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2026-01-26 City Council Meeting Packet
AGENDA MAPLEWOOD CITY COUNCIL 7:00 P.M. Monday, January 26, 2026 City Hall, Council Chambers Meeting No. 02-26 Pursuant to Minn. Stat. 13D.02, one or more councilmembers may be participating remotely A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE C. ROLL CALL D. APPROVAL OF AGENDA E. APPROVAL OF MINUTES 1. January 12, 2026 City Council Workshop Minutes 2. January 12, 2026 City Council Meeting Minutes F. APPOINTMENTS AND PRESENTATIONS 1. Administrative Presentations a. Council Calendar Update 2. Council Presentations G. CONSENT AGENDA – Items on the Consent Agenda are considered routine and non- controversial and are approved by one motion of the council. If a councilmember requests additional information or wants to make a comment regarding an item, the vote should be held until the questions or comments are made then the single vote should be taken. If a councilmember objects to an item it should be removed and acted upon as a separate item. 1. Approval of Claims 2. Resolution for Reduction of Retainage on Existing Construction Contract, 2025 Maplewood Street improvements, City Project 24-12 3. Purchase Fire Department Response Vehicle 4. Agreement for Employee Mental Health Services H. PUBLIC HEARINGS – If you are here for a Public Hearing please familiarize yourself with the Rules of Civility printed on the back of the agenda. Sign in with the City Clerk before addressing the council. At the podium please state your name and address clearly for the record. All comments/questions shall be posed to the Mayor and Council. The Mayor will then direct staff, as appropriate, to answer questions or respond to comments. None I. UNFINISHED BUSINESS 1. 2026 Boards and Commissions Update J.NEW BUSINESS 1. Ordinance Regulating the Sale of Dogs and Cats at Pet Stores and Creating an Administrative Offense for Violations a. Ordinance Amending Chapter 10, Animals b. Resolution Authorizing Publication of the Ordinance by Title and Summary (4 votes) 2. 2026 Maplewood Street Improvements, City Project 25-21 a. Resolution Accepting Feasibility Study, Authorizing Preparation of Plans and Specifications, and Calling for a Public Hearing b. Professional Design Services Agreement with WSB Consulting 3. 2026 Legislative Program 4. YMCA Lease Extension 5. Resolution Requesting Legislative Approval of Local Option Sales Tax K. AWARD OF BIDS None L. ADJOURNMENT Sign language interpreters for hearing impaired persons are available for public hearings upon request. The request for this must be made at least 96 hours in advance. Please call the City Clerk’s Office at 651.249.2000 to make arrangements. Assisted Listening Devices are also available. Please check with the City Clerk for availability. RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. E1 MINUTES MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 6:00P.M. Monday, January12, 2026 City Hall, Council Chambers A.CALL TO ORDER A meeting of the City Council was heldin the City Hall Council Chambers and was called to order at6:00 p.m.by Mayor Abrams. B.ROLL CALL Marylee Abrams, MayorPresent Rebecca Cave, CouncilmemberPresent Kathleen Juenemann, CouncilmemberPresent Chonburi Lee, CouncilmemberPresent Nikki Villavicencio, CouncilmemberPresent C.APPROVAL OF AGENDA CouncilmemberCavemoved toapprove the agenda assubmitted. Seconded by CouncilmemberLee Ayes – All The motion passed. D.UNFINISHED BUSINESS None E.NEW BUSINESS 1.Local Option Sales Tax - Discussion City Manager Sable began the discussion. Todd Stone with Rapp Strategies, provided further information. Additional questionsand commentsby the councilwere addressed by City Manager Sable and Todd Stone. No action required. F.ADJOURNMENT Mayor Abramsadjourned the meetingat7:02p.m. January 12, 2026 Council Manager Workshop Minutes 1 Council Packet Page Number 1 of 476 E2 MINUTES MAPLEWOOD CITY COUNCIL 7:00 P.M. Monday, January 12, 2026 City Hall, Council Chambers Meeting No. 01-26 A.CALL TO ORDER A meeting of the City Council was held in the City Hall Council Chambersand was called to order at7:08p.m.byMayor Abrams. Mayor Abrams shared reflections on recent immigration enforcement activities. B.PLEDGE OF ALLEGIANCE C.ROLL CALL Marylee Abrams, MayorPresent Rebecca Cave, CouncilmemberPresent Kathleen Juenemann, CouncilmemberPresent Chonburi Lee, CouncilmemberPresent Nikki Villavicencio, CouncilmemberPresent D.APPROVAL OF AGENDA Under Council Presentations Reflection CouncilmemberJuenemann moved to approve theamended agenda as amended. Seconded by Councilmember CaveAyes – All The motion passed. E.APPROVAL OF MINUTES 1.December 8, 2025 City Council WorkshopMinutes CouncilmemberCavemoved to approve the December 8, 2025 City Council Workshop Minutes assubmitted. Seconded by Councilmember LeeAyes – All The motion passed. 2.December 8, 2025 City CouncilMeeting Minutes CouncilmemberJuenemann moved to approve the December 8, 2025 City Council MeetingMinutes assubmitted. Seconded by CouncilmemberCaveAyes – All January 12, 2026 City Council Meeting Minutes 1 Council Packet Page Number 2 of 476 E2 The motion passed. F.APPOINTMENTS AND PRESENTATIONS 1.Administrative Presentations a.Council Calendar Update City ManagerSablegave an update to the council calendar and reviewed other topics of concern or interest requested by councilmembers. 2.Council Presentations Reflection Councilmember Lee shared reflections on the past week’s immigration enforcement activities. 3.2026 City Council Appointments City Manager Sable gave the staff report. CouncilmemberLee moved to approve the 2026 City Council appointments to boards, commissions and miscellaneous groups. Appointment2026 Appointments Acting Mayor Councilmember Cave Auditor Contact Mayor Abrams Councilmember Juenemann Bronze Line Councilmember Villavicencio Councilmember Cave (ALT) Century Avenue Coalition Councilmember Lee Councilmember Villavicencio(ALT) Community Design Review Board Councilmember Lee Mike Martin (SL) Data Request Officials: Responsible Authority/Data Compliance OfficialAndrea Sindt City Personnel Designee Nancy Steele City Law Enforcement Designee Brian Bierdeman Development Committee Mayor Abrams Councilmember Lee Environment & Natural Resources Commission Councilmember Juenemann Shann Finwall (SL) Heritage Preservation Commission Councilmember Lee January 12, 2026 City Council Meeting Minutes 2 Council Packet Page Number 3 of 476 E2 Joe Sheeran (SL) Maplewood Communications Mayor Abrams Councilmember Villavicencio(ALT) Maplewood Green Team Councilmember Juenemann Shann Finwall (SL) Parks & RecreationCommission Councilmember Villavicencio Audra Robbins (SL) Planning Commission CouncilmemberLee Mike Martin (SL) Ramsey County DispatchPolicy Committee Councilmember Juenemann Mayor Abrams (ALT) Ramsey County League of Local Governments Mayor Abrams Councilmember Villavicencio (ALT) Regional Mayors Mayor Abrams Rice/Larpenteur Project Mayor Abrams Councilmember Cave(ALT) Shann Finwall (SL) St. Paul Regional Water Services Councilmember Cave Board of Water Commissioners Michael Sable (ALT) Suburban Area Chamberof Commerce Michael Sable Mayor Abrams (REP) Councilmember Cave(REP) Suburban Rate Authority Steve Love Seconded by Councilmember Juenemann Ayes – All The motion passed. 4.Resolution of Appreciation for Sue Vento Mayor Abrams read the resolution. Sue Vento expressed thanks to the council for acknowledging her years of service. CouncilmemberJuenemannmoved to approve the Resolution of Appreciation for Sue Vento. 26-01-2463 RESOLUTION OF APPRECIATION HONORING METROPOLITAN COUNCIL MEMBER SUE VENTO January 12, 2026 City Council Meeting Minutes 3 Council Packet Page Number 4 of 476 E2 WHEREAS,Sue Vento has exemplified a lifelong commitment to education, community service, and regional collaboration, dedicating her personal and professional life to improving the lives of others; and WHEREAS,Sue began her career as an educator, teaching in the Willmar School District from 1977 to 1983, before serving for more than 27 years as a field representative, organizer, and lobbyist for educators through the Minnesota Education Association and Education Minnesota, advancing the cause of public education and supporting those who dedicate their lives to teaching; and WHEREAS, following her distinguished career in education, Sue continued her lifelong commitment to service as Director of Outreach for the Church of the Assumption in St. Paul and through her involvement with numerous community organizations, including Twin Cities Habitat for Humanity, Friends of the St. Paul Library, the National Park Trust, Friends of the Mississippi River, Neighborhood House, Merrick Community Services, and the Ramsey County Historical Society, each reflecting her deep dedication to compassion, equity, education, and community well-being; and furthermore, her steadfast advocacy for parks and open spaces has enriched the region’s environmental legacy, preserving natural treasures for the enjoyment and inspiration of future generations; and WHEREAS,Sue was appointed to the Metropolitan Council by Governor Tim Walz in March 2019 and has demonstrated steadfast leadership, collaboration, and empathy—working tirelessly to promote sustainable growth, preserve the region’s natural resources, and ensure that all residents have access to opportunities and services that enhance quality of life; and WHEREAS,colleagues on the Metropolitan Council have celebrated Sue’s humility, warmth, and authenticity—qualities that have fostered unity, inspired trust, and elevated the tone of regional governance; and WHEREAS,Sue Vento’s enduring legacy will be measured not only in policies and programs, but also in the countless relationships, partnerships, and friendships she has built throughout her years of service. NOW, THEREFORE, BE IT RESOLVED, that the City of Maplewood expresses its deepest appreciation to Metropolitan Council Member Sue Vento for her outstanding leadership, her unwavering advocacy for education and environmental stewardship, and her lifelong commitment to building stronger, more compassionate communities throughout the Twin Cities region. BE IT FURTHER RESOLVED, that the City Council of Maplewood extends its sincere gratitude and best wishes to Sue Vento for continued success, fulfillment, and joy in all futureendeavors. Seconded by CouncilmemberCave Ayes – All The motion passed. 5.Resolution Accepting Donation from Merit Chevrolet Fire and EMS Chief Mondor gave the staff report. January 12, 2026 City Council Meeting Minutes 4 Council Packet Page Number 5 of 476 E2 CouncilmemberCavemoved toapprove the resolution accepting the donation made by Merit Chevrolet. 26-01-2464 RESOLUTION EXPRESSING ACCEPTANCE OF AND APPRECIATION OF A DONATION TO THE MAPLEWOOD PUBLIC SAFETY DEPARTMENT WHEREAS, Merit Chevrolethas presented to the Maplewood Public Safety Department a donation in the amount of $1,000.00; and WHEREAS, this donation is intended for the purpose to benefit the Department; and WHEREAS, the Maplewood City Council is appreciative of the donation and commends Merit Chevroletfor their civic efforts, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Maplewood, Minnesota, that: 1.The donation is accepted and acknowledged with gratitude; and 2.The donation will be appropriated for the Public Safety Department as designated; and 3.The appropriate budget adjustments be made Seconded by Councilmember JuenemannAyes – All The motion passed. 6.Resolution Accepting Donation from Schmelz Countryside Fire & EMS Chief Mondor gave the staff report. CouncilmemberJuenemannmoved toapprove the resolution accepting the donation made by Schmelz Countryside Volkswagen. 26-01-2465 RESOLUTION EXPRESSING ACCEPTANCE OF ANDAPPRECIATION OF A DONATION TO THE MAPLEWOODPUBLIC SAFETY DEPARTMENT WHEREAS, Schmelz Countryside has presented to the Maplewood Public Safety Department a donation in the amount of $3,000.00; and WHEREAS, this donation is intended for the purpose to benefit the Department; and WHEREAS, the Maplewood City Council is appreciative of the donation and commends Schmelz Countryside Volkswagen for their civic efforts, January 12, 2026 City Council Meeting Minutes 5 Council Packet Page Number 6 of 476 E2 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Maplewood, Minnesota, that: 1.The donation is accepted and acknowledged with gratitude; and 2.The donation will be appropriated for the Public Safety Department as designated; and 3.The appropriate budget adjustments be made Seconded by Councilmember VillavicencioAyes – All The motion passed. G.CONSENT AGENDA – Items on the Consent Agenda are considered routine and non- controversial and are approved by one motion of the council. If a councilmember requests additional information or wants to make a comment regarding an item, the vote should be held until the questions or comments are made then the single vote should be taken. If a councilmember objects to an item it should be removed and acted upon as a separate item. CouncilmemberLeemoved toapprove agenda items G1-G10. Seconded by CouncilmemberJuenemann Ayes – All The motion passed. 1.Approval of Claims CouncilmemberLeemoved to approve the approval of claims. ACCOUNTS PAYABLE: $ 96,998.94 Checks # 124694 thru # 124716 dated 12/09/25 $ 802,043.25 Checks # 124717 thru # 124773 dated 12/16/25 $ 2,446,584.87 Checks # 124774 thru # 124798 dated 12/23/25 $ 46,300.43 Checks # 124799 thru # 124825 dated 12/26/25 $ 120,535.37 Checks # 124826 thru # 124843 dated 12/31/25 $ 1,498,018.80 Disbursements via debits to checking account dated 12/1/25 thru 1/04/26 January 12, 2026 City Council Meeting Minutes 6 Council Packet Page Number 7 of 476 E2 $ 5,010,481.66 Total Accounts Payable PAYROLL $ 868,638.09 Payroll Checks and Direct Deposits dated 12/05/25 $ 961,240.16 Payroll Checks and Direct Deposits dated 12/19/25 $ 823,718.72 Payroll Checks and Direct Deposits dated 1/2/26 $ 2,653,596.97 Total Payroll $ 7,664,078.63 GRAND TOTAL Seconded by Councilmember JuenemannAyes – All The motion passed. 2.Resolution Designating Depositories for City Funds CouncilmemberLee moved to approve theResolution Designating Depositories for City Funds. 26-01-2466 RESOLUTIONDESIGNATING DEPOSITORIES FOR CITY FUNDS BE IT RESOLVED, thatthe following be and hereby are selected as depositories for deposits and investments of the City of Maplewood: Premier Bank Wells Fargo Bank US Bank 4M Fund/PMA RBC Oppenheimer TD Ameritrade BE IT FURTHER RESOLVED that the deposits in any of the above depositories shall not exceed the amount of F.D.I.C. insurance covering such deposit unless collateral or a bond is furnished as additional security, and BE IT FURTHER RESOLVED that any funds in the above depositories may be withdrawn and electronically transferred to any other depository of the city by the request of the finance director or his/her designee. BE IT FURTHER RESOLVED that these depository designations are effective until December 31, 2026. January 12, 2026 City Council Meeting Minutes 7 Council Packet Page Number 8 of 476 E2 Seconded by CouncilmemberJuenemannAyes – All The motion passed. 3.Resolution Designating the Official Newspaper for 2026 CouncilmemberLee moved to approve the resolution designating the Twin Cities Pioneer Press as the city of Maplewood’s official legal newspaper for 2026. 26-01-2467 RESOLUTION DESIGNATION OF OFFICIAL LEGAL NEWSPAPER FOR 2026 WHEREAS,the City Council is required by Minn. Stat. 412.831 to annually designate a legal newspaper to serve as its official newspaper for published ordinances, legal notices and other items requiring publication by law; and WHEREAS, the Twin Cities Pioneer Press is a legal newspaper of general circulation in Maplewood; and WHEREAS, the Twin Cities Pioneer Press meets all criteria set forth by Minn. Stat. 331A to be a qualified newspaper. NOW, THEREFORE, BE ITRESOLVED, that the City Council of Maplewood, Minnesota, hereby designates the Twin Cities Pioneer Press as its official legal newspaper for 2026. Seconded by CouncilmemberJuenemannAyes – All The motion passed. 4.Inver Hills Community College Clinical Agreement CouncilmemberLee moved to approve theInver Hills Community College clinical agreement. Seconded by CouncilmemberJuenemann Ayes – All The motion passed. 5.Purchase of Bobcat Skid Steer (Unit 727) CouncilmemberLee moved to approve the purchase of a Bobcat Skid Steer and direct the Mayor and City Manager to enter into a contract with Tri-State Bobcat under Sourcewell contract #020223 in the amount of $59,846.52. Seconded by CouncilmemberJuenemann Ayes – All The motion passed. 6.Purchase of Emergency By-Pass Pump (Unit 620) January 12, 2026 City Council Meeting Minutes 8 Council Packet Page Number 9 of 476 E2 CouncilmemberLeemoved to approve the purchase of an emergency by-pass pump and direct the Mayor and City Manager to enter into a contract with Gary Carlson Equipment under Sourcewell contract in the amount of $99,792.22. Seconded by Councilmember JuenemannAyes – All The motion passed. 7.Purchase of Park Maintenance Mower (unit 658) CouncilmemberLee moved to approve purchase of a park maintenance mower and direct the Mayor and City Manager to enter into a contract with MTI/Toro for the purchase under MN contract # 243333 in the amount of $131,350.68. Seconded by CouncilmemberJuenemann Ayes – All The motion passed. 8.Purchase of Three Park Maintenance Machines (Units 653, 654, 545) Councilmember Lee moved to approvethepurchase of three park maintenance machines and direct the Mayor and City Manager to enter into a contract with Midwest Machinery Co. for the purchase under Sourcewell contract #112624-DAC in the amount of $198,612.10. Seconded by CouncilmemberJuenemannAyes – All The motion passed. 9.Ordinance Amending Section 12-602 to Exempt Clergy Member Housing from the Licensing of RentalDwellings CouncilmemberLee moved to approve an ordinance amending Section 12-602 to exempt housing provided to clergy members from the rental licensing requirements. ORDINANCENo. 1058 An Ordinance Amending Section 12-602 of the Maplewood City Code Pertaining to the Licensing of Rental Dwellings The City Council of the City of Maplewood, Minnesota Ordains as follows: Section 1. Section 12-602(b) of the Maplewood City Code is hereby amended to add subdivision (5) as follows: (b)Exceptions. (1)These rental licensing requirements do not apply to a residential dwelling that is occupied by the owner or the owner's qualifying relatives. January 12, 2026 City Council Meeting Minutes 9 Council Packet Page Number 10 of 476 E2 (2)These rental licensing requirements do not apply to a residential dwelling when the dwelling is rented for a period of less than 120 consecutive days and the owner occupies the property' during the remainder of the year. (3)These rental licensing requirements do not apply to Minnesota Department of Health-licensed rest homes, convalescent care facilities, group homes, nursing homes, hotels, motels, or cooperatives. (4)These rental licensing requirements do not apply to a facility for which a reasonable accommodation has been granted by the city under the Federal Fair Housing Amendments Act of 1988. (5)These rental licensing requirements do not apply to a residential dwelling located on property exempt under Minnesota Statutes, section 272.02 and used only by the tax-exempt owner as housing for its clergy members. Section 2. Effective Date. This Ordinance shall be effective following its adoption and publication. Seconded by CouncilmemberJuenemannAyes – All The motion passed. 10.Madden Galanter Hansen, LLP Consulting Services Agreement for 2026 Councilmember Lee moved to approve the Consulting Services Agreement between the City of Maplewood and Madden Galanter Hansen, LLP and authorize the Mayor and City Manager to execute the contract on behalf of the City. Seconded by Councilmember JuenemannAyes – All The motion passed. H.PUBLIC HEARINGS – If you are here for a Public Hearingplease familiarize yourself with the Rules of Civility printed on the back of the agenda. Sign in with the City Clerk before addressing the council. At the podium please state your name and address clearly for the record. All comments/questions shall be posed to the Mayor and Council. The Mayor will then direct staff, as appropriate, to answer questions or respond to comments. None I.UNFINISHED BUSINESS None J.NEW BUSINESS 1.Off-Sale Intoxicating Liquor License for Booze Bros LLC, dba Express Liquors, 1900 County Road D East, Suite101 City Clerk Sindt gave the staff report. Gurkirat Singh, co-owner of Booze Bros LLC, addressed the council and provided comments. January 12, 2026 City Council Meeting Minutes 10 Council Packet Page Number 11 of 476 E2 Councilmember Lee moved to approve the Off-Sale Intoxicating Liquor license for Booze Bros LLC, dba Express Liquors, located at 1900 County Road D East, Suite 101. Seconded by Councilmember CaveAyes – All The motion passed. 2.IntenttoClose Meeting (Minnesota Statute Section 13D.05, Subd 3(d)) to Discuss Emergency Response Procedures City Manager Sable provided logistics for moving into closed session. Councilmember Juenemann moved to close the regular meeting and go into closed session to receive security briefings, security systems, and emergency response procedures pursuant to Minnesota State Statute 13D.05, subdivision 3(d). Seconded by Councilmember CaveAyes – All The motion passed. Mayor Abrams closed the meeting at 7:40 p.m. Present at the closed session: Mayor Abrams, Councilmember Cave, Councilmember Juenemann, Councilmember Lee, Councilmember Villavicencio, City Manager Sable, Assistant City Manager/HR Director Darrow, Public Safety Director Bierdeman, Deputy Police Chief Busack, City Attorney Batty. Mayor Abrams called the meeting back to order at 8:22 p.m. K.AWARD OF BIDS None L.ADJOURNMENT Mayor Abramsadjourned the meeting at8:23 p.m. January 12, 2026 City Council Meeting Minutes 11 Council Packet Page Number 12 of 476 F1a CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: City Council REPORT FROM: Michael Sable, City Manage r PRESENTER: Michael Sable, City Manager AGENDA ITEM: Council Calendar Update Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution Ordinance Contract/AgreementProclamation Summary: This item is informational and intended to provide the Council a forecast of upcoming agenda items and the Work Session schedule. These are not official announcements of the meetings, but a look at the upcoming meetings for the City Council to plan their calendars. Recommended Action: No motion needed. This is an informational item. Upcoming Agenda Items and Work Sessions Schedule: February 9: Work Session: Charitable Gambling Policy Review February 23: Work Session: Climate Mitigation Plan; Street Improvement Assessment Rates March 23: Work Session: City Manager Performance Review (CLOSED) Council Comments: Comments regarding Workshops, Council Meetings or other topics of concern or interest. 1.Charitable Gambling Policy (February 2026) 2.Bronze Line Locally Preferred Alternative (March 2026) Maplewood Living Schedule: Author Due DateEdition Juenemann January 16 February 2026 Cave February 17 March 2026 Lee March 16 April 2026 Villavicencio April 17 May 2026 All assignments are subject to change based on election filings. Council Packet Page Number 13 of 476 For the permanent record: Meeting Date: 1/26/2026 Agenda Item F1a., Additional Attachment For the permanent record: Meeting Date: 1/26/2026 Agenda Item F1a., Additional Attachment THIS PAGE IS INTENTIONALLY LEFT BLANK Council Packet Page Number 14 of 476 G1 Council Packet Page Number 15 of 476 G1, Attachments Council Packet Page Number 16 of 476 G1, Attachments Council Packet Page Number 17 of 476 G1, Attachments Council Packet Page Number 18 of 476 G1, Attachments Council Packet Page Number 19 of 476 G1, Attachments Council Packet Page Number 20 of 476 G1, Attachments Council Packet Page Number 21 of 476 G1, Attachments Council Packet Page Number 22 of 476 G1, Attachments Council Packet Page Number 23 of 476 G1, Attachments Council Packet Page Number 24 of 476 G1, Attachments Council Packet Page Number 25 of 476 G1, Attachments Council Packet Page Number 26 of 476 G1, Attachments Council Packet Page Number 27 of 476 G2 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manager REPORT FROM: Steven Love, Public Works Director Jon Jarosch, Assistant City Engineer Tyler Strong, Civil Engineer I PRESENTER: Steven Love, Public Works Director AGENDA ITEM: Resolution for Reduction of Retainage on Existing Construction Contract, 2025 Maplewood Street improvements, City Project 24-12 Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Summary: Park Construction Company has requested the City reduce the amount of retainage held on the 2025 Maplewood Street Improvements construction contract from 5% to 2%. The majority of the contract work is complete, with only minor items to address in the spring of 2026. City Council will consider approving the attached resolution for reduction of retainage on the existing construction contract. Recommended Action: Motion to approve the attached resolution for reduction of retainage on existing construction contract for the 2025 Maplewood Street Improvements, City Project 24-12. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $237,850.71 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: This proposed reduction of retainage will reduce held retainage from $396,417.85 to $158,567.14. No adjustments to the approved budget are necessary at this time. Strategic Plan Relevance: SafetyMaintain and enhance infrastructure and environmental systems Sustainability Development The City’s Capital Improvement Plan (CIP) identified the streets included in this project to be reconstructed during the summer of 2025. The project included the reconstruction of the Prosperity- Hazelwood Area and the South Leg Area. The project location map is attached for reference. Council Packet Page Number 28 of 476 G2 Background: On May 27, 2025, the City Council awarded a construction contract to Park Construction Company for the 2025 Maplewood Street improvements, City Project 24-12. The awarded contract amount was $8,264,001.67. The project included removal and replacement of deteriorated street pavement, installation of concrete curb and gutter, a new trail along the west side of Prosperity Road, improvements to utility systems, and restoration of driveways and boulevard turf grass disturbed by the project. Park Construction Company completed the vast majority of the contract work during the 2025 construction season. Only minor restoration and punch-list items are left to complete. These items will be completed in the spring of 2026. A reduction in contract retainage from 5% to 2% is justified at this time based upon the amount of completed work. Attachments: 1.24-12 Project Location Map 2.Application for Payment 3.Resolution for Reduction of Retainage on Existing Construction Contract Council Packet Page Number 29 of 476 G2, Attachment 1 Council Packet Page Number 30 of 476 G2, Attachment 2 Council Packet Page Number 31 of 476 G2, Attachment 2 Council Packet Page Number 32 of 476 G2, Attachment 2 Council Packet Page Number 33 of 476 G2, Attachment 2 Council Packet Page Number 34 of 476 G2, Attachment 2 Council Packet Page Number 35 of 476 G2, Attachment 3 RESOLUTION REDUCTION OF RETAINAGE ON EXISTING CONSTRUCTION CONTRACT 2025 MAPLEWOOD STREET IMPROVEMENTS, CITY PROJECT 24-12 WHEREAS, the City Council of Maplewood, Minnesota has ordered Improvement Project 24-12, 2025 Maplewood Street Improvements, and has let a construction contract pursuant to Minnesota Statutes, Chapter 429; and WHEREAS, the Contractor, Park Construction Company, has completed the majority of the project construction contract work, with only minor punch-list items remaining. NOW, THEREFORE, BE IT RESOLVED, by the City Council of Maplewood, Minnesota: 1.A reduction in retainage on the construction contract is hereby authorized, at the discretion of the City Engineer, from 5.0% to 2.0% Approved this 26th day of January 2026. Council Packet Page Number 36 of 476 G3 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manager REPORT FROM:Michael Mondor, Fire/EMS Chief PRESENTER:Michael Mondor, Fire/EMS Chief AGENDA ITEM:Purchase Fire Department Response Vehicle Action Requested:MotionDiscussionPublic Hearing Form of Action:ResolutionOrdinanceContract/AgreementProclamation Summary: The fire department needs to replace a fire department response vehicle (SUV). The purchase is in the Capital Improvement Plan (CIP) for 2026. City Council approval is required to purchase this new vehicle. Recommended Action: Motion to approve purchase of department vehicle. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $68,575 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: SafetyEnsure public safety and effective emergency response Sustainability Development This purchase will ensure that the department’s fleet is reliable and that the department has an adequate number of response vehicles. Background: The fire department maintains a fleet of vehicles to support emergency operations, administrative functions and specialized response needs. These vehicles serve a critical role in ensuring that command and support staff can respond rapidly to significant incidents, oversee operations and maintain command and control of incidents. Council Packet Page Number 37 of 476 G3 The purchase of this vehicle will replace a 2017 SUV that has over 125,000 miles. The 2026 Chevy Tahoe will be a staff vehicle that serves as incident command operations and emergency response. Quotations were solicited from local dealerships, with Cornerstone Chevrolet submitting the lowest quote. This purchase will ensure the department’s fleet is reliable and that an adequate number of response vehicles are available to respond to emergency calls. Attachments: 1.Cornerstone Chevrolet Quotation 2.Merit Chevrolet Quotation Council Packet Page Number 38 of 476 G3, Attachment 1 Council Packet Page Number 39 of 476 G3, Attachment 2 Council Packet Page Number 40 of 476 G4 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manager REPORT FROM: Brian Bierdeman, Public Safety Director Michael Mondor, Fire/EMS Chief PRESENTER:Michael Mondor, Fire/EMS Chief AGENDA ITEM: Agreement for Employee Mental Health Services Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Summary: Wellness That Fits provides employee mental health services for public safety agencies. The Public Safety Department’s previous mental health providers are no longer under contract. Staff recently conducted a Request for Quotations (RFQ) and recommended Wellness That Fits as a provider of employee mental health services. City Council approval is required for the Maplewood Public Safety Department to enter into a professional services agreement with Wellness That Fits. Recommended Action: Motion to approve the services agreement with Wellness That Fits. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $40,000 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Safety Sustainability Support and develop staff and human resources Development These services provide enhanced support for the wellbeing of Maplewood Public Safety staff. Background: The Public Safety Department has provided access to enhanced mental health-related services for staff since 2016. The department previously provided access to two mental health providers. The previous mental health providers are no longer under contract with the city. Staff conducted a Request for Quotations (RFQ) process in quarter 4, 2025. The RFQ resulted in 5 responses, representatives from police and fire interviewed responding firms and recommended Wellness That Fits as the best value for the city. Public Safety personnel face repeated exposure to high-stress and potentially traumatic events as part of their daily work. Research and local experience show that this ongoing exposure can contribute to elevated stress-related conditions such as post-traumatic stress, anxiety, depression, Council Packet Page Number 41 of 476 G4 substance use concerns and burnout when compared to the general population. The League of Minnesota Cities (LMC) strongly recommends that cities provide preventative mental health programs for their employees. While traditional health insurance and Employee Assistance Programs (EAP) are valuable, they are often not effective in meeting the unique needs of public safety professionals. To address this gap, the Public Safety Department has established a mental health and wellness program that provides opportunities for staff to receive services from external mental health professionals who have experience working specifically with public safety professionals. Wellness That Fits is a Mental Health Professional Firm that is based in the Twin Cities metro area. Offering a team of mental health professionals, Wellness That Fits will partner with Maplewood Public Safety to provide individual, organizational and training related to mental health for staff and the organization. The services include annual wellness check-ins, therapy sessions, traumatic event and critical incident response, training, embedded clinical services, family support and leadership consultation. Attachments: 1.Agreement Council Packet Page Number 42 of 476 G4, Attachment 1 ServicesAgreement This Services Agreement (the “Agreement”) is made and entered into as of the date the second party executes this Agreement (the “Signature Date”) between Wellness That Fits, LLC, a Minnesota limited liability company under the laws of Minnesota (the “Company”) and the City of Maplewood, a municipal corporation under the laws of Minnesota (the “Client”). Agreement 1.Term of Agreement:This Agreementwillbecomeeffectiveupon the Signature Date and will extend through December 31 of that year. This Agreement will then automatically renew for st successive one-year periods beginning January 1of the following year unless either party notifies the other party in writing at least 30 days prior to the expiration of the then-current term that such party does not wish the Agreement to be renewed. 2.Services:The Company agreesto provide the following services(collectively, the “Services”): Annual WellnessCheck-ins TherapySessions Traumatic Event and Critical Incident Response Training Embedded Clinician FamilySupport Peer Support Team Development andClinicalLeadership LeadershipConsultation Specifications of these Servicesare outlined in Exhibit 1. 3.Compensation: TheClientagreestopaythe Company for the performance of the Servicesat the rates outlined in Exhibit 1. 4.Qualifications.The Company will ensure thateach individual providing Servicestothe Client: 4.1 Is qualified in terms of education and training to provide the Services, in accordance with all federal, state, and local statutes and regulations; 4.2 Maintains in good standing and without limitations, exceptions, or conditions, at all times while performing the Services, any license, registration, or certification necessary to provide the Services; 4.3 Haspassed a background check,ifrequired by law; 4.4 Hasdemonstratedcompetencytoperform the Services; and 4.5 Is physically andmentallycapable of performing the Services; Council Packet Page Number 43 of 476 G4, Attachment 1 5.Expenses: The Companyshall furnish, at the Company’s sole expense, the equipment, supplies, and other materials required or used by the Company to perform the Services. It is expressly understood that the Company is an “independent contractor” and its employees are not employees of the Client. The Company shall have control over the manner in which the Services are performed under this Agreement. 6.Insur anceRequirements. The Company, atitsexpense,shall procure and maintainin force for the duration of this Agreement the following minimum insurance coverages: 6.1. General Liability. The Company shall maintain Commercial GeneralLiabilityinsurance in a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The policy shall cover liability arising from premises, operations, products-completed operations, personal injury, advertising injury, and contractually assumed liability. The Client, including its elected and appointed officials, employees, and agents, shall be endorsed as additional insured. 6.2. Automobile Liability. If the Company operates a motor vehicle in performing the Services under this Agreement, the Company shall maintain Business Automobile Liability Insurance, including owned, hired, and non-owned automobiles, with a minimum combined single liability limit of $1,000,000 per occurrence. 6.3. Professional (Errors and Omissions) Liability Insurance. The Company shall maintain professional liability insuranceforall claims the Company may becomelegally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Company’s professional Services required under this Agreement. The Company is required to carry the following minimum limits: $1,000,000 per occurrence; $2,000,000 annual aggregate. The retroactive or prior acts date of such coverage shall not be after the Signature Date of this Agreement and the Company shall maintain such insurance for a period of at least two (2) years, following completion of the Services. If such insurance is discontinued, extended reporting period coverage must be obtained by the Company to fulfill this requirement. 6.4. Workers’ Compensation. The Company shall provide Workers’ Compensation insurance for all its employees in accordance with the statutory requirements of the State of Minnesota. 7.Invoices: The Company will submit invoicesto the Client for Services performed once per month. Company will include on each invoice a description of the Services performed, time spent performing the Services, and the date the Services were performed. 8.Payment: Client shall pay Company invoiced amounts within 35 calendar days after receipt. In the instance of a good faith dispute, the parties agree to work together to resolve the dispute in a prompt manner. Past due invoices shallbearinterestat an annual rate of ten percent (10%). Upon termination of this Agreement for any reason, the Client shall pay the Company for any Services performed prior to termination. 9.Termination: ThisAgreement may be terminated under the following circumstances: Council Packet Page Number 44 of 476 G4, Attachment 1 9.1 By mutual consent of the Company and Client at anytime; 9.2 B y either party for any reason with 30 days written notice to the other party; or 9.3 Immediately upon breech of this Agreement by the Company or the Client 10.Ind: emnification To the fullest extent permitted by law, the Company shall defend, indemnify and hold harmless the Client, and itsemployees,officials, andagentsfrom and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of the Company’s negligence or the Company’s performance or failure to perform its obligations under this Agreement. The Company’s indemnification obligation shall apply to the Company’s subcontractor(s), or anyone directly or indirectly employed or hired by the Company, or anyone for whose acts the Company may be liable. The Company agrees this indemnity obligation shall survive the completion or termination of this Agreement. 11.Confidential Information: The Company acknowledges that it will be necessary for the Client to disclose certain private, not public, nonpublic, confidential or protected nonpublic data to the Company (“Data”) in order for the Company to provide Services to the Client and the Client’s employees and volunteers under this Agreement. The Company acknowledges that disclosure to a third party or misuse of this Data would irreparably harmthe Client. Accordingly, the Company will not disclose or use,either during or after the term of this Agreement, any Data of the Client without the Client’s prior written permission except to the extent necessary to perform Services on the Client's behalf. The Company further agrees to abide by the applicable provisions of the Minnesota Government Data Practices Act, Minnesota Statues, Chapter 13 (the “MGDPA”), HIPAA requirements and all other applicable state or federal rules, regulations or orders pertaining to privacy or confidentiality. TheCompany understands that all of thedata created, collected, received, stored, used, maintained or disseminated to or by the Company in performing the Services is subject to the requirements of the MGDPA, and the Company must comply with those requirements as if it were a government entity. This does not create a duty on the part of the Company to provide the public with access to public data if the public data is available from the City, except as required by the terms of this Agreement. 12.ApplicableLaw: This Agreement will be governed by Minnesota law, without giving effect to conflict of laws principles. 13.Assignment: The Company may not assign this Agreement without the prior written permission of the Client, which consent shall be at the Client’s sole discretion. 14.Notices:Any notice or correspondence to be given under this Agreement shall be deemed to be given if delivered personally or sent by United States certified or registered mail, postage prepaid, return receipt requested: Council Packet Page Number 45 of 476 G4, Attachment 1 a)as to the Company:WellnessThat Fits, LLC th 731 7 St. East Suite 300 St. Paul, MN 55106 Attention: ____________ b)as to City:City of Maplewood 1830 County Road B E Maplewood, MN 55109 Attention: City Manager or at such other address as either party may from time to time notify the other in writing in accordance with this section. 15.Severability:In the eventthat any provision of this Agreement shall be held invalid, illegal or unenforceable by any court of competent jurisdiction, such holding shall pertain only to such section and shall not invalidate or render unenforceable any other section or provision of this Agreement. 16.Non-waiver:Each right, power or remedy conferred upon the parties by this Agreement is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, or available at law or in equity. Each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the parties and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. If a party waives in writing any default or nonperformance by the other party, such waiver shall be deemed to apply only to such event and shall not waive any other prior or subsequent default. 17.Cou nterparts: This Agreement may be executed simultaneously in any number of counterparts, each of which shall be an original and shall constitute one and the same Agreement. * * * * * * ** Council Packet Page Number 46 of 476 G4, Attachment 1 Whereupon, each party has caused this Agreement to be executed on its behalf. Company/Owner: PrintedName Signature Date Council Packet Page Number 47 of 476 G4, Attachment 1 Client: By: Marylee Abrams, Mayor Date: By: Michael Sable, City Manager Date: Council Packet Page Number 48 of 476 G4, Attachment 1 EXHIBIT 1 ices and Fees Serv 1.AnnualWellness Check-ins ness Check-ins are an opportunity to meet with a mental health professional and discuss the Well recipient’s overall wellness. WellnessCheck-ins are up to 50 minutes in length and are not therapeutic in nature. Additional resources and recommendations may be provided by the mental health professional to the recipient, and they may choose to engage in further services at their leisure. Voluntary wellness check-ins are available for all employees of the Client (approximately 139)and may be scheduled at any point throughout the calendar year. In the event thatwellness check-ins become mandatoryin nature, wellness check-ins will take place across three months of the year agreed upon by the Client and the Company. Cancellations and Missed Appointments: In the event of a no-call, no show, the Client will be billed at the full rate. In the event of a cancellation within 24 hours, the Client will be billed at the full rate. In the event of a late cancellation within 24 hours due to a work- related incident, the Client will not be billed. In the event of a cancellation outside of 24 hours, the Client will not be billed. Fee: $150 per session 2.Additional Therapy Sessions: After an individual has completed their annual wellness check-in, they will have the opportunity to utilize up to 15 additional sessions per person, annually. (Fee: $160 per session) 3.Traumatic Event and Critical IncidentResponse In the event of a traumatic event or critical incident, the Company can provide the following services: Outreach: When provided a list of those involved in a critical incident (or traumatic event), a therapist can reach out to each person, check-in, and offer an appointment. (Fee: $150/hr; billed in 15 min. increments) Crisis Management Brief: If a large-scale incident occurs, CMBs may be organized to communicate the facts surrounding an incident, outline the next steps, and ensure that all personnel are aware of the internal and external resources available to them. (Fee: $150/hr) Debriefing: A trained therapist can work with the peer support team to provide a critical incident stress debriefing to those impacted by the incident. (Fee: $150/hr) 4.Training Mental health providers may deliver customized training content as well as internationally recognizedtraining curricula, as appropriate. Eachtraining shall be facilitated by a minimumof two (2) qualified trainers. (Fee: $200/hr per trainer) Council Packet Page Number 49 of 476 G4, Attachment 1 5.EmbeddedClinician On-si te hours are flexible and responsive to the Client’s needs, with increased visibility during the initial contract phase. On-site time is dedicated to relationship-building and supportive interactions rather than formal therapy sessions. A quarterly on-site plan will be developed based on the Client’s evolving needs. (Fee: $150/hr) 6.Family Support Family support servicesshall be provided asrequested by the Client andasneedsarise. (Fee: $150/hr) 7.Peer SupportTeam Development and ClinicalLeadership If the Client electsto pursue the development of a peer support team, the Company may offer guidance in the formation and implementation of the team and provide ongoing clinical leadership and consultation thereafter. (Fee: $150/hr; billed in 15 min. increments) 8.LeadershipConsultation The Company will be available for consultation, coordination meetings, and mental wellness– related support asneeded, including real-timeconsultationas needed. (Fee: $150/hr; billed in 15 min. increments) *A 10% administrative fee will be appliedto all services provided Council Packet Page Number 50 of 476 I1 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manager REPORT FROM: Mike Darrow, Assistant City Manager / Human Resource Director PRESENTER: Mike Darrow, Assistant City Manager / Human Resource Director Danette Parr, Community Development Director AGENDA ITEM: 2026 Boards and Commissions Updates Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Summary: Staff will provide updates on 2026 Boards and Commissions. Recommended Action: No formal recommendation is needed Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: SafetyFocus Area: Sustainability Focus Area: Development Focus Area: Invest in people and placemaking Staff will highlight some of the opportunities for board and commission training and development in 2026. Background: In 2025, staff met with each board and commission to better understand the tools needed to support their continued success. Planned for 2026 are board and commission training sessions, a recognition dinner, and regular check-ins throughout the year. Attachments: None. Council Packet Page Number 51 of 476 THIS PAGE IS INTENTIONALLY LEFT BLANK Council Packet Page Number 52 of 476 J1 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manager REPORT FROM: Michael Martin, AICP, Assistant Community Development Director PRESENTER:Danette Parr, Community Development Director AGENDA ITEM: Ordinance Regulating the Sale of Dogs and Cats at Pet Stores and Creating an Administrative Offense for Violations a.Ordinance Amending Chapter 10, Animals b.Resolution Authorizing Publication of the Ordinance by Title and Summary (4 votes) Action Requested: Motion Discussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Summary: At the December 8, 2025, city council meeting, the council reviewed a letter sent to the Mayor requesting the city adopt a humane pet store ordinance. The city council directed staff to review this request and provide an update. This report provides background information and outlines a proposed ordinance for the council's consideration, should they wish to proceed. Recommended Action: a.Motion to approve an ordinance amending Chapter 10to regulate the sale of dogs and cats at pet stores and creating an administrative offense for violations. b.Motion to approve the resolution authorizing publication of the ordinance by title and summary (4 votes). Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: SafetyStrenghten regulations and code compliance Sustainability Development Focus Area: Adoption of this ordinance sets clear standards for animal care and sourcing, reducing the risk of neglect or unethical practices. Council Packet Page Number 53 of 476 J1 Background: Numerous cities in Minnesota have adopted humane pet store ordinances, with the most recent being Shoreview, Columbia Heights, Coon Rapids, and Maple Grove. These ordinances regulate pet stores and prohibit them from selling cats or dogs. They are created based on research showing that a significant number of puppies and kittens sold at pet stores come from large-scale, commercial breeding facilities where the animals' health and welfare are not adequately provided for. There are no federal or state regulations that address this. During the December 8, 2025, meeting, the city council indicated they would like to discuss further whether the city should update its city code to regulate pet stores. The attached ordinance amends Chapter 10, Animals. In these revisions, pet stores will have the following regulations: Cannot sell dogs or cats Can work with animal rescue organizations, shelters, or containment facilities to host adoption events for dogs and cats. o Must have a certificate of source posted near the dog's or cat's kennel or enclosure. o Cannot keep dogs overnight during adoption events. The primary difference between keeping dogs and cats overnight is that cats can be comfortably accommodated in smaller enclosures with access to food, water, and a litter box, whereas dogs require larger spaces and necessitate regular walks and bathroom breaks. It should be noted that, based on available information, there is no indication that Maplewood currently has any pet stores that sell dogs or cats. However, there are pet stores that actively work with rescue organizations to facilitate adoptions. The proposed ordinance would prohibit a store from starting to sell dogs or cats and provide a pathway for enforcement in the situation that a store did start to sell the animals. Attachments: 1.An Ordinance Regulating the Sale of Dogs and Cats at Pet Stores and Creating an Administrative Offense for Violations 2.Resolution Authorizing Publication of Ordinance by Title and Summary 3.Resident Letter Requesting Adoption or Ordinance Council Packet Page Number 54 of 476 J1, Attachment Ordinance No. ____ An Ordinance Regulating the Sale of Dogs and Cats at Pet Stores and Creating an Administrative Offense for Violations The City Council of the City of Maplewood, Minnesota ordains as follows: Section 1. The Maplewood City Code Chapter 10 – Animals is hereby amended to add Article XII.-Sale of Dogs and Cats at Pet Stores as follows: Sec. 10-525. – Purpose. The City Council finds that a significant number of puppies and kittens sold at pet stores come from large-scale, commercial breeding facilities where the health and welfare of the animals are not adequately provided for; and The City Council finds that the documented abuses endemic to mass breeding facilities include over-breeding; inbreeding; minimal to non-existent veterinary care; lack of adequate and nutritious food, water and shelter; lack of socialization; lack of adequate space; lack of adequate exercise; no or limited screening of genetic diseases; inadequate transportation and shipping protocols of puppies and kittens; and indiscriminate disposal of breeding dogs and cats who have reached the end of their profitable breeding cycle In accordance with the power granted to it by Minn. Stats. § 412.221, Subd. 21 and Minn. Stats. § 412.221, Subd. 32 to regulate the keeping of animals, and to help prevent inhumane breeding conditions, promote community awareness of animal welfare, and foster a more humane environment in the City, the City Council finds that it is in the best interest of the City of Maplewood to adopt the regulations set forth below regarding the sale of dogs and cats at pet stores. Sec. 10-526. – Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Animal Control Authority means any government entity which is responsible for animal control operations in its jurisdiction. Animal Rescue Organization means any not-for-profit organization which has tax-exempt status under Section 501(c)(3) of the United States Internal Revenue Code, whose mission and practice is, in whole or in significant part, the rescue of animals and the placement of those animals in permanent homes, and which does not breed animals. Council Packet Page Number 55 of 476 J1, Attachment Animal Shelter means any not-for profit organization which has tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, which (1) accepts animals into a physical facility; (2) is devoted to the rescue, care, and adoption of stray, abandoned, unwanted or surrendered animals; (3)places animals in permanent homes or with animal rescue organizations; and (4) does not breed animals. Cats means a mammal that is wholly or in part of the species Felis domesticus. Certificate of Source means a document from an animal control authority, animal rescue organization, or animal shelter which shall provide a brief description of the dog or cat, and shall list the name, address, and telephone number of the source (animal control authority, animal rescue organization, or animal shelter) of the dog or cat. Dogs means a mammal that is wholly or in part of the species Canis familiaris. Pet Store means any retail establishment, or operator thereof, which displays, sells, delivers, offers for sale, barters, auctions, gives away, or otherwise transfers companion animals in the City of Maplewood. This definition does not apply to animal control authorities, animal shelters, or animal rescue organizations. Pet Store Operator means a person or business entity who owns or operates a pet store. Sec. 10-527. – Sale of Dogs and Cats at Pet Stores. a)No pet store shall sell, deliver, offer for sale, barter, auction, give away, or otherwise transfer or dispose of cats or dogs. b)Nothing in this section shall prohibit pet stores from collaborating with animal shelters, animal rescue organizations, and animal control authorities to offer space for such entities to showcase adoptable dogs and cats inside pet stores. Such animals shall not be younger than 8 weeks old. Dogs that are showcased for adoption shall not be kept overnight at a pet store. c)A pet store shall post and maintain a Certificate of Source in a conspicuous place on or within three feet of each dog’s or cat’s kennel, cage, or enclosure. i.A Certificate of Source shall be provided to the adopter of any dog or cat. ii.Certificate of Source records for each dog or cat shall be maintained by a pet store for at least one year from the last date that a dog or cat appeared in the store. iii.Pet stores shall make Certificates of Source immediately available for review upon the request of a peace officer or animal control authority, or a humane agent pursuant to Minn. Stats. § 343.06 acting on behalf of the City. iv.Falsification of a Certificate of Source shall be deemed a violation of this section. Council Packet Page Number 56 of 476 J1, Attachment Sec. 10-528. – Violations. A violation of Section 10-527 shall constitute an Administrative Penal Offense under Sec.1-17 of City Code and subject the pet store operator to the procedures and penalties contained therein. Section 2. This ordinance shall be effective immediately upon passage and publication. Adopted by the City of Maplewood this ___ day of _________ 2026. Council Packet Page Number 57 of 476 J1, Attachment CITY OF MAPLEWOOD RESOLUTION NO. ______ RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE NO.________ BY TITLE AND SUMMARY WHEREAS, the City Council of the City of Maplewood has adopted Ordinance No. ____, an ordinance amending Chapter 10, Animals to regulate the sale of dogs and cats at pet stores and creating an administrative offense for violations. WHEREAS, Minnesota Statutes, § 412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the ordinance is multiple pages in length; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood that the City Clerk shall cause the following summary of Ordinance No. _______ to be published in the official newspaper in lieu of the entire ordinance: Public Notice On January 26, 2026, the city council of the city of Maplewood adopted Ordinance No. ______, an ordinance amending Chapter 10, Animals to regulate the sale of dogs and cats at pet stores and creating an administrative offense for violations. This Ordinance adds definitions related to animal rescue organizations, animal shelters, and pet stores. It also adds pet store regulations, which prohibit pet stores from selling, transferring, or disposing of dogs and cats. However, pet stores may work with animal rescue organizations, shelters, or containment facilities to host an adoption event This public notice is intended only to summarize the ordinance. The full text of the ordinance is available for inspection at Maplewood city hall during regular business hours and has been posted to the city’s website. The ordinance shall be effective upon adoption and publication. BE IT FURTHER RESOLVED by the City Council of the City of Maplewood that the City Clerk keep a copy of the ordinance in her office at city hall for public inspection. Marylee Abrams, Mayor ATTEST: Andrea Sindt, City Clerk Council Packet Page Number 58 of 476 J1, Attachment 3 Council Packet Page Number 59 of 476 J1, Attachment 3 Council Packet Page Number 60 of 476 J1, Attachment 3 Council Packet Page Number 61 of 476 J2 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manager REPORT FROM: Steven Love, Public Works Director Jon Jarosch, Assistant City Engineer Tyler Strong, Civil Engineer I PRESENTER: Steven Love, Public Works Director AGENDA ITEM: 2026 Maplewood Street Improvements, City Project 25-21 a.Resolution Accepting Feasibility Study, Authorizing Preparation of Plans and Specifications, and Calling for a Public Hearing b.Professional Design Services Agreement with WSB Consulting Action Requested: Motion Discussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Summary: The Engineering Department has prepared a feasibility report for the proposed 2026 Street Improvement Project. The report provides information on existing site conditions, proposed improvements, resident input, special assessments, project costs, project financing, schedule, and recommendations. City Council will consider accepting the feasibility report, authorizing the preparation of plans and specifications, and calling for the public hearing. Council will additionally consider approval of an agreement with WSB Consulting for professional design services to assist with drafting and engineering design services for a portion of the County Road C area of the project. Recommended Action: a.Motion to approve a Resolution Accepting the Feasibility Report, Authorizing the Preparation of Plans and Specifications, and Calling for a Public Hearing at 7:00 p.m. on February 23, 2026 for the 2026 Maplewood Street Improvements, City Project 25-21. b.Motion to approve Professional Design Services Agreement with WSB Consulting and direct the Mayor and City Manager to sign the agreement. Minor revisions as approved by the City Attorney are authorized as needed. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $11,874,800 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: The project is proposed to be financed through the Environmental Utility Fund, General Obligation (GO) Bonds, Sanitary Sewer Fund, Special Benefit Assessments, St. Paul Regional Water Services (SPRWS), Street Revitalization Fund, and Water Area Fund. Strategic Plan Relevance: SafetyMaintain and enhance infrastructure and environmental systems Council Packet Page Number 62 of 476 J2 Sustainability Advance environmental stewardship initiatives Development The streets proposed for reconstruction are an important part of the City’s infrastructure, serving as a connection to and from residential properties, businesses, and other points of interest. The City streets and utilities included in the project have deteriorated beyond the point of regular annual maintenance and need to be replaced. The project will be designed to minimize the impact on the urban environment while improving the quality of stormwater runoff reaching area waterbodies. Background: The Feasibility Report for the 2026 Maplewood Street Improvements, City Project 25-21, is complete and provides detailed information on existing site conditions, proposed improvements, anticipated schedule, costs, financing, and recommendations. The project includes the Walter-Beam Area and the County Road C Area. The total length of project streets is 4.4 miles, with an average pavement condition index rating of 37 out of 100. This project is a part of the 2026 – 2030 Maplewood Capital Improvement Plan (CIP). If the City Council approves the proposed project, construction would begin in June 2026. The Walter-Beam Area streets total 2.4 miles in length. The neighborhood is bordered by Highway 61 to the east, County Road D to the north, Kohlman Lake to the south, and the City limits to the west. The County Road C Area streets total 2.0 miles in length. The County Road C Area includes five smaller neighborhoods near County Road C. The neighborhoods are bordered by Beam Avenue to the north, Highway 61 to the west, Gervais Avenue to the south, and White Bear Avenue to the east. The existing street pavement and aging utility infrastructure on these streets present ongoing maintenance challenges for the Maplewood Street and Utility Departments. Of the infrastructure elements the City maintains, the bulk of the maintenance activities consist of patching the roadway, crack sealing, filling potholes, and maintaining the aging utility infrastructure. These streets are in need of significant improvements. This project will utilize a combination of different construction methods based on the condition of the existing infrastructure. Streets within the Walter-Beam Area are proposed to receive pavement rehabilitation improvements. Streets within the County Road C Area are proposed to receive full reconstruction improvements. The typical improvements for each construction method are described below: Pavement Rehabilitation (Walter-Beam Area): Full depth reclamation (grinding and mixing) of existing pavement and aggregate base. Removal of excess reclaim material to accommodate the new pavement section. Placement of new bituminous pavement over the reclaimed aggregate base. Replacement of soft subgrade soils beneath the roadway as needed. Spot replacement of structurally damaged concrete curb and gutter. Upgrades to existing pedestrian facilities. Sawing and sealing of control joints in the new bituminous pavement. Replacement of outdated utility surface castings and spot replacement of failing structures. Installation of sacrificial anodes on water mains as directed by St. Paul Regional Water Services (reduces corrosion and extends service life). Restoration of disturbed driveways, boulevards, and landscaping impacted by the project. Council Packet Page Number 63 of 476 J2 Full Reconstruction (County Road C Area): Removal of existing pavement and underlying aggregate base. Placement of new aggregate base and new bituminous pavement. Road subgrade soil corrections based on soil boring data. Construction of new concrete curb and gutter. Upgrades to existing pedestrian facilities. Sawing and sealing of control joints in the new bituminous pavement. Significant utility improvements to include o Addition of new storm sewer systems o Improvements to the water system as determined by St. Paul Regional Water Services o Spot replacement of select sanitary sewer mains and services. Water quality improvements, such as rain gardens and infiltration basins, where feasible. Restoration of disturbed driveways, boulevards, and landscaping impacted by the project. Additional Improvements Included with Project: Sewer lining of deteriorated sanitary sewer mains in select areas throughout the City. Fog seal of past neighborhood improvement project streets. Neighborhood Correspondence On June 23, 2025, the Maplewood City Council directed staff to prepare a feasibility study for the 2026 Maplewood Street Improvements Project. On July 18, 2025, staff mailed notification letters to residents within the project areas to inform them of the Council’s action and to advise that preliminary project activities would begin in the fall of 2025. Informational packets were mailed to affected residents on December 4, 2025. The packets provided project-related information, including frequently asked questions regarding street construction and assessments, as well as an invitation to the first neighborhood meeting. The first neighborhood informational meetings were held on December 17, 2025, for the Walter- Beam Area and on December 18, 2025, for the County Road C Area. Invitations were mailed to 381 property owners. Attendance included 20 participants at the Walter-Beam Area meeting and 22 participants at the County Road C Area meeting. Each meeting consisted of a staff presentation followed by a question-and-answer session. Topics discussed included the public improvement process, construction process, existing conditions, proposed improvements, assessment information, and an estimated project timeline. The discussion at the Walter-Beam Area meeting primarily focused on drainage concerns, pavement conditions, speeding on Walter Street, motorists not stopping at stop signs on Beam Avenue and Walter Street, along with general construction-related questions. Questions at the County Road C Area meeting primarily focused on the appearance and functionality of the proposed concrete curb and gutter, proposed street widths, drainage concerns, anticipated impacts on boulevard areas, speeding concerns, and general construction-related questions. Following the meetings, staff posted the presentation on the project website. Similar to past projects, the City used the InputID platform to gather additional resident feedback. Residents were provided instructions on accessing the tool on December 23, 2025. InputID allows users to submit comments on an interactive map and indicate support or opposition to other comments. Staff have received feedback on issues including speeding, drainage, curbing, pavement conditions, and street lighting, and will continue to monitor and address concerns throughout the design process. Council Packet Page Number 64 of 476 J2 Additional neighborhood meetings and stakeholder correspondence are planned throughout the public improvement process to continue engagement with area residents, ensure affected parties are well-informed, and provide multiple opportunities for public input. A second neighborhood meeting will be scheduled prior to the public hearing in February 2026. This meeting will provide residents with the opportunity to review the most recent project updates and time to ask any questions they have in advance of the public hearing. Assessments This project will utilize special assessments as one of its funding sources. A special assessment is a charge that is applied to a property that directly benefits from the public improvement. The City of Maplewood’s Special Assessment Policy is based on Minnesota State Statutes, Chapter 429, which authorizes cities to use special assessments to help fund a wide range of public infrastructure improvements. Per state statute, the special assessment for any property cannot exceed the benefit that the improvement provides to that property. To ensure compliance, the City has hired an independent appraisal firm to evaluate the benefits to properties within the project areas. The appraisal report will be used to establish the final special assessment amounts for all properties. For the purposes of this report, the assessment rates and direction established in the City’s Special Assessment Policy were applied. A total of 374 residential and commercial parcels within the project area are considered assessable. Exhibits 7 & 8 in the Feasibility Report provide details regarding the preliminary assessments. The preliminary assessment rates are listed below. Adjustments to the financing plan may be necessary once the special benefits appraisal has been completed and reviewed. Residential o Full Reconstruction Rate = $6,600/Unit o Pavement Rehabilitation Rate = $3,450/Unit Commercial/Multi-Family o Full Reconstruction Rate = $132.00/Front-Foot o Pavement Rehabilitation = $69.00/Front-Foot The assessment hearing is proposed to be held in September 2026. Estimated Project Cost The total estimated project cost is outlined below: Estimated Project Cost Summary Proposed Improvements Total Amount % of Total Street Improvements$7,730,450 65% Drainage Improvements $2,423,200 20% Sanitary Sewer Improvements $668,250 6% Water System Improvements $1,052,900 9% Total Estimated Project Cost: $11,874,800 100% The estimated costs include 10% contingencies and 12% overhead, which includes geotechnical, consultant design services, legal, and fiscal expenses. Council Packet Page Number 65 of 476 J2 Preliminary Project Funding Plan The improvements are proposed to be financed through the Environmental Utility Fund, General Obligation (GO) Bonds, Sanitary Sewer Fund, Special Benefit Assessments, St. Paul Regional Water Services, Street Revitalization Fund, and Water Area Fund. Estimated Project Cost Recovery Funding Source Total Amount % of Total General Obligation (G.O.) Improvement Bonds $4,614,585 39% Street Revitalization Fund $1,169,250 10% Environmental Utility Fund$2,423,20020% Sanitary Sewer Fund $668,300 6% Water Area Fund (WAC) $162,700 1% St. Paul Regional Water Services (SPRWS) $890,200 8% Special Benefit Assessment $1,946,565 16% Total Estimated Project Funding:$11,874,800 100% The estimated project costs and the preliminary project funding plan have been reviewed by the Finance Director. Project Schedule The following is a tentative schedule for City Project 25-21. Project Schedule Project Milestone Date City Council Meeting | Order Preparation of Feasibility Study 6/23/2025 Neighborhood Meeting #1 (Walter-Beam Area) 12/17/2025 Neighborhood Meeting #1 (County Road C Area) 12/18/2025 City Council Meeting | Accept Feasibility Study, Order Public Hearing, 1/26/2026 Authorize Preparation of Plans and Specifications Neighborhood Meeting #2 (Walter-Beam & County Road C Areas) February 2026 City Council Meeting | Public Hearing and Order Improvement 2/23/2026 City Council Meeting | Approve Plans and Specifications, Authorize March/April 2026 Advertisement for Bids, Authorize Preparation of Assessment Roll Bid Opening April/May 2026 City Council Meeting | Award Contract May 2026 Neighborhood Meeting #3 (Walter-Beam Area) May 2026 Neighborhood Meeting #3 (County Road C Area) May 2026 Begin Construction June 2026 City Council Meeting | Accept Assessment Roll and Order Assessment September 2026 Hearing Neighborhood Meeting #4 (Walter-Beam & County Road C Areas) September 2026 City Council Meeting | Assessment Hearing and Adopt Assessment RollSeptember 2026 Complete Construction November 2026 Assessments Certified to Ramsey County November 2026 Professional Design Services Due to the size and scope of the project, assistance from a consulting firm is needed in order to meet the schedule shown above. Staff sought proposals from consultants listed within the City’s consultant pool to aid in designing and drafting the plans for a portion of the County Road C Area streets, including Kohlman Lane, Clarence Street, Elm Street, and Fitch Road. The attached Council Packet Page Number 66 of 476 J2 proposal from WSB Consulting, in the amount of $181,233, covers costs of designing and creating plans and specifications for this portion of the project up through the bidding phase, along with wetland delineations throughout the project area. These costs are included in the project funding plan's 12% overhead. If the agreement is approved by Council, WSB will begin preliminary design work for the project, leading up to the public hearing in February. While full design services are included in this proposal, they will not begin unless the project is ordered at the public hearing. Attachments: 1.Resolution Accepting Feasibility Study 2.Project Location Map 3.Feasibility Report 4.Agreement with WSB Consulting for Professional Design Services 5.Presentation Slides Council Packet Page Number 67 of 476 J2, Attachment 1 RESOLUTION ACCEPTING FEASIBILITY STUDY, AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS, AND CALLING FOR PUBLIC HEARING WHEREAS, pursuant to a resolution of the council adopted on June 23, 2025, a feasibility report has been prepared by the City Engineering Division with reference to the improvement project, 2026 Maplewood Street Improvements, City Project 25-21, and this report was received by the council on January 26, 2026. WHEREAS, the report provides information regarding whether the proposed project is necessary, cost-effective, and feasible. NOW, THEREFORE BE IT RESOLVED, by the City Council of Maplewood, Minnesota: 1.The City Council will consider the 2026 Maplewood Street Improvements, City Project 25-21 in accordance with the report and the assessment of abutting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total project cost of $11,874,800. 2.The City Engineer or his designee is the designated engineer for this improvement project and is hereby directed to prepare final plans and specifications for the making of said improvement. 3.The Finance Director is hereby authorized to make the financial transfers necessary for the preparation of plans and specifications. A proposed budget of $11,874,800 shall be established. The proposed financing plan is as follows: Estimated Project Cost Recovery Funding Source Total Amount% of Total General Obligation (G.O.) Improvement Bonds $4,614,585 39% Street Revitalization Fund $1,169,250 10% Environmental Utility Fund $2,423,200 20% Sanitary Sewer Fund$668,300 6% Water Area Fund (WAC) $162,700 1% St. Paul Regional Water Services (SPRWS) $890,200 8% Special Benefit Assessment$1,946,565 16% Total Estimated Project Funding: $11,874,800 100% 4.A public hearing shall be held on such proposed improvement on February 23, 2026 at 7:00 PM. The City Clerk shall give mailed and published notice of such hearing and improvement as required by law. Approved this 26th day of January 2026. Council Packet Page Number 68 of 476 J2, Attachment 2 Council Packet Page Number 69 of 476 J2, Attachment 3 FEASIBILITY REPORT 2026 MAPLEWOOD STREET IMPROVEMENTS CITY PROJECT,25-21 Walter-BeamArea: Walter Street, Beam Avenue, Lydia Avenue, Edward Street, Carey Heights Drive, Duluth Street, Frank Street, Frank Court, Summit Court, CountryviewCircle, Duluth Court County Road CArea: Kohlman Avenue, Fitch Road, Clarence Street, English Street, Elm Street, Brooks Avenue, Barclay Street, Gem Street, Van Dyke Street I hereby certifythat this report was prepared byme or undermy direct supervision andthat I am a duly Licensed Professional Engineer underthe laws ofthe State of Minnesota. SIGNATURE: ____________________________ Jonathon E. Jarosch, P.E. Date: _______________________ License No.49105 Document Prepared by: Tyler M. Strong, E.I.T. i Council Packet Page Number 70 of 476 J2, Attachment 3 Table of Contents Executive Summary ................................................................................................................... iii 1.0 Introduction .......................................................................................................................... 1 2.0 Correspondence .................................................................................................................. 1 Property Owner Concerns ...................................................................................................... 2 3.0 Existing Conditions ............................................................................................................... 3 Street History ......................................................................................................................... 3 Pavement Condition ............................................................................................................... 4 Geotechnical Summary .........................................................................................................14 Existing Curb .........................................................................................................................15 Existing Utilities .....................................................................................................................16 4.0 Proposed Improvements .....................................................................................................17 Living Streets Policy ..............................................................................................................17 Proposed Street Widths ........................................................................................................18 Street Reconstruction Scope .................................................................................................18 Concrete Curb and Gutter .....................................................................................................19 Pedestrian Improvements .....................................................................................................20 Sanitary Sewer ......................................................................................................................20 Water Main ............................................................................................................................21 Storm Sewer .........................................................................................................................21 Street Lighting .......................................................................................................................21 Private Utilities ......................................................................................................................21 Erosion Control .....................................................................................................................22 Traffic Control and Access ....................................................................................................22 Additional Project Improvements ...........................................................................................22 5.0 Project Cost ........................................................................................................................22 6.0 Cost Recovery ....................................................................................................................23 Assessments .........................................................................................................................23 7.0 Schedule .............................................................................................................................24 8.0 Conclusions and Recommendations ...................................................................................24 Appendix A ...............................................................................................................................25 ii Council Packet Page Number 71 of 476 J2, Attachment 3 FEASIBILITY REPORT 2026 MAPLEWOOD STREET IMPROVEMENTS CITY PROJECT 25-21 Walter-Beam Area: Walter Street, Beam Avenue, Lydia Avenue, Edward Street, Carey Heights Drive, Duluth Street, Frank Street, Frank Court, Summit Court, Countryview Circle, Duluth Court County Road C Area: Kohlman Avenue, Fitch Road, Clarence Street, English Street, Elm Street, Brooks Avenue, Barclay Street, Gem Street, Van Dyke Street Executive Summary This report has been prepared for the 2026 Maplewood Street Improvements, City Project 25- 21. The project includes two areas; the Walter-Beam Area and the County Road C Area. A map of the project streets to be improved is shown in Exhibit 1. The streets to be improved total approximately 4.4 miles in length and have an average pavement condition index rating of 37 out of 100. The Walter-Beam Area streets total 2.4 miles in length. The neighborhood is bordered by Highway 61 to the east, County Road D to the north, Kohlman Lake to the south, and the City limits with Little Canada to the east. The County Road C Area streets total 2.0 miles in length. The County Road C Area is made up of five smaller neighborhoods near County Road C. The neighborhoods are bordered by Beam Avenue to the north, Highway 61 to the west, Gervais Avenue to the south, and White Bear Avenue to the east. This project is a part of the 2026 Î 2030 Maplewood Capital Improvement Plan (CIP). After review and approval from the City Council, construction would begin in June of 2026. A map showing what type of improvement each street is proposed to receive is shown in Exhibit 2 and is further described below. Typical Pavement Rehabilitation Improvements (Walter-Beam Area): Full depth reclamation (grinding and mixing) of existing pavement and aggregate base. Removal of excess reclaim material to accommodate the new pavement. Placement of new bituminous pavement over the reclaimed aggregate base. Replacement of poor subgrade soils beneath the roadway as needed. Spot replacement of structurally damaged concrete curb and gutter. Upgrades to existing pedestrian facilities. Sawing and sealing of control joints in the new bituminous pavement. Replacement of outdated utility surface castings and spot replacement of failing structures. Installation of sacrificial anodes on water mains as directed by St. Paul Regional Water Services (reduces corrosion and extends service life). Restoration of disturbed driveways, boulevards, and landscaping impacted by the iii Council Packet Page Number 72 of 476 J2, Attachment 3 project. Typical Full Reconstruction Improvements (County Road C Area): Removal of existing pavement and underlying aggregate base. Placement of new aggregate base and new bituminous pavement. Road subgrade soil corrections based on soil boring data. Construction of new concrete curb and gutter. Upgrades to existing pedestrian facilities. Sawing and sealing of control joints in the new bituminous pavement. Significant utility improvements to include the expansion of the storm sewer system, improvements to the water system as determined by St. Paul Regional Water Services (SPRWS), and spot replacement of select sanitary sewer mains and services. Water quality improvements, such as rain gardens and infiltration basins, where feasible. Restoration of disturbed driveways, boulevards, and landscaping impacted by the project. Additional Improvements Included with Project: Lining of deteriorating sanitary sewer mains in miscellaneous areas throughout the City. Fog seal of past neighborhood improvement project streets. The estimated costs, shown below, include a 10% construction contingency and a 12% allowance for geotechnical, legal, and fiscal expenses. Estimated Project Cost Summary Proposed Improvements Total Amount % of Total Street Improvements $7,730,450 65% Drainage Improvements $2,423,200 20% Sanitary Sewer Improvements $668,250 6% Water System Improvements $1,052,900 9% Total Estimated Project Cost: $11,874,800 100% The improvements are proposed to be financed through the Environmental Utility Fund, General Obligation (GO) Bonds, Sanitary Sewer Fund, Special Benefit Assessments, St. Paul Regional Water Services (SPRWS), Street Revitalization Fund, and Water Area Fund. Estimated Project Cost Recovery Funding Source Total Amount % of Total General Obligation (G.O.) Improvement Bonds $4,614,585 39% Street Revitalization Fund $1,169,250 10% Environmental Utility Fund $2,423,200 20% Sanitary Sewer Fund $668,300 6% Water Area Fund (WAC) $162,700 1% St. Paul Regional Water Services (SPRWS) $890,200 8% Special Benefit Assessment $1,946,565 16% Total Estimated Project Funding: $11,874,800 100% iv Council Packet Page Number 73 of 476 J2, Attachment 3 Project Schedule Project Milestone Date City Council Meeting | Order Preparation of Feasibility Study 6/23/2025 Neighborhood Meeting #1 (Walter-Beam Area) 12/17/2025 Neighborhood Meeting #1 (County Road C Area) 12/18/2025 City Council Meeting | Accept Feasibility Study, Order Public Hearing, 1/26/2026 Authorize Preparation of Plans and Specifications Neighborhood Meeting #2 (Walter-Beam & County Road C Areas) February 2026 City Council Meeting | Public Hearing and Order Improvement 2/23/2026 City Council Meeting | Approve Plans and Specifications, Authorize March/April 2026 Advertisement for Bids, Authorize Preparation of Assessment Roll Bid Opening April/May 2026 City Council Meeting | Award Contract May 2026 Neighborhood Meeting #3 (Walter-Beam Area) May 2026 Neighborhood Meeting #3 (County Road C Area) May 2026 Begin Construction June 2026 City Council Meeting | Accept Assessment Roll and Order Assessment September 2026 Hearing Neighborhood Meeting #4 (Walter-Beam & County Road C Areas) September 2026 City Council Meeting | Assessment Hearing and Adopt Assessment Roll September 2026 Complete Construction November 2026 Assessments Certified to Ramsey County November 2026 v Council Packet Page Number 74 of 476 J2, Attachment 3 FEASIBILITY REPORT 2026 MAPLEWOOD STREET IMPROVEMENTS CITY PROJECT 25-21 Walter-Beam Area: Walter Street, Beam Avenue, Lydia Avenue, Edward Street, Carey Heights Drive, Duluth Street, Frank Street, Frank Court, Summit Court, Countryview Circle, Duluth Court County Road C Area: Kohlman Avenue, Fitch Road, Clarence Street, English Street, Elm Street, Brooks Avenue, Barclay Street, Gem Street, Van Dyke Street 1.0 Introduction On June 23, 2025, the Maplewood City Council ordered the preparation of a feasibility study for the 2026 Maplewood Street Improvements. The project includes two general areas; the Walter-Beam Area and the County Road C Area. The total length of streets to be improved is 4.4 miles. This project is a part of the 2026 Î 2030 Maplewood Capital Improvement Plan (CIP). After review and approval from City Council, construction would begin in June of 2026. A map of the streets to be improved is shown in Exhibit 1. The Walter-Beam Area streets total 2.4 miles in length. The neighborhood is bordered by Highway 61 to the east, County Road D to the north, Kohlman Lake to the south, and the City limits to the west. The County Road C Area streets total 2.0 miles in length. The County Road C Area is made up of 5 smaller neighborhoods near County Road C. The neighborhoods are bordered by Beam Avenue to the north, Highway 61 to the west, Gervais Avenue to the south, and White Bear Avenue to the east. The existing street pavement and aging utility infrastructure on these streets present an ongoing maintenance problem for the Maplewood Street and Utility Departments. Of the infrastructure elements the city maintains, the bulk of the maintenance activities consist of patching the roadway, crack sealing, filling potholes, and maintaining the aging utility infrastructure. These streets are in need of significant improvements. 2.0 Correspondence On June 23, 2025, the Maplewood City Council directed staff to prepare a feasibility study for the 2026 Maplewood Street Improvements Project. On July 18, 2025, staff mailed notification letters to residents within the project areas to inform them of the CouncilÓs action and to advise that preliminary project activities would begin in the fall of 2025. Informational packets were mailed to affected residents on December 4, 2025. The packets provided project-related information, including frequently asked questions regarding street construction and assessments, as well as an invitation to the first neighborhood meeting. The first neighborhood informational meetings were held on December 17, 2025, for the Walter-Beam Area and on December 18, 2025, for the County Road C Area. Invitations were mailed to 381 property 1 Council Packet Page Number 75 of 476 J2, Attachment 3 owners. Attendance included 20 participants at the Walter-Beam Area meeting and 22 participants at the County Road C Area meeting. Each meeting consisted of a staff presentation followed by a question-and-answer session. Topics discussed included the public improvement process, construction process, existing conditions, proposed improvements, assessment information, and an estimated project timeline. The discussion at the Walter-Beam Area meeting primarily focused on drainage concerns, pavement conditions, speeding on Walter Street, drivers ignoring stop signs on Beam Avenue and Walter Street, and general construction-related questions. Questions at the County Road C Area meeting primarily focused on the appearance and functionality of the proposed concrete curb and gutter, proposed street widths, drainage concerns, anticipated impacts on boulevard areas, speeding concerns, and general construction-related questions. Following the meetings, staff posted the presentation on the project website. Similar to past projects, the City utilized the InputID platform to gather additional resident feedback. Residents were provided instructions on accessing the tool on December 23, 2025. InputID allows users to submit comments on an interactive map and indicate support or opposition to other comments. Staff have received feedback on issues including speeding, drainage, curbing, pavement conditions, and street lighting, and will continue to monitor and address concerns throughout the design process to the extent possible. Additional neighborhood meetings and stakeholder correspondence are planned throughout the public improvement process to continue engaging with area residents, ensure affected parties are well- informed, and provide multiple opportunities for public input. A second neighborhood meeting will be scheduled prior to the public hearing in February 2026. This meeting will provide residents with the opportunity to review the most recent project updates and ask questions in advance of the public hearing. Property Owner Concerns Speeding on Walter Street & Beam Avenue: Multiple residents expressed concerns at Neighborhood Meeting #1 and on the Input ID tool regarding the frequency of speeding vehicles along Beam Avenue and Walter Street. Staff will evaluate design options to encourage lower speeds. Typical measures on streets of this type may include narrowing lane striping to create a more constrained roadway, adding curb bumpouts at strategic locations, and deploying the CityÓs mobile speed display sign to increase driver awareness. Enforcement by the Police Department may be needed to address repeat or persistent speeding behavior. Groundwater, Drainage, and Sump Pump Discharge in the Walter-Beam Area: Residents in the Walter-Beam Area have expressed concerns regarding high groundwater levels and frequent sump pump discharge. Staff will continue to coordinate with affected residents to identify and implement solutions where feasible, with the goal of addressing these challenges and protecting the infrastructure improvements associated with the project. Drainage in the County Road C Area: Staff have received complaints from residents regarding the lack of a modern drainage system and curbing to effectively convey runoff from streets and buildings to the storm sewer system and downstream ponding areas. Staff have identified this as a key issue to be addressed during the project design. 2 Council Packet Page Number 76 of 476 J2, Attachment 3 Proposed Street Widths in the County Road C Area: Many residents at Neighborhood Meeting #1 were curious about the proposed street widths and how they were determined during project design. Staff explained that the CityÓs Living Streets Policy served as the guiding document for establishing the proposed street widths. The policy recommends street widths of 24 to 28 feet for local streets, such as those within the County Road C area. 3.0 Existing Conditions Street History The Walter-Beam Area streets were originally constructed in the 1980s and early 1990s, while the streets in the County Road C Area date back to the 1960s. Because of this substantial difference in infrastructure age, the recommended improvements vary between the two areas. The older County Road C streets require a more comprehensive full-reconstruction approach, whereas the Walter-Beam Area is better suited for a pavement-rehabilitation focused approach. All streets within the project limits are posted or designated at 30 mph. Walter Street and Beam Avenue are classified as collector roadways, while all other streets in the project areas are designated as local streets. Local streets provide access and vehicle movement between individual properties and collector streets. Collector streets convey traffic from local streets to higher-capacity arterial roadways like White Bear Avenue, Highway 61, and County Road C. Existing street widths in the County Road C Area vary due to pavement edge deterioration, absence of concrete curb and gutter, and encroachment of vegetation. In contrast, street widths in the WalterÎ Beam Area are generally consistent due to the presence of concrete curb and gutter. Table A summarizes the average widths for all streets. Widths were measured based on the 2025 topographic surveys and field measurements along each street segment. For streets with concrete curb and gutter, widths are measured from toe-of-curb to toe-of-curb. For streets without curb and gutter, widths are measured between the edges of the pavement. Table A: Existing Street Widths 2026 Maplewood Street Improvements Walter-Beam Area Street From/To Average Width (ft.) Walter Street Beam Avenue/County Road D 34 Beam Avenue Highway 61/Walter Street 33 Lydia Avenue Walter Street/Edward Street 30 Edward Street Cul-de-sac/Frank Street 30 Carey Heights Drive Frank Street/Duluth Street 30 Duluth Street Carey Heights Drive/Beam Avenue 30 Frank Street Cul-de-sac/Beam Avenue 32 Frank Court Frank Street/Cul-de-sac 32 Summit Court Duluth Street/Cul-de-sac 30 Countryview Circle Duluth Street/Cul-de-sac 30 Duluth Court Duluth Street/Cul-de-sac 30 County Road C Area Kohlman Avenue (West) Maplewood Drive/Fitch Road 22 Fitch Road Dead End/Kohlman Avenue (West) 20 Clarence Street (North) Kohlman Avenue (West)/Cul-de-sac 28 3 Council Packet Page Number 77 of 476 J2, Attachment 3 English Street County Road C/Kohlman Avenue (West) 26 Elm Street County Road C/Kohlman Avenue (West) 24 Clarence Street (South) County Road C/Dead End 30 Gem Street Dead End/County Road C 28 Brooks Avenue Hazelwood Street/Barclay Street 28 Barclay Street Dead End/Brooks Avenue 30 Kohlman Avenue (East) White Bear Avenue/Van Dyke Street 28 Van Dyke Street County Road C/Kohlman Avenue (East) 26 Pavement Condition The Pavement Condition Index (PCI) methodology was employed to assess the condition of project street pavements. The PCI is a visual rating system ranging from 0 to 100, where 0 represents the poorest pavement condition and 100 represents the best condition, equivalent to a newly constructed roadway. Developed by the United States Army Corps of Engineers, the PCI method is widely utilized in asset management and transportation engineering. The CityÓs standard objective is to maintain at least 75 percent of local streets with a PCI of 70 or higher. Table B: Pavement Condition Index (PCI) 2026 Maplewood Street Improvements Walter-Beam Area Street From/To Length (ft.) 2025 PCI Carey Heights Drive Frank Street/Duluth Street 598 41 Beam Avenue Frank Street/Duluth Street 1835 44 Walter Street Lydia Avenue/County Road D 566 52 Frank Street Frank Court/Edward Street 589 52 Frank Street Edward Street/Cul-de-sac 261 14 Countryview Circle Cul de sac/Duluth Street 656 42 Duluth Court Cul de sac/Duluth Street 655 26 Duluth Street Beam Avenue/Duluth Court 276 12 Duluth Street Summit Court/Carey Heights Drive 1248 17 Edward Street Frank Street/Lydia Avenue 303 38 Edward Street Lydia Avenue/Cul-de-sac 997 52 Frank Court Frank Street/Cul-de-sac 986 21 Frank Street Beam Avenue/Frank Court 689 27 Lydia Avenue Walter Street/Edward Street 666 52 Beam Avenue Walter Street/Frank Street 598 41 Beam Avenue Highway 61/Duluth Street 769 72 Summit Court Cul-de-sac/Duluth Street 1835 44 Walter Street Beam Avenue/Lydia Avenue 566 52 Duluth Street Countryview Circle/Summit Court 589 52 Duluth Street Duluth Court/Countryview Circle 261 14 County Road C Area Clarence Street (North) Kohlman Avenue (West)/Cul-de-sac 598 41 Clarence Street (North) Dead End/County Road C 1835 44 Kohlman Avenue (West) English Street/Clarence Street (North) 566 52 Kohlman Avenue (West) Clarence Street/Elm Street 589 52 Kohlman Avenue (West) Elm Street/Fitch Road 261 14 Elm Street County Road C/Kohlman Avenue (West) 656 42 4 Council Packet Page Number 78 of 476 J2, Attachment 3 English Street County Road C/Kohlman Avenue (West) 655 24 Fitch Road Kohlman Avenue/Dead End 276 12 Gem Street County Road C/Dead End 1248 17 Barclay Street Brooks Avenue/Cul-de-sac 303 38 Kohlman Avenue (West) Maplewood Drive/English Street 997 52 Kohlman Avenue (East) VanDyke Street/White Bear Avenue 986 21 VanDyke Street County Road C/Kohlman Avenue (East) 689 27 Brooks Avenue Barclay Street/Hazelwood Street 666 52 Total Length (Miles) = 4.4 Weighted Average 2025 PCI = 37 The existing streets exhibit a variety of pavement distresses, including but not limited to transverse and edge cracking, medium to high severity patching, fatigue (alligator) cracking, block cracking, and numerous potholes that require annual maintenance. Several street sections also experience water ponding, which, when subjected to winter freeze-thaw cycles, accelerates pavement deterioration. Figures 1 through 8 on the following pages illustrate the extent of pavement distress observed throughout the project area. These images were taken during the fall of 2025 and provide a representative depiction of the current pavement condition. 5 Council Packet Page Number 79 of 476 J2, Attachment 3 Walter Street FIGURE 1: Pavement Condition Photos 6 Council Packet Page Number 80 of 476 J2, Attachment 3 Duluth Street FIGURE 2: Pavement Condition Photos 7 Council Packet Page Number 81 of 476 J2, Attachment 3 Frank Court FIGURE 3: Pavement Condition Photos 8 Council Packet Page Number 82 of 476 J2, Attachment 3 Clarence Street (South) FIGURE 4: Pavement Condition Photos 9 Council Packet Page Number 83 of 476 J2, Attachment 3 Gem Street FIGURE 5: Pavement Condition Photos 10 Council Packet Page Number 84 of 476 J2, Attachment 3 FitchRoad FIGURE 6: Pavement Condition Photos 11 Council Packet Page Number 85 of 476 J2, Attachment 3 Kohlman Avenue (West) FIGURE 7: Pavement Condition Photos 12 Council Packet Page Number 86 of 476 J2, Attachment 3 Kohlman Avenue (East) FIGURE 8: Pavement Condition Photos 13 Council Packet Page Number 87 of 476 J2, Attachment 3 Geotechnical Summary Independent Testing Technologies (ITT) was hired to conduct a geotechnical investigation to support the design and construction of the roadway project. A summary of the geotechnical investigation is provided in Exhibit 3. The report includes information on the existing roadway section, subsurface soil conditions, and recommendations regarding appropriate construction methods and procedures. Due to past construction methods and patching of the existing roadway over time, asphalt pavement and aggregate base thicknesses are irregular. The average existing roadway section on each street is shown below in Table C. Table C: Existing Average Pavement Section 2026 Maplewood Street Improvements Walter-Beam Area Pavement Agg. Base Street From/To Thickness Thickness (in) (in) Walter Street Beam Avenue/County Road D 5 12 Beam Avenue Walter Street/Highway 61 6 14 Lydia Avenue Walter Street/Edward Street 5 9 Edward Street Cul-de-sac/Frank Street 4 10 Carey Heights Drive Frank Street/Duluth Street 4 5 Duluth Street Carey Heights Drive/Beam Avenue 5 13 Frank Street Cul-de-sac/Beam Avenue 5 7 Summit Court Cul-de-sac/Duluth Street 3 5 Countryview Drive Cul-de-sac/Duluth Street 3 8 Duluth Court Cul-de-sac/Duluth Street 3 7 Frank Court Cul-de-sac/Frank Street 4 8 County Road C Area Kohlman Avenue (West) Maplewood Drive/Fitch Road 5 6 Fitch Road Dead End/Kohlman Avenue (West) 3 5 Clarence Street (North) Cul-de-sac/Kohlman Avenue (West) 5 8 English Street Kohlman Avenue (West)/County Road C 6 3 Elm Street Kohlman Avenue (West)/County Road C 6 8 Clarence Street (South) County Road C/Dead End 4 6 Brooks Avenue Hazelwood Street/Barclay Street 3 10 Barclay Street Brooks Avenue/Dead End 3 5 Gem Street Dead End/County Road C 5 3 Van Dyke Street Kohlman Avenue (East)/County Road C 6 10 Kohlman Avenue (East) White Bear Avenue/Van Dyke Street 4 7 Based on the pavement core results, the existing pavement section is past its useful life. Deterioration of the project streets has progressed to the point where routine maintenance is no longer cost-effective and, in some locations, is not feasible. 14 Council Packet Page Number 88 of 476 J2, Attachment 3 Several areas of the project streets exhibit insufficient cross-slope, resulting in water ponding within low points that accelerates pavement deterioration. As the pavement ages, these depressions retain water, leading to freeze-thaw damage, pop-outs, and edge cracking, which ultimately develop into potholes over time. Frost-susceptible soils have been identified within the road subgrade on some streets in the County Road C Area. Under certain conditions, these soils can contribute to freeze-thaw distress in the roadway. If encountered during construction, these soils should be excavated and replaced with well- draining granular material to mitigate future pavement damage. Walter Street, between Sunset Ridge Park and Beam Avenue, experiences seasonally high groundwater levels. The geotechnical report identifies this through the presence of mottled soils immediately below the aggregate base. Residents along this section have also reported indicators of high groundwater, including persistently soft boulevard soils after rain events, continuously running sump pumps, and noticeable settling of pavement, curb, and adjacent sidewalk panels. Existing Curb During rainfall events, curb and gutter conveys stormwater runoff from streets, buildings, and adjacent properties into the underground storm sewer system. This method of runoff management is highly effective for preserving roadway infrastructure due to the following benefits: Provides a rigid, supporting edge for asphalt pavement. Directs runoff over a non-erodible surface. Confines traffic and snowplowing operations to the roadway. Reduces long-term pavement maintenance costs. Enhances the visual appearance and overall curb appeal of adjacent properties. Existing concrete curb and gutter is present on the following streets: Beam Avenue Walter Street Lydia Avenue Edward Street Carey Heights Drive Duluth Street Frank Street Frank Court Summit Court Countryview Circle Duluth Court The existing concrete curb and gutter on the streets listed above is generally in good condition, except for Walter Street between Sunset Ridge Park and Beam Avenue. This segment experiences seasonal high groundwater in combination with a relatively flat roadway profile. This has led to differential settlement and heaving during freeze-thaw cycles. These conditions result in water ponding in the curb and pavement, accelerating infrastructure deterioration. On all other streets, only localized spot repairs are necessary. Existing concrete curb and gutter is not present on the following streets. Kohlman Avenue (West) Fitch Road 15 Council Packet Page Number 89 of 476 J2, Attachment 3 Clarence Street (North) English Street Elm Street Clarence Street (South) Barclay Street Brooks Avenue Gem Street Van Dyke Street Kohlamn Avenue (East) Existing Utilities Sanitary Sewer: The sanitary sewer system in the WalterÎBeam Area was constructed in the 1980s and 1990s as the surrounding properties were developed. During this period, Polyvinyl Chloride (PVC) pipe was the standard material for sanitary sewer installations. Accordingly, the system in this area consists of PVC pipe and precast concrete manholes. PVC pipe is the current standard material for modern sanitary sewer systems due to its durability, corrosion resistance, and ease of installation. Its smooth interior reduces friction and sediment buildup, and glued joints provide reliable watertight connections. PVC is lightweight, cost-effective, and performs well under typical soil and loading conditions when properly installed, making it a dependable choice for contemporary sewer infrastructure. Overall, PVC piping is considered a reliable, cost-effective solution for modern sanitary sewer applications. The sanitary sewer system in the County Road C Area was installed in the 1950s and 1960s. At that time, Vitrified Clay (VC) pipe was the commonly used material for sanitary sewer construction. As a result, the system in this area consists of VC pipe with precast concrete manholes. VC pipe was widely used for sanitary sewers up to the 1970s due to its chemical resistance and rigidity. The material is brittle and susceptible to cracking or displacement from soil movement or root intrusion. The joints are more prone to groundwater infiltration and root intrusion than modern PVC connections. Overall, VC pipe performs adequately but typically requires more maintenance and cleaning compared to PVC systems. Sewage in the Walter-Beam Area is served by Maplewood Sanitary Sewer District 15. Flows from properties within the district are conveyed east through a network of pipes to Highway 61, where they discharge into the Metropolitan Council Sewer Interceptor. Sewage in the County Road C Area is served by Maplewood Sanitary Sewer Districts 27, 22, and 19. Flows from properties within these districts are conveyed through a network of pipes to the Metropolitan Council Sewer Interceptor located along Highway 61 and the Bruce Vento Forcemain. During the sanitary sewer manhole inspection in the fall of 2025, Maplewood Public Works Maintenance Staff noted no significant issues with the precast concrete manholes under the project streets. Project staff will review videotapes taken of the sewer mains to identify any potential main repairs that are needed. Water Main: 16 Council Packet Page Number 90 of 476 J2, Attachment 3 The water main piping within the entire project area is owned, operated, and maintained by St. Paul Regional Water Services (SPRWS). Records indicate that the water main under the project streets in both areas is modern ductile Iron (DI) pipe that is in good condtion. Storm Sewer and Drainage: The project is entirely located within the RamseyÎWashington Metro Watershed District (RWMWD). Runoff from the WalterÎBeam Area drains to the Kohlman Lake subwatershed, while runoff from the County Road C Area drains to the Kohlman Lake, Kohlman Creek, and Keller Lake subwatersheds. Runoff from all three subwatersheds ultimately discharges to the Mississippi River. The existing storm sewer system on project streets was inspected by staff in the fall of 2025. On streets with concrete curb and gutter, only minor deficiencies were observed. Noted issues included a few failed storm sewer structures, damaged casting adjustment rings, and broken inlet castings on these streets. On streets without concrete curb (County Road C Area), local residents and maintenance staff have reported several drainage issues. During larger storm events, the capacity of existing inlets and pipes in some areas is insufficient, resulting in temporary flooding of streets and adjacent yards. Additionally, the absence of a storm sewer system and concrete curb contributes to pavement edge erosion and localized street icing, which present ongoing maintenance, nuisance, and safety concerns. Other: Maintenance staff have identified additional issues within the project area, as summarized below. Diseased ash trees located within the City right-of-way throughout the project area require removal. Streets in the County Road C area lack adequate curb and gutter and associated drainage infrastructure. Curbs at dead ends and designated snow storage areas should be Ðknocked downÑ to facilitate snow plowing operations. Dead-end turnarounds should be improved to enhance maneuverability for snow plow operations. Project staff will evaluate potential solutions to these issues during the project design phase. 4.0 Proposed Improvements Living Streets Policy The City of Maplewood adopted a Living Streets Policy in January 2013. The policy establishes the following primary goals: Encourage people to travel by walking or bicycling Encourage walking and bicycling as modes of transportation Maximize the infiltration of stormwater Improve the quality of stormwater runoff Enhance the urban forest Reduce life cycle costs Create aesthetically appealing neighborhoods The policy supports narrower street designs, traffic calming measures, pedestrian walkways (where feasible), improved streetscape aesthetics, stormwater quality enhancements, and additional boulevard 17 Council Packet Page Number 91 of 476 J2, Attachment 3 trees. Standard design templates for local streets are provided in Exhibit 4. Implementation of the Living Streets Policy is recommended for streets that lack existing concrete curb and gutter and are located in urban settings. Staff recommend applying the policy to streets within the County Road C Area to the extent possible. Proposed Street Widths Local neighborhood streets, such as those in the County Road C Area, are typically designed with a 28- to 30-foot width, measured from face of curb to face of curb. This width adequately accommodates low- volume traffic, on-street parking on one side, and space for pedestrians and bicyclists. Table D below presents the proposed street widths. Table D: Proposed Street Widths 2026 Maplewood Street Improvements County Road C Area Existing Proposed Street From/To Average Width (ft.) Width (ft.) Kohlman Avenue (West) Maplewood Drive/Fitch Road 26 22 Fitch Road Dead End/Kohlman Avenue (West) 26 20 Clarence Street (North) Cul-de-sac/Kohlman Avenue (West) 26 28 English Street Kohlman Avenue (West)/County Road C 26 26 Elm Street Kohlman Avenue (West)/County Road C 26 24 Clarence Street (South) County Road C/Dead End 28 30 Brooks Avenue Hazelwood Street/Barclay Street 28 28 Barclay Street Brooks Avenue/Dead End 28 30 Gem Street Dead End/County Road C 28 28 Van Dyke Street Kohlman Avenue (East)/County Road C 28 26 Kohlman Avenue (East) White Bear Avenue/Van Dyke Street 28 28 Kohlman Avenue (West) and Fitch Road Right-of-Way Width Concerns: The typical right-of-way (ROW) width for residential streets ranges from 60 to 66 feet. The existing ROW along Kohlman Avenue (West) and Fitch Road is limited to approximately 40 feet. This constrained ROW will present both design and construction challenges. During the design phase, adjustments to street widths, curb types, and utility alignments may be required to accommodate the limited available ROW along these corridors. Staff recommend the street widths shown in Table D for the County Road C Area. These widths were chosen to best match in with the adjacent boulevards and driveways given the tight constraints within the existing ROW. Street Reconstruction Scope This project will utilize a combination of construction methods based on the condition of existing infrastructure. Streets lacking concrete curb and gutter are proposed for a full reconstruction. Streets with existing concrete curb and gutter in good condition, requiring only localized repairs, are proposed for pavement rehabilitation. Exhibit 2 identifies the streets proposed for full reconstruction and those proposed for pavement rehabilitation. 18 Council Packet Page Number 92 of 476 J2, Attachment 3 Staff recommend implementing the following improvements on the Walter-Beam area streets, as shown in Exhibit 2. Full depth reclamation (grinding and mixing) of existing pavement and aggregate base. Removal of excess reclaim material to accommodate the new pavement section. Placement of new bituminous pavement over the reclaimed aggregate base. Replacement of soft subgrade soils beneath the roadway as needed. Spot replacement of structurally damaged concrete curb and gutter. Upgrades to existing pedestrian facilities. Sawing and sealing of control joints in the new bituminous pavement. Replacement of outdated utility surface castings and spot replacement of failing structures. Installation of sacrificial anodes on water mains as directed by SPRWS (reduces corrosion and extends service life). Restoration of disturbed driveways, boulevards, and landscaping impacted by the project. Staff recommend implementing the following improvements on the County Road C area streets, as shown in Exhibit 2. Removal of existing pavement and underlying aggregate base. Placement of new aggregate base and new bituminous pavement. Road subgrade soil corrections based on soil boring data. Construction of new concrete curb and gutter. Upgrades to existing pedestrian facilities. Sawing and sealing of control joints in the new bituminous pavement. Significant utility improvements to include the expansion of the storm sewer system, improvements to the water system as determined by SPRWS, and spot replacement of select sanitary sewer mains and services. Water quality improvements, such as rain gardens and infiltration basins, where feasible. Restoration of disturbed driveways, boulevards, and landscaping impacted by the project. Concrete Curb and Gutter Spot Replacement in Walter-Beam Area: Damaged sections of concrete curb can result in standing water along the curb line or road edge, which accelerates pavement deterioration over time. Based on an initial site investigation, staff estimate that approximately 20% of the existing concrete curb and gutter on pavement rehabilitation streets will require replacement, with the exception of Walter Street between Beam Avenue and Sunset Ridge Park. This segment of Walter Street experiences seasonally high groundwater levels, which has caused noticeable settling of the pavement, curb, and adjacent sidewalk panels. Over time, this settling has led to loss of curb and sidewalk pitch, structural cracking, and water ponding. Staff recommend removing and replacing only structurally deficient sections of existing curb and gutter on pavement rehabilitation streets, with the exception noted above. During construction, a City project representative will determine the specific sections requiring removal and replacement. Staff recommend full removal and replacement of all existing concrete curb and gutter on Walter Street between Beam Avenue and Sunset Ridge Park. New Construction in County C Area: Concrete curb and gutter, Design B618 (Barrier Curb), has been the standard for MaplewoodÓs urban 19 Council Packet Page Number 93 of 476 J2, Attachment 3 streets since the early 2000s. Barrier curbing offers the following advantages: Provides a defined channel for stormwater runoff, preventing damage to the roadway pavement and erosion of grass boulevards. Creates a stable concrete edge to support the asphalt pavement. Functions as a traffic channelizing barrier, reducing the likelihood of vehicles leaving the roadway under adverse conditions. Protects grass boulevards and mailboxes from damage caused by snowplows and vehicles. Curb knockdowns at driveways clearly delineate entrances and help prevent on-street parking from blocking access. Knockdowns will be installed at all driveway openings to provide smooth vehicle transitions. Ribbon curb may also be required in select locations to direct drainage to existing ponding areas. Staff recommend installing Design B618 (Barrier Curb), as shown in Exhibit 5, throughout the County Road C Area. Pedestrian Improvements New Sidewalks and Trails: Staff reviewed the CityÓs 2040 Comprehensive Plan, Parks Master Plan, and Living Streets Policy to evaluate guidance for adding new sidewalks and trails within the project area. These documents do not specifically recommend the construction of new sidewalks or trails for this project. Walter/Beam Sidewalk: Walter Street and Beam Avenue have an existing sidewalk that extends from County Road D to Highway 61. The majority of the sidewalk is in good condition; however, several sections are structurally damaged and are recommended for removal and replacement. Pedestrian Ramps and Crossings: Staff will review all pedestrian crossing points and determine the need for upgrades or additional crossings in accordance with current Americans with Disabilities Act (ADA) standards and the City of MaplewoodÓs Crossing Policy. The existing crossing at Sunset Ridge Park on Watler Street will be evaluated for possible safety enhancements. Sanitary Sewer Based on manhole inspections conducted in the fall of 2025, all existing sanitary manhole structures within the project area are in good condition. Outdated castings will be replaced with the new standard, which will improve accessibility and eliminate stormwater inflow and infiltration (I&I) into the sanitary sewer system. Reducing stormwater entry into the sanitary system decreases the volume of water conveyed to the Metropolitan Council Wastewater Treatment Plant, supporting a key environmental priority of both the City and the Metropolitan Council. Staff recommend leaving the existing sanitary sewer manhole structures in place and replacing any outdated surface castings with MaplewoodÓs standard casting. The County Road C Area contains several deteriorated sewer mains and service connections. Sanitary sewer mains and services on all other project streets were found to be in good condition. Staff recommend spot replacement of compromised sewer mains and services in the County Road C Area to minimize the risk of costly utility repairs under the new street pavement following road construction. Sewer lining involves installing a rigid liner and epoxy resin within an existing pipe to form a new, structurally sound pipe. This process significantly extends the pipeÓs design life and provides enhanced 20 Council Packet Page Number 94 of 476 J2, Attachment 3 resistance to corrosive substances, increased structural strength, elimination of tree root intrusion, prevention of groundwater infiltration, repairs settled or offset joints, and reduces overall pipe life-cycle costs. The CityÓs sanitary mains will be reviewed to determine which segments would be good candidates for sewer lining. An approximate length of 3,200 linear feet of sanitary sewer lining is included in the cost estimate. Water Main Water Main Replacement: SPRWS owns and maintains the water system throughout the project area. SPRWS has reviewed the condition and age of the existing water mains and provided guidance to staff regarding replacement. Currently, SPRWS does not recommend replacing any existing water mains. SPRWS has directed staff to replace all outdated fire hydrants within the County Road C Area of the project. Sacrificial Anodes: A sacrificial anode is a sack of magnesium powder that is attached to a water main with conductive wires. Installing anodes enhances the water mainÓs resistance to corrosion (rusting), thereby extending its service life. SPRWS has reviewed the condition of the existing water mains and directed that sacrificial anodes be installed on all mains in the project area at approximately 200-foot intervals. Storm Sewer Storm sewer capacity is limited in the County Road C Area. Installing a new storm sewer system under these streets provides an opportunity to incorporate water quality and volume-reduction Best Management Practices (BMPs) during reconstruction. Potential BMPs include biofiltration basins (rain gardens), underground infiltration basins, and sump manholes. These practices improve the quality of water entering local water bodies and help control stormwater runoff rates. BMPs will be designed to meet the requirements of the Ramsey-Washington Metro Watershed District (RWMWD) and the City of Maplewood. During design, staff will carefully evaluate potential locations for water quality BMPs. Staff recommend installing new storm sewer systems on all streets in the County Road C area. Exhibit 6 showcases the preliminary storm sewer system layout for this area. The existing storm sewer system in the Walter-Beam Area is generally in good condition and functioning properly, with only minor repairs required. A notable concern is the seasonally high groundwater along Walter Street between Sunset Ridge Park and Beam Avenue. To address this, staff recommend the installation of drain tile in this area in an effort to lower groundwater levels and reduce its impact on the roadway and adjacent infrastructure. Boulevard drains will be installed, where possible, to provide locations for sump-pump discharge to flow into the storm sewer system. Street Lighting Staff will review the CityÓs Street Lighting Policy to assess the need for additional street lighting. The policy specifies that lighting is required primarily for navigational and traffic safety purposes. This would include intersections, dead ends, or sharp curves. Additional lighting will be installed as necessary to ensure the project streets meet current policy standards. Private Utilities Private utility providers (e.g., Xcel Gas, Xcel Electric, CenturyLink/Lumen, Comcast/Xfinity) have been notified of the project and its potential impacts on their infrastructure. Staff will continue coordination with these utility companies throughout the duration of the project. 21 Council Packet Page Number 95 of 476 J2, Attachment 3 Erosion Control As part of the project, staff will prepare a Storm Water Pollution Prevention Plan (SWPPP) to ensure compliance with erosion and sediment control regulations. The SWPPP will identify control measures to be implemented throughout construction, including silt fence, bio-rolls, erosion control blankets, and other best management practices (BMPs) in areas susceptible to direct runoff. Inlet protection will be installed on existing and new catch basins. Street sweeping will be performed as needed on all paved surfaces, including intersecting streets, and watering of exposed soils and aggregate will be used for dust control. Erosion, sediment control, turf establishment, and SWPPP plan sheets will be created during the design phase and implemented during construction. Upon completion of street and utility work, disturbed areas will be restored with sod or seed for permanent turf establishment. The City, in coordination with the watershed district, will monitor all erosion and sediment control measures throughout construction. The selected contractor will be responsible for installing and maintaining all preventative measures in accordance with the requirements of the City of Maplewood, RWMWD, MPCA, and other applicable regulatory agencies. Traffic Control and Access A construction project of this scale will inevitably create some inconvenience and temporary disruption to local traffic. In general, work will be completed under conditions that maintain through-access for local residents. Staff will coordinate closely with residents, businesses, the general contractor, and the traffic control subcontractor to minimize disruptions while allowing the project to progress efficiently. Access for emergency vehicles will be maintained at all times. Short-term closures of individual street segments may occur during specific construction activities. When this happens, alternate access routes will be provided from adjacent streets. All streets and driveways will be reopened to traffic at the end of each working day whenever feasible. Additional Project Improvements A fog seal is a pavement maintenance strategy involving the application of a diluted asphalt emulsion to the pavement surface to seal minor surface defects, rejuvenate the existing asphalt binder, and extend the service life of the roadway. As part of this project, staff will review past improvement projects to determine which areas would most benefit from a fog seal. Fog seals typically extend the life of asphalt pavement by approximately 3 to 5 years. 