obligations” will be determined by the Lender using the intersection of the 1M Term SOFR and Bullet that corresponds to a 5 year rate term. In the event the WF Release Document becomes unavailable or no longer publishes the applicable rate, or the Lender elects to change publications as may be permitted hereunder, the Lender reserves the right to select an alternative, but equivalent, successor publication or source, in its sole discretion. 128647198v3 2 Upon an Event of Default as defined in the Loan Agreement (hereinafter defined), the interest rate shall be adjusted by an increase of 400 basis points (the “Default Rate”) until such time as the Event of Default has been cured.” 2. All other terms and conditions of the Note are acknowledged and confirmed, and no other modification or amendment is made to the Note except as set forth in this Allonge. 3. This Allonge may be signed in counterparts which, taken together, will form one original. 4. The Loan Agreement is deemed amended to the extent necessary to reflect the amendments made to the Note by this Allonge. (signature pages to follow) 128647198v3 3 (signature page to Allonge) IN WITNESS WHEREOF, the undersigned representatives of the Issuer, the Lender, and the Borrower have executed this Allonge to Note as of the Effective Date. ISSUER: CITY OF SPRING PARK, MINNESOTA By:___________________________ Its Mayor By:___________________________ Its City Administrator 128647198v3 4 (signature page to Allonge) Agreed to and accepted as of the Effective Date. LENDER: NORTHEAST BANK By___________________________ Its_________________________ 128647198v3 5 (signature page to Allonge) Agreed to and accepted as of the Effective Date. BORROWER: PHS/CHANHASSEN, INC. By___________________________ Its_________________________ 128647198v3 6 STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF SPRING PARK I, the undersigned, being the duly qualified and acting City Clerk of the City of Spring Park, Minnesota, DO HEREBY CERTIFY that I have carefully compared the foregoing extract of minutes with the original minutes of a meeting of the City Council of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing the Issuance and Delivery of an Allonge to the City of Spring Park’s Senior Housing Revenue Refunding Note, Series 2013C (PHS/Chanhassen, Inc. Project). WITNESS my hand as the City Clerk of the City of Spring Park, Minnesota on ____________, 2023. _____________________________ City Clerk 128648521v2 2200 IDS Center, 80 South 8th Street Minneapolis, MN 55402 Tel: 612.977.8400 | Fax: 612.977.8650 taftlaw.com MEMORANDUM TO:City of Spring Park, Minnesota FROM:Catherine Courtney; Dan Andersen DATE:August 29, 2023 RE:Resolution Regarding Modification of Conduit Note Enclosed is a resolution for consideration by the City Council at its upcoming meeting on September 18, 2023. As more fully set forth below, the resolution approves the amendment of certain interest rate mechanisms in a conduit note issued by the City of Spring Park, Minnesota (the “City”), for the benefit of PHS/Lake Minnetonka, LLC, a Minnesota limited liability company whose sole member is a Section 501(c)(3) nonprofit organization (the “Borrower”). The proposed amendments do not affect the City’s obligations under the conduit note—the City will continue to have no duty to make any payments or pledge any security to the repayment of the conduit note, both of which remain the responsibility of the Borrower. Background Acting as an issuer of conduit bonds, the City issued Housing and Health Care Revenue Refunding Note, Series 2014A (PHS/Lake Minnetonka Campus Project), dated June 3, 2014 (the “Note”) to Northeast Bank, a Minnesota state banking corporation (the “Bank”). The City loaned the proceeds of the Note to the Borrower for the purpose of refinancing of a portion of the then-outstanding principal amount of the $28,000,000 Housing and Health Care Revenue Note (PHS/Lake Minnetonka Campus Project) Series 2010 issued by the City to (i) finance the acquisition, construction, and equipping of new facilities, the demolition of two existing buildings, and renovation of existing facilities to create a senior housing development which consists of approximately 236 senior housing units, including approximately 166 independent living units, 52 assisted living units, 18 memory care units, and an approximately 20,000 square foot town center for use by the residents of the senior housing units located at 4501, 4523, 4527, and 4599 Shoreline Drive in the City; (ii) refund the City's outstanding Multifamily Housing Revenue Bonds (Presbyterian Homes Housing and Assisted Living, Inc. Project) Series 2007 issued to finance the acquisition and renovation of a 75-unit multifamily housing development comprised of 2 buildings located at 4599 and 4601 Shoreline Drive and 2380 Island Drive in the City (the "Park Hill Apartments") and to refinance the acquisition and renovation of a 51-unit multifamily housing development comprised of 3 buildings located at 4579, 4589, and 4599 Shoreline Drive in the City (the "Shoreview Apartments") (together, the "Spring 128648521v2 August 29, 2023 Page 