5.0 Project Cost The estimated costs for the proposed improvements are detailed in the table below. These costs include a 10% construction cost contingency and a 12% allowance for geotechnical, legal, and fiscal expenses. Estimated Project Cost Summary Proposed Improvements Total Amount % of Total Street Improvements $7,730,450 65% Drainage Improvements $2,423,200 20% Sanitary Sewer Improvements $668,250 6% Water System Improvements $1,052,900 9% Total Estimated Project Cost: $11,874,800 100% 22 Council Packet Page Number 96 of 476 J2, Attachment 3 Exhibit 9 provides a more detailed construction and project cost estimate breakdown. 6.0 Cost Recovery Assessments This project will utilize special assessments as one of its funding sources. A special assessment is a charge that is applied to a property that directly benefits from the public improvement. The City of MaplewoodÓs Special Assessment Policy is based on Minnesota State Statutes, Chapter 429, which authorizes cities to use special assessments to help fund a wide range of public infrastructure improvements. Per state statute, the special assessment for any property cannot exceed the benefit that the improvement provides to that property. To ensure compliance, the City has hired an independent appraisal firm to evaluate the benefits to properties within the project areas. The appraisal report will be used to establish the final special assessment amounts for all properties. For the purposes of this report, the assessment rates and direction established in the CityÓs Special Assessment Policy were applied. A total of 374 residential and commercial parcels within the project area are considered assessable. Exhibit 7 provides the preliminary assessment roll, and Exhibit 8 illustrates the preliminary assessment map for the project. The preliminary assessment rates are listed below. Adjustments to the financing plan may be necessary once the special benefits appraisal has been completed and reviewed. Residential o Full Reconstruction Rate = $6,600/Unit o Pavement Rehabilitation Rate = $3,450/Unit Commercial/Multi-Family o Full Reconstruction Rate = $132.00/Front-Foot o Pavement Rehabilitation = $69.00/Front-Foot The improvements are proposed to be financed through the Environmental Utility Fund, General Obligation (GO) Bonds, Sanitary Sewer Fund, Special Benefit Assessments, St. Paul Regional Water Services (SPRWS), Street Revitalization Fund, and Water Area Fund. Estimated Project Cost Recovery Funding Source Total Amount % of Total General Obligation (G.O.) Improvement Bonds $4,614,585 39% Street Revitalization Fund $1,169,250 10% Environmental Utility Fund $2,423,200 20% Sanitary Sewer Fund $668,300 6% Water Area Fund (WAC) $162,700 1% St. Paul Regional Water Services (SPRWS) $890,200 8% Special Benefit Assessment $1,946,565 16% Total Estimated Project Funding: $11,874,800 100% The total estimated project cost is $25,200 lower than the approved CIP. 23 Council Packet Page Number 97 of 476 J2, Attachment 3 7.0 Schedule The following schedule may be implemented should it be determined to proceed with the project: Project Schedule Project Milestone Date City Council Meeting | Order Preparation of Feasibility Study 6/23/2025 Neighborhood Meeting #1 (Walter-Beam Area) 12/17/2025 Neighborhood Meeting #1 (County Road C Area) 12/18/2025 City Council Meeting | Accept Feasibility Study, Order Public Hearing, 1/26/2026 Authorize Preparation of Plans and Specifications Neighborhood Meeting #2 (Walter-Beam & County Road C Areas) February 2026 City Council Meeting | Public Hearing and Order Improvement 2/23/2026 City Council Meeting | Approve Plans and Specifications, Authorize March/April 2026 Advertisement for Bids, Authorize Preparation of Assessment Roll Bid Opening April/May 2026 City Council Meeting | Award Contract May 2026 Neighborhood Meeting #3 (Walter-Beam Area) May 2026 Neighborhood Meeting #3 (County Road C Area) May 2026 Begin Construction June 2026 City Council Meeting | Accept Assessment Roll and Order Assessment September 2026 Hearing Neighborhood Meeting #4 (Walter-Beam & County Road C Areas) September 2026 City Council Meeting | Assessment Hearing and Adopt Assessment Roll September 2026 Complete Construction November 2026 Assessments Certified to Ramsey County November 2026 8.0 Conclusions and Recommendations Based on the feasibility study and site investigations, the following conclusions can be made: The project is feasible from an engineering standpoint, consistent with standard principles, practices, and construction methods described in this report. The project is necessary to support economic development and maintain the public's quality of life. The project is cost-effective when considering all related costs, including environmental, maintenance, private, and public expenses. The proposed improvements are necessary for maintaining municipal infrastructure. In consideration of these conclusions, staff recommend the following: If the City Council determines the project to be feasible, a public hearing should be scheduled promptly. The proposed improvements should be constructed in accordance with the recommendations presented in this report. The costs of the improvements should be recovered as outlined in the cost recovery section of this report. 24 Council Packet Page Number 98 of 476 J2, Attachment 3 Appendix A 25 Council Packet Page Number 99 of 476 J2, Attachment 3 Council Packet Page Number 100 of 476 J2, Attachment 3 Council Packet Page Number 101 of 476 J2, Attachment 3 OCTOBER 3,2025 PROJECT 25-287 REPORT OF GEOTECHNICAL EXPLORATION For 2026STREET IMPROVEMENTS CITY PROJECT #25-21 MAPLEWOOD, MINNESOTA Prepared For: CITY OF MAPLEWOOD Council Packet Page Number 102 of 476 J2, Attachment 3 October 3, 2025 Mr. Tyler Strong Cityof Maplewood 1830 County Road B East Maplewood, MN 55109 RE: 25-287Report of Geotechnical Exploration 2026Street Improvements-City Project #25-21 Maplewood, Minnesota Dear Mr.Strong: Independent Testing Technologies, Inc. is pleased to submit the results of our subsurface investigation program for this project in Maplewood, Minnesota. This report represents our work onthis project as authorized by you. It includes our recommendations regarding earthwork, fill and compaction, subgrade preparation, pavement designand stormwater infiltration. An electronic copy is enclosed. The soils encountered were mostly glacial till soils consisting of silty sands (SM), silty clayey sands (SC-SM), clayey sands (SC) and sandy lean clays (CL, SC) and some sands (SM, SP-SM, SP), silts (ML) and silty lean clays (CL-ML).Most of the soils aremarginal for use as roadway subgrade. Organic soils are mapped near numerous drainage ditch and creek crossings. Groundwater was observed innumerous borings at varying depths. Mr. Strong,it has been our pleasure to work with you on this project. Independent Testing appreciated the opportunity to perform this geotechnical evaluation and look forward to continuing our participation during the construction phase of this project. Please contact Patrick Johnson if you have any questions regarding this report. Please contact Tyler Burkesif you would like a proposal for the materials testing services that will be needed. Sincerely, Patrick A. Johnson, P.E.Kevin T. Reller Minnesota License#22037President Council Packet Page Number 103 of 476 J2, Attachment 3 CERTIFICATION I hereby certify that this report was prepared by me or under my direct supervision and that I am a duly Licensed Engineer under the laws of the State of Minnesota. _______________________________ Patrick A. Johnson Date: October 3, 2025 License No.: 22037 Council Packet Page Number 104 of 476 J2, Attachment 3 TABLE OF CONTENTS A. Introduction .......................................................................... 1 Purpose ................................................................................. 1 Scope of Services ................................................................. 1 General Site Conditions ....................................................... 2 Available Subsurface Information ....................................... 2 B. Exploration Program ............................................................. 3 Exploration Results .............................................................. 3 Penetration Test Results....................................................... 5 Water Level Observations ................................................... 5 Laboratory Testing ............................................................... 6 C. Engineering Review.............................................................. 7 Discussion ............................................................................ 7 D. Recommendations ................................................................ 7 Embankment/ Road Fill ....................................................... 8 E. Pavement Recommendations ................................................ 9 F. Closing ................................................................................. 10 Boring Location Plan ................................................ Appendix 1 Pavement Core Photos .............................................. Appendix 2 Soil Boring Logs ....................................................... Appendix 3 Council Packet Page Number 105 of 476 J2, Attachment 3 GEOTECHNICAL EXPLORATION CITY OF MAPLEWOOD 2026 STREET IMPROVEMENTS- CITY PROJECT #25-21 MAPLEWOOD, MINNESOTA PROJECT 25-287 A. Introduction This report is being prepared for use by our client on this specific project. We intend to present this report and our findings in the same logical manner that led us to arrive at our recommendations. This report is based on some general assumptions regarding the anticipated construction based on experience with similar projects. These assumptions and the entire report should be reviewed immediately upon receipt. Purpose: The purpose of our investigation was to evaluate the existing soil and water conditions for the purpose of reconstructing numerous streets throughout the city. The project will consist of the Walter Beam Area and five separate small residential areas along County Road C on the north side of the city. The Walter Beam Area is southwest of County Road D and Maplewood Drive, aka US Highway 61. The other five project areas are along the County Road C Corridor between Maplewood Drive and White Bear Lake Avenue. The improvements will include replacing the storm sewer, sanitary sewer, water mains and services, and reconstructing the streets with new curb and gutter, sidewalks and bituminous surfaced streets. In accordance with your written authorization, we have conducted a subsurface exploration program for the proposed project. Scope of Services: Our authorized scope of services included the following: 1. To investigate the subsurface soil and water conditions encountered at eighty-one (81) split-spoon soil boring locations. The borings were planned to depths of just under fifteen (15) feet. 2. To investigate the pavement and aggregate base thicknesses at eighty (80) shallow pavement cores. Page 1 Council Packet Page Number 106 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota 3. To provide a report of our findings including a summary of our findings with pavement thickness at each boring location as well as recommendations regarding earthwork, fill and compaction, utility installation, roadway reclaiming, subgrade preparation, and pavement design with an estimated design R-value. General Site Conditions: The projects are located on the north side of the city of Maplewood. All the streets are local residential streets. The streets are all bituminous paved, urban streets with curb and gutter. The sites are mostly rolling, with slopes of 6-25 percent. Available Subsurface Information: According to the Geologic Map of Minnesota, Quaternary Geology, prepared by Howard C. Hobbs and Joseph E. Goebel (1982, Minnesota Geological Survey), the sites lie within an end moraine of the Pine City moraine association. It is associated with the Des Moines Lobe glaciation of Pleistocene, Late Wisconsinan age. The calcareous drift is derived from parent material in Manitoba and eastern North Dakota. According to the Soil Survey of Ramsey County prepared by the Soil Conservation Service, the Walter Beam Area site lies within mostly fine sandy loams that have moderate limitations for development of local streets due to frost, shrink- swell, low strength and shallow depth to saturated soils. An area of the southwest portion of the site is mapped as old gravel pits. According to the Soil Survey of Ramsey County prepared by the Soil Conservation Service, the County Road C Area sites lie within the fine sandy loams, sandy loams and Urban Land- Chetek soil unit. The fine sandy loams and sandy loams have moderate restrictions for development of local streets due to frost potential. The urban lands consist of gravelly sandy loams over gravelly coarse sands developed in glacial outwash material that have been graded for development. As such, they have no general ratings. Page 2 Council Packet Page Number 107 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota B. Exploration Program Eighty-one (81) split-spoon soil borings were conducted on this project. The borings were advanced to depths of just under 15 feet using a 3 Đ inch I.D. hollow stem auger. Samples were obtained every 2 ½ feet for the first 10 feet and every 5 feet, thereafter, using a 2-inch O.D. split-spoon sampler in accordance with the American Society for Testing and Materials (ASTM D1586). Standard penetration values (N-values) were obtained at each sample interval by driving the sampler into the soil using a 140-pound hammer falling 30 inches. After an initial set of 6 inches, the number of blows required to drive the sampler 12 inches is known as the standard penetration resistance or N-value. Where the sampler cannot be driven at least 6 inches by 50 blows of the hammer, the total number of blows as well as the distance driven is reported on the boring logs. Groundwater levels were noted during drilling and immediately after completion. The holes were backfilled with the auger cuttings. The holes in the pavement were patched with bituminous cold patch. Some settlement of the bore holes may be expected. All the borings were conducted with a truck mounted rig. Exploration Results: Eighty pavement cores were conducted on these sites at or near the boring locations. Boring SB-69 was conducted in a field off the end of Barclay Street N. The results are shown in the table below: Bituminous Aggregate Bituminous Aggregate Boring Street Boring Street Walter St. N. Frank Ct. N. PC-1 6.0Ñ 9.0Ñ PC-41 4.0Ñ 8.0Ñ Walter St. N. Kohlman Ave. E. PC-2 4.5Ñ 9.0Ñ PC-42 6.0Ñ 8.0Ñ Walter St. N. Kohlman Ave. E. PC-3 4.5Ñ 12.0Ñ PC-43 5.0Ñ 4.0Ñ Walter St. N. Kohlman Ave. E. PC-4 5.0Ñ 14.0Ñ PC-44 6.0Ñ 5.0Ñ Walter St. N. Kohlman Ave. E. PC-5 4.0Ñ 16.0Ñ PC-45 5.0Ñ 5.0Ñ Walter St. N. Kohlman Ave. E. PC-6 6.0Ñ 12.0Ñ PC-46 6.0Ñ 7.0Ñ Walter St. N. Kohlman Ave. E. PC-7 6.25Ñ 12.0Ñ PC-47 2.5Ñ 5.0Ñ Walter St. N. Kohlman Ave. E. PC-8 7.0Ñ 12.0Ñ PC-48 6.25Ñ 7.0Ñ Walter St. N. Kohlman Ave. E. PC-9 3.0Ñ 8.0Ñ PC-49 5.0Ñ 8.0Ñ Walter St. N. Kohlman Ave. E. PC-10 5.0Ñ 12.0Ñ PC-50 3.0Ñ 5.0Ñ Walter St. N. Fitch Rd. N. PC-11 5.5Ñ 12.0Ñ PC-51 3.25Ñ 5.0Ñ Walter St. N. Clarence St. N. PC-12 6.0Ñ 12.0Ñ PC-52 6.0Ñ 8.0Ñ Beam Ave, E. Clarence St. N. PC-13 6.0Ñ 15.0Ñ PC-53 5.0Ñ 4.0Ñ Beam Ave. E. Clarence St. N. PC-14 6.0Ñ 14.0Ñ PC-54 5.0Ñ 12.0Ñ Beam Ave. E. English St. N. PC-15 6.0Ñ 11.0Ñ PC-55 6.5Ñ 6.0Ñ Beam Ave. E. English St. N. PC-16 6.0Ñ 15.0Ñ PC-56 6.0Ñ None Beam Ave. E. Elm St. N. PC-17 7.0Ñ 14.0Ñ PC-57 6.0Ñ 4.0Ñ Lydia Ave. E. Elm St. N. PC-18 5.0Ñ 9.0Ñ PC-58 6.25Ñ 12.0Ñ Edward St. N. Clarence St. N. PC-19 3.5Ñ 10.0Ñ PC- 59 2.0Ñ None Page 3 Council Packet Page Number 108 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota Edward St. N. Clarence St. N. PC-20 2.5Ñ 12.0Ñ PC-60 5.25Ñ 11.0Ñ Edward St. N. Clarence St. N. PC-21 3.5Ñ 14.0Ñ PC-61 6.0Ñ 10.0Ñ Edward St. N. Clarence St. N. PC-22 4.0Ñ 5.0Ñ PC-62 3.5Ñ 8.0Ñ Edward St. N. Clarence St. N. PC-23 5.0Ñ 7.0Ñ PC-63 2.0Ñ None Carey Heights Dr. N. Clarence St. N. PC-24 4.0Ñ 5.0Ñ PC-64 6.875Ñ 8.0Ñ Carey Heights Dr. N. Brooks Ave. E. PC-25 3.5Ñ 5.0Ñ PC-65 2.5Ñ 8.0Ñ Carey Heights Dr. N. Brooks Ave. E. PC-26 3.0Ñ 6.0Ñ PC-66 2.5Ñ 12.0Ñ Duluth St. N. Barclay St. N. PC-27 4.0Ñ 12.0Ñ PC-67 2.75Ñ 5.0Ñ Duluth St. N. Barclay St. N. PC-28 5.0Ñ 14.0Ñ PC-68 3.25Ñ 6.0Ñ Duluth St. N. Barclay St. N. PC-29 4.0Ñ 17.0Ñ PC-70 2.75Ñ 5.0Ñ Duluth St. N. Gem St. N. PC-30 5.0Ñ 14.0Ñ PC-71 5.25Ñ 3.0Ñ Duluth St. N. Gem St. N. PC-31 5.0Ñ 12.0Ñ PC-72 6.75Ñ 2.0Ñ Duluth St. N. Gem St. N. PC-32 5.0Ñ 8.0Ñ PC-73 4.75Ñ 2.0Ñ Frank St. N. Gem St. N. PC-33 3.5Ñ 5.0Ñ PC-74 2.0Ñ 5.0Ñ Frank St. N. Van Dyke St. N. PC-34 6.5Ñ 5.0Ñ PC-75 5.25Ñ 13.0Ñ Frank St. N. Van Dyke St. N. PC-35 4.0Ñ 8.0Ñ PC-76 7.0Ñ 12.0Ñ Frank St. N. Van Dyke St. N. PC-36 4.0Ñ 8.0Ñ PC-77 5.25Ñ 9.0Ñ Frank St. N. Van Dyke St. N. PC-37 4.5Ñ 7.0Ñ PC-78 6.75Ñ 4.0Ñ Summit Ct. E. Kohlman Ave. E. PC-38 3.0Ñ 4.5Ñ PC-79 5.0Ñ 8.0Ñ Country View Cir. E. Kohlman Ave. E. PC-39 3.0Ñ 8.0Ñ PC-80 3.0Ñ 6.0Ñ Duluth Ct. E. Kohlman Ave. E. PC-40 3.0Ñ 7.0Ñ PC-81 5.0Ñ 6.0Ñ Below the pavement and aggregate, the borings in the Walter- Beam area encountered a mix of glacial till soils consisting of sandy lean clays (CL), silty lean clays (CL-ML), silts (ML), clayey sands (SC), silty clayey sands (SC-SM), silty sands (SM) and poorly graded sands (SP, SP-SM). Peat (PT) weas encountered in boring SB-16 on Beam Avenue from 7.5 to 13.0 feet, followed by organic silt (OL) to termination depth. Organic Silt (OL) weas encountered in boring SB-17 on Beam Avenue from 5.0 to 7.5 feet, followed by silty lean clay (CL-ML) to 13.0 feet and silt (ML) to termination depth. Borings SB-39 and SB-41 both encountered highly plastic clay (CH) at depths of 13.0 feet to termination. No other organic soils (PT, OL) or highly plastic clays (CH) were encountered in the Water Beam Area. Below the pavement and aggregate, the borings in the County Road C areas also encountered a Page 4 Council Packet Page Number 109 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota mix of glacial till soils consisting of sandy lean clays (CL), silty lean clays (CL-ML), silts (ML), clayey sands (SC), silty clayey sands (SC-SM), silty sands (SM) and poorly graded sands (SP, SP- SM). Some highly plastic clay (CH) was encountered in boring SB-45 on Kohlman Avenue East from 5.0 to 7.5 feet. Some highly plastic clay (CH) was encountered in boring SB-52 on Clarence Street North from 7.0 to 13.0 feet. Organic silt (OL) fill was encountered in boring SB-78 on Van Dyke Street from 3.0 to 5.0 feet, followed by peat (PT) to 7.5 feet, and then organic silt (OL) to 10.0 feet. Organic silt (OL) was encountered in boring SB-80 on Kohlman Avenue East from 3.0 to 5.0 feet, followed by native, sandy lean clay (CL) to termination. No other organic soils or highly plastic soils were observed in any of the borings on the County Road C area. Penetration Test Results: The blow counts in the sandy soils (SM, SP-SM, SM, SC-SM, SC) ranged from 2 to more than 50, which are very low to very high, indicating they are in a very loose to very dense condition. The blow counts in the clay (CL, CL-ML, CH) and silt (ML) soils ranged from 2 to 30, which are very low to high, indicating they are in a very soft to hard condition. The blow counts in the organic soils (PT, OL) ranged from 0 to 5, which are very low to low, indicating they are in a very soft to soft condition. Refusal of the auger occurred on gravel in borings SB2, SB-9 and SB-11 at depths of 11.5 feet, 10 feet and 13 feet, respectively. Refusal of the spoon or auger did not occur in any of the other borings. Drilling was relatively easy. Water Level Observations: Observations of the subsurface water conditions were made during drilling operations. Groundwater was encountered in 24 of the borings at depths of 6Ó 0Ñ to 14Ó 6Ñ at the time of drilling. Groundwater was not encountered in any of the other borings at the time of our investigation. The groundwater conditions were very localized. The following table shows the depth of water where encountered: Page 5 Council Packet Page Number 110 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota Boring Water Boring Water Boring Water SB-4 14Ó 0Ñ SB-39 7Ó 0Ñ SB-72 9Ó 6Ñ SB-5 7Ó 6Ñ SB-62 14Ó 0Ñ SB-73 9Ó 6Ñ SB-6 14Ó 6Ñ SB-63 14Ó 0Ñ SB-75 13Ó 10Ñ SB-8 7Ó 0Ñ SB-67 14Ó 0Ñ SB-76 13Ó 3Ñ SB-10 8Ó 0Ñ SB-69 11Ó 6Ñ SB-77 10Ó 6Ñ SB-13 14Ó 0Ñ SB-69 11Ó 6Ñ SB-78 12Ó 0Ñ SB-16 6Ó 0Ñ SB-70 14Ó 0Ñ SB-79 14Ó 0Ñ SB-32 13Ó 6Ñ SB-71 11Ó 6Ñ SB-81 9Ó 6Ñ The water levels were observed over a short period of time. We feel they are an accurate representation of the true groundwater conditions in the sandy soils (SP, SP-SM) on this site due to the high permeability of the native sandy soils. However, in the clayey soils (SC-SM, SC, CL, CL- ML), we feel they are not an accurate representation of the true water levels due to the low permeability of the native clay soils. The water may not have had time to stabilize in the borehole. It should be noted that fluctuations in the level of the groundwater can occur due to variations in rainfall, temperature, spring thaw and other factors not evident at the time of our investigation. Mottled soils were observed in most of the clayey soils. Mottled native soils are a historical indication of a temporarily or seasonally saturated soil condition. Grey soils were also observed. Grey native soils are an indication of a permanently saturated soil condition. Laboratory Testing Moisture Content Tests- Moisture content tests were performed on every split spoon sample in accordance with ASTM method D2216; Standard Test Method for Laboratory Determination of Water (Moisture) Content of Soil and Rock by Mass. Individual test results are shown on the boring logs adjacent to the sample that was tested. Page 6 Council Packet Page Number 111 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota Organic Content Tests- Organic content tests were performed on selected split spoon samples in accordance with ASTM method D2974; Standard Test Method for Moisture, Ash and Organic matter of Peat and Other Organic of Soils. Individual test results are shown on the boring logs adjacent to the sample that was tested. Generally, anything with more than 3% organic by weight is unacceptable for use as roadway embankment fill or subgrade material. C. Engineering Review Discussion: The native soils on most of the site consisting of lean clays (CL), clayey sands (SC), and silty clayey sands (SC-SM) are considered fair to poor material for use as fill. They can be difficult to work with if they become wet prior to being compacted. In addition, the natural moisture contents may be above optimum for compaction. Therefore, they may need to be dried before they can be used as structural fill. Natural moisture contents generally ranged from 11% to 20%. Optimum moisture is estimated to be between 11-14% for these soil types. Therefore, drying will likely be needed unless imported material is used as fill. Organic soils were encountered in borings SB-16, SB-17, SB-78, and SB-80. We recommend any material with more than 3.0% organic material by weight be removed from within the top three feet of finished subgrade and be replaced with inorganic material. In most cases, they appeared to be deeper than 3 feet. He exceptions were borings S-78 and Sb-80, where the organic soils were at 3.0 feet and 23.5 feet, respectively. Based on our observation, it appears the roadway embankment was stable through the entire project area. Unless there is going to be a change in grade of 2 feet or more during construction, or if it is known that there is some issue in the embankment in these areas, it is our opinion that the embankments can remain in place. D. Recommendations The following recommendations are based on our understanding of the proposed project. If our understanding of the project is not accurate or if changes are made to the project scope, please inform us so that our recommendations can be amended, if necessary. We have included recommendations regarding earthwork and construction that may help in cost estimates and aid in Page 7 Council Packet Page Number 112 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota design. We should be allowed to review the proposed construction plans to provide further detailed recommendations, if necessary. Without the opportunity to review the final construction plans, the recommendations made in this report may no longer be valid. Embankment/ Road Fill: The native soils on most of the site consisting of sandy lean clays (CL), clayey sands (SC), and silty clayey sands (SC-SM) are considered fair to poor material for use as fill. They can be difficult to work with if they become wet prior to being compacted. In addition, the natural moisture contents may be above optimum for compaction. Therefore, they may need to be dried before they can be used as structural fill. The on-site soils consisting of fine grained, poorly graded sand (SP), poorly graded sand with silt (SP-SM) and silty sands (SM) are considered excellent material for use as roadway subgrade material. These soils are easy to compact using vibratory compaction equipment near their optimum moisture contents. Highly plastic clays (CH) and silts (ML) are very poor for roadway subgrade. Most of these soils appeared to be deeper than 4 feet. If they are encountered during trench excavation for storm sewer or other utilities, we recommend they only be used as backfill or embankment fill below a depth of four feet from finishes grade. If they are encountered during grading for the subgrade, we recommend they be subcut 4 feet from the proposed finished grade and be replaced with non- expansive and non- frost susceptible material. We recommend that any imported fill and utility trench backfill material consist of mineral soils meeting the requirements specified below. No organic soils, roots, stumps, logs, brush, etc. should be used as structural fill below any utility structure or pavement section. We recommend that all fill and utility trench backfill material be free of soft, wet, or frozen soils, highly expansive soils, rubble, debris, and rocks in excess of 6 inches in diameter. The fill material should be as uniform as possible both in composition and moisture content. Page 8 Council Packet Page Number 113 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota No organic soils with organic content in excess of 3.0% by weight should be used as roadway embankment fill or as subgrade material. Some of the fill was dark brown. It is our opinion that most of the dark silty sand fill will be suitable for re-use. We recommend that all embankment fill material be placed in 12-inch loose lifts and compacted to a minimum of 95% of standard proctor maximum density (ASTM D698). Any fill placed in the top 3 feet of the road subgrade should be compacted to at least 100% of the standard proctor maximum density. All fill material should be compacted at a moisture content within plus or minus 2% of the optimum moisture as determined by a standard proctor. We recommend compaction tests be taken at a minimum rate of one test per two feet of fill per 200 linear feet of roadway subgrade, and aggregate base material. E. Pavement Recommendations The subgrade lean clay (CL) and clayey sand (SC) soils encountered on most of the site are classified as A-6 soils in accordance with the American Association of State Highway Transportation Officials (AASHTO) classification system. A-6 soils are rated poor material for use as roadway subgrade material. In no instance should organic soils be used as parking lot subgrade material. Without benefit of a laboratory R-value determination and based on Mn Dot guidelines, an R-value of 12 can be assumed for these materials. In using the above R-value for bituminous pavement design, it is essential that the subgrade be constructed of uniform soils at a moisture content and density in accordance with Mn Dot specification 2105 and capable of passing a test roll in accordance with Mn Dot specification 2111. The native, undisturbed soils may need preparation (drying and compacting) to pass a proof roll. If the subgrade is not compacted, uniform and capable of passing a test roll, then we recommend the subgrade be scarified and recompacted or subcut and geotextile fabric placed along with select granular material meeting Mn Dot specification 3149. The top of subgrade should be compacted to a minimum of 100% of standard proctor maximum density. The subgrade should be sloped towards the edges to provide drainage. Page 9 Council Packet Page Number 114 of 476 J2, Attachment 3 October 3, 2025 Project 25-287 2026 Street Improvements City Project 25-21 Maplewood, Minnesota F. Closing Our work was performed for geotechnical purposes only and not to document the presence or extent of any contamination on the site. We can note that our crew did not detect any obvious contamination by sight or smell during drilling operations. However, human senses are limited in terms of contamination detection and, therefore, the lack of detection through human sensing does not preclude the possibility of the presence of contamination of the site. This report represents the result of our subsurface investigation and is based on information gathered at specific locations. Subsurface conditions can change a great deal over short horizontal distances. Also, the actual interface between strata will likely be a gradual transition rather than an abrupt change as represented on the boring logs. Geotechnical engineering is based extensively on opinion. Therefore, the data contained in this report should be used as a guide, and we recommend that construction monitoring be performed by a qualified geotechnical engineer or technician. We recommend ITT be retained to perform construction observation and materials testing on this project due to our familiarity with the soils. Any changes in the subsurface conditions from those found during this geotechnical exploration should be brought to the attention of a soils engineer. Page 10 Council Packet Page Number 115 of 476 J2, Attachment 3 APPENDIX 1 BORING LOCATION PLAN Council Packet Page Number 116 of 476 J2, Attachment 3 Exhibit 1 Council Packet Page Number 117 of 476 J2, Attachment 3 Exhibit 2 SB-1 SB-2 SB-3 SB-27 SB-30 SB-19 SB-4 SB-26 SB-5 SB-20 SB-28 SB-37 SB-6 SB-25 SB-29 SB-21 SB-38 SB-36 SB-7 SB-18 SB-24 SB-30 SB-22 SB-8 SB-23 SB-39 SB-9 SB-41 SB-35 SB-31 SB-10 SB-40 SB-34 SB-11 SB-33 SB-32 SB-12 SB-13 SB-15SB-16 SB-17 SB-14 Council Packet Page Number 118 of 476 J2, Attachment 3 SB-54 SB-53 SB-42 SB-51 SB-52 SB-43 SB-44 SB-47 SB-48 SB-46 SB-49 SB-45 SB-50 SB-55 SB-57 SB-58 SB-56 SB-59 SB-60 SB-61 SB-62 SB-63 SB-64 Council Packet Page Number 119 of 476 J2, Attachment 3 SB-69 SB-68 SB-67 SB-66 SB-65 SB-70 Council Packet Page Number 120 of 476 J2, Attachment 3 SB-74 SB-73 SB-79SB-80 SB-81 SB-78 SB-72 SB-77 SB-76 SB-71 SB-75 Council Packet Page Number 121 of 476 J2, Attachment 3 Dpodsfuf!Dvsc boe!Hvuufs Cjuvnjopvt!Spbexbz Cpvmfwbse!Usfft Sbjoxbufs!Hbsefo Sbjoxbufs!Hbsefot Sjhiu.pg.Xbz Sjhiu.pg.Xbz 39!.!41!SPBEXBZ!XJEUI 88 99 CPVMFWBSECPVMFWBSE 71!UZQJDBM!SJHIU.PG.XBZ Opuf;!Tjefxbml!sfrvjsfe!jg!tusffu!bcvut!ps!jt!jo!wbdjojuz!pg!b!tdippm!ps!qbsl Mpdbm!Tusffu Council Packet Page Number 122 of 476 J2, Attachment 3 Council Packet Page Number 123 of 476 J2, Attachment 3 Council Packet Page Number 124 of 476 J2, Attachment 3 Council Packet Page Number 125 of 476 J2, Attachment 3 Council Packet Page Number 126 of 476 J2, Attachment 3 Council Packet Page Number 127 of 476 J2, Attachment 3 Council Packet Page Number 128 of 476 J2, Attachment 3 Council Packet Page Number 129 of 476 J2, Attachment 3 Council Packet Page Number 130 of 476 J2, Attachment 3 Council Packet Page Number 131 of 476 J2, Attachment 3 Council Packet Page Number 132 of 476 J2, Attachment 3 Preliminary Assessment Roll 2026 Maplewood Street Improvements City Project 25-21 Parcel IDSite AddressUnits/Front FootageAssessment Amount 429224100171220 BEAM AVE E13,450.00$ 429224100161210 BEAM AVE E13,450.00$ 429224100091200 BEAM AVE E13,450.00$ 429221300651151 BEAM AVE E13,450.00$ 429224200011174 BEAM AVE E13,450.00$ 429221400701241 BEAM AVE E42729,463.00$ 429221300661161 BEAM AVE E13,450.00$ 429221300671171 BEAM AVE E13,450.00$ 429224200031140 BEAM AVE E26,900.00$ 429224200051166 BEAM AVE E13,450.00$ 429221400061193 BEAM AVE E13,450.00$ 429221400081185 BEAM AVE E13,450.00$ 429224100101190 BEAM AVE E13,450.00$ 429221300412993 CAREY HEIGHTS DR N13,450.00$ 429221100083012 CAREY HEIGHTS DR N13,450.00$ 429221100073008 CAREY HEIGHTS DR N13,450.00$ 429221300122964 CAREY HEIGHTS DR N13,450.00$ 429221300392975 CAREY HEIGHTS DR N13,450.00$ 429221100103024 CAREY HEIGHTS DR N13,450.00$ 429221100113030 CAREY HEIGHTS DR N13,450.00$ 429221100123038 CAREY HEIGHTS DR N13,450.00$ 429221200043013 CAREY HEIGHTS DR N13,450.00$ 429221200953029 CAREY HEIGHTS DR N13,450.00$ 429221200793035 CAREY HEIGHTS DR N13,450.00$ 429221200803043 CAREY HEIGHTS DR N13,450.00$ 429221200813051 CAREY HEIGHTS DR N13,450.00$ 429221100213059 CAREY HEIGHTS DR N13,450.00$ 429221300092984 CAREY HEIGHTS DR N13,450.00$ 429221300102980 CAREY HEIGHTS DR N13,450.00$ 429221300112972 CAREY HEIGHTS DR N13,450.00$ 429221300402989 CAREY HEIGHTS DR N13,450.00$ 429221100093020 CAREY HEIGHTS DR N13,450.00$ 429221100133044 CAREY HEIGHTS DR N13,450.00$ 429221100223065 CAREY HEIGHTS DR N13,450.00$ 429221300072994 CAREY HEIGHTS DR N13,450.00$ 429221300082990 CAREY HEIGHTS DR N13,450.00$ 429221300063000 CAREY HEIGHTS DR N13,450.00$ 429221300422999 CAREY HEIGHTS DR N13,450.00$ 429221200963003 CAREY HEIGHTS DR N13,450.00$ 429221400241237 COUNTRYVIEW CIR E13,450.00$ 429221400291240 COUNTRYVIEW CIR E13,450.00$ 429221400281230 COUNTRYVIEW CIR E UNIT E13,450.00$ Council Packet Page Number 133 of 476 J2, Attachment 3 429221400271220 COUNTRYVIEW CIR E13,450.00$ 429221400261221 COUNTRYVIEW CIR E13,450.00$ 429221400251227 COUNTRYVIEW CIR E13,450.00$ 429221400231247 COUNTRYVIEW CIR E13,450.00$ 429221400341232 DULUTH CT E13,450.00$ 429221400331219 DULUTH CT E13,450.00$ 429221400311233 DULUTH CT E13,450.00$ 429221400351242 DULUTH CT E13,450.00$ 429221400321223 DULUTH CT E13,450.00$ 429221400301243 DULUTH CT E13,450.00$ 429221100313002 DULUTH ST E13,450.00$ 429221400452930 DULUTH ST N13,450.00$ 429221400462922 DULUTH ST N13,450.00$ 429221400482906 DULUTH ST N13,450.00$ 429221400492898 DULUTH ST N13,450.00$ 429221400432946 DULUTH ST N13,450.00$ 429221400472914 DULUTH ST N13,450.00$ 429221400372883 DULUTH ST N13,450.00$ 429221100143053 DULUTH ST N13,450.00$ 429221100153035 DULUTH ST N13,450.00$ 429221100173019 DULUTH ST N13,450.00$ 429221100183011 DULUTH ST N13,450.00$ 429221100202995 DULUTH ST N13,450.00$ 429221100233066 DULUTH ST N13,450.00$ 429221100243058 DULUTH ST N13,450.00$ 429221100303010 DULUTH ST N13,450.00$ 429221100293018 DULUTH ST N13,450.00$ 429221100322994 DULUTH ST N13,450.00$ 429221400502890 DULUTH ST N13,450.00$ 429221400512882 DULUTH ST N13,450.00$ 429221400442938 DULUTH ST N13,450.00$ 429221400362889 DULUTH ST N13,450.00$ 429221100163027 DULUTH ST N13,450.00$ 429221100193003 DULUTH ST N13,450.00$ 429221100253050 DULUTH ST N13,450.00$ 429221100263042 DULUTH ST N13,450.00$ 429221100273034 DULUTH ST N13,450.00$ 429221100283026 DULUTH ST N13,450.00$ 429221400422954 DULUTH ST N13,450.00$ 429221400392978 DULUTH ST N13,450.00$ 429221400412962 DULUTH ST N13,450.00$ 429221400402970 DULUTH ST N13,450.00$ 429221401152986 DULUTH ST N13,450.00$ 429221300512973 EDWARD ST N13,450.00$ 429221300502965 EDWARD ST N13,450.00$ 429221200463057 EDWARD ST N13,450.00$ 429221200443064 EDWARD ST N13,450.00$ Council Packet Page Number 134 of 476 J2, Attachment 3 429221300452978 EDWARD ST N13,450.00$ 429221300312961 EDWARD ST N13,450.00$ 429221300472993 EDWARD ST N13,450.00$ 429221200453067 EDWARD ST N13,450.00$ 429221200433054 EDWARD ST N13,450.00$ 429221300492957 EDWARD ST N13,450.00$ 429221300442990 EDWARD ST N13,450.00$ 429221200533001 EDWARD ST N13,450.00$ 429221200363000 EDWARD ST N13,450.00$ 429221200423044 EDWARD ST N13,450.00$ 429221200373006 EDWARD ST N13,450.00$ 429221200383012 EDWARD ST N13,450.00$ 429221200393020 EDWARD ST N13,450.00$ 429221200403026 EDWARD ST N13,450.00$ 429221200413034 EDWARD ST N13,450.00$ 429221300462968 EDWARD ST N13,450.00$ 429221200493031 EDWARD ST N13,450.00$ 429221200513017 EDWARD ST N13,450.00$ 429221200523011 EDWARD ST N13,450.00$ 429221200483039 EDWARD ST N13,450.00$ 429221200473047 EDWARD ST N13,450.00$ 429221200503025 EDWARD ST N13,450.00$ 429221300171211 FRANK CT E13,450.00$ 429221300191200 FRANK CT E13,450.00$ 429221300201190 FRANK CT E13,450.00$ 429221300161201 FRANK CT E13,450.00$ 429221300181210 FRANK CT E13,450.00$ 429221300372988 FRANK ST N13,450.00$ 429221300152940 FRANK ST N13,450.00$ 429221200753006 FRANK ST N13,450.00$ 429221300142948 FRANK ST N13,450.00$ 429221300252917 FRANK ST N13,450.00$ 429221300302957 FRANK ST N13,450.00$ 429221300322969 FRANK ST N13,450.00$ 429221300382976 FRANK ST N13,450.00$ 429221200763016 FRANK ST N13,450.00$ 429221300132956 FRANK ST N13,450.00$ 429221300212924 FRANK ST N13,450.00$ 429221400122908 FRANK ST N13,450.00$ 429221400132900 FRANK ST N13,450.00$ 429221300232901 FRANK ST N13,450.00$ 429221300242909 FRANK ST N13,450.00$ 429221300262925 FRANK ST N13,450.00$ 429221300292949 FRANK ST N13,450.00$ 429221300362998 FRANK ST N13,450.00$ 429221300222916 FRANK ST N13,450.00$ 429221300282941 FRANK ST N13,450.00$ Council Packet Page Number 135 of 476 J2, Attachment 3 429221300272933 FRANK ST N13,450.00$ 429221300352997 FRANK ST N13,450.00$ 429221200773007 FRANK ST N13,450.00$ 429221300332975 FRANK ST N13,450.00$ 429221300342987 FRANK ST N13,450.00$ 429221300521148 LYDIA AVE E13,450.00$ 429221300531140 LYDIA AVE E13,450.00$ 429221300481131 LYDIA AVE E13,450.00$ 429224100062873 MAPLEWOOD DR N40828,152.00$ 429221400181215 SUMMIT CT E13,450.00$ 429221400221246 SUMMIT CT E13,450.00$ 429221400211236 SUMMIT CT E13,450.00$ 429221400201226 SUMMIT CT E13,450.00$ 429221400191216 SUMMIT CT E13,450.00$ 429221400171225 SUMMIT CT E13,450.00$ 429221400161235 SUMMIT CT E13,450.00$ 429221400151245 SUMMIT CT E13,450.00$ 429221200673082 WALTER ST N13,450.00$ 429221200583097 WALTER ST N13,450.00$ 429221200593087 WALTER ST N13,450.00$ 429221200653096 WALTER ST N13,450.00$ 429221200663088 WALTER ST N13,450.00$ 429221200183013 WALTER ST N13,450.00$ 429221300542982 WALTER ST N13,450.00$ 429221300782983 WALTER ST N13,450.00$ 429221300762975 WALTER ST N13,450.00$ 429221300752971 WALTER ST N13,450.00$ 429221300732959 WALTER ST N13,450.00$ 429221300712945 WALTER ST N13,450.00$ 429221300582958 WALTER ST N13,450.00$ 429221300602946 WALTER ST N13,450.00$ 429221300612940 WALTER ST N13,450.00$ 429221200643104 WALTER ST N26,900.00$ 429221300792987 WALTER ST N13,450.00$ 429221300552976 WALTER ST N13,450.00$ 429221300772979 WALTER ST N13,450.00$ 429221300562970 WALTER ST N13,450.00$ 429221300742965 WALTER ST N13,450.00$ 429221300722953 WALTER ST N13,450.00$ 429221300692927 WALTER ST N13,450.00$ 429221200273012 WALTER ST N13,450.00$ 429221200613071 WALTER ST N13,450.00$ 429221300572964 WALTER ST N13,450.00$ 429221300592952 WALTER ST N13,450.00$ 429221300622932 WALTER ST N13,450.00$ 429221300632926 WALTER ST N13,450.00$ 429221300642920 WALTER ST N13,450.00$ Council Packet Page Number 136 of 476 J2, Attachment 3 429221200243057 WALTER ST N13,450.00$ 429221200683076 WALTER ST N13,450.00$ 429221200713056 WALTER ST N13,450.00$ 429221200603079 WALTER ST N13,450.00$ 429221200233049 WALTER ST N13,450.00$ 429221300812997 WALTER ST N13,450.00$ 429221200173003 WALTER ST N13,450.00$ 429221300802991 WALTER ST N13,450.00$ 429221200263002 WALTER ST N13,450.00$ 429221200293024 WALTER ST N13,450.00$ 429221200313042 WALTER ST N13,450.00$ 429221200283018 WALTER ST N13,450.00$ 429221200303032 WALTER ST N13,450.00$ 429221200323048 WALTER ST N13,450.00$ 429221200203027 WALTER ST N13,450.00$ 429221200223043 WALTER ST N13,450.00$ 429221200253065 WALTER ST N13,450.00$ 429221200193019 WALTER ST N13,450.00$ 429221200213035 WALTER ST N13,450.00$ 429221200553113 WALTER ST N13,450.00$ 429221200563109 WALTER ST N13,450.00$ 429221200573105 WALTER ST N13,450.00$ 429221300702935 WALTER ST N13,450.00$ 429221300822921 WALTER ST N13,450.00$ 329223300712715 CLARENCE ST N16,600.00$ 329223300162725 CLARENCE ST N16,600.00$ 329223300152735 CLARENCE ST N16,600.00$ 329223300762747 CLARENCE ST N16,600.00$ 329223300770 CLARENCE ST N16,600.00$ 329223300702719 CLARENCE ST N16,600.00$ 329223300132746 CLARENCE ST N16,600.00$ 329223300562744 CLARENCE ST N16,600.00$ 329223300572730 CLARENCE ST N16,600.00$ 329223300102720 CLARENCE ST N16,600.00$ 329223300551403 COUNTY ROAD C E16,600.00$ 329223300741411 COUNTY ROAD C E16,600.00$ 329223300532663 ELM ST N16,600.00$ 329223300292675 ELM ST N16,600.00$ 329223300282683 ELM ST N16,600.00$ 329223300252693 ELM ST N16,600.00$ 329223300232676 ELM ST N16,600.00$ 329223300222684 ELM ST N16,600.00$ 329223300612664 ELM ST N16,600.00$ 329223300602674 ELM ST N16,600.00$ 329223300432648 ENGLISH ST N16,600.00$ 329223300422660 ENGLISH ST N16,600.00$ Council Packet Page Number 137 of 476 J2, Attachment 3 329223300412666 ENGLISH ST N16,600.00$ 329223300402676 ENGLISH ST N16,600.00$ 329223300392684 ENGLISH ST N16,600.00$ 429224400122681 ENGLISH ST N16,600.00$ 429224400132675 ENGLISH ST N16,600.00$ 429224400342667 ENGLISH ST N16,600.00$ 429224400332661 ENGLISH ST N16,600.00$ 429224400532655 ENGLISH ST N16,600.00$ 429224400431236 KOHLMAN AVE E16,600.00$ 329223300381308 KOHLMAN AVE E16,600.00$ 329223300371316 KOHLMAN AVE E16,600.00$ 329223300361324 KOHLMAN AVE E16,600.00$ 329223300351336 KOHLMAN AVE E16,600.00$ 329223300340 KOHLMAN AVE E16,600.00$ 329223300331350 KOHLMAN AVE E16,600.00$ 329223300321358 KOHLMAN AVE E16,600.00$ 329223300311366 KOHLMAN AVE E16,600.00$ 329223300301376 KOHLMAN AVE E16,600.00$ 329223300271384 KOHLMAN AVE E16,600.00$ 329223300261390 KOHLMAN AVE E16,600.00$ 329223300211410 KOHLMAN AVE E16,600.00$ 329223400171418 KOHLMAN AVE E16,600.00$ 329223400161426 KOHLMAN AVE E16,600.00$ 329223300731313 KOHLMAN AVE E16,600.00$ 329223300191319 KOHLMAN AVE E16,600.00$ 329223300651373 KOHLMAN AVE E16,600.00$ 329223300091363 KOHLMAN AVE E16,600.00$ 329223300641367 KOHLMAN AVE E16,600.00$ 329223300071381 KOHLMAN AVE E16,600.00$ 329223300591389 KOHLMAN AVE E16,600.00$ 329223300581393 KOHLMAN AVE E16,600.00$ 329223300051403 KOHLMAN AVE E16,600.00$ 329223300041403 KOHLMAN AVE E16,600.00$ 329223300031417 KOHLMAN AVE E16,600.00$ 329223300011423 KOHLMAN AVE E16,600.00$ 329223400181429 KOHLMAN AVE E16,600.00$ 429224400101247 KOHLMAN AVE E16,600.00$ 429224400141284 KOHLMAN AVE E16,600.00$ 429224400111292 KOHLMAN AVE E16,600.00$ 429224400151270 KOHLMAN AVE E16,600.00$ 429224400161264 KOHLMAN AVE E16,600.00$ 429224400171250 KOHLMAN AVE E16,600.00$ 429224400461244 KOHLMAN AVE E16,600.00$ 429224400511287 KOHLMAN AVE E16,600.00$ 429224400491281 KOHLMAN AVE E16,600.00$ 429224400581263 KOHLMAN AVE E16,600.00$ 429224400521293 KOHLMAN AVE E16,600.00$ Council Packet Page Number 138 of 476 J2, Attachment 3 329223300721309 KOHLMAN AVE E16,600.00$ 329223300181325 KOHLMAN AVE E16,600.00$ 429224400051257 KOHLMAN AVE E16,600.00$ 429224400422700 MAPLEWOOD DR N9312,276.00$ 429224400092720 MAPLEWOOD DR N12616,632.00$ 329223200030 MAPLEWOOD DR N24432,208.00$ 1029222200342603 CLARENCE ST N16,600.00$ 1029222200332609 CLARENCE ST N16,600.00$ 1029222200362591 CLARENCE ST N16,600.00$ 1029222200382571 CLARENCE ST N16,600.00$ 1029222200372581 CLARENCE ST N16,600.00$ 1029222200462535 CLARENCE ST N16,600.00$ 1029222200082604 CLARENCE ST N16,600.00$ 1029222200092596 CLARENCE ST N16,600.00$ 1029222200352595 CLARENCE ST N16,600.00$ 1029222200052626 CLARENCE ST N16,600.00$ 1029222200102580 CLARENCE ST N16,600.00$ 1029222200112576 CLARENCE ST N16,600.00$ 1029222200072608 CLARENCE ST N16,600.00$ 1029222200432523 CLARENCE ST N16,600.00$ 1029222300062494 CLARENCE ST N16,600.00$ 1029222200322615 CLARENCE ST N16,600.00$ 1029222200122570 CLARENCE ST N16,600.00$ 1029222200062616 CLARENCE ST N16,600.00$ 1029222200132560 CLARENCE ST N16,600.00$ 1029222200142550 CLARENCE ST N16,600.00$ 1029222200162530 CLARENCE ST N16,600.00$ 1029222300032520 CLARENCE ST N16,600.00$ 1029222200152540 CLARENCE ST N16,600.00$ 1029222300042512 CLARENCE ST N16,600.00$ 1029222300082470 CLARENCE ST N16,600.00$ 1029222300072486 CLARENCE ST N16,600.00$ 1029222300052500 CLARENCE ST N16,600.00$ 1029222200402559 CLARENCE ST N16,600.00$ 1029222200452539 CLARENCE ST N16,600.00$ 1029222200392567 CLARENCE ST N16,600.00$ 1029222200422529 CLARENCE ST N16,600.00$ 1029222200041374 COUNTY ROAD C E16,600.00$ 1029222200171366 COUNTY ROAD C E16,600.00$ 1029222200191356 COUNTY ROAD C E16,600.00$ 1029222400242510 BARCLAY ST N16,600.00$ 1029222400252516 BARCLAY ST N16,600.00$ 1029222400732517 BARCLAY ST N16,600.00$ 1029222400692511 BARCLAY ST N16,600.00$ 1029222400231479 BROOKS AVE E16,600.00$ Council Packet Page Number 139 of 476 J2, Attachment 3 1029222400041513 BROOKS AVE E16,600.00$ 1029222400051501 BROOKS AVE E16,600.00$ 1029222400111518 BROOKS AVE E16,600.00$ 1029222400751510 BROOKS AVE E16,600.00$ 1029222400061499 BROOKS AVE E16,600.00$ 1029222400091490 BROOKS AVE E16,600.00$ 1029222400081480 BROOKS AVE E16,600.00$ 1029222400121522 BROOKS AVE E0.53,300.00$ 1029222400761514 BROOKS AVE E16,600.00$ 1029222400032501 HAZELWOOD ST N16,600.00$ 329224400221741 COUNTY ROAD C E16,600.00$ 329224400472745 GEM ST N16,600.00$ 329224400022752 GEM ST N16,600.00$ 329224400322665 GEM ST N16,600.00$ 329224400332655 GEM ST N16,600.00$ 329224400312675 GEM ST N16,600.00$ 329224400032740 GEM ST N16,600.00$ 329224400072720 GEM ST N16,600.00$ 329224400112714 GEM ST N16,600.00$ 329224400502749 GEM ST N16,600.00$ 329224400262723 GEM ST N16,600.00$ 329224400342647 GEM ST N16,600.00$ 329224400172664 GEM ST N16,600.00$ 329224400302687 GEM ST N16,600.00$ 329224400252733 GEM ST N16,600.00$ 329224400062728 GEM ST N16,600.00$ 329224400272711 GEM ST N16,600.00$ 329224400292691 GEM ST N16,600.00$ 329224400102716 GEM ST N16,600.00$ 329224400282699 GEM ST N16,600.00$ 329224400152684 GEM ST N16,600.00$ 329224400492755 GEM ST N16,600.00$ 329224400132696 GEM ST N16,600.00$ 329224400142688 GEM ST N16,600.00$ 329224400162680 GEM ST N16,600.00$ 229223400181896 KOHLMAN AVE E16,600.00$ 229223300231892 KOHLMAN AVE E16,600.00$ 229223300241884 KOHLMAN AVE E16,600.00$ 229223300251874 KOHLMAN AVE E16,600.00$ 229223300261862 KOHLMAN AVE E16,600.00$ 229223300361839 KOHLMAN AVE E16,600.00$ 229223300371847 KOHLMAN AVE E16,600.00$ 229223300071861 KOHLMAN AVE E16,600.00$ 229223300061873 KOHLMAN AVE E16,600.00$ 229223300031885 KOHLMAN AVE E16,600.00$ Council Packet Page Number 140 of 476 J2, Attachment 3 229223300021893 KOHLMAN AVE E16,600.00$ 229223300272684 VAN DYKE ST N16,600.00$ 229223300302654 VAN DYKE ST N16,600.00$ 229223300282676 VAN DYKE ST N16,600.00$ 229223300292666 VAN DYKE ST N16,600.00$ 229223300352647 VAN DYKE ST N16,600.00$ 229223300202655 VAN DYKE ST N16,600.00$ 229223400242691 WHITE BEAR AVE N31241,184.00$ υ ЊͲВЍЏͲЎЏЎ͵ЉЉ Full Reconstruction, Residential Single Family$ /Unit6,600.00 Full Reconstruction, Commercial$ /Front-Foot132.00 Pavement Rehabilitation, Residential Single Family$ /Unit3,450.00 Pavement Rehabilitation, Commercial$ /Front-Foot69.00 Council Packet Page Number 141 of 476 J2, Attachment 3 Council Packet Page Number 142 of 476 J2, Attachment 3 Council Packet Page Number 143 of 476 J2, Attachment 3 Council Packet Page Number 144 of 476 J2, Attachment 3 Council Packet Page Number 145 of 476 J2, Attachment 3 Council Packet Page Number 146 of 476 J2, Attachment 3 Council Packet Page Number 147 of 476 J2, Attachment 3 Council Packet Page Number 148 of 476 J2, Attachment 3 Council Packet Page Number 149 of 476 J2, Attachment 3 Council Packet Page Number 150 of 476 J2, Attachment 3 Council Packet Page Number 151 of 476 J2, Attachment 3 Council Packet Page Number 152 of 476 J2, Attachment 4 A PROPOSAL FOR 2026Maplewood Street Improvements FOR THE CITY OF MAPLEWOOD Council Packet Page Number 153 of 476 J2, Attachment 4 January 1, 2026 Mr. Tyler Strong, PE Civil Engineer I City of Maplewood 1902 County Road B East Maplewood, MN 55109 Re:Proposal to Provide Professional EngineeringServices forthe 2026Maplewood Street Improvements Dear Mr. Strong: WSB is pleased to submit the following proposal to provide professional engineering services for the 2026Maplewood Street Improvements. We have assembled a multidisciplinary team that can provide the City of Maplewoodwith the necessary professional services to deliver a successful reconstruction project. WSBÓs Approach | Our approach will deliver a project that conforms to the City of MaplewoodÓs construction standards. The City will have access to an experienced team of WSB staff that have successfully delivered similar projects for surrounding communities throughout the Minneapolis and St. Paul metro area.Our proposed design team will partner with the City of Maplewoodto identify potential design challenges, discuss possible alternatives, and then communicate with City staff to develop solutions that all project stakeholders can stand behind. Experienced Team | Dustin Tipp andKatie Koscielakhave served as primarydesign engineers and project managers for numerous urban infrastructure improvement projects. In addition to their comprehensive understanding of the technical aspects of the project, the team also understands the need to engage stakeholders early and often during design to ensure successful delivery during construction. Enclosed you will find a proposal to complete the tasks associated with the 2026Maplewood Street Improvement Project. The proposal includes an hourly breakdown to complete each of the tasks associated with the project. The terms of this proposal shall remain valid for the duration of the project. We are excited about the prospect of continuing a lasting, collaborative, and trusting relationship with the City of Maplewood.If you have questions about the content of this proposal, please feel free to reach out at dtipp@wsbeng.comor 612.240.3225. Sincerely, WSB Dustin Tipp, PEMorgan Dawley, PEDuuuuuuustin Tipp,PPPPPPPEEEEE Senior Project ManagerSenior Director of Municipal Services Attachment -Project Budget Worksheets 701 XENIA AVENUE S | SUITE 300 | MINNEAPOLIS, MN | 55416 | 763.541.4800 | WSBENG.COM 2026 Maplewood Street Improvements 1 Council Packet Page Number 154 of 476 J2, Attachment 4 PROJECT UNDERSTANDING The City ofMaplewoodis requesting proposals for engineering design services related to the 2026 Maplewood StreetImprovements. The proposed project consists of reconstructing the following roadways: Kohlman Avenue -from Maplewood Drive East to Finch Road Clarence Street -from Kohlman Avenue English Street Îfrom Kohlman Avenue to CSAH C Elm Street Îfrom Kohlman Avenue to CSAH C Fitch Road Îfrom Kohlman Avenue Kohlman Avenue, Elm Street, and English Streetserve as the primary access points to single-family residences within the project area.The roadways existas local non-MSA, two-lane,undivided urban section roadwayswith on-street parking. Theexistingroad sections vary in width,complete with bituminous pavement and no concrete curband gutter. The proposed project includes reconstructing the roadway sections to meet the City of MaplewoodÓs design standards. The improvements includeremoval of the existing roadways, subgradecorrections, aggregate base, bituminous pavement, concrete curb & gutter, replacement of outdated watermain appurtenances on the existing ductile iron distribution system, sanitary sewer spot repairs,and the addition of storm sewer, conforming to City and Watershed design requirements, and restoration.Adjustments to roadway profiles, alignments and widths are anticipated to bring the existing roadways into conformance with the CityÓs current design standards. The proposed scope of services will also includedevelopment of constructiondocuments for the above referenced project areas, including final plans, estimated quantitiesandcost estimates for each street,and supplementalproject specifications, as necessary.The construction documents prepared by WSB will be incorporated into the CityÓs plans and specifications for the larger project area.WSB will also assist in the wetland delineations, boundary approvals and reporting for the areas identified in the Request for Proposals.It is WSBÓs understanding that the City of Maplewood will be responsible for the feasibilityreport, identifying project funding,public engagement, City Council presentations, preparation ofoverallproject specificationsand quantities, preparation of overall project construction plans for the additional project areas, and bidding services. WSB recently completed the topographic survey for the project area and has generated the existing condition base files to be used in design. A Gopher State One Call was also submitted to obtain private utility information within the project area. With the work completed to date for the project, WSB would be able to start design immediately, if selected. Through an investigation of the scope of work, discussionswith City Staff, and conducting asite visit, WSB is familiar with the vision, expectations, and goals for this project. Based on our extensive expertise with similar projects and our project understanding, we are confident about successfully and professionally undertaking this project. PROJECT APPROACH/SCOPE OF SERVICES Our team possesses both the experience and expertise necessary to complete this project's design and construction seamlessly.WSB takes pride in delivering a high-quality design that reduces risk during construction, enabling the project to be completedon time and on budget.WSB utilizes the latest technology to complete designs cost-effectivelyand has a robust internal review process that involves a thorough review of construction documents at the60%, 90% and 100% levels. These reviews involve examining the construction documents from a contractorÓs perspective to identify project-related risks, allowing solutions tobe developed and incorporated into the construction documents. Thecombination of our knowledge of the design process with our construction expertise will allow us to deliver a successful project to the City of Maplewood. The following approach outlines the professional services required to fulfill the scope of work requested. 2026 Maplewood Street Improvements 2 Council Packet Page Number 155 of 476 J2, Attachment 4 Task 1|Project Management WSB will provide project management which includes planning and coordination of all work tasks, establishing and monitoring project budgets, meetings, correspondence with the City/other agencies, coordination with adjacent projects and resource allocation to keep the project within budget and on schedule. The project management team will provide technical direction and keep the City informed of the project progress. Administrative duties will include general correspondence, preparation of project documents and monthly invoicing. Task 2|Plans/Specifications WSB will provide design services for the 2026Maplewood Street Improvements.The project plans, estimated quantities, cost estimatesand supplemental specifications developed will adhere to the City of MaplewoodÓsDesign Standards.This task will include: Subtask: 2.1: DataCollection Review of City as-builts, utility condition assessments, and all other data collected as part of the CityÓs feasibility study. Existing public and private utilities. Review of Geotechnical Report, if available. Subtask 2.2& 2.3:FinalDesignand Drawings and Layouts WSB will prepare plans and specifications in collaboration with City Staff.WSB produced specifications shall supplement the CityÓs standard construction documents. Drawing preparation utilizing AutoCAD Civil 3D software. Alignments and ProfilesÎan alignment and profile will be prepared for each roadway, to correspond with the proposed roadway width. Alignmentsand profilesare anticipated to change with the reconstruction of each roadway. Cross Sections -WSB will also work collaboratively with City Staff to develop cross sections for the project. Storm Drainage Design -Storm sewer collection and conveyance system improvements will be designed to accommodate the proposed surface improvements. Existing storm sewer infrastructure will be utilized where feasible. Above-groundstormwater management is not anticipated withthe project. We understand coordination and project review with the Watershed will be required. It is our understanding thatthe City will obtain the necessary permits. Sanitary Sewer -Sanitary sewer has been evaluated by City Staff, and it has been determined that spot repairs are necessary.Replacement of all manhole rings and castings is anticipated and will adhere to the CityÓs design standards. Watermain Îwatermain has been evaluated by St. Paul Regional Water and it has been determined that the existing ductile iron pipe will remain in place. Outdated hydrants, gate valves, valve boxes will be replaced. Sacrificial anodes will be installed to cathodically protect the existing ductile iron watermain. The City will handle coordination with St. Paul Regional Water. Traffic Control-Traffic control and construction phasing plans will be developed in coordination with City staffand will considerthe access needs of properties located within the project area. Erosion control and turf establishment Îerosion control and turf establishment plans will be developed to ensure compliance with the Stormwater Pollution Prevention Plan andNPDES permitting requirements. Turf establishment will conform tothe CityÓs standards. Project plans will contain the following sheets: o Removals o Traffic control o Erosion and turf establishment 2026 Maplewood Street Improvements 3 Council Packet Page Number 156 of 476 J2, Attachment 4 o Plan and profile sheets which include street construction, storm sewer, watermain and sanitary sewer. o Cross sections. o Intersection details. Estimated Quantitiesand Cost Estimates-WSB will work with City Staff to produce separate quantity estimatesand cost estimatesfor each street within the project area. WSB will provide design support during construction to answer questions from Contractors and City staff, pertainingtothe design, quantities and specifications for the project area. Deliverables: 90 percent Submittal: Draftplan set for review and commentby City Staff. 100 percent Submittal:Final plan set, and supplemental specifications will be provided electronically in both drafting file and PDFin fulland half sizes. Subtask 2.4: PrepareContract Documents/Specifications WSB will work with City Staff to assist in preparation ofcontract documents in accordance with City Standards. Subtask 2.5: Obtainall Required Permits WSB will assist with materials for all necessary permits. It is our understanding that theCity of Maplewood will be responsible for obtaining all permits and permit fees associated with the project. Subtask2.6: Constructability Review WSB construction staff will perform a detailedinternalreview of the plans and specifications to identify any potential constructability issues. Subtask 2.7: Prepare Opinion of Probable Construction Costs WSB will prepare an Opinion of Probable Cost at the 90% and 100% plan submittals for the project. Subtask 2.8: UtilityCoordination WSB will assist the City in performingthe following tasksfor the project area,based on the information from the Gopher State One Call (GSOC): Develop utility contact list with owner information Contact identified utility companies to obtain mapping, along with establishing a project specific contact. Develop AutoCAD file with existing utility locations to be used in design and preparation of preliminary drawings. Identify utility conflicts and notify affected owners Attend utility coordination meeting Request and review utility relocation plans from affected owners. Assist City with any other required actions to ensure applicable MN State Statues are followed for private utility relocations. Task 3|Wetland Delineations WSB will perform the wetland delineations and reporting the areas outlined in the Request for Proposals. The work will include the following: Subtask 3.1: Wetland Delineations All wetlands and surface water features will be delineated and characterized within the defined review limits. Prior to the site visit, WSB will review the Ramsey County Soil Survey, MnDNR Public Waters map, City/Ramsey County Wetland Inventories, MnDNR National Wetland Inventory, FEMA flood zone map, contours, and historic aerial photos for the project area. A Level 2 (onsite) wetland investigation will be completed within the designated review limits. The wetland delineation will be completed in conformance with the US Army Corps of Engineers 2026 Maplewood Street Improvements 4 Council Packet Page Number 157 of 476 J2, Attachment 4 (USACE) Wetlands Delineation Manual (US Army Corps of Engineers, 1987) and the Northcentral and Northeast Regional Supplement. The wetland boundaries will be surveyed using a sub-meter accuracy GPS unit. Fluorescent pink pin flags may be used to temporarily mark the boundary of any wetlands and surface water features, until approval is received. Subtask 3.2: Wetland Delineation Report and Boundary/Type Approval The field wetland delineation data will be compiled into a wetland delineation report. This report will be submitted to the Ramsey-Washington Metro Watershed District, the Local Government Unit (LGU) for the WCA. The report will also be submitted to the USACE for their review. The wetland delineation report will include a figure depicting the locations of all delineated wetlands, as well as characterization & classification of wetland types. The location of roadside ditches, watercourses, stormwater ponds, and/or County ditch systems will also be depicted, if applicable. Wetland boundary and type concurrence will be requested from the LGU. A final, approved wetland boundary electronic (CAD, GIS) file will be delivered to the client following LGU and USACE approval. This task includes a return trip to the site to meet with the LGU to verify the delineated wetland boundaries. If needed by the city, an Approved Jurisdictional Determination (AJD) can be requested from the USACE to understand which aquatic resources they have jurisdiction. For this project, an AJD is probably not necessary. Task 3 Assumptions: This scope includes preparation of a Joint Application for wetland permitting services, as an option, if needed. Any wetland mitigation bank credits required would be the responsibility of the Cityto purchase. WSB can facilitate the wetland mitigation transaction process. The City is responsible for paying the MPARS application fee. Any historic information about constructed stormwater ponds can be provided to WSB for historical context and understanding of past wetland disturbance or incidental creation of wetland. WSB can proceed with the wetland delineation services within the growing season, typically thth April 20through October 15. Site access permission will be granted. The process to obtain the wetland boundary/type decision takes approximately 60-days. The wetland delineation report submittal includes time for 1-round of revisions per LGU/USACE comments. No onsite surveys for protected species or habitat assessments are included. SCHEDULE It is understood that the City desires the project to becompleted during the 2026summer construction season. To meet the desired project completion date, we propose the following schedule: Award Consultant Contract...................................................................................................January 5, 2026 Kick off meeting with City..........................................................................................................January 2026 Data collection...........................................................................................................................January 2026 90% plan submittal.................................................................................................................March 13, 2026 Receive comments from City.................................................................................................March 20, 2026 100% plan submittal...............................................................................................................March 24, 2026 Bid Opening.....................................................................................................................Determined by City WSB will begin work immediately upon receiving your Notice to Proceed. 2026 Maplewood Street Improvements 5 Council Packet Page Number 158 of 476 J2, Attachment 4 PROPOSED FEE WSB will provide the services as outlined in Project Approach / Scope of Services. Our budget was developed based on our understanding of the scope and experience with similar types ofprojects. The following is a summary of the costs for each phase of the project: TaskDescriptionFee 1Project Management$15,712 2Plans/Specifications$155,156 3Wetland Delineations$10,365 Total$181,233 We propose to conduct the work listed above on an hourly not-to-exceed fee of $181,233. If additional work outside of the above-described scope is determined necessary, wewill proceed only after City approval. WSB will work with the City to define the scope of any additional work for City approval. ACCEPTANCE This letter represents our entire understanding of the project scope. All work under this letter proposal will be governed by the Professional Services Agreement entered into between the City of Maplewoodand WSB on June 1, 2025. If the scope and fee appear to be appropriate, please sign on the space provided and return one copy to our office. We are available to begin work once we receive signed authorization. ACCEPTED BY: CITYOF MAPLEWOOD, MN I hereby authorize WSB to proceed with the above-referenced work under the terms and conditions of the Professional Services Agreement entered into between the City of Maplewoodand WSB on June 1, 2025. Signature: Name/Title: Date: 2026 Maplewood Street Improvements 6 Council Packet Page Number 159 of 476 J2, Attachment 4 $ $ 8$ 40$ 24$ 64$ 16$ 10$ 44$ 36$ 68$ 400$ 260$ 776 Total Hours Total Costs 826$ Subtotal =Subtotal =Subtotal = Anne Sill Administrative $ $ 1212$ Kyle Paul Project Manager Construction $ 93.00$ 744.00 Senior Scientist Environmental $ 227.00$ 2,724.00 3627532$ Scientist Tim PacquinShawn Williams $ 183.00$ 915.00 Environmental Tim Cartony Technician Engineering$ 150.00$ 9,450.00 Laura Water Rescorla Engineer Resources $ 238.00$ 33,320.00 Kate Engineer Graduate Achenbach $ 213.00$ 37,914.00 Katie Project Engineer Koscielak $ 153.00$ 40,086.00 253.00 124116262178140635128908 Project 31,372.00 Manager $ 213.00$ 24,708.00 Dustin Tipp Total Hours Hourly Cost Labor Costs Description Managerment ctability Reviewtimates4121612 ng46oordination44 management40 d Delineations Specifications ng and Boundary Approval esign 6090110140d Delineations ollection88 gs and Layouts120140 gs1248 ct Documents/Specifications4644 Council Packet Page Number 160 of 476 J2, Attachment 5 Council Street January 26, 2026 Improvements City Project 25-21 Presented to Maplewood City 2026 Maplewood Council Packet Page Number 161 of 476 J2, Attachment 5 VanDyke Street Why These Streets? Average PCI Rating Ï37/100 (4.4 miles inlength)Lack of Storm Sewer in County C AreaHigh-Groundwater in Walter-Beam AreaCounty Road C area lacks concrete curb andgutterSpot replacement of existing concrete curband gutter in Walter-Beam Area ¤¤¤¤¤ Poor pavement conditionDrainage IssuesConcrete curb and gutter ¤¤¤ Council Packet Page Number 162 of 476 J2, Attachment 5 Improvement Type Council Packet Page Number 163 of 476 J2, Attachment 5 Reclamation on Cope Avenue (2022) n o i t a t i l i b a Project Scope ÏWalter-Beam Area h e R t n e m e v Pavement reclamationNew asphalt pavementSpot replacement of concrete curbRepairs to storm sewer systemAddition of drain-tile and boulevarddrainsReplace sanitary sewer castingsRestore driveways and boulevards a P¤¤¤¤¤¤¤ Council Packet Page Number 164 of 476 J2, Attachment 5 Water main replacement Cope Avenue (2022) n o i t c u Project Scope ÏCounty Road C Area r t s n o c e R l l Living Streets Policy guides designRemove and replace pavement, aggregate base and poor subgrade soilsNew asphalt pavementNew concrete curb and gutterExpand storm sewer system and add water-quality featuresRepairs to sanitary sewer systemRestore driveways and boulevards u F¤¤¤¤¤¤¤ Council Packet Page Number 165 of 476 J2, Attachment 5 Resident Communication Project Location Map, FAQ Brochure, Assessment InformationDesign updates based on community feedbackAnswer questions prior to public hearing ¤¤¤ Project Kickoff LetterÏJuly 2025Informational Packet ÏDecember 2025Neighborhood Meeting #1 ÏDecember 17 & 18,2025Released Online Mapping Tool for Resident Feedback -December2025Neighborhood Meeting #2 ÏFebruary 2026 ¤¤¤¤¤ Council Packet Page Number 166 of 476 J2, Attachment 5 0 0 8 , 4 7 8 , 1 1 $ - t s o C t c e j o r P d e t a m i t s E G.O. Improvement Bonds -$4,614,600Street Revitalization Fund -$1,169,200Environmental Utility Fund -$2,423,200Sanitary Sewer Fund -$668,300W.A.C. Fund -$162,700St. Paul Regional Water Services -$890,200Special Benefit Assessments -$1,946,600 ¤¤¤¤¤¤¤ Project Funding Council Packet Page Number 167 of 476 J2, Attachment 5 What is a Special Assessment? Funding source utilized to finance a portion of public improvementsMaximum rates are set by the City Council on a yearly basisIndependent appraisal firm hired to determine benefit received by propertiesPer Minnesota State Statute, assessments cannot be more than the direct benefit to the property ¤¤¤¤ Council Packet Page Number 168 of 476 J2, Attachment 5 Special Assessment Assessment amountPayment optionsDeferral optionsRight to object ¤¤¤¤ Residents will be mailed an official assessment noticeNeighborhood meeting in the summer of 2026 to cover assessments ¤¤ Hearing ÏSeptember 2026Prior to the Hearing ¤¤ Council Packet Page Number 169 of 476 J2, Attachment 5 Tentative Project Schedule Residents provide input on proposed improvementsCouncil votes after public hearing ¤¤ Council Receives Feasibility Study ÏJanuary 26, 2026Neighborhood Meeting #2 ÏFebruary 2026Public HearingÏFebruary 23, 2026Award of Contract ÏApril 2026 Neighborhood Meeting #3 ÏMay 2026Construction Timeline ÏJune to November 2026Assessment HearingÏSeptember 2026 ¤¤¤¤¤¤¤ Council Packet Page Number 170 of 476 J2, Attachment 5 . Recommendation Approve Resolution Accepting Feasibility Study, Authorize Preparation of Plans and Specifications, and Calling for a Public Hearing for 2026 Maplewood Street Improvements, City Project 25-21.Approve Professional Design Services Agreement with WSB Consulting and direct the Mayor and City Manager to sign the agreement. Minor revisions as approved by the City Attorney are authorized as needed ¤¤ Council Packet Page Number 171 of 476 J3 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manage r REPORT FROM: Michael Sable, City Manager PRESENTER: Michael Sable, City Manager AGENDA ITEM: 2026 Legislative Program Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Summary: The City of Maplewood is seeking legislative changes to Minnesota Statutes to further its community goals. The 2026 Legislative Session begins in February. Recommended Action: Motion to adopt the 2026 Legislative Program. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: SafetyFocus Area: Sustainability Focus Area: Maintain strong financial health and stability Development Focus Area: Background: Attached is the City of Maplewood 2025 Legislative Program, which highlights the CityÓs legislative policies and priorities for consideration. The legislative policies contain references to the League of Minnesota Cities and Metro Cities legislative platforms. Attachments: 1.2025 Legislative Program 2.League of Minnesota Cities Legislative Policies 3.Metro Cities Legislative Policies. Council Packet Page Number 172 of 476 J3, Attachment 1 Council Packet Page Number 173 of 476 J3, Attachment 1 Council Packet Page Number 174 of 476 J3, Attachment 2 MFBHVF!PG!NJOOFTPUB!DJUJFT Djuz!Qpmjdjft Gps!Mfhjtmbujwf!boe! Benjojtusbujwf!Bdujpo Bepqufe!Opwfncfs!-!31 gps!bmm!Njooftpub!djujft po!uif!Mfbhvft!xfctjuf!bu! Council Packet Page Number 175 of 476 J3, Attachment 2 Dpqzsjhiu!ª!31Mfbhvf!pg!Njooftpub!Djujft/ Bmm!sjhiut!sftfswfe/ Mfbhvf!pg!Njooftpub!Djujft 256!Vojwfstjuz!Bwfovf!Xftu!!!!Tu/!Qbvm-!NO!!66214.3155 )762*392.2311!!!!)911*!:36.2233!!!!Gby;!)762*!392.23:: UEE;!)762*!392.23:1!!!!xxx/mnd/psh Council Packet Page Number 176 of 476 J3, Attachment 2 Mfbhvf!pg! MFBHVF!PG!NJOOFTPUB!DJUJFT Njooftpub!Djujft JOUFSHPWFSONFOUBM!SFMBUJPOT!TUBGG! NjooftpubDjujft Njooftpub`Djujft NjooftpubDjujft! boz!rvftujpot-!dpodfsot-!ps!tvhhftujpot!sfhbsejoh!mfhjtmbujwf!jttvft/ $NoDjujft Cfui!Kpiotupo Dsbjh!Kpiotpo Boof!Gjoo! 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Sftpvsdft Nfncfs!Sfmbujpot Qfotjpot!'!Sfujsfnfou MND/PSH Council Packet Page Number 177 of 476 J3, Attachment 2 Table of Contents COVER ...........................................................................................................................................1 Second Page ....................................................................................................................................2 IGR Staff Page................................................................................................................................3 COMMITTEE MEMBERSHIP ...................................................................................................9 LMC POLICY DEVELOPMENT PROCESS ..........................................................................14 PURPOSE, PROCESS AND PRINCIPLES OF CITY POLICIES ........................................15 IMPROVING SERVICE DELIVERY ......................................................................................16 SD- 1. Local Control ....................................................................................................................16 SD- 2. Unfunded Mandates .........................................................................................................16 SD- 3. Local Approval of Special Laws ......................................................................................16 SD- 4. State Government Shutdowns .........................................................................................17 SD- 5. Duration of Conservation Easements .............................................................................18 SD- 6. Racial Equity in Minnesota .............................................................................................18 SD- 7. Immigration Reform ........................................................................................................20 SD- 8. Responsibility for Locating Private Underground Facilities........................................20 SD- 9. Utility Relocation Under Design-Build Road Construction .........................................21 SD- 10. National Fire Protection Association (NFPA) Standards ...........................................21 SD- 11. Fire Mutual Aid ..............................................................................................................22 SD- 12. Clarification of Joint Powers Relationships with Federally Recognized Indian Tribes .............................................................................................................................22 SD- 13. Ambulance Service Costs and Liability ........................................................................23 SD- 14. Emergency Medical Services .........................................................................................24 SD- 15. Fees for Service ...............................................................................................................24 SD- 16. Improving and Increasing Access to Information .......................................................25 SD- 17. Administrative Fines for Code Violations ....................................................................26 SD- 18. Contracting and Purchasing ..........................................................................................26 SD- 19. City Enterprise Operations ...........................................................................................27 SD- 20. Preservation of Order in City Council Meetings .........................................................27 SD- 21. Constitutional Amendments ..........................................................................................27 SD- 22. Initiative and Referendum .............................................................................................28 SD- 23. Civil Liability of Local Governments ...........................................................................28 SD- 24. Private Property Rights and Takings ...........................................................................29 SD- 25. Organized Solid Waste Collection ................................................................................30 SD- 26. Private Well Drilling ......................................................................................................31 SD- 27. Sustainable Development ...............................................................................................31 SD- 28. Construction Codes ........................................................................................................33 SD- 29. Building Officials ............................................................................................................33 SD- 30. Disability Access Requirements ....................................................................................34 SD- 31. Assaults on Code Enforcement Officials ......................................................................35 SD- 32. Restrictions on Possession of Firearms.........................................................................36 SD- 33. Public Safety Communications .....................................................................................36 SD- 34. Collateral Consequences and Expungements ..............................................................37 SD- 35. Criminal and Juvenile Justice Information .................................................................38 SD- 36. Pawn Shop Regulation and Use of the Automated Property System (APS) .............39 Council Packet Page Number 178 of 476 J3, Attachment 2 SD- 37. City Costs for Enforcing State and Local Laws ..........................................................40 SD- 38. Compensation and Reimbursement for Public Safety Services .................................40 SD- 39. Administrative Traffic Citations ...................................................................................41 SD- 40. Juveniles in Municipal Jails ...........................................................................................42 SD- 41. Justice System Funding ..................................................................................................42 st SD- 42. 21Century Policing ......................................................................................................43 SD- 43. Post-Incarceration Living Facilities ..............................................................................44 SD- 44. Cybersecurity ..................................................................................................................44 SD- 45. Legalization of Fireworks ..............................................................................................45 SD- 46. Traffic Enforcement Cameras.......................................................................................46 SD- 47. Operation of Motorized Foot Scooters .........................................................................46 SD-48. Operation of Electric Assisted Bicycles .........................................................................47 SD- 49. Copper Wire Theft Prevention......................................................................................47 SD- 50. Drug Courts ....................................................................................................................48 SD- 51. Drug Paraphernalia........................................................................................................48 SD- 52. Regulation of Massage Therapists ................................................................................48 SD-53. Regulation of Adult-Use Cannabis and Cannabinoid Products..................................49 SD- 54. Lawful Gambling and Local Control ...........................................................................50 SD- 55. Liquor Liability Insurance Limits ................................................................................50 SD- 56. On-Sale Liquor or Wine Licenses .................................................................................51 SD- 57. Liquor Licensing of Non-Contiguous Spaces ...............................................................51 SD- 58. Wine and Off-Sale Licenses ...........................................................................................51 SD- 59. Youth Access to Alcohol and Tobacco ..........................................................................52 SD- 60. Consumer Small Loans ..................................................................................................52 SD- 61. Regulation of Mobile Businesses ...................................................................................53 SD- 62. Regulation of Party Buses and Boats-for-Hire ............................................................53 SD- 63. Environmental Protection..............................................................................................54 SD- 64. Impaired Waters .............................................................................................................56 SD- 65. Municipal Public Water Supplies .................................................................................57 SD- 66. Municipal Electric Utilities ............................................................................................58 SD- 67. State Support for Municipal Energy Policy Goals ......................................................59 SD- 68. Urban Forest Management Funding ............................................................................60 SD- 69. City Pesticide Application Authority ............................................................................61 SD- 70. Election Issues .................................................................................................................61 SD- 71. Administering Absentee Balloting and Early Voting ..................................................61 SD- 72. Ranked Choice Voting ...................................................................................................63 SD- 73. Election Judge Recruitment, and Retention, ...............................................................63 SD-74. Mail Balloting...................................................................................................................65 SD-75. Modernizing Charter Amendment Process ..................................................................65 SD-76. Presidential Nomination Primary ..................................................................................65 SD-77. Health Care Facility Voting ............................................................................................66 SD-78. Voters Experiencing Homelessness ................................................................................66 SD-79. Voter Registration ...........................................................................................................67 SD-80. Election Judge Payment Requirement Exception ........................................................68 IMPROVING LOCAL ECONOMIES ......................................................................................69 LE- 1. Growth Management and Annexation ...........................................................................69 Council Packet Page Number 179 of 476 J3, Attachment 2 LE- 2. Wildlife Management Areas ............................................................................................70 LE- 3. Official State Mapping Responsibility............................................................................70 LE- 4. Electric Service Extension ...............................................................................................71 LE- 5. Statutory Approval Timelines .........................................................................................71 LE- 6. Maintenance of Retaining Walls Adjacent to Public Rights of Way ...........................73 LE- 7. Development Disputes ......................................................................................................73 LE- 8. Foreclosure and Neighborhood Stabilization ................................................................73 LE- 9. Housing Policy ..................................................................................................................76 LE- 10. Resources for Affordable Housing................................................................................78 LE- 11. Greater Minnesota Housing ..........................................................................................80 LE- 12. Energy Efficiency Improvement Requirements for Housing .....................................82 LE- 13. In-Home Day Care Facilities .........................................................................................83 LE- 14. Residential Programs .....................................................................................................83 LE- 15. Inclusionary Housing .....................................................................................................85 LE- 16. Community Land Trusts ...............................................................................................85 LE- 17. Telecommunications and Information Technology ....................................................86 LE- 18. Broadband.......................................................................................................................86 LE- 19. Competitive Cable Franchising Authority ...................................................................88 LE- 20. Public Right-of-Way Management ...............................................................................89 LE- 21. Wireless Infrastructure and Equipment Siting ...........................................................90 LE- 22. County Economic Development Authorities................................................................90 LE- 23. Local Appropriations to Economic Development Organizations ..............................91 LE- 24. Workforce Readiness .....................................................................................................91 LE- 25. Business Development Programs ..................................................................................92 LE- 26. Remediation and Redevelopment .................................................................................92 LE- 27. Development Authority Levy Limits ............................................................................93 LE- 28. Tax Increment Financing (TIF) ....................................................................................93 LE- 29. Property Tax Abatement Authority .............................................................................94 LE- 30. Revisions to the OSA Audit Function ...........................................................................95 LE- 31. OSA Time Limitations ...................................................................................................96 LE- 32. Workforce Housing ........................................................................................................96 LE- 33. Development Along Transit Corridors ........................................................................98 LE- 34. Greenhouse Gas Emissions and Vehicle Miles Traveled Assessment Requirements on Trunk Highway Projects.........................................................................................99 LE- 35. Authority to Create Public Infrastructure Utilities ....................................................99 LE- 36. Adequate Funding for Transportation .......................................................................100 LE- 37. Turnbacks of County and State Roads ......................................................................101 LE- 38. MnDOT Rights-of-Way Maintenance ........................................................................101 LE-39. Funding for Non-Municipal State Aid City Streets .................................................. 102 LE-40. City Cost Participation on State and County Roads ..................................................103 LE- 41. Authority to Allow Amenities in MnDOT Rights-of-Way .......................................103 LE- 42. Authority to Implement Infrastructure Fees .............................................................104 LE- 43. Safe Routes to School Grants Management ...............................................................104 LE- 44. Railroads .......................................................................................................................105 LE- 45. Airport Planning and Funding....................................................................................106 LE- 46. Airport Safety Zones ....................................................................................................107 Council Packet Page Number 180 of 476 J3, Attachment 2 HUMAN RESOURCES & DATA PRACTICES ....................................................................109 HR-1. Personnel Mandates and Limits on Local Control ......................................................109 HR-2. State Mandates on Employer Leave Policies ...............................................................109 HR-3. Pay Equity Compliance ..................................................................................................111 HR-4. Public Employment Labor Relations Act (PELRA) .................................................. 111 HR-5. Implications of Janus v. AFSCME ................................................................................112 HR-6. Essential Employees .......................................................................................................113 HR-7. Re-employment Benefits ................................................................................................114 HR-8. Public Employee Defined Benefit Pension Plans .........................................................114 HR-9. Deferred Compensation .................................................................................................116 HR-10. Continued Health Insurance for Duty Disabled Peace Officers and Firefighters ..117 HR-11. Health Care Insurance Programs ...............................................................................118 HR-12. Workers’ Compensation ..............................................................................................119 HR-13. Public Safety Duty Disability .......................................................................................120 14. Drugs, Alcohol, and Cannabis Testing in the Workplace .......................................122 HR-15. Veterans Preference .....................................................................................................123 HR-16. Military Leave Reimbursement ..................................................................................123 Data Practices .............................................................................................................................124 DP-1. Data Practices Compliance Costs ..................................................................................124 DP-2. Records Retention Compliance Costs ...........................................................................126 DP-3. Updating the Minnesota Government Data Practices Act ..........................................126 DP-4. Maintaining Government Data in Large Databases ....................................................128 DP-5. Sharing of Student Data with Local Law Enforcement in Emergencies ...................128 DP-6. Disclosure of Victim Data ...............................................................................................129 DP-7. Challenges to the Accuracy of Data ...............................................................................129 DP-8. Law Enforcement Technologies .....................................................................................130 DP-9. Body-Worn Cameras ......................................................................................................131 DP-10. Open Meeting Law ........................................................................................................131 DP-11. Needed Closed Meeting Exceptions to the Open Meeting Law ................................132 DP-12 Expunged records and the Data Practices Act ............................................................133 Federal Employment Law .........................................................................................................134 FED-1. Consolidated Omnibus Budget Reconciliation Act (COBRA) .................................134 FED-2. Flexible Spending Accounts .........................................................................................134 FED-3. IRS Regulations on Death Benefits .............................................................................135 FED-4. Federal Public Safety Collective Bargaining Bill.......................................................135 FED-5. Federal Health Care Reform .......................................................................................136 FED-6. Amended Internal Revenue Code Regarding 403(b) Retirement Plans ..................136 FED-7. Amended Internal Revenue Code Regarding Health Savings Account Eligibility and Medicare Enrollment ..........................................................................................137 FED 8. Affordable Care Act Reporting ...................................................................................137 IMPROVING FISCAL FUTURES ..........................................................................................139 FF- 1. State-Local Fiscal Relations ...........................................................................................139 FF- 2. State Budget Stability .....................................................................................................140 FF- 3. Funding Local Government Aid ...................................................................................140 FF- 4. State Charges for Administrative Services ...................................................................142 FF- 5. Reporting Requirements ................................................................................................142 Council Packet Page Number 181 of 476 J3, Attachment 2 FF- 6. Taxation Duplication ......................................................................................................143 FF- 7. Direct Property Tax Relief Programs ...........................................................................143 FF- 8. Sales Tax on Local Government Purchases .................................................................144 FF- 9. Taxation of Electronic Commerce ................................................................................144 FF- 10. Local Lodging Taxes.....................................................................................................145 FF- 11. Taxation of Electric Generation Personal Property ..................................................145 FF- 12. Electric Generation Taxation Reform ........................................................................146 FF- 13. Support for Transitioning Communities ....................................................................147 FF- 14. Taxation of Municipal Bond Interest ..........................................................................148 FF- 15. Pollution Control Exemption .......................................................................................148 FF- 16. Representative Democracy and Local Control ..........................................................148 FF- 17. Tax Hearing and Notification Process ........................................................................149 FF- 18. General Election Requirement for Ballot Questions .................................................150 FF- 19. City Fund Balances .......................................................................................................150 FF- 20. Local Sales Tax and City Revenue Diversification ...................................................150 FF- 21. City Franchise Authority .............................................................................................152 FF- 22. State Assistance for Property Tax Refunds for State-Assessed Property ...............153 FF- 23. Transition for Property Acquired by Tax-Exempt Entities .....................................153 FF- 24. Payments for Services to Tax-Exempt Property ........................................................153 FF- 25. Housing Improvement Areas and Special Service Districts Petitioned by Business ......................................................................................................................................154 FF- 26. Tax-Forfeited Properties and Local Special Assessments ........................................155 FF- 27. Distribution of Proceeds from the Sale of Tax-Forfeit Property .............................155 FF- 28. State Hazard Mitigation and Response Support .......................................................156 FF- 29. Library Funding ...........................................................................................................157 FF- 30. Park and Library Land Tax Break .............................................................................158 FF- 31. Increasing Safe School Levy Authority ......................................................................158 FF- 32. Equitable Funding of Community Education Services .............................................159 FF- 33. Street Reconstruction Bond Approval ........................................................................159 FF- 34. Special Assessment Election Requirements................................................................159 FF- 35. Homestead Market Value Exclusion ...........................................................................160 FF- 36. State Fund for Non-weather-related Disaster/Catastrophe Relief ...........................160 FF-37. Federal Support for Emergency Preparedness, Recovery and Response ................160 FF- 38. Park Dedication ............................................................................................................161 FF-39. Fundraising Authority...................................................................................................161 Council Packet Page Number 182 of 476 J3, Attachment 2 COMMITTEE MEMBERSHIP 2025-2026 Improving Service Delivery Chair: Carly Johnson, Councilmember, Oakdale Vice-Chair: Athanasia Lewis, Assistant City Administrator, Centerville Matt Bauer, City Council Member, Roseville Jasmine Bray, Council Member, Fulda Daniel Buchholtz, Administrator, Clerk/Treasurer, Spring Lake Park Deb Calvert, Councilmember at Large, Minnetonka David Chanski, Assistant City Administrator/HR Director, Farmington Roberta Colotti, City Clerk, Lino Lakes Heather Corcoran, Legislative Affairs & Policy Director, Rochester Amelia Cruver, Finance Director, Saint Louis Park Claudia Ettesvold, City Clerk, City of Victoria Inderia Falana, Intergovernmental Relations Representative, Minneapolis Clancy Ferris, Legislative and Grants Analyst, Saint Louis Park Tom Fletcher, Mayor, Greenwood Jeanne Frischman, Councilmember, New Brighton Doug Fromm, Council Member, West Saint Paul Matthew Gabb, Sustainability Specialist, Edina Jodi Gallup, City Clerk/Administrative Coordinator, Plymouth Clark Gregor, Council Member, Plymouth Brynn Hausz, Intergovernmental Relations Director, City of Saint Paul Jeff Holmgren, City council, Isanti Steve Huser, Government Relations Representative, Minneapolis Cheryl Jacobson, City Administrator, Mendota Heights BJ Jungmann, Fire Chief, Burnsville Sharon Kelly, Council member, Lauderdale Emily King, Deputy City Clerk, Hastings Jennifer Levitt, City Administrator, Cottage Grove Athanasia Lewis, City Administrator, Centerville Sara Ludwig, City Clerk, Oakdale Molly MacGregor, Councilor, Grand Rapids Shawn Machin, Chief of Police, Cambridge Peyton Mastera, City Administrator, Dilworth Jenny Max, City Administrator, Champlin Don McCann, City Council Member, Owatonna Melissa Moore, Assistant City Manager, Fridley Loren Olson, Senior Government Relations Representative, Minneapolis Eric Petersen, Intergovernmental Relations Associate, Saint Paul Chelsea Petersen, Assistant City Administrator, Shakopee Paula Ramaley, Councilmember, Minnetonka Al Roder, City Administrator, Byron Marty Schultz, City Administrator, Alexandria Cara Schulz, Council member, Burnsville Council Packet Page Number 183 of 476 J3, Attachment 2 Jackie Schulze, Assistant City Administrator, Waconia Monica Seiberlich, City Clerk/Administrative Assistant to the City Administrator, Cambridge Brandon Silgjord, Director of Public Safety / Chief of Police, Sartell Cathy Sorensen, City Clerk, Blaine Dave Steichen, Councilmember, Dilworth Mike Supina, Councilmember, Eagan Mary Supple, Mayor, Richfield Nhia Vang, Sr. Policy Analyst/Legislative Hearing Officer, Saint Paul Norman Wahl, Councilmember, Rochester Caitlyn Walker, Assistant City Administrator, Medina Deb Wegeleben, Finance Director, Big Lake John Weland, City Council, Ward 2, Jackson Jay Willms, Director of Operations, Saint Paul Andrew Wittenborg, Communications and Marketing Manager, Minnetonka 2025-2026 Improving Local Economies Chair: Steve Bot, City Administrator, St. Michael Vice-Chair: Cathy Mehelich, Economic Development Director, St. Cloud Karen Barton, Community Development Director, St. Louis Park Aaron Berg, Assistant City Administrator, Columbus Josh Berg, Councilmember, Elko New Market Kim Berggren, Community Development Director, Bloomington Kyle Box, City Operations Director, Willmar Jasmine Bray, Council Member, Fulda Jenn Brewington, Community & Economic Development Director, City of Victoria Kissy Coakley, Councilmember, Minnetonka Heather Corcoran, Legislative Affairs & Policy Director, Rochester Emily Dunsworth, Councilmember, Inver Grove Heights Inderia Falana, Intergovernmental Relations Representative Tom Fletcher, Mayor, Greenwood Chris Ford, Council Member, Blaine Mitchell Forney, Community Development Director, Columbia Heights Jason Franzen, Councilmember, Delano Mike Funk, City Manager, Minnetonka Matthew Gabb, Sustainability Specialist, Edina Christopher Geisler, City Council Ward 4, Coon Rapids Emily Goellner, Community & Economic Development Director, Golden Valley Lynn Gorski, City Administrator, Farmington Nicole Green, Community Development, St. Paul Dan Gustafson, Council member, Burnsville Kari Haakonson, Community Development Director, Sartell Valerie Halter, Clerk, Lamberton Gary Hansen, Councilmember, Eagan Brynn Hausz, Intergovernmental Relations Director, Saint Paul Elizabeth Heyman, Public Works Director, Brooklyn Center Council Packet Page Number 184 of 476 J3, Attachment 2 Clint Hooppaw, Mayor, Apple Valley Steve Huser, Government Relations Representative, Minneapolis Cheryl Jacobson, City Administrator, Mendota Heights Kelcey Klemm, City Administrator, Detroit Lakes Jacob Kolander, City Administrator, Maple Plain Zach Lindstrom, Mayor, Mounds View Molly MacGregor, Councilor, Grand Rapids Brian McCann, City Planner, Victoria Luke Merrill, Mayor, Isanti Nick Miller, Councilmember, Rochester Kimberly Nelson, Councilmember, Plymouth Christian Pederson, City Council, Victoria Eric Petersen, Intergovernmental Relations Associate, Saint Paul Michele Peterson, City Administrator, Chatfield Julie Peterson, Council Member, Plymouth Ian Rigg, City Manager, Albert Lea Angela Rivera , Finance/HR Specialist, Victoria Al Roder, City Administrator, Byron Emily Rousseau, Councilmember, Arden Hills Marty Schultz, City Administrator, Alexandria Maria Solano, Deputy City Manager, Plymouth Joel Spoonheim, Councilmember, Plymouth Jay Stroebel, City Manager, Brooklyn Park Jeff Thomson, Deputy City Manager, Comm. Dev Director, Burnsville Nhia Vang, Sr. Policy Analyst/Legislative Hearing Officer, Saint Paul Gaonou Vang, Management Analyst, Woodbury *Evan Vogel, City Administrator, Cambridge Jason Wedel, City Manager, Prior Lake John Weland, City Council, Ward 2, Jackson Marcia Westover, Community and Economic Development Director, Cambridge Kimberly Wilburn, Councilmember, Minnetonka Jay Willms, Interim Director of Operations / Chief Budget Officer, St. Paul Jeffry Wosje, Mayor, Plymouth Ryan Yetzer, Assistant City Administrator, Rochester *LMC Board of Director 2025-2026 Human Resources & Data Practices Chair: Joan Lenzmeier, City Clerk, Coon Rapids Vice-Chair: Al Roder, City Administrator, Byron Richard Brainerd, Mayor, Mahtomedi Amanda Bruzer, Assistant Finance Director, Cambridge Emily King, Deputy City Clerk, Hastings Heather Corcoran, Legislative Affairs & Policy Director, Rochester Council Packet Page Number 185 of 476 J3, Attachment 2 Amber Dale, City Manager, Springfield Kelsey Deling, Human Resources Director, Alexandria Sarah Donovan, Human Resources Manager, Minnetonka Matt DuRose, Director of Public Safety, West Hennepin Public Safety Claudia Ettesvold, City Clerk, Victoria Chris Ford, Council Member, Blaine Michael Freske, Employment Attorney, Brooklyn Park Jamie Haefner, HR Manager, Apple Valley Brynn Hausz, Intergovernmental Relations Director, Saint Paul Steve Huser, Government Relations Representative, Minneapolis Patrick Keane, Councilmember, Rochester Caitlyn Walker, Assistant City Administrator, Medina David Chanski, Assistant City Administrator/HR Director, Farmington Heidi Lee, Resident Workforce Consultant, Saint Paul Melanie Lee, HR Director, Oakdale Joan Lenzmeier, Clerk, Coon Rapids Molly MacGregor, Councilor, Grand Rapids Melanie Lee, HR Director, Oakdale Luke Merrill, Mayor, Isanti Jasmine Miller, Clerk/HR, Olivia Caroline Moe, Deputy City Administrator-Finance Director, Cambridge Shari Moore, City Clerk, St. Paul Patricia Nauman, Executive Director, Metro Cities Erik Nilsson, City Attorney, Minnetonka Kevin O'Brien, Recreation Superintendent, Faribault Eric Petersen, Intergovernmental Relations Associate, Saint Paul Julie Peterson, Plymouth Council Member, Plymouth Angela Rivera, HR Specialist, Victoria Christie Rossow, Human Resources Director, Shakopee Rebecca Schack, Councilmember, Minnetonka Megan Schlei, Human Resources Generalist, Hastings Jackie Schulze, Assistant City Administrator, Waconia Terri Spangrud, City Clerk, New Brighton Cory Springhorn, City Council Member, Shoreview Deon Strapp, HR Director, Detroit Lakes Mike Tracy, HR Director, Burnsville *Evan Vogel, City Administrator, Cambridge Caitlyn Walker, Assistant City Administrator, Medina Deb Wegeleben, Finance Director, Big Lake John Weland, City Council, Ward 2, Jackson Jay Willms, Director of Operations, Saint Paul Jill Wolf, City Administrator, Luverne *LMC Board of Director Council Packet Page Number 186 of 476 J3, Attachment 2 2025-2026 Improving Fiscal Futures Chair: Sarah Rathlisberger, Finance Director, Monticello Vice-Chair: Darin Nelson, Finance Director, Minnetonka Amanda Bruzer, Assistant Finance Director, Cambridge Heather Corcoran, Legislative Affairs & Policy Director, Rochester Lindy Crawford, City Manager, White Bear Lake Dan Doering, Councilmember, Rochester Inderia Falana, Intergovernmental Relations Representative, Minneapolis Chris Ford, Council Member, Blaine Jake Foster, Assistant City Administrator, Oakdale Jason Franzen, Councilmember, Delano Nicole Green, Community Development, St. Paul Marshall Hallock, Administrative Business Director, Red Wing Valerie Halter, Clerk, Lamberton Brynn Hausz, Intergovernmental Relations Director, Saint Paul Jeff Holmgren, City Council, Isanti Clint Hooppaw, Mayor, Apple Valley Steve Huser, Government Relations Representative, Minneapolis Timothy Ibisch, City Administrator, Kasson Cheryl Jacobson, City Administrator, Mendota Heights Heather Koskiniemi, Finance Director, Alexandria Tom Lawell, City Administrator, Apple Valley Molly MacGregor, Councilor, Grand Rapids Dan Matejka, City Administrator, Goodview Don McCann, City Council Member, Owatonna Caroline Moe, Deputy City Administrator, Cambridge Kimberly Nelson, Councilmember, Plymouth Loren Olson, Senior Government Relations Representative, Minneapolis Eric Petersen, Intergovernmental Relations Associate, Saint Paul Trisha Pollock, Finance Director, Victoria Jenny Rhode, CFO and Deputy City Manager, Burnsville Ian Rigg, City Manager, Albert Lea Carl Sonnenberg, City Manager, Director of Utilities & Public Works, Waseca Kumud Verma, Chief Budget Officer, Saint Paul Kevin Watson, City Administrator, Vadnais Heights Deb Wegeleben, Finance Director, Big Lake John Weland, City Council, Ward 2, Jackson Brad Wiersum, Mayor, Minnetonka Jay Willms, Director of Operations, Saint Paul Vince Workman, Council member, Burnsville Jeffry Wosje, Mayor, Plymouth Neal Younghans, Debt Manager, Saint Paul Charlie Yunker, City Manager, St. Anthony Council Packet Page Number 187 of 476 J3, Attachment 2 LMC POLICY DEVELOPMENT PROCESS The City Policies document addresses more than 180 legislative issues that impact cities and serves as the foundation of the League of Minnesota Cities (LMC) advocacy efforts. City officials from across the state are recruited throughout the year to serve on one or more policy committees. In 2025, over 150 city officials participated in the policy committees. Policies are considered, discussed, and revised annually with considerable member input. Then, draft policies are published online for member comments before being considered for approval by the LMC Board of Directors. Guided by the City Policies, LMC member cities and staff actively advocate for city-friendly legislation. Below are some of the major events in the policy development process: January The Minnesota Legislature begins the first session of each two-year biennium in January of odd-numbered years. The 2025 Legislative session began on January 15. February The Legislature typically begins the second session of each biennium in February or March of even-numbered years. The 2026 Legislative Session will begin on Feb. 17. March/April In March, the National League of Cities hosts the Congressional City Conference in Washington, D.C. The League’s legislative conference is held in St. Paul. The 2025 Legislative Conference attained over 200 participants. May Under the Minnesota Constitution, the deadline to end any legislative session is the first Monday following the third Saturday in May (May 19, 2025). The governor may call special legislative sessions when necessary. June In June members come together atthe LMC Annual Conference (held in Duluth this year from June 25 to June 27). July Policy committees hold their first of three meetings. The July meeting typically includes a review of the most recent legislative session and a preliminary discussion of emerging issues. August Policy committees hold their second of three meetings to hear from subject-matter experts on existing and potential new policy topics. September Policy committees meet for a third time to finalize their work and make specific policy recommendations to the LMC Board of Directors. October Draft policies, as approved by the policy committees, are shared with members online during the comment period. Member input is also sought from city officials attending LMC CityMeetups around the state each fall. November The LMC Board of Directors reviews member input, then considers and amends the policies for the following calendar year. The Board adopts policies on behalf of League members before the start of the next legislative session. Council Packet Page Number 188 of 476 J3, Attachment 2 PURPOSE, PROCESS AND PRINCIPLES OF CITY POLICIES The League of Minnesota Cities is dedicated to promoting excellence in local government through effective advocacy, expert analysis, and trusted guidance for all Minnesota cities. Each year, the League’s member cities identify common needs and goals, and the Board of Directors adopts policies designed to help cities overcome obstacles and reach those goals. These policies serve as the foundation of the League’s advocacy work on behalf of Minnesota cities. There are 856 cities in Minnesota, and 840 cities are members of the League of Minnesota Cities. Twelve townships and 69 special districts/other members are also League members. The League’s members include the smallest rural cities in Greater Minnesota and the largest cities in the urban core; they include suburban communities in the Metropolitan Area and regional centers in every corner of the state. Every member of the League has a voice in developing the following policies. Two core principles guide the development of City Policies and the actions of the League: 1. Local units of government must have sufficient authority and flexibility to meet the challenges of governing and providing residents with public services. The Legislature must avoid imposing unfunded and underfunded mandates that erode local decision-making authority and create liability and financial risk for city taxpayers. 2. The increasingly complex and costly requirements necessary for cities to provide services to their citizens require a strong partnership between federal, state, and local governments. This partnership should be based upon a shared vision for Minnesota and should allow individual communities to tailor that vision to the unique needs of their residents. The purpose of the committees is to engage in a policy development process that is based on the non-partisan principle of local decision-making, or local authority, and that is free of partisan politics. The purpose of the committees is not to promote interests of outside organizations that committee members might be a part of, or personal interests that have little to do with the greater good of cities. Because of the fluid nature of emerging issues, state and national politics, and current events, additional and alternative policies may be proposed after the policies are adopted by the Board of Directors. The League will make every effort to notify members of substantial changes or additions to policies after they are adopted by the Board of Directors. Council Packet Page Number 189 of 476 J3, Attachment 2 IMPROVING SERVICE DELIVERY SD-1. Local Control SD-2. Unfunded Mandates Issue:Cities are often laboratories for Issue: Federal and state mandated programs determining public policy approaches to the substitute the judgment of Congress, the challenges that face residents. Success in president, the Minnesota Legislature, and the providing for the basic needs of a functional governor for local budget priorities. These society is rooted in local control to determine mandates force cities to reduce funding for how best to respond to the ever-changing other basic services or to increase taxes and needs of the population. Because city service charges. government most directly impacts the lives of Response: people, and representative democracy ensures a) Existing unfunded mandates should be that locally elected officials are held reviewed and modified or repealed where accountable for their decisions through local possible. elections, local governments must have sufficient authority and flexibility to meet the b) No additional statewide mandates should challenges of governing and providing be enacted unless full funding for the residents with public services. mandate is provided by the level of government imposing it or a permanent Response: The increasingly complex and stable revenue source is established. costly requirements necessary for cities to provide services to their residents would c) Cities should not be forced to comply with benefit from a strong partnership between unfunded mandates. federal, state, tribal, and local d) Cities should be given the greatest governments. This partnership should be flexibility possible in implementing based upon a shared vision for Minnesota mandates to ensure their cost is and should allow individual communities minimized. to tailor that vision to the unique needs of their residents without mandates and e) In the event that state funding for policy restrictions imposed by state and mandates or programs is repealed or federal policy makers. The state and sunsets, the original mandate or program federal government should recognize that should be repealed as well. The financial local governments, of all sizes, are often burden should not shift to the cities once the first to identify problems and inventive state funding is no longer provided. solutions to solve them, and should f) State and federal program responsibilities encourage further innovation by should not be shifted to local governments increasing local control. The state and without full funding federal government should not enact initiatives that erode the fundamental SD-3. Local Approval of Special principle of local control in cities across Laws Minnesota, nor restrict access to state and Issue: The Minnesota Constitution prohibits federal programs due to local policies. special legislation except for certain special laws relating to local government. It provides that a special law must name the affected Council Packet Page Number 190 of 476 J3, Attachment 2 locaa) Uncertainty about the timing and amount of l unit of government and is effective only after approval by the local government unit, aid and credit reimbursement payments and the distribution of local sales tax revenues. unless general state law provides otherwise. Under (Minn. Stat. §§ 645.021-645.024), a b) Inability of licensed city professionals such special law is not effective unless approved as peace officers and water treatment facility by the affected local unit of government, operators to renew licenses. except under limited circumstances. c) Loss of access to critical information such as In recent years, the Legislature has the Bureau of Criminal Apprehension occasionally enacted general laws that affect database and state-mandated reports. a single local unit of government. By d) The shutdown of transportation projects on enacting a general law with limited the trunk highway and state aid system. application, local approval is not required. e) Interruption of local economic development Response: The League of Minnesota Cities due to the state having sole authority to supports the Constitutional requirement inspect, review and approve various plans that a special law must be approved by the and types of projects. affected local unit of government before it can take effect. If a law is intended to Although the 2011 shutdown ultimately affect or benefit a single local unit of resulted in judicially-ordered continuation of government, the Legislature must follow many state government services, a 2017 the requirements for enacting a special law Minnesota Supreme Court decision (A17- set forth in the Minnesota Constitution 1142) would likely exacerbate the impacts on and in Minn. Stat. §§ 645.021-645.024. The cities in a future state government shutdown. League specifically opposes the In that decision, the court stressed that Legislature's technique of bypassing the “Article XI, Section 1 of the Minnesota Constitution by not naming the local Constitution does not permit judicially government, but describing the local ordered funding for the Legislative Branch in government in such narrow terms that it the absence of an appropriation.” The effect can only apply to one entity. of the 2017 decision has yet to be tested. SD-4. State Government Shutdowns Response:The League of Minnesota Cities urges the Legislature and governor to Issue: Twice in less than one decade, the establish a procedure in state law to state Legislature and governor failed to reach continue certain state government a global agreement on the state budget by the operations into a new biennium in the end of the fiscal biennium (June 30 of odd- event that the governor and legislators numbered years). As a result of these cannot reach a budget agreement. impasses, portions of state government were Specifically, the Legislature and governor shut down. The shutdowns, particularly the should modify state law to assure that the shutdown in 2011, created a range of staff necessary to distribute state funds challenges for cities, as well as for the state’s that are already encumbered or statutorily courts, residents, businesses, licensed appropriated to local governments are professionals, state employees and others. distributed as statutorily scheduled, or in For cities, the most pronounced challenges the absence of a statutory payment related to the shutdowns were as follows: schedule, are released in a predictable and timely manner in the event of future shutdowns. Council Packet Page Number 191 of 476 J3, Attachment 2 The be disregarded. This provision was initially Legislature should also pass legislation that allows existing licenses of enacted in 1988. public employees to be continued during Minn. Stat. ch. 84C regarding conservation any future state government shutdown easements was enacted in 1985, and Minn. and should identify additional areas, such Stat. §§ 84.64-.65 regarding conservation as electrical and plumbing inspection and restrictions were originally enacted in 1974. plumbing plan review, where local Because conservation easements and governments could reasonably step in to conservation restrictions are not listed among handle the inspections, review, and the restrictions that are not subject to Minn. approval necessary for local projects to Stat. § 500.20, subd. 2a, it is possible to move forward, and allows work on conclude, by negative implication, that subd. approved projects to continue in state 2a does apply to the conservation easements rights-of-way. and conservation restrictions created by earlier enacted statues. This conclusion is SD-5. Duration of Conservation inconsistent with the language in Minn. Stat. Easements § 84C.02(b) that “a conservation easement is Issue:The Minnesota Marketable Title Act unlimited in duration unless the instrument provides that any deed over 40 years old can creating it otherwise provides.” be disregarded unless the holder of the Response:The League of Minnesota Cities interest re-records it. There is an exception supports legislation that excepts holders of for a person in possession of the property. A conservation easements from re-recording 2010 Minnesota Supreme Court decision said the easements under the Minnesota that the person in possession has to show that Marketable Title Act and that clarifies the possession has been visible enough to put that Minn. Stat. § 500.20, subd. 2a, does a prudent person on notice of the interest, and not apply to conservation easements and that the possession has to be continuous. restrictions. Sampair v. Village of Birchwood, 784 N.W.2d 65 (Minn. 2010). SD-6. Racial Equity in Minnesota This creates issues for cities that have Issue: Since the earliest days of its history, conservation easements. It is difficult, if not race and racial inequity issues have been impossible, to show actual use of the present in Minnesota. Land acquisition and easement because conservation easements are ownership, discriminatory covenants passive easements, not active ones. As a restricting homeownership to white result, cities will have to re-record the Minnesotans, and patterns of systemic, easements every 40 years in order to maintain structural, and institutional racism have them. This will result in a significant brought the state to experience some of the administrative burden and increase costs for worst racial disparities in the country for local units of government due to staff time, employment, housing, education, health, legal fees, and recording fees. criminal justice, and law enforcement. Explicit and implicit bias toward people of Additionally, Minn. Stat. § 500.20, entitled color is prevalent in public policies and other “Defeasible Estates,” provides in subd. 2a rules governing Minnesota residents. Racial that private covenants, conditions, or equity is accomplished when race can no restrictions that affect the title or use of real longer be used to predict success, and we estate cease to be valid 30 years after the date have government and systems that work for of the instrument creating them and they may all. Council Packet Page Number 192 of 476 J3, Attachment 2 The dae) Working to improve access to city ta is readily available from the U.S. Census, the state demographer, and local procurement opportunities for veteran-, woman-, and minority-owned businesses. government. For example, Minnesota ranks 50th in the nation for median income equality However, cities acknowledge that there is and 49th in homeownership equality. The much work that still needs to be done before killing of George Floyd and the success for all Minnesotans can be achieved disproportionate impact of COVID-19 on regardless of race. To optimize success for all communities of color have further Minnesotans, cities cannot work in isolation highlighted the critical need to overhaul our on racial equity issues. laws, policies, and practices to address Further, it should be acknowledged that systemic racism. community members who are both from Racial demographics are continually communities of color and are immigrants changing throughout the state. According to require local governments to understand the the state demographer, 20 percent of intersection between these two issues and Minnesota’s population are people of color. evaluate public policy initiatives from All racial groups have recently increased in multiple social justice perspectives. League the state, but between 2010 and 2018, policies on immigration and racial equity are Minnesota has added five times as many heavily interrelated in that situation. people of color as white residents. Response:In order to best support and While every city may be in a different place, serve all Minnesotans, the State should the need for racial equity and the need to take a leadership role by prioritizing repair past racial harms touches all addressing racial equity through its communities, from the most racially diverse actions: cities to cities with very few or no people of a) Partner with local government and color. In recognition of the need to strive for communities of color to identify and racial equity, cities are invested in building a address racial equity issues; more equitable future when every resident can thrive regardless of race. Among efforts b) Proactively assess past racial harms and cities are undertaking are: develop actions to address them; a) Examining how cities deliver services and set c) Collect and provide data disaggregated by local policies among city staff and elected race necessary for cities and the state to officials; make informed decisions about how to address racial disparities; b) Creating high-level staff positions and departments to address race equity, financial d) Develop a state system for the proactive and educational opportunity, diversity, and and innovative development and delivery analysis of city policies; of resources to local government to address racial equity including policy and c) Engaging with the communities of color to service options, local engagement tools, build/rebuild relationships and trust; policy expertise, and financial resources; d) Establishing city commissions to address race and and racial equity issues with local affected e) Actively review and amend existing communities; and statutory language to identify laws that contribute to racial inequities and consider Council Packet Page Number 193 of 476 J3, Attachment 2 raciabetween local government officials, l equity impacts when crafting proposed legislation and policies. including law enforcement personnel, and immigrant communities. SD-7. Immigration Reform SD- 8. Responsibility for Locating Issue:The United States and the State of Private Underground Facilities Minnesota have long traditions of welcoming immigrants. Immigrants strengthen Issue: Cities are responsible for complying Minnesota by contributing to the state’s with state pipeline safety regulations that economy, enhancing cultural resources, and hold cities responsible for locating and participating in efforts to build strong marking private service laterals that connect communities. in public rights-of-way to city sanitary and storm sewer, water, and district heating According to the National League of Cities, systems. The Minnesota Office of Pipeline roughly 35 percent of undocumented Safety (MNOPS) is proposing amendments immigrants have lived in the United States to state pipeline and safety rules related to the for 10 years or more. Approximately 1.6 definition of excavation and changes to million undocumented immigrants are mandatory damage reporting. children, and another 3.1 million children in the United States have at least one Cities are concerned that damage to private undocumented parent. These families are service laterals within the public right-of-way forced to live “underground” and are unable continues due, in part, to construction to get drivers’ licenses or car insurance in methods during the replacement, repair most states. In addition, they are unlikely to and/or installation of underground utilities obtain health insurance and are afraid to which cross city water and sewer services report crimes to local law enforcement. that are in the public rights-of-way. Trenchless excavation could potentially Since immigrants are barred from most cause damage to underground service laterals federal public assistance, the burden of and negatively impact the quality of utility providing social services, education, and services. health care falls to state and local governments that are increasingly feeling the Response:The League supports the financial impact of both legal and illegal changes to the definition of excavation immigrants living in their communities. presented by MNOPS at the 2012 Review of Minn. Stat. ch. 216D. Cities support the Response: The League of Minnesota Cities, elimination of windbreaks, shelterbelts, together with the National League of and tree plantations from the definition of Cities, urges Congress to move quickly to excavation, unless any of these activities enact and enforce effective immigration disturbs the soil to a depth of 18 inches or laws. more. Federal and state governments must not The League supports exempting normal transfer responsibility for enforcing U.S. maintenance of roads and streets from the immigration laws to local personnel, definition of excavation if the maintenance including police officers, firefighters, does not change the original grade and educators, health professionals, and social does not involve the road ditch by defining service employees. Federal and state “original grade” as the grade at the date of governments must not prohibit local units issue of the first notice by the excavator. of government from implementing policies aimed at fostering positive relationships Council Packet Page Number 194 of 476 J3, Attachment 2 The L eague supports increasing MNOPS create unanticipated costs for utilities owned fines for violators of state pipeline safety and operated by cities. Municipally-owned requirements, bringing state penalties in utilities would be unreasonably held to the line with federal penalties. same standards as privately-owned utilities that exist in the public right-of-way. The League opposes mandatory damage reporting and recommends a simple Response: The League of Minnesota Cities standardized form to encourage cities to supports use of the design-build voluntarily report damages. The League procedure, however, municipal utilities opposes requirements that would force that exist in the public right-of-way should cities to mark underground facilities of all not be penalized under this process. sizes and materials. Municipal utilities legitimately exist in the public right-of-way. When a MnDOT The League recognizes that trenchless construction project requires the excavation presents concerns to cities. relocation of utilities, the cost of relocating Private property owners in the excavation municipal utilities should be shared area must receive advance notice of any equitably between MnDOT and affected trenchless or other excavation activities municipal utilities. that could affect the quality of utility services. Notice must include at least one SD-10. National Fire Protection phone number for assistance in case of any Association (NFPA) Standards service problems. Issue: The National Fire Protection Contractors must comply with city permits Association (NFPA) is an international requiring that the drill head be visible association of individuals and trade and when crossing any paint marks and professional organizations that deals with fire moving through the pothole at the depth and life safety. The NFPA has advocated that the city allows for the installation. legislation and Occupational Safety and Health Administration (OSHA) requirements Cities must not be required to locate that would mandate two standards: NFPA privately-owned water and sewer laterals 1710, Organization and Deployment of Fire and must not be held responsible for Suppression Operations, Emergency Medical actions by excavators when the city Operations, and Special Operations to the determines not to locate such facilities. Public by Career Fire Departments, and Excavators should be responsible for NFPA 1720, Organization and Deployment locating and protecting any private service of Fire Suppression, Emergency Medical lateral that is impacted by excavation Operations, and Special Operations to the activities conducted on private property Public by Volunteer Fire Departments. NFPA beyond the public right-of-way. standards 1710 and 1720 define minimum SD-9. Utility Relocation Under response times, minimum fire company Design-Build Road Construction staffing levels, initial full alarm response levels, and extra alarm response levels. Issue: The Minnesota Department of Although NFPA codes and standards are Transportation (MnDOT) has promoted voluntary, they are often adopted by local legislation relating to the design-build jurisdictions. construction process that would require private and public utilities to be responsible Response:Levels of service delivery for for utility relocation necessitated by road fire and emergency medical services construction. The policy, if enacted, would Council Packet Page Number 195 of 476 J3, Attachment 2 (EM aid agreement that contains the same basic S) have always been determined by local jurisdictions. If mandated, the NFPA structure for liability as the statute. Many cities have entered into area-wide mutual aid standards would force local governments to shift dollars from fire prevention agreements that are similar to the LMCIT programs to fire suppression activities, model agreement. To provide uniformity, potentially increasing the risk of fire and there should be a statute that is similar to the danger to local firefighters. Minn. Stat. § 12.331, to govern daily fire mutual aid situations that do not rise to the The League supports permanent and level of emergencies. ongoing state funding to assist fire departments statewide to improve Response:The Legislature should pass a emergency response and work toward statute to provide uniform provisions industry standards. when fire departments assist each other. These provisions should include statutory The League of Minnesota Cities opposes definitions and clarifications for: any attempt to mandate standards for minimum staffing levels of fire, specialized a) Who is in command of the mutual aid or EMS vehicles controlled by units of scene. local government. The League also b) Who will cover the firefighters for opposes any attempt to adopt a standard worker's compensation. dictating or affecting the response time of c) How liability and property claims will be any fire, specialized or EMS vehicle. handled. SD-11. Fire Mutual Aid d) Who will pay for expendable supplies such Issue: City and township fire departments as foam. regularly assist each other with firefighting e) When fire departments will charge each and other response activities. This mutual aid other for these services. is mostly authorized by individual written contracts with each city or township, which f) The ability for fire departments to opt out results in a patchwork of different by having a separate written agreement. agreements with different provisions. Often, SD-12. Clarification of Joint Powers each city attorney recommends different Relationships with Federally provisions. Recognized Indian Tribes Following the Red River floods and the St. Peter tornados, emergency responders Issue: During the 2010 legislative session, (including fire departments) met and helped Minn. Stat. § 471.59 was modified to allow pass a statute to govern mutual aid situations federally recognized Indian tribes to when there is an emergency declared by participate in joint powers agreements with mayor or governor and no written agreements other governmental entities, including exist. The statute, Minn. Stat. § 12.331, Minnesota cities. Indian tribes are extremely provides a framework for how worker’s unique legal entities under federal law and compensation, liability, property claims, international treaties. The new law was a insurance, and charges between the broad brush authorization that did not address departments will be handled in mutual aid important issues that uniquely arise when situations. dealing with Indian tribes related to sovereignty, insurance liability and liability The League of Minnesota Cities Insurance limits (commonly called “tort caps”). Trust (LMCIT) developed a model mutual Council Packet Page Number 196 of 476 J3, Attachment 2 Pre vious laws, such as Minn. Stat. § 626.93 in April 2002. The new fee schedule (authorizing tribes to act as law enforcement significantly reduced reimbursement levels entities) explicitly addressed these concerns. for many ambulance services. In addition, in Since the new law passed, interest has been most cases Medicare does not pay for costs expressed by public safety groups and related to treatment of patients that are not individual cities in entering into joint powers transported. The BBA mandates are agreements with federally recognized Indian impacting the ability of some Minnesota tribes. However, legislative guidance is ambulance service providers to adequately needed to address concerns related to fund their operations. sovereignty, insurance and liability limits for The loss of revenue due to Medicare and these agreements. Medicaid reimbursement changes, coupled Response: Include in Minn. Stat. § 471.59 with higher insurance rates, is affecting the (the joint powers statute) language ability of many ambulance service providers substantially similar to Minn. Stat. § to deliver emergency care, particularly in 626.93 that clarifies that Indian tribes rural Minnesota. All ambulance services and entering into joint powers relationships personnel are regulated by Minn. Stat. ch. agree to: 144E and must comply with the same licensing, training, and equipment-related a) Be subject to liability for its torts and requirements, regardless of ownership. those of its officers, employees, and agents acting within the scope of their In addition, the liability exposure of medical employment or duties arising out of the directors associated with ambulance service joint powers agreement to the same extent is a concern. While medical directors of as a municipality under Minn. Stat. ch. government-based ambulance services may 466; and arguably be covered by public official immunity, the law is unclear and should be b) Notwithstanding Minn. Stat. § 16C.05, clarified. subd. 7, waive its sovereign immunity with respect to claims arising from liability Response:The League of Minnesota Cities under the joint powers. supports federal legislation that would: a) Require Medicare to set ambulance SD-13. Ambulance Service Costs payment rates to cover the cost of and Liability providing service for both transport and Issue: The cost of providing ambulance care non-transport care of patients; has increased steadily over the last several b) Require adequate reimbursement for years due in part to changes in Medicare and ambulance providers; Medicaid reimbursement. The federal Balanced Budget Act (BBA) of 1997 made c) Require Medicare to reimburse for 911 two significant changes to ambulance billing. ambulance transports regardless of First, the act mandated that all ambulance medical necessity; services accept Medicare and Medicaid d) Make it easier for providers to file claims assignments as payment in full; that is, with Medicare by eliminating a processing ambulance services cannot bill the Medicare system that often leads to the rejection of or Medicaid patient for any unpaid balance legitimate reimbursement claims. beyond the Medicare or Medicaid If the federal government does not assignment. Second, the act mandated a increase Medicare and Medicaid rates in uniform fee schedule that was implemented Council Packet Page Number 197 of 476 J3, Attachment 2 the i lack of transparency within Minnesota’s mmediate future to fully reimburse providers for the cost of treating and ambulance industry compromises accountability by EMS providers. transporting patients, the state should provide defined additional funding to Response:The League of Minnesota Cities offset the gap. calls for the legislature and Office of EMS The League also urges the Legislature to to implement policies that would: extend the protection of the state and a) Allow local units of government to municipal Tort Claims Act to licensed designate which licensed ambulance third parties that contract with a service provider or providers may serve municipality to provide ambulance their communities and to determine the services. The League also supports appropriate level of service; extending the applicability of public b) Provide local units of government with official immunity to medical directors in tools and authority to ensure transparency the course of ambulance service activities. by EMS providers; SD-14. Emergency Medical Services c) Uncouple the professional standards Issue: The Emergency Medical Services overview role of the Office of EMS from Regulatory Board (EMSRB) is the State of service area determinations; Minnesota’s regulatory entity that oversees d) Include representatives of municipalities and issues ambulance licenses. It will be on the Office of EMS’ EMS Advisory replaced in 2025 by a new Office of Council; Emergency Medical Services. Currently, the EMSRB has the authority to designate exclu- e) Provide authority for the Office of EMS to sive emergency medical services (EMS) set professional standards; and operating areas, or primary service areas f) Requiring the Office of EMS to submit (PSAs), for ambulance providers. Once a biennial reports on EMS service delivery provider has been approved to operate in a data points for each local unit of PSA, the provider is authorized to serve that government to appropriate legislative PSA for an indefinite period of time. No committees. other health licensing board in Minnesota grants a provider an exclusive operating area. SD-15. Fees for Service Historically, health licensing boards have Issue: While general services—such as played a critical role in setting professional permitting, inspections or enforcement—are standards and establishing credentialing typically funded out of a city’s general fund, processes. However, the EMSRB has not cities often impose fees to cover the cost of imposed operational standards to ensure an providing certain services, permits, and area has adequate coverage and service level licenses. such as response time requirements on EMS The Legislature and interest groups often providers. Furthermore, there is currently no seek to mandate or preserve fee limitations oversight of ambulance billing rates. The for city services. Over the last several years, current system does not require ambulance the Legislature has enacted a number of new services to disclose the number of laws designed to rigorously control local fee- ambulances staffed, where an ambulance is setting authority. Examples of such mandates responding from or any other important data include placing limits on coin-operated points that would ensure a community is amusement machine license fees, on-sale and receiving quality ambulance services. The Council Packet Page Number 198 of 476 J3, Attachment 2 off-sit must be circulated in the city which it ale liquor license fees, license fees for retailers selling fireworks, deputy registrar purports to serve, and either have at least 400 copies regularly delivered to paying fees and planning and zoning fees. The state also requires cities that collect more than subscribers or have at least 400 copies $5,000 in development-related fees each year distributed without charge to local residents. to annually report all construction and For cities under 1,300 population, the development fees to the Department of Labor delivery and distribution threshold is 250 and Industry. copies. Response: While the state has a role in As the newspaper industry has been providing a general, statewide funding challenged by alternative technologies, a policy, the state should not interfere in the growing number of cities are unable to find a decision-making functions performed by newspaper that meets the qualifications in cities when setting city budgets to provide state statute. In addition, as technology has city services. The League of Minnesota evolved, people have become more Cities seeks authority for cities to charge accustomed to the instantaneous availability fees that are reasonably related to the cost of online information. Because cities are of providing the service, permit or license. committed to providing information to The League opposes legislation that would residents and responding to this demand, they require specific methods to pay for city have invested heavily in their websites and in services or would place caps on city fees.growing a robust online presence. They survey residents about what method of SD-16. Improving and Increasing communication is preferred and based on Access to Information this, cities update, reform, evolve, and advance communication tools and often, they Issue:State law requires that cities publish do so with limited means and resources to certain types of information in a “qualified” ensure residents have access to information newspaper designated by the city. While the about their city. requirements vary based on city population size, most cities must publish ordinances Because of the publishing mandate outlined before they can take effect; advertisements in state statutes, cities continue to publish in for bids; various financial reports; meeting newspapers with limited resources while and hearing notices; notices of elections; simultaneously providing information to dates for filing affidavits of candidacy; and residents online, which is the format they sample ballots. Collectively, these items are demand. These publication requirements referred to as “official notices,” legal notices” originated in 1949 with the intent of and “public notices” in state statute. providing residents access to their local government. It is time to eliminate these There are several requirements (Minn. Stat. § outdated requirements and make 331A.02) for a newspaper to be a “qualified” communicating with residents more efficient. or “official” newspaper for the city. For instance, there can only be one newspaper 2025 legislation provided a new exception chosen for the city; it must be printed in when a city’s designated newspaper stops English in a newspaper format; if it is a daily operating, allowing publication on the city’s newspaper, it must be distributed at least five website and the Minnesota Newspaper days each week; if not a daily paper, it may Association’s public notice website until an be distributed twice a month with respect to alternate qualified newspaper is available. the publishing of government public notices; While this exception may only apply in Council Packet Page Number 199 of 476 J3, Attachment 2 limited c ircumstances, it is a great first step cost of enforcement and a quicker resolution toward further flexibility for cities. to code violations. Response: The Legislature should Minnesota statutes expressly provide the eliminate outdated and unnecessary authority for all cities to utilize publication requirements that are no administrative enforcement of local codes longer relevant or representative of the and enforcement of liquor license and technology we now have that has tobacco license violations. significantly increased access to In 2009, the Legislature amended Minn. Stat. government. Cities should have the ch. 169, the chapter of law pertaining to state authority to: traffic regulations, to allow cities and a) Determine circumstances where website or counties to issue administrative citations for other alternative publication methods can certain minor traffic offenses. Since the replace or supplement newspaper passage of the 2009 administrative traffic publication based on the unique needs of citations law, some people have questioned each community. whether administrative citations for non- traffic, liquor, and tobacco license code b) Designate an appropriate publication that violations can be legally issued by statutory reaches the maximum number of residents cities given that state law does not expressly possible. provide authority on other code matters. c)Use alternative means of communication Response: The League of Minnesota Cities to fulfill statutory requirements such as continues to support the use of city city newsletters, cable television, video administrative fines for local regulatory streaming, e-mail, blogs and city websites. ordinances, such as building codes, zoning d) Expand the use of summaries where codes, health codes, public nuisance information is technical or lengthy. ordinances, and regulatory matters that are not duplicative of misdemeanor or e)Publish and provide public access to local higher-level state traffic and criminal codes of ordinances on a website accessible offenses. The Legislature should clarify to the public and to post revisions and that both statutory and home rules charter changes to city codes, resolutions, and cities have the authority to issue rules on the city website, when feasible. administrative citations for code SD-17. Administrative Fines for violations. Further, state statute should allow statutory and home rule charter Code Violations cities to adjudicate administrative citations Issue: Many statutory and home rule charter and to assess a lien on properties for cities have implemented administrative unpaid administrative fines. enforcement programs for violations of local regulatory ordinances such as building codes, SD-18. Contracting and Purchasing zoning codes, health codes, and public Issue: Minnesota statutes stipulate nuisance ordinances. This use of contracting and purchasing requirements for administrative proceedings has kept Minnesota cities. The law prescribes the enforcement at the local level and reduced process political subdivisions must use to pressure on over-burdened district court make purchases and award contracts, and systems. Cities using administrative requires a competitive sealed bid procedure enforcement processes experience a lower for contracts or purchases over $175,000. Council Packet Page Number 200 of 476 J3, Attachment 2 The i ntent of these statutory requirements is to ensure a quality of life for the residents of to provide taxpayers with the best value for a community. Establishing an enterprise their dollar and ensure integrity in the operation allows a city to provide a desired process. However, imposing these statutory service while maintaining financial control requirements may, at times, result in political over service levels, costs, and public inputs. subdivisions paying more for goods and In some cases, enterprise operations produce services than private entities under the same general public benefits and may require circumstances. public support to ensure a desired level of The Legislature recognized the benefits service at a reasonable cost. The benefits of associated with alternative purchasing an enterprise operation, therefore, should be methods when it amended municipal evaluated not solely in terms of profitability contracting law in 2004 to authorize the use but also on the service benefits to residents of of reverse auctions to purchase supplies, the community. materials, and equipment. Similarly, other Response:The League of Minnesota Cities contracting procedures, including “design- supports the local decisions made by cities build” and direct negotiation are proven to deliver services by establishing a city alternatives to the formal bidding process. enterprise operation. The state should Authorizing broader use of these types of refrain from infringing on the ability of a alternatives as the Legislature did in 2009 by city to provide services for its community. authorizing a design-build pilot program, would enhance the ability of cities to make SD-20. Preservation of Order in City appropriate and fiscally responsible Council Meetings purchasing decisions. Issue: The Minnesota Supreme Court held a Response: The League of Minnesota Cities provision in Minn. Stat. § 609.72, subd. 1(2), supports broader use of alternative that prohibits disturbing public meetings was contracting and purchasing methods that unconstitutionally broad. State v. Hensel, streamline the process and reduce local A15-0005 (Minn. 2017). Minn. Stat. § purchasing costs. Specifically, the League 412.191 gives statutory authority to city supports authorizing cities to use the councils to preserve order and regulate design-build procedure and providing procedure at their meetings. Cities rarely municipalities with broader authority, relied on the struck-down statute, but instead similar to that of private businesses, to used other avenues to maintain order, such as directly negotiate contracts. In addition, issuing warnings and enforcing decorum the League supports expanding the county rules. The struck-down statute served as a allowances for contracting with small last resort when other options did not work. business enterprises or veteran-owned Response: The Legislature should ensure small businesses in § 471.345, subdivision statutes adequately balance public 20, to be an option available for cities, as participation with the ability to effectively well. manage public meetings and protect SD-19. City Enterprise Operations public safety. Issue: Historically, city enterprise operations SD-21. Constitutional Amendments have been created in response to community Issue: The Minnesota Constitution requires needs, lack of a private market, financial that a constitutional amendment be approved reporting requirements, state and federal by a simple majority of both chambers of the mandates, to enforce state and local law, and Council Packet Page Number 201 of 476 J3, Attachment 2 Legi slature at one session, and must then be Response: Cities strongly support our ratified by a majority of all the voters voting representational system of governance at the election. Minnesota is one of 18 states and, therefore, oppose amending the state that require a simple majority vote by constitution to provide for initiative and legislators while 26 states require a higher referendum. The Legislature is the threshold (17 states require a two-thirds appropriate governing body to consider majority and nine require a three-fifths and enact public policy that reflects majority). Since statehood, 216 proposed statewide interests. constitutional amendments have been voted The process of adopting state law based on on by the electorate; 121 of them have been good public policy is best upheld and approved (56%) and 95 rejected (44%). supported by increasing the accountability Cities provide a variety of critical and and responsiveness of the legislative essential services to residents of Minnesota. process, not by circumventing it. Many public policy decisions at the state Presenting complex issues to voters in the level impact cities and therefore, city officials guise of direct democracy further weakens depend on their state legislators to represent representative government. city interests at the Legislature. A state constitutional amendment to Additionally, unlike a statutory change, a provide for initiative and referendum constitutional amendment is difficult to subjects cities and their residents and modify or repeal once enacted. taxpayers to the unintended outcomes of sometimes unwise attempts to place Response: The League of Minnesota Cities significant public policy decisions into the strongly supports our representational hands of special interests that can raise system of government and opposes laws unlimited funds for the purpose of and amendments that restrict local promoting their more narrow interests. government. The Legislature is the appropriate governing body to consider SD-23. Civil Liability of Local and enact laws that reflect statewide Governments interests. Utilizing constitutional Issue: One of the barriers to the delivery of amendments to change public policy governmental services and programs is the circumvents this process. exposure of local governments and their Therefore, the League supports requiring officials to civil damage claims. The state has a supermajority vote (two-thirds in acted to protect itself and its local support) by the Legislature to put an governments by enacting exceptions and amendment on the ballot. limitations to liability suits, and authorizing self-insurance and other mechanisms to deal SD-22. Initiative and Referendum with claims allowed by law. Issue: The Legislature has frequently Response: The League of Minnesota Cities considered legislation to establish initiative supports: and referendum by proposing to place a question for voter approval on the state a) Creating an exception to municipal tort general election ballot to amend the state indemnification law, Minn. Stat. § 466.07, constitution to allow voters to initiate or where an employee is defended and repeal state laws by submitting a petition indemnified for claims under a contract of which would cause such questions to be insurance carried by the employee. placed on the state general election ballot. Council Packet Page Number 202 of 476 J3, Attachment 2 b) Ext redevelopment, and imposed new ending the protection of the state and municipal Tort Claims Act to quasi-compensation and procedural requirements that apply to all condemnation actions, governmental entities when performing public services such as firefighting or including those for traditional public uses licensed third-party ambulance providers such as roads, parks, and schools. Legislation that contract with a municipality to to control cities’ abilities to perform provide ambulance services.regulatory acts—such as road rights-of-way condemnation, shooting range zoning, and c)Existing constitutional safeguards for amortization—has also received strong protecting public and private property support from legislators. In addition, some interests without any statutory expansion legislators would like to authorize businesses of property rights. to seek inverse condemnation when a d) Clarifying and maintaining the governmental entity enters the business applicability of municipal immunity in market and provides competing goods or various areas, including, but not limited services or limits the number of businesses to, vicarious official immunity and park that can operate privately or receive public and recreational immunity, including the contracts. extension to entities providing a public Such legislative initiatives threaten a wide service that have nottraditionally been array of planning, environmental, historic included within the immunity (e.g., state preservation, and land conservation measures trails over municipal utility easements). and undermine the fundamental e) Preserving changes to Minnesota’s joint responsibility of cities to protect the public and several liability laws that require a health, safety, and welfare of its residents. municipality to be at least 50 percent at In 2006, the Legislature enacted Minn. Stat. § fault to be held responsible for 100 percent 117.031, a statute related to attorney fees in of a damage award. the eminent domain process. The structure of f) Reasonable limits on the amount and the statute has resulted in attorney fee awards circumstances in which statutory attorney in eminent domain actions that have no fees may be awarded in order to encourage relationship to the outcome of the case, serve settlement by all parties and decrease the only to encourage litigation, and shift limited likelihood of litigation. public funding away from infrastructure projects. g) Preserving the essential structure of the local government tort liability caps in Response: State law must continue to Minn. Stat. § 466.04. provide cities with the tools needed to balance the rights of private property SD-24. Private Property Rights and owners with the interests of the public. Takings The League of Minnesota Cities opposes legislation that diminishes the ability of Issue: In the wake of the U.S. Supreme cities to act in the best interest of the Court’s 2005 decision, Kelo v. City of New health, safety, and welfare of its residents; London, 545 U.S. 469, which upheld the that increases the cost of doing business ability of local governments to use eminent for the public good; or that creates the domain for economic development purposes, possibility of additional lawsuits against the Legislature enacted significant cities. restrictions on cities’ use of eminent domain for economic development and Council Packet Page Number 203 of 476 J3, Attachment 2 Spe cifically, the League opposes legislation b) Reducing wear on public infrastructure from that:heavy truck traffic; a) Allows businesses to seek inverse c) Improving the efficiency, cost and quality of condemnation when a city provides garbage and recycling service provided to competing goods or services, or limits the local residents; number of private operators. d) Cooperating with other local governments to b) Creates an automatic cause of action for best meet solid waste management and damages any time a local regulatory action recycling objectives; impacts the use or reduces the value of e) Taking local steps to reduce energy impacts private property. of public services; and The League supports legislation that: f) Meeting the requirements of county a) Authorizes cities to use eminent domain ordinances and solid waste management for economic development and plans as required under Minn. Stat. § 115.94. redevelopment projects that advance a Organized collection is also encouraged in greater public good that benefits the state solid waste policies as a means of community. improving the efficiency and coordination of b) Empowers local elected officials to solid waste management between local units determine whether a particular taking of of government. There are very specific and property serves a public purpose. burdensome public procedures laid out in statute defining how such a decision must be c) Creates incentives to encourage publicly vetted and approved and over what landowners to voluntarily sell their time period that can occur. property to the public for development or redevelopment. Despite all of these important and valid reasons for using organized collection, d) More appropriately balances awards of legislation has been discussed in several attorney fees and costs of litigation with recent sessions that would allow special the outcome of the eminent domain takings claims or contractual damages to be proceeding. claimed by the solid waste industry if local governments make decisions that limit the SD-25. Organized Solid Waste number of companies that can collect Collection garbage in a community in a manner that Issue: “Organized collection” refers to a prevents a company currently operating in situation where a local unit of government, the community from continuing to do so for any of a variety of reasons, decides that through the implementation of organized there is a public interest served by limiting collection. The unspecified and ongoing the number of solid waste and recycling liability this change would create would have collection services available in the area. The the effect of eliminating organized collection reasons for implementing organized as a waste management option. This change collection can vary, but include: would also create a virtual monopoly situation for any company awarded a solid a)Public safety concerns caused by the number waste contract under organized collection. and frequency of large trucks moving quickly The local unit of government would have to through residential neighborhoods; “buy out” a contractor in the future to change providers, even if their services were no Council Packet Page Number 204 of 476 J3, Attachment 2 longerProviding clean, safe, cost-efficient drinking the lowest bid. It also creates an incentive for bidders under organized water to residents is an essential service provided by 726 active municipal water collection to submit high bids, as they would be eligible for damages if they fail to win systems. The Minnesota Department of without having to provide service. Health (MDH) agrees that cities have the Furthermore, this is a precedent that, if statutory authority to determine whether applied to other government purchasing and private wells are an appropriate use within service contracting decisions, would clearly their boundaries and that cities must protect run counter to the public purpose of the public water supplies from numerous government providing services at the lowest private wells in city boundaries. Private feasible cost to taxpayers. wells in a city increase the risk of contaminating public water supplies and Response:The League of Minnesota Cities encourage over use of water. Cities have the opposes efforts to apply inverse authority to regulate and even prohibit condemnation claims to city solid waste private wells by local ordinance. contracting decisions or to allow automatic contractual damage claims for solid waste Response: The League of Minnesota Cities haulers that lose competitive bids in supports current law that authorizes cities organized collection communities. to protect public health and safety through local controls regulating or prohibiting Further, the League supports the current private wells being placed within state policy that organized collection is a municipal water utility service boundaries valuable tool as part of a comprehensive and would oppose any changes to law to solid waste and recycling management remove that authority. program and recognizes the need to protect and preserve the authority of cities SD-27. Sustainable Development to adopt solid waste service contracts that Issue: Minnesota cities spend significant protect public safety, the environment and time and resources planning for growth, public infrastructure. development, and redevelopment that will SD-26. Private Well Drilling best serve the future needs of their residents. Numerous factors are considered as part of Issue: The state has continued to place that process, but an area of increasing interest requirements on public water supply involves concepts often categorized as providers to add drinking water treatment and “sustainable development.” Minn. Stat. § testing, to restrict the volume of water used, 4A.07, subd. 1(b), defines this term, as it and to increase the cost of water use through pertains to local government, to mean fees and requirements on utility rate “development that maintains or enhances structures. As a result, many water users are economic opportunity and community well- choosing to obtain all or portions of their being while protecting and restoring the water from wells they place on their own natural environment upon which people and property. This creates risks to public health economies depend. Sustainable development and safety, can affect the surrounding meets the needs of the present without environment, can affect city water supplies, compromising the ability of future and can leave city water utilities with generations to meet their own needs.” massive losses of customer load and rate revenue. Cities play a key role in fostering sustainable development and other conservation practices due to their role in land use planning and Council Packet Page Number 205 of 476 J3, Attachment 2 zoning, s supersede the authority of local tormwater and wastewater management, and local economic governments to determine their own policies regarding land use and related development. Local governments can take a lead on these issues by choosing to issues. incorporate aspects of sustainable Providing technical assistance and development into their local operations and financial incentives, streamlining facilities. They can also develop local regulations to encourage local policies and regulations that support and governments and private property owners guide individual and private sustainability to engage in sustainable development efforts. The ability of a city to affect these practices, and providing education and changes can, however, be restricted by information to the building industry and policies and requirements imposed by other the public are the best means to generate levels of government. successful results. These programs should Sustainable development initiatives can cover focus on outcomes, allowing flexibility in a wide range of issues, but share the benefit how to best meet those outcomes in of lessening the future environmental impacts different locations and situations. The of communities on the land, air, and water in League opposes mandates that limit the their area. Lakes, streams, rivers, wetlands, authority of cities to determine what wildlife habitat, shoreland areas, and other practices will best meet the needs of their natural resources can be protected and communities. enhanced in quality through local efforts. The League supports sustainable Energy efficiency and renewable energy development efforts that meet the above production reduce the energy demands of a criteria, including programs proposed in community and the environmental impacts of the following areas: energy production. By more efficiently using a) Shifting public resources, services, public infrastructure and minimizing resource investments, purchasing power, and consumption, the costs to individuals, procurement toward more economically business, and government can be reduced. and environmentally sustainable outcomes New and expanded business and job where those solutions are cost effective and opportunities are also generated by the appropriate. “green” products and services needed to implement sustainable development b) Using local land-use planning and zoning initiatives. The ideal result of well-planned to protect and enhance limited natural sustainability, natural resources management, resources, and reduce the impacts of and conservation efforts is a city that is more growth and development on local efficient in the use of its resources and infrastructure. infrastructure, creates fewer environmental c) Promoting efficient and renewable energy problems for future generations to address, sources. and is a more desirable home for residents and businesses. d) Encouraging sustainable building design, construction, and operation strategies Response:The League of Minnesota Cities focused on integrated design, energy supports federal, state, and regional efficiency, water conservation, stormwater efforts to promote sustainable management, waste reduction, pollution development where the effectiveness of the prevention, indoor environmental quality, proposed practice is supported by sound science, and as long as those efforts do not Council Packet Page Number 206 of 476 J3, Attachment 2 and the Response: A statewide-enforced building use of low-impact building materials and products. code may have benefits, but requiring it would result in an unfunded mandate. e)Supporting sustainable economic development, such as brownfield clean-up, Enforcing the State Building Code should on-site stormwater management, and remain a local option for the sustainable business practices and municipalities that have not already technologies. adopted the Code, unless the state fully funds the costs of enforcement and f) Assisting and recognizing local inspection services necessary to enforce a governments that take actions to reduce statewide building code. If the Legislature greenhouse gas emissions and increase requires all cities to enforce the State energy efficiency by providing and Building Code, local governments must identifying technical assistance, financial have the option to hire or select a building assistance, and best practices. official of their choice and set the appropriate level of service—even if the SD-28. Construction Codes state fully funds code enforcement Issue: The State Building Code (SBC) is the activities. statewide standard for the construction, The state should collaborate with local reconstruction, alteration, and repair of the governments, construction industry buildings and other structures of the type representatives, and other stakeholders to governed by the code. A building code review the building and energy codes and provides many benefits, including uniformity consider modifications that preserve and of construction standards in the building improve safety while considering impacts industry, consistency in code interpretation to construction costs and encouraging and enforcement, and life-safety guidance. sustainable building design, construction, Since 2018, the state will adopt a new version and operation. of the SBC every six years after a rulemaking process that allows for significant public SD-29. Building Officials input. The League supports adopting and amending the SBC through the rulemaking Issue: There is a shortage of certified process, and opposes legislative changes to building officials in Minnesota. This shortage the building codes absent unusual or is particularly acute in Greater Minnesota extraordinary circumstances. where some cities have trouble finding certified building officials to perform While all cities must enforce certain codes— inspections required by state law. Minnesota such as the accessibility code and the needs to hire a new generation of certified bleacher safety code—enforcement of the building officials and must ensure that SBC remains a local option for cities outside current officials have adequate training and of the seven-county metropolitan area with opportunity to inspect a wide range of fewer than 2,500 people that did not adopt projects. In light of emerging technologies the code before Jan. 1, 2008. Requiring and offsite building methods such as enforcement of the SBC by smaller cities in panelization and modular construction, it is Greater Minnesota is cost-prohibitive for important that certified building officials many cities, and would result in an unfunded have training opportunities that address mandated. inspection processes for new trends in homebuilding. Council Packet Page Number 207 of 476 J3, Attachment 2 The D The Legislature should encourage the epartment of Labor and Industry (DLI) has authority over state-licensed facilities and Minnesota Department of Labor and Industry to provide training opportunities public buildings. Pursuant to Minn. Stat. § 326B.106, subd. 2, it must delegate authority to ensure certified building officials across to inspect projects on these buildings to a the state have the skills and expertise to municipality if DLI determines that the provide onsite inspections of buildings municipality has adequate qualified local constructed by new building methods such building officials to perform plan review or as panelization and modular construction. inspection of the projects. In 2014 the The League urges the state to make Legislature passed legislation requested by surplus revenue from the building permit the League of Minnesota Cities and agreed to surcharge available to local governments by DLI to provide more transparency and to help defray the cost of complying with clarity to the delegation process. DLI, after code official training and education consulting local governments and the requirements. League, implemented a new delegation procedure as required by statute. Although SD-30. Disability Access the new delegation process is a significant Requirements improvement, it can still be difficult for local Issue: Title II of the Americans with building officials to achieve the experience Disabilities Act (ADA) of 1990 requires that necessary to be delegated full inspection state and local governments provide people authority. with disabilities equal opportunity to benefit Response: Minnesota’s housing and from all of their programs, services, and construction industries depend on the activities. Public entities are not required to work of local building officials, and cities take actions that would result in significant that enforce the State Building Code financial and administrative burdens, but they endeavor to provide quality code must modify policies, practices, and administration and enforcement. The procedures to avoid discrimination unless State must increase its efforts to train new they can demonstrate that doing so would building officials and must provide fundamentally alter the nature of the service, sufficient education to help local officials program, or activity being provided. efficiently administer and enforce State and local governments are also required construction regulations to protect the to follow specific standards when health and safety of residents. These constructing new facilities and altering education efforts should include training existing public buildings, and they must to assist local building officials gain the relocate programs or otherwise provide requisite experience to qualify for access in inaccessible older buildings. Under delegation of state-licensed facilities and the ADA, public entities are not necessarily public buildings. The Minnesota required to make each existing facility Department of Labor and Industry (DLI) accessible. However, their programs—when should also further clarify the delegation viewed in their entirety—must be readily agreement process especially when accessible to people with disabilities. A building officials change roles with a new public entity may achieve program city and avoid any rulemaking or accessibility through various methods. For administrative actions that limit cities’ example, a city may alter existing facilities, ability to account for and defray costs for acquire or construct new facilities, relocate a the permitting and inspections process. Council Packet Page Number 208 of 476 J3, Attachment 2 servor fining property owners for failing to abate ice or program to an accessible facility, or provide services at other accessible sites.a nuisance. Because of the nature of their job, code enforcement officials can be subjected One district court judge has taken an to verbal assaults, threats, and physical expansive view of disability access violence. requirements for public recreation facilities. The case involved a parent who sued a city Minnesota law recognizes the need to protect due to difficulty viewing soccer and baseball certain employees whose jobs make it more games on certain city fields. The court, in likely that they will be the target of assaults interpreting the Minnesota Human Rights Act by escalating assault charges from fifth to (MHRA), held that any public facility is a fourth degree for the assaults of peace public service. Since the MHRA requires that officers, firefighters, school officials, and every public service be accessible to disabled “public employees with mandated duties”. persons, the court concluded that each and Minn. Stat. § 609.2231, subd. 6, specifically every playing field and other public facility defines “public employees with mandated must be fully accessible. The court rejected duties” as agricultural inspectors, the ADA’s limitations on modifications for occupational safety and health inspectors, physical access to older facilities, as well as child protection workers, public health the ADA’s “when viewed in its entirety” nurses, animal control officers, and probation language for program access. The result is a or parole officers. An assault on one of these more restrictive state standard for physical employees who is engaged in the access to public facilities than required by the performance of a duty mandated by law, ADA and the State Building Code. court order, or ordinance, is a gross misdemeanor if the person knows the Response: The League of Minnesota Cities employee is engaged in the performance of supports changes to the MHRA that will official duties and inflicts demonstrable make state accessibility standards bodily harm. compatible with the federal ADA for public services and facilities. The Under current law, an assault on a code Legislature should clarify that a facility enforcement official not enumerated in Minn. that is in compliance with Accessibility Stat. § 609.2231, subd. 6, while performing Code provisions of the State Building Code official business can only be charged as fifth meets the physical access requirements of degree assault, a misdemeanor, unless it the MHRA. State law should also specify results in substantial bodily harm. All code that accessibility requirements apply to enforcement officials should be afforded the public programs and services as a whole, same protections under Minnesota Statutes, rather than to each individual aspect of a and the legislature should amend the statute public program or service. to expand the employees covered by the statute. SD-31. Assaults on Code Response:The legislature should expand Enforcement Officials Minn. Stat. § 609.2231, subd. 6, to include Issue: Many city employees and contractors code enforcement officials. The term code are required to enforce city codes and enforcement official should be defined ordinances and state statutes and rules as part broadly to include public employees and of their job duties. Code enforcement can contractors whose jobs require them to involve denying a building permit, ordering a enforce all administrative codes, rules, landlord to make repairs to rental properties, ordinances, and state laws. Council Packet Page Number 209 of 476 J3, Attachment 2 Protection Act, nor authority to prohibit SD-32. Restrictions on Possession of legal weapons in parking lots or on city Firearms streets and sidewalks. The League also Issue:The Minnesota Citizens Personal supports efforts by commercial property Protection Act, also known as “conceal-and- owners to clarify that the prohibition on carry,” prohibits guns on most school restricting possession by tenants and their properties but forbids other local units of guests applies only to residential rental government from prohibiting loaded firearms property. on their properties. The inconsistencies in the SD-33. Public Safety law’s treatment of different kinds of Communications properties have caused confusion about how the law applies to multi-use facilities, such as Issue: The state role in financing public municipal ice arenas used for school- safety communications has important cost sponsored programs. implications for cities. The state needs to Further, the law gives private property accept financial responsibility for use by owners the right to prohibit guns in their cities of the state public safety radio establishments, but prohibits landowners communications backbone. Cities have from restricting firearm possession by tenants struggled to pay high expenses to participate and their guests without distinguishing in the 800 MHz statewide public safety between residential and commercial system. properties. This creates confusion for In previous state budgets, the Legislature shopping malls and other retail properties turned to revenue sources upon which cities with large common areas that are not depend to cover costs to purchase and operate occupied by the tenants but which the tenants new communications technology and and their customers must cross to access the hardware for computer-aided dispatch, 911 tenant’s space. public safety answering points (PSAPs), and Finally, the Citizens Personal Protection Act interoperable radio communications does not explicitly state the type of firearm a equipment and subsystems in order to finance permit holder may carry, and this has led to the build-out of the state backbone for the ambiguity regarding whether the law is new system. As a result, fees were directed to limited to the right to carry a pistol-length fund revenue bond debt service used to firearm in public or if it allows for any complete the statewide build-out of the firearm, including a military-style assault Allied Radio Matrix for Emergency rifle. Response (ARMER) and the cost of operations of the state public safety radio Response: The League of Minnesota Cities communications backbone. requests an amendment to the Citizens Personal Protection Act that would allow At the federal level, the Federal cities to prohibit firearms in city-owned Communications Commission (FCC) has buildings, facilities, and parks. The League ordered reservation of 700 MHz wireless supports clarifying the Act to state that a spectrum for a national interoperable permit holder, under the terms of a broadband network to meet public safety permit, is allowed to carry a pistol-length communications needs. FirstNet was firearm, but not a semiautomatic military-established in 2012 as an independent style assault weapon. The League is not authority within the National seeking a repeal of the Citizens Personal Telecommunications and Information Council Packet Page Number 210 of 476 J3, Attachment 2 Administration (NTIA) and is responsible for “Clean Slate Tour” to help individuals seal constructing a nationwide high-speed public their records. In June 2025, city police safety wireless broadband network. departments began receiving reports of records expunged from the BCA to be sealed Response: The League of Minnesota Cities in local records systems supports continued and increased state financing of substantial local costs to Additionally, the Adult-Use Cannabis Act of participate in ARMER, including the 2023 requires automatic expungement of acquisition and modernization of certain misdemeanor cannabis-related subscriber equipment, such as portable records. Eligible felony level cannabis- and mobile radios required for ARMER related records are reviewed by the Cannabis users. The League also opposes efforts to Expungement Board to determine whether divert dedicated ARMER funds to the the records meet the criteria identified for state’s general fund. The Legislature expungement. The BCA expunged 57,000 should fund regional cooperation and cannabis misdemeanors in 2024 and will partnerships for effective delivery of 911 review records again in 2025 to identify service, training and use of ARMER. additional eligible cases. The League also urges the FCC to The law limits access to sealed records to continue to support availability of wireless criminal justice agencies, defined as a court spectrum necessary to expand channel or government agency that performs the capacity that allows local public safety administration of criminal justice under agencies to meet future needs of cities and statutory authority – meaning agencies like other local units of government. Child Protective Services, Adult Protection, Department of Human Services Licensing SD-34. Collateral Consequences and Division, and others that are likely unable to Expungements access sealed records. Issue: Collateral consequences of criminal The process to seal local police department records have been discussed at the federal records expunged automatically under these and state levels for many years. Collateral Acts requires substantial city staff time with consequences are adverse impacts on little guidance or resources from the State. housing, employment, professional licensure, City police departments have experienced immigration, etc. They can impact successful several problems with the BCA expungement reentry and rehabilitation of offenders. module: the search function doesn’t work, lists are updated in real ti me and have a case In 2023, the Clean Slate Act (the “Act”) was export limit, spreadsheets have inaccuracies, adopted and became effective January 1, from the list without and cases are removed 2025, which requires “automatic” notice. Additionally, there is a lack of clarity expungement of certain criminal history whether separate charges related to expunged records that previously required a petition charges should also be expunged. For and court order to expunge. example, the BCA may expunge an Since 2023, the BCA and Minnesota Judicial individual’s theft charge, while a separate but Branch have identified qualifying offenses related trespass charge from the same crime and dispositions in the criminal history is not automatically expunged. These system (CHS) and designed computer inconsistencies and technical problems result programing to identify individual records for in a lack of confidence in the process expungement. The Attorney General’s Office implemented by the state. The system started traveling across the state in 2024 on a Council Packet Page Number 211 of 476 J3, Attachment 2 designed by the BCA and the Courts is SD-35. Criminal and Juvenile flawed and requires additional review in Justice Information order to function effectively for local Issue: Criminal justice information agencies. integration is about getting the right Response: The League supports legislation information into the hands of the right people addressing the collateral consequences of at the right time and in the right place to criminal records in a balanced mann er make key decisions throughout the criminal thathelps rehabilitated individuals justice process. The integration of criminal succeed and ensures public safety and justice information remains complex and victim interests are met. multifaceted. It takes time and resources from all levels of government. Public safety is The interests of rehabilitated individuals compromised when there is a lack of seeking expungement to live without the centralized, complete, and accurate criminal stigma of an arrest or conviction record history data about individuals, incidents, and should be balanced with the public’s cases. interest in maintaining criminal histories for future criminal investigations, to City officials are aware of the complex issues support public health, to make safe hiring, raised by the utilization of electronic record rental, and other decisions about keeping, data sharing, and access to records individuals, and consideration of the that identify data subjects. The League of government staff resources required to Minnesota Cities recognizes that one of the seal records in local records systems. ongoing challenges with the integration of criminal and juvenile justice information is The state should review the initial meeting the requirements of the Minnesota implementation of the Acts and the Government Data Practices Act (MGDPA). egislature should make changes as necessary to balance the benefit to More than 500 cities operate police individuals in providing automatic departments. These departments vary expungements, the interests of the public dramatically in fiscal capacity, staffing and public safety, and use of law resources, and technical expertise. Further, enforcement resources. The egislature each municipal law enforcement agency has should also consider granting certain non- unique operating procedures, strengths, and court state agencies with interests in pu blic needs based on the community it serves. The health, welfare, and safety access of sealed League knows the integration and security records. access to criminal and juvenile justice information systems has a significant impact The BCA should provide additional on municipal police business practices. training and resources to law enforcement agencies to ensure a streamlined Response: The League of Minnesota Cities implementation across the state. The BCA supports continued efforts by the state to should solicit feedback from local law integrate and make available criminal enforcement agencies and use responses to justice information systems. This includes evaluate the efficacy oftheir systems and efforts in key areas of funding, data procedures. practices, collaborative relationships, balancing privacy and public safety, and addressing aging systems. The League also supports the Criminal and Juvenile Justice Council Packet Page Number 212 of 476 J3, Attachment 2 Inf legitimate environment for consumers. ormation Advisory Group, cooperation among legislators, law enforcement, Currently, almost 260 law enforcement agencies and over 190 stores in Minnesota corrections agents, court officials, prosecutors, community groups, and and Wisconsin participate in the APS system businesses that build public support for as either a “query only” or “contributing” criminal justice systems. member. To ensure compliance with the MGDPA, All access to and use of information in the comprehensive guidelines and operational APS system is governed by the Minnesota practices should be implemented to Data Practices Act. Only authorized users safeguard access to and use of criminal have access to the data. There is no public and juvenile justice data. However, data access to the data. Further, data that would practices policies should not create new, reveal the identity of persons who are unfunded mandates for local units of customers of a licensed pawnbroker or government or compromise the usefulness secondhand goods dealer are private data on of criminal and juvenile justice systems by individuals and only used for law creating unnecessary barriers. enforcement purposes. Data describing the property in a regulated transaction with a SD-36. Pawn Shop Regulation and licensed pawnbroker or secondhand goods Use of the Automated Property dealer is public. System (APS) Original pawn and secondhand transactions Issue: Minn. Stat. ch. 325J enables licensure reported to the APS carry a $1 fee, regardless for pawnbrokers and provides statewide of the number of items involved. All minimum regulations for the pawn industry. subsequent updates or corrections to transactions are processed without charge. Specifically, the law: Contributing jurisdictions may also add a)Requires pawnbrokers to record all regulatory costs to the transaction fee. The transactions, including details of the item total transaction fee is then typically assessed pawned or sold, information about the by the dealer to the customer. customer and the cost of the transaction. A bill that would weaken Minn. Stat. ch. b) Requires pawnbrokers to maintain records of 325J and restrict the use of the APS has been all transactions for three years, and to make introduced in the Minnesota Legislature. records available upon request to law Specifically, the legislation would forbid law enforcement agencies. enforcement agents from acquiring customer information from pawn and secondhand c)Allows pawnbrokers to charge a maximum shops until they have probable cause to do so, monthly interest rate of 3 percent of the and would eliminate the authority of local principal amount loaned in a transaction, plus units of government to more strictly regulate a reasonable fee for storage and services. pawn and secondhand dealers. The Automated Property System (APS) is a Response:The League of Minnesota Cities computerized system for tracking and supports the authority of cities to regulate monitoring pawn transactions. The purpose and license pawnbrokers, and opposes any of the APS is to provide a tool to verify legislation that would remove the compliance with Minn. Stat. ch. 325J, to help authority of local governments to enact identify and minimize illegal activity, to more restrictive regulations than currently recover stolen property, and to provide a exist in Minn. Stat. ch. 325J. Council Packet Page Number 213 of 476 J3, Attachment 2 The Lreimburse the costs of enforcement and eague supports the authority of cities to set licensing and transaction fees that prosecution as part of any sentence. enable them to recover their full d) Requiring that if a court reduces the regulatory and enforcement expenses. amount paid by a violator, any reduction The League supports cooperation between should be made from the surcharge and law enforcement agencies and the pawn not the fine. industry that enhances the ability to SD-38. Compensation and identify illegal activity and recover stolen Reimbursement for Public Safety property. Access to transaction Services information by law enforcement agencies is vital to accomplishing this goal. Further, Issue: Municipal public safety personnel the sharing of information through the use often respond to emergencies involving non- of the APS is a proactive way to prevent residents. For example, municipal fire, property and other crimes. police, and/or ambulance services may be dispatched to the scene of a traffic accident SD-37. City Costs for Enforcing on an interstate highway involving victims State and Local Laws from other cities or states. Although cities Issue: Cities experience substantial costs can bill for some public safety services they enforcing state and local laws, particularly provide to non-residents, they have limited those related to traffic, controlled substances, authority to collect on unpaid bills. and incarceration of prisoners. The current Cities have also found that auto insurance method in our criminal justice system of policies vary when it comes to coverage for recovering costs for law enforcement and emergency responses. Insurance companies prosecution through fines is insufficient to of those responsible for accidents sometimes meet the costs incurred by local governments. deny payment for fire service. Further, when a violator requests relief from paying the full amount of the fine and Additionally, municipal public safety surcharge, the courts have been more inclined personnel commonly respond to emergencies to waive the fine than to reduce the that require the provision of medical services. surcharge. When this occurs, the local units The medical services provided by the city- of government recover no costs even though employed first responders are part of a the city has incurred expenses. continuum of health care that is covered by insurance companies when provided by Response: The Legislature should review paramedics and other medical care providers; this issue and adopt measures that provide however, insurance policies vary when it for complete reimbursement of the costs comes to coverage for municipally provided incurred by local governments in medical services. Insurance companies of enforcing state and local laws. Solutions those treated by municipal public safety that should be considered include: personnel frequently deny payment for a) Increasing fine amounts. emergency medical services when they are billed by a municipality. b) Removing or modifying county and state surcharges that conflict with cost recovery Thus, when a municipal public safety agency principles. provides first response medical assistance, they commonly do so at the expense of local c) Requiring the courts to consider ordering property taxpayers. restitution from the defendant to Council Packet Page Number 214 of 476 J3, Attachment 2 Resp onse: While emergency medical fund. The surcharge—the amount paid over responses are legitimate functions of and above the fine—is now $75 per citation. municipal public safety departments, the The growth in the surcharge has dramatically costs of providing emergency medical care increased the cost of citations and has caused to individuals should be covered by some to question whether the total of the fine insurance and not be borne exclusively by and surcharge is disproportionate for minor the community’s taxpayers. Cities should matters. To lower the amount imposed on have the authority to bill for the full cost their residents, a number of cities have of first responder medical services they expanded their administrative programs to provide and to collect on unpaid bills. include some offenses traditionally heard in Insurance companies should be required district court, such as minor traffic offenses. to reimburse local governments for the full The increased state surcharges have not been cost of providing these emergency medical used to assist local units of government with services. Finally, auto and homeowner’s the growing costs of enforcement and insurance policies should be required to prosecution. No matter which entity—city, insure for the cost of emergency responses. county or state—issues a statutory citation, The League of Minnesota Cities supports the violator pays between $115 and $127 for resources for the Minnesota Department a minor speeding violation. Of this amount, of Public Safety to acquire and store with the city receives between $13 and $20, and a third-party vendor anti-scale fencing, the county receives just slightly more. pedestrian doors, and vehicle gates for Further, when a violator requests relief from local government facilities to improve paying the full amount of the fine and equitable access to these de-escalation and surcharge, the courts have been more inclined safety tools. to waive the fine than to reduce the The League supports establishing a surcharge. When this occurs, the local units reimbursement program for law of government recover no costs even though enforcement agencies that respond to the city has incurred expenses. protests and demonstrations at the Capitol In 2009, the Legislature amended the statutes complex,the governor's residence, public to allow administrative fines to be issued for facilities, and the homes of elected officials. certain minor traffic offenses. Cities report that the short list of offenses noted in that law SD-39. Administrative Traffic change does not adequately address the needs Citations of local law enforcement. Additional Issue:Cities have implemented authority is necessary to allow law administrative enforcement programs for enforcement officers to implement an violations of local regulatory ordinances, effective program to reduce violations. such as building codes, zoning codes, health Response: The League of Minnesota Cities codes, and public nuisance ordinances. This continues to support the use of city use of administrative proceedings has kept administrative fines for local regulatory enforcement at the local level and reduced ordinances, such as building codes, zoning pressure on over-burdened district court codes, health codes, public nuisance systems. ordinances and regulatory matters that The Legislature has repeatedly increased the are not duplicative of misdemeanor or fine surcharge on district court cases to higher level state traffic and criminal generate revenues for the state’s general offenses. Cities should have the authority Council Packet Page Number 215 of 476 J3, Attachment 2 to is sue administrative citations for low- SD-41. Justice System Funding level moving and equipment violations Issue: Over the past several years, that: 1) would otherwise result in Minnesota’s justice system has operated warnings, and 2) occur on roadways where under consecutive budget shortfalls. Public the speed limit is 45 miles per hour or less. service windows are closed part of each week If state leaders choose not to expand the in many courthouses. Delays in case filings, list of administrative traffic offenses, they hearings and dispositions are building should then change the distribution of throughout the state as staff and judges statutory violation fine revenues so that struggle to keep up with caseloads. The cities are adequately compensated for budget shortfalls limit the ability of the courts enforcement and prosecution costs. to process cases pertaining to shoplifting, trespassing, worthless checks, traffic and SD-40. Juveniles in Municipal Jails ordinance violations, juvenile truancy, Issue: Municipal jails have long served as runaways and underage drinking, consumer holding facilities for suspects who are being credit disputes, property-related and small questioned and/or booked, and for those civil claims, and many other cases. Timely awaiting transfer to a county jail or juvenile processing of these cases is critical to detention facility. In 2012, the Minnesota keeping communities safe and to preserving Department of Corrections (DOC) issued a the quality of life residents expect. reinterpretation of an existing law to say that, The State Court Administrator has advocated “\[W\]here counties have secure juvenile for statutory changes that have resulted in correctional facilities…juveniles are not efficiencies and cost savings while preserving allowed to be held in jail and/or municipal core services. These changes involve lock-ups for any length of time.” consolidating services where practicable and This interpretation is in conflict with a using technology to reduce costs. They provision in Minn. Stat. § 260B.181, subd. 4, include centralized payable processing, use which provides that juveniles can be held in a of e-citations and restructuring of state licensed juvenile facility for up to six hours. mandated programs. Many municipal jails, including those in Response: The League of Minnesota Cities counties where juvenile detention facilities supports a statement by former Chief exist, have been operating under the six-hour Justice Eric J. Magnuson that calls for “an holding law. adequately funded, functioning justice Managers of municipal jails indicate the system that resolves disputes promptly in reinterpretation of the law is contrary to order to ensure the rule of law, protect common practice and presents significant public safety and individual rights and challenges for municipal law enforcement promote a civil society.” The League personnel. supports the use of technology to reduce costs and preserve services. The League Response:The League of Minnesota Cities opposes any changes that would supports a statutory clarification that decriminalize local ordinances, petty would allow juveniles to be held for misdemeanors or misdemeanor offenses, questioning and booking in licensed jail or that would make prosecution of these facilities for up to six hours, regardless of crimes more difficult. whether the county has a juvenile detention facility. Council Packet Page Number 216 of 476 J3, Attachment 2 st significant amount of the special revenues SD-42. 21 Century Policing collected are diverted to the state’s general Issue: Published in May 2015, the fund and are not made available for training President's Task Force on 21st Century reimbursement, and the amount of the Policing Report makes multiple surcharge paid to the state has been recommendations aimed at helping law declining. There is also growing concern enforcement agencies and communities about the impact of the surcharge on strengthen trust and collaboration, while residents, particularly those of low income reducing crime by implementing the next and persons of color, and concern about phase of community-focused policing. The funding policy training based on ticket report contains recommendations related to revenue. six key areas of law enforcement: Response: The League of Minnesota Cities a)Building Trust and Legitimacy; recognizes the need for communities and law enforcement agencies to strengthen b) Policy and Oversight; trust and collaboration, while continuing c)Technology and Social Media; to reduce crime. The League supports the d) Community Policing and Crime Reduction; recommendations of the President’s Task Force on 21st Century Policing Report as e)Training and Education; and well as the training, policy and f) Officer Safety and Wellness. accountability provisions contained in the 2020 Police Accountability Act. To that Many Minnesota communities have st end, the League supports: embraced 21 Century Policing concepts, and municipal police departments throughout the a) POST Board model policies that align with state have adopted policies that align with the recommendations of the President’s st 21 Century Policing principles. The Task Force on 21st Century Policing Legislature and governor made progress Report and the 2020 Police Accountability st toward advancing 21 Century Policing Act; principles statewide by enacting the 2020 b) POST Board approved training Police Accountability Act. opportunities for new recruits and in- In Minnesota, police chiefs have indicated service peace officers that include but are strong interest in securing additional training not limited to procedural justice, st in 21 Century Policing practices for officers. bias/implicit bias and cultural awareness, Demand for training has increased in recent de-escalation, and crisis intervention years, and in 2017 the Legislature responded training; by increasing continuing education c) Increased state and federal funding for requirements for officers, expanding the peace officer training that includes scope of this training to include more reimbursement for tuition, travel, time community policing, and by providing $6 and backfilling the shifts of officers who million per year for training reimbursement are out for training; provided by the Peace Officer Standards and Training (POST) Board. This funding is not d) Permanent funding for police training that permanent and sunsets in 2024. is not based on criminal and traffic ticket revenue; The POST Board is funded through a special revenue account from a surcharge on e) State and federal funding for peace officer criminal and traffic convictions. However, a safety and wellness initiatives; Council Packet Page Number 217 of 476 J3, Attachment 2 f) Stat Response: Cities should have statutory e policies, training and funding that support co-responder programs to authority to require agencies, as well as licensed and registered providers, that enhance the safety and effectiveness of responses involving people with mental operate post-incarceration living facilities illnesses;to notify the city before properties are operated. Cities should be provided with g) State policies, training and funding that the necessary contact information once support non-traditional community based licensed or registered. Providers applying public safety programs; and to operate post-incarceration living h) Authority and grants for municipal police facilities should be required to contact the departments to deploy technologies such city to be informed of applicable local as dash cameras and police body worn regulations. The Legislature should also cameras that enhance both criminal require establishment of non- justice and officer accountability. concentration standards for post- incarceration living facilities to prevent i) The League of Minnesota Cities supports clustering. Finally, licensing or registering tools and incentives such as scholarships authorities must be responsible for and/or reimbursements for local law removing any residents incapable of living enforcement agencies to help with in such an environment, particularly if recruitment and retention barriers. they become a danger to themselves or SD-43. Post-Incarceration Living others. Facilities SD-44. Cybersecurity Issue: Sufficient funding and oversight is Issue: Dating back to at least 2012, U.S. needed to ensure that residents living in post- Defense Secretaries have warned that the incarceration living facilities have United States are increasingly vulnerable to appropriate care and supervision, and that foreign computer hackers who could neighborhoods are not disproportionately dismantle the nation’s power grid, impacted by high concentrations of these transportation system, financial networks and types of facilities. Under current law, government. On a state level, the Governor’s operators of certain post-incarceration living Task Force on Broadband issued facilities are not required to notify cities recommendations regarding cybersecurity in when they intend to purchase single family their 2016, 2017, and 2018 annual reports. housing for these purposes. Cities do not After consistent recommendation by the have authority to regulate the locations of Broadband Task Force, a Legislative post-incarceration living facilities. Cities Commission on Cybersecurity was have reasonable concerns about the safety of established in 2021 to provide oversight of facility residents and neighborhoods, the state’s cybersecurity measures and review particularly in cases of public safety. Cities and make policy recommendations to state also have an interest in preserving a balance agencies and the legislature to strengthen the in residential neighborhoods between this state’s cybersecurity infrastructure. type of facilities and other uses. It is in the However, many of the commission and task best interest of providers to inform and work force recommendations have not yet been with cities before opening a facility in order implemented, which creates cybersecurity to educate providers of community standards vulnerabilities especially at the local level as and expectations. many communities lack the necessary tools Council Packet Page Number 218 of 476 J3, Attachment 2 and cap proactive discussions with lawmakers and abilities needed to protect their systems. The problem is serious. Each month state leaders regarding cybersecurity awareness, prevention, remediation and Minnesota IT Services defends against roughly 27,000 phishing emails and breach notification messages across all state agencies and several SD-45. Legalization of Fireworks cities and counties have been recent targets of ransomware attacks as local governments Issue: In 2002, the state enacted a law continue to remain particularly vulnerable to allowing the sale and use of non-aerial, non- cyberattacks. The passage of the federal explosive consumer fireworks, including Infrastructure Investment and Jobs Act of sparklers, party poppers, snakes, and other 2021 provided additional federal resources to novelty items—relaxing the ban on consumer Minnesota to better prepare the state’s fireworks in place in Minnesota since 1941. preparedness and response to future In 2008, the Legislature further relaxed the cyberattacks. However, even with additional ban by increasing the amount of explosive federal resources, many cities across the state material allowed in legal fireworks. remain vulnerable to cyberattack and are in Local fire service professionals have reported need of hardware and software support. that consumers and law enforcement Response: The League of Minnesota Cities personnel have had difficulty distinguishing supports state action to identify and between legal and illegal fireworks, and that strengthen state and local capabilities. The the 2002 law resulted in greater use in League supports the inclusion of funding Minnesota of illegal fireworks purchased in to evaluate state government cyber other states. vulnerabilities, single points of failure, and According to data provided by the Minnesota fixes, and, based on those findings, create State Fire Marshal Division, injury trends an ability for municipal governments to and dollar losses related to fireworks apply for grant funding or assistance to incidents surged after the consumer fireworks help conduct the same evaluation. ban was lifted. Hospital reports reveal that Additionally, state and federal the annual number of injuries caused by policymakers should: fireworks rose dramatically in 2002 and a) Seek municipal government input on any remains elevated. Likewise, Minnesota Fire direction of state or federal funding that Incident Reporting System records show that seeks to address cybersecurity the annual dollar loss resulting from preparedness and response and ensure city fireworks incidents increased significantly in government participation in any task force 2002 and has since grown. or planning committee tasked with In 2003, the state enacted a number of directing funding priorities for local provisions limiting local authority pertaining government cybersecurity efforts; to fireworks sales. The 2003 law caps the b) Ensure that any grant program allowable municipal permit fee at $100 per administered by Minnesota IT balances vendor selling fireworks with other products, the unique needs of smaller less-resourced and $350 per vendor selling fireworks cities and larger cities and base exclusively. The law restricts cities from cybersecurity funding opportunities on requiring fireworks sellers to purchase locally identified needs; and additional liability insurance. Finally, the 2003 law states that cities cannot prohibit or c) Avoid unfunded mandates related to data restrict the display of consumer fireworks if notification breaches by ensuring Council Packet Page Number 219 of 476 J3, Attachment 2 the di splay and structure comply with systems (MIRS) are installed at traffic National Fire Protection Association (NFPA) signals. Standard 1124. The NFPA is a private Response:Local law enforcement agencies international association of individuals and should have the express authority to use trade and professional organizations. (NFPA photo enforcement technology to enforce Standard 1124 is not a public document and traffic laws. Sworn and non-sworn local is available only for a fee.) law enforcement officers should have the Fireworks products can cause serious injuries express authority to issue citations for and fire loss. The legal sale of consumer traffic violations by mail where the fireworks undermines fire prevention efforts. violation is detected with photographic The sale and use of consumer fireworks evidence. increase local public safety enforcement, SD-47. Operation of Motorized Foot emergency response, and fire-suppression Scooters costs. Issue: Current state statute (Minn. Stat. § Response: The League of Minnesota Cities 169.225) regulates the operation of motorized opposes legislation that would further foot scooters and treats motorized foot relax the ban on the sale and use of scooters similar to bicycles in terms of rights consumer fireworks. The League supports and duties. By statutory definition (Minn. a repeal of the 2002 law that relaxes the Stat. § 169.011, subd. 46), motorized foot ban on the sale and use of consumer scooters must be powered by an engine or fireworks. motor that is limited to a maximum speed of Fees are needed to cover the costs 15 miles per hour. The law provides that an associated with compliance checks, operator must be 12 years of age or older. education, and inspections relating to the Although the law contains safety provisions, sale of a regulated product. The current including a requirement that operators under fee caps do not allow cities to recover these the age of 18 must wear helmets, it does not costs. The League supports allowing cities require training or permits for operators of to establish and impose reasonable fees on any age. retailers that sell fireworks. The League Motorized foot scooters that are part of opposes restrictions on requiring organized sharing or rental businesses rely on fireworks retailers to purchase additional the ability to park in the public right-of-way, liability insurance. Finally, the League especially on public sidewalks, to facilitate seeks repeal of the NFPA reference. customer access and vending. Cities have SD-46. Traffic Enforcement express authority to regulate parking on city Cameras streets and sidewalks. Local government units should also have clear authority to Issue: Drivers who disobey traffic laws can regulate or proscribe unauthorized use of city cause serious traffic accidents and contribute right-of-way for motorized foot scooter to gridlock. In spite of the severity of this parking, to require a permit or license for problem, cities cannot always afford the each scooter or sharing company, and to levels of peace officer enforcement that include terms and conditions dictated by the residents demand. The technology exists to granting authority. enforce traffic laws with photographic In order to protect public health, safety and evidence. For example, there is less running of red lights when motions imaging recording welfare, it is important that cities have clear Council Packet Page Number 220 of 476 J3, Attachment 2 author their capabilities. The required permit ity to regulate motorized foot scooter parking and sharing options. training should advance ebike rider safety. Ebike riders under 18 should be required Response:State law should support the to wear protective headgear just as is ability of local governments to regulate or currently required for motorized bicycle proscribe unauthorized use of city right- riders. The minimum age for both ebike of-way for motorized foot scooter parking, and motorized bicycle operation should to require a permit or license authorizing remain 15 years old. Providing law officers motorized foot scooter parking or sharing with better options for reasonable in the publicright-of-way, and to impose suspicion stops and violation citations will terms, conditions, and local rules on help to prevent accidents and tragedies. businesses seeking such a permit or Where appropriate, bicycles with motors license. should be required to have working lights, SD-48. Operation of Electric turn signals and other safety equipment. Assisted Bicycles SD-49. Copper Wire Theft Issue: Minn. Stat. § 169.222 treats electric Prevention assisted bicycles, or ebikes, as defined in Issue: The high cost of copper has led to an Minn. Stat. § 169.011, subd. 27, with increase in copper wire thefts from private maximum capable speeds up to 28 miles per property as well as streetlights, signal lights hour similarly to bicycles in terms of rights and other public infrastructure. Stolen copper and duties. The law provides limited local wire is sold to businesses that profit from control and prohibits any person under the selling recycled metal. Copper wire thefts age of 15 from operating them. Conversely, compromise public safety by disabling Minn. Stat. § 169.223 and 171.02, subd. 3, streetlights and traffic signals. The cost to require a driver’s license or motorized repair and replace infrastructure damaged by bicycle permit to operate motorized bicycles, copper wire thefts is borne by taxpayers. which are defined in in Minn. Stat. § 169.011, subd. 45, as having maximum Response:The League of Minnesota Cities capable speeds of 30 miles per hour. supports efforts to curtail the theft of copper wire from public infrastructure With the advancements in ebike technology and private property. The League to provide similar maximum speeds as supports increasing penalties for copper motorized bicycles the differences between wire theft that results in damage to public the two are semantic and there is no public property and calls for statutory changes safety difference with their similar urban that prevent metal recycling businesses road speed capabilities. from purchasing and reselling stolen Response:The League of Minnesota Cities copper. supports modifying state statute to include The League supports the implementation the same driver’s license or motorized of an online database for the Department bicycle/electric assisted bicycle permit for of Commerce, Department of Public the riders of any bicycle whose motor(s) Safety and local law enforcement agencies are capable of propelling the bicycle to have access to sellers contact without the rider pedaling to promote information and types of products sold rider safety. State statute should be each day at metal recycling businesses. updated to regulate the use of bicycles with motors including ebikes according to Council Packet Page Number 221 of 476 J3, Attachment 2 under current state statutes it is not a crime to SD-50. Drug Courts sell or possess drug paraphernalia. The Issue:The League of Minnesota Cities definition of “drug paraphernalia” does not recognizes the impact of substance abuse on include hypodermic syringes or needles or individuals, communities and taxpayers. any instrument or implement which can be According to the National Council on adapted for subcutaneous injection. The laws Alcoholism and Drug Dependence, the pertaining to the sale of drug paraphernalia relationship between alcohol and drugs and conflict with some previously adopted local crimes--including domestic abuse and ordinances, and the decriminalization of violence, underage drinking, robbery, assault possession of drug paraphernalia may create and sexual assault--is clearly documented. unintended consequences for law The National Center on Addiction and enforcement. Substance Abuse reports 65 percent of the Response:The League of Minnesota Cities nation’s inmates meet certain medical criteria supports a requirement for the for substance abuse and addiction, but only Department of Public Safety to collect data 11 percent received treatment for their during the implementation of the 2023 addictions. changes to drug paraphernalia laws. If the Drug courts are an effective problem-solving laws are shown to have unintended public approach for dealing with alcohol and other safety consequences, the League supports drug addicted offenders in the judicial passage of legislation that would limit the system. Drug courts closely monitor the sale and possession of drug paraphernalia. defendant's progress toward sobriety and SD-52. Regulation of Massage recovery through ongoing treatment, frequent drug testing, regular mandatory check-in Therapists court appearances, and the use of a range of Issue: The state does not currently license immediate sanctions and incentives to foster nor register massage therapists. Minn. Stat. behavior change. ch. 146A is the Complementary and In drug court, judges collaborate with other Alternative Health Care Practices Act which traditional court participants (prosecutors, identifies prohibited provider conduct and defense counsel, treatment providers, authorizes the Minnesota Department of probation officers, law enforcement, Health to take disciplinary action against educational and vocational experts, noncompliant providers who are not community leaders and others), whose roles registered or licensed by a health-related have been substantially modified, but not licensing board. The office has authority to relinquished, in the interest of helping respond to allegations of prohibited behavior defendants deal with addiction. through an investigatory process but this function is triggered mainly by consumer Response: The League of Minnesota Cities complaints and there is no requirement that supports the efforts of drug courts to the office take any action. Additionally, address substance abuse and reduce crime. resources for these purposes have been The League supports funding for severely limited. additional drug courts. In absence of any required statewide SD-51. Drug Paraphernalia standards or regulation, several cities have Issue: In 2023 the legislature modified entered the traditional state domain of health- several provisions pertaining to the sale and care licensure by enacting ordinances that possession of drug paraphernalia. As a result, Council Packet Page Number 222 of 476 J3, Attachment 2 req local law enforcement agencies access to uire all massage therapists to obtain a local professional license and many cities national criminal history databases. have also required bricks and mortar b) Prevents individuals from conducting establishments to obtain a business license. criminal activities such as prostitution and These ordinances help local law enforcement sex trafficking out of establishments officers to differentiate between legitimate operating as massage therapy facilities. providers and businesses engaged in sex c) Improves provider compliance with Minn. trafficking and prostitution as well as provide Stat. ch. 146A and requires the state to for health and sanitation standards. take action in response to noncompliance. City staff and law enforcement have spent d) Protects the public from injury and from much time and resources conducting other conditions that may result in harm. statewide criminal background checks; investigating massage therapist accreditation SD-53. Regulation of Adult-Use programs to determine legitimacy and Cannabis and Cannabinoid credibility; and inspecting and monitoring Products establishments due to resident complaints and concerns. This has resulted in different Issue: The 2023 legislative session enacted rd procedures, requirements and fee structures legislation making Minnesota the 23 state across the state. Despite the thorough work of across the country to legalize adult-use city staff and law enforcement, when an cannabis. The new law, ch. 342, created a illegitimate business suspects investigation, it statewide regulatory framework for adult-use will often close down and re-open in a cannabis establishing state-issued licenses for different city. Without any sort of statewide the industry from seed to sale. The law also database of these businesses, one city’s expunged certain prior convictions related to solution may become another city’s problem. cannabis, implemented a tax on cannabis and cannabinoid products, and updated criminal Additionally, local law enforcement agencies penalties related to cannabis. do not have access to national criminal history data. This has allowed those with The regulatory structure includes local criminal convictions in other states related to regulation, with cities responsible for sex trafficking and prostitution to obtain registering certain cannabis businesses that massage therapy business and/or professional are licensed by the state and conducting licenses in cities in Minnesota. Allowing compliance checks. The law requires access to this information could help cities businesses to comply with local zoning prevent sex trafficking across state lines. ordinances, authorizes cities to implement retail registration limits, and authorizes cities Response: The League of Minnesota Cities to implement ordinances to establish a petty supports the statewide registration or misdemeanor for public use of cannabis and licensure of massage therapists that would cannabinoid products. These authorizations not pre-empt the ability of cities to aside, cities have very limited discretion in regulate massage therapy establishments. the regulation of the industry. The League also supports legislation pertaining to the practice of massage In 2025 the legislature eliminated the Local therapy that accomplishes the following: Government Cannabis Aid account, the only cannabis specific funding provided to cities a) Helps cities establish legitimacy of and counties. This aid was critical part of the providers and businesses applying for a state and local relationship for administration local license to practice, including allowing Council Packet Page Number 223 of 476 J3, Attachment 2 and im plementation, however, it was an organizational license and a premises repealed before it was ever dispersed to cities permit(s) from the state). This step was and counties. The current law caps the retail removed when the state established a registration fee cities may charge a cannabis perpetual organizational license and premises retailer in their city. These fees range from $0 permitting system. Because these licenses to $1,000. and permits are issued by the state, under the current system a city’s authority over these licensees is limited to: 1) approval of the Many questions remain for what is to be seen initial premises permit; and 2) enforcement from the Office of Cannabis Management of the city’s lawful gambling ordinance. and the cannabis industry as it is established. Some city officials have concerns that Cities will be a critical component of the gambling organizations will be more apt to regulation and enforcement of this industry. ignore local regulations (such as spending the required percentage of lawful gambling Response: In any future legislation, the expenditures in the city’s trade area) if they following should be considered: don’t need the city’s approval for the renewal a) Any legislation considered should be of their state-issued premises permits. responsive to the needs of cities as they Response:The licensee should be required arise from the implementation of this to obtain local approval on an annual industry. basis, or at longer intervals as determined b) Legislation should restore the Local by the city, and file the resolution of local Government Cannabis Aid fund to ensure approval with the Gambling Control adequate funding for local governments to Board. implement the law and respond to challenges resulting from the cannabis SD-55. Liquor Liability Insurance industry. Cities and counties should be Limits able to recover costs from assisting Issue: Minn. Stat. § 340A.409 requires that businesses and implementing the law “no retail license may be issued, maintained through fees or other revenue sources. or renewed unless the applicant demonstrates c) Legislation should increase, and at a proof of financial responsibility with regard minimum maintain, any discretion and to liability imposed by Minn. Stat. § local control granted to cities in current 340A.801” relating to the sale of alcoholic legislation. beverages. The minimum limits of liability d) The League opposes any proposals to currently in statute require $50,000 of diminish local control related to the coverage because of bodily injury to any one cannabis industry. person in any one occurrence, $100,000 SD-54. Lawful Gambling and Local because of bodily injury to two or more Control persons in any one occurrence, $10,000 because of injury to or destruction of Issue: As part of the 2009 reforms to lawful property of others in any one occurrence, gambling statutes, some local control was $50,000 for loss of means of support of any removed from the lawful gambling process. one person in any one occurrence, $100,000 Previously, the lawful gambling licensee for loss of means of support of two or more would have to obtain the city council’s persons in any one occurrence, $50,000 for approval as part of its application to renew other pecuniary loss of any one person in any the organization’s premises permit (some one occurrence, and $100,000 for other forms of lawful gambling require obtaining Council Packet Page Number 224 of 476 J3, Attachment 2 pecuni ary loss of two or more persons in any SD-57. Liquor Licensing of Non- one occurrence. These limits have not been Contiguous Spaces updated since at least 1985 and would Issue: During the COVID-19 outbreak, provide very little relief to persons impacted restaurants and bars were able to open at by an intoxicated person. While cities can limited capacity for in-person service with choose to require higher limits of liability spacing requirements between tables both than required by statute, it may create inside and outside. To provide opportunities competitive imbalance between communities for businesses to open and serve the public, if the limits are not consistent. many cities allowed for non-contiguous Response: The minimum limits in Minn. spacing of tables outside despite Stat. § 340A.409 should be increased to requirements outlined in Minn. Stat. § $500,000 per occurrence with a $500,000 340A.410, subd 7. This allowed customers to annual aggregate. go to restaurants and bars and remain outside, which had been deemed preferable to dining SD-56. On-Sale Liquor or Wine indoors in mitigating the risk of exposure to Licenses the virus. This model proved to be successful Issue: Minn. Stat. § 340A.404 defines the for many businesses and enjoyed by establishments to which a city may issue an residents. Cities would like to respond to on-sale intoxicating liquor license. Every customer and business expectations and year cities see local businesses and continue being authorized to issue licenses to organizations with innovative models for non-contiguous spaces. event centers, food halls, arenas, boutiques, Response:The increased flexibility during museums, art spaces, and cultural or the COVID-19 pandemic allowed community centers that are not clearly named businesses and cities to partner in response in this statute but would like to obtain a to the pandemic and city residents have liquor license. Several cities have received enjoyed increased seating options. The special legislation allowing their League of Minnesota Cities supports municipalities to issue on-sale liquor or wine amending Minn. Stat. § 340A.410 to allow licenses to these types of entities. However, for licensing of spaces that are not this process interferes with the ability of compact and contiguous during and after municipalities to respond expeditiously to the pandemic including state-wide general innovative business models, control the authority for cities to establish social placement and operating manner of these districts entities, and limits municipalities from providing licenses for businesses that would SD-58. Wine and Off-Sale Licenses generate local tourism and revenue. Issue: Minn. Stat. ch. 340A authorizes cities Response:The Legislature should to issue liquor licenses to various modernize and expand the list of establishments within their jurisdictions, but establishments in Minn. Stat. § 340A.404 in virtually all cases, the license issued by the to which municipalities are authorized to city is not valid until the state approves it. issue on-sale liquor or wine licenses, This is true for such commonly issued subject to restrictions imposed by the licenses as wine, off-sale intoxicating liquor municipality, to allow for innovative and temporary on-sale intoxicating liquor business models and economic licenses. The result is extra time spent for development within their jurisdiction. city staff, as well as a time-based commercial Council Packet Page Number 225 of 476 J3, Attachment 2 impa Response:The League of Minnesota Cities ct to the business pursuing the original license. opposes any proposal that could result in increased risks of youth access to alcohol Additionally, if a business applies for an on- and tobacco products and supports sale wine license, the state may choose to statutory changes that assist in reducing conduct an inspection of the business further youth access to alcohol and tobacco delaying approval of the license and full products. The League supports locally- operation of the establishment. This determined alcohol compliance check inspection is often in addition to a city programs, but any state mandate for certificate of occupancy inspection and a alcohol compliance checks should come county health inspection. with state-supported funding initiatives to Response: The Legislature should remove support these locally-determined the requirement of approval by the compliance efforts. The Legislature should commissioner for city-issued liquor consider a grant program supporting licenses and simply require cities to notify locally-based community partnerships that the state of newly issued and renewed can quickly and effectively respond to licenses as is already the case for youth access problems. intoxicating on-sale liquor licenses and all SD-60. Consumer Small Loans 3.2-liquor licenses. If the state requires an inspection to certify an on-sale wine Issue: Consumer small loans, also known as license, this should be delegated to either “payday loans,” are short-term cash loans the city or county to be conducted at the based on the borrower's personal check held same time as other inspections. This will for future deposit or on electronic access to expedite the process for both the state and the borrower's bank account. Borrowers write the business. a personal check for the amount borrowed plus the finance charge and receive cash. In SD-59. Youth Access to Alcohol and some cases, borrowers sign over electronic Tobacco access to their bank accounts to receive and repay payday loans. Lenders hold the checks Issue: To promote public safety and public until the borrower’s next payday when loans health, cities have an interest in preventing and the finance charge must be paid in one youth from obtaining alcohol and tobacco. lump sum. For example, the Minnesota Department of Health reports that 80 percent of adult Consumer small loans are typically predatory smokers had their first cigarette before the in nature. According to Debt.org, an age of 18; reducing youth tobacco use may organization dedicated to helping consumers help prevent adverse impacts of tobacco in understand and overcome debt, predatory the future. To this end, many cities operate lenders typically target minorities, the poor, compliance check programs in an effort to the elderly and the less educated. They also discern the current level of youth access and prey on people who need immediate cash for to reduce youth access. Statewide, a number emergencies such as paying medical bills, of cities have created community making a home repair or car payment. These partnerships with their court systems, local lenders also target borrowers that do not businesses, and school districts to quickly qualify for conventional loans or lines of address problems associated with youth credit due to credit problems or access to alcohol and tobacco. unemployment. Council Packet Page Number 226 of 476 J3, Attachment 2 Resp revocation of a license, for repeated onse: The League of Minnesota Cities seeks statewide legislation that would violations of municipal laws. protect consumer small loan borrowers Response:It is appropriate for mobile against predatory lending practices. Also, businesses to be licensed by the state or its cities should have explicit authority to designees in the same manner as non- regulate consumer small loan conditions mobile business establishments. The state including the ability to cap finance charges should also set minimum fire and health and interest rates. safety standards. However, such state regulation must not preempt the ability of SD-61. Regulation of Mobile local governments to enact reasonable time Businesses and place restrictions on the operation of Issue: The transient nature of mobile mobile businesses within their businesses presents unique challenges to jurisdictions. traditional city zoning and permitting and SD-62. Regulation of Party Buses may create an unfair competitive advantage and Boats-for-Hire over traditional businesses that pay property taxes and generate income for a city. Cities Issue: A party bus (also known as a party also make significant investments in the ride, limo bus, limousine bus, party van, or development of retail districts and luxury bus) is a large motor vehicle usually downtowns and have a strong interest in derived from a conventional (school) bus or maintaining a level playing field for brick coach, but modified and designed to carry 8 and mortar establishments. or more people for recreational purposes. In Minnesota has seen a sharp increase in the Minnesota, these vehicles are regulated by number of food trucks (Mobile Food Units) default under Minn. Stat. ch. 221 (the chapter operating throughout the state. Food trucks of law dealing with motor carriers) and are licensed as food and beverage service registered by the Minnesota Dept. of establishments by the Minnesota Department Transportation’s (MnDOT’s) Office of of Health (MDH) or by local jurisdictions Freight and Commercial Vehicle Operations. pursuant to an MDH delegation agreement. The regulations require operators to carry Food trucks are prohibited from operating in commercial insurance, have an annual the same location for more than 21 days vehicle inspection and be registered with the without approval of the regulatory authority. state. Party bus drivers are required to hold a current commercial driver’s license (CDL) In 2015, the Legislature authorized the Board issued through the Minnesota Dept. of Public of Cosmetologist Examiners to adopt rules Safety’s Driver and Vehicle Services governing the licensure, operation and Division. inspection of “Mobile Salons” which are operated in a mobile vehicle or mobile A boat-for-hire is a watercraft used by structure for exclusive use to offer personal owners and operators to carry passengers for services defined in Minn. Stat. § 155A.23, hire. Minn. Stat. § 326B.94 and Minn. Rules subd. 3. The rules must prohibit mobile 5225.6000 through 5225.7200 govern the salons from violating reasonable municipal requirements of boat owners and operators restrictions on time and place of operation of carrying passengers for hire on Minnesota’s a mobile salon within its jurisdiction, and inland waters. These vessels must have a shall establish penalties, up to and including permit to carry passengers for hire. They must have an annual safety