2 Park Portion"); (iii) refund a portion of the outstanding City of Arden Hills, Minnesota Health Care and Housing Revenue Refunding Bonds (Presbyterian Homes of Arden Hills, Inc. Project), Series 1999B, which were issued to finance the renovation and improvement of the approximately 192-bed skilled nursing facility located at 4527 Shoreline Drive in Spring Park and also were used to finance the costs of the refinancing, acquisition, construction, or renovation of certain housing and health care facilities in the Cities of Arden Hills (the "Arden Hills Portion") and Bloomington, Minnesota and Ankeny, Iowa (the "Ankeny Portion") (collectively, the “Project”). The Borrower agreed to repay and secure the Note to the Bank. The City did not pledge any payment or security in connection with the Note. Pursuant to the enclosed notice, the Bank has advised the City that the interest rate on the Note is currently a variable rate based on the London Interbank Offered Rate (“LIBOR”)—a key benchmark rate for setting the interest rates on adjustable rate loans around the world. On June 30, 2023, LIBOR was out and is no longer available. This necessitates a change to the benchmark rate used to set interest rates on the Note. Proposed Council Action Under the terms of the Note, the Bank has the discretion to select a comparable benchmark rate to replace LIBOR upon its unavailability. In order to document this change, the Bank has requested that the City and the Borrower enter into an amendment to the Note in the form of an Allonge to Note (the “Allonge”). A substantially final version of the Allonge is attached as an exhibit to the resolution enclosed with this memorandum. The City is being asked to approve the execution of the Allonge evidencing the new rates for the Note. Enclosed with this memorandum is a draft resolution for your consideration that approves the form of the Allonge and authorizes its execution. Effect The Allonge does not affect the City’s obligations under the Note or create any new liabilities for the City. The City will not be responsible for paying any bank or legal fees in connection with the execution of the Allonge or for making any payments or pledging any security to the repayment of the Note. The Bank is coordinating the drafting and execution of the documents, and Bond Counsel will be issuing an opinion that the revisions do not adversely affect the tax-exempt status of the Note. If you have any questions, please call Dan Andersen at 612.977.8290. 128648517v3 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF SPRING PARK, MINNESOTA HELD: September 18, 2023 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Spring Park, Hennepin County, Minnesota, was duly called and held at the City Hall in the City on September 18, 2023, at 6:30 p.m. The following members were present: and the following were absent: Member ____________________ introduced the following resolution and moved its adoption: RESOLUTION NO. ____ RESOLUTION AUTHORIZING THE ISSUANCE AND DELIVERY OF AN ALLONGE TO THE CITY OF SPRING PARK’S HOUSING AND HEALTH CARE REVENUE REFUNDING NOTE, SERIES 2014A (PHS/LAKE MINNETONKA CAMPUS PROJECT) BE IT RESOLVED, by the City Council of the City of Spring Park, Hennepin County, Minnesota (the “Issuer”), as follows: Section 1. Findings. A. Pursuant to the provisions of Minnesota Statutes, Chapter 462C, as amended, and a resolution of the Issuer adopted on April 21, 2014, the Issuer previously issued its Housing and Health Care Revenue Refunding Note, Series 2014A (PHS/Lake Minnetonka Campus Project), dated June 3, 2014 (the “2014 Note”), in favor of Northeast Bank, a Minnesota state banking corporation (the “Lender”), in the original principal amount of $9,300,000. B. Pursuant to a Loan Agreement dated as of June 3, 2014 (the “2014 Loan Agreement”), between the Issuer and PHS/Lake Minnetonka, LLC, a Minnesota limited liability company whose sole member is a Section 501(c)(3) nonprofit organization (the “Borrower”), the Issuer loaned the proceeds of the 2014 Note to the Borrower for the purpose of refinancing of a portion of the then-outstanding principal amount of the $28,000,000 Housing and Health Care Revenue Note (PHS/Lake Minnetonka Campus Project) Series 2010 issued by the City to (i) finance the acquisition, construction, and equipping of new facilities, the demolition of two existing buildings, and renovation of existing facilities to create a senior housing development which consists of approximately 236 senior housing units, including approximately 166 128648517v3 2 independent living units, 52 assisted living units, 18 memory care units, and an approximately 20,000 square foot town center for use by the residents of the senior housing units located at 4501, 4523, 4527, and 4599 Shoreline Drive in the City; (ii) refund the City's outstanding Multifamily Housing Revenue Bonds (Presbyterian Homes Housing and Assisted Living, Inc. Project) Series 2007 issued to finance the acquisition and renovation of a 75-unit multifamily housing development comprised of 2 buildings located at 4599 and 4601 Shoreline Drive and 2380 Island Drive in the City (the "Park Hill Apartments") and to refinance the acquisition and renovation of a 51-unit multifamily housing development comprised of 3 buildings located at 4579, 4589, and 4599 Shoreline Drive in the City (the "Shoreview Apartments") (together, the "Spring Park Portion"); (iii) refund a portion of the outstanding City of Arden Hills, Minnesota Health Care and Housing Revenue Refunding Bonds (Presbyterian Homes of Arden Hills, Inc. Project), Series 1999B, which were issued to finance the renovation and improvement of the approximately 192-bed skilled nursing facility located at 4527 Shoreline Drive in Spring Park and also were used to finance the costs of the refinancing, acquisition, construction, or renovation of certain housing and health care facilities in the Cities of Arden Hills (the "Arden Hills Portion") and Bloomington, Minnesota and Ankeny, Iowa (the "Ankeny Portion") (collectively, the “Project”), and the Borrower agreed to repay the 2014 Note upon the terms set forth in the 2014 Note. C. Pursuant to a Pledge Agreement, dated as of June 3, 2014 (the “2014 Pledge Agreement”), between the Issuer and the Lender, the Issuer pledged and assigned to the Lender a security interest in all of Issuer’s right, title and interest in and to the 2014 Loan Agreement, except for certain rights of indemnification and reimbursement for certain costs and expenses. D. The Issuer has been advised by the Lender that the 2014 Note is currently owned by the Lender and that the interest rate on the 2014 Note is currently a variable rate to be adjusted on certain Adjustment Dates (as defined in the 2014 Note) to a rate per annum equal to 67% of the sum of the then current LIBOR swap rate for five year obligations, as further described in the 2014 Note (the “Current Index”), plus 265 basis points (the “Adjusted Rate”); provided, however, that on the date of adjustment, the Adjusted Rate must not be adjusted by more than 200 basis points from the previous interest rate, and that the Adjusted Rate must never be less than 2.85% nor more than 6.00%. E. As a result of the discontinuation of the Current Index on June 30, 2023, the Lender and Borrower have agreed to modify the terms of the 2014 Note pursuant to an Allonge to Note substantially in the form attached hereto as Exhibit A (the “Allonge”), in order to (i) replace the Current Index used to calculate the interest rate on the 2014 Note with 1 Month Term SOFR, as further described in the Allonge (the “Replacement Index”), and (ii) make corresponding adjustments to the spread used to calculate the Adjusted Rate (as defined in the 2014 Note). F. The Lender has advised the Issuer that the Adjusted Rate as defined in the Allonge to Note is a rate comparable to the Adjusted Rate as defined in the 2014 Note. 128648517v3 3 Section 2. Authorization A. The Issuer approves the terms of the Allonge in substantially the form attached hereto as Exhibit A, subject to modifications as approved by Taft Stettinius & Hollister LLP as bond counsel to the Issuer, the Mayor and the City Administrator, provided that delivery of the Allonge shall be conclusive evidence of approval. B. The Mayor and the City Administrator are authorized and directed to execute and deliver the Allonge and any other related documents necessary to evidence the modifications agreed to by Borrower and Lender and/or necessary, in the opinion of Taft Stettinius & Hollister LLP as bond counsel to the Issuer, to maintain the tax exempt status of interest on the 2014 Note, all as approved as to form and substance by bond counsel. All prior actions of the Mayor and the City Administrator taken with regard to the Allonge are ratified and approved. Section 3. Delivery. Delivery of the Allonge shall be made at a place mutually satisfactory to the Issuer, the Lender, and the Borrower. The Allonge, when prepared in accordance with this Resolution and executed, shall be delivered by or under the direction of the City Administrator to the Lender in exchange for the execution and delivery of the Allonge by the Lender and the Borrower. Section 4. Effect of Resolution. Except as amended or modified by the Allonge, all terms and conditions of the 2014 Note remain in full force and effect. Adopted: September 18, 2023 By: ___________________________________ Its: Mayor ATTEST: By: Its: City Clerk 128648517v3 Exhibit A ALLONGE TO NOTE This Allonge to Note is dated and effective as of ______________, 2023 (the “Effective Date”), and is attached to and made a part of that certain Housing and Health Care Revenue Refunding Note, Series 2014A (PHS/Lake Minnetonka Campus Project), dated June 3, 2014 (the “Note”), issued by the City of Spring Park, Minnesota, a municipal corporation and political subdivision of the State of Minnesota (the “Issuer”), in the original principal amount of $9,300,000.00 in favor of Northeast Bank, a Minnesota state banking corporation (“Lender”), for the benefit of PHS/Lake Minnetonka, LLC, a Minnesota limited liability company whose sole member is a Section 501(c)(3) nonprofit organization (the “Borrower”). 