inspection and a Council Packet Page Number 227 of 476 J3, Attachment 2 dry-doc defined by Minn. Stat. § 617.292, subd. 3, k inspection performed by Minnesota Department of Labor and Industry boiler on party buses and boats-for-hire; inspection personnel once every three years c) Explicit authority for peace officers to (or annually if the hull is made of wood). investigate suspicious activities on party The vessels must also be operated by a buses and boats-for-hire and to cite licensed master and must follow all individuals on board who are involved in Minnesota Dept. of Natural Resources’ illegal activities; and boating and water recreation regulations. d) Requiring the appropriate authority to Party buses and boats-for-hire are sometimes utilize existing authority to impose fines, chartered for celebrations such as weddings, or to deny, suspend, or revoke permits or proms, bachelor and bachelorette parties, registration certificates held by operators birthdays and tours. Party buses are also found to have adult entertainment, drug, popular for round trips to casinos and or underage consumption violations. sporting events, and personalized drop-offs and pick-ups at various bars and nightclubs. SD-63. Environmental Protection Additionally, both party buses and boats-for- Issue: Cities demonstrate strong stewardship hire have become popular settings for adult for the protection and preservation of the entertainment. environment. Minnesota municipalities have Cities have seen a sharp increase in the historically been the leading funding source number of party buses and boats-for-hire for environmental protection and being used as venues for illegal activities improvements. Municipal efforts include such as underage drinking, drug use and sex environmental protection through wastewater trafficking. The transient nature of party treatment, wetland restorations, stormwater buses and boats-for-hire presents unique treatment, public utility emission reductions, challenges to traditional city zoning, brownfield cleanup, safe drinking water permitting and law enforcement. While state programs, as well as others. laws regulate requirements for the operation At some point, however, the diminishing or of party buses and boats-for-hire, the law is nonexistent environmental benefit received silent on enforcement, penalties, inspection from additional efforts is fiscally and liability related to illegal activities that irresponsible. The programs are often occur in party buses and on boats-for-hire. improperly designed to meet their stated Response: The League of Minnesota Cities goals. Additionally, the absence of funding supports changes to state statutes that by the state and federal government has would help reduce criminal activities removed an essential restraining feature in taking place on party buses and boats-for- program design and implementation. hire. Specifically, the League supports: Agencies are less accountable to the governments that mandate environmental a) Creation of statutory definitions of “party programs when they do not have to find the bus” and “boat-for-hire” that contain money to implement the programs. permissible uses of the vehicles; Specific problems faced by cities include: b) Prohibition on offering or allowing “adult entertainment” as defined by Minn. Stat. § a) New programs or standards are continually 617.242, “sexual conduct” as defined by adopted without regard to the existence, Minn. Stat. § 617.241, or “nudity” as attainability or cost of existing programs and standards. Council Packet Page Number 228 of 476 J3, Attachment 2 b) Regul a) The municipal system is proven to be atory bodies fail to consistently use the best science available and the most current substantially less cost-effective and substantially less beneficial to the and accurate data when establishing water quality standards. environment; and c) Regulatory bodies impose new permit b) The operation of these systems will not requirements without going through create a stranded public investment in the rulemaking. Instead, the agencies rely on existing system. internal documents, program strategies, and Sufficient state and federal financial “best professional judgment of staff” when assistance should be provided to local setting permit criteria. governments when complying with state d) Regulatory bodies approve permits and and federal infrastructure requirements, programs that compete with traditional particularly with regard to wastewater, municipal services and encourage urban stormwater, and drinking water facilities. sprawl. This behavior puts at risk the public The Minnesota Pollution Control Agency investments and growth management efforts (MPCA) should streamline its permitting cities have made when planning for future and re-issuing processes to allow for development. effluent standards and permit e) Permit fees and other cost-transfer elements requirements to be known earlier, thereby of federal and state programs do not provide giving communities more time to defend an incentive for environmental agency against contested case hearings. efficiency, policy prioritization or risk The Legislature should require the MPCA assessment. Additionally, all residents of the to make its determination regarding state contribute to the need for wastewater, permit-required submittals, permit drinking water, and stormwater treatment and modifications, and the reissuance of a benefit from the resulting improved water permit within a reasonable set time period, quality. These factors make the state general and require the MPCA to make its fund an appropriate source for significant determinations and reissue the permit portions of state water program funding. within that reasonable set time frame. f) Third-party environmental advocacy groups The state should ensure townships are create significant hardships on cities by required to meet the same environmental threatening litigation even when the best protection and regulatory requirements as science available may not support the groups’ cities. positions. Legislation should be passed that requires g) Cities are often required to pay the cost of state agencies to establish permit removing problem materials from the waste requirements only when the criteria they stream, rather than preventing the problem at are using is developed through the rule- the consumer product or manufacturing level. making process. Response: Alternative wastewater State agencies need to develop science- treatment and cooperative service systems based standards and quantify new effluent should be prohibited from operating in standards, ensuring that they are areas that can reasonably and effectively scientifically and economically practicable. be served by existing municipal systems, State and federal agencies should unless: coordinate and integrate their monitoring Council Packet Page Number 229 of 476 J3, Attachment 2 data t o assure that all pertinent data is other contaminants. Scientific studies of available and utilized.these waters must be conducted to determine how much pollution they can handle (Total The state general fund is an appropriate Maximum Daily Loads, or TMDLs). The source for state water program funding. pollutant load reduction requirements will Municipal water permit fees should only affect municipal, industrial, and agricultural be increased if new revenue is needed practices and operations along any river, because of increased costs of processing stream or lake determined to be impaired. municipal water permits or if the funds While the sources of 86 percent of the would go for specific scientific research, pollutants affecting Minnesota waters are technical and financial support for cities, non-point sources, there will also be new or agency staffing needed by cities to costs and requirements for point-source address environmental and public health dischargers, like municipal wastewater concerns, not as a means to generate new treatment facilities. Municipal stormwater revenue to cover other budget shortfalls. systems will also face increased protective Additionally, the Legislature should create requirements and regulation as part of the effective, producer-led reduction, reuse, state’s impaired waters program. and recycling programs to deal with a Response: The League of Minnesota Cities product’s lifecycle impacts from design will work actively with the administration, through end-of-life management and the Legislature, and other stakeholders in should regulate products and compounds the design and implementation of that damage water quality, sewer Minnesota’s impaired waters program to: collection, stormwater or wastewater treatment systems at the consumer and a) Ensure equitable funding solutions are manufacturing levels, not just at the found, such as the state general fund or treatment and infrastructure maintenance bonding, that broadly collect revenue to level. Examples include requiring accurate address this statewide problem; labeling as to whether disposable wipes b) Support legislative appropriation of can be safely flushed and creating constitutionally dedicated clean water incentives for private salt applicators to revenues that will supplement traditional reduce the volume of salt they apply. sources of funding for these purposes, not be used to cover budget cuts, backfill past SD-64. Impaired Waters program reductions, or to otherwise Issue:Despite the billions of dollars that supplant normalstate spending on water Minnesota municipalities have invested and programs; continue to invest in wastewater and c) Direct the majority of funds collected by stormwater management systems, and best the state for impaired waters into management practices to protect, preserve, programs that fund municipal wastewater and restore the quality of Minnesota’s surface and stormwater projects, and for state waters, the quality of some of Minnesota’s programs needed for municipal surface waters does not meet federal water wastewater and stormwater permitting quality requirements. The federal Clean and technical support, including the Clean Water Act requires that further efforts be Water Revolving Loan Fund, Wastewater made by the state to reduce human impacts Infrastructure Fund, TMDL Grants on surface waters that are determined to be Program, Small Community Wastewater impaired due to high pollutant loads of Treatment Grant and Loan Program, and nutrients, bacteria, sediment, mercury, and Council Packet Page Number 230 of 476 J3, Attachment 2 othek) Clarify state water quality mandates so r state programs that provide financial resources for city wastewater cities know specifically what they are required to do and what methods of treatment facilities, septic tank replacement, stormwater management achieving those outcomes are acceptable to projects, and other city water quality state and federal regulators. improvement and protection projects; SD-65. Municipal Public Water d) More adequately cover the current five- Supplies year wastewater infrastructure funding Issue:Essential residential water supplies need projection of more than $1.65 billion; provided by public water supply systems are e) Recognize and address the upcoming costs classified as the highest priority for the use of of stormwater management infrastructure public water under Minn. Stat. §103G.261. and operation on municipalities from new Minnesota cities spend significant resources regulatory mandates and load reduction meeting their responsibility to providing safe, requirements; reliable, affordable water to their residents in a sustainable manner. That is an essential f) Allow flexibility in achieving pollutant element in assuring a healthy and stable load reductions and limitations through future for public health, the environment, and offsets or trading of pollutant load economic development. As a result, reduction credits for both point and non- municipal water suppliers have collected point load reduction requirements within some of the most current and accurate watersheds; information available on local water g) Recognize and credit the work underway conditions. and already completed by local units of The state requires extensive planning and government to limit point and non-point permitting processes for municipal water source water pollutant discharges; suppliers to document that their systems are h) Recognize the diversity of efforts and drawing water at sustainable levels, that the needs that exists across the state; water is safe for human consumption, that i) Ensure the best science available is used to they have land use controls in place to protect accurately determine the sources of public water supplies from contamination, pollutant load in order to maximize that adequate plans exist for emergency and positive environmental outcomes and high demand situations, and that rate minimize unnecessary regulatory and structures meet state statutory requirements. financial burdens for cities by correctly Those systems are constantly becoming more accounting for and addressing agricultural technologically, environmentally, and and other non-point pollutant sources; economically efficient. City water suppliers have invested many billions of dollars to j) Ensure the state requires that the MPCA develop their utility systems and retain control of the TMDL development infrastructure in a manner that meets those process and that all scientific research criteria. related to TMDLs is conducted by the MPCA or qualified, objective parties Demand and supply sides of this issue are pursuant to state contracting, being addressed throughout the state. Cities procurement, and conflict of interest laws; have established educational programs, and incentives, and local water use restrictions to further improve water conservation efforts, Council Packet Page Number 231 of 476 J3, Attachment 2 whil for smart water use, exploring impacts e appliances and plumbing fixtures are becoming more efficient in their water use. and creative mitigation options at contaminated sites, on ways to incent and Furthermore, stormwater is being infiltrated into the ground at unprecedented levels as enable alternate uses of stormwater, and part of municipal stormwater permit ways to make sure that all water users requirements and is being redirected for play a role in ensuring that water supplies irrigation purposes in some cities. are being managed in a manner that is sustainable for future residents. Those Despite those efforts, there are places in the solutions need to keep in mind that state where monitoring data indicates that essential residential water use is the water may be being used faster than the highest preferred use of public water supply can sustain, particularly in the case of supplies. underground aquifers. These issues are very complex, however, and causes and effects are Finally, in cases where sound management not always easily documented or understood. of water resources will require substantial City water supplies are not the only users of modifications in public water systems that that water, either. Industries, smaller private were previously determined to be wells, agricultural operations, irrigation adequate, the state needs to be a partner in systems, and contamination containment and developing cost-effective solutions and in treatment can all be major drains on local providing the technical and financial water supplies. resources to make those changes to prevent communities from being Hard facts and sound science need to be used economically uncompetitive. to determine the best courses of action to assure that safe, reliable, affordable water SD-66. Municipal Electric Utilities supplies are available to future Minnesotans. Issue: Municipal electric utilities provide Those approaches will vary considerably essential community services to many depending on local water and soil conditions, Minnesota cities. The League of Minnesota the types and sizes of users, and the quantity Cities works closely with the Minnesota and quality of available water. They also Municipal Utilities Association (MMUA) to need to be coordinated between the many identify issues of concern and to support their state entities that play a role in water legislative and administrative efforts to management and regulations so that scarce address them. local resources are not wasted and efforts are not counterproductive to other priority How those entities are regulated by the state, environmental and public health results. how their service territory is defined and amended, how their very limited customer Response: The state should lead the base is protected, and how they are treated in development of sound scientific relation to other types of electric utilities is information on water supply, aquifer important to them remaining affordable, recharge, and groundwater availability efficient, and effective. and quality, making good use of the existing studies, data, and staff expertise of Currently, the legislative proposals have been municipal water suppliers. made to allow unregulated third-party electricity sales from generators directly to The state should also be working to the customer, circumventing long-established remove barriers to water re-use, aquifer consumer protections. In some cases, recharge, encouraging cultural changes in municipal utilities would be required to water use practices, applying technology Council Packet Page Number 232 of 476 J3, Attachment 2 “whe el” energy from third parties across their SD-67. State Support for Municipal power lines to retail customers in violation of Energy Policy Goals the utility’s exclusive service area rights. Issue: The State of Minnesota has adopted an Another way to arrange third-party sales is by aggressive energy policy focusing on the selling electricity from solar panels or other promotion of energy efficiency and the generating equipment sited on a consumer’s expansion of renewable energy with the goal own property to retail customers, while of achieving a reduction in carbon generation maintaining ownership of those panels or through reduced use of fossil fuels. To meet equipment. The equipment owner would state energy and greenhouse gas reduction charge for electricity it provides, yet rely on goals, efforts at the city level will be the local utility to provide reliable service to essential. That local work will generate the customer at all other times. While such significant economic benefits both in arrangements may seem convenient to an communities where it is done and more unregulated third-party, they come at a broadly, as industries and professional significant cost to the utilities and contractors expand their services throughout subsequently, to the rate payers of that utility. the state. Providing municipal reliable utility services Minnesota cities share this goal, as comes with certain unavoidable expenses demonstrated by over 140 cities voluntarily such as electric generation, power lines, participating in the GreenStep Cities poles, and substations. These types of fixed program. However, already strained budgets costs are on-going and should be equitably and reserves at the state and local level have shared by the local customers. However, both limited the ability of the state to assist local current and previously proposed changes to units of government in furthering specific state law would give third-party providers an projects that support the overall state goal. In advantage subsidized by the remaining rate addition, institutional knowledge and payers and/or taxpayer. capacity of most cities limits their ability to explore energy efficiency or renewable Response:The legislature should support energy projects, even projects whose energy and maintain the current regulatory “payback” could finance project capital costs. compact, and recognize the value of the dependable services provided by As the role cities are playing in reducing municipal utilities, and the fact that energy use and developing renewable energy municipal utilities are accountable directly generation expands, how those efforts are to residents. Further, the legislature affected by electric utility practices also should reject giving third-party providers becomes more important. Utility billing is any advantage over municipal utilities, as not consistent between electric utilities, with well as any other effort to de-regulate many using different rate categories, utilities. significantly complicating B3 benchmarking reporting and billing transparency. For Additionally, current state practice is for projects on which a utility provides capital, the Department of Commerce and Public the length of time over which city projects Utility Commission to require payment of are amortized can also be extended to the quarterly fees on municipal utilities to the point that energy cost savings are eliminated, Department of Commerce three quarters even with substantial demand reductions. The in advance. The state should bill for those application of demand and peak demand rates fees only for the upcoming quarter. Council Packet Page Number 233 of 476 J3, Attachment 2 in r stations to support a transition to electric epayment schedules can also reduce or eliminate energy cost savings. vehicles and equitable access to charging stations; Response:The League of Minnesota Cities calls on our legislators and state executive k) Create a grant and loan program to offset agencies charged with accomplishing the start-up capital expenses for projects state’s energy policy goals to assist cities, identified where the savings in energy townships and counties with tailored costs can offset capital project costs or efforts to identify appropriate energy where projects are needed to meet energy efficiency and renewable energy projects policy goals; for undertaking at the local level. Among l) Clarify state law so that cities may use those tools, the state should: public utility franchise agreements to a) Provide grants to support the development advance energy policy goals, and; of local climate action and adaptation m) Recognize that for the state to meet its plans and tie those plans to funding made goals, hands-on state energy agency available to implement them; technical expertise needs to be made b) Where possible, build on existing available to cities at no cost. assistance and incentive programs to limit SD-68. Urban Forest Management duplication of effort, improve efficiency, Funding and minimize new tracking and reporting requirements; Issue: Urban forests are an essential part of city infrastructure. Dutch elm disease, oak c)Help ensure that reduced energy use wilt disease, drought, storms, and emerald results in reduced energy costs by ash borer threaten our investment in trees. addressing problems with amortization The costs for control and removal can be timing; catastrophic and put pressure on city budgets. d) Have laws that allow and support utility The Minnesota Department of Natural grant and loan programs; Resources, through its Urban and Community Forestry program, and the e)Create a grant program to assist in Minnesota Department of Agriculture, covering local capital costs to install solar through its Shade Tree and Invasive Species energy systems on public buildings; program, currently have regulatory authority f) Use proceeds from the Renewable to direct tree sanitation and control programs. Development Fund to support local Although these programs allow for government projects; addressing some tree disease, pest, and other g) Provide increased flexibility for utilities to problems, funding levels have been work with local government; inadequate to meet the need of cities to build capacity for urban tree programs and respond h) Support development of a unified electric to catastrophic problems. Cities share the energy billing and usage structure that is goal of the state’s Releaf Program— easily imported into a B3 Benchmarking promoting and funding the inventory, tracking system; planning, planting, maintenance, and i) Develop a framework that allows Property improvement of trees in cities throughout the Assessed Clean Energy Programs; state. In addition, economic gains for stormwater management, tourism, recreation, j) Play an increased role in providing a and other benefits must be protected from comprehensive network of charging Council Packet Page Number 234 of 476 J3, Attachment 2 tree allow cities of any size to opt to restrict the loss. A lack of timely investment in urban forests costs cities significantly more application or use of Minnesota Department of Agriculture designated in the long run. pollinator-lethal pesticides within their Further, more and more cities are facing community. immediate costs for the identification, removal, replacement, and treatment of SD-70. Election Issues emerald ash borer (EAB) as it spreads across Issue: Cities play an important role in the state. The state has no program to assist administering state and federal election law cities in covering those expenses. and conducting voting activities. Response: The League of Minnesota Cities Response: To strengthen the effectiveness supports funding from the general fund or of elections administration, the Legislature other appropriate state funds for a state should: matching grant program to assist cities with building capacity for urban forest a) Seek the input of cities, townships, management and meeting the costs of counties, and school districts on proposed preparing for, and responding to, changes to voter registration, election law, catastrophic urban forest problems, and needed improvements and updates to including emerald ash borer. The state the Statewide Voter Registration System; should establish an ongoing grant b) Expedite court action to resolve candidate program with at least $15 million per year eligibility related to residency in errors that is usable for those activities. and omissions proceedings; and SD-69. City Pesticide Application c) Eliminate redundant audio testing of Authority assistive voting technology and equipment by election judges in precinct polling Issue: Current state law in Minn. Stat. § places on Election Day; and 18B.09 was amended in 2023 to allow cities of the first class to prohibit the application or d) Increasing flexibility for elections use of certain pesticides designated by the administrators to purchase assistive voting state as “pollinator-lethal,” with a list of uses equipment and technology that best meets that would still be allowed. With many cities the needs of voters with disabilities. working to increase pollinator-friendly e) Support local governments with increased habitat and reduce the impact of pesticide funding through the Voting Operations, usage known to be lethal to pollinators, cities Technology, and Election Resources are seeking further tools to meet those public Account (VOTER) fund to provide cities expectations. With small lot sizes, primarily with resources to conduct elections and non-agricultural property uses, increased meet the mandated requirements set forth state and local promotion of natural in statute. landscaping, and dense residential concentrations, cities often find that the SD-71. Administering Absentee broader state pesticide regulations are not Balloting and Early Voting adequately protective of pollinators and are Issue: Eligible voters in Minnesota may vote seeking additional state authority to address by absentee ballot prior to Election Day. these issues in their communities. Starting 46 days before the election, a voter Response: The state legislature should can request an application for an absentee further amend Minn. Stat. § 18B.09 to ballot and, if approved, receive and cast an Council Packet Page Number 235 of 476 J3, Attachment 2 abstime for election officials to process absentee entee ballot in one visit to their county or city election offices.Ballots can also be ballots, prepare supplemental lists indicating which voters have already cast absentee requested, applied for and received by mail and returned by the voter to the election ballots and deliver the lists to precincts prior office by 8:00 pm on Election Day. Absentee to opening of the polls on Election Day. The balloting results are not known until current absentee voting process further combined with polling place results when the requires that additional supplemental lists of polls close on Election Day. final absentee voters be delivered to the polls after the last mail delivery on Election Day The process for voting by absentee ballot in- and often leads to administrative challenges person was changed during the 2023 and increased potential for errors in the legislative session to establish early voting process. for the 18 days leading up to an election. Early voting will replace direct balloting, There are several methods a voter can utilize allowing voters to vote in person as they to vote in each election. In addition to the 46- would on election day without filling out an day absentee voting period in which a voter absentee ballot application. Until early voting may request a ballot by mail, a voter can also is implemented the direct balloting timeline vote before election day through direct has also been extended to the 18 days leading balloting and early voting, vote during the up to an election. The law also established extended hours required on the Tuesday additional non-business hours that cities before a general election or the three administering absentee balloting must be weekend days required before a general open for early voting, including extended election, or a voter can vote on election day. evening hours on the Tuesday before the Reviews of available voter participation data election and required weekend hours for the and anecdotal observation by city clerks on two Saturdays and one Sunday leading up to in-person absentee participation prior to the th election day. While the extended timeline for 18 day indicate that it accounts for as little early voting allows for additional time to as a tenth or less of total turnout in a given process absentee ballots and the early voting election. While Minnesota has a long process creates some efficiencies, the absentee balloting time, the most popular mandated extended hours require additional days for early voting are the 18 days before staff and resources for cities that administer the election. With the many opportunities absentee balloting. provided to voters, including the new extended early voting period, requiring all For those who vote absentee in-person prior cities to conduct in-person absentee voting to the 18 days before Election Day, there is before the direct balloting and early voting confusion and in some cases, frustration that timeline begins may not be the most efficient they are not allowed to place their ballots use of resources for all cities. In most cases, directly into a tabulator. A voter can request decisions made in partnership between cities to place their ballot in a series of envelopes and counties on appropriate service levels for similar to those returned by mail to be absentee voting tend to work best as local processed after they have left the building. jurisdictions best know their communities Few, if any, voters request to place their and trends regarding the demand for in- ballot into envelopes. person voting. Current law allows for in-person absentee As more and more voters choose to vote voting until 5:00 p.m. on the day before early with absentee balloting, improvements Election Day. This does not leave adequate must be made to increase efficiency of Council Packet Page Number 236 of 476 J3, Attachment 2 admielection, state statute must be amended to nistering absentee balloting before Election Day, reduce the potential for errors, allow for more than one ballot. and to improve voter experience. Response: The League of Minnesota Cities Response: The League of Minnesota Cities supports: supports: a) Legislation that would give statutory cities a) Eliminating the option to place an in-the same authority given to charter cities person absentee ballot in a series of to consider and adopt RCV. Any envelopes instead of a tabulator; legislation should address and resolve any challenges with RCV elections that run b) Establishing an earlier and consistent concurrently with other elections; deadline for ending all forms of in-person absentee voting; b) Statewide standards for those cities that choose to adopt RCV to ensure it is c)Allowing cities to only conduct early implemented consistently throughout the voting and opt-out of in-person absentee state to give voters confidence in the voting before the early voting period. fairness of the alternative process of d) Providing ongoing resources to cities that casting their ballots and in the outcome of administer absentee balloting and early such elections; voting for the extended early voting period c) A state certification process for voting and additional weekend hours required systems used in tabulating RCV elections; during a general election. and SD-72. Ranked Choice Voting d) Allowing for the use of more than one ballot should a city with RCV conduct a Issue: Current law allows charter cities to municipal election in conjunction with a consider and adopt Ranked Choice Voting state general election. (RCV) as an alternative voting method in local elections. State statute does not extend SD-73. Election Judge Recruitment, this authority to statutory cities. Additionally, and Retention, there are no statewide standards for conducting RCV. The lack of consistent Issue: Nearly 30,000 Minnesotans serve as guidelines on how to effectively implement a election judges. The recruitment and RCV system imposes significant challenges retention of election judges is a significant for election administrators and voters. and essential component of administering elections throughout the State of Minnesota. The Office of the Secretary of State certifies voting systems for cities and counties across State statute requires that precincts with more the state. This process does not include the than 500 registered voters be assigned at least systems used for RCV elections. This makes four election judges and those with fewer it difficult for cities to access voting systems than 500 registered voters be assigned at least approved by the state. three election judges. Minn. Stat. § 204B.21 requires that at least two election judges in Minn. Stat. § 204D.11 and 206.90 require the each precinct serve with a different major use of one ballot only for a state general political party designation, except for student election unless there is a need for a separate trainee election judges. The remaining judicial ballot. To allow cities that have election judges in a precinct can serve implemented RCV to hold municipal without an affiliation to a major political elections in conjunction with a state general party and no more than half the judges in a Council Packet Page Number 237 of 476 J3, Attachment 2 preci Response:To ensure state requirements nct may belong to the same major political party. Statute specifically requires are met, party balance is maintained, and to expand the opportunity of serving as an election judge party balance to perform four polling place activities: assisting a voter in election judge to others, the League of curbside voting; opening the ballot box; Minnesota Cities supports the following duplicating ballots; and in conducting an changes: election at a Healthcare Facility.Political a) Authorize college students to get time off party affiliation is also unnecessary in city from classes if they have been appointed to special elections when offices on the ballot serve as an election judge; are nonpartisan. b) Allow for one election judge affiliated with Also, in 2025, amendments were made to any major political party defined in Minn. Minn. Stat. $ 204B.19, subd.5, further Stat. §200.02, subd. 7 or minor political extending party balance requirements for party in Minn. Stat. § 200.02, subd. 23 to election judges where at least one election perform an election activity that requires judge for each major political party must be party balance specifically outlined in present in each precinct and in any location statute and based on the election judge’s where ballots are being counted. While the oath that all will perform duties in a fair intent of this change and other party balance and impartial manner and not attempt to requirements is to enhance transparency, create an advantage for any party or ensure fairness and strengthen public candidate. If partisan requirements confidence in elections, the provision raises cannot be met because of late staffing significant implementation concerns changes in the polling place, then cities especially if additional political parties should be allowed to meet party balance achieve “major party” status further through an election judge who has not exasperating the shrinking pool of qualified declared a party affiliation; and election judges and jeopardizing election c) Amend Minn. Stat. $ 204B. 19, subd. 5 to compliance. incorporate statutory mechanisms that Minn. Stat. § 204B.19 allows high school allow for flexibility when a major political students to be excused from school to serve party cannot reasonably supply election as a trainee election judge if the student judges including: an alternative submits a written request signed and representation clause where the approved by the student's parent or guardian appointing authority may proceed with to be absent from school and a certificate judges from other available major or from the appointing authority stating the minor parties provided recruitment efforts hours during which the student will serve as a were made in good faith and documented; trainee election judge to the principal of the a regional representation option where school at least ten days prior to the new major parties could satisfy party election. This process is not currently balance requirement through regional or extended to college students which has county-level assignment of election judges proven to be a barrier for recruiting college and a grace period for newly recognized students to serve as election judges. major parties as a transition period to Additionally, teachers and college faculty are allow recruitment and training of election also allowed to take time off of work to serve judges befor the statewide mandate as an election judge. applies. Council Packet Page Number 238 of 476 J3, Attachment 2 d) Requ ire major political parties to provide Response: To improve the process for updated lists of persons interested in amending a city charter, the League of serving as election judges directly to cities Minnesota Cities supports: and counties and on an ongoing basis so a) Adding clarifying language regarding that recruitment lists are timely to best “registered voters”. These voters must be assist cities in meeting party balance eligible voters in the district for which the requirements. petition is being circulated who are in active status on the statewide registration SD-74. Mail Balloting system at the time of petition verification Issue: Minn. Stat. § 204B.45 authorizes all and have not had a name or address townships and cities with less than 400 change since the most recent voter registered voters to hold elections by mail. A registration application was submitted. city may conduct mail balloting for an b) Ensuring that petitioners have access to individual precinct having fewer than 100 the petition, public information lists used registered voters, subject to the approval of to verify registered voters, and the the county auditor. examination log available for inspection on Staffing and equipment needs can be very request of any registered voter. costly and mail balloting is an efficient way c) Revising Minn. Rules 8205 to ensure that of conducting an election for cities that have formatting requirements are clear and up lower numbers of registered voters regardless to date. of location in or outside the metro area. It is not uncommon for the redistricting process to SD-76. Presidential Nomination create very small precincts in the metro area Primary that are more cost-effectively served by a mail balloting process. Additionally, for Issue: In 2016, the legislature passed into special elections that historically have lower law a process for the state of Minnesota to turnout, mail balloting could increase voter conduct a presidential nomination primary in participation. 2020 for president of the United States. This is administered by cities and counties much Response: The League of Minnesota Cities the same way elections are conducted. supports allowing all cities to conduct mail Minn. Stat. § 207A.15 provides a process for balloting. local units of government to be reimbursed SD-75. Modernizing Charter for expenses incurred from conducting the Amendment Process primary. The Office of the Secretary of State (OSS) submits to the Department of Issue: Minn. Stat. § 410.12 outlines the Management and Budget (MMB) an process for amending city charters and one of estimated cost of administering the primary, the methods is via petition for which Minn. and MMB provides funding to the OSS. That Rules 8205 provides specific criteria for funding is then distributed to local units of formatting. City staff then review the petition government as a reimbursement based on to determine if it is valid and has met expense reporting submitted to the OSS. statutory requirements for completion and Because the presidential nomination primary submission. To ensure that both residents and is a partisan activity administered on behalf city staff fully understand the requirements, of political parties, it is critical that local clarifying changes should be made. units of government be reimbursed fully and that no cost be borne by cities. Additionally, Council Packet Page Number 239 of 476 J3, Attachment 2 conductfacility staff. This requirement should be ing a primary election by mail could conserve resources and potentially increase eliminated in mail-only precincts though elections administrators should work to voter participation. ensure that any new resident of a facility is Response: The League of Minnesota Cities able to register and receive a ballot. supports: Response: It is critical that those living in a) Ensuring that local units of government health care facilities are able to vote are fully reimbursed for all anticipated securely and with minimal complication. and unanticipated costs of conducting the To do so, the League of Minnesota Cities presidential nomination primary; and supports amending state law to increase b) Allowing the presidential nomination flexibility for cities and health care primary to be conducted via mail facilities partnering in administering balloting. elections. This includes: SD-77. Health Care Facility Voting a) Extending the time period that clerks are required to administer health care facility Issue: Minn. Stat. § 203B.11 outlines the voting up to 46 days before an election to process for individuals living in health care coincide with the start of absentee voting facilities to vote. Local election officials send instead of the pre-registration deadline.; teams of election judges to facilities such as b) Requiring entry into facility for city nursing homes and hospitals during the 35 elections officials to ensure residents are days before the election. They distribute able to vote; ballots to eligible residents of the facility and provide assistance as needed. Allowing more c) Eliminating the need to include a specific time for this process would increase resident room or unit number on voter registration ability to register to vote or apply for an or absentee ballot applications of those absentee ballot and ensure their ballot is living in health care facilities; and submitted. d) Exempting mail-only precincts from also There have been instances when facility staff conducting health care facility voting have refused entry to city elections officials while ensuring that new residents are able to provide health care facility outreach to register and receive a ballot. voting. It is essential that city staff are able to SD-78. Voters Experiencing provide this service to ensure that every eligible resident is able to vote should they Homelessness choose to. Issue: Minnesotans experiencing It is not uncommon for residents of health homelessness are able to register to vote care facilities to move to different rooms or using the location of where they usually sleep units within a building. If their voter as defined in Minn. Stat. § 200.031. This registration is tied to a specific unit within could be an intersection or shelter address. the building, they must re-register to vote Because the voter does not have a permanent after moving or their ballot may be rejected. mailing address, the registration is often This is unnecessary given the resident still challenged which then requires a voter to re- lives in the same facility. register each election. This process also requires a registered voter in the precinct to The process for health care facility voting is vouch for that person which can be difficult required in precincts that conduct elections to find when experiencing homelessness. by mail. This is confusing for residents and Council Packet Page Number 240 of 476 J3, Attachment 2 For tregistered voter from the same voting hose experiencing homelessness, leaving their space and any belongings can precinct vouch for the eligible voter. potentially mean losing them. This becomes a The vouching process is a vital option for significant barrier to registering to vote and voters lacking current documentation but participating in elections. remains challenging. While voters very likely Response: The League of Minnesota Cities know people in their neighborhood, this does supports the following to improve the not guarantee they reside in the same voting process for voters experiencing precinct. Local roads are often used to divide homelessness to safely and securely vote.voting precincts, thus putting neighbors across the street in different precincts. This a) Update Minn. Stat § 200.031 to allow an issue is even more prevalent for voters eligible voter to designate a residential experiencing homelessness where vouching address or the address of a facility or is often the only viable option for registering. residential shelter, such as homeless Expanding the eligible vouching list to those shelter or woman’s shelter, that assists who reside in the same city would provide people experiencing homelessness where further flexibility to voters and allow election their official election mail may be sent and officials to still track the limit of 8 vouches have that serve as the address for per person. assigning a precinct and polling location. Under Minn. Rules 8200.5100 the Secretary b) Allow cities to do outreach in areas with of State defines the list of acceptable concentrated populations of those documents that voters may use for proof of experiencing homelessness to register residence. While there are many options people to vote, assist with applications for currently authorized, many comparable or absentee ballots, and issue and receive similar documents are not currently allowed. ballots in a process similar to Health Care The lack of consistency creates a great deal Facility outreach. of confusion for voters as to why documents providing the same information are not SD-79. Voter Registration treated the same. New emerging industries Issue: While registering to vote is the most and services are also not accounted for. critical step an eligible voter must complete Consideration should be given to adding prior to casting a ballot, it remains a documents like work paystubs, tax returns, complicated process and barrier to new mortgage closing paperwork, non-standard voters. Procedures currently utilized in the lease/rental agreements (Hotels, AirBnB, state have largely remained unchanged for group homes), a social service agency letter many election cycles and fail to account for describing where a homeless voter lives, changes in population demographics and USPS address change verification, and other increasing demands for non-traditional voting documents issued by government entities. methods. Additionally, under Minn. Rules 8200.5100, Minn. Stat. § 201.061 currently stipulates voters may present bills due or dated within that eligible voters may either register to vote 30 days of Election Day to meet proof of no less than 20 days prior to an election or on residence requirements. This timetable can be Election Day at their polling place. In problematic when the absentee voting period addition to completing the necessary starts 46-days prior to the election. The 30- paperwork, a potential voter is required to day window around Election Day often provide proof of identity and residence. One results in some voters not having a current option for proof of residence is to have a Council Packet Page Number 241 of 476 J3, Attachment 2 enough bil l to register in the first few weeks SD-80. Election Judge Payment of absentee voting. It can be confusing for Requirement Exception voters as to why their most current bill is not accepted as proof of residence. Having a start Issue: When the state passed the wage theft date coincide with the start of absentee voting prevention laws (181.101) there were several would provide more voters access and public sector exceptions created for those remove confusion on the different deadlines. positions that traditionally were not paid every 31 days including volunteer firefighter Response: The League of Minnesota Cities and a member of an organized first responder supports modernizing current voter squad or attendant. These exceptions require registration procedures such as: mutually agreed upon payments at longer a)Expanding eligible vouchers to any intervals by the employer and employee. registered voter in the same city. Because of the nature of the work of election judges and the duties that generally cover b)Expanding the list of acceptable election cycles lasting longer than 31 days, a documents that can be used for proof of need for an additional exception for election residence. judges is desired that would greatly assist in c)Expanding the current 30-day window for the payment administration of their work. original bills that voters may utilize for registration to coincide with the 46-day Response: The League of Minnesota Cites absentee voting period. supports the addition of election judges, appointed by the governing body of a municipality as defined in 20-4B.21 Subd 1, to the exceptions to the 31-day payment requirements in 181.101 (b). Council Packet Page Number 242 of 476 J3, Attachment 2 IMPROVING LOCAL ECONOMIES d) Give cities broader authority to LE-1. Growth Management and extend their zoning, subdivision, and Annexation other land-use controls outside the city’s boundaries, regardless of the Issue: Unplanned and uncontrolled growth existence of county or township has a negative environmental, fiscal, and controls, to ensure conformance with governmental impact on cities, counties, and city facilities and services; the state because it increases the cost of providing government services and results in e) Provide authority for cities to plan the loss of natural resource areas and prime and implement plans for roadway agricultural land. improvements in areas where urban or suburban development has created Response: The League of Minnesota the need for annexation; Cities believes the existing framework for guiding growth and development f) Clearly define and differentiate primarily through local plans and between urban and rural development controls adopted by local governments and restrict urban growth without should form the basis of a statewide municipal services or annexation planning policy, and that the state should agreements outside city boundaries. not adopt a mandatory comprehensive This should contain a requirement statewide planning process. Rather, the that counties and joint power districts state should: that provide sewer, water, and other services, which have been traditionally a) Provide additional financial and provided by cities, include as a technical assistance to local condition of providing service the governments for cooperative planning annexation of properties that are the and growth management issues, recipients of such services in cases particularly where new where annexation is requested by a comprehensive plans have been city that could feasibly be providing mandated by the Legislature; those services; b) Keep comprehensive planning g) Facilitate the annexation of urban timelines on a ten-year cycle due to land to cities by amending state the financial and workload impacts statutes that regulate annexation to these processes place on cities; make it easier for cities to annex c) Clearly establish the public purposes developed or developing land within served by existing statewide controls, unincorporated areas; such as shore land zoning and h) Oppose legislation that would wetlands conservation; clarify, reinstate the election requirement in simplify, and streamline these contested annexations; controls; eliminate duplication in their administration; and fully defend and i) Support legislation to prohibit hold harmless any local government detachment of parcels from cities sued for a “taking” as a result of unless approval of the detachment has executing state land-use policies; been granted by both the affected city and township and the affected county Council Packet Page Number 243 of 476 J3, Attachment 2 has been notified prior to the city and numbers of nonconformities on properties township acting on the request; within city limits and would make state wildlife management areas far less desirable j) Oppose legislation that allows orderly due to impacts on future city development. annexation agreements to be adopted that prohibit annexation by other In rural areas, where this is less of a cities of property not being annexed concern, counties and townships have the under the agreement; authority to object to the state purchasing land for the outdoor recreation system for k) Encourage ideas consistent with the these very reasons. Cities do not have that long-term goal of allowing urban statutory right. Due to recent statutory development only in areas currently changes (Minn. Stat. § 97A.137, subd. 4) or about to become urban or removing city authority to adopt ordinances suburban in character; and related to firearm discharge, hunting and l) Establish stricter criteria on the trapping activity in wildlife management amount cities can pay to townships as areas within their borders, these purchases part of an orderly annexation should not occur without city consent and agreement so that payments to input. townships are limited to Response:The League of Minnesota reimbursement for lost property tax Cities opposes the state imposing base for no more than a fixed number retroactive development restrictions of years, documented stranded around existing wildlife management assessments, and other items for areas. which there is a clear nexus. When purchasing state wildlife LE-2. Wildlife Management Areas management areas and other conservation and outdoor recreation Issue: The Department of Natural Resources system land, the state should either has been pressing for legislative purchase sufficient land to provide an requirements creating development internal buffer from surrounding restrictions on property adjacent to land development or purchase development purchased by the state for hunting and other rights to land adjacent to the property if conservation purposes. This issue has been such a buffer is deemed essential to increasingly controversial as urban growth preserving the intended uses for the extends into areas previously considered property. This should be required for new rural and residential property owners are land purchases and done where feasible finding themselves adjacent to public for existing wildlife management areas. hunting land. With large amounts of new revenue going into state land purchase for Furthermore, Minn. Stat. § 84.944 and § game and fish habitat and public access 97A.145 should be amended to include purposes because of the passage of the cities in the local government notification constitutional amendment, these problems and approval process the state must could occur even more frequently. follow before purchasing public land. The solution being proposed will put local LE-3. Official State Mapping governments in the position of enforcing Responsibility state land use restrictions and would require extensive changes to local plans, controls Issue: For many years, the Minnesota and ordinances. It would also create large Department of Transportation (MnDOT) has Council Packet Page Number 244 of 476 J3, Attachment 2 provided the mapping services to keep serve properties located within rural electric survey-level accuracy in place for the state’s cooperative (REC) or other electric service official maps and records. That information provider service territory in annexed areas, changes when roads are made or improved, even if the REC or other electric utility had and needs regular adjustment when not served them prior to annexation. municipal boundary adjustments are made. Response:The League of Minnesota The information is then used at all levels of Cities opposes any attempt to remove or government to accurately determine alter the eminent domain option available property boundaries for transportation aid, to municipal electric utilities in state law, utility service boundaries, state and local or to make it financially unfeasible for funding formulas, election issues, and a municipal utilities to compensate rural number of other uses. electric cooperatives or other electric No state agency, however, has ever been utilities for serving future customers who statutorily provided with mapping reside in annexed areas where that responsibility and MnDOT is not funded for electric utility has not provided service. providing that level of detail in its mapping. LE-5. Statutory Approval Because MnDOT, as an agency, requires Timelines less specificity in its maps, a change has slowly been integrated to mostly restrict Issue: Cities since 1995 have been required MnDOT mapping to what changes occur in to act on written requests relating to zoning, road ownership and responsibility, leaving septic systems, the expansion of many mapping needs unmet for other users Metropolitan Urban Service Areas (MUSA), of boundary data. and other land-use applications in accordance with a statutory time period Response: The League of Minnesota generally referred to as the 60-day rule. Cities supports legislation making a Pursuant to Minn. Stat. § 15.99, state and named state entity the official provider of local government agencies must approve or survey-level mapping for the state, deny a permit within a statutory timeframe. including maps for municipal boundary Failure by the agency to issue a specific adjustments. The Legislature must denial of the application is deemed an provide the necessary appropriations to approval. the entity for providing that service. Minn. Stat. § 15.99 does not directly address LE-4. Electric Service Extension whether an appeal of a decision triggers an Issue: Minnesota law preserves the right of extension or is part of an original zoning municipal electric utilities to grow with the request that must be handled within the 60- cities they serve. Municipal electric utilities or 120-day time period. In a 2004 Minnesota may grow either through application to the Court of Appeals decision, the court found Minnesota Public Utilities Commission that a zoning application is not approved or (MPUC) or through condemnation denied for the purposes of Minn. Stat. § proceedings. Eliminating authority of 15.99 until the city has resolved all appeals municipal electric utilities to extend challenging the application. Moreno v. City services, or making extension of municipal of Minneapolis, 676 N.W.2d 1 (Minn. Ct. electric service to annexed property App. 2004). According to the court, an unreasonably costly, would interfere with appeal is not a request for a permit, license community development and make it or other governmental approval; therefore, it unfeasible for municipal electric utilities to Council Packet Page Number 245 of 476 J3, Attachment 2 does not trigger a new 60-day time period. resources are increasingly limited, flexibility Under this interpretation, a decision in the length of approval timeline rendered by a zoning board or planning requirements may be needed at the local commission is not the final approval or level. denial of an application if the city allows an Response:The Legislature should repeal appeal to the city council. or amend Minn. Stat. § 15.99. If repeal is This court decision is problematic for a unlikely, amendments should: couple of reasons. Forcing cities to further a) Increase the initial time limit to 90 condense the process for considering days or have the language in Minn. planning and zoning applications will make Stat. § 15.99 apply as the default it more difficult to gather public input and requirement only in cases where leave less time for thoughtful deliberation by permitting bodies have not established zoning boards and planning commissions. It an independent approval timeline; may also provide an incentive for cities to b) Clarify that approval does not extend the original 60-day period in every abrogate the need for approvals under instance in order to build-in adequate time to other applicable federal, state or local consider possible appeals. requirements; The Minnesota Supreme Court recently c)Provide appeal rights to adjacent issued another 60-day rule decision that held property owners; that an application to the Minneapolis Heritage Preservation Commission for a d) Clarify that, if requests are to be certificate of appropriateness was a “written decided by a board, commission or request related to zoning,” and therefore was other agent of a governmental agency, subject to the automatic approval provision and the decision of the board, of the 60-day rule. 500, LLC v. City of commission or other agent is adopted Minneapolis, 837 N.W. 2d 287 (Minn. subject to appeal to the governing 2013). This opinion creates ambiguity and body of the agency, then the agency uncertainty about what permit applications may extend the 60-day time limit to are subject to the law. resolve the appeal; and Additionally, the statute does not allow for e) More clearly define that the phrase exceptions to the timelines in event of “related to zoning” refers to a extenuating local circumstances. If a state of traditional land use decision such as emergency limits the ability of city staff to rezoning, conditional use permits, and complete the work, it should not result in a variances. de facto approval of applications. f) To address states of emergency, add Clarification is needed about how these the following new language to the instances are fairly handled to ensure a fair statute: (h) The time limits in public process can occur for all interested subdivision 2 and 3 are paused if the and involved parties. governor declares a state of While the Legislature has clarified some emergency under section 12.31. In aspects of this law, additional modifications cases described in these paragraphs, are necessary to assist cities in providing the deadlines inthe areas included in accurate and timely responses to applicants the emergency declaration remain and to allow adequate time for public input. paused until ten days after the Furthermore, as city staff and financial Council Packet Page Number 246 of 476 J3, Attachment 2 expiration of the state of emergency, consuming historical research that may not applied to any written application reveal a clear answer. awaiting action that was submitted Response:The Legislature should amend prior to or during the state of the special assessment statute so that emergency. retaining walls needed to facilitate public improvements are treated the same as LE-6. Maintenance of Retaining other local improvements. In cases where Walls Adjacent to Public Rights of retaining walls located along public rights Way of way or within drainage and utility Issue: The Minnesota Constitution grants easements separate public improvements cities the power to “levy and collect from adjacent properties, the Legislature assessments for local improvements upon should establish a rebuttable presumption property benefited hereby.” Retaining walls that the need for lateral support was are one of the many improvements that a created by the property owner. city is authorized to make on behalf of its LE-7. Development Disputes residents, and Minnesota’s special assessment law, Minn. Stat. ch. 429, Issue:State law is clear that fees collected authorizes cities to charge special under Minn. Stat. ch. 462 are eligible for assessments on properties that are benefitted judicial review in the event of dispute. The by an improvement. Legislature limited the timeframe during which an aggrieved party may challenge The Minnesota Court of Appeals held that planning and zoning fees to 60 days after the city of Minneapolis had a nondelegable approval of an application. However, the duty of lateral support to a property owner law is not clear about what notice with a retaining wall abutting a city requirements to the municipality are sidewalk. Howell v. City of Minneapolis, necessary, relative to the timing for a person 2013 WL 1707759 (April 22, 2013). A aggrieved by an ordinance or decision under subsequent jury found that the city created the municipal planning act to seek review. the need for lateral support when it built the street and sidewalk adjacent to the property, Response:The Legislature should amend making the city responsible for the Minn. Stat. § 462.361 to establish a 60- maintenance the retaining wall, despite the day time limitation in which an aggrieved fact that the property is clearly benefitted by person may bring an action against the the retaining wall. municipality. The special assessment statute anticipates LE-8. Foreclosure and the need for cities to create retaining walls Neighborhood Stabilization when making public improvements, and this Issue: Cities dedicate scarce resources to holding could create significant costs for address public safety and maintenance cities forced to repair and maintain retaining challenges associated with foreclosed, walls that benefit a single property. A choice vacant, and under-maintained homes. Left by a developer or previous property owner unaddressed, these properties destabilize to build a retaining wall to improve the neighborhoods, depress neighborhood value or usefulness of property may appear property values, and potentially increase the to be necessary today, but determining who costs of municipal services. Cities’ revenue first created the need for lateral support in also continues to decline due to delinquent the past can involve costly and time- Council Packet Page Number 247 of 476 J3, Attachment 2 utility payments and property tax payments, acting essentially as renters. It is difficult to as well as added costs for nuisance determine who is responsible for abatements. Although the number of those maintaining the property or for paying utility mortgage foreclosures has stabilized bills and property taxes, and cities may not somewhat since the peak of the recession in be able to inspect substandard properties if 2008 and the height of the COVID-19 they are not subject to a lease agreement. In pandemic, issues surrounding community some situations, property owners may wish recovery remain ongoing. to have a renter be the responsible party for utility bills and utilize contract for deed State and local governments can play an arrangements to have the person living on important role in spurring reinvestment in the property be the responsible party. The struggling neighborhoods, but without property may also not be recorded at the additional resources to address the variety county for homesteading purposes if the and costly impacts of foreclosures and buyer is not aware of the formal change in vacant properties, cities cannot maintain or ownership that results from a contract for increase those activities to meet local needs. deed. During the 2024 legislative session, The federal government has provided funds contracts for deed policy reform was passed for neighborhood stabilization and direct by the legislature and signed into law that mortgage assistance to residents, but such provides additional protections to buyers. funds are limited in eligible uses and scope, Policy to further protect buyers in contracts and they are only available to a limited for deed include additional time to make late number of cities. payments and a requirement that the burden Contracts for deed have been used to for recording the contract is now on the successfully buy and sell thousands of seller among other protections to prevent homes around Minnesota. According to predatory uses of contracts for deed. research completed by the Pew Charitable In recent years, investor ownership of Trusts that analyzed land contracts in the single-family housing stock has increased as U.S. from 2005-2022, Minnesota has the investors including both small investors and fourth-most land contracts in the U.S. large private equity companies have However, some property owners use continued to purchase single-family homes contracts for deed as an alternative to a to convert to residential rental uses. traditional lease, even though the purchaser According to the Minneapolis Federal has no intention of buying the home. Some Reserve Bank, investor-ownership rate for communities have encountered a situation residential properties in the metropolitan where a property owner is buying many area has more than doubled from 2006 to homes in a community, then selling them on 2015 but has since stabilized in the past contract for deed. This can allow a person three years. While the trend of investor to essentially act as a landlord while evading ownership has stabilized, the increase in a city’s rental inspection and rental licensing single-family rental housing continues to process, while the buyers lose the traditional impact city housing stock as investor legal rights and protections as purchases of affordable single-family homes tenants. Many view it as a way to rent the are often concentrated in lower income property and may not be aware of it being a neighborhood, which can remove contract for deed. homeownership opportunities and make it Numerous problems arise for cities and harder for lower-income households to neighborhoods when property owners are compete in the housing market. While Council Packet Page Number 248 of 476 J3, Attachment 2 investor ownership creates single-family e)Improve notification to cities, and rental opportunities, strategies deployed by consistency in the information certain investors that seek to maximize available to cities, when a property is profits can lead to a deterioration of housing in the foreclosure process and vacated quality. and advance policies that make it easier for cities to step in during the Response: The Legislature should: tax forfeiture sale process in order to a)Secure increased state and federal more effectively address blighted resources and provide financing tools properties; to help cover city costs associated with f)Support coordinated responses to foreclosed and /or vacant properties prevent foreclosures, activate and and undeveloped vacant lots, guide private investment and home community revitalization strategies, purchases, and support distressed and community investment, including neighborhoods; revenue sources for programs that support foreclosure mitigation,g)Support legislation for reasonable homeownership counseling, andrequirements of Common Interest expanded homeownershipCommunities and Homeowners opportunities and are sustainable;Associations to improve governance and transparency for homeowners b)Explore additional city authority to living in properties within a Common allow cities to take more expedient Interest Community or Homeowners action to acquire tax forfeited Association without limiting a city’s property in order to protect foreclosed ability to ensure private common area and/or vacant homes from damage property in a development is and to help preserve property values adequately maintained. in neighborhoods where concentrations of such conditions areh)Continue to study and monitor the present, including an expeditedimpacts on the housing market of process to address nuisanceinvestor-owned homes and enact properties;policy that provides cities with the tools to mitigate any negative impacts c)Reexamine the Contract for Deed on city housing stock and prospective statutes to mitigate predatory contract homebuyers due to investor-owned for deed arrangements and ensure purchasing of homes without property owners adhere to local rental penalizing small investors and licensing requirements, and provide property owners that allow cities to local jurisdictions resources to allow ensure a balanced housing stock for education of future buyers and between rental and ownership sellers in contract for deed opportunities; arrangements; i)Re-enact a program at the state level d)Support local authority for cities to similar to “This Old House” to allow collect all delinquent taxes, utility owners of qualifying single-family bills, liens, and assessments on homes or multi-unit rental properties foreclosed, vacant, boarded and/or tax to defer the increase in tax capacity forfeited properties; from repairs or improvements to their homestead property as an incentive Council Packet Page Number 249 of 476 J3, Attachment 2 for cities to maintain and improve the U.S. Census Bureau and American sustainability of housing stock or Community Survey data, the provide state assistance to cities who homeownership rate in Minnesota for non- wish to provide incentives for Hispanic White Americans is 78%, which is homeowners to make repairs and above the national rate of 74.4% However, improvements to their property; and the homeownership rate for homeowners of color in Minnesota is 41.8%, which remains j) Support programs that provide well below the national black resources to cities for rehabilitation or homeownership rate of 44 percent. new construction of single-family Comparatively for Hispanic Americans, the homes. homeownership rate is around 47% and for Asian Americans, it has hovered around LE-9. Housing Policy 53%. According to the Minnesota Housing Issue: Cities recognize that stable housing is Finance Agency analysis of the most recent essential to the health, safety, and welfare of U.S. Census Bureau’s American Community residents. Since the Fair Housing Act of Survey, Minnesota has one of the highest 1968, and more recently with the homeownership rates in the nation, but the recognition that certain barriers to housing state has the fourth largest disparity in disparately impact certain members of our homeownership rates between white/non- communities, local government has been Hispanic households and households of obligated to promote and reduce barriers to color. fair housing and equal opportunity. For According to the most recent U.S. Census example, households with housing choice Bureau’s American Community Survey, vouchers face many barriers to securing households of color are also more likely to housing in the private rental market, experience cost burden (paying more than especially when rental vacancy rates are 30% of their income on housing). In low. Currently rental vacancy rates are at a Minnesota, 57% of renter households of historic low in much of the state. As a color experience cost burden as compared to result, many families and individuals may be 45.5% of white renter households. Project unable to use their housing choice vouchers based and voucher based rental assistance and thus unable to secure safe, decent and that enable renters to pay no more than 30% affordable housing. Additionally, many of their income on housing are critical to renters and homeowners face challenges reducing cost burden disparities. Nationally, from housing displacement due to rising according to data analysis provided by the costs, uninhabitable housing, and eviction Urban Institute, only 1 in 5 households who that exacerbates housing instability and qualify for a Section 8 voucher receive this homelessness. critical form of rental assistance. Despite Despite progress since the Fair Housing Act legislative efforts in Minnesota to create a of 1968, households of color nevertheless sustainable state rental assistance program, experience a gap in homeownership rates the program is likely to fall short of compared with white households and have addressing the need. As a result, low-income faced barriers to housing due to a history of families often make tradeoffs to reduce housing policies and lending practices that housing costs. Families may choose or only disproportionately benefit white households be able to afford living in poor-quality, (i.e., application of GI bill largely only to substandard housing or a long distance from white soldiers returning from war, redlining, work opportunities to reduce housing costs. and restrictive covenants). According to the Council Packet Page Number 250 of 476 J3, Attachment 2 The imbalance between the demand for d) Support resources and programs that affordable housing and the supply of low-seek to assist communities and cost rentals contributes to increasing landlords in their efforts to reduce housing costs. At the same time, wages have barriers to housing and promote fair remained stagnant and not kept up with housing and equal opportunity increased housing costs resulting in more including a prohibition on landlords and more families experiencing housing cost denying housing opportunities to burden. Rent-burdened households have residents based on their source of higher eviction rates, increased financial income and support efforts by the fragility, and wider use of social safety net federal government to promote fair programs, compared with other renters and housing policies intended to protect homeowners. The rates and severity of rent people from housing discrimination burden, especially for households of color, andencourage the federal government have increased housing instability and to provide more flexibility within the resulted in fewer households transitioning Section 8 voucher program so that from renters to homeowners. renters can more readily maintain and place their vouchers in a tight rental Response:The Legislature should: market; a) The legislature should oppose policies e) Support housing stability for renters that seek to impose a one-size-fits-all through policies that mitigate the rigid zoning and land use framework impact of or reduce evictions filed on cities. Support policies that allow including providing clear statutory local leadership on zoning and land authority for cities who seek to impose use changes that are sensitive to tenant protection ordinances that individual community needs and mitigate renter displacement; housing goals including incentive- based approaches and options that f) Seek to identify and reduce racial can be tailored to each individual disparities in homeownership in community. Minnesota and support policies and encourage innovative solutions that b) Any proposed state framework address structural barriers for people addressing local zoning and land use of color when it comes to accessing authority must allow cities to retain housing including policies that local decision-making authority over encourage fair lending and provide how they apply a framework to their homebuyer education and funding for own communities. Additionally, a down payment assistance to low- framework must tie policy to overall income households; production while also requiring affordability, and provide scalability g) Support programs that seek to recruit and options that recognize regional and retain emerging and diverse differences. developers interested in housing development. c) Support policy changes that allow cities the option to approve a higher h) Support programs that reduce cost volume of plats during the final plat burden among renters and support approval process administratively and policies that address barriers for support policy that reduces delays in people of color when accessing safe, the platting of lots. Council Packet Page Number 251 of 476 J3, Attachment 2 healthy and quality affordable rental such as high market prices, eviction, and housing; and foreclosure, and responding to problems caused by vacant homes and the increase in i) Support resources and policies that rental properties that are the result of encourage public-private partnerships foreclosure. between cities and entities seeking to expand new affordable It is generally agreed that Minnesota has a homeownership and rental substantial supply gap of housing units opportunities, prevent renter across the housing spectrum, especially units displacement, and reduce the racial that are affordable to lower income gap in homeownership and reduce Minnesotans making 30% of average cost burden. median income or less. Housing for extremely low-income Minnesotans and j) Balance new and existing state supportive housing with social services are prevailing wage requirement particularly underserved by traditional modifications to ensure that market rate housing providers and require affordable housing construction committed ongoing operating funding along projects receiving public subsidy with initial capital support. remain financially viable. Response:The Legislature should: k) Support legislation that reduces the statutory 10-year warranty against a) Support the affordable housing major construction defects for new priorities of the Minnesota Housing condominium construction to help Finance Agency (MHFA) that benefit spur more condominium construction. cities, which include making resources and methods available to maintain LE-10. Resources for Affordable and improve existing affordable Housing homes, including publicly subsidized deeply affordable, and housing stock Issue: Cities, along with local housing that is aging such as naturally officials, are concerned about the need for occurring (unsubsidized) affordable proactive commitment at the state level to housing; aid cities to meet demand for affordable housing that is sensitive to local conditions, b) Provide stable and long-term funding, emerging trends, and changing including but not limited to dedicated demographics. This includes meeting the funding sources, for Minnesota needs of lowest-income households as well Housing and other affordable housing as an aging population and ensuring a wide programs that support local housing range of lifecycle housing options that allow efforts, including those that encourage seniors of all incomes to stay in their innovation and recognize regional community, addressing racial disparity gaps markets, provide flexibility for cities in housing, and responding to emerging to create partnerships and leverage trends, such as the need to preserve federally resources with private and public subsidized housing and naturally occurring entities. Support capital investment (unsubsidized) affordable housing. The resources for affordable and public League also recognizes that federal, state housing, stable and long-term funding and local governments all have a role to play for supportive services and programs in meeting affordable housing needs, that address homelessness and reduce overcoming barriers to housing stability barriers to stable housing and Council Packet Page Number 252 of 476 J3, Attachment 2 homeownership, consistently fund the expenditure under Minn. Stat. § state housing tax credit program and 462C.16 and expand TIF flexibility to contribution fund to continue building allow for; upon the state’s partnership with local g) Substantially increase long-term governments and the private sector in funding for the Economic the development of homeownership, Development & Challenge Fund to and multi-family rental assistance and leverage local private and public housing renovation programs; resources to develop workforce rental c)Consider establishing a program to and single-family homes; address immediate needs throughout h) Support legislation to provide sales, the year to provide a match for use, and transaction tax exemptions or housing or existing city-supported reductions for development and affordable housing projects for new production of affordable housing and construction or existing housing. This use state bond proceeds for land could include matching funds, issued banking and trusts as well as on a timeline that is consistent with rehabilitation and construction of local budgeting processes including affordable housing; the ability to utilize a reasonable i) Provide funding and financing tools to portion for administrative costs, for cities to create affordable senior local revenues allocated to a local housing for our aging population; affordable housing trust fund or other housing efforts; j) Provide funding and financing tools to cities to create affordable housing and d) Support the continuation and prevent foreclosure for veterans; expansion of formula-based aid funding distributed directly to cities to k) Support for funding to reduce the support locally-identified housing racial gap in homeownership rates, needs and support the inclusion of such as targeted homeownership allowing a percentage of formula- capacity building and homebuyer based housing aid to be put towards assistance; administrative costs cities incur to l) Support additional funding for the administer housing programs. housing choice voucher programs or e)Expand housing TIF district flexibility other rental assistance programs and to allow for use of the income average financial, tax, and/or other incentives test where one hundred (100) percent for rental property owners to of the housing project meets the participate in these programs; requirements for income averaging m) Support the continuation and possible under the Internal Revenue Code expansion of guardrails required by Section 42(g)(1)(c) resulting in an the current 4d Low-Income Rental average rent for all units in the Classification under Minn. Stat. § project that does not exceed 60 273.128 that provides a class rate percent. reduction in property taxes to f) Expand authority for all cities to qualifying low-income rental transfer unobligated pooled increment properties. Extend the 4d transition from a TIF district to support a local aid to all cities on a permanent basis housing trust fund for any eligible Council Packet Page Number 253 of 476 J3, Attachment 2 and base any program expansion of those funds if the expenditure is proposals of any state mandated class-transferred to housing initiatives that rate reduction on a full analysis of the serve 115% or less of local area impacts to local property tax bases. median income. Ensure that any modifications to LE-11. Greater Minnesota Housing class-rate reductions or market value exclusions are balanced between the Issue:Cities in greater Minnesota share tax benefit to existing and future many of the same housing needs as metro units that benefit from the property communities. However, not unlike differing tax reduction and the increased tax real estate markets within a city, greater burden on the existing property tax Minnesota communities often have vastly base due to any expansion; different market conditions for housing that can necessitate priorities that vary from n) Support sustainable funding for metropolitan areas. Greater Minnesota cities infrastructure grants currently face unique challenges that affect the available to cities to assist with the affordability, quality, and availability of cost of providing critical housing. While local communities in greater infrastructure and ensure that Minnesota are focusing on local efforts to residential sites are shovel ready for attract development and encourage growth, development; and assistance is often needed from state and o) Authorize resources by way of a tax federal resources to construct and credit, tax increment financing rehabilitate greater Minnesota housing stock including property in existing TIF and that assistance should better districts, and other policy tools or accommodate the varying realities of a general fund appropriations to diverse state and housing markets. support the conversion of existing Like many metropolitan cities, greater non-residential property, including Minnesota city housing studies often cite vacant properties, into multi-family challenges at many levels of the economic housing or new types of uses that spectrum that impact local economies and support economic growth of cities. population growth. However, incomes p) Support cities and Housing and within exclusively rural and rural/town mix Redevelopment Authorities’ counties are well below average incomes in affordable housing and exclusively urban counties. The US Bureau homeownership programs by of Economic Analysis demonstrates over a directing state agencies to eliminate or 62% earnings gap between entirely rural and reduce the transactional costs entirely urban counties. Greater Minnesota associated with the purchase, transfer, communities in many cases do not have a remediation, and preparation of state- significant percentage of high-earner owned remnant, undeveloped or workers that earn a high enough salary to underutilized properties that could be afford today’s newly constructed housing utilized for residential development. units. This factor along with the rising costs of construction materials and labor are q) Amend the pooling restrictions in outside of the control of local communities 469.1763 subd. 2d to increase the but lead to an overall lack of housing stock percentage of expenditures for in many greater Minnesota cities. activities located outside the district from 10% to 25% and the eligible uses Council Packet Page Number 254 of 476 J3, Attachment 2 However, one of the most vexing difference Response:The Legislature should: in the housing continuum is the lack of a) Appropriate funding to state production of market rate housing in rural assistance programs serving greater communities. The lack of market rate Minnesota including increasing base production has led to aging housing stock in appropriations for the Statewide greater Minnesota cities that hinders Affordable Housing Aid program to economic growth. At least 25% of the ensure all Greater Minnesota cities housing stock in 34 of greater Minnesota’s regardless of population receive a 80 counties was built before 1940 and only meaningful amount of resource via four counties in greater Minnesota have 5% formula for housing priorities and or more of their housing stock constructed in ensure other program appropriations 2010 or later. The aging owner-occupied to account for the state imposed and rental housing stock have low assessed prevailing wage requirements; values far below any reasonable cost of new b) Prevent Minnesota Housing Finance construction and thereby translates to an Agency from establishing scoring environment where lenders and developers criteria that changes the focus or often shy away from new market rate flexibility of the Statewide Affordable developments because of these valuations or Housing Aid Tier II program. low prevailing rents. c) Require a comprehensive analysis of The circumstances also mean that the few the state’s housing assistance affordable housing projects that do make programs to better determine the their way to greater Minnesota are often specific needs of greater Minnesota notably of higher quality than the average communities and adjust programs market rate housing stock if they were lucky accordingly; enough to produce any. Many of these affordable units rent for 20-37% higher than d) Change Tax Increment Financing what individuals would otherwise be able to rules to address specific housing afford in many greater Minnesota cities if challenges in greater Minnesota, they were buying a median valued home of including but not limited to, significant age. Though numbers certainly permanently extending the timeframe differ, modest market rate units that have for pooling redevelopment TIF been attempted or in some instances projects from 5 to 10 years to allow advanced in Greater Minnesota communities more flexibility for rural communities have a per unit cost of $140-$150,000 while to amass properties and finance a tax credit project with their added soft cost projects while removing blight and can often reach costs of $225,000 per unit or amending the affordability more. Project costs for workforce housing restrictions for housing TIF to be used can also become prohibitive for many for workforce or market rate housing developers in greater Minnesota due to production in areas of low market rate prevailing wage requirements. While greater production to provide parity at a 25- Minnesota cities are looking to gain every year duration; advantage and stretch limited local resources e) Appropriate more state resources and for housing, more state assistance should be establish grant and forgivable loan focused to allow rural communities to programs that support market rate minimize the financial gap of market rate and senior housing development production. Council Packet Page Number 255 of 476 J3, Attachment 2 proposals in greater Minnesota improved attic insulation levels, window communities where production is caulking and other air sealing, or improved extremely low and modify the light fixtures. Statewide Affordable Housing Aid While the goals of such a program are program income restrictions to allow laudable, there are a number of concerns for for market rate housing development; how this would actually be accomplished in and individual cities. Most cities do not, for f) Work to address the disconnect example, have point of sale inspections. between communities that follow the There will also be cases where the building Statewide Building Code and those could be structurally unable to meet high areas that do not to ensure a level attic insulation requirements, such as with playing field while encouraging manufactured housing or with older houses prudent health and safety measures with very little attic space. There are also and ensure that building code changes concerns that the cost of meeting these that add cost to housing construction energy requirements could result in and maintenance include a cost-homeowners being reluctant to sell their benefit analysis. Furthermore, the houses because of the expense of the building code should not be used to improvements that would be required to further disadvantage cities for the meet new standards or property owners investments they have made in passing on the cost of upgrades to tenants. infrastructure to comply with Increased exposure to educational regulatory and smart growth information, such as increased access to principles. energy audits and more familiarity with and access to programs that finance energy LE-12. Energy Efficiency efficiency projects could increase adoption Improvement Requirements for of energy efficiency improvements. Electric Housing utilities provide successful, cost-effective Issue: Rising energy costs have brought energy efficiency programs, have a customer attention to the poor energy efficiency of relationship with homeowners, a regulatory many private residences and multi-family requirement to meet energy demand properties, especially in older housing stock. reduction goals through conservation The affordability of housing could be spending, and access to technical expertise severely impacted by continued increases in that can take into account variations in home energy costs. Improvements in the building age and construction. Cities could, energy efficiency of housing would improve however, play a strong role in increasing the affordability of local housing options public exposure to approved educational and would help achieve state energy demand materials and providing incentives through and greenhouse gas emission reduction the use of other local financing support goals. The challenge is how best to achieve options for property owners, such as grants, that result. loans, and a Property Assessed Clean Energy (P.A.C.E.) program. Cities could Legislative discussions have suggested that also take advantage of the recently added minimum energy efficiency improvements assessment authority in Minn. Stat. § could be added as point-of-sale 429.021 to provide financing for energy requirements, including energy use improvement projects in residential disclosure and basic renovations such as properties of five or more units if a property Council Packet Page Number 256 of 476 J3, Attachment 2 owner petitions for an energy improvement 2024, legislation was passed to prevent project in an existing building. homeowner’s associations, condo associations, housing cooperatives, or any Response: The League of Minnesota covenant on real property from prohibiting a Cities agrees that there is a need to homeowner from having a licensed in-home improve the energy efficiency of day care. residential building stock to reduce energy consumption and improve the Response: The Legislature should amend affordability and livability of housing. Minn. Stat. § 462.357, subd. 7, to clarify The state should focus its efforts on that a licensed day care facility serving 12 improving educational programs and on or fewer persons is considered a improving the use of the existing permitted single-family use only if the statewide Conservation Improvement license holder owns or rents and resides Program (CIP) and similar programs and in the home. provide property owners with technical LE-14. Residential Programs and financial support for weatherization and energy efficiency improvements. Issue:Minnesota’s deinstitutionalization Further, the state should work to make policy seeks to ensure that all people can residential Property Assessed Clean live in housing that maximizes community Energy (P.A.C.E.) programs viable for integration. Minn. Stat. § 462.357, subd. 6a. local governments. states that “persons with disabilities should not be excluded by municipal zoning Cities should use their communication ordinance or other land use regulations from tools, such as newsletters, web sites, and the benefits of normal residential staff communications to promote these surroundings.” Minnesota cities support efforts and to help link property owners inclusion of people with and without to educational materials and program disabilities in their communities, but these resources. Additionally, cities could be policies are best implemented with minimal incentivized to adopt strategies to disclose encroachments on municipal zoning energy usage data for building owners to authority and positive working relationships identify options for cost-efficient energy between cities, care providers, and the state. improvements. On one hand, treating persons with LE-13. In-Home Day Care Facilities disabilities differently generally raises questionable issues of disparate treatment Issue: There are restrictions on the ability of a city to regulate licensed day care facilities. with the Federal Fair Housing Act. On the Minn. Stat. § 462.357, subd. 7, states that other hand, without some regulation, cities certain licensed residential facilities and day are powerless to protect individuals with disabilities from a clustering of residential care facilities must be considered a permitted single-family use for zoning programs within one neighborhood. As the Department of Justice has stated, while purposes. The restriction is designed to protect “in-home” daycare facilities, but the density regulations are generally suspect, “if a neighborhood came to be composed law applies even if the facility is not the primary residence of the day care provider. largely of group homes, that could adversely affect individuals with disabilities and This creates a loophole for providers to use a single-family home as a commercial daycare would be inconsistent with the objective of integrating persons with disabilities into the facility, which might not otherwise be allowable under a city zoning ordinance. In community.” (Joint Statement of the Council Packet Page Number 257 of 476 J3, Attachment 2 Department of Justice and the Department type of facility as a single-family residential of Housing and Urban Development.) use do not have to permit the use. To this end, and in upholding a state and Sufficient funding and oversight are needed local dispersal requirement, the Eighth to ensure that residents living in residential Circuit Court of Appeals stated that the programs have appropriate care and requirement was designed to ensure that supervision, and that neighborhoods and people with disabilities “needing residential residents of residential programs are not treatment will not be forced into enclaves of negatively impacted by high concentrations treatment facilities that would replicate and of these types of programs. As it stands now, thus perpetuate the isolation resulting from there is nothing preventing clustering of institutionalization.” Familystyle of St. Paul, residential programs in most cities in the Inc. v. St. Paul, 923 F.2d 91, 95 (8th Cir. state. Cities want to be part of the solution, 1991). and more than anything cities desire to be, and should be, partners in serving the City authority to regulate the locations of policies of deinstitutionalization. Cities residential programs is limited by state have an interest in, and are in the best statute and the federal Fair Housing Act position, to preserve a balance in residential (FHA), although Minn. Stat. § 245A.11, neighborhoods between residential programs subd. 4, prohibits the Commissioner of and all other uses. Because Minnesota cities Human Services from granting an initial are committed to inclusion of all individuals, license to a residential program of six or it is in the best interest of the state, care fewer people within 1,320 feet of an existing providers, and those individuals served, that residential program in cities of the first all parties include cities as partners before class. opening a residential program to best plan In 2015, Minn. Stat. § 245A.11, subd. 4, was for community integration. amended to clarify that the Commissioner of In 2024, legislation was passed that Human Services is required to approve prohibited all cities from subjecting state licenses for “community residential settings” licensed group assisted living facilities within 1,320 feet of existing residential licensed under Minn. Stat. § 144G and programs. A “community residential Minn. Stat. § 245D.02 with six or fewer setting” is commonly known as adult foster residents from any city-imposed rental care. While this was the original intent of licensing requirements. the legislature, statutory terms changed over the years; this amendment was to make Response:The legislature should require various statutory references consistent. state licensing agencies to directly notify cities of approved licenses prior to issuing In 2022, Minn. Stat. § 245A.11, subd. 2, was licenses, and maintain existing statutory amended to temporarily allow licensed requirements for licensed and registered residential care services provided to more providers that operate residential than four people with developmental programs, to notify the city before disabilities in a supervised living facility, properties are operated. Cities should be including intermediate care facilities for provided with the necessary contact people with developmental disabilities as a information after a residential program is permitted single-family residential use at an licensed or registered. Providers applying increased capacity of seven to eight people to operate residential programs should be until July 2023. Cities that have zoning regulation already in place prohibiting this Council Packet Page Number 258 of 476 J3, Attachment 2 required to contact the city to be Response:The Legislature should: informed of applicable local regulations. a)Strengthen and clarify cities’ Additionally, licensing or registering authority to carry out policies that authorities must be responsible for offer developers a range of incentives quickly responding to life-safety issues in return for including a designated within a property and issues that arise number of affordable units in their that impact surrounding residents projects and clarify in statute that including the removal of any residents both statutory and charter cities have incapable of living in such an the option to collect a payment in lieu environment, particularly if they become of the inclusion of affordable housing a danger to themselves or others. The units that can be directed to a local Legislature should recognize the housing trust fund to support importance of city rental licensing affordable housing preservation, requirements that ensure minimum life development, and tenant stabilization; safety standards, hold providers b) Identify strategies to ensure long-term accountable, and protect residents. The affordability of rental and owner- League supports repealing the legislation occupied housing produced as a result passed in 2024 that prohibited all cities of such policies and practices; from subjecting state licensed group c) Focus state housing policy to support assisted living facilities licensed under for local assessment of housing needs Minn. Stat. § 144G and Minn. Stat. § and direct additional state resources 245D.02 with six or fewer residents from and the full exercise of local authority any city-imposed life safety rental to increase development of affordable licensing requirements. The League also rental units and access to entry-level, supports the establishment and owner-occupied housing; and enforcement of appropriate non- concentration standards to prevent d) Support voluntary measures to clustering of residential programs for all encourage cities to adopt and carry sizes of Minnesota Cities. out land-use plans, activities, and subdivision regulations aimed at LE-15. Inclusionary Housing providing for construction and Issue: Provisions in current state statute marketing of housing where a portion (Minn. Stat. § 462.358, subd. 11) allowing of all new units are affordable to cities to enter into development agreements lower-income households. for the inclusion of a portion of the units in LE-16. Community Land Trusts the development to be affordable for low- or moderate-income families have been a Issue:The increasing price of land available source of conflict between cities and for housing development, particularly for housing developers. retaining affordability of housing for lower- income households, is a concern throughout Cities are concerned builders that view this the state. Creating more permanently statute as a restriction on local authority to affordable, owner-occupied housing depends adopt policies that promote availability of heavily on maximizing the cost- housing affordable to those who are unable effectiveness of taxpayer investments. The to purchase or rent housing at price points Legislature has previously appropriated that the market alone provides. funding and granted the Minnesota Housing Council Packet Page Number 259 of 476 J3, Attachment 2 Finance Agency authority to assist cities Response:The League of Minnesota with funding community land trusts (CLTs) Cities supports a balanced approach to for affordable housing. telecommunications policy that allows new technologies to flourish while Currently, Land Trust properties have a tax preserving local regulatory authority. classification of .75% and property owners Regulations and oversight of must pay property taxes based on the market telecommunications services are value of the property, which is assessed important prerogatives for local relative to neighboring properties. However, government to advance and balance because land trust properties are to remain community interests, including ensuring permanently affordable, land trust owners public safety, ensuring equitable access, can only receive a portion of the maintaining high quality basic services appreciation of the value of the home when that meet local needs, spurring economic a sale is made. development, and providing affordable Response: The Legislature should: rates to all consumers. Policies should strengthen and not diminish local a)Support continuation of the land trust authority to manage public rights-of-way capacity-building program and including public and private provide capital start-up funds so infrastructure, to zone, to collect community land trusts can continue to reimbursement of costs and reasonable offer gap financing, interest rate compensation for the use of public assets, write-downs, predevelopment or to work cooperatively with the private financing, and financial underwriting sector. The League opposes the adoption and explore other incentives for of state and federal policies that restrict homeowners to sell their properties to cities’ ability to finance, construct, and land trusts to build capacity; and operate telecommunications networks. b)Support class-rate reduction for LE-18. Broadband community land trust properties equivalent to the existing 4d Low- Issue: High-speed Internet is essential Income Rental Classification so long infrastructure needed by cities to compete in as the reduction in property taxes does a global economy. Yet many communities not result in an undue tax burden on do not have access to broadband at other properties that will have to affordable prices. High fixed costs, low accommodate the shift in property density, and short-term return-on-investment taxes. thresholds for private sector providers contribute to the lack of broadband across LE-17. Telecommunications and the state. Investing in universal broadband Information Technology access has substantial local and regional Issue: Telecommunications and information economic benefits for communities of all technology is essential public infrastructure sizes. Cities and other local units of for the efficient, equitable, and affordable government are facilitating the deployment delivery of local government services to of broadband services to increase residents and businesses. connectivity, reliability, availability, and Telecommunications includes voice, video, affordability for residents, schools and data, and services delivered over cable, businesses through a variety of models, telephone, fiber-optic, wireless, and all other including municipal broadband and public- platforms. Council Packet Page Number 260 of 476 J3, Attachment 2 private partnerships. However, attempts authorized by the fedral Infrastructure have been made to restrict cities from Investment and Jobs Act of 2021. providing telecommunications services, Response: To promote economic particularly in unserved or underserved development, education and achieve state areas. Past court cases have overturned broadband goals, the Legislature, interpretation by the Federal Governor’s office, and state agencies Communications Commission (FCC) that should: states may not limit the extension of a) Identify and implement actions for the municipal broadband services from one city state to reach and maintain a position to another. in the top five states for broadband Due to the high costs of broadband speed that is universally accessible to infrastructure, the state continues to expand residents and businesses; its role to identify and formulate tools and b) Make significant investments to the provide resources to expand broadband Border-to-Border Broadband Grant access. The Office of Broadband Program and continue to encourage Development within the Department of public/private sector collaboration Employment and Economic Development including options that use technologies (DEED) has developed a strong partnership such as wireless while remaining through its efforts on broadband consistent with the League’s Right-of- infrastructure deployment and digital Way Management policy to cost- inclusion between the state, local effectively expand broadband service communities, and broadband providers to access; deploy high-speed Internet in unserved and underserved areas. The Office supports c) Support measures to authorize and broadband expansion through broadband encourage cities and other local units mapping and managing the state’s Border- of government to play a direct role in to-Border Broadband grant program, which providing broadband infrastructure is funded by state general fund and/or services; appropriations and more recently funds d) Offer incentives to private sector authorized by the federal government for service providers to respond to local broadband deployment. In addition to the or regional needs and to collaborate state’s focus on extending broadband to with cities and other public entities to unserved areas, Minnesota must also be on deploy broadband infrastructure the cutting edge for next-generation capable of delivering sufficient broadband investments and ensuring that bandwidth and capacity to meet Minnesota’s statutory speed goals in Minn. immediate and future local needs; Stat. § 237.012 are updated to reflect emerging technologies and broadband use e) Adopt policies which seek to position trends. It is also critical that the state Minnesota as a state of choice for maintain authorization of stable general fund testing next-generation broadband spending for broadband infrastructure technologies; deployment as a priority to address the f) Affirm that cities have the authority to state’s statutory speed goals and utilize state partner with private entities to finance resources to bolster federal broadband broadband infrastructure using city funding including the Broadband Equity bonding authority; Access and Deployment (BEAD) Program Council Packet Page Number 261 of 476 J3, Attachment 2 g) Remove barriers that limit the ability including the ability for cities to for the state to deploy Border-to-franchise broadband providers; Border Broadband grant funds in On the federal level, the League urges areas that may be served by existing Congress to adopt laws restoring the or future federal broadband programs ability of municipalities to extend beyond and those that restrict anti- their borders to serve unserved and competitive practices, and prevent underserved areas. The League also urges predatory action that prevent or Congress and the Federal impede cities, municipal utilities, Communications Commission to schools, libraries, and other public structure federal broadband grant sector entities from collaborating and programs to work in conjunction with the deploying broadband infrastructure state’s Border-to-Border Broadband and services at the local and regional grant program and not prohibit state level; funding in areas that receive federal h) Supporting funding and efforts to broadband assistance if those areas could continuously update and verify also benefit from state funding. comprehensive statewide street-level LE-19. Competitive Cable mapping of broadband services to Franchising Authority identify underserved areas and connectivity issues; Issue: Municipal cable franchising has resulted in equitable construction with cable i) Discuss how well the FCC and state operators providing uniform quality of cable broadband maps document actual service and uniform cable pricing to city broadband coverage across Minnesota residents. Municipal franchising authorities including wireless options. These have acted to protect cable subscribers and maps are used by funders to have required cable operators to provide determine grant program eligibility public benefits, such as the construction of making overstatement of available municipal networks and access channels. services highly consequential with Communications systems not subject to negative impacts for rural places; franchising in many areas have systems j) Recognize the crucial role of local incapable of serving municipal residents government in the work of the uniformly. Municipal cable franchising has Governor’s Broadband Task Force been the most successful authorization of and fund the Office of Broadband communications service providers with Development (OBD) and ensure base access to the public rights-of-way including budgets supporting OBD remain at equitable deployments resulting in uniform levels sufficient for it to meet its quality of service, pricing and public statutory mandates; benefits. k) Support the creation of new policies Response:State and federal policy should and resources that improve maintain local cable franchising authority broadband adoption, hold internet and local oversight of the public rights-of- service providers receiving funding way and the legislature and federal accountable, achieve significantly government should take all efforts higher broadband speeds, and support necessary to update and improve efforts to improve digital inclusion municipal cable franchising authority in Council Packet Page Number 262 of 476 J3, Attachment 2 all state and federal legislative and state-of-the-art network applications; regulatory proceedings to reflect market and trends and emerging technology. f) Strengthening local authority to a) Maintaining provisions in Minn. Stat. enforce customer service standards Ch. 238 that establish and uphold and transparency in pricing. local franchising authority, including LE-20. Public Right-of-Way the authority to receive a franchise fee Management based on gross revenues irrespective of any in-kind contributions; Issue:Cities hold local rights-of-way in trust for the public as an increasingly scarce b) Refraining from adopting any FCC and valuable asset. As demand increases for rule changes that would further use of public rights-of-way (PROW), cities restrict existing local authority to must coordinate the use of this resource charge for and control access to public among competing uses and to manage the rights-of-way by all video and cable use of the PROW for delivery of essential service providers; municipal utility services. Cities continue to c) Maintaining local authority to charge experience increased demand for space in fees on providers to ensure the the PROW including the siting of provision of public, educational, underground wired and overhead wireless governmental (PEG) programming, facilities and sites for wireless and interactive technologies to require communications. Additionally, technology the provision of video channels and located in the public right-of-way will video streaming for PEG continue to support the increase of new programming with video and audio modes of mobility and delivery methods quality/channel location equivalent to including Connected Autonomous Vehicles that of the local broadcast stations, (CAV) that may also operate in the public and ensuring programming is right-of-way. While local management accessible and searchable by all responsibilities vary and are site specific, the residents of the local authority increased demand for utilizing space in the through detailed Electronic public right-of way underscores the Programming Guide listings and necessity for maintaining local authority. other navigation and distribution Response: State and federal policymakers technologies that are equivalent to and regulators should: that of local broadcast stations; a) Support municipal authority to d) Advancing legislation that dedicates manage and protect public rights-of- funding for municipal digital media, way, including franchising, reasonable such as a dedicated tax or fee on zoning and subdivision regulation, digital products reasonable regulations of structures in e) Ensuring continued cost-effective local the public right-of-way, and the government access to capacity on exercise of local police powers; institutional networks (I-Nets) b) Recognize that cities have a provided by local cable system paramount role in developing, operators for public safety locating, siting, and enforcing utility communications, libraries, schools, construction and safety standards; and other public institutions to use Council Packet Page Number 263 of 476 J3, Attachment 2 c)Support municipal authority to infrastructure in the public right-of- franchise all service providers that site way to provide for increased infrastructure in the public right-of-connectivity for Connected way and ensure local authority to Autonomous Vehicles (CAV). control use of public rights-of-way. LE-21. Wireless Infrastructure and d) Support legislation to authorize Equipment Siting Minnesota cities to franchise Issue: Demand for wireless communication broadband providers and to receive service has increased requests by private and franchise fees under Minn. Stat. Sec. public sector providers to site additional 222.37 and 116J.399, Subd. 8 and such towers, antennas, small cells and other other statutes as necessary. facilities in cities. It is anticipated that e)Encourage a collaborative process applications to install small cell wireless with stakeholders, including cities, to facilities and distributed antenna systems determine any revised standards if (DAS) will continue to grow as technology needed; evolves over time. Despite changes made to Minn. Stat. § 237.163 that created a special f) Recognize that as rights-of-way process for the siting of small wireless become more crowded, the costs of facilities, maintaining cities’ local zoning disrupting critical infrastructure authority and police power to manage and become evident and the exercise of coordinate the siting of these facilities local authority to manage competing continue is necessary and appropriate. demands and ensure public safety in the PROWs becomes increasingly Response: Cities must continue to exercise important; full authority to consider public health, safety, and welfare concerns in g) Ensure the removal of abandoned responding to requests to site, upgrade or equipment and accompanying support alter wireless facilities. The Legislature, structures by the service providers Federal Communications Commission from the public right-of-way; (FCC), and Congress should not place h) Maintain the courts as the primary further restrictions on city authority to forum for resolving disputes over the manage the siting of wireless facilities in exercise of such authority; the public right-of-way nor enact i) Maintain existing local authority to compensation restrictions that would review and approve or deny plans for result in local government subsidization installation or relocation of additional of wireless providers. Furthermore, cities wires or cables on in-place utility must have recourse to require removal by poles. In the alternative, cities should the provider of equipment deemed have broader authority to require the abandoned. underground placement of new and/or LE-22. County Economic existing services at the cost of the Development Authorities utility or telecommunications provider; Issue: The 2005 Legislature authorized all counties outside the metropolitan area to j) Support the collaboration with local establish county economic development units of government as the state authorities (EDAs). Minn. Stat. § 469.1082 explores efforts to expand provides specificity on certain process and Council Packet Page Number 264 of 476 J3, Attachment 2 limitations issues, including the ability of of Minnesota’s efforts to improve workforce cities to prohibit the county EDA from readiness. By making firms and employees operating within the city as well as within an more competitive, incumbent worker agreed-upon urban service area or within a training can increase wages, increase distance approved during the formation of employment opportunities, fill skilled the county EDA. County EDA activity in worker gaps, and keep jobs and employers areas surrounding cities will directly impact in their communities. The Minnesota Job the adjacent city in terms of service Skills Partnership is one proven tool that provision and taxes. provides training to thousands of incumbent workers each year. Response: The Legislature should require city approval for proposed county EDA Response: The Legislature should: activities within two miles of a city. a) Fully fund the Minnesota Job Skills Partnership and other workforce LE-23. Local Appropriations to training programs administered by Economic Development the Department of Employment and Organizations Economic Development, the Issue: Cities and towns are allowed to Department of Human Services, and appropriate up to $50,000 per year from the various education agencies; general fund revenue to an incorporated b) Provide additional flexible funding to development society or organization for local workforce councils, including “promoting, advertising, improving, or governments and educational developing the economic and agricultural facilities, for the purpose of upgrading resources” of the city or town. The $50,000 the skills and productivity of the cap has been in place since 1989 and places workforce, and pursue additional unnecessary restrictions on a city’s ability to creative programming and funding to work with non-profit development prepare and place underemployed corporations. Local governments should and unemployed Minnesotans, as well have the flexibility to work with outside as address the issue of those phasing organizations if local elected officials out of the workplace and retiring; believe it is in the best interest of their c) Provide additional funding for communities to do so. Such appropriations programs specifically designed to are subject to the same budgetary oversight address youth employment such as as other government expenditures, and local career and workforce readiness elected officials are ultimately responsible to programs, and employment the voters for how local tax dollars are disparities; and spent. d) Continue to support cities that Response: The Legislature should amend provide workforce programs that are Minn. Stat. § 469.191 to eliminate or coordinated with and complement increase the cap on appropriations to state and regional efforts by seeking incorporated development societies or municipal approval before making organizations. any changes to those service areas. LE-24. Workforce Readiness Issue: Incumbent worker training and education must be an important component Council Packet Page Number 265 of 476 J3, Attachment 2 LE-25. Business Development LE-26. Remediation and Programs Redevelopment Issue: Programs such as the Minnesota Issue:Communities across Minnesota are Investment Fund (MIF), the Job Creation faced with expensive barriers to re-using Fund (JCF), the Redevelopment Program, property. These roadblocks include and contaminated site clean-up grants deteriorating, obsolete, and vacant provide funding opportunities for structures, and contaminated land. communities and businesses to develop their Larger scale redevelopment projects often local and regional economies. These well- require the purchase and assembly of utilized programs create infrastructure, multiple, smaller parcels of land that are not revitalize property, and help businesses suitable for development on their own. generate and expand jobs. Cities are key Cities and development authorities may facilitators in the implementation of need to purchase land over a period of years economic development strategies through and hold them for later development, land use and other policies. reducing the effectiveness of traditional Response: The League of Minnesota financing tools that require immediate Cities supports continued and sustainable development. funding for the Minnesota Investment Such barriers pose significant problems for Fund and the Job Creation Fund to assist cities seeking to re-use existing local communities and businesses in infrastructure, maintain and improve creating, growing, and retaining jobs. The property tax base, provide jobs and housing Legislature should also provide dedicated opportunities, and preserve historic and sustainable funding for the structures. Land remediation activities are Redevelopment Grant and Demolition particularly costly because significant Loan Program. remediation must occur before private-sector DEED should solicit input from cities interest can be generated. Exacerbating this about how best to implement the Fund, situation, the land remediation programs and make adjustments to the administered by the Department of administration of the program as Employment and Economic Development necessary. The League supports (DEED) and the Metropolitan Council Department of Employment and programs continue to be underfunded. Economic Development (DEED) studying Response: In recognition of the unique and making recommendations on needs of land remediation projects methods to improve the geographic statewide, the Legislature should increase balance of recipients, by allowing the use funding for the statewide redevelopment of additional evaluation criteria beyond account. The League of Minnesota Cities the current job creation goal such as also supports the creation of a land providing higher-wage jobs or achieving assembly grant or loan program to assist racial equity policy goals. that would cities and economic development allow all regions of the state to better authorities with the challenge of prosper. assembling small parcels for redevelopment. The League supports competitive programs administered by DEED that distribute the funds equitably Council Packet Page Number 266 of 476 J3, Attachment 2 between greater Minnesota and the metro historic redevelopment projects that are area. The Legislature should continue its complex and time consuming. support and increase funding levels for LE-27. Development Authority state and regional programs to assist in Levy Limits contamination cleanup and brownfields remediation efforts. Issue: Under Minn. Stat. § 469.107, § 469.033, and § 469.053, Economic The State should recognize that the Development Authorities (EDAs), Housing rehabilitation of land due to obsolescence and Redevelopment Authorities (HRAs) and or incompatible land uses is a component port authority levies for economic of redevelopment. The Legislature should development activities are capped. These amend the definition of redevelopment limits can hinder the planning of future district in Minn. Stat. § 469.174, subd. 10, development. to include the obsolescence and incompatible land uses included in a Response:The Legislature should renewal and renovation district (Minn. increase or repeal levy limits or increase Stat. § 469.174, subd. 10a), thereby the levying authority for EDA, HRA, and providing cities with more flexible tools to port authority activities in Minn. Stat. ch. address land remediation and 469. redevelopment. LE-28. Tax Increment Financing The Legislature should also revive a (TIF) program similar to “This Old Shop” Issue: TIF is the most important tool (Minn. Stat. § 273.11, subd. 19), which available to fund community development would allow cities greater flexibility in and redevelopment efforts. Over time, the targeting commercial development and TIF law has become increasingly complex redevelopment. The Legislature should as the Legislature seeks to provide cities consider enacting authority that would with the resources to grow the state’s provide a tax deferral on improvements economy while maintaining limits on the use to commercial buildings, including those of property taxes. Cities need greater located in designated rehabilitation or flexibility to use TIF for community and historic preservation districts. The economic development that support a city’s program’s age limit qualifications under residents and businesses. Further Minn. Stat § 273.11, subd. 19, should be restrictions of TIF would render the tool less modified to include properties that are at effective and will hinder local efforts to least 30 years old. support job creation, housing, The League is supportive of recent redevelopment and remediation. extensions to the Minnesota Historic The need for flexibility has been accentuated Structure Tax Credit in Minn. Stat. § due to the pandemic economic downturn 116J.8737, which provides a 20 percent which has dramatically slowed existing tax rebate for rehabilitation of qualified projects that must continue to comply with historic buildings. However, the statutory timelines. Many projects will have Legislature should eliminate the sunset difficulty meeting time-line requirements provision of the tax credit to provide such as the five-year rule without special certainty to cities and their project legislation authorization. developer partners to proceed with Council Packet Page Number 267 of 476 J3, Attachment 2 Further restrictions of TIF would render the g) Increase the ability of TIF to facilitate tool less effective and will hinder local redevelopment and housing activities; efforts to support job creation, housing, h) Modify the housing district income redevelopment and remediation. qualification level requirements to Response: The Legislature should not allow the levels to vary according to enact future TIF law restrictions, rather individual communities; the Legislature should: i) Encourage compact development and a) Modify Minn. Stat. 469.174, subd. 10, consider reauthorization of compact to allow a redevelopment district to be development TIF districts with established where only 50 percent of modifications to increase their the buildings are required to be effectiveness; structurally substandard to a degree j) Discourage any statutory mechanisms requiring substantial renovation or that directly or indirectly decrease the clearance. impact of city redevelopment and b) Clarify that expenditures for the economic development projects; necessary maintenance of properties k) Simplify the substandard building test within TIF districts are an allowable to resolve ambiguities and reduce the use of tax increment under Minn. Stat. continued threats of litigation; § 469.176, subd. 4; l) Create an exception to the interfund c) Allow term extensions for loan resolution requirement in Minn. redevelopment districts which are Stat. 469.178, subd. 7, to authorize the taking longer to develop; development authority to delegate to a d) Amend Minn. Stat. § 469.1763, subd. staff person the ability to set the terms 3, to eliminate the “Five-year Rule” and conditions of an interfund loan. for districts that are taking longer to m) Amend the definition of develop; redevelopment district under the TIF e) Amend Minn. Stat. § 469.174, subd. Act to include the obsolescence and 25, to provide time limits on the incompatible land uses included in a "deemed increment" created by land renewal and renovation district, sales, leases and loans, and allow thereby providing cities with more authorities greater flexibility in the flexible tools to address land use of lease revenues to fund ongoing remediation and redevelopment. operations; n) Amend Minn. Stat. 469.1763 subd. 2 f) Expand the use of TIF to assist in the to provide development authorities development of technological greater flexibility to address local infrastructure and products, housing needs by removing section 42 biotechnology, research, multi-modal requirement for housing projects transportation, adaptive reuse and outside the district. transit-oriented development, LE-29. Property Tax Abatement restoration of designated historic Authority structures, and non-wetland areas where unstable/non-buildable soils Issue: Although tax increment financing exist; (TIF) continues to be the primary financing Council Packet Page Number 268 of 476 J3, Attachment 2 mechanism for local development projects, limits under Minn. Stat. § 469.1813, tax abatements provide cities with an subd. 6; and important, additional economic development d) Amend Minn. Stat. § 469.1813, subd. tool. Recognizing the need for municipal 5, to create a streamlined notice and development tools, the 2008 Legislature hearing requirement for multi- expanded the abatement authority by jurisdictional tax abatement projects. converting the limit on abatements from ten percent of the current tax levy to ten percent LE-30. Revisions to the OSA Audit of net tax capacity. Function The tax abatement law requires that a Issue: Pursuant to Minn. Stat. § 469.1771, political subdivision may only approve an the Office of the State Auditor (OSA) is abatement after holding a public meeting responsible for tax increment financing with a minimum of 10 days published public (TIF) oversight. As part of its review of TIF notice. When more than one political districts, the OSA identifies alleged subdivision abates property taxes for a violations of the TIF laws and issues development project, there must be separate noncompliance notices to TIF authorities. In notices and hearings for each subdivision. recent years, a number of cities have This requirement can be particularly received letters of inquiry from the OSA that burdensome for programs designed to raise questions about practices long accepted develop multiple properties over an by the OSA or limit statutory definitions that extended period of time. If one political have not been amended by the legislature for subdivision could be designated as the lead over a decade. The audit power in Minn. entity for purposes of the notice and hearing Stat. § 469.1771 is necessary to ensure that requirements, such projects could be made individual cities comply with the TIF more efficient without sacrificing public statutes, but is not effective in clarifying the transparency. legislative intent of the TIF statutes. Property tax abatements should not be In addition, the TIF statute requires that considered a replacement for TIF. authorities respond to noncompliance notices within 60-days of receiving the Response: In light of current economic notification. There is no deadline for the conditions existing property tax OSA to respond, and authorities often do not abatement authority should be receive timely responses on the matter from strengthened. The Legislature should: the OSA. Government agencies typically a) Expand the abatement authority to have response-time deadlines, and it is allow abatement revenues to be used appropriate for the OSA to respond by a for economic development activities time certain to provide finality to the audit such as workforce readiness and process. Any final disposition notice must assistance programs, and technology be clear about the final disposition of the infrastructure improvements; matter. b) Develop a state fund to facilitate state Finally, the statutory audit enforcement participation in abatement projects by process does not create an environment allowing the state property tax to be where these policy questions can be fairly abated; and sufficiently resolved. County attorneys lack the resources to prioritize TIF disputes c) Increase funding caps under Minn. and lack the subject matter expertise needed Stat. § 469.1813, subd. 8 and duration Council Packet Page Number 269 of 476 J3, Attachment 2 to analyze the merits of the OSA’s audit inception of the district. Accordingly, TIF findings. This results in excessive deference authorities can receive noncompliance granted to the OSA’s original audit findings. notices for alleged violations that occurred Faced with the potential loss of increment, 20 or more years ago. Often, staff and payment of attorney fees, and small record-keeping procedures have changed, likelihood of success on the merits, cities and TIF authorities find it difficult to often acquiesce to the OSA to save time and reconstruct the past in order to identify and money. remedy these situations. Similarly, the OSA claims the authority, based on the state’s Response: The League of Minnesota records retention schedule, to audit TIF Cities believes there should be a more districts for up to 10 years after defined process to establish rules or decertification, which requires cities to guidelines for TIF authorities with expend staff resources to maintain files and adequate input from local government a working knowledge of old districts for an officials and public finance professionals unreasonable period of time. prior to their adoption. Response: A reasonable timeframe within In the event that the OSA determines to which alleged violations are identified issue a final noncompliance notice to a should be established. The Legislature TIF authority, the Legislature should should reasonably restrict the OSA’s require the OSA to issue the notice within ability to issue noncompliance notices to 60 days of receiving the authority’s the six-year period prior to the notice’s response. Any final noncompliance notice issuance date. The Legislature should also should contain the OSA’s final position require the OSA to conduct any audits on on the matter, the date upon which it decertified districts within one year of forwarded the matter to the county decertification. attorney, and the next steps that are required to be taken according to state LE-32. Workforce Housing law. Upon expiration of the 60-day Issue: Job creation is one of the period, the authority should be deemed to fundamental goals of economic be in compliance with the TIF laws if no development. When employers create new final noncompliance notice is received. jobs through expansion or relocation there In order to ensure a fair process to must be sufficient housing in the host resolve disputes over TIF findings of the community for the new workers and their OSA, the Legislature should consider families to live. In rural communities, a lack whether the authority to resolve such of housing stock for new workers can disputes should be shifted from county prevent a planned expansion or relocation, attorneys to the Office of Administrative hampering job growth and economic Hearings. development. The economics of building a housing development in greater Minnesota LE-31. OSA Time Limitations communities makes private development Issue: The Office of the State Auditor difficult, and workers with higher paying (OSA) has the authority to issue jobs do not qualify for traditional affordable noncompliance notices for every existing tax housing. This housing gap can bring increment financing (TIF) district in the development and job growth in a community state for alleged violations of the TIF laws. to a halt. This authority extends retroactively to the Council Packet Page Number 270 of 476 J3, Attachment 2 In 2014, at the urging of cities through proposed TIF plan and an estimate of the Minnesota, the Legislature created a fiscal and economic implications of the workforce housing pilot program for three proposed TIF district at least 30 days before cities in Roseau and Pennington Counties. In the public hearing required by Minn. Stat. § 2015 the Legislature passed League-469.175, subd. 3. The county auditor and sponsored legislation that created the school board shall provide copies of these workforce housing development program TIF plan materials to members of their and appropriated $4 million to the boards. These current requirements provide Department of Employment and Economic sufficient notice to taxpayers and other Development (DEED) to administer the government entities about proposed TIF program. Once grant awards from DEED districts. were made, prevailing wage requirements, Response: The League of Minnesota construction costs, and land prices have Cities supports additional tools for local shown to lessen the effectiveness of creating communities to develop workforce more workforce housing units. It is housing: important to ensure the appropriate a) MHFA should solicit input from local resources and process exist for the communities to ensure that the goals Department of Labor and Industry (DLI) to of the Workforce Housing determine representative and accurate Development Program are met, and prevailing wage amounts in different areas MHFA should award funds to eligible across the state. projects as quickly and efficiently as The 2017 Legislature approved funding for possible; the Workforce Housing Grant Program at $2 b) The Legislature should increase million each year. The program was moved funding to the Economic Development from DEED to be administered by MN and Housing Challenge Program to Housing Finance Agency (MHFA) in Minn. aid housing in support of job growth, Stat. 469A.39 with a change in and amend Minn. Stat. § 462A.33 to qualifications that gives preference to cities either increase or eliminate the under 30,000 population (rather than 18,000 maximum income levels for previously). participation in the program; and The 2017 Legislature also approved a new c) The Minnesota Housing Finance use of TIF authority for workforce housing Agency should make administrative (Minn. Stat. § 469.174-176). In addition to changes to the Economic Development requirements under Minn. State. 469.175, and Housing Challenge Grant subd. 3, county and school boards must program to streamline the application approve the TIF plan before it is enacted and process, reduce the per-unit cost of the authority sunsets in 2027. These constructing affordable housing, and additional requirements specific to increase the construction of affordable workforce housing TIF districts put rental units at 80% of median income additional barriers on workforce housing and owner-occupied units at 115% of development and does not fully recognize median income, as currently allowed the role of cities as the typical lead by state and federal law; and government entity on housing projects. Minn. Stat. § 469.175, subd. 2, currently d) The Legislature should modify the requires cities to provide the county auditor statewide housing tax credit to more and clerk of the school board with the Council Packet Page Number 271 of 476 J3, Attachment 2 effectively spur development of MAP-21 and Minnesota GO. Transit workforce housing by removing Improvement Areas include parcels of land income restrictions for projects in that are located in part within one-half mile Greater Minnesota and allowing of a transit station. A transit station is individual contributions to be eligible defined as a physical structure or designated for donation to a city’s local housing area which supports the interconnection of trust fund.various transportation modes, including light rail, commuter rail and bus rapid transit, and e)The Legislature should scale the which promotes and achieves the loading, Workforce Housing Development discharging and transporting of people. The Program to account for the additional commissioner of DEED may designate a cost associated with the prevailing Transit Improvement Area if it will increase wage requirements. the effectiveness of a mass transit project by f) The Legislature should streamline the incorporating one or more modes of public provisions in Minn. Stat. § 469.175, transportation with commercial and housing subd. 3 required of cities to establish a development, as well as providing a clean workforce housing TIF district and pleasant place for pedestrian use. DEED including eliminating the provision has designated over 50 Transit Improvement that requires a city to determine Areas; all but two are located in the seven- average vacancy rates and county county metropolitan area. Although the board and school board approval for language passed and was signed into law by a workforce housing TIF plan before the governor (Minn. Stat. § 469.35), there it is enacted and the Legislature was no funding put into place to implement should also eliminate the sunset of the the new program. workforce housing TIF authority. Response: The League of Minnesota LE-33. Development Along Transit Cities urges the Legislature to increase the ability of traditional economic Corridors development tools, including tax Issue: While the establishment of transit increment financing, tax abatement, and lines and corridors provide the impetus for special service districts, to address the economic development, there are limits to needs of transit-oriented development. existing development tools that hinder full The League encourages the Legislature to development of transit corridors. For appropriate bonding and general fund example, acquisition of land outside of the dollars for revolving loans and grants to line but within the corridor can be difficult, fund the TIA program. Additionally, the and current tools are not well-suited for the Legislature should consider adding park creation of public spaces, enhancement of and ride facilities to the list of qualifying infrastructure, and investments such as transportation modes, as defined in Minn. parking ramps that are necessary Stat. § 469.351. Because the majority of components of a transit-oriented the DEED-designated Transit development plan. Improvement Areas are currently located in the seven-county metropolitan area, In 2008 the Department of Employment and increased funding for this program will Economic Development (DEED) was not be balanced between greater authorized to establish Transit Improvement Minnesota and the metro area. Additional Areas, which should complement long-term funding for this program should not transportation planning initiatives such as Council Packet Page Number 272 of 476 J3, Attachment 2 change the overall balance of state that provide the greatest return on funding between greater Minnesota and investment while also not unduly the seven-county metropolitan area. burdening Greater Minnesota projects where mitigation efforts may not be as LE-34. Greenhouse Gas Emissions efficient or implementable. The League and Vehicle Miles Traveled also supports removing the vehicle miles Assessment Requirements on traveled assessments as a requirement when a project improves greenhouse gas Trunk Highway Projects emissions. In Greater Minnesota, where Issue: For all grade separation and capacity feasible transit solutions do not uniformly improvement projects on the trunk highway exist, there must be reasonable system that are not in the Statewide alternatives for greenhouse gas emissions Transportation Improvement Program offsets. New interchanges should be (STIP) or have not submitted a layout to the exempt from both assessments when the Minnesota Department of Transportation project provides economic benefits. Safety (MnDOT) for approval by February 2025, improvement projects aimed at reducing state statute requires assessments of fatalities should also be exempt due to greenhouse gas emissions and vehicle miles public safety benefits. Finally, the League traveled. The law applies to capacity supports state funding for mitigation improvement projects with a cost of $15 projects so mitigation/offsets will not have million or more in the metro area and $5 to be included in the cost of the project. million or more in Greater Minnesota. If the project is not in conformance with LE-35. Authority to Create Public established greenhouse gas emissions and Infrastructure Utilities vehicle miles traveled reduction targets, Issue: Successful economic development there must be a change in the scope or efforts and community stability are design of the project, sufficient impact dependent upon a city’s ability to make mitigation on the statewide system and a infrastructure investments. Current revised assessment. If these conditions are infrastructure funding options available to not met, the project must be halted and cities are inadequate and unsustainable. disallowed from inclusion in the STIP. The Funding pressures have been exacerbated by requirements in this law will significantly levy limits, unallotment and reductions in increase costs on important future highway the local government aid and market value expansion and interchange projects in homestead credit programs. The existing Minnesota. Further, the law does not exempt special assessment law, Minn. Stat. ch. 429, projects that address safety needs or provide does not meet cities’ financing needs regional economic benefits. because of the special benefit requirement. Response: The League of Minnesota The law also requires a bond election unless Cities supports limiting greenhouse gas a minimum of 20 percent of such a project emissions and vehicle miles traveled can be specially assessed against affected assessments to the trunk highway system. properties due to the increase in fair market The requirements should continue to be value or “benefit” from the project. In administered and managed on a practice, however, proof of increased programmatic, or statewide, level versus property value to this degree of benefit can at the project level to best encourage rarely be proven from regular repair or investment in transit and other projects replacement of existing infrastructure such Council Packet Page Number 273 of 476 J3, Attachment 2 as streets or sidewalks. Alternatives to the LE-36. Adequate Funding for Minn. Stat. ch. 429 methods for financing Transportation infrastructure improvements are nearly Issue:A well-coordinated state nonexistent. transportation policy utilizing all modes of The Legislature has given cities the transportation in moving passengers and authority to operate utilities for waterworks, freight will enhance the state economic sanitary sewers, and storm sewers. The development of new and expanding business storm sewer authority, established in 1983, as well as foster additional tourism set the precedent for a workable process of opportunities. charging a use fee on a utility bill for a city Response:More resources must be service infrastructure that is of value to dedicated to all components of the state’s everyone in a city. Similar to the storm transportation system, and local units of sewer authority, a transportation or sidewalk government must have access to resources utility would use technical, well-founded and funding tools to meet growing needs. measurements and would equitably The League of Minnesota Cities supports: distribute the costs of local infrastructure services. a) Development of a comprehensive state transportation policy which provides Response: The Legislature should an environment where all modes of authorize cities to create, as a local transportation (motor, rail, air, water option, additional utilities such as a and pipeline) complement each other transportation or sidewalk utility, that in moving passengers and freight ensure funding for the maintenance of within the state. these public amenities. Additionally, whether established as a new chapter of b) Increased dedicated and sustainable law or added to the list of service charges state revenue source for non- in Minn. Stat. § 429.101, cities should be municipal state aid city streets. able to impose service charges against c) MVST distribution of 60 percent for property to ensure the maintenance and roads and bridges and 40 percent for safety of the right of way for all transit. Minnesotans without having to prove an increase in fair market value or having to d) A stable increase in the gas tax. determine whether those contributing to e) Trunk highway bonding provided the the utility fund are taxable or tax-exempt. Legislature implements reasonable Such authority would acknowledge the restrictions on the amount of debt effects of repeated levy limits and the service the state will incur, and general funding shift from the state to provided the Legislature appropriates local governments for building and funding to assist with local costs maintaining necessary infrastructure; the related to projects funded with trunk benefits to all taxpayers of a properly highway bonds. maintained public infrastructure; and, f) General obligation bonding for local the limitations of existing special roads and bridges, particularly for assessment authority. routes of regional significance. g) A sales tax increase dedicated to transportation. Council Packet Page Number 274 of 476 J3, Attachment 2 h) Funding to assist cities burdened by including metropolitan area sales and cost participation responsibilities use tax consistent with statutory imposed by improvement projects on funding priorities. the state’s principal arterial system LE-37. Turnbacks of County and and on the county state aid highway State Roads (CSAH) system. Issue: As road funding becomes i) Funding for transportation increasingly inadequate, more roads are components of economic development being “turned back” to cities from counties and redevelopment projects. and the state. j) Full funding for all components of Response:Turnbacks should not occur state highway projects, including without direct funding or transfer of a related stormwater management funding source. A process of negotiation systems, through state sources. and mediation should govern the timing, k) Establishment of a “Mainstreets funding, and condition of turned-back Fund” to assist cities with non- roads. Agreements should be negotiated transportation related components of and finalized before work on a project trunk highway projects such as utility requiring a turnback begins. City upgrades and improvements that taxpayers should receive the same contribute to economic development. treatment as township taxpayers. The requirement for a public hearing, l) Funding to build roads to standards standards about the conditions of that can accommodate the year-round turnbacks, and temporary maintenance transport of heavy loads. funding should also apply to county m) A sales tax exemption for materials turnbacks to cities. At a minimum, roads purchased for state and local road, that are proposed to be turned back to a bridge, sidewalk, trail and transit city government should be brought up to construction projects. the standards of the receiving n) Authority for cities to impose government, or that city should be development impact fees for compensated with a direct payment. transportation infrastructure. Direct funding should be provided for smaller cities that are not provided with o) Local funding options that would turnback financing through the allow cities to raise revenues for municipal state aid system. roads, bridges, sidewalks, trails, and transit. LE-38. MnDOT Rights-of-Way Maintenance p) Expanded use of alternative revenue sources such as MnPASS and other Issue: Maintenance of property, including tolling mechanisms for funding of government property and facilities, is maintenance and construction (where important to public safety and to the image feasibility studies indicate the of Minnesota cities. Cities are acutely aware program is appropriate). of the responsibility they have for enforcing property maintenance codes pertaining to q) Stable, predictable, and equitable grass mowing, noxious weed abatement, the distribution of funding to public placement of trash in yards and fence transit providers from motor vehicle maintenance. sales tax receipts and other sources, Council Packet Page Number 275 of 476 J3, Attachment 2 Minnesota has many miles of highways that ineligible for municipal state aid (MSA) run through cities. In recent years, the funds and must be paid for with property Minnesota Department of Transportation taxes and special assessments. Funding (MnDOT) has cut a substantial percentage challenges are compounded by city cost of its rights-of-way management staff. The participation requirements in state and cuts have resulted in reduced maintenance county highway projects, which divert along some corridors and on parcels resources from city-owned streets. acquired by MnDOT for transportation Recognizing the unique street funding needs purposes. Specifically, MnDOT has reduced in cities under 5,000 population, the 2015 the frequency of mowing, litter collection, legislature created the Small Cities noxious weed abatement, graffiti abatement Assistance Account (Minn. Stat. § 162.145). and repair of fences and guard rails. This Funds in the account are distributed through maintenance reduction has created public a formula to all cities under 5,000 safety concerns, undermined efforts to keep population for street maintenance and corridors attractive and presented challenges reconstruction. for communities working to promote Maintenance costs increase as road systems economic development. age, and no city--large or small—is Response: MnDOT must maintain state spending enough on roadway capital rights-of-way and parcels acquired by improvements to maintain a 50-year MnDOT for transportation purposes lifecycle. For every one dollar spent on located within city limits in a manner maintenance, a road authority--and therefore consistent with local ordinances taxpayers--save seven dollars in repairs. governing the upkeep of private property In 2023 the legislature created the when requested by the city. Alternatively, Transportation Advancement Account, MnDOT should reimburse Minnesota which will provide ongoing funding for the cities for the labor, supplies, and Small Cities Assistance Account and a new equipment necessary to maintain state Larger Cities Assistance Account. The rights-of-way to meet city standards revenues for this account have not yet been and/or minimize public safety hazards. collected, and there will be a delay of The Legislature must provide MnDOT approximately two years before meaningful with adequate funds to maintain state amounts of funding flow to these accounts. rights-of-way. Response: City streets are a separate but LE-39. Funding for Non-Municipal integral piece of the network of roads State Aid City Streets supporting movement of people and Issue: Minnesota has over 141,000 miles of goods. Cities need greater resources and roadway, and more than 22,500 miles—or flexible policies in order to meet growing 16 percent--are owned and maintained by demands for street improvements and Minnesota’s 855 cities. maintenance. The League of Minnesota Cities supports: The Minnesota Constitution limits eligibility for dedicated Highway User Tax a)Increased dedicated and sustainable Distribution Fund dollars to up to twenty state funding for non-MSA city streets percent of streets in cities with populations in large and small cities statewide; over 5,000 (155 of 855 cities). This means b)One-time funding for the Small Cities almost 85 percent of municipal streets are Assistance Account and the Larger Council Packet Page Number 276 of 476 J3, Attachment 2 Cities Assistance Account to bridge communities, the high cost of some projects, the gap between when the or tax base challenges that may limit the Transportation Advancement Account financial ability of some cities to pay. Cost was created and when funds will participation obligations can consume the reach the account; finances or debt capacity of communities for many years, especially because impacted c) enabling legislation that would allow cities largely have no say in the timing of cities to create street improvement projects. Furthermore, regional agencies are districts (similar to sidewalk mainly focused on facilitating travel and improvement districts already allowed commerce through--and not into--a local under Minn. Stat. § 435.44); and community. Trends in cost share policies, d) the creation of a new fund that would including ownership and long-term provide grants to cities burdened by maintenance of regional assets, continue to cost participation requirements add to the local burden every time a cost related to trunk highway and county share policy is updated or developed. state-aid projects. Response: The League of Minnesota Cities supports flexibility in, or exemption LE-40. City Cost Participation on from, cost participation policies when a State and County Roads city cannot meet cost share obligations Issue: When municipal state aid (MSA) due to unique circumstances. The League eligible cities (those with populations calls for special or additional funding for greater than5,000) face significant cost cities that have burdens of additional cost participation requirements related to state participation in projects involving state and county road projects, they commonly and county roads including the placement dedicate all or large portions of their of underground utilities due to those available MSA to meet cost participation projects obligations. When this happens, MSA funds LE-41. Authority to Allow are not available for use on the MSA system within the city, and local taxpayers must Amenities in MnDOT Rights-of- fully fund their own local roads and Way stormwater infrastructure. This has been Issue: Cities served by the state’s trunk exacerbated by significant new highway system frequently request features transportation infrastructure investments on on the highway right-of-way (ROW) that the trunk highway system authorized by the would improve the aesthetics of the highway state and federal governments. Additionally, or provide public amenities exceeding these state and county projects often present components the Minnesota Dept. of a once-in-a-lifetime opportunity to replace Transportation (MnDOT) may include. or rehabilitate utilities under regional Minn. Stat. §161.20, Subd. 2(b), gives the roadways, forcing cities to allocate resources MnDOT commissioner authority to make immediately and defer more urgent utility agreements with and cooperate with any infrastructure needs. governmental authority relating to trunk “The one-size fits all” cost participation highway construction and improvements; policies adopted by the state and counties however, Minn. Stat. §161.434 provides that are inequitable. They do not consider unique arrangements and agreements must be “for factors including a disproportionate number highway purposes”. of trunk highway lane miles in some Council Packet Page Number 277 of 476 J3, Attachment 2 These restrictions are problematic in cities future road improvements when approving where a downtown commercial area exists subdivision applications under Minn. Stat. § along a trunk highway. Some of these cities 462.358, subd. 2a. Given the existing desire amenities that would make authorization to impose fees on new commercial areas adjacent to trunk development of other infrastructure, such as highways more vibrant by allowing outdoor water, sanitary and storm sewer, and for dining, landscaping, decorative lighting or park purposes, it is reasonable to extend the other aesthetic improvements that do not concept to additional public infrastructure serve a highway purpose. Under current law, and facilities improvement also necessitated the city cannot approve amenities that by new development. encroach on the ROW. Response:The Legislature should Response: The League of Minnesota authorize local units of government to Cities supports authorizing cities, by impose infrastructure fees so new ordinance, to allow amenities that do not development pays its fair share of the off- serve highway purposes on trunk site, as well as the on-site, costs of public highway ROW within their jurisdictions. infrastructure and other public facilities The League also supports a requirement needed to adequately serve new that MnDOT develop and approve rules development. related to local ordinances. LE-43. Safe Routes to School LE-42. Authority to Implement Grants Management Infrastructure Fees Issue: The Safe Routes to School (SRTS) Issue: New development and the resulting Program provides funding support for growth create an increased demand for capital projects that promote and encourage public infrastructure and other public more students to walk or bicycle to school facilities. Severe constraints on local fiscal by making the school routes safer and more resources and dramatic forecasts for accessible. population growth have prompted cities to The following are some types of SRTS reconsider ways to pay for the inevitable infrastructure improvement grants that are costs associated with new development. provided by the state and offered through Traditional financing methods tend to the Minnesota Dept. of Transportation subsidize new development at the expense (MnDOT): of the existing community, discourage sound a) School site improvements: secure land-use planning, place inefficient bicycle parking facilities, traffic pressures on public facilities, and allow diversion improvements, and Americans under-utilization of existing infrastructure. with Disabilities Act (ADA) Consequently, local communities are improvements; exploring methods to ensure new b) Pedestrian facilities: new sidewalk, development pays its fair share of the true sidewalk gap closures, and related ADA costs of growth. improvements; In Harstad v. City of Woodbury, 916 c) Bicycle facilities: bicycle trails, N.W.2d 540 (Minn. 2018), the Minnesota separated multi-use or shared paths and Supreme Court recently clarified that state related ADA improvements; and statute does not provide the authority for cities to impose infrastructure fees to fund Council Packet Page Number 278 of 476 J3, Attachment 2 d) Traffic calming and crossing materials such as crude oil or nuclear improvements: curb extensions, speed products. humps, median refuges, enhanced b) The cost-share ratio related to roadway crosswalk markings, timed on/off crossing improvements is borne beacons, vehicle feedback signs disproportionately by the public sector. (dynamic speed signs), and other traffic Some estimates are 80 percent public to control devices. 20 percent private funding, regardless of Cities that receive municipal state aid the public entity’s ability to pay or (MSA)--those with populations above whether service is provided within the 5,000--may apply for and administer their community. Funding has not kept pace own SRTS grants. Non-MSA cities, even with the growing need for grade those with a city engineer on staff or separations. contract, must rely on the county to manage c) Legislation brought by the railroad any grant funds secured as well as to industry that would exempt railroads approve the project design. In some cities, from stormwater fees and assessments this requirement has led to project delays and shift the cost of complying with and disputes with counties over project stormwater management to other design and delivery. property owners. Response: The League of Minnesota d) The financial burden is faced by the Cities supports changes to MnDOT rules public sector to deal with mitigation to allow small cities that have the capacity improvements, a cost that the Surface to manage SRTS grants and projects to Transportation Board (STB) is not do so without county approval. requiring the private sector to pay. LE-44. Railroads e) At-grade crossings are blocked by both long moving trains and by trains that Issue: Railroads support economic activity, stop and remain stopped, sometimes for relieve pressure on roadway and bridge hours at a time. Blocked crossings delay infrastructure, and are the safest and most motorists and sometimes prevent energy efficient form of land based freight passage of emergency vehicles. transportation with greenhouse gas emissions that are a fraction of those for f) Difficulty and expense of imposing and trucks per ton mile of freight. Improvements enforcing whistleblowing ordinances. in Minnesota’s intermodal connections g) Unabated graffiti on railroad cars and between railroads and highways will reduce structures. freight transportation costs and help Minnesota businesses to be more h) Negative impacts of long- and short- competitive in national and world markets. term storage of rail cars on adjacent Conversely, railroads bring noise, properties. environmental impacts and safety challenges i) Pre-emption of local and state authority for neighboring cities. Below are some of to regulate railroad activities. the concerns cities have raised about railroads: Response: The League of Minnesota Cities opposes legislation and policies that a)Local public safety personnel are disproportionately shift authority, costs underequipped to respond to a potential and/or liability away from railroad derailment of a train carrying hazardous companies and onto other entities. The Council Packet Page Number 279 of 476 J3, Attachment 2 railroad industry, along with state and equitable solutions are reached when federal government, must: dealing with cities in Minnesota. Finally, the Minnesota Department of a) Adequately mitigate the negative Transportation’s (MnDOT’s) Office of impacts of railroads on communities; Freight and Passenger Rail should b) Allow local governments to enforce advocate on behalf of local communities the existing state and federal laws when conflicts between cities and railroad regarding the maximum time a entities arise. crossing may be blocked, and provide The League supports efforts to improve a mechanism to do so; intermodal connections between railroads c)Provide that timely notice to the and highways that do not have a impacted municipality is required in disparate impact on neighboring advance when a crossing or crossings communities. will be blocked by a stopped train; LE-45. Airport Planning and d) Require railroad companies to Funding provide a direct emergency response Issue: Airports are an essential component telephone number for city first of Minnesota’s transportation infrastructure. responders (police, fire, ambulance or Airports in the State of Minnesota serve other designated official) to call when important gateway to the region, the nation, an at-grade crossing is blocked, and and global markets. They serve as a primary the emergency services need this access point to our national airport system. crossing immediately unblocked to The Minneapolis St. Paul International continue their response; Airport (MSP) is critical to the movement of e) Allow local governments to enforce people and goods in and out of the state and whistle-free zones; even with all the planned improvements, it f) Impose and implement safety will eventually reach its capacity. The state standards that are in the best interest needs to implement a long-term strategy to of the public; make better use of other airport facilities and existing resources, reduce environmental g) Equip and train local public safety impacts, and achieve sound and sustainable officials to respond to potential economic growth throughout the state. catastrophic rail incidents; Aviation planning is a multi-layered effort h) Develop plans and identify funding with different levels of responsibilities. sources for more grade separations Currently, the State Airports System Plan is between railways and roadways; and put together by MnDOT with individual i) Fund and implement improvements to pieces developed by the Federal Aviation rail car storage facilities. Agency (FAA), Metropolitan Council (MC), and Metropolitan Airports Commission The public sector should not incur the (MAC). Aviation planning could be costs of improvements sought by the improved by a more unified statewide effort private sector, and cities should not be and coordination of the various aviation required to fund most of the cost of strategies through creation of an oversight crossing repairs or improvements. The body. federal government must exercise greater oversight of the STB to ensure fair and Council Packet Page Number 280 of 476 J3, Attachment 2 Minn. Stat. § 360.017 establishes the State increase employment, and lower product Airport Fund and authorizes the Minnesota and service costs for the benefit of the Department of Transportation (MnDOT) region. Office of Aeronautics to support cities, Finally, the Legislature should not counties and townships in the planning, authorize shifting of dedicated State development, maintenance and safe Airports Fund dollars to resolve general operation of public airports. In recent years, fund deficits in order to help balance the state’s budget, the Legislature transferred funds from the LE-46. Airport Safety Zones State Airport Fund to the General Fund. Issue:The field of aeronautics is regulated Although the borrowed funds were generally by Minn. Stat. ch. 360 and Chapter eventually repaid in full, efforts to preserve 8800 of the Minnesota Rules. Land use and improve the quality of airports safety zones and other public airport zoning throughout the state were hindered by the standards are established in Minnesota Rules unavailability of these revenues. Chapter 8800.2400, and are adopted by local The Minnesota Council of Airports airport zoning regulations that are submitted (MCOA), a membership organization for to the Minnesota Department of airport authorities and municipal entities Transportation (MnDOT) commissioner for who own airports, has led efforts to bring review and approval before adoption. stakeholders together. Most recently, the Airport safety zones are intended to restrict MCOA established the State Airports Fund land uses that may be hazardous to the Committee to work with the MnDOT Office operational safety of aircraft using the public of Aeronautics to discuss and advise future airport, and to protect the safety and management practices of the State Airport property of people on the ground in the area Fund. near the public airport. Response: The state needs a higher degree While some of the provisions included in the of integration of agencies (FAA, MnDOT, Minnesota Rules are required by the Federal MC, and MAC) and communities related Aviation Administration (FAA), other to aviation planning. The League of provisions go well beyond the federal Minnesota Cities supports the requirements. In some cases, the Minnesota collaborative efforts initiated by the Rules do not make sense for the community MCOA and supports the development of served by a public airport. a statewide airport advisory board, which Finally, in some cases airports cross could provide input, review and make multiple municipal jurisdictions. Neither recommendations to assist in development state law nor Minnesota Rules provide of a comprehensive statewide State powers for joint airport zoning boards. Airports System Plan. These boards could be useful in resolving The state needs to make planning and interjurisdictional issues involving airport investment decisions that will maximize planning, development, funding and zoning. the potential for airports to become Response: The League of Minnesota economic development centers that Cities supports efforts to protect the provide access to domestic and global safety and property of people living and marketplaces. Investments in airports working near public airports. The League allow existing businesses to remain and also recognizes that the Minnesota Rules grow, help attract new businesses, related to public airport zoning standards Council Packet Page Number 281 of 476 J3, Attachment 2 exceed the FAA’s and other states’ standards and, thus, needlessly infringe on local control. The League supports changes to Minnesota Rules pertaining to airport zoning standards that will more closely align Minnesota’s Rules with those in other states, while at the same time retaining local authority to be more restrictive than the Minnesota Rules. The League also supports changes to Minnesota Statutes and Minnesota Rules that would authorize powers for joint airport zoning boards so issues related to funding, staffing, and authority to enforce ordinances can be resolved at the local level. Council Packet Page Number 282 of 476 J3, Attachment 2 HUMAN RESOURCES & DATA PRACTICES b)Provide funding that pays the full HR-1. Personnel Mandates and costs of any mandated employment- Limits on Local Control related expenditures. Issue: Many state laws increase the cost of c)Avoid and eliminate expensive and providing city services to residents by time-consuming duplicative legal requiring city governments to provide protections and processes for public certain levels of compensation or benefits to employees, including those that public employees such as paid family and preclude promotional probationary medical leave, and the provision of an periods. expansion of earned sick and safe time, by specifying certain working conditions, or by d)Eliminate contradictory existing laws limiting city governments’ ability to regarding public employment. effectively manage their personnel e)Eliminate mandates for local resources. For instance, existing state laws government employers that are not limit governments’ ability to effectively imposed upon the state as an address incompetence or misconduct of city employer. employees by specifying certain procedures f)Use the collective bargaining process or standards of conduct that cities must established by state law, rather than follow. Additionally, state law limits the legal mandates, to determine benefits tools that cities can use to recruit and retain for employees covered by collective talent which creates challenges during times bargaining agreements. of low unemployment and a competitive labor market. Finally, several laws are HR-2. State Mandates on Employer potentially contradictory and force local Leave Policies governments to choose which one to follow. Issue: The 2023 legislature enacted two Response: Any new legislation and types of paid leave laws governing employer changes to existing legislation should meet leave policies:Earned Sick and Safe Time the following goals: (ESST) and Minnesota Paid Leave (MN a)Recognize the need for local decision- Paid Leave). These mandates at times making authority by local elected conflict not only with each other but also officials with regard to the terms and existing federal and state leave laws, making conditions of employment for local implementation challenging. For most cities, government employees (e.g. allow these mandates are in addition to existing local elected officials to determine generous sick leave policies local employee compensation, employee governments already offer to their recognition and to make employee employees as part of key attraction and benefit decisions, and allow greater retention strategies. Along with increasing flexibility in how cities may utilize the amount of required paid leave the state public funds for the recruitment and mandates also limit an employer’s ability to retention of employees in an ever monitor employees’ use of the paid leave. changing job market). This is particularly burdensome on cities as Council Packet Page Number 283 of 476 J3, Attachment 2 they need to depend on personnel to be officials, election judges, and paid appointed ready and available to provide core essential advisory, committee, or commission public services and respond to emergencies. members that are not elected officials or regular city employees. Earned Sick and Safe Time (ESST) law requires all employers provide employees With respect to represented workers, one hour of sick and safe time for every 30 benefits are negotiated in good faith based hours worked. This law required employees on the legal requirements present at the time to be eligible to accrue up to 48 hours in a of contract negotiation. Prior to ESST and year and 80 hours ongoing after the first MN Paid Leave, employers were able to year of employment. The law does not have leverage savings clauses to bring non- any exemptions for seasonal employees or compliant contract language into compliance unique positions that cities may have such as with the minimum threshold of new laws election judges and paid appointed, enacted. Recent changes to ESST and MN unelected advisory, committee, or Paid Leave, however, now require that some commission members or regular city benefits be granted to union employees in employees. For these positions, it is difficult addition to what the law requires. This leads for cities to apply the new law’s to: (1) uncertainty in union negotiations due requirements due to their unique and limited to changing laws; and (2) cities being employee-employer relationship. Since its required to provide greater benefits above initial passage, the Legislature has addressed and beyond what is obtained through the some of the challenges cities faced when collective bargaining process and/or what is applying the law’s requirements. However, legally required. the 2024 legislature also significantly Response: Any new legislation and expanded the application of ESST to other changes to existing legislation should meet forms of paid leave provided by employers the following goals: for absences related to an employee’s a) With respect to ESST, exempt unique personal illness or injury. positions in which there is not a MN Paid Leave takes effect January 1, formal employer-employee 2026, and provides an additional protected relationship such as paid appointed leave of absence with a combined maximum advisory, committee, or commission of 20 weeks in a benefit year for medical members, election judges, and other and/or family leave. The 2023 legislature non-traditional positions. established a cost sharing provision b) With respect to MN Paid Leave, requiring employers pay at least 50 percent exempt unique positions where there of the total premium, with the option to pay is not a formal employer-employee up to 100% of the total premium. The relationship, such as elected officials, remainder, up to 50 percent of the total election judges, paid-on-call premium, remains the employee’s firefighters, and other non-traditional responsibility to be charged through payroll positions. deduction. The law has a limited exemption c) Minimize legal mandates to for seasonal employees working in incentivize employers to establish hospitality but lacks exemptions for unique and/or continue to provide more city positions where it is difficult to apply generous paid leave benefits to the law’s requirements due to their unique employees. and limited employee-employer relationship, such as paid on-call firefighters, elected Council Packet Page Number 284 of 476 J3, Attachment 2 d) Eliminate the requirement to a) Explore and document problems negotiate with collective bargaining individual local governments are units on the implementation of legal experiencing, and evaluate whether mandates. the problems are widespread and if e)Eliminate the expansion of mandated they can be resolved administratively; benefits to paid leave previously b) Evaluate the reporting process, and negotiated in good faith and/or make recommendations for adopted in personnel policies in excess improvement as needed; of what is legally required. c)Review the methodology for analyzing f) Provide funding that pays the full pay equity data; and costs of any mandated employment- related expenditures. d) Evaluate the process by which cities receive notification of reporting g) Avoid and eliminate expensive and requirements and compliance issues time-consuming duplicative legal and make recommendations for protections and processes for public improvement as needed. employees, including those that preclude promotional probationary HR-4. Public Employment Labor periods. Relations Act (PELRA) h) Eliminate contradictory existing laws Issue:The League of Minnesota Cities regarding public employment. supports the purpose of the Public HR-3. Pay Equity Compliance Employment Labor Relations Act (PELRA) to balance the rights and interests of public Issue: In 1984, the Legislature passed the employees, public employers, and the Local Government Pay Equity Act to general public. However, certain changes eliminate sex-based wage disparities in are necessary to assist public employers in public employment. The Act requires each implementing this law. For example, current local government to submit reports of its pay definitions of “public employee” are structure to the state’s Pay Equity confusing and difficult to manage. In Compliance Coordinator within the addition, the arbitration process has Department of Management and Budget. produced decisions that are contrary to the The data is then subject to analysis to interests of the public, and the legal standard determine if there are inequities in the city’s for overturning arbitration decisions is very pay structure. Since its passage, the difficult to meet. Also, recent administrative rules implementing the Act interpretations of Minn. Stat. § 179A.25 have not substantively changed. (independent review of non-union employee Response: The League of Minnesota grievances) has created uncertainty and Cities supports the Local Government confusion in the longstanding judicial Pay Equity Act and seeks to partner with process used by courts to review city council the Legislature and the state’s Pay Equity administrative decisions, particularly Compliance Coordinator to update and employment termination decisions of non- improve the current system so that cities union employees. can more efficiently and effectively fulfill Additionally, the 2023 legislative session the mandated reporting requirements. resulted in changes to PELRA that diminish Local governments and the state should: essential employer rights to conduct operations and provide public services. The Council Packet Page Number 285 of 476 J3, Attachment 2 new law removed number of personnel as an c)Provide different options for accessing inherent managerial right and added staffing arbitrators and utilizing the ratios to the terms and conditions of arbitration process in order to employment subject to collective “address inequities” between union bargaining. It is unclear how this new and management representatives. condition would be bargained. Additionally, d) Allow public employers to bypass limiting public employers from determining mandatory arbitration required under the number of personnel hired for various PELRA and directly access the positions could hinder the ability to respond district court or Office of expeditiously in a crisis, limits their ability Administrative Hearings system in to be responsive to taxpayers, and subjects situations where an employee is being them to risk if they are unable to meet terminated for gross misconduct (e.g., bargained terms due to external challenges excessive use of force, sexual such as a competitive labor market. harassment, sexual abuse, theft or a Consistent with these themes, the 2024 felony conviction) that is related to the legislative session resulted in an expansion employee’s position with the public of the number of instances that can give rise employer, including establishment of a to an unfair labor practice charge. standard that defers to the public Specifically, it is now an unfair labor employer’s decision on termination if practice for a public employer to: 1) refuse it has met a standard of to reassign a position after the Bureau of reasonableness. Mediation Services Commissioner has e) Repeal Minn. Stat. § 179A.25 or, in determined the position was not placed in lieu of repeal, exclude employment the correct bargaining unit; and 2) fail or terminations from Minn. Stat. refuse to provide information related to § 179A.25; require a 60-day contract enforcement or negotiations upon timeframe for filing a petition for receipt of a request for this information from review of a grievance under Minn. the exclusive representative, absent mutual Stat. § 179A.25; and clarify that agreement, within 30 days for contract decisions of Bureau of Mediation enforcement information or 60 days for Services (BMS) under this section are contract negotiation information. non-binding and merely advisory. Response: Minn. Stat. ch. 179A should be f) The League opposes legislation that modified to: would propose employer payment of a) Remove the existing service limit of 14 grievance arbitration fees when a hours per week or 35% of the normal settlement is offered to a grievant and work week for part-time employees, declined. and replace it with a definition in g) League opposes legislation that which part time employees are diminish or restrict inherent excluded if they work an annual managerial rights of public employers. average of 20 hours or less per week. HR-5. Implications of Janus v. b) Exclude temporary or seasonal AFSCME employees, as well as unpaid volunteers, from the PELRA Issue: Historically, both members and non- definition of public employee in Minn. members of public sector unions could opt Stat. ch. 179A. out of paying the portion of dues that Council Packet Page Number 286 of 476 J3, Attachment 2 explicitly go to the union’s political in the wake of the recent Supreme Court activities. But, until recently, non-members ruling. were still required to pay what was called a Additionally, as public sector unions are “fair share” fee, allegedly because even non- examining methods to compensate for fair members receive the benefits of union share revenue that may now be lost, laws representation. Union dues are deducted have been proposed in states outside of from employee paychecks by employers Minnesota, which preempt the bargaining based on notification of membership process and impose new requirements on provided by labor unions. public employers. Some of the proposed Overruling decades of precedent, in June requirements are designed to help unions 2018, the U.S. Supreme Court ruled it is market their services to their members or to unconstitutional for public employees who require the public employers to pay the costs object to belonging to a union to be required of collective bargaining. to pay a fair share fee. (Janus v. AFSCME). Response:To ensure that both public Specifically, the Supreme Court held that employers and public employees laws compelling fair share dues from successfully navigate the current unwilling members violated the First unknowns following the Janus decision, Amendment by requiring these employees the League of Minnesota Cities urges to, in effect, pay for speech with which they BMS to provide and disseminate do not agree, and that affirmative, voluntary information to employees about union consent is required for dues deduction. membership across the state. The League Given the degree of uncertainty about the also urges the Legislature to act to protect implications of the ruling, public employees public employers against: are seeking information about their a) ULP charges when providing factual constitutional rights regarding labor union information to employees about union membership and associated dues. The membership; Minnesota Public Employment Labor Relations Act defines unfair labor practices b) ULP charges when requiring unions (“ULPs”) to include dominating or to provide original documentation of interfering with the formation, existence, or voluntary consent to dues deduction; administration of union membership. To and avoid a potential allegation that they have c) being forced to pay the direct cost of engaged in unfair labor practices, if employee representation by unions. employees seek information about union membership from their employers, HR-6. Essential Employees employers often refer their employees to Issue:Cities must balance the health, union representatives for additional welfare, and safety of the public with the information. The Minnesota Bureau of costs to taxpayers. Essential employee status Mediation Services (BMS) is the state removes the right to strike but gives the right agency charged with providing technical to mandatory binding arbitration. This status training and information on collective can result in arbitration awards that exceed bargaining for the public sector in the city’s budget or conflict with the city’s Minnesota. BMS would be an ideal resource compensation policy. for employees to find critical information about labor union membership, particularly Response:The Legislature should carefully examine requests from interest Council Packet Page Number 287 of 476 J3, Attachment 2 groups seeking essential employee status Response:Cities should not be forced to under Minn. Stat. ch. 179A (PELRA). pay benefits as base wage employers if the The League of Minnesota Cities opposes employee is determined to have legislation that mandates arbitration that committed gross misconduct during their increases costs and removes local employment with the city, even if the decision-making authority. employee voluntarily resigns. In addition, cities (as reimbursement employers) The League supports a mandate for Final should be allowed to enter into Offer/Total Package arbitration for all agreements with employees to not contest essential groups on a trial basis. The a determination of eligibility for League also supports a change in the unemployment benefits where the PELRA law that would strengthen employer and employee mutually agree to existing language (Minn. Stat. § 179A.16, this as a term of separation. subd. 7) requiring arbitrators to consider a public employer’s obligation to HR-8. Public Employee Defined efficiently manage their operations. Benefit Pension Plans Specifically, the statute should be Issue: Public pensions are an important amended to require arbitrators to take employee benefit that can help cities attract into consideration any wage adjustments and retain employees. However, unlike already given to or negotiated with other salary and other employee benefits that are groups – both union and non-union for established by each city, the pension the same employer in the same contract contribution rates and benefit levels are set year. by the state legislature. Benefit levels and HR-7. Re-employment Benefits plan costs must be carefully balanced to assure long-term sustainability of the Issue: Cities are often required to help pay pension plans and affordability to employers the benefits of workers who have initially and employees. been denied benefits through their employment with the city but later been re- In 2018, the Legislature enacted a major employed by a different employer; pension reform package to improve the sometimes this occurs when the employee long-term financial status of the PERA has been found to have committee gross pension plans. The legislation included misconduct while employed by the city. benefit reductions for active employees, contribution increases for Police and Fire Additionally, employers are prohibited from Plan employers and active employees and a entering into agreements with employees not modified cost of living adjustment (COLA) to contest or appeal payment of for retirees. unemployment benefits as part of a settlement agreement at termination of The 2023 omnibus Pensions bill employment. Because most cities are appropriated a total of $485.9 million in “reimbursement employers,” the majority of one-time state aid, allocated to the plans the cost of benefits paid to the employee are roughly on the basis of accrued liabilities, at the direct expense of the city. The ability and provided a one-time COLA increase. to enter into such an agreement can greatly Due to the one-time nature of budget target aid a city in reaching a settlement at a for the Pensions bill, no significant relatively low-cost to the city’s taxpayers. structural changes were made to PERA plans. Council Packet Page Number 288 of 476 J3, Attachment 2 The bill also reduced the actuarial would make PERA consistent with the assumption for investment return from 7.5% other major Minnesota pension plans. to 7%, effective June 30, 2023, and reduced c) A comprehensive review of exclusions the number of years of service required for from pension participation with the full vesting from five years to three years for goal of simplifying current eligibility all members of the PERA General Plan. guidelines. Such a review should also Response: The League of Minnesota include a possible revision of current Cities supports the sustainability penalties for employers that fail to modifications enacted by the legislature in report covered employees to ensure 2018 and continues to oppose any benefit that these penalties are not overly improvements for retirees or active harsh and punitive. employees until the financial health of the d) The transfer of all school district General Plan and the Police andFire Plan employees out of the PERA General is restored. Plan and into another fund that is For the PERA General Plan, any further more appropriate for school district increases in employer contributions employees as long as the change would should only be considered by the not negatively impact the financial Legislature after other measures have health of the pension funds nor result been considered, including:in employer contribution increases. The continued authority of cities to a) An increase in employee contributions effectively use retirees in so that employees and employers truly reemployment situations. The League bear the same responsibility to bring supports policy changes which would the pension plans to full funding; or include an increase in the earnings b) The removal of the cap on PERA threshold for such retirees and Pension Aid payments under Minn. supports keeping the required break Stat. § 273.1385 and the extension of in service at 30 days and opposes the aid program after FY2020, so the suspending payments to retirees. state equalizes the contributions of For PERA Police and Fire, any further employees and employers. increases in employer contributions The League also supports: should only be considered by the Legislature after other measures have a) Fully offsetting the additional been considered, including: unfunded liability of any proposed employee contribution reduction with a) An initial increase in the employee direct state aid to the plan. contribution of at least 1.0% of salary with subsequent increases split evenly b) Modifications to the PERA eligibility between employee and employer so guidelines to take into account that the contribution ratio moves temporary, seasonal, unique part- toward a more equitable split between time, and student employment employees and employers; or situations in cities, particularly in recreational operations. These b) An additional state general fund modifications should include the use appropriation to fund the deficiency of pro-rated service credit, which in police and fire pension aid payments so that the state equalizes Council Packet Page Number 289 of 476 J3, Attachment 2 the contributions of employers and For PERA Corrections Plan the League employees. supports: c) Increasing the minimum and full a) Maintaining the current definition of retirement ages for new PERA Police covered employees for the PERA and Fire plan participants. corrections plan, which does not include dispatchers due to the d) Implementing a contribution-based substantial differences between the benefit formula that would align job responsibilities of dispatchers and benefits payable with contributions the existing corrections positions made on behalf of an employee in covered by this plan. order to address high-five spiking issues. b) Fully offsetting the additional unfunded liability of any proposed The League also supports: employee contribution reduction with a) Maintaining the current 60/40 direct state aid to the plan. contribution split between employers For all PERA defined benefit plans the and employees. League supports: b) Fully offsetting the additional a) Adjustments to the benefits for active unfunded liability of any proposed members and retirees to reduce the employee contribution reduction with cost of the plans. direct state aid to the plan. b) Requiring special legislation for c) Maintaining the statutory changes individual employee pension benefit made to Minn. Stat. § 353.01 in 2007 increases be initiated or approved by that separate injuries resulting from the city council of the impacted city “hazardous duties” from injuries unless the cost of the benefit increase resulting from “non-hazardous is fully covered by the individual or duties” for purposes of police and fire the legislation addresses a clerical or disability retirement benefits. administrative error. d) A thorough study by PERA of the c) Requiring PERA to collect and current effects of overtime consider all employer-provided accumulation and outside employment information, including independent compensation on individual pension medical examinations and other benefits and the overall funding of the relevant personnel data and to plan. The study should also include broaden the basis for appealing recommendations on whether the disability determination decisions. overtime or outside employment should be factored into or excluded HR-9. Deferred Compensation from high five average wage Issue: Cities and other local units of calculations. government have been offering employees e) Allowing cities, including cities with the option to invest in deferred combination (full-time and paid-on compensation programs under 457(b) of the call staff) fire departments, to work federal Internal Revenue Code. Minn. Stat.§ with their fire relief associations to 356.24, subd. 3 imposes requirements for determine the best application of fire the plan administrator or vendor of a state aid. deferred compensation plan to: (1) provide Council Packet Page Number 290 of 476 J3, Attachment 2 the fee disclosure document to the plan’s law was enacted in 1997, it contained a participants, and (2) file the fee disclosure provision requiring the Department of document with the executive director of the Public Safety (DPS) to reimburse employers LCPR (Legislative Commission on Pensions for the full amount of administering this and Retirement) within 30 days of the end of benefit. each fiscal year of the plan. If a 457(b) plan By 2002, the fund created to provide this administrator or vendor fails to comply with benefit became deficient. Instead of the reporting requirements, the plan would increasing the fund, the 2003 Legislature potentially be an unlawful recipient of amended the law to pro-rate reimbursements public funds that are made by a city on to cities based on the amount available and behalf of an employee. the number of eligible applicants. The 2003 These new requirements are ambiguous and law change triggered a significant and confusing. For example, it is unclear unanticipated cost to cities and the cost has whether the prohibition on contributing increased every year for cities. Even if the “public funds” to a 457(b) plan includes health insurance benefit was discontinued situations where cities allow unused leave or entirely, the costs for existing recipients will unused health insurance contributions to be substantially increase well into the future converted to a monetary contribution. due to the growing cost of health insurance. The law should also specify that any In 2015, the Legislature expanded the health deferred compensation plan authorized by insurance benefit to include survivors of Internal Revenue Service regulations for volunteer firefighters who die in the line of local units of government are also duty. This change increased the number of authorized by the state. firefighters eligible for this benefit from 2,000 to 20,000. Response: The Minn. Stat. § 356.24, subd. 3 reporting requirements enacted in 2020 A League-supported bill that passed in 2023 for 457(b) deferred compensation plans reinstated full funding to reimburse are confusing, unclear and unnecessary employers for the cost of the continued and should be repealed. At minimum, the health insurance benefit; however, the one- requirements need to clearly define what time funding appropriated is expected to run constitutes public funds, and exempt out in approximately three years. public employers that do not contribute In 2025, League-supported amendments to public funds to a 457(b) plan from the Minn. Stat. § 299A.465 and § 353.032 reporting requirements.In addition, the passed, which resolve several ongoing law should be amended to include all IRS- challenges faced by cities. These changes approved deferred compensation plans included eliminating Minn. Stat. § 299A.465 that are authorized for local units of eligibility for those who have reached government. normal retirement age, limited the length of benefit continuation to 60 months from age HR-10. Continued Health 65, eliminated cash settlements of the Insurance for Duty Disabled Peace continued healthcare benefit, and Officers and Firefighters implemented communication requirements Issue: Minn. Stat. § 299A.465 requires for those receiving psychological treatment public employers to continue health under Minn. Stat. § 353.032, among others. insurance benefits for firefighters and peace officers injured in the line of duty. When the Council Packet Page Number 291 of 476 J3, Attachment 2 Response: The League of Minnesota this program, including funding for Cities supports the following legislative an actuarial consultant, and make actions to adequately fund the continued recommendations on changes to make health insurance mandate: it more financially feasible for Minnesota taxpayers. a) The state must fully fund programs that pay for health insurance for HR-11. Health Care Insurance police and fire employees injured in Programs the line of duty and dependents of Issue:Cities, like other employers in the police and fire employees killed in the state, are struggling with the rising costs of line of duty as originally required health care insurance for their employees. In under Minn. Stat. § 299A.465. addition, cities must cope with unfunded b) The legislature must avoid further mandates imposed on them by the expansion of eligibility for benefits Legislature such as the requirement to pool under Minn. Stat. § 299A.465 unless early retirees with active employees and the 1) full funding for benefits is provided requirement to bargain over changes in the by the state; and 2) beneficiaries can “aggregate value” of benefits, even when the be enrolled in a state health insurance city’s contribution has not changed. plan such as the Public Employees Response:The League of Minnesota Insurance Program (PEIP). Cities supports legislative efforts to c)Cumulative injuries that occur over control health insurance costs while time in the job should not qualify a maintaining quality health care services. police officer or firefighter for benefits However, cities have differing local needs under Minn. Stat. § 299A.465 since and circumstances and must retain the these types of cumulative injuries are flexibility to provide unique and creative not unique to the dangers of police solutions to the rising costs of health care officer and firefighter duties. insurance for their employees. The League: d) The legislature must clarify that the amount of an employer’s contribution a) Opposes legislative action that under Minn. Stat. § 299A.465 is no undermines local flexibility to manage greater than that given to active rising health care costs. employees in the same job class. b) Encourages the Legislature to e)The legislature must establish the carefully examine the costs and minimum criteria used to determine administrative impacts of any new, ability to work and set a percentage mandated insurance-related benefit threshold of disability for eligibility before imposing it upon city into this program. At a minimum, the employers. legislature must identify that a c) Supports changes to Minn. Stat. workers’ compensation determination § 471.6161, subd. 5, that would clarify as to whether the injury is work- the intent of the subdivision is to related is necessary in order to receive address changes in cost vs. changes in the benefits under Minn. Stat. § value (e.g., changes in provider 299A.465. networks, changes in benefit levels f) The legislature should establish a task required by an incumbent insurance force to study the long-term costs of carrier, changes required for Council Packet Page Number 292 of 476 J3, Attachment 2 compliance with state and federal compensation benefits for permanent and laws). total disabilities to be offset by disability benefits and pension benefits such as Social d) Supports changes to Minn. Stat. Security does not apply to retirement § 471.61 so that the requirement for benefits of the Public Employees Retirement cities to offer retiree coverage begins Association. In 2018, the Legislature on the date the retiree and/or modified Minn. Stat. § 176.011, subd. 15, dependents become eligible for federal which defines an occupational disease to add Medicare coverage. a rebuttable presumption to a diagnosis of e) Supports a clarification to Minn. Stat PTSD in certain public safety and related § 471.61 and to Minn. Stat. § 471.617 personnel. In 2020, the legislature initially to explicitly alleviate a city’s modified Minn. Stat. § 176.011, subd. 15 to responsibility to comply with group temporarily add a diagnosis of COVID-19 health benefits mandated by state law for peace officers, firefighters, paramedics when the city’s employees are covered and other defined employee classes as a under a union plan authorized by presumed occupational disease covered by federal statutes. the workers’ compensation system and this presumption was extended through January f) Supports statutory authorization for 13, 2023. The Minnesota Legislature also cities to collect up to a two percent regularly considered proposals to expand the administrative fee from retirees heart, lung and infectious disease receiving post-retirement health presumptions for public safety workers, and insurance benefits. to make the presumptions more conclusive g) Opposes any mandatory, centralized, and difficult to rebut. These types of benefit statewide health insurance option for expansions would further increase municipal active or retired city employees. workers’ compensation costs. h) Supports changing Minn. Stat. § Response:Legislative action is necessary 62A.21 to place reasonable limits on to address increasing workers’ health care continuation for former compensation costs, particularly rising spouses, similar to the Federal medical costs. The League of Minnesota COBRA law. Cities supports: HR-12. Workers’ Compensation a) Use of the Workers Compensation Advisory Council (WCAC) system to Issue: Rising medical costs are an consider proposals for changes to the increasingly serious problem for all workers’ compensation law and urges employers and insurers, and now represent the WCAC and the Legislature to over half of all loss costs within the approve medical cost containment workers’ compensation system. Medical reforms. costs will be a major driver of future workers’ compensation premium increases. b) Filling an existing WCAC employer In addition, the 2013 legislature added post- vacancy with a public-sector employer traumatic stress disorder (PTSD) as a representative or adding a designated compensable injury and in 2014, a public-sector employer representative Minnesota Supreme Court decision found to the WCAC. that provisions in the Workers’ c) Continuing the WCRA as the Compensation statute which allow workers mandatory workers’ compensation Council Packet Page Number 293 of 476 J3, Attachment 2 reinsurer for insurers and self- HR-13. Public Safety Duty insurers in Minnesota and supports Disability modifying state statutes to treat PTSD Issue: The League of Minnesota Cities and events involving several affected the communities it serves recognize the parties as one occurrence for retention inherent dangers faced by peace officers and purposes, thereby reducing the firefighters in the line of duty. The duties exposure of self-insured entities and performed by public safety employees the statewide insurance pools. Such a sometimes lead to physical and mental change would not have any effect on injuries. the benefit an individual employee would receive. In recent years, the number of public safety employees seeking duty disability d) Legislation that would disallow the determinations through the Public “stacking” of PERA retirement Employees Retirement Association (PERA) benefits and Workers Compensation and making workers’ compensation claims benefits due to the fact that some for line-of-duty injuries has accelerated. injured employees could receive total This is particularly true in the wake of a compensation from workers’ 2019 legislative change that made post- compensation and PERA retirement traumatic stress disorder (PTSD) a benefits that would be well above the presumptive condition for workers’ salary that they had been earning and compensation purposes. The League is the fact that the costs would ultimately concerned about these trends for the be passed on to cities and their following reasons: taxpayers. a) Every injury that leads to a PERA duty e) Extending the time limit on denials of disability retirement and/or workers’ liability for PTSD injuries from the compensation claim impacts the current 14 days in order to allow employee, the employee’s family and the diagnosis in accordance with the employee’s organization. requirements contained in the Diagnostic and Statistical Manual of b) The current system for processing and Mental Disorders (DSM) which guides addressing duty disability benefits can the diagnosis of PTSD under be incompatible with the goal of Minnesota Law (Minn. Stat. § restoring good health and returning 176.011, subd. 15). employees to work. The League opposes expansion of c) The fiscal impact of the increasing workers’ compensation and related health number of claims is unsustainable for insurance benefits because of the employers and, ultimately, taxpayers. potential for dramatically increasing costs d) Public safety agencies, particularly those to cities. Specifically, the League opposes that are very small and already expansion of the heart, lung and experiencing recruitment and retention infectious disease and PTSD challenges, will not remain viable if they presumptions, the creation of new continue to sustain significant personnel occupational disease presumptions as well losses. as any expansion of the law that would require payment of health insurance Given these concerns, in 2023 the League premiums. and other stakeholders helped secure Council Packet Page Number 294 of 476 J3, Attachment 2 passage of legislation that establishes mental f) Develop human resources guidance that injury prevention and treatment measures focus on: and provides $104M to pay for related costs. 1) Enhancing relationships between The bill also provided full reimbursement to public safety and human resources employers for the continued health managers to coordinate and insurance requirement for disabled streamline prevention of, and employees. The funding for the legislation is response to, duty disability injuries; one-time, and ongoing funding will be 2) Implementing best practices and needed to successfully address ongoing duty initiatives aimed at improving mental disability challenges. Following the 2023 health wellness and preventing and legislation implementation, the League and coping with PTSD; other stakeholders identified portions of the new law that needs to be clarified. 3) Providing early intervention/resources for public Additionally, the League and cities across safety employees who experience Minnesota have invested resources into work-related trauma; and mental and physical injury education, prevention and treatment. The League has 4) Providing paid time off or light duty also consulted with experts, including those for public safety employees who experienced with treating combat veterans, experience work-related trauma; who report that with successful treatment, g) Identifying resources (partnerships) to many injured public safety employees can help temporarily backfill positions so achieve optimal outcomes of restoring good employees may take needed time off health for themselves, their families and without losing their jobs or causing returning to work. The League is actively hardship for employers/agencies; and working with cities and other stakeholders, including public safety labor representatives, h) Developing best practices for return-to- to advance the following: duty following a mental injury. a)Normalizing conversations about mental Response: In order for the 2023 duty health within local government disability law to be effective, ongoing state organizations and their public safety funding is necessary. The League of departments; Minnesota Cities supports ongoing full state funding for: b) Promoting statewide peer support best practices and training programs; a) The Public Safety Officer Benefit Account that reimburses employers c) Identifying ways to promote cultural for providing continued health behaviors that enhance public safety insurance to police officers and physical and mental wellness; firefighters injured in the line of duty d) Educating stakeholders (employers, and dependents of those killed (Minn. employees and state and local leaders) Stat. § 299A.465); about PTSD signs, symptoms, treatment b) Reimbursement to local governments options and outcomes; for providing paid time off to public e) Gathering empirical evidence related to safety employees who experience treatability of mental injuries; work-related trauma and/or are seeking treatment for a mental injury; Council Packet Page Number 295 of 476 J3, Attachment 2 c)Initiatives and programs that provide DATWA prohibits an employer from peer support, emotional trauma terminating an employee for their first a training, early intervention and positive drug, alcohol or cannabis test mental health treatment; and without first providing the employee a chance for rehabilitation and treatment. This d) Emotional trauma training for pre- law applies to probationary employees as service and in-service public safety well as those who have completed their officers. probationary period. The Legislature should: Currently, breathalyzer use and saliva swabs a)require PERA to provide notice to an are permitted for alcohol testing under employee receiving treatment, and federal commercial driver testing laws their employer, when there is 30 days though Minnesota does not allow for the use remaining of the first 24 weeks of of breathalyzers in testing. Use of treatment, and require the employee breathalyzers for employee alcohol testing is to respond to PERA’s requirements a less invasive, less expensive method. In within established time frames; addition, federal commercial driver testing laws address a number of outcomes other b)define “seeking treatment” and clarify than a positive test result, including but not when an employer’s obligation to limited to tampering with a sample, continue salary and benefits begins providing a substitute sample, providing a and ends; and sample that is not human urine, providing a c)place a cap on the number of weeks an sample that is not capable of being tested, employer is obligated to continue an etc. employee’s salary and benefits during Finally, laws enacted during the 2023 and one treatment period. 2024 legislative sessions legalized adult-use d)clarify that salary continuation under cannabis in Minnesota and updated Minn. Stat. § 353.032 runs DATWA including, as an alternative to concurrently with other paid leave using services of a testing laboratory, to such as the Family and Medical Leave allow oral fluid testing for alcohol, drugs Act (FMLA). and cannabis or their metabolites for certain employees or job applicants. Currently, 14. Drugs, Alcohol, and urine testing for cannabis can show evidence Cannabis Testing in the Workplace of usage 30 or more days prior to testing, Issue: Employer testing of job applicants, while oral fluid testing can show evidence of employees and independent contractors is usage 24 or more hours prior to testing, but governed by Minn. Stat. § 181.950 – there is no test available to determine an 181.957, known as the Drug, and Alcohol employee’s current intoxication from Testing in the Workplace Act (DATWA). It cannabis. This creates challenges for applies to all employers with one or more employers when investigating workplace employees, including cities. DATWA has incidents in which an employee is suspected not been amended to reflect various and to be intoxicated by cannabis while working. significant changes in drug-testing Response:The League of Minnesota technology nor policy changes at the federal Cities supports the following changes to level. the DATWA: Council Packet Page Number 296 of 476 J3, Attachment 2 a)Updates to reflect new issues, such as Once a veteran has completed an initial adding new definitions as needed to probationary period upon hire, they cannot reflect current practices;be removed from their position or employment, except for incompetency or b)Clarification that a positive drug, misconduct shown after a properly noticed alcohol, or cannabis test during an hearing. Currently, a veteran can only be employee’s probationary does not placed on probation upon hire but not require the employer to provide an following a promotion. It is common employee who has not completed their practice to place employees on probation probationary period a chance for following employee promotion making this rehabilitation and treatment; and restriction inconsistent with current practice c)Permitting the use of breathalyzers as and procedure. acceptable technology for determining Termination hearings are held before the alcohol use. local civil service commission or before an d)The legislature should continue to arbitrator and Minn. Stat. § 197.46 allows a invest funds into research to develop veteran to choose a hearing before the local technology that can assist with civil service commission, or an arbitrator. determining cannabis intoxication in Members of civil service commissions are the workplace. chosen for their expertise and experience with employment law. Hiring an arbitrator HR-15. Veterans Preference for a hearing instead of utilizing an Issue: Cities have a long history of established civil service commission is recruiting and hiring veterans as they are a inefficient. natural fit in city government. Across the Response:The League of Minnesota state, cities are partners in working with and Cities recognizes the important ensuring veterans have a variety of contributions veterans have made and opportunities afforded to them given their supports giving veterans limited sacrifice and service. The purpose of the preference in employment. To strengthen Minnesota Veteran’s Preference Act (VPA) and improve the VPA, the legislature is to facilitate the transition of veterans from should: the military to civilian life and to help a)Allow cities to place veterans on compensate veterans for their sacrifices of probationary periods upon promotion health and time to the community, state and as they do with other employees; and nation. The VPA grants veterans limited preference over nonveterans in hiring and b)Restore the language in Minn. Stat. § promotion for most state and local 197.46 requiring a hearing to be held government employment to recognize the before a local civil service commission training and experience they received as a where one exists. result of serving in the military. It also HR-16. Military Leave provides local government employees who are veterans some protection against unfair Reimbursement demotions and dismissals. These preferences Issue: Minn. Stat. § 192.26 subd. 1, requires and protections are commonly referred to as local units of government to provide 15 days “veteran’s preference” and are codified in of compensation per year to employees who Minn. Stat. § 43A.11, 197.455, 197.46, are members of the military for military 197.48, and 197.481. leave. State laws give preference to hiring Council Packet Page Number 297 of 476 J3, Attachment 2 veterans for public sector jobs, and, veterans Data Practices are a natural fit to also serve as public safety DP-1. Data Practices Compliance personnel. As such, many public safety Costs personnel are often also members of the military and are required to conduct training Issue: The purpose of the Minnesota and military duties throughout the year. Government Data Practices Act (MGDPA) is to protect personal information from In addition to providing compensation for indiscriminate disclosure while balancing mandatory military leave, cities must also the right of the public to know what the ensure that these temporary vacancies are government is doing. The Act also attempts adequately filled by public safety personnel to balance these rights within the context of whose training and qualifications are unique effective government operation. The League to providing public safety. This can result in of Minnesota Cities supports the public added overtime costs and may impact public policy behind the MGDPA while safety service levels. acknowledging that compliance with the law Government employers honor and recognize imposes costs on local taxpayers. Smaller the importance of ensuring members of the cities struggle with limited staff and military are able to fulfill their duties and resources while larger cities struggle with participate in mandatory training, while also larger complex databases. The MGDPA aiming to ensure that public safety service in must balance the right of residents to access their community is efficient, seamless, and public data with the cost burden to cost-effective. In response to this issue, there municipalities of complying with certain have been recent legislative proposals to types of data requests. reimburse local units of government for In 2014, the Legislature imposed additional military leave paid to public safety security requirements on political personnel. subdivisions in an attempt to prevent Response: The League of Minnesota unauthorized individuals from accessing Cities supports state funding to ensure private data. Adequate security measures are that local units of government can important, but they make compliance with maintain quality and cost-effective public the MGDPA more difficult and costly. safety services in their communities and Although the Legislature has made for their taxpayers while also offering full compliance with the MGDPA a priority, support for employees who are members funding for the Data Practices Office of the of the military. Such state funding could Department of Administration, the include reimbursement of costs incurred department charged with overseeing the to local units of government related to MGDPA, does not reflect the increased need compensating personnel on military leave for local government assistance. as well as reimbursement for costs related Cities continue to receive repetitive, overly to ensuring these temporary vacancies are broad and far-reaching data requests that adequately filled. require significant staff time to locate government records, redact private data or data unrelated to the request, and assemble documents to be provided in compliance with legal requirements to provide access to public government data. Cities are Council Packet Page Number 298 of 476 J3, Attachment 2 experiencing significant increases in wide-Response: As the cost of complying with ranging data requests, often utilizing specific the MGDPA increases, the League word searches through multiple databases. supports: “Word search” requests typically result in a a)Providing additional state funding to voluminous quantity of data that must be assist political subdivisions with reviewed and redacted, with significant staff meeting the increasing complexity of cost. Because word searches retrieve even managing government data. incidental references to the searched term, b)Providing state funding for statewide the search results often contain a significant data practices training. volume of data that has little informational value. c)Allowing political subdivisions to charge for all staff time that is The MGDPA limits when a city may charge required to comply with wide-ranging for data requests and leaves little data requests regardless of whether opportunity to recoup the costs associated paper copies of the data are requested with processing a request. When copies of or the requestor makes their own copy data are requested, cities are limited in how of the data by taking a photo, bringing much they may charge: 25 cents per page for a copy device, etc. under 100 pages and, for over 100 pages, the actual cost of production based on the d)Allowing political subdivisions to number of physical copies provided. charge for the complete staff time and However, cities may not charge for the time actual costs when responding to data spent to sort or redact non-public data from requests, including searching, public data. Cities may not charge for the classifying, redacting, and compiling inspection of data, despite the time and the data, even when the requester resources that are spent compiling records inspects the data or gets copies of only for inspection. If the requestor does not a portion of the compiled data. request copies, the search costs cannot be e)Providing a mechanism that would recovered – even though the requestor permit cities to challenge whether a dictated the specifics of the search. data request is reasonable and made Furthermore, in some situations, as with in good faith. overly broad data requests related to “applicant” lists, staff time and costs are f)Creating and funding an significantly increased and not recoverable ombudsperson position in the Data for very limited public benefit. Practices Office to determine reasonableness and proportionality of Cities are limited to charging only 25-cents data practices requests. per page for copies of police motor vehicle incident reports, which does not cover the g)Providing funding and authority to city cost for copying, while the the Data Practices Office to engage in Commissioner of Public Safety is exempt the rulemaking process to establish from this restriction—thereby permitting the standards and procedures related to Department of Public Safety to continue to requests and responses to data charge $5 for incident reports that cities are practices requests that impose required to submit to the department. significant burdens on government entities. Council Packet Page Number 299 of 476 J3, Attachment 2 h) Amending the MGDPA to limit what public’s right to know the government is considered public applicant data to entity’s official activities. better balance the value of public data Response: As the cost of complying with with the cost related to data practices the records management laws increases, compliance. the League supports providing additional i) Allowing political subdivisions to state funding to assist political charge the same amount for copies of subdivisions with meeting the increasing motor vehicle incident reports issued complexity of managing government by local police and fire departments as records. the commissioner of public safety. The League of Minnesota Cities opposes: The League of Minnesota Cities opposes: a)Changing the current record a) Further increasing the maximum management requirements and exemplary damages that courts may statutory definitions. If changes are impose against government entities, needed, subject matter experts should including cities, found to have violated make recommendations through the the MGDPA; further increasing the records retention schedule process. maximum civil penalty that may be b)Imposition of a private cause of imposed when a court order is issued action under the Official Records Act. to compel a government entity to While the Act dictates the comply with MGDPA; or any government’s responsibility to make statutory change that would make it a and preserve records, it is the Data mandatory civil penalty to compel Practices Act that provides the right compliance under the MGDPA. to access data and access legal remedies. A private cause of action b) Repealing of the administrative under the Official Records Act would remedies provisions adopted by the open cities up to new liabilities, 2010 Legislature to address disputes necessitating the use of public funds regarding MGDPA compliance issues. to cover defense costs and damages for these claims, and would challenge DP-2. Records Retention official’s judgement and discretion. Compliance Costs Additionally, more judicial resources Issue: The Official Records Act requires would be required to resolve government entities to “make and preserve recordkeeping disputes. all records necessary to a full and accurate DP-3. Updating the Minnesota knowledge of their official activities.” In accordance, cities must adopt a records Government Data Practices Act retention schedule, and maintain and destroy Issue: The Minnesota Government Data official records according to this schedule. Practices Act (MGDPA) was first enacted in There are rigorous requirements for any 1979. Over 40 years later, times have changes to a city’s records retention changed dramatically. In particular, there schedule, including getting approval from has been exponential change in technology the statutorily-created Records Disposition and how information is shared. In 1979, Panel, which strikes an appropriate balance cities were largely maintaining data in paper between the government entity’s decision- form, computers had just become viable for making role in determining retention and home users, word processing had just disposition of official records with the Council Packet Page Number 300 of 476 J3, Attachment 2 become a reality, the first point-and-shoot, is classified as public and, if published autofocus camera came on the market, and online, becomes accessible to anyone. the internet was still about a decade on the Details such as an applicant’s education and horizon. employment history becomes public upon application, and the names of interview While the MGDPA was originally drafted to finalists become public before the interviews be future thinking by contemplating the occur. This exposure can deter qualified various forms data could be held – including candidates from applying, particularly those the concept of storage media – the who do not wish to alert their current legislators of the time could not have employers or risk having their personal imagined where technology would be today. information broadly distributed before they For example, the originally-drafted MGDPA have officially entered public service. made reference to photostatic, microphotographic, or microfilmed records. The MGDPA is increasingly being utilized Minn. Stat. § 13.03, subd. 1. The current law in ways not considered when it was still refers to these same mediums of data, implemented, such as for commercial use, despite few cities maintaining data in this personal benefit, or to circumvent legal manner. discovery processes. Cities have seen an increase in data requests from out-of-state Technology has exploded, and the type of entities, for-profit companies, and data collected by this new technology has researchers who seek to receive personal multiplied. In our current reality, the public benefit from public government data and government have been frustrated by compiled by cities at the cost of local how best to access government data. In taxpayers. This data often has no public Webster v. Hennepin County, 910 N.W. 2d value and has the potential for misuse. 