1. Due to the unavailability of the LIBOR swap rate for five year obligations (as described in the Note) after June 30, 2023, and as contemplated by the terms of the Note in the event of such unavailability, paragraph 2 of the Note is hereby deleted and replaced in its entirety with the following: “2. On June 1, 2019, June 1, 2024, and June 1, 2029 (each an “Adjustment Date”), the interest rate on this Note will be adjusted to a rate per annum equal to, (i) for each Adjustment Date occurring on or before June 30, 2023, 67% of the sum of the then current LIBOR swap rate for five year obligations (as such rate is published by the Federal Reserve in its Federal Reserve Statistical Release Document No. H.15(519), “Selected Interest Rates,” or such equivalent successor publication as selected by the Lender) plus 265 basis points (the “Adjusted LIBOR Rate”) or, (ii) for each Adjustment Date occurring after June 30, 2023, 67% of the sum of the then current 1 Month Term SOFR Rate (as defined below), plus 273 basis points (the “Adjusted SOFR Rate” and, together with the Adjusted LIBOR Rate, the “Adjusted Rate”); provided, however, that on any Adjustment Date the Adjusted Rate shall not be adjusted by more than 200 basis points from the previous interest rate, and that the Adjusted Rate shall never be less than 2.85% nor more than 6.00%. All such adjustments to the interest rate shall be made and become effective as of the applicable Adjustment Date and the interest rate as adjusted shall remain in effect through and including the day immediately preceding the next Adjustment Date or June 1, 2034 (the “Final Maturity Date”), as applicable. As used herein, “1 Month Term SOFR Rate” means the 1 Month Term SOFR rate for five year obligations published by Wells Fargo in its Wells Fargo, Interest Rate Risk Management, Daily Rate Update, Source by Wells Fargo Securities (the “WF Release Document”). The “1 Month Term SOFR rate for five year obligations” will be determined by the Lender using the intersection of the 1M Term SOFR and Bullet that corresponds to a 5 year rate term. In the event the WF Release Document becomes unavailable or no longer publishes the applicable rate, or the Lender elects to change publications as may be permitted hereunder, the Lender reserves the right to select an alternative, but equivalent, successor publication or source, in its sole discretion. 128648517v3 2 Upon an Event of Default as defined in the Loan Agreement (hereinafter defined), the interest rate shall be adjusted by an increase of 400 basis points (the “Default Rate”) until such time as the Event of Default has been cured.” 2. All other terms and conditions of the Note are acknowledged and confirmed, and no other modification or amendment is made to the Note except as set forth in this Allonge. 3. This Allonge may be signed in counterparts which, taken together, will form one original. 4. The Loan Agreement is deemed amended to the extent necessary to reflect the amendments made to the Note by this Allonge. (signature pages to follow) 128648517v3 3 (signature page to Allonge) IN WITNESS WHEREOF, the undersigned representatives of the Issuer, the Lender, and the Borrower have executed this Allonge to Note as of the Effective Date. ISSUER: CITY OF SPRING PARK, MINNESOTA By:___________________________ Its Mayor By:___________________________ Its City Administrator 128648517v3 4 (signature page to Allonge) Agreed to and accepted as of the Effective Date. LENDER: NORTHEAST BANK By___________________________ Its_________________________ 128648517v3 5 (signature page to Allonge) Agreed to and accepted as of the Effective Date. BORROWER: PHS/LAKE MINNETONKA, LLC, a Minnesota limited liability company By___________________________ Its_________________________ 128648517v3 6 STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF SPRING PARK I, the undersigned, being the duly qualified and acting City Clerk of the City of Spring Park, Minnesota, DO HEREBY CERTIFY that I have carefully compared the foregoing extract of minutes with the original minutes of a meeting of the City Council of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing the Issuance and Delivery of an Allonge to the City of Spring Park’s Health Care Revenue Refunding Note, Series 2014A (PHS/Lake Minnetonka Campus Project) . WITNESS my hand as the City Clerk of the City of Spring Park, Minnesota on ____________, 2023. _____________________________ City Clerk CITY OF SPRING PARK SPRING PARK, MINNESOTA RESOLUTION 23-16 A RESOLUTION ADOPTING 2024 PRELIMINARY TAX LEVY BE IT RESOLVED by the City Council of the City of Spring Park, County of Hennepin, Minnesota, that the following sums of money be levied for the current year, collectible in 2024, upon taxable property in the City of Spring Park, for the following purposes: General Revenue Levy: $1,479,483.00 Debt Service Levy: $142,279.00 Total General Fund Levy: $1,621,762.00 The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Hennepin County, Minnesota. Adopted by the City Council of the City of Spring Park, Minnesota on September 18, 2023. Approved: ______________________ Jerome P. Rockvam, Mayor Attest: ______________________ Jamie Hoffman, City Clerk