420 (Minn. 2018), the County was asked to Additionally, cities have seen a rise in pre- conduct a computer-aided search of all its litigation discovery being conducted through email accounts over multiple years for 20 data practices requests. While this data is separate search terms related to biometrics discoverable through the legal discovery and facial recognition. The Minnesota process, pre-litigation data requests create Supreme Court found that the County failed additional burdens on cities, including the to establish procedures to ensure appropriate time to compile the data, communicating and prompt compliance with data requests with attorneys, and the cost of storing the but did not find that the County failed to data until litigation commences. keep its records in an arrangement and condition to make them easily accessible for There are also other advances in technology convenient use. The Court also did not that are not comprehensively addressed by address if a term search was a valid data the MGDPA. While the Legislature has practices request or if a request could be attempted to address technological unduly burdensome. The lack of direction advancements as they come, it has been in from the Court on these issues leaves a void. piecemeal ways. The way information is shared has evolved Response: The MGDPA should undergo a significantly with new technological comprehensive review periodically to advances. Personal information can be address technological advances and posted online and shared globally in an ensure conformity, and the Legislature instant. Under Minn. Stat. § 13.43, certain should update the law to address those data on public employees and job applicants changes. Because the MGDPA is a Council Packet Page Number 301 of 476 J3, Attachment 2 complicated area of law, the Legislature responding to data practices requests, should make changes based on the responsive data could be stored in multiple recommendations from subject matter data bases. Further, with the advent of experts from all levels of government and cloud-based information systems provided interested stakeholders, including by the private sector, newer databases are recommendations on what constitutes not typically designed to be controlled by reasonable data practices requestand cities to easily separate public from non- when a data practices request is unduly public data. burdensome. The Legislature should Response:The state of current consider the implications of finalist data technology requires cities to maintain becoming public before they enter public large databases that are designed to service, which deters qualified candidates provide secure data storage and from public service, and change the maintenance. Those databases are classification of interview finalists’ names. already burdensome and expensive for The Legislature should thoroughly cities to maintain but are not available in investigate data practices implications a form in which public and private data before passing laws and provide guidance can be easily separated. Requiring cities in statute for all changes that affect to design such databases to accommodate government data, including police extensive data requests under MGDPA is records, to ensure uniformity and clarity both financially and technologically in application. challenging to achieve. DP-4. Maintaining Government The Legislature should address the Data in Large Databases growing and costly impact on cities of providing access to specific public data Issue: The Minnesota Department of housed in large electronic databases. Administration Advisory Opinion 10-016 issued in June 2010 maintains that the DP-5. Sharing of Student Data with Minnesota Government Data Practices Act Local Law Enforcement in (MGDPA) requires cities to keep records Emergencies containing public government data so that they can be easily accessible and convenient Issue: Minn. Stat. § 13.32, subd. 3(l), to use, regardless of how they are kept. The defines education data as private data that application of this advisory opinion to large must not be disclosed except to the juvenile databases creates significant challenges. It justice system in cases where information can result in allegations of city about the behavior of a student who poses a noncompliance and can leave local risk of harm is reasonably necessary to government officials uncertain about how to protect the health or safety of the student or meet access requirements. These challenges other individuals. In addition, the federal arise especially when information Family Education Rights & Privacy Act technology is used to manage and organize (FERPA) bars schools from disclosing records and information that contain a mix information on student educational records of public, private, and nonpublic data within that contains personally identifiable the same data set. information without consent of a parent or eligible student, with only limited In addition, large databases today contain exceptions. different forms of data, including video, audio, images, and social media. In Council Packet Page Number 302 of 476 J3, Attachment 2 Minn. Stat. § 13.32 does not adequately of public data unless the law enforcement define who is responsible for making the agency determines that revealing the identity determination that an emergency or risk of will not threaten the victim or witness’s harm exists. As a result, school district personal safety or property. However, officials have interpreted the statute in victims and their families can be traumatized conjunction with the restrictions in FERPA by the events that caused their injuries, even to require that the determination be made when their safety or property is not solely by school officials. threatened. Publicly disclosing their identities and the locationwhere they are Local police officials are often frustrated in receiving medical care places a burden on their efforts to investigate allegations of families and victims who may be questioned criminal or other illegal activity when school by reporters, solicited by lawyers, and officials refuse, under Minn. Stat. § 13.32, contacted by other members of the subd. 3(l), and FERPA, to provide community. While there are legitimate information to follow up such complaints or public policy reasons to make this to assist local police in solving crimes that information public, the MGDPA provides no have already taken place. discretion for city officials and law School boards are responsible to have enforcement to temporarily withhold victim policies in place that require school officials data when releasing it is not in the best to report a student who possesses an interest of the victims. This not only makes unlawful firearm to law enforcement or the the initial period of recovery more difficult juvenile justice system. But schools are not for victims but erodes the trust between allowed to release the name of a student in victims and state and local government. dangerous weapon reports involving use or Response:The Legislature should amend possession of such weapons that are made to Minn. Stat. § 13.82 to allow law the Minnesota Department of Education. enforcement agencies to temporarily Response: Minn. Stat. § 13.32 should be withhold the disclosure of data that clarified to allow local law enforcement identifies victims and casualties and the agencies to work with school officials to medical facilities to which they are taken jointly make the determination that an if the agency reasonably determines that emergency or risk of harm exists in order access to the data would cause emotional to enable police enforcement actions to be harm to the individual or otherwise taken in a timely manner, and to aid in impede the individual’s recovery. The the investigation of possible crimes. Legislature should also amend Minn. Stat. 13.82 to clearly and permanently DP-6. Disclosure of Victim Data prohibit the disclosure of traffic accident Issue: Under the Minnesota Government victim identity, similar to the protections Data Practices Act (MGDPA), the name and for crime victims. address of a victim or casualty of an DP-7. Challenges to the Accuracy of accident or incident to which a law Data enforcement agency responds is public government data. In addition, the name and Issue: The Minnesota Government Data location of the health care facility to which Practices Act (MGDPA) allows the subject victims or casualties are taken is public of government data to challenge the government data. The MGDPA allows a accuracy or completeness of data maintained victim or witness to prevent the disclosure by the government entity. If the government Council Packet Page Number 303 of 476 J3, Attachment 2 entity denies the challenge, the Act allows exercised by an employee before or after the data subject to appeal that determination such a grievance is undertaken. This process through a contested case proceeding under can result in conflicting decisions and has the Administrative Procedures Act (APA). the potential to create a heavy burden on all levels of government and impose significant In the human resources context, a costs on taxpayers. performance evaluation is a tool used to document and evaluate employee job Response:In light of the Schwanke performance. Performance evaluations are decision, the Legislature should modify not discipline; however, some jurisdictions the data challenge provision of Minn. and some union contracts have appeal Stat. § 13.04, subd. 4, to balance the rights processes to challenge a performance of data subjects to challenge the accuracy evaluation. Performance evaluations are and completeness of data with the normally conducted once a year. administrative and financial burdens on local governments and taxpayers. The Minnesota Supreme Court has held that a public employee could use the MGDPA to DP-8. Law Enforcement challenge the accuracy of certain Technologies information contained in the employee’s Issue: To aid law enforcement in work, law performance evaluation. Schwanke v. Minn. enforcement agencies need the flexibility to Dept. of Admin., 851 N.W. 2d 591 (Minn. effectively use all available tools, including 2014). While the Court held that technology, in a manner that balances “dissatisfaction with a subjective judgment privacy interests of individuals, transparency or opinion cannot support a challenge under of their work, and costs related to these the \[MGDPA\],” a data subject can still technologies. The Legislature has balanced challenge data that supports the subjective these concerns in the recent License Plate judgment. There is currently no limitation Readers law and the Police-Worn Body on when a performance evaluation challenge Camera law. may be brought. Often there is no retention period for the underlying data because it is License Plate Readers (LPRs) are an rarely an official record. Furthermore, the important tool that assist law enforcement more time that passes, the less likely those agencies in locating wanted individuals, with the knowledge of a given performance recover stolen vehicles, and many other evaluation may be still employed by the city. types of investigations. Nevertheless, the use It is to everyone’s benefit to have the of this technology raises legitimate privacy challenge to accuracy of data conducted as concerns. In 2015, the Legislature passed soon as possible. compromise legislation regulating the use of LPRs, the classification of LPR data, and the Under Schwanke, an invalid challenge to a retention period for LPR data that struck a subjective opinion can no longer be fair balance between the need for robust law dismissed by the Department of enforcement and individual privacy rights. Administration; it can only be dismissed in a contested-case proceeding. In even a Police-worn body cameras (or portable frivolous challenge the data subject will recording systems) provide invaluable have the right to submit evidence and call evidence when investigating crimes and witnesses at taxpayer expense. prosecuting criminals and strengthened trust of residents in law enforcement by This right of review is in addition to any increasing the accountability between peace union grievance process and can be Council Packet Page Number 304 of 476 J3, Attachment 2 officers and the public. Different than other strengthen trust of residents in law kinds of data, body camera data use involves enforcement by increasing the accountability the unique complexities of the sensitive between peace officers and the public. nature in its use in private homes as well as Different than other kinds of data, body- the sheer volume of data in daily use. In camera data use involves the unique 2016, the Legislature contemplated all of complexities of the sensitive nature in its use these issues and passed compromise in private homes as well as the sheer volume legislation regulating use of body cameras, of data in daily use. In 2016, the Legislature classification of body camera data, retention contemplated all of these issues and passed period for body camera data, release of body compromise legislation regulating use of camera data, audit requirements, and written body cameras, classification of body camera policy requirements. data, retention period for body camera data, release of body camera data, audit The Legislature has recently engaged in requirements, and written policy conversation about other types of law requirements. enforcement technology, such as drones, facial recognition, etc. The longer body-camera technology is used in Minnesota, the more nuanced questions Response: Cities and/or law enforcement have become. For example, the Legislature agencies should be allowed to decide recently has engaged in more discussion whether to utilize technology and be given about how law enforcement uses body- the flexibility to decide how they are used camera technology, when the data should be in the field. released, etc. Cities have found redaction for a)The League supports the continued private data and non-public data to be more use of License Plate Readers under the extensive than anticipated, particularly as terms of the 2015 legislation and data practices requests for body-camera data opposes any further restrictions on have grown larger in scope and breadth and their use or any reduction in the the number of first responders, such as city current 60-day retention period. and county firefighters, paramedics, and mental health professionals, responding to b)With emerging law enforcement calls has increased as well. technologies, the League supports a balanced approach to the values of Response: The League supports the privacy for individuals, transparency continued use of police-worn body of the work of law enforcement, and cameras under the terms of the 2016 discretion to determine what legislation. However, if the Legislature technologies will be used, such as makes changes to the body-worn camera effective use of these technologies, law, the League encourages the functional accuracy, emerging law Legislature to update the law by enforcement needs, communities adequately balancing the competing served, and costs and benefits of values of transparency of police work, technology. privacy interests of data subjects, and integrity of police investigations. DP-9. Body-Worn Cameras DP-10. Open Meeting Law Issue: Police-worn body cameras (or portable recording systems) provide Issue: The purpose of the Open Meeting invaluable evidence when investigating Law generally requires that all meetings of crimes and prosecuting criminals and public bodies must be open to the public. Council Packet Page Number 305 of 476 J3, Attachment 2 This presumption of openness serves three the governing body and some must be vital purposes: to prohibit actions from closed. Two challenges exist with current being taken at secret meetings, to assure the law. public’s right to be fully informed, and to The first concern is the hiring process for afford the public an opportunity to present management level positions. While existing views to the public body. law allows a governing body to close a Technology has outpaced the Open Meeting meeting to evaluate the performance of an Law, but city response to COVID-19 individual subject to its authority, the statute illustrated that remote participation for doesn’t grant the same level of privacy for meetings can allow for meaningful the city council and prospective applicants. interaction with the city and the public. In The statute should allow a governing body 2025, the legislature removed the “open and to close a meeting to interview applicants accessible” requirement for remote meeting for employment if there is a quorum present; participants and removed statutory limits on and, to allow a governing body to close a the number of meetings an individual may meeting to discuss the terms of an attend remotely. Cities support this employment agreement to offer to a additional flexibility to utilize technology candidate to whom a job offer has been that keeps pace with the virtual world. extended. This would be consistent with the existing authority for the governing body to Response: The League of Minnesota close a meeting to discuss labor negotiations Cities supports the flexibility for remote strategy. Allowing a closed meeting so that a meeting attendance and supports city council can discuss the results of an discretion to set local policies and limits interview process for a management-level on remote meeting participation. position will allow council members to The League opposes any change to the express opinions or ask questions they may Open Meeting Law that would expand have concerns about discussing in a public the award of attorney fees to meeting and preserves the integrity of the unintentional violations. interview process of subsequent candidates. The second concern with existing law is the DP-11. Needed Closed Meeting inability for public bodies to conduct Exceptions to the Open Meeting strategic negotiations. Current law allows Law the public body to close a meeting to discuss Issue: The League of Minnesota Cities the purchase or sale of property and labor supports the Open Meeting Law and negotiations but does not allow the public recognizes the important role it plays in body to close a meeting to discuss maintaining the public trust and the negotiation strategies for an agreement with accountability of elected officials. The Open private parties, non-profit organizations, Meeting Law must, however, balance the and/or public entities. The ability for public need for public information and the need to bodies to close meetings in these situations protect privacy rights and certain negotiation provides public bodies the opportunity to strategies to protect the use of public form strategies in the best financial interest resources. Currently, there are seven of the community, which is consistent with exceptions to the open meeting laws that the importance of negotiation regarding authorize the closure of meeting to the purchase or sale of property and labor public. Under these exceptions, some contracts. Further, the City may create meetings may be closed at the discretion of documents outlining the negotiation Council Packet Page Number 306 of 476 J3, Attachment 2 strategy, which should be protected for the previously required a petition and court same reasons as for closing the meeting. order to expunge. The process requires the Such data should be protected during BCA to identify applicable records, submit negotiations of the contract until a contract eligible records to the Courts for a 60-day for the goods or services is signed or review and objections, and finally expunge abandoned, which is similar to the the records. Once the records are expunged protection allowed for request for proposals in the BCA Criminal History System (CHS), under Minn. Stat. § 13.591. a list is sent to police departments for sealing of the records. Response: The Legislature should amend the Open Meeting Law:Since 2023, the BCA and Minnesota Judicial Branch have identified qualifying a)To allow a governing body or a offenses and dispositions under the act and committee created by a governing have designed computer programing to body to close a meeting to interview identify individual records for expungement. candidates for management-level The Attorney General’s Office started positions such as city manager, traveling across the state in 2024 on a administrator, clerk-treasurer, city “Clean Slate Tour” to help individuals seal attorney, superintendent, or their records. In June 2025, city police department head, and to close a departments began receiving reports of meeting to evaluate and discuss the records expunged from the BCA CHS to be candidates, and discuss salary and sealed in their local systems. benefit negotiations. The intent of the Act is to provide a “fresh b)To allow a governing body to close a start” for individuals, specifically access to meeting to discuss negotiation employment and housing opportunities, strategies for proposed contracts through automatic sealing of certain records. and/or agreements with private The Act fails to balance these interests with parties, non-profit organizations, law enforcement agencies’ government data and/or public entities and keep that practices obligations, victims’ rights to data, data private or nonpublic until the and data subject’s rights under the contract is signed by the governing Minnesota Government Data Practices Act body or a decision is made to abandon once the records are sealed. a contract for those goods or services. Response: Statutory amendments are Such closed meetings should follow the necessary to ensure consistent responses same or similar procedures for to requests for government data. conducting closed meetings currently required under the Open Meeting Law. The egislature should review Minn. Stat. 609A.015 (the Clean Slate Act) DP-12 Expunged records and the and Minn. Ch. 13 (Data Practices Act) Data Practices Act and make amendments to clarify how Issue: In 2023, the Clean Slate Act (the the two acts interplay. “Act”) was adopted and went into effect on Minn. Stat. 13.83 subdivisions 2, 3, January 1, 2025. The Act requires the and 6 classifies public government Minnesota Bureau of Criminal data retained by law enforcement Apprehension to “automatically” expunge agencies but does not address (seal) certain criminal history records that expunged records data. Minn. Stat. Council Packet Page Number 307 of 476 J3, Attachment 2 13.82 subdivisions 2, 3, & 6 and Minn. Programs (EAPs) which provide any form of Stat. 609A.015 should be amended to medical care, including short term address the interplay between the two counseling for drug and alcohol addiction. statutes. Additional clarification is The application of COBRA to these also required on whether the records programs results in unlikely and impractical are protected or if it’s the data on the outcomes and reduces the likelihood that person that is protected. employers will make them available. Final Theegislature should amend Minn.regulations issued in 2014 exempt EAPs that Stat. 13.03 subd. 3(f) and Minn. Stat.do not provide “significant benefits in the 609A.015 to clarify how law nature of medical care,” including EAPs that enforcement agencies should respond provide short term drug and alcohol to requests for data that has been counseling, from requirements of the Patient expunged.Protection and Affordable Care Act (ACA). Minn. Stat. 13.03 subd. 3(f) requires A similar exemption from COBRA would responsible authorities to cite a increase their adoption by employers and statutory reason for denying broaden their availability in the workplace production of data. However, the Response: Congress should clarify that Clean Slate Act prohibits disclosure of EAPs which do not provide significant the existence of expunged record data, benefits in the nature of medical care are meaning a city cannot cite to Minn. not subject to COBRA. Stat. 609A.015 as a reason for denial. Further, the statutes don’t address FED-2. Flexible Spending Accounts whether agencies can disclose Issue:Health care costs are rising expunged records data to the data dramatically, and employees and employers subject. Local law enforcement need financial relief. Flexible spending agencies require clarification on how accounts provide some relief, but the current to deny the production of expunged “use it or lose it” provision for medical data without disclosing the data’s spending discourages employees from existence and how to respond to participating in this program. Though the requests from data subjects. IRS permits carryovers of up to $500, The BCA should provide assistance to employers that offer this option may not local law enforcement agencies with offer the 2 ½ month grace period after the processing these records and solicit end of the plan year to incur eligible feedback on process improvements. expenses. The Consolidated Appropriations Act (CAA) provided temporary relief, Federal Employment Law allowing employers to permit employees to FED-1. Consolidated Omnibus carry over all or some of their unused health Budget Reconciliation Act and/or dependent care FSA funds from a plan year ending in 2020 or 2021. (COBRA) In 2025, Congress increased the limit on Issue: The federal Consolidated Omnibus dependent care accounts to $7,500 in 2026. Budget Reconciliation Act (COBRA) law, That’s welcome news, and the first increase which requires employers to offer continued in 40 years, but a study by Child Care health and dental insurance group benefits Aware of America found that the national after an employee terminates, has been average cost of childcare for 2024 was interpreted to apply to Employee Assistance $13,128. Had the original $5,000 limit on Council Packet Page Number 308 of 476 J3, Attachment 2 dependent care been indexed using the same amended, with a further amendment in 2015, methodology applicable to health flexible to include limited exceptions to this general spending accounts, the limit would have rule but not all city plans meet the been $13,700 in 2024 – a close match to the requirements of these limited exceptions. average. The new limit still falls far short of Response:Congress should amend actual childcare costs, and like its Section 105 of the Internal Revenue Code predecessor, it is not indexed for inflation. to allow all HRAs and account-based If the past is any indication of Congressional health plans for both active employees priorities, it may not be increased for and retirees to include a provision that another 40 years. allows the employee to designate Response: The League of Minnesota beneficiaries other than spouses and Cities supports legislation that would dependents. Such beneficiaries should be make permanent the changes in the CAA able to, at a minimum, receive to allow employees to roll all unused reimbursement for their medical expenses funds in a health or dependent care from the inherited account. flexible spending account into the next FED-4. Federal Public Safety plan year, or to allow unused funds to be Collective Bargaining Bill contributed into a tax-qualified retirement plan, or a 457 plan. The Issue: Congress is considering a bill that League of Minnesota Cities also supports would require all states to establish increasing the maximum limit for collective bargaining procedures for all dependent care accounts to current public safety employees. The bill directs the national average childcare costs, with a Federal Labor Relations Authority (FLRA) cost-of-living inflationary increase each to determine, state by state, whether it meets year after the initial adjustment. the bill’s requirements with regard to collective bargaining rights for public sector FED-3. IRS Regulations on Death employees. While it appears Minnesota is Benefits likely to pass the tests set out by the bill, Issue: Current IRS regulations do not allow federal public sector lobbyists have any type of death benefit to be included in a expressed serious concern that the bill is health reimbursement arrangement (HRA) very much open to interpretation. In or tax-free, account-based group health addition, the bill directs the FLRA to plans. If a participant of the HRA or “consider and give weight, to the maximum account-based group health plan dies, they extent practicable, to the opinion of affected cannot leave the remaining funds to a employee organizations.” designated beneficiary unless the beneficiary Response:The League of Minnesota is a spouse or dependent child who remains Cities opposes the federal collective enrolled in the HRA. Public sector HRAs bargaining bill for public sector are often treated as fully vested even when employees. Public sector collective unfunded. If the employee does not have a bargaining should be left to the spouse or dependent child, the funds revert determination of each state. to the employer (who may then credit the balance among plan participants). A death benefit provision is an attractive feature for many employee groups. In 2008, Section 105 of the Internal Revenue Code was Council Packet Page Number 309 of 476 J3, Attachment 2 c) Exempt elected officials from being FED-5. Federal Health Care counted as “employees” for the Reform purposes of the ACA. Issue: Certain provisions of the Patient FED-6. Amended Internal Revenue Protection and Affordable Care Act Code Regarding 403(b) Retirement (commonly referred to as the federal health care reform law or Affordable Care Act Plans (ACA)) are problematic for cities. These Issue: Section 403(b)(1)(A)(ii) of the issues range from administratively difficult Internal Revenue Code allows an employer to very costly. Tracking employee hours, that is a State, a political subdivision of a particularly hours of seasonal and temporary State, or an agency or instrumentality of a employees and council members, is State or a political subdivision of a State to burdensome and requires significant establish a 403(b) retirement plan for administrative time and effort. Because most employees who perform services for of these employees will not qualify for educational organizations as described in coverage under the ACA, the effort does not Section 170(b)(1)(A)(ii) of the Internal result in a worthwhile outcome. There are Revenue Code. This provision of the also situations where employees who are Internal Revenue Code allows employees to currently working more than 30 hours per defer substantially more income for week in a city will now be eligible for health retirement savings than their city care coverage by that city, which will drive government employee counterparts. While up city costs significantly, particularly for government employees who do not perform cities using the “duty crew” concept at fire services for an educational organization may stations to ensure adequate daytime participate in a 457(b) deferred response. Finally, there are provisions which compensation plan, they may not participate require the city to offer coverage to full-time in a 403(b) retirement plan. Government students who are already covered by their employees who perform services for an parents’ insurance and do not need the educational organization are able to coverage through the city, which results in participate in both a 403(b) plan and a wasted effort. 457(b) deferred compensation Response: The League of Minnesota plan. Furthermore, as a result of the Cities supports the intent of the ACA to amendment to Section 457(c) of the Internal provide affordable health care coverage Revenue Code by the Economic Growth and to all Minnesota residents. However, Tax Relief Reconciliation Act of 2001, Congress should: deferrals to a 457(b) plan are not coordinated with elective deferrals made to a a) Exempt (from the offer of coverage 403(b) plan for purposes of complying with requirements) employees under age 26 the limit on pre-tax contributions to either who are covered by their parents’ plan. Both employee groups serve the public insurance; and should be treated similarly under the b) Exempt (from the offer of coverage Internal Revenue Code for purposes of tax- requirements) employees who work in deferred retirement savings plans.” recreational facilities and programs Response:Congress should amend owned and operated by governmental Section 403(b)(1)(A)(ii) of the Internal entities; and Revenue Code to allow an employer that is a State, a political subdivision of a Council Packet Page Number 310 of 476 J3, Attachment 2 State, or an agency or instrumentality of a an active employee can receive from their State or political subdivision to establish a employer. The House version of the One 403(b) plan for all of its employees, Big Beautiful Bill Act included this regardless of whether they perform correction, so Congress is aware of the need, services for an educational organization. but it was inexplicably left on the cutting floor. The correction was lumped together FED-7. Amended Internal Revenue with other more expensive changes for Code Regarding Health Savings purposes of developing the score, and in a Account Eligibility and Medicare standalone bill the cost would likely be de minimis. Enrollment Response:Congress should amend Issue: Section 223(b)(7) of the Internal Section 223(b)(7) of the Internal Revenue Revenue Code provides that the monthly Code to provide that the limitation on limitation on contributions to a health contributions to a health savings account savings account (HSA) is zero starting with for any month with respect to any the first month in which an individual is individual shall be zero for each month entitled to Medicare benefits. A person beginning with the later of (i) the first becomes entitledto Medicare benefits when month in which such individual is entitled their Medicare coverage becomes effective. to benefits under title XVIII of the Social In many cases, Medicare coverage is Security Act or (ii) the month in which effective on a retroactive basis. Specifically, such individual submits a valid when an individual is required to submit an application for benefits under title XVIII application for Medicare coverage under of the Social Security Act. Part A to avoid late enrolment penalties, but they are still working, the Medicare FED 8. Affordable Care Act coverage will be effective retroactively up to Reporting six months before the month in which the application is filed (depending on the date Issue:Almost all Minnesota cities that are on which the individual first become eligible Applicable Large Employers use the federal for Medicare coverage) as described in 42 poverty line safe harbor and can state on CFR §406.6(d). The IRS has indicated that Line 23 of Form 1095-C that they meet the the monthly limitation on HSA contributions Qualifying Offer Method and/or the 98% included in Section 223(b)(7) applies during Offer Method. But they are still required to any retroactive period of Medicare coverage. complete the entirety of Form 1095-C, and This rule is confusing to employees, in particular, the complex and time- employers, and benefit administrators and consuming code combinations in Lines 14 may lead to unintended and unexpected tax and 16. The complexity of the form also consequences for employees and employers increases the likelihood of error. In who may not be aware at the time an HSA December of 2021, the IRS announced that contribution is made that the monthly the “good faith” defense for errors in Forms limitation for that month will be zero if the 1094 and 1095 will no longer be permitted, employee applies for Medicare within the because they “have now been in place for following six months and the coverage is six years, and transitional relief is no longer effective retroactively under this rule. appropriate.” This rationale does not reflect Furthermore, if an employer provides the reality of turnover in the workforce and contributions to an HSA as part of its benefit the often limited resources available to package, then the rule may limit the benefits public employers for legal and tax Council Packet Page Number 311 of 476 J3, Attachment 2 professionals. In 2025, penalties that may be assessed against applicable large employers for good faith errors made on Form 1005-C are $330 per return furnished to the employee and $330 for the same return filed with the IRS, for a potential total of $660 per return. If a city meets the Qualifying Offer Method or the 98% Offer Method, Form 1095-C gathers too much detail at too great a cost to employers. In the public sector, the cost of this administrative burden, along with the potential for penalties due to the complexity, is passed on to the communities they serve. Response: The League of Minnesota Cities supports the intent of the Affordable Care Act (ACA) to provide affordable health care coverage to all Minnesota residents. But Congress (or the IRS) should: a) Allow applicable large employers in the public sector who meet the Qualifying Offer Method or the 98% Offer Method to furnish and file Forms 1095-B rather than Forms 1095-C to all full-time employees and other current and former employees; b) Deem employees who receive premium tax credits during months of non-coverage reported on Form 1095- B to be not employed by the employer, in part-time status, or fall within limited non-assessment periods (employers would still be subject to liability for failures determined on audit); and c) Reinstate relief from penalties relating to incorrect or incomplete filings for public employers that make good faith errors in completing these forms.. Council Packet Page Number 312 of 476 J3, Attachment 2 IMPROVING FISCAL FUTURES limits do not facilitate prudent financial FF-1. State-Local Fiscal Relations planning and decisions. In addition, Issue: Since the 1970s, services provided by during a past state government shutdown Minnesota cities have been largely funded the Department of Revenue indicated that through a combination of property taxes, despite the standing LGA appropriation, state aids, and state property tax relief the shutdown of many state government programs. This system of municipal finance operations would prevent the distribution has evolved to ensure that municipal of the LGA. services can be funded without excessive Adequacy. The revenue sources available local tax burdens. to cities and the state must raise adequate However, the state-local partnership funds to meet city needs, to fund vacillates with the state budget, challenging mandates, and to maintain Minnesota’s the ability of city officials to plan for the long-term competitiveness. future fiscal needs of their communities. Flexibility. As cities become increasingly Response: The League of Minnesota diverse in their characteristics and as Cities supports a strong state-local fiscal existing aid and credit programs have partnership. The state-local fiscal system, eroded, a “one-size-fits-all” system that and any future modifications, should be limits all cities to the property tax as the consistent with the following principles: major, non-state aid revenue source is increasingly unworkable. Some cities Accountability. Cities believe a viable have sufficient property tax base to partnership with the state requires cities sustain an adequate service level, but and the state to communicate effectively many do not. Cities should have greater with each other and with the public about access to other tax and revenue sources their roles and responsibilities. Cities and than currently permitted. the state must also exercise sound financial stewardship, including Equity. All residents should receive maximizing efficiencies in service delivery adequate levels of municipal services at and other means of cost containment relatively similar levels of taxation. This whenever possible. means that the state should provide financial assistance to cities that have Certainty. Cities need to have more high costs, including costs related to certainty and predictability in all of their overburden created by non-resident users available revenue sources, including the of city services, low fiscal capacity, or property tax, the amount of funding they both. State financial assistance should receive from local government aid and also reduce tax burden disparities among similar programs and from other sources communities and between cities and of revenue. The past practice of surrounding areas. retroactive adjustments to local government aid (LGA) and similar programs, unallotments of the appropriation and the imposition of levy Council Packet Page Number 313 of 476 J3, Attachment 2 e)Must maintain detailed estimates of FF-2. State Budget Stability inflationary increases to expenditure Issue: Legislative actions to address past estimates in the state budget forecast; state budget deficits have included f) Should maintain a budget reserve as permanent reductions in funding to local recommended by Minnesota units of government for programs such as Management and Budget based on local government aid as well as the full their assessment of volatility in elimination of programs such as the market Minnesota’s revenue system defined in value homestead credit. In addition, the Minn. Stat. §16A.152, subd. 8 with a Legislature has frequently relied on short- minimum of a five percent reserve; term solutions that have only shifted a large share of the deficit problem into the next g) Should modify the unallotment statute biennium without permanently addressing to place a reasonable statutory limit the state budget problems. on the percentage and timing of the state’s budget that can be unallotted The legislature has taken steps to reduce during a biennium without legislative state budget volatility. As required under approval; and Minn. Stat. § 16A.152, subd. 1, 33 percent of any state general fund budget surplus h) Must emphasize long-term budget identified in the November state budget solutions and budget stability and the forecast must be directed to the state budget continuation of both state and local reserve until the account reaches a targeted government operations. level. i) The League of Minnesota Cities Response: To increase the stability of the supports the principle of state budget and avoid or reduce the representative democracy and opposes impact of future state budget deficits, the limiting the Legislature’s flexibility in Legislature: making financial decisions through new Constitutional amendments. a) Must consider all budget stabilizing options, including revenue increases, FF-3. Funding Local Government with a particular focus on changes Aid that improve the stability of the state's revenue stream; Issue: Local government aid (LGA) is an important component in the state’s property b) Must not further reduce funding for tax relief system, and a critical tool to help property tax relief programs to cities equalize tax base to ensure needs for public and taxpayers; services can be met. To avoid undue c) Must not accelerate the remittance of pressure on the property tax, funding for sales tax collections by retailers LGA must keep pace with inflationary including municipal liquor operations, pressures. and should make steps to reverse past In past years, bills have been introduced that accelerations; would have created offsets to a city’s LGA d) Must consider the aggregate impact distribution if the city imposed a local sales on Minnesota taxpayers of previous tax, spent funds for activities related to budget cuts and tax increases; lobbying or a World’s Fair, or would have reduced or eliminated LGA if the city enacted ordinances to ban plastic bags, Council Packet Page Number 314 of 476 J3, Attachment 2 impose certain local labor laws, ordinances, and seek special legislation to receive the or policies that restrict city employees from withheld LGA, the growing regularity of the enforcing immigration laws, unauthorized legislature’s failure to approve tax bills has ordinances related to diversion programs. jeopardized the restoration of these Such changes would have been a significant payments. deviation from the practice of using the In order to reduce pressure on formula to distribute LGA and could have the property tax, and to equalize property jeopardized the long-term stability of the tax bases, the League of Minnesota Cities program. continues to support the LGA formula as In 2023 the Legislature enacted changes to the appropriate mechanism to distribute the Local Government Aid formula that LGA resources. In addition, the League were recommended by the League of supports: Minnesota Cities and other affiliate groups. ar increases in the LGA a)Regul These formula changes were coupled with appropriation and review of the LGA an $80 million increase in the appropriation. formula While the 2023 House omnibus tax bill b)Restoring the annual inflation included tying the appropriation to inflation adjustment to the LGA program to for future years, that proposal was not move toward funding the total unmet included in the final bill. need of all cities. In 2023, the Legislature included a one-time c)Permanently accelerating of the payment acceleration for payments made in annual LGA payment schedule to 2025 only that distribute 9.402 percent of assist cities with cash flow needs. each city’s 2025 LGA by March 20, with a second payment of 40.598 percent on July d)Establishing an administrative 20 and a final payment of 50 percent on procedure that would allow cities that December 26. For 2026 and beyond, LGA ultimately comply with financial payments will again be made to cities in two reporting requirements to receive equal installments on July 20 and December their withheld aid distributions. 26 each year. The League opposes targeting reductions In 2022, the House omnibus tax bill would to specific cities or groups of cities as well have dedicated a portion of future state as reductions or offsets for local policy or budget surpluses to phase-in an acceleration expenditure decisions. of the July 20 LGA distribution to March The legislature should avoid creating 15.The current distribution occurs late in side-pots or special appropriations the city fiscal year and can create short-term through the LGA (Minn. Stat. ch. 477A) cash flow challenges for some cities. program. If special circumstances such as Current law (Minn. Stat. § 477A.017, subd. a natural disaster warrant additional 3)prohibits the distribution of LGA and state assistance to specific cities, the Small Cities Assistance Account funding criteria for the additional aid should be (Minn. Stat. § 162.145) to cities that have specifically enumerated and the not complied with all financial reporting appropriation should be separate and in requirements to the Office of the State addition to the appropriation through the Auditor. Frequently, failure to comply is due general LGA formula. to factors outside the control of the city. Although many cities subsequently comply Council Packet Page Number 315 of 476 J3, Attachment 2 e) Report on outstanding obligations and FF-4. State Charges for the purpose for each issue filed with the Administrative Services county auditor (Minn. Stat. § 471.70); Issue: Currently, some state agencies have f) Publication of summary budget wide discretion in setting the fees for special statement (Minn. Stat. § 471.6965); services they provide to local governments. g) Publication of statement of liquor store Response: State agencies should be operations (Minn. Stat. § 477A.017); required to justify their service fees or for increases in existing service fees and not h) Liquor store audited financial statements charge more than what is fair, reasonable, (Minn. Stat. § 471.6985); and proportionate to the cost of service. i) TIF district plan and amendments (Minn. Agencies should give adequate notice of Stat. § 469.175, subd. 4a); increases to allow local governments to j) TIF district annual disclosure (Minn. budget for the increases. State agencies Stat. § 469.175, subd. 5); should set administrative service fees as close as possible to the marginal cost of k) TIF district annual financial report providing the service. Local government (Minn. Stat. § 469.175, subd. 6); should be given the option to self- l) Business subsidy reporting (Minn. Stat. administer or contractwith the private §§ 116J.993-.995); sector for the service if the state cannot provide the service at a reasonable cost. m) State required financial activity reports (Minn. Stat. § 6.74); FF-5. Reporting Requirements n) Local improvement requirements (Minn. Issue: Budget and financial reporting Stat. § 429.031); requirements imposed on cities by the state often result in duplication and additional o) Development and permit fees report costs. In addition to the state mandated (Minn. Stat. § 326B.145); annual audits under Minn. Stat. §§ 471.697- p) Utility annual financial statements .698, cities are required to prepare and (Minn. Stat. § 412.381); submit or publish numerous other budget q) Housing and redevelopment authority and financial reports including but not annual financial report (Minn. Stat. § limited to: 469.013); and a)Summary budget reports (Minn. Stat. § r) Federal single audit or a program- 6.745); specific audit (31 U.S.C. § 7502 (a)(1)). b) Summary budget information for the s)A temporary reporting requirement for proposed budget, which is sent to the the federal American Recovery Plan Act county for the annual tax hearing process distributions. (Minn. Stat. § 275.065, subd. 3b); Many cities have expanded the availability c)Treasurers report to the city clerk (Minn. of information on their web sites in response Stat. § 412.141); to resident requests and some cities have d) Statement of tax collections and other begun using new tools to assist residents in income by clerk to the city council understanding the city budget. Expanding (Minn. Stat. § 471.69); state mandated financial reporting requirements could force cities to redirect Council Packet Page Number 316 of 476 J3, Attachment 2 scarce resources to the state mandate and provided within the city or are being stifle innovative ways to communicate with provided at a lower level. residents. Similarly, in some areas, the county Response: Requirements for reporting provides 9-1-1 dispatching services funded and advertising financial and budget through the property tax that is spread across information should be carefully weighed the county but the county may also require to balance the need for information with cities to contribute to the 9-1-1 operations the administrative costs of compiling and through the city budget and property tax submitting this information. In addition, levy. As a result, city businesses and the legislature should direct all state residents are effectively paying twice for agencies to review existing local dispatch services—once through the county government reporting mandates and levy and again through the city levy. eliminate redundant or superfluous Response: Where similar services are requirements. To this point, the provided by different levels of local legislature should consolidate municipal government, property tax levies for those government financial reporting services should only apply to those areas requirements in the Office of State receiving the service. Additionally, Auditor, include an electronic submission counties should be prohibited from alternative to any remaining paper filing requiring cities to contribute to services requirements and authorize the use of that are being funded through the county- web publication where newspaper wide property tax levy. publication is currently required. FF-7. Direct Property Tax Relief Finally, the legislature must not increase Programs reporting burdens for local units of government. Any new reporting Issue: In 2013, the legislature expanded the requirement should have a clearly defined homeowner property tax refund (PTR) statement of purpose and public need not program and renamed it the Homestead currently met with existing reports, a Credit Refund program. As a direct taxpayer sunset date to facilitate a future relief program, the Homestead Credit discussion of the usefulness of the Refund avoids the problems with the former requirement as well as full state funding Market Value Homestead Credit system for the costs associated with a new where the state provided a credit on the reporting mandate. homeowner’s property tax statement but did not always reimburse cities and counties for FF-6. Taxation Duplication the amount of the credit. Issue: In Minnesota, local governments Response: The League of Minnesota occasionally provide residents and Cities supports providing additional, businesses similar types of services. For direct property tax relief through an example, counties maintain a sheriff’s office expansion of the Homestead Credit while in many cities, police services are Refund program, the renters’ income tax provided by the city to their residents and credit, the targeting program or other businesses. When the county levy for the programs that provide property tax relief sheriff’s operations is spread across the directly from the state to taxpayers. In county, city residents and businesses are addition, the League supports the recent being taxed for services that are not being conversion of the renters credit to an Council Packet Page Number 317 of 476 J3, Attachment 2 income tax credit using adjusted gross the motor vehicle sales tax on marked police income rather than household income for vehicles or firefighting vehicles, other city determining eligibility and would also vehicles are not exempt from the motor support similar changes to the homestead vehicle sales tax. credit refund and targeting program to The 2021 legislature extended the sales tax increase the accessibility of these refund process under Minn. Stat. § 297A.71 programs and remove administrative and Minn. Stat. § 297A.75 to contractor hurdles in claiming them. purchases of construction materials, supplies The League opposes property tax credit and equipment incorporated into public programs that reimburse local units of safety buildings for initial construction, government for reduced tax burden such remodeling, expansion and improvements as the former market value homestead for public safety facilities owned by local credit system due to the fact that the units of government. The refund process reimbursements to local units of also applies to materials used in related government can be cut while the credit to facilities such as access roads, lighting, the taxpayer remains on the property tax sidewalks and utility components. statement. In addition, the League Response:In order to ensure that opposes reinstituting Limited Market taxpayers receive the full benefit of the Value, a program that reduces the taxable local government sales tax exemption: value of individual properties based on a) The exemption should apply to all assessor’s valuation increase or freezes in purchases made by local units of property valuations. Limited Market government; Value or a valuation freeze create property tax shifts and tax burden b) The process to receive the exemption inequities between similar properties. for construction materials used in local government projects should be FF-8. Sales Tax on Local simplified or added to the refund Government Purchases process now available for local Issue: The local government sales tax government public safety facilities; exemption enacted in 2013 and expanded in and 2014 does not apply to all city purchases. c) The exemption should be extended to Some purchases for municipal enterprise all local government purchases that operations, such as liquor stores and golf would otherwise be subject to the courses are excluded from the exemption. In motor vehicle sales tax in Minn. Stat. addition, in order to receive the sales tax ch. 297B. exemption on construction materials under current law, cities must bid labor and FF-9. Taxation of Electronic materials separately and also designate a Commerce contractor to be a purchasing agent on Issue: The 2018 U.S. Supreme Court behalf of the city. The existing Department decision \[South Dakota v. Wayfair, Inc., 585 of Revenue rules (Minn. Rule 8130.1200, U.S. ___ (2018)\] overturned two earlier subp. 3) are complex and the Supreme Court decisions \[Quill Corp. v. implementation can be so complicated that it North Dakota, 504 U.S. 298 (1992) and can cost cities more money to implement National Bellas Hess v. Department of than they will save on the tax exemption. Revenue, 386 U.S. 753 (1967)\] that had Finally, although cities currently do not pay Council Packet Page Number 318 of 476 J3, Attachment 2 prevented states from requiring retailers the state for local units of government under without a physical presence from collecting Minn. Stat. § 469.190, subd. 7, also clearly state and local sales taxes on purchases apply to services provided by these made by state residents and businesses. accommodation intermediaries since these taxes are required under Minn. Stat. § A group of 23 states participating in the 270C.171 to use the definition for tax base Streamlined Sales Tax Project have worked contained in the general sales tax statute. together for more than 18 years to simplify the administration of state and local sales Since 2011, some accommodation taxes and reduce the administrative burden intermediaries have not been collecting and on retailers. The success of this project was remitting locally-administered lodging taxes referenced in the Wayfair decision. based on the full cost of the accommodation plus the accommodation intermediary Despite the Supreme Court’s Wayfair services. This presents an inequitable system decision, new legal challenges could be filed where these services are taxable for the by remote retailers or Congress could select few state administered local lodging intervene to address remaining sales tax taxes more typically located in larger administration issues including the fact that regional centers, but not locally more than 20 states with sales taxes have not administered local lodging taxes. There are adopted the SSUTP standards. currently over 120 cities and towns that Response: Federal tax policy should not individually or jointly impose lodging taxes place main street businesses at a for tourism purposes under Minn. Stat. § competitive disadvantage to electronic 469.190. Another eight cities impose a retailers, must not jeopardize repayment lodging tax that is administered locally of bonds backed by state and local sales under special law. 14 city local lodging tax revenues, and should ensure stability taxes are currently administered by the state. in state and local revenues. To address the Response:The League of Minnesota challenges created by the growth of Cities supports legislation that will clarify electronic commerce, the League of that all lodging taxes, whether Minnesota Cities continues to support the administered by the state or administered multi-state effort to develop a streamlined locally, apply to the total charges to the sales tax system. customer, including charges for services Should Congress intervene, the League provided by accommodation would support nation-wide sales tax intermediaries. administration standards based on the FF-11. Taxation of Electric model developed by the Streamlined Sales Generation Personal Property Tax Project. The League will oppose Congressional efforts to reverse remote Issue: Investor-owned utilities (IOUs) have retailer collection requirements. a longstanding relationship with Minnesota cities. IOUs site baseload power plants in FF-10. Local Lodging Taxes host communities, and in exchange pay Issue: In 2011, the legislature amended personal property tax on attached generation Minn. Stat. § 297A.61 to define machinery to the cities, counties and school accommodation intermediaries and clarified districts hosting the plants. These plants that their services are subject to the state bring jobs to our communities, but they also sales tax as part of the tax imposed on create nuisances such as air pollution, lodging. Local lodging taxes collected by Council Packet Page Number 319 of 476 J3, Attachment 2 nuclear waste, noise, vibration, and coal FF-12. Electric Generation train traffic. They also create security risks Taxation Reform and take up land that could be used for Issue: Currently, electric utilities are subject other, less disruptive commercial and to a personal property tax on personal industrial development. Cities believe property which is part of an electric personal property taxes paid by IOUs are a generating, transmission, or distribution fair compensation for the environmental and system. This tax has a number of economic costs of hosting baseload power exemptions and exclusions which make a plants. patchwork of taxation statewide. The IOUs argue that personal property tax relief Department of Revenue issued a report on is important to pass along to their February 15, 2015 which laid out the details shareholders and ratepayers. However, only of this tax system, stating, “The utility tax a few IOU shareholders and ratepayers base comprised of these energy producing actually live in the communities hosting facilities is not predictable. The baseload power plants. Further, almost all unpredictability is a result of law and rule new power plants receive personal property changes that determine the amount of utility tax exemptions from the Legislature, while tax base available for host communities.” host communities with existing, non-exempt Cities which host Investor-Owned Utility baseload plants will continue to have them base load power plants have faced for decades to come. unpredictability in tax base from both Currently the taxation of electric generation changes to state law regarding the personal personal property represents the best method property tax on electric generation for reimbursing host communities for the equipment and from changes in valuation cost of hosting IOUs. due to the upgrade/depreciation cycle of equipment. Response: Personal property taxes on attached electric generation machinery In the past, the Minnesota Legislature has are a fair way to spread the considered a reform to the system of taxing environmental and economic costs of electric generation, which would repeal the electric generation power plants among personal property tax and all of its all IOU shareholders and ratepayers. The exclusions and exemptions, and replace it League of Minnesota Cities supports the with new approaches to valuing utility continuation of personal property taxes property. More recently the Department of paid by IOUs to host communities for Revenue has reached out to discuss the existing and new facilities or a tax system possibility of a gross operating revenues tax which generates equal or greater revenue with local governments and other for host communities. If the Department stakeholders to replace the existing state of Revenue or the Legislature chooses assessed property system. evaluate new methods of utility taxation, Statutory changes to the system of electric the League supports the inclusion of these generation taxation should not adversely environmental and economic costs in affect host city tax revenues. Any proposal assessing the appropriate property taxes to change the system must include some paid to host cities by electric generation form of replacement aid which compensates facilities. cities for adverse effects due to changing state law on electric generation taxation. Council Packet Page Number 320 of 476 J3, Attachment 2 Moreover, utility company appeals of have with some Minnesota cities, the Department of Revenue valuations of utility possible retirement of these power plants property can cause significant turmoil for stands to have a significant disruptive effect local governments, including property tax on these cities. shifts onto residents and businesses and—in Cities that host baseload power plants make the case of a successful tax court challenge significant investments to support those by a utility—the possibility of being forced plants, including infrastructure, public to pay back taxes that have already been safety, and disaster preparedness. To collected and spent in prior years. compensate for this, IOUs pay personal Response: The personal property tax on property tax on electric generation electric generation equipment as well as machinery. For some cities, these revenues the exemptions, exclusions and sliding can account for over 50% of the city’s scales to that tax represent a patchwork annual budget. Moreover, IOUs have other of taxation rules statewide. Changes to significant direct and indirect impacts on state law which replace the personal host communities. IOUs tend to employ property tax on electric generation significant numbers of employees at equipment with a tax base valuation baseload power plants. Those employees are based on electric generation capacity, likely to live, work, attend school, and shop production, nuclear storage, transmission, in and around the local community. and distribution will benefit IOU host Therefore, the of the retirement of these cities so long as the change comes with a plants would have significant negative factor to increase the tax base valuation impacts on these communities. over time and reimbursement to cities for While the power that is generated at these revenues lost due to a change in state law. facilities goes to support the entire state of Likewise, any changes to process by Minnesota, the impacts of hosting these which investor owned utilities appeal the plants is felt most acutely in these local valuation of their property should be communities. In recent years, the State of made with the goal of reducing negative Minnesota has taken steps to support cities impacts on local governments, and facing these unique circumstances, increasing stability, predictability, and including the creation of the Community transparency. Energy Transition Grant Program under Minn. Stat. § 116J.551, and the creation of FF-13. Support for Transitioning the Energy Transition Office and Advisory Communities Committee under Minn. Stat. § 116J.5491 Issue: Technological advancements and – 5493. In 2023 the legislature established market forces are rapidly changing the an electric generation transition aid under electric generation industry. Investor-owned 477a.24 for counties, cities, townships, and utilities (IOUs) in Minnesota are increasing school districts that lose tax base when an the share of their electric generation electric generation plant is retired. The portfolios that are made up of renewable initial aid amount is equal to the tax base generation sources like wind and solar, lost due to the retirement times the while planning to decrease the share of jurisdiction’s tax rate in the year prior to the electric generation that is derived from tax base loss. The aid is phased out over 20 baseload power plants that produce energy years. from coal or nuclear sources. Due to the deep and longstanding relationship IOUs Council Packet Page Number 321 of 476 J3, Attachment 2 Response: The League of Minnesota before water and air pollution were heavily Cities recognizes that the energy regulated by the Environmental Protection landscape is rapidly changing and Agency and the Minnesota Pollution Control supports state policies to replace tax base Agency. The language and the purpose of in communities facing the closure of a these statutes have evolved through the baseload power plant, as well as other years. When states first began adopting policies or programs to help those these tax incentives in the 1960s, they hoped communities replace their local tax base to encourage utilities, industrial plants, and through economic development. The others to install pollution control equipment. League of Minnesota Cities also support Gradually, as regulation increased, states efforts by the state legislature and state adopted the exemptions to help companies agencies to study, analyze, and design offset the cost of the equipment. policy solutions to address the unique This tax benefit erodes local tax bases. In challenges these communities face. 2013, more than $1.8 billion of personal and real property for electrical generation was FF-14. Taxation of Municipal Bond exempted from the market value of utilities. Interest The incentive value of this benefit is low Issue: The federal and state laws that grant a because utility companies are required to tax exemption to bondholders for municipal install the equipment anyway. In addition, bond interest lowers borrowing costs for these companies frequently recover the cost cities and reduces property tax levies. of the equipment through rate riders granted Recent proposed Internal Revenue Service by the Public Utilities Commission. rules would potentially restrict some local Allowing the pollution control equipment government entities such as housing and exemption places the cost of this equipment redevelopment authorities, economic on the residents of the host community, development authorities and port authorities rather than the purchasers of electricity. from issuing tax exempt bonds. Response:The pollution control Response: Congress and the state should exemption places an undue burden on maintain the tax exemption for municipal host communities without incentivizing bond interest income. Congress should the environmentally responsible behavior also clarify the law to supersede proposed that it was originally created to IRS rules and thereby continue to allow encourage. The League of Minnesota housing and redevelopment authorities, Cities supports narrowing or eliminating economic development authorities and the pollution control equipment port authorities to issue tax exempt debt. exemption for investor-owned electric generation facilities. The League would FF-15. Pollution Control also support allowing utilities to continue Exemption to recover their costs relating to the Issue: Minnesota grants electric utilities and pollution control equipment by spreading several other industries a property tax those costs to electricity users. exemption for personal and real property FF-16. Representative Democracy that is primarily used for pollution control. and Local Control Minnesota adopted the property tax exemption that now extends to electrical Issue:Local officials are elected to make generation systems, agricultural operations, decisions on behalf of their community, and wastewater treatment facilities in 1967, Council Packet Page Number 322 of 476 J3, Attachment 2 including important taxation and principle of representative democracy expenditure decisions. At times, the that allows local officials to make legislature has enacted blunt tools such as decisions without state or other levy limits to supersede the discretion of city restrictions. councils. Levy limits replace local FF-17. Tax Hearing and accountability with a state judgment about Notification Process the appropriate level of local taxation and local services. Additionally, state restrictions Issue:Cities must set a preliminary levy by on local budgets, ordinances and fees can September 30, which is the levy used to unnecessarily restrict the abilities of city compute the parcel-specific property tax councils to respond to local needs and also notification forms. With only a few limited have a negative effect on a city’s bond rating exemptions (e.g., voter-approved levies, due to the restriction on revenue flexibility. levies for natural disasters and levies for certain tort judgments), this preliminary As city officials try to plan for future local levy, by law, becomes the maximum that needs, levy limits can be as much a floor as cities can levy the following year. As a a ceiling on local government levies as local result, cities may be unable to budget for officials try to anticipate future state actions unforeseen needs that arise after September by “levying to the limit” to preserve future 30. levy authority. Response:Cities should have the Levy limits also fail to account for the authority to increase the final levy from decertification of tax increment financing the preliminary levy with the approval of districts. Upon decertification, the property the commissioner of the Department of taxes that were formerly collected and used Revenue, to meet additional, unforeseen to support the public improvements in the and uncontrollable needs, including TIF district can no longer be collected at the arbitrator awards resulting from labor same rate and used to support ongoing negotiations, the impact of new and general city operations. existing federal or state mandates Response: Local elected officials are including administrative rules, or other elected to make decisions about local non-discretionary budget factors. issues and concerns and act to meet The tax hearing and notification law community needs in the short-term and should be carefully reviewed to assure the long-term. City councilmembers and that the legislative intent is reflected in city mayors are elected to represent their the statutes. community in decision-making processes. Those elected to serve are best suited to Specifically, the League of Minnesota make decisions closest to the people most Cities supports the following: closely affected. They make decisions a) Modifying Minn. Stat. § 275.065 to about their activities in their city which clearly and fully exclude cities of are reflective of their adopted municipal population 500 and under from the ordinances and annually adopted fee budget and levy hearing schedules. Local budgets, fees and requirements; ordinances are based on each particular city’s own particular unique community b) Reinstating the exception to the tax needs, attributes and considerations. The hearing and notification requirements League of Minnesota Cities supports the for cities with more than 500 residents Council Packet Page Number 323 of 476 J3, Attachment 2 with a proposed levy increase below December 31, shortly after the city receives the implicit price deflator (IPD); and its largest sources of revenue from the property tax and state aid distributions. c)In order to assist local officials with Measuring at this time, however, yields a the challenge of explaining legislative picture of a high fund balance even though changes to the property tax system, the city will spend down these funds to cash legislators should attend and be flow the next five to six months of its encouraged to participate in local operations. government budget hearings in their districts. Response: The state should respect local decisions on adequacy of local fund FF-18. General Election balances. The League of Minnesota Cities Requirement for Ballot Questions opposes any attempt to divert local reserves to benefit the state budget or use Issue:Under current state law, when cities reserves as a rationale for state aid cuts or are required to seek voter approval on a property tax payment delays. ballot question or where statutes allow voters to petition for an election on a council FF-20. Local Sales Tax and City action (reverse referendum), these referenda Revenue Diversification can generally be held at a general or special election. This flexibility allows cities to Issue:Under current state law, the property respond to local circumstances in a timely tax is the only generally accessible form of manner. local tax revenue for cities. Allowing cities to diversify their revenue stream would help Response: Cities should be allowed to prevent rapid additional future reliance on conduct elections on ballot questions at a the property tax. date and time set by the city council and that complies with existing election The basic public finance rationale for notification statutes. diversification of local tax systems is rooted in the fact that economists generally agree FF-19. City Fund Balances that there is no perfect tax. Each tax has unique strengths and weaknesses and the Issue: As a component of a prudent more intensively any single tax type is used, financial management plan, cities maintain a the more obvious its shortcomings become. fund balance composed of cash flow funds, For example, the property tax is generally savings for projects, and rainy-day reserves regarded as being very stable throughout the to maintain high level bond ratings and to economic cycle and it is considered to be a minimize borrowing costs. Although the size relatively easy tax to administer and enforce. of a city’s fund balance should be However, when property tax burdens determined through local financial needs become too high, there may be negative and local preferences, some cities are being consequences for other public policy criticized for maintaining “excessive” objectives such as business development and reserves. As the recent pandemic unfolded, home ownership. there were calls to delay tax payments by property owners, citing city fund balances as In addition to avoiding the problems created evidence that cities could absorb cash flow by excessive reliance on any single tax, a delays. balanced and diversified revenue system for Minnesota cities may create a more The Office of the State Auditor (OSA) favorable business climate and provide for report measures city fund balances on Council Packet Page Number 324 of 476 J3, Attachment 2 greater stability of revenues to the recipient make recommendations on how these government unit throughout the course of requests should be handled moving forward. the economic cycle. Response:Cities should be able to Under Minn. Stat. § 297A.99, the diversify their sources of revenues. The Legislature has created a set of local sales League of Minnesota Cities continues to tax rules and a defined process by which support a statutory change to generally cities and other political subdivisions can allow a city to enact a local sales tax for impose a general local sales tax. Although public improvements and capital the statutory process requires the city replacement costs, including but not council to adopt a resolution supporting the limited to those specified in the 2019 local sales tax, the process continues to legislation: require the authorization of the local sales a) Convention or civic centers; tax by the Legislature through the passage of b) Public libraries; a special law before finally seeking voter approval at a general election. c) Parks, trails, and recreational facilities; The 2019 requirement to have separate ballot questions for each project has d) Overpasses, arterial and collector challenged cities to draft ballot questions roads, or bridges, on, adjacent to, or that are clear to voters. Each question must connecting to a Minnesota state describe the project and the sales tax that highway; will support the proposed project however, e) Railroad overpasses or crossing safety the requirement could confuse voters that improvements; each project would result in separate sales tax rate increases that would be cumulative. f) Transportation infrastructure improvements, including construction, Cities are also currently prohibited from repair of roadways, bridges and imposing a new sales tax for a period of airports; one-year from the expiration of an existing local sales tax under Minn. Stat. § 297A.99, g) Flood control and protection; subd. 3(d), which creates an administrative h) Water quality projects to address challenge for retailers who collect the local groundwater and drinking water sales taxes when local sales taxes blink off pollution problems; and then on again for a new project. i) Court facilities; City requests for sales tax authority continue to increase. In 2019, the legislature granted j) Fire, law enforcement, or public safety local sales tax authority to an additional 16 facilities; or cities and in 2021, an additional 16 cities k) Municipal buildings. were authorized to conduct a referendum to Local sales taxes would follow the process impose new or expanded local sales taxes. In outlined in Minn. Stat. § 297A.99 but 2023 the legislature authorized 32 cities for without the need for the approval by the either new local sales taxes or modifications Legislature and governor through the to existing authority. Additionally, the 2023 passage of special legislation. legislature created a two year moratorium on future consideration of any local sales tax authorizations and created a task force to Council Packet Page Number 325 of 476 J3, Attachment 2 The existing general law governing local five percent local lodging tax and to allow sales (Minn. Stat. § 297A.99) should be cities to modify the uses of their local modified as follows: lodging tax revenues to meet local needs. Cities should also have general authority a) The local referendum requirement to create utilities, similar to the storm under Minn. Stat. § 297A.99, subd. sewer utility authority, in order to fund 3(a) should be clarified to allow the local services where benefit or usage of referendum to occur at any November the service can be measured. election, regardless of whether a city has candidates or questions on the FF-21. City Franchise Authority ballot or a special election. Issue: Under Minn. Stat. ch. 216B and b) The requirement for separate ballot Minn. Stat. § 301B.01, a city may require a questions for each proposed project public utility furnishing gas or electric utility under Minn. Stat. § 297A.99, subd. services or occupying streets, highways or 3(a) should be clarified, possibly other public property within a municipality through changes to the structure of to obtain a franchise to operate within the the ballot, to avoid voter confusion. community. In addition, cable system Alternatively, the legislature should operators are required to obtain a franchise consider allowing a city the option of under Minn. Stat. ch. 238. combining projects into a single ballot Under a franchise, the city may require the question. utility to pay a fee to the municipality to c) The current prohibition on imposing a raise revenue or to defray increased new local sales tax for a period of one- municipal costs, such as maintenance and year from the expiration of an existing reconstruction costs, accruing as a result of local sales tax under Minn. Stat. § utility operations, or both. 297A.99, subd. 3(d), creates State law currently allows the franchise fee administrative challenges for retailers to be based upon gross operating revenues and should be repealed. or gross earnings of the utility from its d) The general law outlining the local operations in the municipality. In this sales tax process or individual special manner, all utility users within the laws should allow a city the flexibility municipality contribute to the public costs to modify the ballot question to associated with the utility operation. In the increase the total amount of the sales absence of franchise fees, municipal costs tax collected and extend the duration resulting from utility operations are of tax to cover unanticipated project currently being funded by property cost increases. taxpayers. State law should also be modified to Many cities also have policies related to generally authorize any city to impose utility company services and products that other types of taxes such as a local payroll could be supported under conditions of a tax or an entertainment tax with the franchise agreement, such as local adoption of a supporting resolution by the renewable energy and energy efficiency city council and after approval by the programs. Current statutes do not explicitly voters at a general or special election. provide city authority to include those types of performance conditions in a franchise In addition, Minn. Stat. § 469.190 should agreement. amended to allow cities to impose up to a Council Packet Page Number 326 of 476 J3, Attachment 2 Under current law, cities are permitted to In 2021, the legislature appropriated $29.4 engage residents when discussing a new or million from the state’s general fund to renewed franchise fee arrangement in the reimburse a pipeline company for the tax manner that best fits the community. A court judgment. However, this one-time recent legislative proposal would have appropriation will not provide assistance to added a prescriptive notification and reverse other recent tax court decisions. referendum requirement to the process of Response:The state should establish a imposing or renewing a franchise agreement permanent program to provide financial with a gas or an electric utility. compensation to all units of local Response: Municipal authority to collect government for court ordered property franchise fee revenues from utilities is an tax refunds where the state has important and equitable mechanism to determined values. offset the costs of maintaining public FF-23. Transition for Property right-of-way and to generate a return on Acquired by Tax-Exempt Entities a publicly held asset. Municipal franchise authority must be preserved and should Issue: When an existing taxable property is be expanded to allow city policy priorities acquired by a tax-exempt entity other than a to be addressed through conditions in city or a city development authority or franchise agreements that have the cost otherwise becomes tax exempt and removed covered by local ratepayers, where from the tax base, the taxes formerly paid by appropriate, and can be accomplished the property owner are shifted to other, within the local franchise boundaries. The remaining taxable properties within the League opposes adding a one-size-fits-all jurisdiction. When the acquired property is a notification requirement and a reverse large percentage of the tax base of a city or referendum procedure to the gas and other local unit of government, the shift in electric franchise fee process. In addition, taxes can be substantial. in situations where a local provider Response:The state should establish a decides to sell their operations, the city program to provide financial must have the right of first refusal to compensation to all units of local purchase the assets of the utility. government for court ordered property FF-22. State Assistance for tax refunds where the state has determined values. Property Tax Refunds for State- Assessed Property FF-24. Payments for Services to Issue: State law requires certain property, Tax-Exempt Property including pipelines, railroad, utility property Issue: Taxable property in many cities is be assessed for property taxation purposes being acquired by nonprofit and government by the Minnesota Department of Revenue. entities. Converting the property to tax- When companies challenge the valuation of exempt status can lead to serious tax base these properties, local units of government erosion without any corresponding reduction may be required to refund excess taxes, in the service needs created by the property. which in some cases, can create financial In 2013, legislation was introduced that hardship for local units of government and would have broadly exempted non-profit their taxpayers. property from paying user fees or service charges for any service funded in part with Council Packet Page Number 327 of 476 J3, Attachment 2 property taxes over the previous five years. use) will be subject to the service charge. Under certain circumstances, this proposal Some special services have included street could have potentially exempted non-profits and sidewalk cleaning, snow and ice from paying for even utility charges. removal, lighting, signage, parking, parking enforcement, marketing and promotion, Response: Cities should have the landscaping, and security. A SSD may be authority to collect payments from established only by petition and the city statutorily-exempt property owners to adopts an ordinance to establish it. Minn. cover costs of service similar to the Stat. §§ 428A.09-10 establishes procedures authority provided under the special for the business owners in the SSD to veto assessment law. The League of Minnesota or end the SSD. The 2013 legislature Cities opposes legislation that would extended the sunset for both tools for 15 exempt non-profits from paying for user years, making it set to expire on June 30, fees and service charges that help fund 2028. In 2017, the House considered services these organizations use. legislation that was ultimately unsuccessful FF-25. Housing Improvement to repeal the general SSD authority for cities. There are currently over 15 cities that Areas and Special Service Districts have established SSDs around the state. Petitioned by Business Additionally, in addressing the changing Issue: In 1996, cities were granted general landscape of modern urban cores and the authority under Minn. Stat. §§ 428A.11-.21 increase of multi-family properties in to use Housing Improvement Areas (HIAs) downtown areas, the 2023 legislature in order to finance housing improvements allowed qualified multi-family properties to for condominium and townhome complexes. be included in SSDs. Several cities around the state have used this tool and found it to be a useful mechanism As cities work to develop and/or redevelop for maintaining older association homes. commercial, industrial, and residential areas, new ways of paying for and providing The 2013 Legislature also granted HIA increased levels of service should be authority to a county Community available to local entities. Use of Special Development Authority (CDA). As part of Service Districts in mixed-use development that authority, the CDA is required to gather is one tool that could be available for this local approval before creating an HIA. purpose. In 1996, the Legislature also gave cities the Response:The Legislature should give general authority to create Special Service cities permanent authority to create HIAs Districts (SSDs) under Minn. Stat. and SSDs. The League of Minnesota §§ 428A.01-.101. Cities around the state Cities supports the authority for cities to have used this tool to provide an increased work with multi-family properties and level of service to commercial or industrial businesses to establish SSDs and opposes areas, commonly in areas of retail efforts to restrict general authority of the concentration. SSDs are established at the tool. request of local businesses, who ultimately pay for and benefit from the increased level If the Legislature grants multi- of service. A SSD may be established jurisdictional entities the authority to anywhere in a city but only business create HIAs, creation of an HIA must property (i.e. commercial, industrial, utility, require local approval. or land zoned for commercial or industrial Council Packet Page Number 328 of 476 J3, Attachment 2 they provide. It is always in the best interest FF-26. Tax-Forfeited Properties of taxpayers to return these properties to the and Local Special Assessments tax rolls as quickly as possible. Issue: Special assessments are a charge Although the tax forfeiture process is authorized by the Legislature and state law, controlled by the county, and counties have imposed on properties for a particular a legitimate need to be reimbursed for improvement that benefits those selected reasonable administrative costs, the city properties. Cities follow complex, time- often has more at stake financially in terms consuming statutory special assessment of costs fronted to facilitate development procedures to specially assess the (e.g., assessments for public infrastructure appropriate amount of the local and unpaid development or utility fees). infrastructure improvements to those While the tax forfeit procedure provides a properties. process for the repayment of special If a property with validly attached special assessments, it does not require the assessments goes into tax-forfeiture, the repayment of unpaid utility charges or county auditor cancels all of the local unpaid building and development fees. special assessments due and remaining Further, due to large assessments that some unpaid on each parcel, which is authorized cities are left with, it may not be practical to in Minn. Stat. § 282.07. Therefore, the city sell a tax-forfeited property subject to a loses the funds previously budgeted and special assessment, and city taxpayers may planned for to pay for the local be forced to absorb the sunk costs of a improvements. To underline this point, the project in order to sell the property. funds have already been expended and if not State statutes governing the apportionment collected, result in losses to the city. of the proceeds from the sale of tax forfeit When tax-forfeited land returns to private property allow counties to first recover ownership, and the parcel benefitted from an administrative costs related to the tax improvement for which the city canceled forfeiture process before subsequent special assessments because of the allocations are made for special assessments forfeiture, the city may assess or reassess the and hazardous waste cleanup associated parcel. But cities must go through the same with the property. State law is unclear cumbersome notice and hearing procedures whether the proceeds from a tax forfeiture in order to re-attach the assessments. transaction should be used to reimburse the county only for the expenses associated with Response: The Legislature should remove the transacted parcel, or if the proceeds can cancellation of local special assessments be used to reimburse the county for from state law, allowing cities to receive administrative costs associated with other the funding validly assessed and counted parcels that were not transacted. When the on to fund local infrastructure latter allocation method is employed by a improvements. county, the transaction proceeds can be FF-27. Distribution of Proceeds disproportionately applied to county from the Sale of Tax-Forfeit administrative costs resulting in a lower allocation of remaining proceeds to cover Property existing special assessments, hazardous Issue: When properties go into tax forfeiture waste cleanup costs and ultimately the final all levels of government lose tax revenue allocation of residual tax forfeit sale that would otherwise support the services proceeds to cities. Council Packet Page Number 329 of 476 J3, Attachment 2 In addition, counties are allowed to use 30 amended to prevent the proceeds from percent of the amount remaining after the the sales of a tax forfeited parcel to be deduction for administrative expenses and used to pay excessive administrative costs the repayment of special assessments for or the costs for other parcels in the county forest development projects and then 20 until the city is fairly reimbursed for percent of any remaining proceeds for unpaid assessments and development county parks and recreation projects. The costs of the transacted parcel. structure of the distribution of the proceeds Before the final distribution of any frequently results in cities receiving a very remaining proceeds from the sale of tax small percentage of the initial forfeit sale forfeited land are distributed to cities, proceeds. As a result, cities may not recoup counties, and school districts, Minn. Stat. even a portion of the unpaid taxes or special § 282.08(4)(i) and (ii) give counties the assessments owed on a property. right to take up to half of those proceeds In most cases, cities and counties work for county forest development and county collaboratively to ensure that properties are park and recreation areas. The League returned to the tax rolls quickly to benefit all also supports the elimination of these taxpayers. However, when consensus is not separate statutory apportionments while reached, the tax forfeiture statutes place allowing counties to use their designated cities at a disadvantage and can 40 percent share of the remaining disproportionately burden the taxpayers of proceeds for these uses. the city in which the properties are located. FF-28. State Hazard Mitigation and Response: The League of Minnesota Response Support Cities believes the tax forfeiture statutes Issue: Cities in Minnesota are exposed to should be reviewed and amended as extreme weather events such as winds, necessary to ensure that the needs of city flooding, fires, and drought and are facing and county taxpayers are properly the severe financial consequences of the balanced. Specifically, the League clean-up, repairs, and community social and supports changes in the distribution of economic recovery, even though damages the proceeds from the sale of tax forfeit may be deemed “not of such severity and property contained in Minn. Stat. § magnitude” as to qualify for federal 282.08 to elevate the priority for assistance. repayment of unpaid charges for electricity, water and sewer charges Response:The League of Minnesota certified pursuant to Minn. Stat. § Cities calls on our legislators and state 444.075 subd. 3(e), and any unpaid fees executive agencies charged with hazard prescribed pursuant to Minn. Stat. § mitigation planning to address not only a 462.353 subd. 4(a), to require those response to extreme weather events but to unpaid charges and fees to be repaid also put into place a proactive strategy to immediately after unpaid special minimize or mitigate the financial assessments. consequences. At a minimum, this effort should offer a reasonable loan funding The proceeds from the sale of a tax program that is easily accessible by cities, forfeited parcel should be used to pay the businesses and homeowners to financially assessments and administrative and recover and rebuild, with the ultimate development costs for the transacted parcel. Minn. Stat. § 282.09 should be Council Packet Page Number 330 of 476 J3, Attachment 2 goal of preserving jobs, industries, and regional library system has a board and hires communities. the director. A city that participates in the regional system will have an MOE The state response should allow for the (calculated as described above). The city use of new technology and best MOE may include dollars provided directly management practices for any to the regional library system or operating reconstruction of infrastructure to lessen dollars provided to support building costs the impact of future disasters and to (i.e. city-provided maintenance services). mitigate the effects of disasters resulting from future extreme weather events. In the metropolitan area, the seven county library systems and one city library system FF-29. Library Funding belong to the Metropolitan Library Services Agency (MELSA), the metro area regional Issue: State law requires that local library system. Most of the cities that governments maintain a minimum level of operate libraries independently from their funding for public library services. This is county library system belong to MELSA as collectively known as “state-certified levels affiliates of their county library system. The of library support,” or more commonly funding of libraries in MELSA may be from known as, “maintenance of effort (MOE)” a county levy, a city levy, a city library fund and is described in Minn. Stat. § 134.34. from the general city levy or a combination. A majority of public libraries in Minnesota Most libraries not only serve city residents, belong a regional library system, which is but also serve people that reside outside of the entity that receives library funding from city limits who, in some cases, are not fully the Minnesota Department of Education. Six contributing to the upkeep, maintenance or of the 12 regional library systems are operations of the library through property structured as a federated system where the tax levies. While counties do contribute to individual libraries or library systems municipal libraries, this support falls well operate autonomously from the regional short of the per capita amounts contributed library system but they can utilize certain by city residents. services such as inter-library loan distribution, digital card cataloging, which City officials support libraries and believe capitalize on economies of effort from that a system of equitably funded libraries is partnering with the other libraries in the needed. One approach that has been regional system. The MOE for any city that previously approved by the Legislature is taxes separately for library services is now providing for funding through regional tax set at 90% of the amount established in 2011 levies designated as “library districts.” A (see Minn. Stat. § 275.761). In 2011, it was district would have the authority to levy for calculated using a formula that included public library services in lieu of their payments made in the form of the library member cities and counties. Under Minn. employee salaries, payments toward Stat. § 134.201, the Great River Regional operating the facility, purchasing materials Library System and the East Central from the library, and other operating costs, Regional Library System already have adjusted net tax capacity, and several other authority to create “library districts.” factors. The other half of the state’s public Some cities also contribute a supplemental library systems are consolidated systems, amount of funding separate from MOE where the regional library system runs the requirements, usually to pay for building libraries through a joint powers agreement maintenance costs. When the state calculates with counties and participating cities. The Council Packet Page Number 331 of 476 J3, Attachment 2 the required MOE for each local unit of FF-30. Park and Library Land Tax government, local building costs are Break included in city MOE requirements and all Issue: As the price for land increases, it is monies cities contribute to a library becoming more difficult for cities and other building, except capital, are taken into local units of government to compete with account. The MOE requirement is a mandate developers to save and secure land and on cities that does not allow for local easements that are deemed appropriate for decision making. However, it provides a park, library, trail, and green spaces. stable source of funding to protect the investment in library resources and services Response: The state should amend the tax around the state. There are some groups that laws to provide tax incentives for are advocating for a restoration of the MOE property owners who sell land and to levels at least as high as the 2010 level. easements to local units of government when the land is to be used for park, Response: The League of Minnesota library, trail or green space purposes. Cities supports sufficient, stable and equitable funding for local libraries to FF-31. Increasing Safe School Levy allow for local budget decision making. Authority The League supports changes to the Issue: Strong partnerships between schools library maintenance of effort by the and local law enforcement are critical to Legislature as follows: school safety. Police School Resource a) The required annual payment should Officers (SROs) are valued professionals in reflect the amount the city itself pays school communities and provide support, toward maintenance, upkeep, and safety and security for students, staff and the capital improvements to the library in public. Further, SROs can provide regular that year. opportunities for informal, positive interactions between students and police b) If the MOE reduction in Minn. Stat. § personnel. 275.761 is restored to a level at least as high as the 2010 level, it should be Under Minn. Stat. § 126C.44, the Safe phased in over three years. Schools Levy allows school districts to levy for costs associated with student and staff c) Any relief provided to the county safety based on student enrollment numbers. MOE requirement should not result in Some eligible expenses include police additional funding requirements to liaison services; drug abuse prevention cities. programs; gang resistance education The League also supports the creation of training; school security; crime prevention; general authority for library systems to and implementation of student and staff create library taxing districts and the safety measures. authority for municipal libraries to Using Safe Schools Levy authority, local charge non-residents for membership school boards may raise additional resources and/or other services without the loss of for school safety and security. Almost every any State or Federal aids. Minnesota school district currently levies the full amount of $36 per pupil. This amount does not cover the full cost of providing this important service, and local Council Packet Page Number 332 of 476 J3, Attachment 2 law enforcement agencies are not being fully FF-33. Street Reconstruction Bond compensated for providing SROs. Approval Response: The League supports Issue: Under Minnesota law, financing the increasing the maximum Safe Schools maintenance of streets can be a challenge for Levy from $36 per pupil up to $60 per city councils. Minn. Stat. § 475.58 subd. 3b, pupil to ensure schools and communities authorizes a city council, by two-thirds vote, are able to continue providing safe to approve the issuance of bonds to finance schools programming. street reconstruction or bituminous overlays without voter approval. The two-thirds FF-32. Equitable Funding of council approval requirement is further Community Education Services subject to a reverse referendum process Issue: Under Minn. Stat. § 124D.20, school whereby a number equal to five percent of districts are authorized to levy for those voting in the last municipal general community education programs that can election can petition for a referendum to include youth recreational activities. approve the issuance of the bonds. However, state statute limits the total Response:Street maintenance is one of amount of revenue that can be raised by the the essential functions of cities in school district to fund community education Minnesota. The laws governing issuance programs and this limit has not been of bonds to maintain streets should be sufficiently increased in recent years. In amended to allow the approval of the many instances, cities participate in the bonds by a simple majority of the council. funding of these programs and with the The existing reverse referendumprocess statutory limit on the amount school districts assures that taxpayers could trigger a can levy, the increased cost of these referendum on the issuance of bonds if programs is increasingly falling on cities and they can meet the five percent petition their property taxpayers. In areas where the threshold. school district is significantly larger than the city, the burden of funding these programs is FF-34. Special Assessment Election falling disproportionately on city taxpayers Requirements while the programs benefit the entire school Issue:City Councils are best situated to district. In 2023 the legislature increased the recognize the need to replace infrastructure basic community education revenue and when to schedule the replacement allowance from $5.42 per capita to $6.35 per projects. Cities are often only able to carry capita beginning in fiscal year 2025. out these and other vital improvements by Response: The League of Minnesota issuing bonds and assessing some amount of Cities supports a periodic increase in the the cost to property owners. community education revenue Issuing bonds to finance most local authorization for school districts. improvement projects requires a special Increasing the amount of the community election unless the city can legally collect at service revenue available to school least 20% of the project costs through districts would provide a steady source of special assessments. As a legal limit, cities revenue, which would be assessed against cannot collect special assessments from any all properties in the school district, not property greater than the increase in fair just against properties in the city. market value bestowed to that property by the improvement (the "special benefit test"). Council Packet Page Number 333 of 476 J3, Attachment 2 On occasion, the increase in property values Response:The League of Minnesota as a result of the improvement can fail to Cities supports periodic modifications to add up to the 20% threshold necessary to the homestead market value exclusion finance projects without requiring a special program to increase the benefit of the election. exclusion to qualifying homeowners. Changes to the homestead market value Response: In order to facilitate the exclusion should be considered in concert financing of public infrastructure with the impact of the homestead credit projects, the threshold for requiring voter refund program approval for issuance of improvement bonds under Minn. Stat. 429.091 should FF-36. State Fund for Non-weather- be reduced to 15 percent. This change related Disaster/Catastrophe Relief would provide more flexibility for cities Issue: Municipalities and other with their governmental units are at risk of construction/bonding/assessment experiencing disastrous events affecting decisions and may be more likely to their communities beyond natural disasters, survive a challenge while still providing whether from civil disturbances, industrial value to the property owner. catastrophes, or other disastrous events. FF-35. Homestead Market Value Such events may result in unbudgeted and Exclusion unfunded costs related to clean-up, repairs, “social” and economic recovery, Issue: In 2011, the legislature repealed the infrastructure restoration, rebuilding existing homestead market value credit structures, and other damage repair which program and replaced it with a new may not be qualify for relief from Federal Homestead Market Value exclusion (Minn. resources. While some limited State Stat. § 273.13, subd. 35). Recent trends in resources may be available, cities do not residential home values significantly have the resources to respond to such reduced the value of the exclusion for many disasters. homeowners. According to the Minnesota Association of Realtors, in 2011, the median Response: The League of Minnesota sales price of homes in Minnesota, was Cities supports the creation of a state $135,000, which received an exclusion of fund to assist local communities in repair $25,090 or nearly 19 percent of the total and response to these disastrous events value of the home. In 2023, the median sales with the ultimate goal of preserving jobs, price was $355,000, which received an industries, and communities. exclusion of $5,290, or just 1.5 percent of FF-37. Federal Support for the total value of the home. In response to Emergency Preparedness, Recovery these rising home values, in 2023 the and Response legislature modified the exclusion to equal 40% of the first $95,000 of market value. Issue:There have been calls for the For homesteads valued between $95,000 and significant reform or elimination of the $517,200, the exclusion equals $38,000 Federal Emergency Management Agency minus 9% of the value over $95,000. (FEMA) by administration officials and Homesteads valued at $517,200 or more are members of Congress. Officials have raised not eligible to receive the exclusion. the prospect of reducing federal resources that support emergency preparedness or Council Packet Page Number 334 of 476 J3, Attachment 2 disaster recovery to states and local development without the ability for cities to jurisdictions. The administration has assess a fee or land dedication for the new convened a council to recommend changes. residential units despite the increased demand for parks and green spaces from the Response: The League of Minnesota new residential units. Cities supports ongoing federal funding Response: The legislature should preserve for emergency planning and preparedness existing city authority to require and disaster recovery. The League parkland dedication and park dedication supports the continuance of grants fees and amend Minn. Stat. § 462.358 to available to cities for purposes such as allow all cities the option to require a building resilience infrastructure and reasonable portion of land or park urban area security. The League supports dedication fee on new housing units and maintaining current fiscal year 2025 new commercial and industrial thresholds for a Stafford disaster development without the requirement declaration and a federal contribution of that land be subdivided. 75 percent of recovery cost. FEMA must continue to be the primary source of FF-39. Fundraising Authority nation-wide response doctrine, to Issue: Recent years have seen an increase in capitalize on hard-won lessons from cities looking to find ways to accept disasters over the last thirty years. donations for specific projects that FF-38. Park Dedication community members, non-profit organizations, or businesses have interest in. Issue: For decades, Minnesota cities have Though there is authority for cities to accept been permitted in Minnesota Law Chapter gifts under Minn. Stat. § 465.04, an opinion 462 to adopt ordinances that require a from the Office of the State Auditor has reasonable portion of land be dedicated to stated that cities lack the authority to the public, or to impose a dedication fee on fundraise. new housing units and new commercial and industrial development in a city for parks. There are specific situations in which city As a result, cities across the state have been personnel can solicit contributions. Under able to create parkland that provides Minn. Stat. § 465.90, firefighters are intrinsic environmental, aesthetic, and authorized to solicit charitable contributions recreation benefits to cities and their from motorists for a charitable organization. residents, which enhances property values, Under Minn. Stat. § 471.198, a city may increases municipal revenue, and supports authorize officials and staff to solicit local economic development. However, contributions for the purposes of funding current law only permits cities aside from National Night Out or any event or purpose Minneapolis and St. Paul to collect parkland that the governing body determines will dedication only on subdivided land, which foster positive relationships between law prohibits a city from collecting park enforcement and the community. dedication or fees for redevelopment of Many cities desire the ability to fundraise existing parcels that does not require for equipment for firefighter and EMS subdivision of the property, but still services, libraries, or special projects such as generates need and impact for city parks. parks and trails. Authorizing cities to more Cities with built out environments are broadly solicit and accept charitable particularly disadvantaged as new residential donations for projects in which there is units are added via redevelopment or infill Council Packet Page Number 335 of 476 J3, Attachment 2 broad community support would allow the 471 to authorize cities to solicit charitable funding for desired projects without donations for the purpose of projects that requiring an increase in property taxes or have generated community interest such seeking a local sales tax. as parks, trails, community events, and community centers or resources needed Response: The League of Minnesota for city services. Cities supports amending Minn. Stat. § Council Packet Page Number 336 of 476 J3, Attachment 2 Mfbhvf!pg!Njooftpub!Djujft 256!Vojwfstjuz!Bwfovf!Xftu Tu/!Qbvm-!NO!66214.3155 UFM;!)762*!392.2311 )911*:36.2233 GBY;!)762*!392.23:: XFC;!xxx/mnd/psh Council Packet Page Number 337 of 476 J3 Attachment 3 Legislative Policies January 2026 Council Packet Page Number 338 of 476 J3 Attachment 3 Metro Cities Association of Metropolitan Municipalities 145 University Ave. W. St. Paul, Minnesota, 55103-2044 Phone: (651) 215-4000 Website: www.MetroCitiesMN.org Fax: (651) 281-1299 X: @MetroCitiesMN Ms. Patricia NaumanMr. Mike Lund Ms. AniaMcDonnell Ms. Jennifer Dorn ExecutiveDirectorGov’t Relations SpecialistGov’t RelationsSpecialist Office Manager (651)215-4002(651)215-4003(651)215-4001(651)215-4004 Patricia@MetroCitiesMN.org Michael@MetroCitiesMN.orgAnia@MetroCitesMN.org Jennifer@MetroCitiesMN.org Council Packet Page Number 339 of 476 J3 Attachment 3 TABLE OF CONTENTS Municipal Revenues & Taxation 1 MR-1StateandLocal Fiscal Relationship2 MR-2RevenueDiversificationandAccess MR-3 Restrictions on Local GovernmentBudgets MR-4 Budget and FinancialReporting Requirements4 MR-5 Local Government Aid (LGA)4 MR-6 State Property Tax Relief Programs5 MR-7 PropertyValuation Limits/Limited Market Value 5 MR-8 Market Value Homestead Exclusion Program 5 MR-9 Metropolitan Area Fiscal Disparities Program 6 MR-10 State Property Tax 6 MR-11 Class Rate TaxSystem 7 MR-12 Regional FacilityHost Communities7 MR-13 Sales Tax onLocalGovernmentPurchases7 MR-14 City Revenue StabilityandFund Balance 8 MR-15 Public Employees’ Retirement Association (PERA) 8 MR-16 State ProgramRevenue Sources 9 9 MR-17 Post-Employment Benefits MR-18 Health Care InsurancePrograms 9 MR-19 State Budget Stability10 MR-20 Taxation ofElectronicCommerce 10 MR-21 Payments for Services to Tax Exempt Property 11 MR-22 Proceeds fromTaxForfeited Property11 MR-23 Deputy Registrars 11 MR-24 Special Assessments12 Council Packet Page Number 340 of 476 J3 Attachment 3 GeneralGovernment13 GG-1 Mandates, Zoning & LocalAuthority 14 GG-2CityEnterpriseActivities14 GG-3 WeaponsonCityProperty 14 GG-4 911 Telephone Tax 15 GG-5 800 MHz Radio System 15 GG-6 Building Codes 15 GG-7 Administrative Fines 16 GG-8 Residential Programs1 GG-9 Annexation 1 GG-10 1 Statewide Funding Sources for Local Issues with Regional Impact GG-11 Urban Forest Management Funding 1 GG-12 PollinatorHabitat Resources 1 GG-13 Regulation of Harmful Substances and Products 19 GG-14 WaterSupply GG-15 Private Well DrillingRestriction Authority2 GG-16 Organized Waste Collection 2 GG-17 Franchise Fees, Accountability and Cost Transparency 21 GG-18 Election Administration 22 GG-19 Regulation of Massage Therapists2 GG-20 Peace Officer Arbitration Reform 23 GG-21 PublicSafety Training and Resources 23 GG-22 Copper and Other MetalTheft 24 GG-23 Emergency Medical Services 24 GG-24 Race Equity2 GG-25 Adult-Use Cannabis 25 GG-26StreetRacing and Carjacking26 Council Packet Page Number 341 of 476 J3 Attachment 3 GG- Public Notice Requirements 2 GG- Contracting and Purchasing 2 Transportation2 Transportation Policies and Funding Introduction TP-1 Road and Bridge Funding TP-2RegionalTransit System 3 TP-3TransitFinancing3 TP-4Street ImprovementDistricts 3 TP-5Highway and Bridge Turn Backs & Funding 3 TP-6“3C” Transportation Planning Process: Elected Officials’ Role 3 TP-7Electronic Imaging forEnforcement of Traffic Laws 3 TP-83 Transportation Network Companies and Alternative Transportation Modes TP-9AirportNoise Mitigation 3 TP-10 Funding for Non-Municipal State Aid(MSAS) City Streets 3 TP-11 County StateAid Highway(CSAH) DistributionFormula 3 TP-12 3 Municipal Input/Consent forTrunkHighways and County Roads TP-13PlatAuthority3 TP-14MnDOTMaintenanceBudget3 TP-15 Transit Taxing District 3 TP-16 CompleteStreets3 TP- Noise Wall Voting3 TP- Project Cost Participation3 Council Packet Page Number 342 of 476 J3 Attachment 3 Housing & Economic Development HED-1 toHED-10Introduction HED-1City Role in Housing HED-2City Role in Affordable and LifeCycle Housing 4 HED-3InclusionaryHousing4 HED-4Metropolitan CouncilRole inHousing 4 HED-5Allocation of AffordableHousing Need4 HED-6Housing Policy & Production Survey 4 HED-7StateRolein Housing4 HED-8Federal Role in Affordableand Workforce Housing HED-9 Vacant, Boarded,andForeclosed Propertiesand Properties at Risk HED-10 Housing Ordinance Enforcement HED-11 to HED-1 5 Introduction HED-11 Economic Development 5 HED-12 Redevelopment 5 HED- Adaptive Reuse 5 HED-14 Workforce Readiness 5 HED-15 Tax Increment Financing (TIF) 5 HED-16 Eminent Domain 5 HED-17 Community Reinvestment Business IncentivesPolicy HED-18 Broadband Technology HED-19 HED-20 City Rolein Environmental Protection and Sustainable Development HED-21 Impaired Waters Council Packet Page Number 343 of 476 J3 Attachment 3 Metropolitan Agencies 6 6 MA-1GoalsandPrinciplesforRegionalGovernance 6 MA-2 Regional Governance Structure MA-36 Comprehensive Analysis and Oversight of Metropolitan Council MA-4FundingRegionalServices6 MA-5 RegionalSystems 6 MA-6 Regional Water SupplyPlanning 6 MA-7 Review of LocalComprehensive Plans 6 MA-8 Comprehensive Planning Process MA-9 Comprehensive Planning Schedule MA-10 Local Zoning Authority MA-11 Regional Growth MA-12 Natural Resource Protection MA-13 Inflow and Infiltration(I/I) MA-14 Sewer Availability Charge (SAC) 7 MA-15 Funding Regional Parks & OpenSpace 7 MA-16 Livable Communities 7 MA-17 Density 7 MA-18 Comprehensive Plans andEnvironmentalReview7 CommitteeRoster7 MunicipalRevenues & Taxation 7 Transportation & GeneralGovernment 7 Housing & EconomicDevelopment Metropolitan Agencies Council Packet Page Number 344 of 476 J3Attachment 3 MunicipalRevenues& Taxation Council Packet Page Number 345 of 476 J3 Attachment 3 MR-1 STATEANDLOCALFISCALRELATIONSHIP A functional state and local fiscal relationship must emphasize adequacy, equitability, sustainability and accountability for public resources and communication among the state, cities, and public. A functional partnership also emphasizes collaboration and partnership between the state and local units of government. City services are traditionally funded through property taxes, fees, and state aids. Increasingly, cities are bearing more costs for services that have historically been the responsibility of the state. Metro Citiessupports a state and local fiscal partnership that emphasizes the following: Financial stewardship and accountability for public resources that emphasizes efficiencies in service delivery and effective communication among the state, local units of government, and the public. Reliable and adequate revenue sources including the property tax and local government aids, and dedicated funds to meet specific local needs. Metro Cities opposes diverting dedicated funds or local aids to balance state budgets. Sufficient revenue sources available to cities that allow cities to address local needs and citizens to receive adequate services at relatively similar levels of taxation, and that maintain local, regional, and state economic vitality and competitiveness. Adequate state funding to cities to address mandates enacted by the state, and flexibility for local governments in implementing state mandates to minimize local costs. Metro Cities supports a reinstatement of the cannabis aid enacted when adult-use cannabis was legalized in 2023 but repealed in 2025, to assist cities with costs associated with local implementation of the new law. Adequate and timely notification regarding new legislative programs or modifications to existing programs or policies to allow cities time to plan for implementation and manage any effects on local budgeting processes. Support for cooperative purchasing arrangements between the state and local units of government. Such arrangements must be structured to be able to address unexpected delays or other challenges in the procurement of goods, so that any disruptions to local government operations and services that may result from such delays are minimized. State officials should seek local feedback in the vetting of product vendors. The concept of performance measuring, but opposition to using state established measurements to determine the allocation of state aids to local governments or restrict the ability of local governments in establishing local budgets and levies. Council Packet Page Number 346 of 476 J3 Attachment 3 MR-2 REVENUEDIVERSIFICATIONANDACCESS Metro Cities supports a balanced and diversified revenue system that acknowledges diverse city characteristics, needs and capacities and allows for greater stability in revenues. Metro Cities supports the ability of a city to impose a local sales tax for public improvements and capital replacement costs, including but not limited to public libraries, parks and trails, community, convention and civic centers, transportation infrastructure, municipal buildings, and public safety facilities without the need for special legislation. Metro Cities supports changes to state laws governing local taxes to include the following: A statutory clarification to allow a referendum to occur at any November election or special election. A clarification of laws governing separate ballot questions for each proposed local project or allowing a city to combine projects into a single question, to avoid voter confusion. A repeal of the prohibition on imposing a local sales tax for one year from the expiration of an existing local sales tax. Changes to laws on the local sales tax process to allow a city flexibility to modify a ballot question to increase the amount of the collected tax and extend the duration of tax to cover unanticipated cost increases. The Legislature should recognize equity considerations involved with local sales taxes and continue to provide local government aid to cities that have high needs, overburdens and/or low fiscal capacity. Metro Cities supports a modification to laws governing local lodging taxes to allow cities to impose up to a five percent lodging tax, and the ability of cities to modify the uses of revenues to meet local needs. Metro Cities supports current laws providing for municipal franchise fee authority and opposes statutory changes such as reverse referendum requirements or other constraints that would reduce local flexibility for establishing, amending, or renewing franchise fees and interfere with local public processes and goals for establishing such fees. MR-3 RESTRICTIONS ON LOCAL GOVERNMENT BUDGETS Metro Cities opposes levy limits, reverse referenda, super majority requirements for levy and valuation freezes, or other restrictions on local government budgeting and taxing processes. Such restrictions undermine local budgeting and taxing processes, planned growth, and the relationship between locally elected officials and their residents by allowing the state to decide the appropriate level of local taxation and services, despite varying local conditions and circumstances. Council Packet Page Number 347 of 476 J3 Attachment 3 MR-4 BUDGET AND FINANCIAL REPORTINGREQUIREMENTS State laws require cities to prepare and submit or publish numerous budget and financial reports. These requirements often create significant costs to cities, and some requirements result in duplication. Additional reporting requirements should have a clearly defined statement of public purpose and need that is not covered under existing requirements and should balance needs for additional information with the costs of compiling and submitting the information. Considering the number of existing reporting requirements, Metro Cities supports reducing the number of mandated reports. Metro Cities supports efforts to consolidate municipal government financial reporting requirements in the Office of the State Auditor, including an electronic submission alternative to any remaining paper filing requirements, and to authorize the use of web publication where newspaper publication is currently required. MR-5 LOCALGOVERNMENTAID(LGA) The state’s prosperity and vitality depend significantly upon the economic strength of the metropolitan region, and cities within the region play critical roles in fostering the economic development, job creation and business expansion that underpin the state’s economic health. Metro Cities supports the city Local Government Aid (LGA) program as a means of ensuring cities remain affordable places to live and work while meeting the public service needs of residents and businesses. Metro Cities supports updates to the LGA formula factors and an increase in the program appropriation consistent with recommendations by a work group of city associations. Recommended updates will ensure the LGA program adequately addresses city needs. To ensure appropriation levels are adequate to meet program objectives, Metro Cities supports increasing the LGA appropriation to address cities’ unmet need as defined by the LGA formula as well as increases in the LGA appropriation to account for inflation. Metro Cities supported the appropriation increase and updates to the LGA program passed by the 2023 Legislature. Many metropolitan cities do not receive LGA. Future reviews of the LGA program should be conducted every five years or earlier and should consider the needs and capacities of cities not receiving aid under the existing LGA program and formula. Metro Cities supports formula-based allocations for increases to the LGA appropriation, and opposes freezes of the LGA appropriation, reductions of LGA for balancing state budget deficits, and diversions of the LGA appropriation to other purposes or entities. Metro Cities opposes artificial limits or reductions that single out specific cities and further opposes using LGA as financial leverage to influence activities and policy decisions at the local level. Council Packet Page Number 348 of 476 J3 Attachment 3 MR-6 STATE PROPERTYTAXRELIEFPROGRAMS Metro Cities supports state funded property tax relief programs paid directly to homestead property taxpayers such as the “circuit breaker” program and enhanced targeting for special circumstances. Metro Cities also supports the renter’s credit program. Metro Cities supports an analysis of property tax relief programs to determine their effectiveness and equity in providing property tax relief to individuals and families across the state. Metro Cities supports efforts by the Minnesota Department of Revenue to expand outreach and notification efforts about state property tax relief programs to homeowners, and notifications to local units of government to support such efforts. Metro Cities also supports legislative modifications to make tax relief payments to taxpayers automatic. Metro Cities supports the use of the Department of Revenue’s Voss database to link income and property values, and the consideration of income relative to property taxes paid in determining eligibility for state property tax relief programs. Updates to the database should occur in a timely manner, with data reviewed periodically to ensure the database’s accuracy and usefulness. MR-7 PROPERTY VALUATION LIMITS/LIMITED MARKET VALUE Metro Cities opposes the use of artificial limits in valuing property at market for taxation purposes since such limitations shift tax burdens to other classes of property and create disparities between properties of equal value. MR-8 MARKET VALUE HOMESTEAD EXCLUSION PROGRAM The Market Value Homestead Exclusion Program (MVHE) provides property tax relief to qualifying homesteads, through reductions in property tax values, which shifts property taxes within jurisdictions. The MVHE replaced a former Market Value Homestead Credit Program, which provided credits on local government tax bills to qualifying properties, with reimbursements provided by the state to local governments. Metro Cities opposes restoration of the former Market Value Homestead Credit, as reimbursements to local governments were inconsistent, and encourages further study of the exclusion program, with input by city officials, to determine the program’s overall efficacy and its effects on local tax bases. Due to the recent rapid increase in home values, Metro Cities supported 2023 modifications to the homestead market value exclusion program to increase the benefit of the exclusion to qualifying homeowners and will continue to support future periodic modifications for qualifying homeowners. Changes to the homestead market value exclusion should be considered in concert with the impact of the homestead credit refund program. Council Packet Page Number 349 of 476 J3 Attachment 3 MR-9 METROPOLITAN AREA FISCALDISPARITIESPROGRAM TheMetropolitan Area Fiscal Disparities Program, enacted in 1971, was created for the purposes of: providing a way for local governments to share in the resources generated by the growth of the metropolitan area without removing existing resources; promoting orderly development of the region by reducing the impact of fiscal considerations on the location of business and infrastructure; establishing incentives for all parts of the area to work for the growth of the area as a whole; helping communities at various stages of development; and encouraging protection of the environment by reducing the impact of fiscal considerations to ensure protection of parks, open space and wetlands. Metro Cities Metro Cities supports the Fiscal Disparities Program. Metro Cities opposes any diversion from the fiscal disparities pool to fund specific state, regional or local programs, goals or projects as such diversions contradict the purposes of the program. Legislation that would modify or impact the fiscal disparities program should only be considered within a framework of comprehensive reform efforts of the state’s property tax, aids, and credits system. Any proposed legislation that would modify or impact the fiscal disparities program must be evaluated utilizing the criteria of fairness, equity, stability, transparency, and coherence in the treatment of cities and taxpayers across the metropolitan region and must continue to serve the program’s intended purposes. Metro Cities opposes legislation that would allow for capturing and pooling growth in residential tax capacity to fund specific programs or objectives. Further studies or task forces to consider modifications to the fiscal disparities program must include participation and input from metropolitan local government representatives. MR-10 STATE PROPERTY TAX The state levies a property tax on commercial/industrial and cabin property. Since cities’ only source of general funds is the property tax, Metro Cities opposes extension of the state property tax to additional classes of property. Metro Cities opposes using the state property tax to fund specific programs or objectives generally funded through state income and sales tax revenue. Council Packet Page Number 350 of 476 J3 Attachment 3 To increase transparency, Metro Cities supports efforts to have the state provide information on the property tax statement regarding the state property tax. Metro Cities opposes exempting specific classes of property under the tax as such exemptions shift the costs of the tax onto other classes of property. MR-11CLASSRATETAXSYSTEM Metro Cities opposes elimination of the class rate tax system or applying future levy increases to market value since this further complicates the property tax system. MR-12 REGIONALFACILITY HOST COMMUNITIES Municipalities hosting regional facilities such as utilities, landfills or aggregate mining incur costs and effects such as environmental damage or lost economic development opportunities. Communities should be compensated for the effects of facilities that provide benefits to the region and state. Metro Cities supports efforts to offset the negative effects of these facilities and activities on host communities. Metro Cities would prefer that municipalities be allowed to collect a host fee that may be adjusted when state decisions affect those fees. MR-13 SALES TAX ON LOCAL GOVERNMENT PURCHASES Metro Cities supported the 2013 reinstatement of the sales tax exemption for purchases of goods and services made by cities. This reinstatement does not apply to all local government purchases. To ensure citizens receive the full benefit of this exemption, the law should treat purchases of all local government units the same, including purchases made by special taxing districts, joint powers entities, or any other agency or instrumentality of local government. Metro Cities supports simplifying the process on the exemption for construction materials that is complex and cost ineffective or converting the process to a refund program. Metro Cities supported the law enacted in 2021 that exempts construction materials purchased to construct public safety facilities from state sales tax. Metro Cities supports granting an extension of the motor vehicle sales tax exemption to all municipal vehicles that are used for general city functions and are provided by governmental entities. Currently, only certain vehicles, including road maintenance vehicles purchased by townships, and municipal fire trucks and police vehicles not registered for use on public roads, are exempt from the motor vehicle sales tax (MVST). Council Packet Page Number 351 of 476 J3 Attachment 3 MR-14 CITY REVENUE STABILITY AND FUND BALANCE Metro Cities opposes state attempts to control or restrict city fund balances, or to use city fund balances as a rationale for reducing state aids or property tax payment delays. These funds are necessary to maintain fiscal viability, meet unexpected or emergency resource needs, purchase capital goods and infrastructure, provide adequate cash flow and maintain high level bond ratings. MR-15PUBLICEMPLOYEES’RETIREMENTASSOCIATION(PERA) Metro Cities supports employees and cities sharing equally in the cost of necessary contribution increases and a sixty percent employer/forty percent employee split for the PERA Police and Fire Plan. Metro Cities also supports state assistance to local governments to cover contribution burdens placed on cities over and above contribution increases required by employees. Cities should receive sufficient notice of increases so that they may take them into account for budgeting purposes. Metro Cities opposes benefit improvements for active employees or retirees until the financial health of the PERA General Plan and PERA Police and Fire Plan are restored. Metro Cities supports modifications to help align PERA contributions and costs, and reduce the need for additional contribution increases, including a modification of PERA eligibility guidelines to account for temporary, seasonal, and part-time employment situations, the use of pro-rated service credit and a comprehensive review of exclusions to simplify eligibility guidelines. Further employer contribution rate increases should be avoided until other cost alignment mechanisms are considered. Metro Cities supports cities and fire relief associations working together to determine the best application of State Fire Aid. Flexibility in the application of aid, where combination departments exist, will ensure that fire services can be provided in the most cost- effective means possible. Regarding police pension contributions, Metro Cities supports a proactive review of factors contributing to the financial status of police and fire pension plans, to ensure that structural adjustments are considered in conjunction with potential increases in employee and employer contribution rates. Specifically, an area that could be considered is contractual overtime impacts on pension levels. In recent years, the number of public safety employees seeking duty disability determinations through the Public Employees Retirement Association (PERA) and making workers’ compensation claims for line-of-duty injuries has accelerated. The current system for processing and addressing duty disability benefits can be incompatible with the goal of restoring good health and returning employees to work Council Packet Page Number 352 of 476 J3 Attachment 3 and the fiscal implications of the increasing number of claims are unsustainable for employers and, ultimately, taxpayers. Metro Cities supports legislative efforts by the League of Minnesota Cities to address issues associated with public safety duty disability prevention, best practices and costs. Metro Cities also supports ongoing work by cities and other stakeholders to identify ways to enhance public safety physical and mental wellness, to gather empirical evidence related to treatability of mental injuries, and to developing tools, best practices, resources and guidance for identifying, preventing and responding to post-traumatic-stress-disorder (PTSD). Ongoing funding will be needed to continue addressing these challenges. Metro Cities further supports full state funding for the Public Safety Officer Benefit account that reimburses employers for continued health insurance to police officers and firefighters injured in the line of duty, funding to reimburse local governments for providing paid time off to public safety employees who experience work related trauma and/or are seeking treatment for a mental injury, and funding for trauma training, early intervention, and mental health treatment. Metro Cities supports reinstating the PERA aid that was paid to local units of government to help address increased employer contribution costs. MR-16 STATE PROGRAM REVENUE SOURCES Metro Cities opposes any attempt by the state to finance programs of statewide value and significance, that are traditionally funded with state revenues, with local revenue sources such as municipal utilities or property tax mechanisms. Statewide programs serve important state goals and objectives and should be financed through traditional state revenue sources such as the income or sales tax. Metro Cities further opposes substituting traditionally state funded programs with funding mechanisms that would disparately affect taxpayers in the metropolitan area. MR-17 POST-EMPLOYMENT BENEFITS Metro Cities supported statutory changes that allow local governments to establish trusts from which to fund post-employment health and life insurance benefits for public employees, with participation by cities on a strictly voluntary basis, in recognition of differing local needs and circumstances. Cities should retain the ability to determine the level of post-employment benefits to employees. MR-18 HEALTH CARE INSURANCE PROGRAMS Metro Cities supports legislative efforts to control health insurance costs but opposes actions that undermine local flexibility to manage rising insurance costs. Council Packet Page Number 353 of 476 J3 Attachment 3 Metro Cities encourages a full examination of the rising costs of health care and the impacts on city employers and employees. Metro Cities also supports a study of the fiscal impacts to both cities and retirees of pooling retirees separately from active employees. MR-19 STATE BUDGET STABILITY Metro Cities supports a state revenue system that provides for stability, flexibility, and adequacy, reduces volatility in state revenues and improves the long- term balance of state revenues and expenditures. Metro Cities supports a statutory budget reserve minimum adequate to manage risks and fluctuations in the state’s tax system and a cash flow reserve account of sufficient size so that the state can avoid short- term borrowing to manage cash flow fluctuations. Metro Cities supports the principle of representative democracy and opposes including tax and expenditure limits in the state constitution, as well as new constitutional amendments, as these limit flexibility by the Legislature and local governments to respond to unanticipated critical needs, emergencies, or fluctuating economic situations. Metro Cities supports an examination of the property tax system and the relationships between state and local tax bases, with an emphasis on state budget cuts and effects on property taxes. State budget deficits must be balanced with statewide sources and must not further reduce funding for property tax relief programs and aids to local governments that result in local governments bearing more responsibility for the costs of services that belong to the state. MR-20 TAXATION OF ELECTRONIC COMMERCE Metro Cities supports efforts to develop a streamlined sales and use tax system to simplify sales and use tax collection and administration by retailers and states. Metro Cities supports policies that encourage remote retailers to collect and remit state sales taxes in states that are complying with the Streamlined Sales and Use Tax Agreement. Metro Cities opposes legislation that allows accommodation intermediaries such as online travel companies a tax exemption that terminates obligations to pay hotel taxes to state and local governments or otherwise restricts legal actions by states and localities. The Legislature in 2011 clarified that these services are subject to state sales tax. Metro Cities supports statutory changes to further clarify that all lodging taxes, whether administered by the state or locally, apply to total charges, including charges for services provided by accommodation intermediaries. Council Packet Page Number 354 of 476 J3 Attachment 3 MR-21 PAYMENTS FOR SERVICES TO TAX EXEMPT PROPERTY Metro Cities supports city authority to collect payments from tax exempt property owners to cover costs of services to those entities, similar to statutory authority for special assessments. Metro Cities opposes legislation that would exempt nonprofit entities from paying user fees and service charges. MR-22PROCEEDSFROMTAXFORFEITEDPROPERTY Metro Cities supports changes to state laws governing the proceeds for tax forfeited properties. Currently, counties can recover administrative costs related to a property before other allocations are made, and the law allows for the county to recoup a percentage of assessment costs once administrative costs are allocated. The result is often no allocation or a very low allocation, and usually insufficient level of proceeds available for covering special assessments, unpaid taxes, and fees to cities. State processes addressing tax-forfeited properties can have implications for local land use plans and requirements and can result in unexpected and significant fiscal impacts on local communities. The current process also does not require the repayment of unpaid utility charges or building and development fees. Metro Cities supports statutory changes that balance repayment of unpaid taxes and assessments, utility charges and other fees and that more equitably allocates the distribution of proceeds between counties and cities. MR-23 DEPUTY REGISTRARS The state Vehicle Title Registration System (VTRS), enacted in 2019, was intended to improve reliability and accuracy in the provision of driver and vehicle services. However, some system changes have created challenges that threaten the continued viability of local registrar offices. Metro Cities supports state funding to compensate local deputy registrars for unanticipated, increased costs associated with the MNDRIVE system. As the state works to identify efficiencies in the vehicle registration process and system, policy makers must consider the effects of changes on the financial viability of deputy registrars resulting from decreases in transaction fees collected by local registrars. The perspectives from local deputy registrars should have increased weight in discussions regarding future MNDRIVE system enhancements. Metro Cities supports increases to existing transaction fee levels that are set by state law, to ensure that local deputy registrars can sufficiently function and meet continually evolving local registrar service needs and address any necessary modifications to registrar operations to ensure these services can be provided safely to the public. Metro Cities further supports sharing revenue from mail-in and online transactions between Driver and Vehicle Services (DVS) and deputy registrars. Council Packet Page Number 355 of 476 J3 Attachment 3 MR-24 SPECIALASSESSMENTS When property owners challenge special assessments based on application of the special benefit test, some courts have interpreted “benefits received” to mean the one year increase in property value that is directly attributable to a construction project. There is currently no consistency between state laws and rulings by some courts on the term “benefits received”. Metro Cities supports modifications to state laws governing special assessments for construction projects or other improvements arising from legislative authority to clarify the definition of “benefits received”. The modified definition should more closely align with how special assessments are calculated and recognizes that the benefit of the improvement to a property may be realized over time and not within one year. Council Packet Page Number 356 of 476 J3Attachment 3 GeneralGovernment Council Packet Page Number 357 of 476 J3 Attachment 3 GG-1 MANDATES, ZONING & LOCAL AUTHORITY To serve their local residentsand communities, city officials must have sufficient local control and decision-making authority. Metro Cities supports local decision- making authority and opposes statutory changes that erode local authority and decision making. Minn. Stat. § 462.357, subd. 1, provide cities authority to regulate and set local ordinances for zoning. Metro Cities supports existing state laws that provide for this authority. Metro Cities supports statutory changes that give local officials greater authority to approve or deny variances to allow flexibility in responding to the needs of the community. Metro Cities also supports the removal of statutory barriers to uniform zoning ordinance amendment processes for all cities, regardless of city size classification. Metro Cities opposes the imposition of legislative mandates that increase local costs without a corresponding state appropriation or funding mechanism. Unfunded mandates potentially increase property taxes and impede cities’ ability to fund traditional service needs. To allow for greater collaboration and flexibility in providing local services, Metro Cities encourages the removal of barriers to coordination between cities and other units of government or entities. GG-2 CITY ENTERPRISE ACTIVITIES Creation of an enterprise operation allows a city to provide a desired service while maintaining financial and management control. The state should refrain from infringing on this ability to provide and manage services for the benefit of a local community and residents. Metro Cities supports cities having authority to establish city enterprise operations in response to community needs, local preferences, or state mandates, or that help ensure residents’ quality of life. GG-3 WEAPONS ONCITY PROPERTY Cities should be allowed to prohibit handguns and other weapons in city-owned buildings, facilities, and parks and to determine whether to allow permit-holders to bring guns into municipal buildings, liquor stores, city council chambers and city sponsored youth activities. It is not Metro Cities’ intention for cities to have the authority to prohibit legal weapons in parking lots, on city streets, city sidewalks or on locally approved hunting land. Metro Cities supports local control to prohibit or restrict the possession of dangerous Council Packet Page Number 358 of 476 J3 Attachment 3 weapons, ammunition, or explosives on local government-owned or leased buildings and land. GG-4 911 TELEPHONE TAX Public safety answering points (PSAPs) must be able to continue to rely on state 911 revenues to pay for upgrades and modifications to local 911 systems, maintenance and operational support, and dispatcher training. Metro Cities supports state funding for technology and training necessary to provide the number and location of wireless and voice over internet protocol (VoIP) calls to 911 on computer screens and transmit that data to police, fire and first responders. GG-5 800 MHZ RADIO SYSTEM Metro Cities urges the Legislature to provide cities with the financial means to obtain required infrastructure and subscriber equipment (portable and mobile radios) as well as funding for operating costs, since the prime purpose of this system is to allow public safety agencies and other units of government the ability to communicate effectively. Metro Cities supports the work of the Metropolitan Emergency Services Board (previously the Metropolitan Radio Board) in implementing and maintaining the 800 MHz radio system so long as cities are not forced to modify their current systems or become a part of the 800 MHz Radio System unless they so choose. GG-6 BUILDINGCODES The State Building Code (SBC) sets statewide standards for the construction, reconstruction, alteration, and repair of buildings and other structures governed by the code. A statewide building code provides many benefits, with safety as a primary consideration, including uniformity of construction standards in the building industry, and consistency in code interpretation and enforcement. Metro Cities supports adopting and amending the State Building Code through the rulemaking process and opposes legislative modifications absent unusual or extraordinary circumstances. Metro Cities supports an equitable distribution of fees from the Construction Code Fund and collaborative efforts by the state, cities, and builders to identify appropriate uses for the fund, including education, training, and best practices. The Department of Labor and Industry should collaborate with local governments, builders, and other stakeholders on modifications to the building codes. Proposed changes to the building codes should primarily focus on preserving and improving safety. Impacts on the cost of development and advancing sustainability should also be considered. Council Packet Page Number 359 of 476 J3Attachment 3 Advanced state energy standards reduce energy burdens and costs for building occupants and lower greenhouse gas emissions. Metro Cities supports state funding for programs that support property owners in making energy efficiency improvements, as well as programs available for local governments. GG-7 ADMINISTRATIVE FINES Administrative fines can be used to moderate local costs associated with traditional methods of citation, enforcement, and prosecution. Metro Cities supports the administrative fine authority that allows cities to issue administrative fines for defined local traffic offenses and supports further modifications to enhance functionality of this authority. Metro Cities continues to support cities’ authority to use administrative fines for regulatory ordinances such as building codes, zoning codes, health codes, and public safety and nuisance ordinances. Metro Cities supports the use of city administrative fines, at a minimum, for regulatory matters that are not duplicative of misdemeanor or higher-level state traffic and criminal offenses. Metro Cities also endorses a fair hearing process before a disinterested third party. GG-8 RESIDENTIALPROGRAMS Sufficient funding and oversight are needed to ensure that residents living in residential programs have appropriate care and supervision and that neighborhoods are not disproportionately impacted by high concentrations of residential programs. Historically, federal and state laws have discouraged the concentration of residential group homes so as not to promote areas that reinforce institutional quality settings. Under current law, operators of certain residential programs are not required to notify cities when they intend to purchase single-family housing for this purpose. Cities do not have the authority to regulate the locations of residential programs. Cities have reasonable concerns about high concentrations of these facilities in residential neighborhoods, and additional traffic and service deliveries surrounding these facilities when they are grouped closely together. Municipalities recognize and support the services residential programs provide. However, cities also have an interest in preserving balance between residential programs and other uses in residential neighborhoods. Providers applying to operate residential programs should be required to notify the city when applying for licensure to be informed of local ordinance requirements as a part of the application process. Licensing agencies should be required to notify the city of properties receiving licensure to be operated as residential programs. Metro Cities supports changes to Minn. Stat. § 245A.11, subd. 4, to allow for appropriate non-concentration standards for all types of cities to prevent clustering. Metro Cities supports statutory modifications to require licensed agencies and licensed Council Packet Page Number 360 of 476 J3 Attachment 3 providers that operate residential programs to notify the city of properties being operated as residential programs. Metro Cities also supports the establishment of appropriate non-concentration standards for residential programs, to prevent clustering, and supports enforcement of these rules by the appropriate county agencies. Metro Cities opposes legislation enacted in 2024 that exempts group homes and assisted living facilities with licensed capacities of six or fewer individuals from local rental licensing regulations. Local communities are best positioned to determine whether residential group homes should be included in a rental housing inspection program. Residents in group homes can be especially vulnerable to experiencing unsafe living conditions. Local inspections ensure that housing meets minimum standards and requirements for safety and livability. In addition to any state oversight, local inspections also ensure that any housing conditions needing attention can be addressed promptly. Metro Cities will continue to monitor the new law and urges the Legislature to consider its repeal. GG-9 ANNEXATION Attempts have been made in recent years to reduce tensions between cities and townships in annexations. Metro Cities supports continued legislative efforts to develop recommendations regarding best practices and annexation training for city and township officials to better communicate and plan for potential annexations. Further, Metro Cities supports substantive changes to the state's annexation laws that will lead to better land use planning, energy conservation, greater environmental protection, fairer tax bases, clarification of fee reimbursement and fewer conflicts between townships and cities. Metro Cities also supports technical annexation changes that are agreed to by cities and townships. GG-10STATEWIDEFUNDINGSOURCESFORLOCALISSUESWITH REGIONAL IMPACT Many issues including, but not limited to, a metropolitan area groundwater monitoring network, emerald ash borer management, perfluoroalkyl and polyfluoroalkyl substances (PFAS/PFOS), and the cleanup of storm-water retention ponds, come with significant local costs, and have effects that reach beyond municipal boundaries. Metro Cities supports the availability of statewide funding sources to address local issues that have regional or statewide significance or are caused by state or regional actions. Metro Cities opposes any requirement to enact ordinances more restrictive than state law in exchange for access to these funds. GG-11 URBAN FOREST MANAGEMENT FUNDING Urban forests are an essential local infrastructure component. Dutch elm disease, oak Council Packet Page Number 361 of 476 J3 Attachment 3 wilt disease, drought, storms, and emerald ash borer threaten public investments in trees and controlling these issues can be greatly consequential for city budgets. The Minnesota Department of Natural Resources, through its Urban and Community Forestry program, and the Minnesota Department of Agriculture, through its Shade Tree and Invasive Species program, have regulatory authority to direct tree sanitation and control programs. Although these programs allow for addressing some tree disease, pest, and other problems, funding has been inadequate to meet the need of cities to build capacity for tree programs and respond to catastrophic problems. Cities share the goal of the state’s ReLeaf Program – promoting and funding the inventory, planning, planting, maintenance, and improvement of trees in cities throughout the state. In addition, residents are facing significant costs for the removal, replacement, and treatment of emerald ash borer (EAB). Economic and environmental gains for storm water management, climate change mitigation, air quality management, tourism, recreation, and other benefits must be protected from tree loss. A lack of timely investment in urban forests costs cities significantly more in the long run. Metro Cities supports continued funding for state programs to assist cities with building and increasing capacity for urban forest management, meeting the costs of preparing for, and responding to, catastrophic urban forest problems and preventing further loss and increasing canopy coverage. Specifically, direct grants to cities are desperately needed for the identification, removal, replacement, and treatment of trees related to management of emerald ash borer (EAB). Metro Cities supports direct grants and/or aid payments to local governments for reimbursement and retroactive relief to homeowners for treatment or removal, transporting and disposal of wood waste containing ash tree material. GG-12 POLLINATOR HABITATRESOURCES ent declines in the abundance of pollinator insects, such as bees and butterflies, Rec have been identified by the United Nations Food and Agriculture Organization as a threat to food security, as these insects are an important method of plant pollination. According to the US Fish and Wildlife Service, the main threats facing pollinators are habitat loss, degradation, and fragmentation. Pollinators lose food and nesting sites they need to survive when native vegetation is replaced by roadways, manicured lawns, crops, and non-native gardens. This can have added detriment to pollinators that migrate. Research has shown that increasing habitats can create the conditions for these insect populations to recover. Converting traditional grass lawns has been identified as one way to increase pollinator habitat. The Minnesota Legislature created the Lawns to Legumes program, which provides grants to private homeowners to convert traditional lawns to pollinator friendly landscape. The program also funds demonstration neighborhoods, which are pollinator programs run by local governments and nonprofit organizations. Metro Cities supports state funding to programs such as Lawns to Legumes that create pollinator habitat on both public and private lands. Council Packet Page Number 362 of 476 J3 Attachment 3 GG-13 REGULATION OF HARMFUL SUBSTANCES AND PRODUCTS metropolitan regions where most cities share boundaries with other cities, local bans In of harmful drugs and substances such as synthetic drugs, which have been found to be dangerous, do not eliminate access to these products unless all cities take the same regulatory action. Metro Cities supports statewide regulation and prohibition of products or substances in circumstances where there is evidence that products present a danger to anyone who uses them, where there is broad local support for a ban and where corresponding regulatory issues have regional or statewide significance. In addition, the Legislature should provide for the regulation of products that are known to damage water quality, sewer collection, and storm and wastewater treatment systems, not just at the treatment and infrastructure maintenance levels, but at the consumer and manufacturing levels, through accurate labeling of products, public education, and recycling and re-use programs. GG-14 WATER SUPPLY Municipal water suppliers are charged with meeting the water supply needs of their communities and work to do so with safe, reliable, and cost-effective systems that are sustainable both for established cities and for all future growth. The aquifers in the metropolitan area cross municipal boundaries and therefore require a coordinated regional approach to planning for their future availability. Currently, approximately 75% of municipal water supply in the metropolitan area comes from groundwater. With proper management of the resource, the current water supply in the region is adequate; however, Metropolitan Council projections predict localized declines in aquifer availability due to population growth estimates if current usage levels are maintained. Regulation of water is complex and compartmentalized. Various agencies permit its use, plan for its availability, regulate stormwater, treat wastewater and protect the safety of water. To ensure that water supply remains adequate and sustainable across the region, we must understand how much water can be sustainably drawn from the aquifers and what effect increases in re-use, conservation and recharge can have on the sustainability and availability of both groundwater and surface water. Many of these strategies cross agency jurisdictions and will require improved coordination and cooperation. Municipal water suppliers have made significant infrastructure investments in their systems based on calculated water availability and DNR permits. Proposals to reduce the reliance on groundwater by switching municipal water systems from groundwater to surface water supplies will come with significant costs that could place excessive Council Packet Page Number 363 of 476 J3 Attachment 3 burdens on local resources. The outcomes and benefits of re-balancing the mix of groundwater and surface water use for specific municipalities and the region must be identifiable before any projects are undertaken. The sustainability of our water supply is an issue of regional and statewide significance and the expense of any necessary projects that benefit the region should not fall on individual cities. Any attempts to address water supply sustainability must also consider all water users, including municipal water suppliers, industry, private wells, agriculture and contamination containment. The metropolitan region must consider the effects of groundwater use beyond the borders of the metropolitan area on the region’s groundwater availability and the cost of treating contaminants in surface water that comes into the metropolitan area for use. Metro Cities supports the removal of barriers to wastewater and storm water re-use, improved inter-agency coordination, clarifying the appropriate roles of local, regional, and state governments with respect to water, streamlining and consolidating permit approval processes and the availability of statewide resources to plan for and ensure the future sustainability of water supply in the metropolitan area. Metro Cities also encourages the Metropolitan Council, in consultation with municipalities, to find ways to re-use wastewater and to develop other strategies to improve conservation. Metro Cities supports state funding for costs associated with converting water supply from groundwater to surface water and funds to encourage and promote water conservation as a strategy to improve water sustainability and to improve and protect water quality. GG-15 PRIVATE WELL DRILLING RESTRICTION AUTHORITY Cities are authorized to enact ordinances that disallow the placement of private wells within city limits to ensure both water safety and availability for residents and businesses. This authority is important for the appropriate management of local water supply conservation efforts. Municipal water systems are financially dependent upon users to operate and maintain the system. A loss of significant rate payers resulting from unregulated private well drilling would economically destabilize water systems and could lead to contamination of the water supply. Metro Cities supports current law that authorizes cities to regulate and prohibit the placement of private wells within municipal utility service boundaries and opposes any attempt to remove or alter that authority. Metro Cities supports funding that can be used to cap private wells. GG-16 ORGANIZED WASTE COLLECTION Cities over 1,000 in population are required by law to ensure all residents have solid waste collection available to them. A city can meet the statutory requirement by licensing haulers to operate in an open collection system, authorize city employees Council Packet Page Number 364 of 476 J3 Attachment 3 to collect waste, or implement organized collection through one or multiple haulers to increase efficiency, reduce truck traffic and control costs to residents. Metro Cities supports current laws that allow cities to work with existing haulers to achieve the benefits of organized collection or investigate the merits of organized collection without the pressure of a rigid timeline and requirement to pass ‘an intent to organize’ at the beginning of the discussion process. Metro Cities opposes any legislation that would further increase the cost or further complicate the process cities are required to follow to organize waste collection or prohibit cities from implementing, expanding, or using organized waste collection. Metro Cities supports state funding to local governments to increase the availability of material and organic recycling. GG-17 FRANCHISEFEES,ACCOUNTABILITY AND COST TRANSPARENCY Minnesota cities Minnesota cities are authorized by Minn. Stat. § 216B and Minn. Stat. § 301B.01 to require a public utility (gas or electric) that provides services to the city or occupies the public right-of-way within a city to obtain a franchise. Several metro area cities have entered agreements that require the utility to pay a fee to help offset costs of maintaining the right-of-way. Cities are also adopting energy policies that use renewable energy resources to light or heat public facilities. Policies and programs have also been instituted in cooperation with the public utility franchisee to increase energy efficiency for all users. Cities contract, at city expense, with public utilities to “underground” wires. State laws also require energy companies to provide more electric energy from renewable sources. The specific amounts vary by type of utility. Metro Cities supports state policies adopted by legislation or through rules of the Public Utility Commission that provide cities with the authority to include city energy policies and priorities in a franchise or similar agreement with a franchisee. Metro Cities supports greater accountability and transparency for city paid costs associated with underground utility and similar work performed by electric utilities as part of a local project. Metro Cities supports legislation authorizing cities to franchise broadband/internet service providers (ISPs) in the public right-of-way and to collect franchise fees from these providers. Broadband Franchising will allow a city to require equal access to the same quality of broadband service throughout a city, to require reasonable build- out and system upgrades of broadband systems, to require uniform pricing and other customer service requirements, as well as other public benefits. Furthermore, Metro Cities supports the use of franchise fees on broadband or other dedicated funding to support local community television, which has seen declining funding from cable franchise fees and public, educational, and governmental (PEG) access fees as consumers switch to internet-based streaming over traditional cable tv service. Council Packet Page Number 365 of 476 J3 Attachment 3 GG-18 ELECTION ADMINISTRATION Cities play a critical role in managing and ensuring the integrity of elections. Any changes made to election laws should not place undue financial or administrative burdens on local governments. Metro Cities supports reimbursement by the state to local units of government for any costs associated with changes to election laws. State laws that allow the filling of municipal vacancies by special election on one of four days specified in law, can create logistical and financial challenges for municipalities. Metro Cities supports changes to state laws that allow sufficient flexibility for municipalities in addressing vacancies in municipal offices. Metro Cities supports laws to increase efficiencies in administering absentee ballots and early voting, to reduce the potential for errors, and to improve absentee balloting and early voting processes. Metro Cities further supports: Statutory changes to allow direct balloting for the duration of the absentee voting period. Establishing an earlier deadline for ending in-person absentee voting. Authorizing cities to schedule election judges to conduct absentee voting at an earlier date in health care facilities. Additional funding and flexibility for cities that administer absentee balloting and early voting. Requiring the legislature to conduct a cost-benefit analysis for Minn. Stat. §203B.085, which mandates certain days and hours for early voting, weighing the number of voters served by extended hours on evenings and weekends with the cost to local governments. GG-19 REGULATION OF MASSAGE THERAPISTS In the absence of statewide regulation for massage therapy practitioners, many cities have enacted local ordinances that require massage therapists to obtain a local professional license to assist law enforcement in differentiating between legitimate providers and illegitimate businesses fronting as massage therapy establishments. Metro Cities supports statewide registration or licensure of massage therapists to aid local law enforcement efforts in this area. Metro Cities supports cities’ ability to continue to license massage therapy businesses. Council Packet Page Number 366 of 476 J3 Attachment 3 GG-20 PEACE OFFICER ARBITRATION REFORM municipalities in the metropolitan area provide law enforcement services and Many employ licensed peace officers. To ensure the public’s safety and trust, and to strengthen collaboration between citizens and peace officers, cities must have the authority to effectively govern local law enforcement agencies. City officials are ultimately responsible for the safety and protection of the local community. Metro Cities supports statutory arbitration reforms to allow for the discipline, including removal, of law enforcement officers who have been found to have violated local law enforcement agency policies. Metro Cities further supports a reasonable standard of review in law enforcement arbitration cases, which would limit the determination of arbitrators to whether the actions of an employer were reasonable and consistent with city and agency policies. Metro Cities further supports using administrative law judges (ALJs) or arbitration to address grievances and discipline related to police misconduct. GG-21 PUBLIC SAFETY TRAININGANDRESOURCES Metro CitiesMetro Cities acknowledges that the tasks public safety responders have been asked to address are increasingly the result of inadequate social services and programs. Metro Cities recognizes the need for adequate resources for social service and mental health services and programs to help reduce the need for public safety responders to perform these services. Metro Cities supports allocated ongoing state funding to local governments for public safety purposes such as imbedded social workers, mental health response, training, innovation, and more. Metro Cities supports tools and incentives such as scholarships and/or reimbursements for local law enforcement agencies to use and help with recruitment and retention barriers. Metro Cities supports resources for the MN Department of Public Safety to acquire and store with a third-party vendor anti-scale fencing, pedestrian doors, and vehicle gates for local government facilities to improve equitable access to these de- escalation and safety tools. Metro Cities supports establishing a reimbursement program for law enforcement agencies that respond to protests and demonstrations at publicly owned facilities and the homes of elected officials. Metro Cities supports making the Public Safety Aid permanent to provide ongoing funding to cities to assist with increased costs to police, fire, emergency services, and Council Packet Page Number 367 of 476 J3 Attachment 3 emergency management. GG-22 COPPER AND OTHER METALTHEFT Wire theft from streetlights, other public infrastructure, and private property negatively impacts communities,by reducing public safety for all transportation modes. These thefts also cost cities hundreds of thousands of dollars each year to replace and repair damaged streetlights. Metro Cities supports efforts to curtail the theft of copper wires from public infrastructure and private property. Metro Cities supports statutory changes that would require appropriate controls on the purchase and sale of scrap copper and other metals. Metro Cities also supports increasing penalties for copper wire and other metal theft. Metro Cities supports the creation of an online database for the Department of Commerce, Department of Public Safety, and local law enforcement agencies to have access to sellers contact information and types of products sold each day at metal recycling businesses. GG-23 EMERGENCYMEDICALSERVICES The Office of Emergency Medical Services is the state regulatory entity that oversees and issues ambulance licenses and has authority to designate exclusive emergency medical services (EMS) operating areas, or primary service areas (PSAs), for ambulance providers. Once a provider has been approved to operate in a PSA, the provider is authorized to serve the area for an indefinite period of time. Currently, no other state health licensing board grants providers an exclusive operating area. The Office of Emergency Medical Services is comprised of three divisions for Medical Services, Ambulance Services, and Emergency Medical Service Providers. Additionally, three advisory councils are established to provide input and guidance to the office. Metro Cities supports the local government representation on the Emergency Medical Services Advisory Council. Metro Cities supports regional balance among the membership of the various advisory councils established by the office. Metro Cities supports allowing local units of government to designate which licensed ambulance service provider(s) serve their community and to determine the appropriate level of service. Metro Cities further supports additional tools, data collection, and local authority that ensure transparency by EMS providers. Metro Cities supports decoupling the professional standards overview role from the service area determination. GG-24 RACE EQUITY In the seven-county metropolitan region, people of color represent 28% of the Council Packet Page Number 368 of 476 J3 Attachment 3 population, and this percentage is expected to grow to 44% by 2050, according to the current population forecast from the Metropolitan Council. As racial and ethnic diversity increases in the region, people of color continue to experience significant barriers in housing, employment, criminal justice, public infrastructure, health, and education, and disparities are becoming more apparent. Across the metropolitan region, many cities are working to examine local policies and systems, to revise the delivery of public services, and to allocate resources to help advance race equity. All levels of government as well as the nonprofit and business sectors have roles to play in addressing race inequities and must work collaboratively to ensure that services and resources are considered, designed, and implemented in a comprehensive, purposeful, informed, and inclusive way to achieve race equity. Metro Cities supports: An examination and revision of state, regional, county and city laws, ordinances, and policies to address racial disparities. State resources to assist with comprehensive data collection, disaggregation and sharing to ensure informed policy and funding decisions at all levels of government. Funding to assist in the development of tools and resources that advance racially equitable outcomes. Activating partnerships among state, regional and local governmental institutions, and other entities to advance race equity. GG-25 ADULT-USE CANNABIS The Minnesota Legislature legalized adult-use cannabis in 2023. The law establishes the Office of Cannabis Management, which is responsible for licensing cannabis businesses and regulating the industry. The law includes a local registration process for cannabis business license holders where local governments are authorized to charge a registration and renewal fee. Responsible local governments are required to conduct compliance checks for age verification and the enforcement of local ordinances at cannabis businesses. Cities are authorized to establish, own, and operate a municipal cannabis store. The law also includes an optional, population-based limit on the number of retail locations in each city or county. It is vital that local governments retain the ability to suspend retail registrations for businesses that pose an immediate threat to public health or safety. The law permits local units of government to establish reasonable restrictions on the time, place, and manner of cannabis business operations and includes a zoning compliance requirement for businesses where a local jurisdiction certifies that a business’ plans are appropriate and in line with local requirements. Metro Cities opposes any efforts to reduce cities’ local control and zoning authority related to cannabis. Metro Cities supports legislation providing cities the ability to prohibit cannabis businesses within their jurisdiction. Metro Cities supports reestablishing the Local Cannabis Aid Account to provide ongoing Council Packet Page Number 369 of 476 J3 Attachment 3 funding to cities to assist with costs related to the local implementation of legal adult-use cannabis. Metro Cities also supports lifting the cap on retail registration fees imposed by local units of government. Metro Cities expects the Office of Cannabis Management to work closely with cities as this legislation is fully implemented. This includes working with local governments to create model ordinances and providing technical assistance on cannabis-related issues. GG-26 STREET RACING ANDCARJACKING Street racing and carjacking are issues of concern for cities across the metropolitan region. The highly mobile nature of street racing makes it difficult to prevent or stop. Street racing is strongly associated with other illegal activity and poses significant public safety risks for participants, third-party observers, and the public. The crime of carjacking has serious consequences for individual and community public safety. While data provided by the Minnesota Bureau of Criminal Apprehension (BCA) shows recent decreases in the number of carjacking incidents, more should be done to curb this behavior. Metro Cities supports state funding to help state and local law enforcement agencies prevent and respond to street racing and carjacking. This could include funding for State Patrol air support and funding for costs, including overtime, associated with targeted law enforcement saturations and Toward Zero Deaths initiatives. Metro Cities also supports state resources to increase the Bureau of Criminal Apprehension’s intelligence gathering capabilities and to enhance existing coordination efforts among law enforcement agencies. Metro Cities supports modifications to state laws to prohibit street racing and activities associated with promoting and undertaking the activity of street racing. Specifically, Metro Cities supports statutory changes that address the activity and associated risks posed by street racing, sliding, and drifting. These could include penalties such as license suspension, minimum impoundment periods, and vehicle forfeiture. Metro Cities supports consumer protection efforts that require motor vehicle manufacturers to offer antitheft protection devices on certain vehicles that have been shown to be especially susceptible to theft. Metro Cities further recognizes the importance and value of diversion programs that emphasize behavior modifications, which can help curb illegal activity and minimize recidivism. GG- PUBLIC NOTICE REQUIREMENTS Metro Cities State law requires that cities publish certain public notices (ordinances, advertisements for bids, financial reports, upcoming public meetings, elections, etc.) in a qualified newspaper designated by the city. Residents increasingly rely on digital platforms, city websites, and social media for official information, making web Council Packet Page Number 370 of 476 J3 Attachment 3 publications more accessible than traditional newspapers, especially when local papers are shuttering, reducing circulation to residents while significantly increasing costs to cities. Legislation passed in 2025 provided clarity for cities when their designated qualified newspaper closes, but this change in law failed to address cities previously impacted by a local newspaper closure. Cities impacted by a newspaper closure after July 2025 must post notices on both their own city website and the Minnesota Newspaper Association’s statewide public notices website until another qualified newspaper can be identified. Furthermore, once a new qualified newspaper is identified, it is frequently a subscription-based publication with limited local circulation, thereby undermining the intended goal of broad public accessibility. Metro Cities supports amending Minn. Stat. § 331A.10, subd. 2 to include a lookback period of at least five years to address the needs of cities with recently closed local newspapers. Metro Cities further supports the repeal of outdated and unnecessary publication requirements that no longer reflect current technology or effectively serve the public interest. Cities should have the authority to determine the most effective means of meeting statutory publication obligations, including whether to substitute or supplement newspaper publication with web-based publication or city-newsletters based on the unique needs of each community; ensuring notices reach the greatest number of residents. Updating statutory publication requirements will enhance transparency, improve access, and allow more effective communication with residents. GG- CONTRACTING AND PURCHASING Minnesota statutes stipulate contracting and purchasing requirements for Minnesota cities. The law prescribes the process political subdivisions must use to make purchases and award contracts and requires a competitive sealed bid procedure for contracts or purchases over $175,000. The intent of these statutory requirements is to provide taxpayers with the best value for their dollar and ensure integrity in the process. However, imposing these statutory requirements may, at times, result in political subdivisions paying more for goods and services than private entities under the same circumstances. Metro Cities supports broader use of alternative contracting and purchasing methods that streamline the process and reduce local purchasing costs. Specifically, Metro Cities supports authorizing cities to use the design-build procedure and providing municipalities with broader authority, similar to that of private businesses, to directly negotiate contracts. Metro Cities supports a change to the Minnesota Municipal Contracting Statute that is codified at § 471.345 to allow cities the flexibility to make a contract by two quotes for contracts estimated not to exceed $250,000, but only if the business being directly solicited was either: Certified as a small business enterprise by a county-designated small business Council Packet Page Number 371 of 476 J3 Attachment 3 certification program; or Certified by the commissioner of administration as a small business that is majority owned and operated by a veteran or service-disabled veteran. Council Packet Page Number 372 of 476 J3Attachment 3 Transportation Council Packet Page Number 373 of 476 J3 Attachment 3 TRANSPORTATION POLICIES AND FUNDINGINTRODUCTION Metro Cities supports a comprehensive transportation system as a vital component in planning for and meeting the physical, social, and economic needs of the state and metropolitan region. A comprehensive transportation system includes streets and bridges, transit, and multi-modal solutions that work cohesively to best meet state, regional and local transportation needs. Adequate and stable sources of funding are necessary to ensure the development and maintenance of a high quality, efficient and safe transportation system that meets these needs and that will position the state and region to be economically competitive in the years ahead. Failure to maintain a functional transportation system will have adverse effects on the state’s ability to attract and retain businesses and create jobs. Transportation funding and planning must be a high priority for state, regional and local policymakers so that the transportation system can meet the needs of the state’s residents and businesses as well as projected population growth. Funding and planning for regional and statewide systems must be coordinated at the federal, state, regional and local levels to optimally achieve long-term needs and goals. TP-1 ROADAND BRIDGE FUNDING Under current financing structures that rely primarily on local property taxes and fees as well as cities’ share of the Highway User Tax Distribution (HUTD) Fund, road and bridge needs in the metropolitan region continue to be underfunded. Metro Cities supports stable, sufficient, and sustainable statewide transportation funding and expanded local tools to meet the transportation system needs of the region and local municipal systems. Consideration should be given to using new, expanded, and existing resources to meet these needs. Metro Cities supports the use of dedicated taxes and fees to fund transportation infrastructure. In addition, cities lack adequate tools and resources for the maintenance and improvement of municipal street systems, with resources restricted to property taxes and special assessments. It is imperative that alternative revenue generating authority be granted to municipalities and that state resources be made available for this purpose to aid local communities and relieve the burden on the property tax system. Metro Cities supports Municipal State Aid Street (MSAS) funding. MSAS provides an important but limited revenue source that assists eligible cities with street infrastructure needs and is limited to twenty percent of a city’s street system. Metro Cities supports state funding to assist cities over-burdened by cost participation responsibilities from improvement projects on state or county highways. Council Packet Page Number 374 of 476 J3 Attachment 3 Metro Cities supports flexibility in cost participation policies, especially for those cities with a disproportionate number of state or county highways in and around their local boundaries. The state and counties should have responsibility for the installation, replacement, and ongoing maintenance for infrastructure within their right-of-way including Complete Streets facilities such as trails and sidewalks. Metro Cities supports state funding for state highway projects, including congestion, bottleneck and safety improvements. Metro Cities also supports state financial assistance, as well as innovations in design and construction, to offsetthe impacts of regional transportation construction projects on businesses. Metro Cities opposes statutory changes restricting the use of local funds for transportation projects. Metro Cities opposes restrictions on aesthetic related components of transportation projects, as these components often provide important safety and other benefits to projects. Metro Cities supports further research into the policy implications for electric and automated vehicles on roadways, transit, and other components of transportation systems. Metro Cities encourages the state to study the impact of electric and automated vehicles on transportation related funding and policies. TP-2 REGIONAL TRANSITSYSTEM The Twin Cities Metropolitan Area needs a multi-modal regional transit system as part of a comprehensive transportation strategy that serves all users, including commuters and the transit dependent. The transit system should be composed of a mix of high occupancy vehicle (HOV) lanes, high occupancy toll (HOT) lanes, a network of bike and pedestrian trails, bus rapid transit, express and regular route bus service, ride-on- demand microtransit, exclusive transitways, light rail transit, streetcars, and commuter rail corridors designed to connect residential, employment, retail, and entertainment centers. The system should be regularly monitored and adjusted to ensure that routes of service correspond to current and forecasted changes in the region’s transit service needs and priorities. Metro Cities supports strategic expansion of the regional transit system. Current congestion levels and forecasted population growth require a stable, reliable, and growing source of revenue for transit construction and operations so that our metropolitan region can meet its transportation needs to remain economically competitive. Metro Cities supports an effective, efficient, and comprehensive regional transit system as an invaluable component in meeting the multimodal transportation needs of the metropolitan region and to the region’s economic vibrancy and quality of life. Metro Cities recognizes that transit service connects residents to jobs, schools, health care, and activity centers. Transit access and service frequency levels should recognize the role of public transit in addressing equity, including but not limited to racial and economic disparities, people with disabilities and the elderly. Metro Cities supports efforts to transition the Council Packet Page Number 375 of 476 J3 Attachment 3 fleets of transit providers in the metropolitan region to low or zero emission buses and supports using equity and environmental criteria identified in transit providers’ zero emission bus transition plans to prioritize the deployment of zero or low-emission buses. Metro Cities opposes statutory changes restricting the use of local funds for planning or construction of transit projects. Restricting local planning and funding limits the ability of cities to participate in transit corridor planning and development. State and regional policymakers must coordinate with local units of government as decisions are made at the state level on transit projects that also involve municipal planning, funding, and policy decisions. In the interest of including all potential options in the pursuit of a regionally balanced transit system, Metro Cities opposes the imposition of legislative moratoriums on the study, planning, design, or construction of specific transit projects. Metro Cities supports a regional governance structure that ensures a measurably reliable and efficient system, recognizes the diverse transit needs of our region and addresses funding needs for all components of the system. These structures must work with and be responsive to the needs of the communities they serve. Metro Cities supports an open and collaborative regional transportation planning process that fully engages all public transit providers as partners in ongoing policy development to achieve desired outcomes, including establishment of transit project criteria that promote fair and equitable selection of projects throughout the region and transparent regional distribution of available funding. Metro Cities recognizes the need for flexibility in transit systems for cities that border the edges of the seven-county metropolitan area to ensure users can get to destinations outside of the seven-county area. Metro Cities encourages the Metropolitan Council to coordinate with collar counties so that riders can get to and from destinations beyond the boundaries of the region. Metro Cities is opposed to legislative or Metropolitan Council directives that constrain the ability of metropolitan transit providers to provide a full range of transit services, including reverse commute routes, suburb-to-suburb routes, transit hub feeder services or new, experimental services that may show a low rate of operating cost recovery from the fare box. Metro Cities supports the autonomy of suburban transit providers to conduct operations to meet demonstrated and unique needs in their designated service areas independent from the operations of other regional transit providers. Metro Cities supports the ability of a new window to be established for cities to opt out of Metro Transit to either partner with or join an existing suburban transit provider or to establish their own transit service. Suburban transit providers are concerned that funding challenges may be used to attempt to justify a repeal of their authorizing legislation and to consolidate transit services into a single regional entity. This would result in reverting to conditions existing nearly 40 years ago when inadequate service caused twelve suburbs to elect Council Packet Page Number 376 of 476 J3 Attachment 3 not to be part of the traditional transit system. In the interest of safety and traffic management, Metro Cities supports further study of rail safety issues relating to water quality protections, public safety concerns relating to derailments, traffic implications from longer and more frequent trains and the sensitive balance between rail commerce and the quality-of-life impacts on the communities through which they pass. TP-3 TRANSITFINANCING Shifting demographics in the metropolitan region will mean increased demand for various modes of transit in areas with and without current transit service. MVST revenue projections are unpredictable, and the Legislature has repeatedly reduced general fund support for Metro Transit, which contributes to persistent operating deficits for regional transit providers. Operating subsidies necessary to support a regional system should come from regional and statewide funding sources and not local taxpayers. Until recently, state and regional resources for transit had diminished, with costs shifting to local taxpayers in the metropolitan area. A system of transit provides significant economic benefits to the state and metropolitan region and must be supported with state and regional revenue sources. In addition, capital costs for the expansion of the regional transit system should be supported through state and regional sources, and not the sole responsibility of local units of government. In 2023, a 0.75% regional sales and use tax in the seven- county metropolitan region was established to provide funding for transit operations, maintenance, and capital projects. Metro Cities supports stable and predictable state and regional revenue sources to fund operating and capital expenses for all regional transit providers and Metro Mobility at a level sufficient to meet the growing operational and capital transit needs of the region and to expand the system to areas that lack sufficient transit service options. Metro Cities continues to support an advisory role for municipal officials in decisions associated with local transit projects. Metro Cities supports the early engagement of local governments in transit project planning and development including project scoping, cost estimating, funding requests and coordination with overlapping initiatives to achieve successful corridor-based projects. To promote fair, stable, and predictable distribution of Regional Transportation Sales and Use Tax receipts, Metro Cities supports a collaborative process by which the Metropolitan Council includes stakeholders in the creation of policy guiding the distribution of funds. Metro Cities supports equitable distribution of Regional Transportation Sales and Use Tax receipts to adequately fund regional transit providers’ operating and capital needs. Metro Cities supports the creation of a city allocation from the Regional Transportation Sales Tax to aid cities with local transportation infrastructure. Council Packet Page Number 377 of 476 J3 Attachment 3 TP-4 STREET IMPROVEMENTDISTRICTS Funding sources for local transportation projects are limited to the use of Municipal State Aid Street Program (MSAS), Transportation Advancement Account (TAA) distributions, property taxes and special assessments. With increasing pressures on city budgets and limited tools and resources, cities are finding it increasingly difficult to maintain aging streets. Street improvement districts allow cities in developed and developing areas to fund new construction as well as reconstruction and maintenance efforts. The street improvement district is designed to allow cities, through a fair and objective fee structure, to create a district or districts within the city in which fees are raised on properties in the district and spent within the boundaries of the district. Metro Cities supports the authority of local units of government to establish street improvement districts. Metro Cities also supports changes to special assessment laws to make assessing state-owned property a more predictable process with uniformity in the payment of assessments across the state. TP-5 HIGHWAY AND BRIDGE TURN BACKS & FUNDING Cities do not have the financial capacity and in many cities the technical expertise other than through significant property tax increases, to absorb additional roadway or bridge infrastructure responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated turn backs. Metro Cities supports jurisdictional reassignment or turnback of roads (Minn. Stat. § 161.16, subd. 4) on a phased basis using functional classifications and other appropriate criteria subject to a corresponding mechanism for adequate funding of roadway improvements and continued maintenance. Metro Cities does not support a wholesale turnback of county or state roads or bridges without the consent of the municipality and the total cost, agreed to by the municipality, being reimbursed to the city in a timely manner. The process for establishing state policies to assign a shared cost participation for newly constructed or rebuilt bridges over trunk highways to local officials, must include input by the local municipalities affected, and any assigned shared costs and responsibilities must be agreed to by the municipalities. TP-6 “3C” TRANSPORTATION PLANNING PROCESS: ELECTED OFFICIALS’ ROLE The Transportation Advisory Board (TAB) was developed to meet federal requirements, designating the Metropolitan Council as the organization that is responsible for a continuous, comprehensive, and cooperative (3C) transportation Council Packet Page Number 378 of 476 J3 Attachment 3 planning process to allocate federal funds among metropolitan area projects. Input by local officials into the planning and prioritization of transportation investments in the region is a vital component of these processes. Metro Cities supports continuation of the TAB with a majority of locally elected municipal officials as members participating in the process. TP-7 ELECTRONIC IMAGING FORENFORCEMENT OF TRAFFIC LAWS Enforcement of traffic laws with cameras and other motion imaging technology has been demonstrated to improve driver compliance and safety. Metro Cities supports cities having the authority to use such technology, including photos and videos, to enforce traffic laws. TP-8 TRANSPORTATION NETWORKCOMPANIESAND ALTERNATIVE TRANSPORTATION MODES The introduction of transportation network companies (TNC) such as Lyft and Uber, vehicle sharing and other wheeled transportation modes such as bicycles and scooters, require the need for local officials to determine licensing and inspection requirements for these modes, and to address issues concerning management over public rights-of-way. Cities have the authority to license rideshare companies, inspect vehicles, license drivers, and regulate access to sidewalks and streets. The use of autonomous delivery robots and aerial drones in public rights-of-way is also becoming more prevalent and cities must maintain and enhance the authority necessary to regulate the use of these vehicles to ensure safe use of the public right of way. Metro Cities supports the authority of local officials to regulate and establish fees on these transportation modes. Emerging and future transportation technologies have potentially significant implications for local public safety and local public service levels, the needs and impacts of which vary by community. TP-9 AIRPORT NOISE MITIGATION Communities closest to MSP and reliever airports are significantly impacted by noise, traffic, and other numerous expansion-related issues. Metro Cities supports the broad goal of providing MSP-impacted communities greater representation on the Metropolitan Airports Commission (MAC). Metro Cities encourages continued communication between MAC commissioners and the cities they represent. Balancing the needs of the MAC, the business community, and the airport host cities residents requires open communication, planning and coordination. Cities and their must be viewed as partners with the MAC in resolving differences that arise out of Council Packet Page Number 379 of 476 J3 Attachment 3 airport projects and the development of adjacent parcels. Regular contact between the MAC and cities throughout a project proposal process will enhance communication and problem solving. The MAC should provide full funding for noise mitigation for all structures in communities impacted by flights in and out of MSP. Metro Cities supports noise abatement programs and expenditures and the work of the Noise Oversight Committee to minimize the impacts of MAC operated facilities on neighboring communities. The MAC should determine the design and geographic reach of these programs only after a thorough public input process that considers the priorities and concerns of impacted cities and their residents. The MAC should provide full funding for noise mitigation for all structures in communities impacted by flights in and out of MSP. TP-10 FUNDING FOR NON-MUNICIPAL STATE AID (MSAS) CITY STREETS Cities under 5,000 in population are not eligible for Municipal State Aid. Cities over 5,000 residents have limited eligibility for dedicated Highway User Tax Distribution Fund dollars, which are capped by the state constitution as being available for up to twenty percent of streets. Current County State Aid Highway (CSAH) distributions to metropolitan counties are inadequate to provide for the needs of smaller cities in the metropolitan area. Cities need long-term, stable, funding for street improvements and maintenance. In 2023, the Legislature established the Transportation Advancement Account which distributes revenue from the retail delivery fee and the auto parts sales tax to counties, cities, townships, and a food delivery support account. Specifically, this account will distribute 27 percent of the revenue collected to cities under 5,000 in population and 15 percent to cities over 5,000 in population. Metro Cities supports the distribution of revenue deposited into the Transportation Advancement Account to cities, providing sustainable funding for non-MSAS city streets. Metro Cities supports additional resources and flexible policies to meet local infrastructure needs and increased demands on city streets. TP-11 COUNTY STATEAIDHIGHWAY (CSAH) DISTRIBUTIONFORMULA Significant resource needs remain in the metropolitan area CSAH system. Revenues provided by the Legislature for the CSAH system have resulted in a higher number of projects being completed. However, greater pressure is being placed on municipalities to participate in cost sharing activities, encumbering an already over-burdened local funding system. When the alternative is not building or maintaining roads, cities bear not only the costs of their local systems but also as much as fifty percent of county road projects. Metro Cities supports special or additional funding for cities that have burdens of additional cost participation in projects involving county roads. Council Packet Page Number 380 of 476 J3 Attachment 3 SAH formula passed by the Legislature in 2008 helped to better account for The C needs in the metropolitan region but additional resources for the region are needed. Metro Cities supports a new CSAH formula more equitably designed to fund the needs of our metropolitan region. TP-12MUNICIPALINPUT/CONSENTFORTRUNKHIGHWAYSAND COUNTY ROADS State statutes direct the Minnesota Department of Transportation (MnDOT) to submit detailed plans, with city cost estimates, at a point one-and-a-half to two years prior to bid letting, at which time public hearings are held for community input. If MnDOT does not concur with requested changes, it may appeal. Currently, that process would take a maximum of three and a half months and the results of the appeals board are binding on both the city and MnDOT. Metro Cities supports the municipal consent process and opposes changes to weaken municipal consent or adding another level of government to the consent process. Metro Cities opposes changes to current statutes that would allow MnDOT to disregard the appeals board ruling for state trunk highways. Such a change would significantly minimize MnDOT’s need to negotiate in good faith with cities for appropriate project access and alignment and would render the public hearing and appeals process meaningless. Metro Cities also opposes the elimination of the county road municipal consent and appeal process for these reasons. Metro Cities supports limiting the use of design-build contracts to projects with a single owner of the infrastructure being constructed or when there is a compelling reason to utilize that type of contract. MnDOT should be required to justify why an accelerated project is necessary. The decision to use a design-build contract should be made with the input and consent of the jurisdictions impacted by the project. TP-13 PLATAUTHORITY Current law grants counties review and comment authority for access and drainage issues for city plats abutting county roads. Metro Cities opposes any statutory change that would grant counties veto power or that would shorten the 120-day review and permit process time. TP-14 MNDOTMAINTENANCE BUDGET MnDOT has been inconsistent in meeting its responsibility for maintaining major roads throughout the state and has required, through omission, that cities bear the burden of maintaining major state roads. MnDOT should be required to meet standards adopted by cities through local Council Packet Page Number 381 of 476 J3 Attachment 3 ordinances, or reimburse cities for labor, equipment and material used on the state’s behalf to improve public safety or meet local standards. Furthermore, if a city performs maintenance, the city should be fully reimbursed. Metro Cities supports MnDOT taking full responsibility for maintaining state-owned infrastructure and property, including, but not limited to, sound walls and right of way within city limits. Metro Cities supports cooperative agreements between cities and MnDOT, which have proven to be effective in other parts of the state. Metro Cities supports adequate state funding for the maintenance of state rights-of-way. TP-15TRANSITTAXINGDISTRICT The transit taxing district, which funds the capital cost of transit service in the Metropolitan Area through the property tax system, is inequitable. Because the boundaries of the transit taxing district do not correspond with any rational service line nor is being within the boundaries a guarantee to receive service, cities within and outside of the taxing district are contributing unequally to the transit service in the metropolitan area. This inequity should be corrected. Metro Cities supports a stable revenue source to fund both the capital and operating costs for transit at the Metropolitan Council. However, Metro Cities does not support the expansion of the transit taxing district without a corresponding increase in service and an overall increase in operational funds. To do so would create additional property taxes without a corresponding benefit. TP-16 COMPLETE STREETS A complete street may include sidewalks, bike lanes (or wide paved shoulders), special bus lanes, comfortable and accessible public transportation stops, frequent and safe crossing opportunities, median islands, accessible pedestrian signals, curb extensions, narrower travel lanes and more. A complete street in a rural area will differ from a complete street in a highly urban area, but both are designed to balance safety and convenience for everyone using the road. Metro Cities supports options in state design guidelines for complete streets that would give cities greater flexibility to: Safely accommodate all modes of travel. Lower traveling speeds on local streets. Address city infrastructure needs. Ensure livability in the appropriate context for each city. Council Packet Page Number 382 of 476 J3 Attachment 3 Metro Cities opposes state-imposed mandates that would increase street infrastructure improvement costs in locations and instances where providing access for alternative modes including cycling and walking are deemed unnecessary or inappropriate as determined by local jurisdictions. Municipal State Aid design standards, while created with local engineering representation, have at times been too restrictive for cities to design and construct complete streets that fit a community’s context and address the needs and desires of the community without a variance. Design flexibility should allow for increased discretion by the local community’s engineer and design team. Metro Cities supports updated Municipal State Aid design standards that better acknowledge and accommodate the needs and context of urban cities and that better align with other nationally and/or state recognized engineering design standards. Further, Metro Cities supports changes to the variance process to include an appeals process for any variance denials. TP- NOISE WALL VOTING MnDOT’s current policy for approval of highway noise walls uses a weighted voting system for residents and property owners adjacent to proposed noise walls. In all cases, a property owner is allocated twice as many votes as a resident that does not own the property. This effectively denies renters any ability to influence the approval of noise walls adjacent to their homes. In the case of higher density housing, a single non-resident property owner can determine the outcome of a noise wall approval for hundreds of residents. If a property owner votes against a noise wall, even if residents overwhelmingly vote for a noise wall, the MnDOT policy results in hundreds of residents being disadvantaged. This is especially concerning considering renters are more likely to be lower income and more diverse. Metro Cities supports a comprehensive assessment of MnDOT’s current noise wall voting policy, specifically including an equity analysis of the policy. TP-PROJECTCOST PARTICIPATION Under current policies with MnDOT and many of the state’s counties, cities are responsible for cost participation on transportation projects occurring on state and county systems. These costs include shares of costs related to right-of-way, traffic signals, sidewalks and trails, bike facilities, stormwater, landscaping, and other components of the project. Many cities end up using most, and in some cases all, of their Municipal State Aid funding to cover these costs. This results in less funding for the city’s own Municipal State Aid system. Cities should be given credit and recognition for the ongoing maintenance of facilities in the state and county right-of-way such as snow removal on trails and sidewalks, electric and lighting costs, landscape maintenance and other on-going maintenance costs with which cities incur a large cost of the life of these facilities. Council Packet Page Number 383 of 476 J3 Attachment 3 As MnDOT and counties begin to embrace the importance of multimodal facilities within their rights-of-way, their funding for these facilities should align with their vision for the installation of these facilities. Metro Cities supports cost participation policies that reduce the burden on cities for state and county roadway projects and shifts more of the cost to the agency with jurisdiction over the roadway; particularly costs for trails, sidewalks, bikeways, traffic signals and the right-of-way to support those facilities. In 2026, MnDOT is required to provide a report to the Legislature detailing changes to its Cost Participation Policy with changes required to be in effect by March of 2026. Metro Cities supports changes to MnDOT’s Cost Participation to reduce, or even eliminate, local cost participation on Trunk Highway projects and stands ready to comment on MnDOT’s report and recommend further changes to fulfill this vision of a fair and equitable cost participation policy. Council Packet Page Number 384 of 476 J3 Attachment 3 Housing & Economic Development Council Packet Page Number 385 of 476 J3 Attachment 3 HED-1 TOHED-10:INTRODUCTION While the provision of housing is predominantly a private sector, market-driven activity, all levels of government – federal, state, regional and local – have a role in facilitating the production and preservation of affordable housing in Minnesota. Adequate affordable housing is a significant concern for the metropolitan region and effective approaches require participation from all levels of government, the private sector, and nonprofit groups. HED-1 CITYROLE IN HOUSING Cities in Minnesota are responsible for most ground-level housing policy, including land use planning, code enforcement, rental licensing, and often the packaging of multi-level financial incentives. Cities are responsible for ensuring local health and safety and the structural soundness and livability of the local housing stock through building permits and inspections. Cities are charged with providing public infrastructure to serve current and future residents and must assess the effects of a new development on parks, local roads, water, sanitary sewer, and stormwater capacities to ensure that additional needs for infrastructure are assumed by the new development and not current taxpayers. It is the city that assumes the future financial responsibility, management, and maintenance for improvements and infrastructure after a developer has completed a project. It is also the responsibility of cities to periodically review local requirements such as land use regulations and ordinances, and make long range plans consistent with state statute, to ensure that they are consistent with these purposes. While local government financial resources constitute a relatively small portion of the total costs of providing housing, many cities take on a significant administrative burden by providing financial incentives and regulatory relief, participating in state and regional housing programs, and supporting either local or countywide housing and redevelopment authorities and community development agencies. When a developer seeks to advance a development proposal that does not meet straight housing and mixed-use zoning codes and requirements, the developer may request a planned unit development (PUD) agreement with a city. PUDs, where appropriate, can provide zoning flexibility to develop a site that is otherwise not permitted by a city code. The use of PUDs may allow for more variety and creativity in land uses, increased density on a site, internal transfers of density, construction phasing, reduced setbacks, and a potential for lower development costs. In the interest of adhering to local long-range plans and managing local health, safety, viability, and welfare needs, a city may request certain public benefits from a developer, including but not limited to additional open space, preservation of wooded land and environmentally sensitive areas, landscaping along major roadways, providing a mix of housing types, and enhanced design and landscaping features. Council Packet Page Number 386 of 476 J3 Attachment 3 Cities may also provide a developer with credit for investments in public infrastructure greater than would be minimally required, including water, sanitary sewer, stormwater, or road infrastructure. Metro Cities opposes any effort to reduce, alter or interfere with cities’ authority to carry out these functions in a locally determined manner. Metro Cities supports allowing cities to establish rental licensing for micro-unit dwellings in sacred settlement communities to give cities the ability to fulfill their responsibility to promote the health, safety and welfare of residents by ensuring the structural soundness and livability of these units are consistent with their rental housing inspection policies and programs. Metro Cities supports exceptions to the land use timelines in Minn. Stat. § 15.99 in the event of extenuating local and state circumstances. Metro Cities supports local authority determination when exercising the use of exceptions, recognizing projects may be in different stages of approval. If a state of emergency limits the ability of city staff to complete a land use review, it should not result in de facto approval of an application. HED-2 CITYROLE IN AFFORDABLE ANDLIFE CYCLE HOUSING Metro Cities supportshousing that is affordable and appropriate for people at all stages of life. A variety of housing opportunities are important to the economic and social wellbeing of local communities and the metropolitan region. The region faces challenges in meeting the existing and future housing needs of low and moderate- income residents. Existing housing stock is aging, with over half older than 40 years old, according to the U.S. Census Bureau. Older housing stock can be more affordable; however, it requires investments to remain viable. Private investors have purchased subsidized and unsubsidized rental units, made improvements, and charged higher rents that have made access to previously affordable units prohibitive for low and moderate-income residents. This investor ownership has converted owner-occupied houses to rental houses, which has impacted the ability of lower-income renters to become homeowners and build wealth. Neighbors and cities have seen a lack of investment in these rental homes that has led to the deterioration of the housing stock. The Metropolitan Council has projected the region will add nearly 60,845 households earning up to 50 percent area median income between 2020 and 2030 that will need affordable housing. Senior households bring the number of low-income households up significantly, with the number of age 65+ households growing by 51,691 during that time-period. Cities should work with the private and nonprofit sectors, counties, state agencies and Council Packet Page Number 387 of 476 J3 Attachment 3 the Metropolitan Council to ensure the best use of new and existing tools and resources to produce new housing and preserve existing affordable housing. Cities can facilitate the production and preservation of affordable and life cycle housing by: Applying for funding from available grant and loan programs; Using city and county funds to support affordable housing. This can include creating a local or regional housing trust fund to support affordable housing; Providing information, encouraging and incentivizing participation in the Section 8 Housing Choice Voucher program to landlords; Working with developers and residents to blend affordable housing into new and existing neighborhoods, including locations with access to amenities and services; Working with the state and Metropolitan Council to recognize the relationship between housing and mobility options, including transit and pedestrian routes; Periodically examining local requirements, policies and review processes to determine their impacts on the construction of affordable housing; Considering criteria under which a city may change its fee structure in support of additional affordable housing; Supporting housing options that meet a city’s current and future demographics, including family size, age, mobility, and ability levels; Supporting housing design that is flexible, accessible and usable for residents with varied abilities at multiple stages of life; Supporting housing with supportive services for people with disabilities; Employing innovative strategies to advance affordable housing needs such as public- private partnerships or creative packaging of regulatory relief and incentives; Using available regulatory mechanisms to shape housing communities; Recognizing the inventory of subsidized and unsubsidized (naturally occurring) affordable housing, and working collaboratively with buyers and sellers of naturally occurring affordable housing to retain affordability; Tracking the impacts of investor-owned homes on the housing market, and enacting local strategies and policies that support home purchases by owners who reside in the homes; Supporting policy solutions that provide cities with tools to mitigate any negative impacts on city housing stock and prospective homebuyers due to investor-owned purchasing of homes. Council Packet Page Number 388 of 476 J3 Attachment 3 HED-3 INCLUSIONARY HOUSING While Metro Citiesbelieves While Metro Cities believes there are cost savings to be achieved through regulatory reform, density bonuses as determined by local communities, and fee waivers, Metro Cities does not believe a mandatory inclusionary housing approach can achieve desired levels of affordability solely through these steps. Several cities have established local inclusionary housing policies, in some cases requiring the creation of affordable units if the housing development uses public financial assistance or connecting the policy to zoning and land use changes. The Metropolitan Council, in distributing the regional allocation of housing need, must recognize both the opportunities and financial limitations of cities. The Council should partner with cities to facilitate the creation of affordable housing through direct financial assistance and/or advocating for additional resources through the Minnesota Housing Finance Agency. Metro Cities supports the location of affordable housing in residential and mixed-use neighborhoods throughout a city. Metro Cities supports a city’s authority to enact its own inclusionary housing policy. However, Metro Cities does not support passage of a mandatory inclusionary housing state law imposed on local governments that would require a certain percentage of units in all new housing developments to be affordable to households at specific income levels. Metro Cities supports a clarification to state statute that statutory and charter cities may collect a payment in lieu of the inclusion of affordable housing units that will be directed to a local housing trust fund to support affordable housing preservation, development, and housing stabilization in alignment with individual city goals. HED-4 METROPOLITAN COUNCIL ROLEIN HOUSING etropolitan Council is statutorily required to assist cities with meeting the The M provisions of the Land Use Planning Act (LUPA) under Minn. Stat. § 473. The LUPA requires cities to adopt sufficient standards, plans and programs to meet their local share of the region’s overall projected need for low and moderate-income housing. The Council’s responsibilities include the preparation and adoption of guidelines and procedures to assist local government units with accomplishing the requirements of the LUPA. The Metropolitan Council also offers programs and initiatives to create affordable housing opportunities, including the Livable Communities Act programs and operation of a metropolitan housing and redevelopment authority. Unlike parks, transit and wastewater, housing is not a statutory regional system. The Metropolitan Council’s role, responsibilities and authority are more limited in scope, centered on assisting local governments by identifying the allocation of need for affordable housing, projecting regional growth and identifying available tools, resources, technical assistance and methods that cities can use to create and promote affordable housing opportunities in their communities. The Metropolitan Council should work in partnership with local governments to ensure that the range of housing needs for people at various life cycles and incomes can be met. Metro Cities opposes the elevation of housing to Council Packet Page Number 389 of 476 J3 Attachment 3 “Regional System” status. Metro Cities supports removing the Metropolitan Council’s review and comment authority connected to housing revenue bonds under Minn. Stat. §462C.04. In 2014, the Metropolitan Council released its first housing policy plan in nearly thirty years. A Metropolitan Council housing policy plan should include defined local, regional, and state roles for the provision of housing in all sectors, identify the availability of and need for tools and resources for affordable and life-cycle housing, be explicit in supporting partnerships for the advocacy for state and federal resources for housing, and encompass policies, best practices, and technical guidance for all types of housing. A plan should also recognize the diversity in local needs, characteristics, and resources. Metro Cities supports strategies such as regional and sub-regional cooperation and the sharing of best practices among local governments and other entities and partners to address the region’s affordable housing needs. A policy plan should allow for ongoing research and analysis by the Metropolitan Council to provide communities with timely and updated information on regional and local housing needs and market trends as regional and local needs change and evolve. Metro Cities supports the solicitation and use of local data, inputs and analyses and local governments’ review of such data. Metro Cities supports continued city representation in any updated or new regional housing policy plan and other regional housing policy considerations. HED-5 ALLOCATIONOF AFFORDABLEHOUSING NEED The affordable housing need allocation methodology determines the number of needed affordable housing units for the metropolitan region and distributes the need by assigning each city its fair share through an affordable housing need number. Minn. Stat. § 473.859 requires cities to guide sufficient land to accommodate local shares of the region’s affordable housing need. Metro Cities supports additional Metropolitan Council resources to assist cities in meeting cities’ share of the region’s affordable housing needs. Metro Cities supports the creation of a variety of housing opportunities. However, the provision of affordable and lifecycle housing is a shared responsibility between the private sector and government at all levels, including the federal government, state government and Metropolitan Council. Land economics, construction costs, labor costs, and infrastructure needs create barriers to the creation of affordable housing that cities cannot overcome without assistance. Therefore, Metro Cities supports a Metropolitan Council affordable housing policy and allocation of need methodology that recognizes the following tenets: Regional housing policies characterize individual city and sub-regional housing numbers as a range of needs in the community; Council Packet Page Number 390 of 476 J3 Attachment 3 Cities need significant financial assistance from the federal and state government, as well as the Metropolitan Council, to make progress toward creating additional affordable housing and preserving existing affordable housing; Metropolitan Council planning and policies must be more closely aligned to help ensure that resources for transportation and transit are available to assist communities in addressing their local share of the regional affordable housing need and to ensure that all populations have adequate mobility to reach jobs, education and other destinations regardless of where they live; The Metropolitan Council will not hold cities responsible if a city does not meet its affordable housing need number. However, efforts to produce affordable housing may be considered when awarding grants; The Metropolitan Council, with input by local government representatives, should examine the allocation of need methodology with respect to the relationship between the regional allocation and the local share of the need. The formula should also be routinely evaluated to determine if market conditions have changed or if underlying conditions should prompt readjustment of the formula; The Council should use a methodology that incorporates data accumulated by individual cities and not limited to census driven or policy driven growth projections; The formula should be adjusted to better reflect the balance and breadth of existing subsidized and naturally occurring affordable housing stocks; and The Council should work with local governments through an appeals process to resolve any local issues and concerns with respect to the need allocations and the plan review process. HED-6 HOUSING POLICY AND PRODUCTION SURVEY The Metropolitan Council annually calculates a city’s housing production. Production information is collected through an annual city survey as well as Council data. Cities participating in Livable Communities programs are required to include their housing action plan and ALHOA funding amounts in their survey responses. Beginning in 2022, the Council began compiling the data in a report to share city practices and funding sources that support the creation of new affordable housing units. Metro Cities supports a regular review of the survey questions and use of data, with city input. Any proposed new, deleted, or expanded uses or programs in which data from the Housing Policy and Production Survey would be used should be reviewed by local officials and Metro Cities. Metro Cities supports a consistent schedule for sending the annual housing production survey to cities. HED-7 STATEROLE IN HOUSING Council Packet Page Number 391 of 476 J3 Attachment 3 The state must be an active participant in providing funding for housing, including direct funding, financial incentives, and initiatives to assist local governments and developers to support affordable housing and housing appropriate for people at all stages of life. State funding is a major and necessary component for the provision of housing. Current resource levels are insufficient to meet the spectrum of needs in the metropolitan region and across the state. Primarily through programs administered by the Minnesota Housing Finance Agency (MHFA), the state establishes the general direction and prioritization of housing issues, and financially supports a variety of housing, including transitional housing, privately and publicly owned housing, supportive housing, senior housing, workforce housing, and family housing. Minnesota’s low-income rental property classification, commonly known as class 4d(1), allows landlords to certify qualifying low-income rental property. The state must continue to be an active partner in addressing life cycle and affordable housing needs. Any program expansion proposals for state mandated class-rate reductions should include a full analysis of the impacts to local property tax bases before their enactment. Metro Cities opposes any changes to the 4d(1) program that substantially increases the tax responsibility for residents and businesses or increases the tax benefit for landlords without including increased benefits for renters of 4d(1) units. Metro Cities supports a property owner being required to receive city approval where the property is located, for all 4d(1) property that has not in whole or in part been classified as 4d(1) property. Metro Cities supports 4d(1) aid being made permanent and available to all impacted cities. Metro Cities supports the continuation of a reporting process for landlords benefitting from the 4d(1) class rate reduction to ensure deeper affordability or property reinvestment, and a sunset period for any changes made to the program to evaluate the range of impacts that expanding the program may have. Workforce housing is generally defined as housing that supports economic development and job growth and is affordable to the local workforce. A statewide program, administered through the Minnesota Housing Finance Agency, supports workforce homeownership efforts in the metropolitan area. State policies and funding should recognize that affordable housing options that are accessible to jobs and meet the needs of a city’s workforce are important to the economic competitiveness of cities and the metropolitan region. In addition, significant housing related racial disparities persist in Minnesota, especially as it relates to the percentage of households of color who pay more than 30 percent of their income in housing costs and as it relates to the significant disparity gap in homeownership rates. A 0.25% metropolitan area regional sales tax enacted in 2023 provides Local Affordable Housing Aid (LAHA) to cities over 10,000 in population in the metropolitan region, and cities received the first distribution of LAHA in 2024. A report to the Minnesota Housing Finance Agency on LAHA uses and expenditures is due on Council Packet Page Number 392 of 476 J3 Attachment 3 December 1, 2025, and every year thereafter. Given the variability in sales taxes collected each year, Metro Cities urges the Legislature to consider extending the timeline in which cities must expend funds. Metro Cities further supports having funds be considered expended if they are deposited into a local housing trust fund, which provides flexibility for cities in maximizing public resources for housing projects. Metro Cities supports allowing a percentage of LAHA funds to be put toward administrative costs. A variety of programs such as Tax Increment Financing (TIF), Federal Section 8, and local Bring It Home MN programs all recognize this need, but as of now, LAHA does not. Metro Cities supports a sunset to the LAHA reporting requirements, including reporting on locally funded housing expenditures. Metro Cities supports: Increased, sustainable and adequate state funding for new and existing programs that support life cycle, workforce and affordable housing, address homeownership disparities, address foreclosure mitigation, address housing for families with children, and support senior, transitional and emergency housing for the metro region; An ongoing state match for local and regional housing trust fund investments and local policies in support of affordable housing. State funds should be issued on a timeline that works with a city’s budget process; Private sector funding for workforce housing; Housing programs that assist housing development, preservation and maintenance of existing housing stock, including unsubsidized, naturally occurring affordable housing that is affordable to residents throughout the low-to-moderate income range; State funded housing assistance programs to help with affordability; Housing programs designed to develop market rate housing in census blocks with emerging or high concentrations of poverty, where the private market might not otherwise invest, as a means of creating mixed-income communities and reconciling affordable housing with community development goals; Continuing the policy of using the Minnesota Housing Finance Agency’s investment earnings for housing programs; City input into state legislation and administrative policies regarding distribution of tax credits and tax-exempt bonding; Exemptions from, or reductions to sales, use and transaction taxes applied to the development and production of affordable housing; Consideration of the use of state bond proceeds and other appropriations for land banking, land trusts, and rehabilitation and construction of affordable housing; Council Packet Page Number 393 of 476 J3 Attachment 3 Programs that help avoid foreclosures, improve homeownership rates and reduce racial disparities through homeownership assistance programs and counseling services, including down payment assistance and pre-purchasing counseling to improve financial wellness and inform homeowner and potential homeowners of their rights, options, and costs associated with owning a home; State tenant protection policies as well as a city’s ability to enact tenant protections to support access to affordable housing and housing stability for tenants; Prohibiting landlords from denying housing opportunities to residents based on their source of income; Housing stability for renters through policies that mitigate the impact of or reduces the number of evictions filed; Policies that encourage public housing authorities and owners of federally assisted housing to consider a holistic approach to selecting tenants during the application and screening process, and avoid excluding tenants solely based on criminal records; Exploring best practices toward increased housing affordability for residents, housing maintenance standards and providing quality housing for residents. Cities should work with rental housing owners and operators when establishing best practices; The state housing tax credit to support local governments and the private sector to help spur construction and secure additional private investment; and Maintaining existing municipal authority to establish a housing improvement area (HIA). If the Legislature grants multi-jurisdictional entities the authority to create HIAs, creation of an HIA must require municipal approval. HED-8 FEDERALROLEINAFFORDABLEANDWORKFORCEHOUSING Federal funding plays a critical role in aiding states and local governments in their efforts to maintain and increase affordable and workforce housing. Providing working families access to housing is an important piece to the economic vitality of the region. Metro Cities encourages the federal government to maintain and increase current levels of funding for affordable and workforce housing. Federal investment in affordable and workforce housing will maintain and increase the supply of affordable and life cycle housing as well as make housing more affordable through rental assistance programs such as the Section 8 housing choice voucher program. In July 2015, the U.S. Department of Housing and Urban Development (HUD) inal rule on affirmatively furthering fair housing (AFFH) with an aim to released a f provide communities that receive HUD funding with clear guidelines to meet their obligation under the Fair Housing Act of 1968 to promote and reduce barriers to fair housing and equal opportunity. HUD has since provided new guidance to comply with Council Packet Page Number 394 of 476 J3 Attachment 3 the AFFH rule. Metro Cities supports: Preserving and increasing funding for the Community Development Block Grant Program (CDBG) and the federal HOME program that are catalysts for creating and preserving affordable housing; Preserving and increasing resources and incentives to sustain existing public housing throughout the Metro Area; Maintaining the federal tax credit program to help spur construction and secure additional private investment, including making the four percent Low Income Housing Tax Credit a fixed rate as was done with the nine percent credit in 2015; Creating and implementing a more streamlined procedural method for local units of government to participate in and access federal funding and services dealing with grants, loans, and tax incentive programs for economic and community development efforts; Additional resources to assist communities to meet obligations to reduce barriers to and promote fair housing and equal opportunity; Maintaining and increasing resources to Section 8 funding and to support incentives for rental property owners to participate in the program; Federal funding programs for renters with limited income or fixed income; Rental increase caps when the rent increase exceeds a 5-year running average; and Federal funding to provide short-term assistance for HRAs to facilitate the sale of tax- exempt bonds. HED-9 VACANT, BOARDED, AND FORECLOSED PROPERTIES AND PROPERTIES AT RISK Abandoned residential and commercial properties can harm communities when vacant buildings result in reduced property values and increased crime. The additional public safety and code enforcement costs of managing vacant properties are a financial strain on cities. Metro Cities supports solutions to vacant and boarded properties that recognize that prevention is more cost effective than a cure, the causes of this problem are many and varied, requiring a variety of solutions, and cities must not be expected to bear the bulk of the burden of mitigation, because it is not simply a “city” problem. Further, Metro Cities supports: Council Packet Page Number 395 of 476 J3 Attachment 3 Registration of vacant and boarded properties; Allowing cities to acquire vacant and boarded properties before deterioration and vandalism result in unsalvageable structures, including providing financial tools such as increasing eminent domain flexibility; Improving the ability of cities to recoup the increased public safety, management, and enforcement costs related to vacant properties; Improvement of the redemption process to provide increased notification to renters, strengthen the ability of homeowners to retain their properties, and reduce the amount of time a property is vacant; Expedition of the tax forfeiture process; Increasing financial tools for neighborhood recovery efforts, including tax increment financing; and Year-round notification by utility companies of properties not receiving utility service. HED-10 HOUSING ORDINANCEENFORCEMENT A Minnesota State Supreme Court ruling, Morris v. Sax, stated that provisions of the city of Morris’ rental housing code were invalid because there were subjects dealt with under the state building code and the city was attempting to regulate these areas “differently from the state building code.” Minn. Stat. § 326B.121, subdivision 1 states: “The State Building Code is the standard that applies statewide for the construction, reconstruction, alteration, repair, and use of buildings and other structures of the type governed by the code. The State Building Code supersedes the building code of any municipality.” Subdivision 2 states: “A municipality must not by ordinance, or through development agreement, require building code provisions regulating components or systems of any structure that are different from any provision of the State Building Code. This subdivision does not prohibit a municipality from enacting or enforcing an ordinance requiring existing components or systems of any structure to be maintained in a safe and sanitary condition or in good repair, but not exceeding the standards under which the structure was built, reconstructed, or altered, or the component or system was installed, unless specific retroactive provisions for existing buildings have been adopted as part of the State Building Code. A municipality may, with the approval of the state building official, adopt an ordinance that is more restrictive than the State Building Code where geological conditions warrant a more restrictive ordinance. A municipality may appeal the disapproval of a more restrictive ordinance to the commissioner.” Metro Cities supports the ability of cities to enforce all housing codes passed by a local municipality to maintain its housing stock. Council Packet Page Number 396 of 476 J3 Attachment 3 HED-11 to HED-1 INTRODUCTION The economic viability of the metropolitan area is enhanced by an array of economic development tools that create infrastructure, revitalize previously developed property, provide incentives for business development, support technological advances, support a trained workforce, and address disparities in economic development and workforce development. It should be the goal of the state to champion development and redevelopment by providing adequate and sustainable funding to assure competitiveness in a global marketplace. The state should recognize the relationship between housing and economic development. Access to affordable childcare supports working families and allows parents to enter or remain in the workforce. Economic development and redevelopment are not mutually exclusive – some projects require a boost on both counts. The State of Minnesota should recognize cities as the primary unit of government responsible for the implementation of economic development, redevelopment policies, and land use controls. HED-11 ECONOMICDEVELOPMENT For purposes of this section, economic development is defined as a form of development that can contain direct business assistance, infrastructure development, technical assistance, and policy support with the goal of sustainable job creation, job retention, appropriate state regulation or classification, or to nurture new or retain existing industry in the state. The measure of return on investment of public business subsidies should include the impact (positive or negative) of “spin- off development” or business development that is ancillary and supportive of the primary business. A strength of the regional economy is its economic diversity. Multiple industry clusters and sectors employ a specialized, trained workforce and support entrepreneurs in developing new businesses. Partnerships and collaborations among the state and local levels of government, higher education and industry should continue to develop, to commercialize new technologies and to support efforts to enhance the economic vitality of the region. While cities are the unit of local government primarily responsible for the implementation of economic development, counties have an interest in supporting local economic development efforts. Any creation of a county CDA, EDA or HRA with economic development powers should follow Minn. Stat. § 469.1082 that requires a city to adopt a resolution electing to participate. Cities can work with the public and private sectors to support the region’s economic growth by reducing barriers to economic participation by people of color. Metro Cities supports state funded programs that support new and expanding businesses, infrastructure development and public-private partnerships. This includes the Minnesota Investment Fund, Job Creation Fund and Angel Tax Credit. Programs using statewide funding should strive to award funds balanced between the metro region and greater Minnesota. Metro Cities supports competitive funding for statewide grant programs such as the Minnesota Investment Fund (MIF) as opposed to direct Council Packet Page Number 397 of 476 J3 Attachment 3 legislative appropriations for projects from these funds. Metro Cities supports a percentage of MIF loan repayments to cities. The state should provide administrative support and technical assistance to cities that administer these programs. Applications for state MIF funds should allow a city to indicate support for a MIF grant or a loan. Metro Cities supports economic tools that facilitate job growth without relying solely on the property tax base; green job development and related innovation and entrepreneurship; programs to support minority business start-ups; small business financing tools including a state new markets tax credit program mirrored on the federal program; tools to attract and retain data centers and other IT facilities; access to affordable child care; and maintaining existing municipal authority to establish a special service district (SSD). Metro Cities supports further study of allowing mixed- use buildings that have both commercial and residential uses to be included in an SSD. HED-12 REDEVELOPMENT Redevelopment facilitates the re-use of previously developed land, thereby leveling the playing field between greenfield and brownfield sites so that a developer can choose to locate on land that has already been used. Redeveloping properties supports community vibrancy and revitalization. Redevelopment increases the local property tax base, increases land values, provides more efficient use of new or existing public infrastructure (including public transit), reduces urban sprawl, and enhances the livability of neighborhoods. Jobs are created three times – at demolition and cleanup, during construction, and ongoing jobs tied to the new use. Redevelopment may occur on non-polluted land or on brownfields. Brownfields are abandoned, idled, or underused industrial and commercial properties where financing or redevelopment is complicated by actual or suspected environmental contamination. Federal, state, regional and local governments fund investigation and cleanup of blighted or other brownfield properties that allows for redevelopment without risking human health or potential environmental liabilities. Correcting and stabilizing polluted soils and former landfill sites allows cities to redevelop and reuse properties. For many cities in the metropolitan region, redevelopment is economic development. Metro Cities supports increased funding from federal, state and regional sources. The Metropolitan Council’s Livable Communities Act programs fund redevelopment activities that support cleanup and tax base revitalization. Metro Cities supports allowing a maximum levy amount for this program, as provided under law. Metro Cities supports increased and sustained state funds for DEED-administered programs like the Redevelopment Grant and Demolition Loan Program, dedicated to metropolitan area projects, innovative Business Development Public Infrastructure grants, as well as increased, flexible, and sustained funding for the Contamination Cleanup and Council Packet Page Number 398 of 476 J3 Attachment 3 Investigation Grant Program. The expansion of transit service throughout the region brings opportunity for redevelopment and transit-oriented development (TOD). Metro Cities supports financing, regulatory tools, and increased flexibility in the use of Tax Increment Financing (TIF) to nurture TOD. Metro Cities supports funding Transit Improvement Areas (TIAs) and ensuring that the eligibility criteria encourage a range of improvements and infrastructure and accommodate varying city circumstances and needs. Metro Cities supports expansion of existing tools or development of new funding mechanisms to correct unsuitable soils as well as city authority to redevelop land previously used as landfills and dumps. If a city receives initial approval from a state regulatory authority, a city’s redevelopment project approval should be considered final. Local governments and cities may choose to revitalize historic structures rather than construct new buildings. Metro Cities supports extension of the sunset of the state income tax credit and maintaining the federal tax credit for preservation of historic properties. Metro Cities supports collection of the state refund for the historic expenditures over one year. Metro Cities supports state funding to allow cities and/or their development authorities to assemble small properties so that business expansion sites will be ready for future redevelopment. HED- ADAPTIVE REUSE Cities in the metropolitan region are experiencing significant commercial vacancy issues in both downtown districts as well as in other commercial areas and need tools and resources to support efforts for the adaptive reuse of vacant, functionally obsolete, and/or underutilized commercial spaces to housing units or other higher uses, if it is determined to be supported by the city the project is located in. As a result of the COVID-19 pandemic, more employees are working from home on a full-time or hybrid basis, and more and more employers are downsizing their office spaces. As a result, cities are experiencing significant commercial vacancy issues across the metropolitan region in both downtown districts as well as in other commercial areas. At the same time, cities are facing a shortage of housing, and a severe shortage of affordable housing. According to recent coverage in the Real Estate Journal, Minnesota Star Tribune and the MN Reformer, nearly a fifth of office space across the country sits empty, with the Twin Cities having one of the highest vacancy rates in the nation at nearly 23%, and the largest properties in our central business districts exceeding 30% vacancy. This presents an opportunity for cities to convert vacant, functionally obsolete, and/or underutilized commercial space to housing units or other higher uses. Cities are utilizing a variety of local tools to respond to this issue but need additional tools and Council Packet Page Number 399 of 476 J3 Attachment 3 resources to address this growing problem across the metropolitan area. The costs for the adaptive reuse of vacant and underutilized properties is expensive and complex. Metro Cities supports state funding, tax credits and policy tools that will assist with the adaptive reuse of vacant commercial space to residential or new types of uses that support the economic growth of cities. Cities need additional policy tools support efforts to: Disincentivize owners from holding vacant and underutilized properties; Target opportunities to increase the city property tax base; Encourage additional housing in commercial corridors; and Authorize tax increment financing to support the conversion of existing commercial non-residential property, including vacant properties, into multi-family housing or new types of uses. HED-14 WORKFORCE READINESS A trained workforce is important to a strong local, regional, and state economy. Cities have an interest in the availability of qualified workers and building a future workforce based on current and future demographics, as part of their economic development efforts. Cities can work with the public and private sectors to address workforce readiness to include removing barriers to education access, addressing racial disparities in achievement and employment gaps, addressing the occupational gender gap, and support training and jobs for people with disabilities. The state has a role to prepare and train a qualified workforce through the secondary, vocational, and higher education systems and job training and retraining programs in the Department of Employment and Economic Development (DEED), including youth employment programs. Metro Cities supports: Increased funding for the Job Skills Partnership, youth employment programs and other workforce training programs administered by the state that lead to jobs that provide a living wage and benefits, support workers of all abilities, and help address racial disparity gaps in employment; Innovative workforce programs and partnerships that foster workforce readiness for a full range of jobs and careers, including skilled municipal jobs and current high opportunity areas such as manufacturing and construction; Investments in programs that address the gender wage gap, including training for women to enter nontraditional careers; Council Packet Page Number 400 of 476 J3 Attachment 3 Maintaining funding for local workforce development boards to support local input and direction for meeting workforce development goals as outlined in state and federal statute; A payroll tax credit for job training programs that invest in employees; and A city’s authority to tie workforce requirements to local public finance assistance. HED-15TAX INCREMENT FINANCING (TIF) Tax Increment Financing (TIF) continues to be the primary tool available for local communities to assist economic development, redevelopment, and housing. Over time, statutory changes have made this critical tool increasingly difficult to use. At the same time, federal and state development and redevelopment resources have been steadily shrinking. The cumulative impact of TIF restrictions, shrinking federal and state redevelopment resources and highly restrictive eminent domain laws constrain cities’ abilities to address problem properties, which leads to an accelerated level of decline of developed cities in the metropolitan area. Thus, the only source of revenue available to accomplish the scope of redevelopment necessary is the value created by the redevelopment itself, or the “increment.” Without the use of the increment, development will either not occur or is unlikely to be optimal. Metro Cities urges the Legislature to: Not adopt any statutory language that would further constrain or directly or indirectly reduce the effectiveness of TIF; Not adopt any statutory language that would allow a county, school district or special taxing district to opt out of a TIF district; Incorporate the Soils Correction District criteria into the Redevelopment District criteria so that a Redevelopment District can be comprised of blighted and contaminated parcels in addition to railroad property; Expand the flexibility of TIF to support a broader range of redevelopment projects; Allow and authorize tax increment financing, including property in existing TIF districts, to support the conversion of existing commercial non-residential property, including vacant properties, into multi-family housing or new types of uses that support economic growth for metropolitan cities; Amend MN Statutes to clarify that tax increment pooling limitations are calculated on a cumulative basis; Increase the ability to pool increments from other districts to support projects; Expand authority for all cities to transfer unobligated pooled increment from a Council Packet Page Number 401 of 476 J3 Attachment 3 housing or redevelopment TIF district to support a local housing trust fund for any eligible expenditure under Minn. Stat. § 462C.16; Modify the housing district income qualification level requirements to allow the levels to vary according to individual communities and/or to support deeply affordable units; Continue to monitor the impacts of tax reform on TIF districts and if warranted provide cities with additional authority to pay for possible TIF shortfalls; Allow for the creation of transit zones and transit-related TIF districts in order to shape development and related improvements around transit stations but not require the use of TIF districts to fund the construction or maintenance of the public transit line itself unless a local community chooses to do so; Allow TIF eligibility expansion to innovative technological products, recognizing that not only physical items create economic value; Support changes to TIF law that will facilitate the development of “regional projects”; Shift TIF redevelopment policy away from a focus on “blight” and “substandard” to “functionally obsolete” or a focus on long range planning for a particular community, reduction in greenhouse gases or other criteria more relevant to current needs; Encourage DEED to do an extensive cost-benefit analysis related to redevelopment, including an analysis of the various funding mechanisms, and an analysis of where the cost burden falls with each of the options compared to the distribution of the benefits of the redevelopment project; Consider creating an inter-disciplinary TIF team to review local exception TIF proposals, using established criteria, and make recommendations to the legislature on their passage; Encourage the State Auditor to continue to work toward a more efficient and streamlined reporting process. There are an increasing number of noncompliance notices that have overturned longstanding practices or limited statutorily defined terms. The Legislature has not granted TIF rulemaking authority to the State Auditor and the audit powers granted by statute are not an appropriate vehicle for making administrative or legislative changes to TIF statutes. If the State Auditor is to exercise rulemaking authority, the administrative power to do so must be granted explicitly by the Legislature. The audit enforcement process does not create a level playing field for cities to challenge the Auditor’s interpretation of statutes. The Legislature should provide a process through which to resolve disputes over TIF policy that is fair to all parties; Council Packet Page Number 402 of 476 J3 Attachment 3 Clarify the use of TIF when a sale occurs after the closing of a district; Revise the substandard building test to simplify, resolve ambiguities and reduce continued threat of litigation; and Amend TIF statutes to address, through extending districts or other mechanisms, shortfalls related to declining market values. HED-16EMINENT DOMAIN Significant statutory restrictions on the use of eminent domain have resulted in higher public costs for traditional public use projects like streets, parks, and sewers, and have all but restricted the use of eminent domain for redevelopment to cases of extreme blight or contamination. The proper operation and long-term economic vitality of our cities is dependent on the ability of a city, its citizens, and its businesses to continually reinvest and reinvent. Reinvestment and reinvention strategies can occasionally conflict with the priorities of individual residents or business owners. Eminent domain is a critical tool in the reinvestment and reinvention process and without it our cities may deteriorate to unprecedented levels before the public reacts. Metro Cities strongly encourages the Governor and Legislature to revisit eminent domain laws to allow local governments to address redevelopment problems before those conditions become financially impossible to address. Specifically, Metro Cities supports: Clarifying contamination standards; Developing different standards for redevelopment to include obsolete structures or to reflect the deterioration conditions that currently exist in the metropolitan area; Allowing for the assembly of multiple parcels for redevelopment projects; Modifying the public purpose definition under Minn. Stat. § 117 to allow cities to more expediently address properties that are vacant or abandoned in areas with high levels of foreclosures, as well as address neighborhood stabilization and recovery; Providing the ability to acquire land from “holdouts” who will now view a publicly funded project as an opportunity for personal gain at taxpayer expense; i.e. allow for negotiation using balanced appraisals for fair relocation costs; Council Packet Page Number 403 of 476 J3 Attachment 3 Examining attorney fees and limit fees for attorneys representing a property owner; Allowing for relocation costs not to be paid if the city and property owner agree to a sale contract; A property owner’s appraisal to be shared with the city prior to a sale agreement; and Appropriately balanced awards of attorney fees and costs of litigation with the outcome of the eminent domain proceeding. HED-17COMMUNITY REINVESTMENT Communities across the metropolitan region have aging residential and commercial structures that need repair and reinvestment. Reinvestment prevents neighborhoods from falling into disrepair, revitalizes communities and protects a city’s tax base. Metro Cities supports state programs and incentives for reinvestment in older residential and commercial/industrial buildings, such as, but not limited to, tax credits and/or property tax deferrals. Historically, the state has funded programs to promote reinvestment in communities, including the “This Old House” program, that allowed owners of older homestead property to defer an increase in their tax capacity resulting from repairs or improvements to the home and “This Old Shop” for owners of older commercial/industrial property that make improvements that increase the property’s market value. HED-18BUSINESS INCENTIVES POLICY Without a thorough study, the Legislature should not make any substantive changes to the Business Subsidy Act, as defined in Minn. Stat. § 116J.993, but should look to technical changes that would streamline both state and local processes and procedures. The Legislature should distinguish between development incentives and redevelopment activities. In addition, in order to ensure cohesive and comprehensive regulations, the legislature should limit regulation of business incentives to the Business Subsidy Act. Metro Cities supports additional legislation that includes tools to help enhance and facilitate economic development and job creation. Metro Cities supports increased flexibility for meeting business subsidy agreements during a state of emergency. Council Packet Page Number 404 of 476 J3 Attachment 3 HED-19 BROADBAND TECHNOLOGY Where many traditional economic development tools have focused on managing the costs and availability of traditional infrastructure – roads, rail, and utilities – the 21st century economy is dependent on reliable, cost effective, high bandwidth communications capabilities. This includes voice, video, data, and other services delivered over cable, telephone, fiber-optic, wireless, and other platforms. The state has increased its role in expanding broadband infrastructure across the state by funding broadband access for residents and businesses. The Governor’s Broadband Task Force regularly recommends updates to state broadband speed goals and funding levels to expand statewide broadband access. The Office of Broadband Development in the Department of Employment and Economic Development (DEED) supports the role of broadband in economic development. The Office coordinates broadband mapping and administers state broadband grant funds. Cities play a vital role in achieving significantly higher broadband speeds. Local units of government are contributing to increasing broadband capacity and ensuring internet connectivity, reliability, and availability. However, attempts have been made in Minnesota and other states to restrict or stop cities from facilitating the deployment of broadband services or forming partnerships with private sector companies to provide broadband services to unserved or underserved residents or businesses. Restricting municipal authority is contrary to existing state law on electric utility service, telecommunications, and economic development. Metro Cities opposes the adoption of state policies that further restrict a city’s ability to finance, construct or operate broadband telecommunications networks. Metro Cities supports: State policies and support programs that substantially increase speed and capacity of broadband services statewide, including facilitating solutions at the local level. The state should offer incentives to private sector service providers to respond to local or regional needs and to collaborate with cities and other public entities to deploy broadband infrastructure capable of delivering sufficient bandwidth and capacity to meet immediate and future local needs as well as policies which seek to position Minnesota as a state of choice for testing next- generation broadband; Metro eligibility for broadband funds, including increased capacity for areas with existing levels of service; Testing and review of street-level broadband speeds and updating of comprehensive statewide street-level mapping of broadband services to identify underserved areas and connectivity issues. Programs and projects that improve broadband adoption, achieve significantly higher broadband speeds, and support efforts to improve digital inclusion by Council Packet Page Number 405 of 476 J3 Attachment 3 ensuring that robust and affordable Internet connectivity is widely available to all Minnesotans. Municipal authority and encouragement of local governments to play a direct role in providing broadband service. The state should clarify that cities have the authority to partner with private entities to finance broadband infrastructure using city bonding authority; Local authority to manage and protect public rights-of-way including public and private infrastructure, to zone, to collect compensation for the use of public assets, or to work cooperatively with and respond to applications from the private sector. Cities may exercise local authority over zoning and land-use decisions for siting, upgrading, or altering wireless service facilities and exercise regulations of structures in the public right-of-way; and Public-private collaborations that support broadband infrastructure and services at the local and regional level, including partnerships and cooperation in providing last mile connections. HED-20CITY ROLE IN ENVIRONMENTAL PROTECTION AND SUSTAINABLE DEVELOPMENT Historically, cities have played a major role in environmental protection, particularly in water quality. Through the construction and operation of wastewater treatment and storm water management systems, cities are a leader in protecting the surface water of the state. In recent years, increased emphasis has been placed on protecting ground water and removing impairments from storm water. In addition, there is increased emphasis on city participation in controlling our carbon footprint and in promoting green development. Metro Cities supports public and private environmental protection efforts to reduce greenhouse gas emissions and to further protect surface and ground water. Metro Cities also supports “green” design and construction techniques to the extent that those techniques have been thoroughly tested and are truly environmentally beneficial, economically sustainable and represent sound building practices. Metro Cities supports additional, feasible environmental protection with adequate funding and incentives to comply. Metro Cities supports state funding for municipal renewable energy objectives. Metro Cities supports sustained state funding for new and existing programs that support local climate action planning, climate resiliency, climate related infrastructure projects including funding and technical support for local level public-private planning initiatives that address climate resiliency issues that impact economic viability in the metropolitan area at a local and regional level. Green jobs represent employment and entrepreneurial opportunities that are part of the green economy, as defined in Minn. Stat. § 116J.437, including the four industry sectors of green products, renewable energy, green services and environmental Council Packet Page Number 406 of 476 J3 Attachment 3 conservation. Minnesota’s green jobs policies, strategies and investments need to lead to high quality jobs with good wages and benefits, meeting current wage and labor laws. HED-21 IMPAIRED WATERS of government should not bear undue cost burdens associated with Local units completed TMDL reports. As recent Total Maximum Daily Load (TMDL) reports show, non-point agricultural sources are producing more runoff pollution than urban areas at a rate of 13:1. Cities must not be required as primary entities for funding the clean-up and protection of state and regional water resources. Benefits of efforts must be proportional to the costs incurred and agricultural sources must be held responsible for their share of costs. Metro Cities supports continued development of the metropolitan area in a manner that is responsive to the market but is cognizant of the need to protect the water resources of the state and metropolitan area. Since all types of properties are required to pay storm water fees, Metro Cities opposes entity-specific exemptions from these fees. Metro Cities supports the goals of the Clean Water Act and efforts at both the federal and state level to implement it. Metro Cities supports continued funding of the framework established to improve the region’s ability to respond to market demands for development and redevelopment, including dedicated funding for surface water impairment assessments, TMDL development, storm water construction grants and wastewater construction grants. Council Packet Page Number 407 of 476 J3Attachment 3 MetropolitanAgencies Council Packet Page Number 408 of 476 J3Attachment 3 MA-1GOALSANDPRINCIPLESFORREGIONALGOVERNANCE The Twin Cities metropolitan region is home to a majority of the state’s population and is poised for significant growth in the next two decades. The region faces significant challenges and opportunities, the responses to which will determine the future success of the region and its competitiveness in the state, national and world economies. The Metropolitan Council manages the growth of the metropolitan region, and cities are responsible for adhering to regional plans as they plan for local growth and service delivery. The region’s cities are the Metropolitan Council’s primary constituency, as regional and local growth are primarily managed through city comprehensive planning implementation and the delivery of public services. To function successfully, the Metropolitan Council must be accountable to and work collaboratively with city governments. The role of the Metropolitan Council is to set broad regional goals and provide cities with technical assistance and incentives to achieve the goals. City governments are responsible for and best suited to provide local zoning, land use planning, development, and service delivery. Any additional roles or responsibilities for the Metropolitan Council should be limited to specific statutory assignments or authorization and should not usurp or conflict with local roles or processes unless such changes have the consent of the region’s cities. Metro Cities supports an economically strong and vibrant region, and the effective, efficient, and equitable provision of regional infrastructure, services, and planning throughout the metropolitan area. Metro Cities supports the provision of approved regional systems and planning that are provided more effectively, efficiently, or equitably on a regional level than by individual local units of government. The Metropolitan Council must involve cities in the delivery of regional services and planning, be responsive to local perspectives on regional issues and be required to provide opportunities for city participation on Council advisory committees and task forces. The Metropolitan Council must involve cities at all steps of planning, review and implementation of the regional development guide, policy plans, systems statements, and local comprehensive plan requirements to ensure transparency, balance and Council adherence to its core mission and functions. These processes should allow for stakeholder input before policies and plans are released for comment and finalized. Any additional functions for the Metropolitan Council should not be undertaken unless authorized specifically by state law. Council Packet Page Number 409 of 476 J3 Attachment 3 MA-2 REGIONALGOVERNANCESTRUCTURE Metro Cities supports the appointment of Metropolitan Council members by the Governor with four-year, staggered terms for members to stabilize ideological shifts and provide for continuity of knowledge on the Council, which is appropriate for a long-range planning body. The appointment of the Metropolitan Council Chair should coincide with the term of the Governor. Metro Cities supports a nominating committee process that maximizes participation and input by local officials. Metro Cities supports expanding the nominating committee from seven to 13 members, with a majority of a 13-member committee being local elected officials. Of the local officials appointed to a nominating committee, two thirds should be elected city officials, appointed by Metro Cities. Consideration should be given to the creation of four separate nominating committees, with committee representation from each quadrant of the region. Metro Cities supports having the names of recommended nominees or other individuals under consideration for appointment to the Council by the Governor to be made public at least 21 days prior to final selection by the Governor, and a formal public comment period before members are appointed to the Council. Metro Cities supports the appointment of Metropolitan Council members who have demonstrated the ability to work with cities in a collaborative manner, commit to meet with local government officials regularly and who are responsive to the circumstances and concerns of cities in the district that they represent on the Council. Council members should understand the diversity and the commonalities of the region, and the long-term implications of regional decision-making. A detailed position description outlining the required skills, time commitment and understanding of regional and local issues and concerns should be clearly articulated and posted in advance of the call for nominees. Metro Cities supports opportunities for local officials to provide input during the decennial legislative redistricting process for the Metropolitan Council and supports transparency in the redistricting process. MA-3 COMPREHENSIVE ANALYSIS AND OVERSIGHT OF METROPOLITAN COUNCIL A comprehensive analysis of the Metropolitan Council’s functions and structure was conducted by a Governor’s Blue-Ribbon Committee in 2020. Metro Cities supports specific findings by this committee that recommended four-year staggered terms for Metropolitan Council members with members appointed by the governor, an expanded nominating committee with a majority of local officials on the committee, and the publication of nominees prior to their appointment. These findings are consistent with Metro Cities’ legislative policy on regional governance. The metropolitan region will continue to expand while simultaneously facing significant challenges for the effective, efficient, and equitable provision of resources and infrastructure. Metro Cities supports an objective study of the Metropolitan Council’s activities and services as well as its geographical jurisdiction to ensure that its services are Council Packet Page Number 410 of 476 J3 Attachment 3 positioned to be effective and adequate in addressing the future needs of the region. Such work must include the participation of local officials. The Metropolitan Council should also examine its scope of services to determine their benefit and efficiency and be open to alternative methods of delivery to assure that services are provided at high levels of effectiveness for the region. Metro Cities supports appropriate legislative oversight of the Metropolitan Council to regularly review the Council’s activities, and to provide transparency and accountability of its functions and operations. MA-4 FUNDINGREGIONALSERVICES The Metropolitan Council should continue to fund regional services and activities through a combination of user fees, property taxes, and state and federal grants and should set user fees through an open process that includes public notices and hearings. User fees should be uniform and set at a level that supports effective and efficient public services based on commonly accepted industry standards and allows for sufficient reserves to ensure long-term service and fee stability. Fee proceeds should be used to fund regional services or programs for which they are collected. Metro Cities supports the use of property taxes and user fees to fund regional projects so long as the benefit conferred on the region is proportional to the fee or tax, and the fee or tax is comparable to the benefit cities receive in return. MA-5 REGIONALSYSTEMS Regional systems are statutorily defined as transportation, aviation, wastewater treatment and recreational open space. The purpose of the regional systems and the Metropolitan Council’s authority over the systems is outlined in state law. The Metropolitan Council must seek a statutory change to alter the focus or expand the reach of any of these systems. Systems plans prepared by the Metropolitan Council should be specific in terms of size, location, and timing of regional investments to allow for consideration in local comprehensive planning. Systems plans should also clearly state the criteria by which local plans will be judged for consistency with regional systems. Additional regional systems should be established only if there is a compelling metropolitan problem or concern best addressed through the designation. Common characteristics of the existing regional systems include public ownership of the system and its components and established regional or state funding sources. These characteristics should be present in any new regional system that might be established. Water supply and housing do not meet necessary established criteria for regional systems. Any proposed additional system must have an established regional or state funding source. Council Packet Page Number 411 of 476 J3 Attachment 3 MA-6 REGIONALWATERSUPPLYPLANNING The Metropolitan Council is statutorily authorized to carry out planning activities to address water supply needs of the metropolitan area. A Metropolitan Area Water Supply Advisory Committee (MAWSAC) that includes state agency representatives and local officials was established to assist the Council in developing a master water supply plan that includes recommendations for clarifying the roles of local, regional, and state governments, streamlining, and consolidating approval processes and recommending future planning and capital investments. The Master Water Supply Plan serves as a framework to assist communities in water supply planning, without usurping local decision-making. Many cities also conduct their own analyses for use in water supply planning. As the Metropolitan Council continues to assess the region’s water supply and water sustainability, it must work cooperatively with local policymakers and local professional staff to ensure an on-going base of information that is sound, credible, and verifiable, and considers local information, data, cost-benefit analyses, and projections before any policy recommendations are issued. Metro Cities encourages the Metropolitan Council to consider the inter-relationships of wastewater treatment, storm water management and water supply. Any state and regional regulations and processes should be clearly stated in the Master Water Supply Plan. Further, regional monitoring and data collection benefits should be shared expenses between the regional and local units of government. Metro Cities supports Metropolitan Council planning activities to address regional water supply needs and water planning activities as prescribed in statute. Metro Cities opposes the insertion of the Metropolitan Council as another regulator in the water supply arena. Further, while Metro Cities supports regionally coordinated efforts to address water supply issues in the metropolitan area, Metro Cities opposes the elevation of water supply to “Regional System” status, or the assumption of Metropolitan Council control and management of municipal water supply infrastructure. Metro Cities supports the technical advisory committee to the MAWSAC that maximizes participation by municipal officials and helps to ensure sound scientific analyses and models are developed with local expertise and input before legislative solutions are considered. Metro Cities supports efforts to identify capital funding sources to assist with municipal water supply projects. Any fees or taxes for regional water supply planning activities must be consistent with activities prescribed in Minn. Stat. § 473. 1565, and support activities specifically within the metropolitan region. Council Packet Page Number 412 of 476 J3 Attachment 3 MA-7 REVIEW OF LOCAL COMPREHENSIVE PLANS Local officials identified concerns with the submission and review processes for 2018 local plans including requests for information beyond what should be necessary for the Metropolitan Council to review local plans for consistency with regional systems, regional requirements that evolved as local plans were prepared and finalized and finding plans to be incomplete or requiring detailed information on items of a local rather than regional nature, among others. As the new regional development guide Imagine 2050 is implemented, the Metropolitan Council must work with Metro Cities and local officials to address any necessary improvements to the comprehensive planning review processes in advance of the next comprehensive planning cycle. This work should be conducted with ongoing opportunities for input and consultation with local officials as any modifications to comprehensive planning review processes are considered. This work shall include reviewing processes for comprehensive plan amendments and identifying areas for improvement. In reviewing local comprehensive plans and plan amendments, the Metropolitan Council should: Recognize that its role is to review and comment, unless it is found that the local plan is more likely than not to have a substantial impact on or contain a substantial departure from one of the four system plans; Be aware of statutory time constraints imposed by the Legislature on plan amendments and development applications; Provide for immediate effectuation of plan amendments that have no potential for substantial impact on systems plans; Require the information needed for the Metropolitan Council to complete its review, but not prescribe additional content or format beyond that which is required by the Metropolitan Land Use Planning Act (LUPA); Work in a cooperative and timely manner toward the resolution of outstanding issues. When a city’s local comprehensive plan is deemed incompatible with the Metropolitan Council’s systems plans, Metro Cities supports a formal appeal process that includes a peer review. Metro Cities opposes the imposition of sanctions or monetary penalties when a city’s local comprehensive plan is deemed incompatible with the Metropolitan Council’s systems plans or the plan fails to meet a statutory deadline when the city has made legitimate, good faith efforts to meet Metropolitan Council requirements; Work with affected cities and other organizations such as the Pollution Control Agency, Department of Natural Resources, Department of Health, and other stakeholders to identify common ground and resolve conflicts between respective goals for flexible residential development and achieving consistency with the Council’s system plans and policies; and Council Packet Page Number 413 of 476 J3 Attachment 3 Require entities, such as private businesses, nonprofits, or local units of government, among others, whose actions could adversely affect a comprehensive plan, to be subject to the same qualifications and/or regulations as the city. MA-8 COMPREHENSIVEPLANNINGPROCESS ies supports examining the comprehensive planning process to make sure Metro Cit that the process is streamlined and avoids excessive cost burdens or duplicative or unnecessary planning requirements by municipalities in the planning process. Metro Cities supports resources to assist cities in meeting regional goals as part of the comprehensive planning process, including planning grants and technical assistance. Metro Cities supports funding and other resources from the Metropolitan Council for the preparation of comprehensive plan updates, including grant funding. Grants and other resources should be provided to all eligible communities through a formula that is equitable and recognizes varying city needs and capacities. MA-9 COMPREHENSIVE PLANNING SCHEDULE Cities are required to submit comprehensive plan updates to the Metropolitan Council every 10 years. A city’s comprehensive plan represents a community’s vision of how the city should grow and develop or redevelop, ensure adequate housing, provide essential public infrastructure and services, protect natural areas, and meet other community objectives. Metro Cities recognizes the merit of aligning comprehensive plan timelines with the release of census data. However, the comprehensive plan process is expensive, time consuming and labor intensive for cities, and the timing for the submission of comprehensive plans should not be altered solely to better align with census data. If sufficient valid reasons exist for the schedule for the next round of comprehensive plans to be changed or expedited, cities should be provided with financial resources to assist them in preparing the next round of plans. Metro Cities opposes cities being forced into a state of perpetual planning because of regional and legislative actions. Should changes be made to the comprehensive planning schedule, Metro Cities supports financial and other resources to assist cities in preparing and incorporating policy changes in local planning efforts. Metro Cities supports a 10- year time frame for comprehensive plan update submissions. Metro Cities supports the Metropolitan Council’s consideration to reduce requirements for 10-year Comprehensive Plan updates for cities under 2,500 residents. Council Packet Page Number 414 of 476 J3 Attachment 3 MA-10 LOCAL ZONING AUTHORITY ments are responsible for zoning and local officials should have full Local govern authority to approve variances to remain flexible in response to the unique land use needs of their own community. Local zoning decisions, and the implementation of cities’ comprehensive plans, should not be conditioned upon the approval of the Metropolitan Council or any other governmental agency. Metro Cities supports local authority over land use and zoning decisions and opposes the creation of non-local appeals boards with the authority to supersede city zoning decisions, and statutory modifications that would diminish the ability of cities to set and implement local zoning ordinances and policies. MA-11 REGIONAL GROWTH The most recent regional population forecast prepared by the Metropolitan Council projects a population of 3,555,000 people by 2040 and 3,820,000 by 2050. Metro Cities recognizes cities’ responsibility to plan for sustainable growth patterns and the integration of transportation, housing, parks, open space, and economic development that will result in a region better equipped to manage population growth, provide a high quality of life for a growing and increasingly diverse metropolitan area population, and improved environmental health. In developing local comprehensive plans to fit within a regional framework, adequate state and regional financial resources and incentives and maximum flexibility for local planning decisions are imperative. The regional framework should assist cities in managing growth while being responsive to the individual qualities, characteristics and needs of metropolitan cities, and should encourage sub-regional cooperation and coordination. In order to accommodate growth in a manner that preserves the region’s high quality of life: Natural resource protection will have to be balanced with growth, development, and reinvestment; Significant new resources will have to be provided for transportation and transit; and New households will have to be incorporated into the core cities, first and second ring suburbs, and developing cities through both development and redevelopment. In order for regional and local planning to result in the successful implementation of regional policies; The State of Minnesota must contribute additional financial resources, particularly in the areas of transportation and transit, community reinvestment, affordable Council Packet Page Number 415 of 476 J3 Attachment 3 housing development, and the preservation of parks and open space. If funding for regional infrastructure is not adequate, cities should not be responsible for meeting the growth forecast set forth by the Metropolitan Council; The Metropolitan Council and Legislature must work to pursue levels of state and federal transportation funding that are adequate to meet identified transportation and transit needs in the metropolitan area; The Metropolitan Council must recognize the limitations of its authority and continue to work with cities in a collaborative, incentives-based manner; The Metropolitan Council must recognize the various needs and capacities of its many partners, including but not limited to cities, counties, economic development authorities and nonprofit organizations, and its policies must be balanced and flexible in their approach; Metropolitan counties, adjacent counties and school districts must be brought more thoroughly into the discussion due to the critical importance of facilities and services such as county roads and public schools in accommodating forecasted growth; and Greater recognition must be given to the fact that the “true” metropolitan region extends beyond the traditional seven-county area and the need to work collaboratively with adjacent counties in Minnesota and Wisconsin, and the cities within those counties. The region faces environmental, transportation, and land use issues that cannot be solved by the seven-county metro area alone. Metro Cities supports an analysis to determine the impacts of Metropolitan Council’s growth management policies and infrastructure investments on the growth and development of the collar counties, and the impacts of growth in the collar counties on the metropolitan area. Metro Cities opposes statutory or other regulatory changes that interfere with established regional and local processes to manage growth in the metropolitan region, including regional systems plans, systems statements, and local comprehensive plans. Such changes erode local planning authority as well as the efficient provision of regional infrastructure, disregard established public processes and create different guidelines for communities that may result in financial, environmental, and other impacts on surrounding communities. MA-12 NATURAL RESOURCEPROTECTION Metro Cities recognizes the Metropolitan Council’s efforts to compile and maintain an inventory and assessment of regionally significant natural resources for providing local communities with additional information and technical assistance. The state and region play significant roles in the protection of natural resources. Any steps taken by the state or Metropolitan Council regarding the protection of natural resources must recognize that: The protection of natural resources is significant to a multi-county area that is Council Packet Page Number 416 of 476 J3 Attachment 3 home to more than 50 percent of the state’s population and a travel destination for many more. Given the limited availability of resources and the artificial nature of the metropolitan area’s borders, and the numerous entities that are involved in protecting the natural resources of the region and state, neither the region nor individual metropolitan communities would be well served by assuming primary responsibility for financing and protecting these resources; The completion of local Natural Resource Inventories and Assessments (NRI/A) is not a regional system nor is it a required component of local comprehensive plans under the Metropolitan Land Use Planning Act; The protection of natural resources should be balanced with the need to accommodate growth and development, reinvest in established communities, encourage more affordable housing and provide transportation and transit connections; and Decisions about the zoning or land use designations, either within or outside a public park, nature preserve, or other protected area are, and should remain, the responsibility of local units of government. The Metropolitan Council’s role with respect to climate change should be focused on the stewardship of its internal operations (wastewater, transit) and working collaboratively with local governments to provide information, best practices, technical assistance and incentives around responses to climate change. Metro Cities urges the Legislature and the Metropolitan Council to provide financial assistance for the preservation of regionally significant natural resources. MA-13 INFLOW ANDINFILTRATION (I/I) The Metropol itan Council has identified a majority of sewered communities in the metropolitan region to be contributing excessive inflow and infiltration (I/I) into the regional wastewater system or to be on the threshold of contributing excessive inflow and infiltration. Inflow and infiltration are terms for the ways that clear water (ground and storm) makes its way into sanitary sewer pipes and gets treated, unnecessarily, at regional wastewater plants. The number of identified communities is subject to change, depending on rain events, and any city in the metropolitan area can be affected. The Metropolitan Council establishes a surcharge on cities determined to be contributing unacceptable amounts of I/I into the wastewater system. The charge is waived when cities meet certain parameters through local mitigation efforts. Metro Cities recognizes the importance of controlling I/I because of its potential environmental and public health impacts, because it affects the size, and therefore the cost, of wastewater treatment systems and because excessive I/I in one city can affect development capacity of another. However, there is the potential for cities to incur Council Packet Page Number 417 of 476 J3 Attachment 3 increasingly exorbitant costs in their ongoing efforts to mitigate excessive I/I. Therefore, managing I/I at a regional as well as local level, is critical to effective mitigation and cost management. Metro Cit ies continues to monitor the surcharge program and supports continued reviews of the methodology used to measure excess I/I to ensure that the methodology appropriately normalizes for precipitation variability and the Council’s work with cities on community specific issues around I/I. Metro Cities supports state financial assistance for metro area I/I mitigation through future Clean Water Legacy Act appropriations or similar legislation and encourages the Metropolitan Council to partner in support of such appropriations. Metro Cities also supports resources, including identified best practices, information on model ordinances, public education and outreach, and other tools, to local governments to address inflow/ infiltration mitigation for private properties. A 2023 task force recommended parameters for a private property inflow-infiltration program that will be funded through a portion of the regional wastewater charge. As a program gets underway, Metro Cities will monitor program criteria for transparency and accessibility for eligible cities. Metro Cities supports continued state capital assistance to provide grants to metropolitan cities for mitigating inflow and infiltration problems into municipal wastewater collection systems. Grant funding should continue to be structured so that all eligible cities have access to this funding assistance. MA-14 SEWER AVAILABILITYCHARGE(SAC) Metro Cities supports a SAC program that emphasizes equity, transparency, simplification, and lower rates. Metro Cities supports principles for SAC that include program transparency and simplicity, equity for all served communities and between current and future users, support for cities’ sewer fee capacities, administrative reasonableness, and weighing any program uses for specific goals against impacts to program equity, transparency, and simplicity. As such, Metro Cities opposes the use of the SAC mechanism to subsidize or incent specific Metropolitan Council goals and objectives. Input from local officials should be sought if the SAC reserve is proposed to be used for any purpose other than debt service, including pay-as-you-go (PAYGO). Metro Cities opposes increases to the SAC rate while the reserve is projected to exceed the Metropolitan Council’s minimum reserve balance, without the express engagement of city officials in the metropolitan area. Metro Cities supports current SAC program criteria that use gross square feet in making SAC determinations, and do not require a new SAC determination for business remodels that do not change the use of the property. These changes were Council Packet Page Number 418 of 476 J3 Attachment 3 the result of a 2018 task force that made recommendations to simplify the SAC program for users, and to reduce incidents of “surprise” SAC charges. Metro Cities supports current SAC policy that enhances flexibility in the SAC credit structure for redevelopment purposes and supports continued evaluation of SAC fees to determine if they hinder redevelopment. Metro Cities supports the Metropolitan Council providing details on how any proposed changes to the SAC rate are determined. Metro Cities supports a periodic review of MCES’ customer service policies, to ensure that its processes are responsive and transparent to cities, businesses, and residents. Metro Cities supports continued outreach by MCES to users of the SAC program to promote knowledge and understanding of SAC charges and policies. Any modifications to the SAC program or structure should be considered only with the participation and input of local officials in the metropolitan region. Metro Cities supports a “growth pays for growth” approach to SAC. If state statutes are modified to establish a “growth pays for growth” method for SAC, the Metropolitan Council should convene a group of local officials to identify any technical changes necessary for implementing the new structure. Metro Cities supports allowing the Council to utilize a SAC ‘transfer’ mechanism when the SAC reserve fund is inadequate to meet debt service obligations. Any use of the transfer mechanism must be done so within parameters prescribed by state law and with appropriate notification and processes to allow local official input and should include a timely ‘shift back’ of any funds that were transferred from the wastewater fund to the SAC reserve fund. Efforts should be made to avoid increasing the municipal wastewater charge in use of the transfer mechanism. MA-15 FUNDING REGIONAL PARKS & OPEN SPACE In the seven-county metropolitan area, regional parks essentially serve as state parks, and the state should continue to provide capital funding for the acquisition, development, and improvement of these parks in a manner that is equitable with funding for state parks. State funding apart from Legacy funds should equal 40 percent of the operating budget for regional parks. Legacy funds for parks and trails should be balanced between the metropolitan region and greater Minnesota. Metro Cities supports state funding for regional parks and trails that is fair, creates a balance of investment across the state, and meets the needs of the region. MA-16 LIVABLECOMMUNITIES The Livable Communities Act (LCA) under Minn. Stat. 473.25 is administered by the Metropolitan Council and provides a voluntary, incentive-based approach to affordable housing development, tax base revitalization, job growth and preservation, brownfield clean up, mixed-use, transit-friendly development, and redevelopment. Metro Cities Council Packet Page Number 419 of 476 J3 Attachment 3 supports this approach that is widely accepted and utilized by cities. Since its inception in 1995 the LCA program has generated billions of dollars of private and public investment, created thousands of jobs and added thousands of affordable housing units in the region. Metro Cities monitors the LCA programs on an ongoing basis and supports any necessary program modifications to ensure that the LCA program criteria are flexible and promote the participation of all participating communities, and to ensure all metropolitan area cities are eligible to participate in the Livable Communities Demonstration Account (LCDA). Metro Cities supports statutory goals and criteria established for the Livable Communities Act and opposes any changes to LCA programs that constrain flexibility provided for in statutory goals, program requirements and criteria. Metro Cities monitors any potential modifications to the LCA program to ensure that program criteria are responsive to local needs within the context of overall LCA objectives. Metro Cities supports increased funding and flexible eligibility requirements in the LCDA to assist cities with development that may not be exclusively market driven or market proven in the location, in order to support important local development and redevelopment goals. Metro Cities supports ongoing outreach by the Council on the LCA programs and continued efforts to ensure that LCA criteria are sufficiently flexible to meet the range of identified program objectives. Metro Cities opposes reductions in funding for Livable Communities Act programs and the transfer or use of LCA funds for purposes outside of the LCA program. Metro Cities supports statutory modifications in the LCDA to reflect linkages among goals, municipal objectives, and Metropolitan Council system objectives. Metro Cities supports the use of LCA funds for projects in transit improvement areas, as defined in statute, if funding levels for general LCA programs are adequate to meet program goals and the program remains accessible to participating communities. d program modifications should be considered with input by local officials Any propose before changes to are enacted or implemented. Use of interest earnings from LCA funds should be limited to administrative program costs. Remaining interest earnings should be considered to be part of LCA funds and used to fund grants from established LCA accounts using funding criteria. MA-17DENSITY Metro Cities recognizes the need for a density policy, including minimum density requirements, that allows the Metropolitan Council to effectively plan for and deliver cost efficient regional infrastructure and services. Regional density requirements must recognize that local needs and priorities vary, and requirements must be sufficiently Council Packet Page Number 420 of 476 J3 Attachment 3 flexible to accommodate local circumstances as well as the effect of market trends on local development and redevelopment activity. The Metropolitan Council asks cities to plan for achieving minimum average net densities across all areas identified for new growth, development, or redevelopment. Because each community is different, how and where density is guided is determined by the local unit of government, regional density requirements should use minimum average net densities and provide flexibility to accommodate individual city circumstances. Metro Cities opposes parcel-specific density requirements as such requirements are contrary to the need for local flexibility in a regional policy. Any regional density policy must use local data and local development patterns and must accommodate local physical and land use constraints such as, but not limited to, wetlands, public open space, trees, water bodies and rights-of-way, and any corresponding federal and state regulations imposed on local governments when computing net densities. The Metropolitan Council must coordinate with local governments in establishing or revising regional density requirements and should ensure that regional density and plat monitoring reports comprehensively reflect local densities and land uses. MA-18 COMPREHENSIVE PLANS ANDENVIRONMENTAL REVIEW Comprehensive plans are essential guiding documents for cities and lay out a range of future land use scenarios, which are intended to allow for the orderly and economic development of the metropolitan region. To allow for local flexibility and functionality, as well as to best align local goals with regional requirements, it is essential that local comprehensive plans remain as high-level visioning documents that guide future development as well as other city policies. Metro Cities supports any further statutory changes, if necessary, to clarify that cities’ comprehensive plans are exempt from review under the Minnesota Environmental Rights Act (MERA). Council Packet Page Number 421 of 476 J3 Attachment 3 Name Title Organization Graeme Allen Councilmember New Brighton Daniel Buchholtz City Administrator Spring Lake Park Amelia Cruver Finance Director St. Louis Park Lori Economy-Chief Financial OfficerBloomington Scholler Greg Evansky Councilmember Victoria Inderia Falana GovernmentRelations Representative Minneapolis Ryan Garcia City Administrator South St. Paul LaTonia Green Finance Director Brooklyn Park Kelly Grinnell Finance Director Chanhassen Dana Hardie City ManagerVictoria Laurie Hokkanen City ManagerChanhassen Steven Huser GovernmentRelations Representative Minneapolis **Beth Johnston IGR RepresentativeLeague of MN Cities Brad Larson City Administrator Savage Tom Lawell City Administrator Apple Valley **Daniel Lightfoot IGR Representative League of MN Cities Kristi Luger City ManagerExcelsior Devin Massopust City ManagerNewBrighton Madeline Mitchell Senior Budget Analyst St. Paul Darin Nelson Finance Director Minnetonka Justin Olsen Councilmember Cottage Grove Loren Olson Senior Government Relations RepresentativeMinneapolis **Hannah Pallmeyer Government Affairs Liaison Metropolitan Council Eric Petersen IGR AssociateSt. Paul Paula Ramaley Councilmember Minnetonka JenniferRhode Deputy City ManagerBurnsville Gillian Rosenquist Councilmember Golden Valley Michael Sable City ManagerMaplewood Cara Schulz Councilmember Burnsville *Steven Stahmer City Administrator Rogers Katie Topinka IGR Director Minneapolis Christina Volkers City Administrator Oakdale Brad Wiersum MayorMinnetonka **PierreWillette Senior Government Relations RepresentativeLeague of MN Cities **Owen Wirth IGR Representative League of MN Cities Nyle Zikmund City Administrator Mounds View *Committee Chair **Guest/Non-City Official Council Packet Page Number 422 of 476 J3 Attachment 3 Name Title Organization Kristin Asher Public Works Director Richfield Josh Berg Councilmember Elko NewMarket Kissy Coakley Councilmember Minnetonka Marc Culver City Engineer Brooklyn Park Inderia Falana Government Relations Representative Minneapolis Clancy Ferris Legislative and Grants Analyst St. Louis Park **Anne Finn IGR Director League ofMNCities Tom Fischer Mayor Little Canada Tom Fletcher Mayor Greenwood Gary Hansen Councilmember Eagan Sean Hayford Councilmember Richfield Oleary Debra Heiser Engineering DirectorSt. Louis Park Clint Hooppaw Mayor Apple Valley Taylor Hubbard Mayor Chaska Steven Huser Government Relations Representative Minneapolis **Craig Johnson IGR Representative League of MN Cities **Beth Johnston IGR Representative League of MN Cities Dan Kealey Councilmember Burnsville **Tori Kee IGR Representative/Attorney League of MN Cities Brad Larson City Administrator Savage Brady Lee Public Works Director Victoria **Daniel Lightfoot IGR Representative League of MN Cities Brent Mareck City Manager Carver Amáda Márquez Mayor Columbia Heights Simula Justin Miller City Administrator Lakeville Kari Niedfeldt-Mayor New Brighton Thomas *Heidi Nelson City Administrator Maple Grove Loren Olson Senior Government Relations Representative Minneapolis **Hannah Pallmeyer Government Affairs Liaison Metropolitan Council Christian Pederson Councilmember Victoria Eric Petersen IGR Associate St. Paul Chelsea Petersen Assistant City Administrator Shakopee Nick Peterson City Engineer St. Paul Mark Ray Public Works Director Burnsville Tim Sandvik City Manager Robbinsdale Jay Stroebel City Manager Brooklyn Park Council Packet Page Number 423 of 476 J3 Attachment 3 Michael Thompson Public Works Director Plymouth Kate Thunstrom City AdministratorSt. Francis Katie Topinka IGR DirectorMinneapolis Patrick Trudgeon City Manager Roseville **Owen Wirth IGR Representative League of MN Cities Jeff Weisensel MayorRosemount Wally Wysopal CityManagerFridley Nyle Zikmund City Administrator MoundsView *Committee Chair**Guest/Non-City Official Council Packet Page Number 424 of 476 J3 Attachment 3 Brett Angell Community Development DirectorRogers Karen Barton Community Development Director St. Louis Park Tim Benetti Community Development Director Apple Valley Josh Berg CouncilmemberElkoNewMarket Megan Alford CouncilmemberSavage Jenn Brewington Community & Economic Development DirectorVictoria Connie Buesgens CouncilmemberColumbia Heights Heather Butkowski City Administrator Lauderdale Aaron Chirpich City Manager Columbia Heights Kissy Coakley CouncilmemberMinnetonka Jeffrey Dahl City Administrator Woodbury Samantha DiMaggio Economic Development ManagerChanhassen Ryan Evanson CouncilmemberFridley Inderia Falana Government Relations Representative Minneapolis Mitchell Forney Community Development Director Columbia Heights James Fritts Housing & Economic Development CoordinatorWoodbury Ryan Garcia City Administrator South St. Paul Andrew Gitzlaff Community Development Director Oakdale Ben Gozola Asst. Director of CommunityAssets and Development New Brighton **Shannon Guernsey Executive Director Minnesota NAHRO Janice Gundlach Community Development Director Roseville Maurice Harris CouncilmemberGoldenValley Stephanie Hawkinson Affordable HousingDevelopment Manager and Planning Edina Clint Hooppaw Mayor Apple Valley Steven Huser Government Relations RepresentativeMinneapolis Cheryl Jacobson City Administrator Mendota Heights Rachel James CouncilmemberColumbia Heights **Beth Johnston IGR Representative Leagueof MN Cities **Daniel Lightfoot IGR RepresentativeLeague of MN Cities Holly Masek Port Authority Administrator Bloomington Paul Mogush Planning Director Brooklyn Park Loren Olson Senior Government Relations Representative Minneapolis **Hannah Pallmeyer Government Affairs Liaison Metropolitan Council Danette Parr Community Development Director Maplewood Eric Petersen IGR Associate St. Paul Julie Pointner CouncilmemberPlymouth Rebecca Schack CouncilmemberMinnetonka Cara Schulz CouncilmemberBurnsville Eric Searles Asst. Community Development DirectorWoodbury Tracy Shimek Housing & EconomicDevelopmentCoordinator White Bear Lake Lori Sommers Senior Planner Plymouth Mike Supina CouncilmemberEagan Jeff Thomson Community Development Director Burnsville Council Packet Page Number 425 of 476 J3Attachment 3 Katie Topinka IGR DirectorMinneapolis JulieUrban Housing&RedevelopmentManagerRichfield JasonWedel City ManagerPrior Lake Kimberly Wilburn CouncilmemberMinnetonka **Pierre Willette Senior Government Relations RepresentativeLeague of MN Cities **Owen Wirth IGR RepresentativeLeague of MN Cities *JulieWischnack CommunityDevelopmentDirectorMinnetonka *Committee Chair **Guest/Non-City Official Council Packet Page Number 426 of 476 J3 Attachment 3 Name Title Organization Josh Berg Councilmember Elko New Market Jenn Brewington Community & Economic Development Director Victoria Deb Calvert Councilmember Minnetonka Macheal Collins City Clerk Burnsville Marc Culver City EngineerBrooklyn Park Inderia Falana GovernmentRelations Representative Minneapolis Clancy Ferris Legislative & Grants AnalystSt. Louis Park Tom Fletcher MayorGreenwood Mike Funk City ManagerMinnetonka *Gary Hansen Councilmember Eagan Steven Huser GovernmentRelations Representative Minneapolis Cheryl Jacobson City Administrator Mendota Heights **Beth Johnston IGR Representative League of MN Cities Elizabeth Kautz MayorBurnsville **Daniel Lightfoot IGR Representative League of MN Cities Gregg Lindberg City ManagerBurnsville Amáda Márquez MayorColumbia Heights Simula Loren Olson Senior Government Relations RepresentativeMinneapolis **Hannah Pallmeyer Government Affairs Liaison Metropolitan Council Eric Petersen IGR AssociateSt. Paul Michael Sable City ManagerMaplewood Jason Steffenhagen Councilmember New Brighton Jay Stroebel City ManagerBrooklyn Park Katie Topinka IGR Director Minneapolis **Owen Wirth IGR Representative League of MN Cities Nyle Zikmund City Administrator Mounds View *Committee Chair **Guest/Non-City Official Council Packet Page Number 427 of 476 J4 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manager REPORT FROM: Mike Darrow, Assistant City Manager / Human Resource Director PRESENTER: Mike Darrow, Assistant City Manager / Human Resource Director AGENDA ITEM: YMCA Lease Extension Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Summary: The City Council is being asked to approve the Sixth Amendment for the Maplewood Community Center Operating Agreement with the YMCA of the North. This lease would expire on April 30, 2027. Recommended Action: Motion to approve the Sixth Amendment to Maplewood Community Center Operating Agreement. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: na Strategic Plan Relevance: Safety Focus Area: Sustainability Focus Area: Cultivate a connected, engaged community Development Focus Area: Invest in people and placemaking A Sixth Amendment is necessary to allow time for additional community engagement and pre- design concepts for a future Maplewood Community Center. Background: The original 10-year lease agreement was executed in November 2016. This amendment extends the lease term through April 30, 2027, allowing time for pre-design concept development, community engagement efforts, and evaluation of potential funding sources, including a Local Option Sales Tax. These activities are intended to support planning and funding for both the short- term and long-term needs of the Maplewood Community Center. Attachments: 1. Maplewood Community Center Operating Agreement Council Packet Page Number 428 of 476 J4, Attachment 1 SIXTH AMENDMENT TO MAPLEWOOD COMMUNITY CENTER OPERATING AGREEMENT This Sixth Amendment to the Maplewood Community Center Operating Agreement (the “Amendment”) is made and entered into by and between the City of Maplewood, a Minnesota municipal corporation (the “City”), and the Young Men’s Christian Association of the North, a Minnesota nonprofit corporation (the “YMCA”). RECITALS WHEREAS, the City and the YMCA entered into the Maplewood Community Center Operating Agreement effective November 1, 2016 (the “Operating Agreement”), pursuant to which the YMCA operates the Maplewood Community Center; and WHEREAS, the City and the YMCA have worked collaboratively to address both short-term and long-term facility needs related to the Maplewood Community Center; and WHEREAS, the City and the YMCA desire to amend the lease term set forth in Section II of the Operating Agreement; and WHEREAS, the YMCA maintains a subagreement with Ashland Productions related to the use of the Maplewood Community Center; and WHEREAS, the City and the YMCA desire to amend certain financial arrangements set forth in Section IV of the Operating Agreement; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the City and the YMCA agree as follows: 1.Lease Term Amendment. Section II of the Operating Agreement is hereby amended to provide that the lease term shall expire on April 30, 2027, unless earlier terminated in accordance with the Operating Agreement, as amended. 2.Subagreement with Ashland Productions. The YMCA acknowledges and agrees that its subagreement with Ashland Productions shall have a term no later than April 30, 2027, and shall not extend beyond the lease term established by this Amendment. 3.Funding Contingency; Transition. The parties acknowledge that this lease extension is contingent upon the City securing funding through funding sources that include a Local Option Sales Tax (LOST) for improvements to the Maplewood Community Center which could involve over $20,000,000 in improvements. In the event such LOST funding is not secured, the City and the YMCA Council Packet Page Number 429 of 476 J4, Attachment 1 shall mutually commence a formal termination and transition process no later than ninety (90) days prior to April 30, 2027, in accordance with applicable provisions of the Operating Agreement. 4. Financial Arrangements. Effective January 1, 2026 through April 30, 2027, Section IV of the Operating Agreement is repealed and replaced as follows: a. YMCA Responsibilities. The YMCA shall be solely responsible for all operating costs associated with the Maplewood Community Center. b. City Responsibilities. The City shall be responsible only for costs related to immediate life-safety or building safety concerns, and for design, communication, and consultation services related to pre- design planning for the facility. c. Capital Payments. No additional capital contribution payments shall be made by the City to the YMCA during the period of this lease agreement. 5. Subagreement Operations. The YMCA acknowledges and agrees that its subagreement with Ashland Productions shall have a term no later than April 30, 2027, and shall not extend beyond the lease term established by this Amendment. 6. Effect of Amendment. Except as expressly amended herein, all terms and conditions of the Operating Agreement shall remain in full force and effect. In the event of a conflict between this Amendment and the Operating Agreement, the terms of this Amendment shall control. 7. Amendment. This Amendment may be amended only by a written instrument executed by authorized representatives of both parties. 8. Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Council Packet Page Number 430 of 476 J4, Attachment 1 SIGNATURES IN WITNESS WHEREOF, the parties have executed this Sixth Amendment to the Maplewood Community Center Operating Agreement as of the dates set forth below. CITY OF MAPLEWOOD, MINNESOTA a Minnesota municipal corporation By: _________________________________ Name: _______________________________ Title: Mayor Date: _______________________________ By: _________________________________ Name: _______________________________ Title: City Manager Date: _______________________________ YOUNG MEN’S CHRISTIAN ASSOCIATION OF THE NORTH a Minnesota nonprofit corporation By: _________________________________ Name: _______________________________ Title: Authorized Representative Date: _______________________________ By: _________________________________ Name: _______________________________ Title: Authorized Representative Date: _______________________________ Council Packet Page Number 431 of 476 For the permanent record: Meeting Date: 1/26/2026 Agenda Item: J4, Attachment 1 – Revised SIXTH AMENDMENT TO MAPLEWOOD COMMUNITY CENTER OPERATING AGREEMENT This Sixth Amendment to the Maplewood Community Center Operating Agreement (the “Amendment”) is made and entered into by and between the City of Maplewood, a Minnesota municipal corporation (the “City”), and the Young Men’s Christian Association of the North, a Minnesota nonprofit corporation (the “YMCA”). RECITALS WHEREAS, the City and the YMCA entered into the Maplewood Community Center Operating Agreement effective November 1, 2016 (the “Operating Agreement”), pursuant to which the YMCA operates the Maplewood Community Center; and WHEREAS, the City and the YMCA have worked collaboratively to address both short-term and long-term facility needs related to the Maplewood Community Center; and WHEREAS, the City and the YMCA desire to amend the lease term set forth in Section II of the Operating Agreement; and WHEREAS, the YMCA maintains a subagreement with Ashland Productions related to the use of the Maplewood Community Center; and WHEREAS, the City and the YMCA desire to amend certain financial arrangements set forth in Section IV of the Operating Agreement; ./7Ǿ 4(%2%&/2%, in consideration of the mutual covenants and agreements contained herein, the City and the YMCA agree as follows: 1. Lease Term Amendment. Section 6.1of the Operating Agreement is hereby amended to provide that the lease term shall expire on April 30, 2027, unless earlier terminated in accordance with the Operating Agreement, as amended. 2. Subagreement with Ashland Productions. The YMCA acknowledges and agrees that its subagreement with Ashland Productions shall have a term no later than April 30, 2027, and shall not extend beyond the lease term established by this Amendment. 3. Transition The City is attempting to secure funding for improvements that may include Local Option Sales Tax (LOST) for improvements to the Maplewood Community Center which could involve over $20,000,000 in improvements. For the permanent record: Meeting Date: 1/26/2026 Agenda Item: J4, Attachment 1 – Revised 4. Financial Arrangements. Effective January 1, 2026 through April 30, 2027, Section IV of the Operating Agreement is repealed and replaced as follows: a. YMCA Responsibilities. The YMCA shall be solely responsible for all operating costs associated with the Maplewood Community Center and for Capital Costs outlined in 4.c. . b. City Responsibilities. The City shall be responsible for capital costs related to immediate life-safety or building safety concerns as outlined in 4.c. and for design, communication and consultation services related to pre-design planning for the facility. c. Capital Payments. In the event an emergency capital expenditure or capital request arises that is necessary to protect life, safety, or the structural integrity of the Premises, the City and the YMCA shall confer in good faith to develop a written mutual agreement defining the nature and scope of such emergency and identifying mutually agreed-upon funding sources required to address and resolve the emergency. No emergency capital work shall commence absent such written agreement, unless immediate action is required to prevent imminent harm. 5. Subagreement Operations. The YMCA acknowledges and agrees that its subagreement with Ashland Productions shall have a term no later than April 30, 2027, and shall not extend beyond the lease term established by this Amendment. 6. Effect of Amendment. Except as expressly amended herein, all terms and conditions of the Operating Agreement shall remain in full force and effect. In the event of a conflict between this Amendment and the Operating Agreement, the terms of this Amendment shall control. 7. Amendment. This Amendment may be amended only by a written instrument executed by authorized representatives of both parties. 8. Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 9. Effective Date. This agreement shall go into effect on January 28, 2026. For the permanent record: Meeting Date: 1/26/2026 Agenda Item: J4, Attachment 1 – Revised SIGNATURES IN WITNESS WHEREOF, the parties have executed this Sixth Amendment to the Maplewood Community Center Operating Agreement. CITY OF MAPLEWOOD, MINNESOTA a Minnesota municipal corporation By: _________________________________ Name: _______________________________ Title: Mayor Date: _______________________________ By: _________________________________ Name: _______________________________ Title: City Manager Date: _______________________________ YOUNG MEN’S CHRISTIAN ASSOCIATION OF THE NORTH a Minnesota nonprofit corporation By: _________________________________ Name: _______________________________ Title: Authorized Representative Date: _______________________________ By: _________________________________ Name: _______________________________ Title: Authorized Representative Date: _______________________________ J5 CITY COUNCIL STAFF REPORT Meeting Date January 26, 2026 REPORT TO: Michael Sable, City Manager REPORT FROM: Michael Sable, City Manager PRESENTER:Michael Sable, City Manager AGENDA ITEM: Resolution Requesting Legislative Approval of Local Option Sales Tax Action Requested:MotionDiscussionPublic Hearing Form of Action:ResolutionOrdinanceContract/AgreementProclamation Summary: The City of Maplewood is considering a request of the Minnesota Legislature to allow for a voter referendum on a Local Option Sales Tax during the 2026 Legislative Session. Recommended Action: Motion to approve the resolution supporting the authority to impose a local sales tax to fund specific capital improvements providing regional benefit, establishing the duration of the tax and the revenue to be raised by the tax, and authorizing the city to issue bonds supported by the sales tax revenue. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: SafetyMaintain and enhance infrastructure and environmental systems Sustainability Maintain strong financial health and stability Development Invest in people and placemaking Background: Local option sales taxes are a tool that cities can use to fund major capital projects without burdening property taxes, capture revenue from regional visitors, and support long-term community investment strategies. Sales Tax proceeds can only be used for “regionally significant” capital projects. State law limits these projects to a single building or structure, including associated infrastructure needed to safely access or use the building or structure; improvements within a single park or named recreation area; or a contiguous trail. Council Packet Page Number 432 of 476 J5 On November 24, 2025, the City Council reviewed a presentation about the process and the potential next steps for considering a Local Option Sales Tax. On January 12, 2026, The City Council discussions continued around the City’s Local Option Sales Tax, a key issue for project selection and prioritization. Council discussed: Projects and priorities Tradeoffs between competing infrastructure needs Alignment with the City’s long-term financial forecast and debt capacity The most recent estimate shows that 61% of the sales tax proceeds would come from outside of the City of Maplewood. In addition, a 0.5% sales tax could generate up to $83.6 million towards projects, which is significantly higher than previous estimates, with a maximum potential of $87.7 million, per analysis from Ehlers and Associates, the city’s financial advisor. Several projects were identified for consideration: East Metro Public Safety Training Facility (estimated cost $34 million) Maplewood Community Center (estimated repair cost $20 million) estimated upgrades pending Maplewood Nature Center (estimated cost $6.3 million) Parks and Parks Amenities in South Maplewood (estimated cost $6.4 million) It should be noted that the total maximum amount of projects cannot exceed $87.7 million. Per Minnesota Statute, the deadline for notification of the city’s intent is January 31, 2026. Attachments: 1.Resolution 2.Local Option Sales Tax Analysis for Maplewood 3.Ehlers and Associates – Sales Tax Bond Estimates 4.LMC – Local Option Sales Tax Process Council Packet Page Number 433 of 476 J5, Attachment 1 CITYOFMAPLEWOOD RESOLUTION NO. _______ RESOLUTIONSUPPORTINGTHEAUTHORITYTOIMPOSEA LOCAL SALES TAX TO FUND SPECIFIC CAPITAL IMPROVEMENTS PROVIDING REGIONALBENEFIT, ESTABLISHING THE DURATIONOFTHE TAX AND THE REVENUE TO BE RAISEDBY THETAX,ANDAUTHORIZING THE CITY TO ISSUE BONDS SUPPORTED BY THESALES TAX REVENUE WHEREAS, Minnesota Statutes, Section 297A.99 (the “Local Sales Tax Act”), provides the City of Maplewood (the “City”) with authority to impose a local sales tax if the State Legislature approves the local sales tax through the creation of a special law and that tax is approved by the voters at a general election; and WHEREAS, the Local Sales Tax Act requires the City Council to adopt a resolution indicating its approval of the tax, outlining the details of the proposed local sales tax, identifying proposed projects and setting forth the regional significance of the proposed projects prior to submitting the request for a local sales tax to the State Legislature; and WHEREAS, the City has engaged community residents and businesses to facilitate strategic investment in the region and community and proposes to request special legislation to impose a local sales tax to raise revenues to fund one or more of the following capital projects (the “Projects”): 1.EAST METRO PUBLIC SAFETY TRAINING FACILITY; and 2.MAPLEWOOD COMMUNITY CENTER; and 3.MAPLEWOOD NATURE CENTER; and 4.PARKS AND PARK AMENITIES IN SOUTH MAPLEWOOD; and WHEREAS, the Projects will result in benefits to both the residents and businesses of the City and to non-resident visitors and businesses; and WHEREAS, the Projects cannot be adequately funded with existing resources. Funding the Projects with a local sales tax will more closely distribute the costs of the Projects to the users of the facilities; and WHEREAS, the Projects are estimated to cost approximately $66,700,000, plus an amount equal to interest on and the costs of issuance of any bonds; and WHEREAS, the City estimates that a local sales tax of one-half percent (0.5%) would generate approximately $87,700,000 over 20 years; and WHEREAS, the City has provided a detailed description and documentation of the regional significance of each of the Projects, including the share of the economic benefit to or use MA745-1-1072306.v1 Council Packet Page Number 434 of 476 J5, Attachment 1 of each project by persons residing, or businesses located, outside of the City, includingbut not limited to the materials attached hereto as EXHIBIT A; and WHEREAS, the estimated local sales tax revenue needed for each of the Projects and the estimated amount of time to raise that amount of revenue is as follows: 1. EAST METRO PUBLIC SAFETY TRAINING FACILITY: The City expects to collect up to $_______ of sales tax revenue, plus the costs of collecting and administering the tax and interest on and the costs of issuing any associated bonds, for the East Metro Public Safety Training Facility Project, over 20 years; and 2. M APLEWOOD COMMUNITY CENTER: The City expects to collect up to $ _____________ of sales tax revenue, plus the costs of collecting and administering the tax and the costs of issuing any associated bonds, for the Maplewood Community Center Project, over 20 years; and 3. MAPLEWOOD NATURE CENTER: The City expects to collect up to $ _____________ of sales tax revenue, plus the costs of collecting and administering the tax and the costs of issuing any associated bonds, for the Maplewood Nature Center Project, over 20 years; and 4. PARKS AND PARK AMENITIES IN SOUTH MAPLEWOOD: The City expects to collect up to $ _____________ of sales tax revenue, plus the costs of collecting and administering the tax and the costs of issuing any associated bonds, for the Parks and Park Amenities in South Maplewood Project, over 20 years; and WHEREAS, the Local Sales Tax Act authorizes the imposition of a general sales tax if permitted by special law of the Minnesota Legislature; and WHEREAS, the Local Sales Tax Act requires the City to pass a resolution authorizing such a local tax and to obtain Legislative approval prior to approval by the local voters to enact the local tax. THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: 1. The Council supports the authority to impose a general local sales tax of one-half of one percent (0.5%) for a period of the lesser of 20 years or the retirement of all debt (and all related issuance and interest costs) to fund all or a portion of the Projects. 2. Upon approval of this resolution, the City will submit the adopted resolution and documentation of regional significance by January 31, 2026 to the chairs and ranking minority members of the Minnesota House and Senate Taxes committees for approval and passage of a special law authorizing the tax. 3. Upon legislative approval and passage of the special law authorizing the tax, the City will adopt a resolution accepting the new law, which will be filed with a local approval certificate to the Office of the Minnesota Secretary of State before the following Legislative session. 2 MA745-1-1072306.v1 Council Packet Page Number 435 of 476 J5, Attachment 1 4.The City will put one or more detailed ballot questions, which includes a separate question for each of the Projects, on a general election ballot for local voter approval within two years of receiving legislative authority. 5. If one or more ballot questions pass, the City will also pass an ordinance imposing the tax and notify the Minnesota Commissioner of Revenue at least 90 days before the first day of the calendar quarter that the tax will be imposed. 6. Upon completion of the aforementioned requirements, the local sales tax will commence and run for a period of 20 years or until a sum sufficient to fund the voter-approved Projects, including related debt costs, is raised, whichever comes first. 7. The Council further finds that it is in the best interest of the health, welfare, and safety of the City and its residents and it is necessary and expedient to the sound financial management of the affairs of the City that the acquisition and betterment of the Projects, or any part thereof, be financed in whole or in part by the issuance and sale of the City’s general obligation bonds pursuant to Minnesota Statutes, Chapter 475, as amended, in one or more series in an aggregate principal amount not to exceed $_______________ plus an amount equal to interest and the costs of the issuance of any bonds. The City may accept an offer to purchase the Bonds, and the City may sell the Bonds, at a price that results in the receipt of original issue premium in any amount. 8. The City staff and consultants are authorized and directed to take all actions necessary or convenient to carry out the intent of this resolution. Dated: January 26, 2026 Marylee Abrams, Mayor ATTEST: Andrea Sindt, City Clerk 3 MA745-1-1072306.v1 Council Packet Page Number 436 of 476 J5, Attachment 1 EXHIBIT A Description and Documentation of Regional Significance of the Projects A-1 MA745-1-1072306.v1 Council Packet Page Number 437 of 476 J5, Attachment 2 EXTENSION CENTER FOR COMMUNITY VITALITY Local Option Sales Tax Analysis for Maplewood, MN ESTIMATED CONTRIBUTIONS OF RESIDENTS AND NON-RESIDENTS TO A LOCAL OPTION SALES TAX Authored by Eric King REPORT SPONSOR: MAPLEWOOD, MINNESOTA Council Packet Page Number 438 of 476 J5, Attachment 2 Local Option Sales Tax Analysis for Maplewood ESTIMATED CONTRIBUTIONS OF RESIDENTS AND NON-RESIDENTS TO A LOCAL OPTION SALES TAX October 2025 Authored by Eric King, Extension Educator, University of Minnesota Extension Department of Community Development Report Reviewers: Kathryn Leys, University of Minnesota Extension, Department of Community Development Sponsor: City of Maplewood © 2022 Regents of the University of Minnesota. All rights reserved. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Direct requests to 612-625-8233. Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material. Local Option Sales Tax Analysis for Maplewood, MN 1 Council Packet Page Number 439 of 476 J5, Attachment 2 Table of Contents SUMMARY of FINDINGS .............................................................................................. 3 BACKGROUND AND METHODOLOGY .......................................................................... 6 TRADE AREA ANALYSIS BY MERCHANDISE CATEGORY ................................................ 7 Vehicles and Parts ................................................................................................... 7 Building Materials ................................................................................................... 8 Food and Groceries ................................................................................................. 9 Furniture Stores, Electronics, and Appliances ........................................................ 10 General Merchandise Stores ................................................................................. 11 Health and Personal Items .................................................................................... 12 Gas/Convenience Stores ....................................................................................... 13 Apparel/Clothing................................................................................................... 14 Leisure Goods, All Other Miscellaneous Retail ...................................................... 15 Amusement and Recreation .................................................................................. 16 Accommodations .................................................................................................. 17 Eating/Drinking Establishments ............................................................................ 18 Repair and Maintenance ....................................................................................... 19 Personal Services/Laundry .................................................................................... 20 Retail (Non-Store) and Other Services ................................................................... 21 Construction, Manufacturing, Utilities, Wholesale Operations, Transportation, and Sales Suppressed for Business Confidentiality ....................................................... 22 APPENDIX A: RESEARCH ON THE EFFECTS OF A LOCAL OPTION SALES TAX ............... 23 APPENDIX B: DEFINITIONS OF TERMS ....................................................................... 25 Local Option Sales Tax Analysis for Maplewood, MN 2 Council Packet Page Number 440 of 476 J5, Attachment 2 SUMMARYOF FINDINGS University of Minnesota Extension conducted a study to estimate the proportion ofsales proceeds attributedtoboth Maplewoodresidentsandnon-residents. Using 2023sales and usetax data available from the Minnesota Department of Revenue (MN Revenue),Extension estimated that non-residents account for 60.1percentof taxable sales subject to a local option sales tax (LOST). In 2023, total taxable sales in Maplewoodwere $765.03million. MN Revenue analysts estimate that 99.3% oftaxable sales wouldbe subjectto a LOST. With 60.1percent of sales derived from non-resident spending, Extension estimated that Maplewoodresidents spent $303.2million of the total $760.0million in taxable sales subject to a LOST. If the tax were in place in 2023, a0.5percentlocal option sales tax would have garnered $3,800,000millionin tax proceedsaccording to MN Department of Revenue analysts. Maplewoodresidents would have contributed $1,516,200in taxes,and non-residents would have contributed $2,283,800in 2023.Based on these estimates, each Maplewoodresident would have paid, on average,an additional $36.11in sales taxin 2023. Thisreportis based on atrade area analysis comparingactual taxable sales to potential sales. This is calculatedby multiplying the Maplewoodpopulation in 2023(MN Demographic Center) by the Minnesota average per capita salesfor each category,and then adjusting for the countypersonal income factor. This initial analysisprovided an estimate of retail and service purchases made by Maplewoodresidents. For each merchandise group, the estimates for two types of purchaserscountyresidents and otherswere calculatedand adjusted consideringthe area economy. These adjustments were based on informed estimates and were aimed, in part, at reducing potentialoverestimates of the sales tax share attributable to non-residents. Assumptions and calculations areincludedfor major retail and service categories so local decision makers can adjust totals if they have more nuanced insight. Several factors and features ofMaplewoodeconomy helped frame the analysis forthe different merchandise categories: Residents of nearby Figure 1: Maplewoodworker in-flow and out-flow communities caneasilyaccess Maplewoodbusinesses. For this analysis, cross-hauling hasthe general effect of increasing non- resident spendingas Maplewood is a central shopping hub in the region. Maplewoodhas slightly less workers entering the cityfor employment than residents who leave for work(Figure 1). In this dynamic,commutersoftenshop Inflow and outflow of wage earners. for goods andservices near Source: 2022U.S. Census Bureau On-The-Map where they workand those commuting into the city purchase in the city. Local Option Sales Tax Analysis for Maplewood, MN 3 Council Packet Page Number 441 of 476 J5, Attachment 2 Figure 2 shows the estimated percentage of salesacross all merchandise categories attributedto both residents and non-residents in 2023. These estimates are based on the adjusted analysis to more accurately reflect the counteconomic and consumption circumstances. Based on Figure 2: Estimated 2023Taxable Sales Subject to LOST these findings, Extension estimatescityresidents Taxable SalesPercent of Sales represent39.9percent of all taxable retail and service Cityresidents$303,240,00039.9% salessubject to the tax Non-residents$456,760,00060.1% ($303.2million), and the remaining 60.1percent ($456.8million) are attributed to non-residents. The total taxable Figure 3: Total taxable sales in Maplewoodfrom 2014-2023 sales in the city hovered around $600 $900.00 million between 2014- 2019(Figure 3).Total $800.00 sales droppedoff $700.00 slightly during the $600.00 2020 global pandemic, and have $500.00 since increasedover $400.00 the past threeyears. $300.00 This provides some sense of the stability $200.00 and trajectoryof a $100.00 LOST going forward. $- Extension forecasted 2014201520162017201820192020202120222023 taxable sales subject to the local tax for Source: Minnesota Department of Revenue 2023, 2024, and 2025 using a simple exponential smoothing forecast model that employs a moving weighted average and a 95% confidence interval to provide an upper and lower bound to the estimate (Figures 5and 6). This model estimates total tax proceeds in 2024to be between an upperlimit of $4,173,274 and a lower limit of $3,458,834. Considering the historic disruption of the pandemic and its uneven effect on business categories, this forecast is an unlikely scenario based only on past trends. National evidence shows that home-focused businesses like food, building materials, furniture, and general merchandise did well through the pandemic, whereas dining, accommodations, and amusement saw record sales decreases. The increase in sales over the previous three years further complicates any forecast, though based on historical data, movement towards the Upper Confidence Bound seems more likely than forecast. Local Option Sales Tax Analysis for Maplewood, MN 4 Council Packet Page Number 442 of 476 J5, Attachment 2 Figure 5: Forecast for Tax Proceeds based on Past Trends2013to 2022 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2014201520162017201820192020202120222023202420252026 ValuesForecast Lower Confidence BoundUpper Confidence Bound Figure 6: Forecast withUpper and Lower Bound 2023-25 ForecastLower BoundUpper Bound 2024$3,816,054 $3,458,834 $4,173,274 2025$3,864,007 $3,383,178 $4,344,836 2026$3,911,960 $3,333,153 $4,490,767 Use taxes also affectthetax proceeds from a local option sales tax. Use taxes derive from countybusinesses purchasing products from out-of-state sources and in other Minnesota locations.Use taxes are often less consistent and more difficult to estimate accurately than sales taxes. In 2023, the countyreceived $1,320,914in use (not sales)tax proceeds.It would have garnered $97,845for a LOSTat the 0.5percentrate. Policymakers must also consider the impacts that a LOST may have on consumer purchasing behavior, particularly whether it will result in aloss of consumer purchases to other jurisdictions. Extension examined records of 11 citiesthat enacted a local option sales tax between 1999 and 2006 (information available on the Minnesota Department of Revenue website). Records do not indicate a major purchasing change due to the additional sales tax, and most of the jurisdictions have shown continued sales growth (see Appendix A). These communities, however,may not be comparable to Maplewood. All communities included in thisanalysis are locatedoutside the Twin Cities metro area and may retainmoreshoppers than communities in the metro area where one caneasily switch spending from one jurisdiction to another. Local Option Sales Tax Analysis for Maplewood, MN 5 Council Packet Page Number 443 of 476 J5, Attachment 2 BACKGROUND AND METHODOLOGY Community economics educators at University of Minnesota Extension provide applied research and education to help community and business partners make better informed decisions. In recent years, Minnesota has adopted laws enabling local governments to enact a local option sales tax. Extension has assisted these administrations in estimating their potential tax proceeds and the portion of taxes paid by local residents. This report estimates the proportion of tax proceeds generated by Maplewood residents compared to non-residents. The most recently available state sales tax data (2023) from the Minnesota Department of Revenue (MN Revenue) was used. Trade Area Analysis and Calculations Extension conducted a trade area analysis of retail and service sales in select merchandise categories, estimating the amount of Potential sales estimate the dollar taxable sales subject to sales taxes made by both local residents amounts for purchases made by local and non-residents. Use tax is a much smaller portion of the total residents if local residents spend as much collection compared to sales tax proceeds. It is also estimated as the average Minnesota resident. using a different formula. Potential sales are calculated by the Extension calculated potential sales for the county in each following formula: merchandise category and compared this calculation to actual (T ÷ PMn) x PO x (YWC ÷YMn) = potential taxable sales from the Minnesota Department of Revenue sales sales tax statistics for the same category. Actual sales greater than potential sales indicate the county attracts sales from outside T = Total Minnesota taxable sales for a its boundaries or has sales greater than one would expect from merchandise category its residents. Extension used the difference between potential and actual sales to set reasonable estimates of spending by PMn = 2023 population of Minnesota residents and non-residents across all categories. These (5,800,386) estimates also helped inform adjustments for each category. Potential sales calculations are based on average statewide PO = 2023 population of Maplewood spending by merchandise category and the population of the (41,989) county, then adjusted by the level of income in Maplewood. Specifically, potential sales result from county population, state YWC = Per capita income of Maplewood per capita taxable sales, and the index of income (see sidebar residents ($69,310) and Appendix B). YMn = Per capita income of Minnesota The following section details the initial and adjusted trade area residents ($72,557) calculations for all merchandise categories. The sections labeled nalysis with Adjustments lists the final estimate of sales generated by non-residents. A rationale for adjustments and conclusions is also included. Online sales have been left out of the estimates for this analysis as data for these types of transactions by jurisdiction are not available before a local option sales tax is enacted. After a local option sales tax is enacted, sales tax is collected for online sales for delivered purchases. Extension estimates about 10-15% of sales are done online by households. Local Option Sales Tax Analysis for Maplewood, MN 6 Council Packet Page Number 444 of 476 J5, Attachment 2 TRADE AREA ANALYSIS BY MERCHANDISE CATEGORY The following pages provide detailed analysis by merchandise category. Vehicles and Parts 11.4 percent of total taxable retail and service sales The 27 businesses in this retail category include repair parts, snowmobiles, boats, trailers, and recreational vehicles. Sales of cars and other on-road vehicles are not included in this category since they are subject to a different tax. ($Millions) $83.53 Actual taxable sales $27.99 -Potential sales $55.54 = $ variance 198.4% = as % of potential Unadjusted Trade Area Analysis $27.99 Potential taxable sales to residents $55.54 Surplus $83.53 Total 66.5% Surplus percentage Analysis with Adjustments 84% Capture rate of Maplewood residents $23.39 Residents' $ share $60.14 Non-Residents' $ share $83.53 Total 72.0% Non-resident share per group Analysis for Vehicles and Parts in Maplewood. This category includes 27 businesses specializing in repair parts, snowmobiles, boats, trailers, and recreational vehicles, excluding on-road vehicles which are taxed separately. Actual taxable sales totaled $83.53 million, significantly exceeding potential sales of $27.99 million, resulting in a $55.54 million surplus, or 198.4% of potential sales. Extension estimates the capture rate of Maplewood residents at 84%, with residents contributing $23.39 million and non-residents accounting for $60.14 million, representing 72% of total sales. This substantial surplus indicates that Maplewood serves as a strong regional destination for recreational vehicles and related parts. The high proportion of non-resident spending suggests that local businesses are successful in attracting customers from outside the community, likely due to competitive pricing, product variety, and regional accessibility. Local Option Sales Tax Analysis for Maplewood, MN 7 Council Packet Page Number 445 of 476 J5, Attachment 2 Building Materials 17.1 percent of total taxable retail and service sales These 10 businesses sell lumber, hardware, paint, wallpaper, tile, hardwood floors, roofing, fencing, ceiling fans, lawn equipment, and garden items. ($Millions) $125.90 Actual taxable sales $60.01 Potential sales $65.89 = $ variance 109.8% = as % of potential Unadjusted Trade Area Analysis $60.01 Potential sales to residents $65.89 Surplus $125.90 Total 52.3% Non-resident share per group Analysis with Adjustments 78% Capture rate of Maplewood residents $46.58 Residents' $ share $79.32 Non-residents' $ share $125.90 Total 63.0% Non-resident share per group Analysis for Building Materials Maplewood. This sector includes 10 businesses offering products such as lumber, hardware, paint, wallpaper, tile, hardwood floors, roofing, fencing, ceiling fans, lawn equipment, and garden items. Actual taxable sales reached $125.90 million, well above the potential sales of $60.01 million, producing a $65.89 million surplus, or 109.8% of potential sales. Extension estimates a capture rate of 78% among Maplewood residents, who contributed $46.58 million to total sales. Non-residents accounted for $79.32 million, or 63% of total sales. This strong improvement products. The high proportion of non-resident spending reflects the ability of local businesses to draw shoppers from outside the city, likely due to broad product key retail destination in the region. Local Option Sales Tax Analysis for Maplewood, MN 8 Council Packet Page Number 446 of 476 J5, Attachment 2 Food and Groceries 6.1 percent of total taxable retail and service sales The 44 businesses in this merchandise group include grocery stores, delis, bakeries, and butcher shops that sell food to be prepared at home. Liquor stores are also included in this group. ($Millions) $44.73 Actual taxable sales $32.10 -Potential sales $12.62 = $ variance 39.3% = as % of potential Unadjusted Trade Area Analysis $32.10 Potential sales to residents $12.62 Surplus $44.73 Total 28.2% Non-resident share per group Analysis with Adjustments 70% Capture rate of Maplewood residents $22.36 Residents' $ share $22.36 Non-residents' $ share $44.73 Total 50.0% Non-resident share per group Analysis for Food and Groceries in Maplewood. This sector includes 44 businesses, such as grocery stores, delis, bakeries, butcher shops, and liquor stores, providing products intended for preparation at home. Actual taxable sales totaled $44.73 million, exceeding the potential sales of $32.10 million by $12.62 million, representing a 39.3% surplus. Extension estimates the capture rate of Maplewood residents at 70%, with local residents contributing $22.36 million in sales. Non- residents also accounted for $22.36 million, or 50% of total sales. This substantial surplus indicates that Maplewood is not only retaining a significant share of local grocery spending but also attracting considerable spending from non- as a regional destination for food and grocery shopping. The equal contribution of resident and non- Local Option Sales Tax Analysis for Maplewood, MN 9 Council Packet Page Number 447 of 476 J5, Attachment 2 Furniture Stores, Electronics, and Appliances 6.3 percent of total taxable retail and service sales* These 27 businesses primarily include household-type appliances, sewing machines, cameras, computers, other electronic goods, furniture, beds, carpeting, window coverings, kitchenware, and wood-burning stoves. ($Millions) $45.94 Actual taxable sales $34.40 -Potential sales $11.54 = $ variance 33.5% = as % of potential Unadjusted Trade Area Analysis $34.40 Potential sales to residents $11.54 Surplus $45.94 Total 25.1% Non-resident share per group Analysis with Adjustments 64% Capture rate of Maplewood residents $22.05 Residents' $ share $23.89 Non-residents' $ share $45.94 Total 52.0% Non-resident share per group Analysis for Furniture Stores, Electronics, and Appliances and service sales in Maplewood. This sector includes 27 businesses offering a range of household products, including appliances, furniture, beds, carpeting, window coverings, kitchenware, computers, cameras, and other electronic goods. Actual taxable sales totaled $45.94 million, exceeding the potential sales of $34.40 million by $11.54 million, a 33.5% surplus. Extension estimates the capture rate of Maplewood residents at 64%, with residents contributing $22.05 million and non-residents accounting for $23.89 million, or 52% of total sales. This surplus indicates that Maplewood is a regional draw for furniture and electronic goods, successfully attracting spending from outside the community. The roughly equal split between resident and non-resident spending accessibility make Maplewood a strong retail destination for durable household goods. Local Option Sales Tax Analysis for Maplewood, MN 10 Council Packet Page Number 448 of 476 J5, Attachment 2 General Merchandise Stores 17.8 percent of total taxable retail and service sales* The 14 businesses in this category sell general merchandise and are unique because they have the equipment and staff needed to sell a large variety of goods from a single location. This includes department stores, superstores, dollar stores, and variety stores. ($Millions) $130.77 Actual taxable sales $59.53 potential sales $71.24 = $ variance 119.7% = as % of potential Unadjusted Trade Area Analysis $59.53 Potential sales to residents $71.24 Surplus $130.77 Total 54.5% Non-resident share per group Analysis with Adjustments 72% Capture rate of Maplewood residents $43.15 Residents' $ share $87.62 Non-Residents' $ share $130.77 Total 67.0% Non-resident share per group Analysis for General Merchandise Stores Maplewood. This group comprises 14 businesses that sell a wide variety of goods from single locations, including department stores, superstores, dollar stores, and variety stores. Actual taxable sales totaled $130.77 million, far exceeding the potential sales of $59.53 million by $71.24 million, a 119.7% surplus. Extension estimates the capture rate of Maplewood residents at 72%, with residents contributing $43.15 million and non-residents accounting for $87.62 million, or 67% of total sales. This substantial surplus indicates that Maplewood is a regional hub for general merchandise, drawing a majority of its sales from customers outside the community. The high non-resident spending share selection, and convenient shopping experiences, making the city a strong destination for broader regional retail activity. Local Option Sales Tax Analysis for Maplewood, MN 11 Council Packet Page Number 449 of 476 J5, Attachment 2 Health and Personal Items 1.6 percent of total taxable retail and service sales Stores selling prescription drugs, food supplements, vision supplies, cosmetics, and hearing aids are among the 28 businesses included in this merchandise group. ($Millions) $11.80 Actual taxable sales $7.48 Potential sales $4.31 = $ variance 57.7% = as % of potential Unadjusted Trade Area Analysis $7.48 Potential sales to residents $4.31 Surplus $11.80 Total 36.6% Non-resident share per group Analysis with Adjustments 68% Capture rate of Maplewood residents $5.07 Residents' $ share $6.72 Non-residents' $ share $11.80 Total 57.0% Non-resident share per group Analysis for Health and Personal Items sales in Maplewood. This sector includes 28 businesses selling prescription drugs, food supplements, vision supplies, cosmetics, and hearing aids. Actual taxable sales totaled $11.80 million, surpassing the potential sales of $7.48 million by $4.31 million, a 57.7% surplus. Extension estimates the capture rate of Maplewood residents at 68%, with residents contributing $5.07 million and non-residents accounting for $6.72 million, representing 57% of total sales. This surplus indicates that Maplewood is a regional destination for health and personal care products, attracting substantial spending from outside the community. The high proportion of non-. Local Option Sales Tax Analysis for Maplewood, MN 12 Council Packet Page Number 450 of 476 J5, Attachment 2 Gas/Convenience Stores 1.2 percent of total taxable retail and service sales This merchandise group covers 13 businesses selling convenience items at a store that also sells fuel. ($Millions) $9.14 Actual taxable sales $14.43 -Potential sales ($5.29) = $ variance -36.7% = as % of potential Unadjusted Trade Area Analysis $14.43 Potential sales to residents ($5.29) Surplus $9.14 Total -57.9% Non-resident share per group Analysis with Adjustments 57% Capture rate of Maplewood residents $8.22 Residents' $ share $0.91 Non-residents' $ share $9.14 Total 10.0% Non-resident share per group Analysis for Gas/Convenience Stores sales in Maplewood. This group includes 13 businesses that sell convenience items alongside fuel. Actual taxable sales totaled $9.14 million, which is $5.29 million below the potential sales of $14.43 million, reflecting a 36.7% sales leakage. Extension estimates the capture rate of Maplewood residents at 57%, with residents contributing $8.22 million and non-residents accounting for only $0.91 million, or 10% of total sales. This negative variance indicates that a suggesting opportunities for local retailers to better capture resident demand. Local Option Sales Tax Analysis for Maplewood, MN 13 Council Packet Page Number 451 of 476 J5, Attachment 2 Apparel/Clothing 1.5 percent of total taxable retail and service sales This merchandise group includes 37 businesses selling new clothing and accessories, jewelry, shoes, bridal items, clocks, and luggage. ($Millions) $10.79 .9Actual taxable sales $7.77 Potential sales $3.02 = $ variance 38.9% = as % of potential Unadjusted Trade Area Analysis $7.77 Potential sales to residents $3.02 Surplus $10.79 Total 28.0% Non-resident share per group Analysis with Adjustments 62% Capture rate of Maplewood residents $4.86 Residents' $ share $5.94 Non-residents' $ share $10.79 Total 55.0% Non-resident share per group Analysis for Apparel/Clothing Maplewood. This sector includes 37 businesses offering new clothing and accessories, jewelry, shoes, bridal items, clocks, and luggage. Actual taxable sales reached $10.79 million, surpassing the potential sales of $7.77 million by $3.02 million, representing a 38.9% surplus. Extension estimates the capture rate of Maplewood residents at 62%, with residents contributing $4.86 million and non-residents accounting for $5.94 million, or 55% of total sales. The surplus indicates that Maplewood is successfully attracting apparel and clothing shoppers from outside the city, making this category a regional draw. The high share of non- resident spending suggests that local stores likely benefit from competitive pricing, product variety, and accessibility, positioning Maplewood as a notable retail destination for clothing and fashion-related goods. Local Option Sales Tax Analysis for Maplewood, MN 14 Council Packet Page Number 452 of 476 J5, Attachment 2 Leisure Goods, All Other Miscellaneous Retail 10.0 percent of total taxable retail and service sales 86 businesses are part of this group, including florists, used merchandise stores, pet supply stores, sporting goods, books, music, hobby items, fabrics, toys, and other retailers. ($Millions) $73.22 Actual taxable sales $29.01 Potential sales $44.21 = $ variance 152.4% = as % of potential Unadjusted Trade Area Analysis $29.01 Potential sales to residents $44.21 Surplus $73.22 Total 60.4% Non-resident share per group Analysis with Adjustments 71% Capture rate of Maplewood residents $20.50 Residents' $ share $52.72 Non-residents' $ share $73.22 Total 72.0% Non-resident share per group Analysis for Miscellaneous Retail taxable retail and service sales in Maplewood. This sector includes 86 businesses, covering a diverse mix of retailers such as florists, used merchandise stores, pet supply stores, sporting goods, books, music, hobby items, fabrics, toys, and other specialty retailers. Actual taxable sales totaled $73.22 million, substantially exceeding the potential sales of $29.01 million by $44.21 million, a 152.4% surplus. Extension estimates the capture rate of Maplewood residents at 71%, with residents contributing $20.50 million and non-residents accounting for $52.72 million, or 72% of total sales. This significant surplus highlights Maplewood as a strong regional destination for specialty and leisure retail goods. The high proportion of non- resident spending suggests that businesses in this category are effectively attracting shoppers from outside the city, likely due to unique product offerings, variety, and competitive pricing, items. Local Option Sales Tax Analysis for Maplewood, MN 15 Council Packet Page Number 453 of 476 J5, Attachment 2 Amusement and Recreation 1.1 percent of total taxable retail and service sales* The 14 businesses in this group include casinos, bowling lanes, water parks, amusement parks, arcades, bingo halls, golf courses, ski slopes, marinas, dance or fitness centers, recreational clubs, ice rinks, swimming pools, roller rinks, etc. ($Millions) $8.22 Actual taxable sales $16.12 Potential sales ($7.90) = $ variance -49.0% = as % of potential Unadjusted Trade Area Analysis $16.12 Potential sales to residents ($7.90) Surplus $8.22 Total -96.0% Non-resident share per group Analysis with Adjustments 34% Capture rate of Maplewood residents $5.51 Residents' $ share $2.71 Non-residents' $ share $8.22 Total 33.0% Non-resident share per group Analysis for Amusement and Recreation service sales in Maplewood. This sector includes 14 businesses offering a range of entertainment and recreational activities, such as casinos, bowling lanes, water parks, amusement parks, arcades, golf courses, fitness centers, ice rinks, swimming pools, and other leisure facilities. Actual taxable sales totaled $8.22 million, falling below the potential sales of $16.12 million by $7.90 million, a 49.0% deficit. Extension estimates the capture rate of Maplewood residents at 34%, with residents contributing $5.51 million and non-residents accounting for $2.71 million, or 33% of total sales. This deficit indicates sales leakage in the amusement and recreation sector, suggesting that Maplewood residents are traveling outside the community to access these types of recreational and entertainment services. Opportunities may exist to expand local offerings, enhance amenities, or develop new facilities to retain local spending and attract additional regional visitors, strengthening Local Option Sales Tax Analysis for Maplewood, MN 16 Council Packet Page Number 454 of 476 J5, Attachment 2 Accommodations 0.2 percent of total taxable retail and service sales These 4 businesses provide lodging or short-term accommodations for travelers, vacationers, and others. Included are hotels, motels, lodges, bed & breakfasts, campgrounds, fraternities, boarding houses, and dormitories. ($Millions) $1.82 Actual taxable sales $18.11 Potential sales ($16.29) = $ variance -89.9% = as % of potential Unadjusted Trade Area Analysis $18.11 Potential sales to residents ($16.29) Surplus $1.82 Total -894.0% Non-resident share per group Analysis with Adjustments 2% Capture rate of Maplewood residents $0.36 Residents' $ share $1.46 Non-residents' $ share Total $1.82 80.0% Non-resident share per group Analysis for Accommodations retail and service sales at 0.2%. This group includes four businesses providing lodging or short-term accommodations such as hotels, motels, bed & breakfasts, campgrounds, and boarding houses. Actual taxable sales totaled $1.82 million, which is far below the potential sales of $18.11 million, resulting in a sales leakage of $16.29 million, or 89.9% below potential. Extension estimates the capture rate of Maplewood residents at 2%, with residents contributing $0.36 million and non-residents contributing $1.46 million, accounting for 80% of total sales. While some non-resident spending does occur, the data indicates substantial opportunity for growth in attracting travelers and expanding lodging options, which could help capture lost revenue and better support regional tourism and visitor needs. Local Option Sales Tax Analysis for Maplewood, MN 17 Council Packet Page Number 455 of 476 J5, Attachment 2 Eating/Drinking Establishments 17.7 percent of total taxable retail and service sales These 115 businesses sell food at full-service or limited-service establishments. The group includes cafeterias, bagel shops, ice cream parlors, snack bars, food service contractors, caterers, lunch wagons, and street vendors. It also includes bars, taverns, and nightclubs. ($Millions) $129.99 Actual taxable sales $82.59 Potential sales $47.40 = $ variance 57.4% = as % of potential Unadjusted Trade Area Analysis $82.59 Potential sales to residents $47.40 Surplus $129.99 Total 36.5% Non-resident share per group Analysis with Adjustments 68% Capture rate of Maplewood residents $55.90 Residents' $ share $74.10 Non-residents' $ share $129.99 Total 57.0% Non-resident share per group Analysis for Eating/Drinking Establishments taxable retail and service sales, encompassing 115 businesses such as full-service and limited- service restaurants, cafeterias, snack bars, ice cream parlors, food service contractors, caterers, lunch wagons, bars, taverns, and nightclubs. Actual taxable sales totaled $129.99 million, significantly exceeding the potential sales of $82.59 million by $47.40 million, a 57.4% surplus. Extension estimates the capture rate of Maplewood residents at 68%, with residents contributing $55.90 million and non-residents contributing $74.10 million, representing 57% of total sales. This strong surplus indicates that Maplewood is a regional destination for dining and drinking, successfully attracting a substantial share of non- resident customers. The high proportion of non-resident spending suggests that local establishments are competitive in terms of menu variety, pricing, service, and accessibility, positioning the community as a hub for food and beverage activity in the region. Local Option Sales Tax Analysis for Maplewood, MN 18 Council Packet Page Number 456 of 476 J5, Attachment 2 Repair and Maintenance 2.3 percent of total taxable retail and service sales The 41 businesses in this group restore machinery, equipment, and other products. The group does not include plumbing or electrical repair services but does encompass auto repair, cameras, televisions, computers, copiers, appliances, lawn mowers, specialized equipment, small engines, furniture, shoes, guns, etc. ($Millions) $17.15 Actual taxable sales $15.90 Potential sales $1.25 = $ variance 7.9% = as % of potential Unadjusted Trade Area Analysis $15.90 Potential sales to residents $1.25 Surplus $17.15 Total 7.3% Non-resident share per group Analysis with Adjustments 63% Capture rate of Maplewood residents $9.95 Residents' $ share $7.20 Non-residents' $ share $17.15 Total 42.0% Non-resident share per group Analysis for Repair and Maintenance and service sales, covering 41 businesses that restore machinery, equipment, and a variety of products. This includes auto repair, electronics, small engines, appliances, furniture, and other durable goods, but excludes plumbing and electrical repair services. Actual taxable sales totaled $17.15 million, slightly exceeding the potential sales of $15.90 million by $1.25 million, a 7.9% surplus. Extension estimates the capture rate of Maplewood residents at 63%, with residents contributing $9.95 million and non-residents contributing $7.20 million, or sector is relatively strong, drawing not only from the local customer base but also attracting a meaningful portion of spending from non-residents, likely due to the range of services offered, expertise, and convenience. The data indicates that these businesses contribute both to retainin economic activity in the service sector. Local Option Sales Tax Analysis for Maplewood, MN 19 Council Packet Page Number 457 of 476 J5, Attachment 2 Personal Services/Laundry 0.4 percent of total taxable retail and service sales The 59 businesses in this merchandise group include barber shops and beauty parlors, death care services, laundry and dry-cleaning services, and a wide range of other personal services, such as pet care (except veterinary), photofinishing, temporary parking, and dating services. ($Millions) $2.73 Actual taxable sales $8.15 Potential Sales ($5.41) =$ variance -66.4% = as % of potential Unadjusted Trade Area Analysis Potential sales to residents $8.15 ($5.41) Surplus $2.73 Total -197.9% Non-resident share per group Analysis with Adjustments Capture rate of Maplewood residents 30% $2.46 Residents' $ share $0.27 Non-residents' $ share $2.73 Total 10.0% Non-resident share per group Analysis for Personal Services/Laundry retail and service sales, encompassing 59 businesses such as barber shops, beauty parlors, laundry and dry-cleaning services, pet care (excluding veterinary services), photofinishing, temporary parking, dating services, and other personal services. Actual taxable sales were $2.73 million, falling well short of the potential sales of $8.15 million, resulting in a sales leakage of $5.41 million, or 66.4% below potential. Extension estimates the capture rate of Maplewood residents at 30%, with residents contributing $2.46 million and non-residents accounting for $0.27 million, or 10% of total sales. This significant leakage indicates that local residents are spending outside the community for personal services, likely seeking specialized offerings, broader options, or more competitive pricing elsewhere. The low share of non- limited regional draw, highlighting an opportunity for business expansion or development to retain local spending and strengthen the local service economy. Local Option Sales Tax Analysis for Maplewood, MN 20 Council Packet Page Number 458 of 476 J5, Attachment 2 Retail (Non-Store) and Other Services This section includes taxable sales attributed to North American Industrial Classification System categories 511-813 released by MN Revenue. ($Millions) Actual taxable sales $38.46 % of total taxable retail and service sales In Maplewood 5.2% Analysis with Adjustments ($Millions) $23.46 Residents' $ share $15.00 Non-residents' $ share $38.46 Total 39% Non-resident share per group Analysis for Retail and Other Services This group includes non-store retailers (such as direct selling operations), healthcare, waste management, rental/lease services, administrative support, and the performing arts. Some of these categories serve primarily a local market, whereas categories like 541 (professional and technical services) often serve a non-local market. This mix of business types is too diverse to run a trade area analysis for, but Extension estimated an aggregate 39 percent of these sales are to non-resident customers. The categories of sales are shown below: CATEGORY TAXABLE SALES % NON-LOCAL NON-LOCAL $ 40% 454 RETL -NONSTORE RETAILERS $28,765 $20,060 40% 512 INFO -MOVIES, MUSIC IND $50,151 $1,031 40% 513 INFO -PUBLISHING INDUSTRY $2,578 $3,223,044 35% 517 INFO -TELECOMMUNICATIONS $8,057,610 $45,218 519 INFO -WEB SEARCH PORTALS, OTHER 35% SERVICES $129,194 $17,589 40% 522 CREDIT INTERMEDIATION $50,254 $346,667 35% 531 REAL ESTATE $866,668 $2,018,210 40% 532 RENTAL, LEASING SERVICES $5,766,314 $2,234,935 40% 541 PROF,SCIENTIFIC,TECH SERV $5,587,337 $5,883,948 35% 561 ADMIN, SUPPORT SERVICES $14,709,871 $114,403 35% 611 EDUCATIONAL SERVICES $326,866 $465,192 40% 621 HEALTH -AMBULATORY CARE $1,329,119 $12,180 35% 623 HEALTH -NURSING,HOME CARE $30,451 $279,915 40% 711 PERF ART, SPECTATOR SPRTS $799,756 $291,060 40% 813 RELIGIOUS,CIVIC,PROF ORGS $727,650 $20,060 TOTALS $38,462,584 39% $14,964,958 Local Option Sales Tax Analysis for Maplewood, MN 21 Council Packet Page Number 459 of 476 J5, Attachment 2 Construction, Manufacturing, Utilities, Wholesale Operations, Transportation, and Sales Suppressed for Business Confidentiality A diverse mix of businesses fall into these non-retail categories, and a portion of sales are within a suppressed or non-disclosed subcategory. These industries and services generate $30.82 million in taxable sales, or 4.0 percent of total taxable sales in Maplewood. A significant portion of this amount would be subject to any new sales taxes, including a local option sales tax. This category includes utilities that primarily serve a local market and are subject to a local option sales tax. The diversity of firm types included in this category makes it difficult to understand the customer mix of these businesses; however, Extension broke out each known subcategory with an assumption of whether customers paying the taxable sales were non- local: Category Taxable Sales % non-local $ non-local CONSTRUCTION $372,520 60% $223,512 MANUFACTURING $1,969,752 80% $1,575,802 WHOLESALE $7,881,886 90% $7,093,697 UNDESIGNATED/SUPPRESSED $20,596,992 50% $10,298,496 Total $30,821,150 62% $19,191,507 Extension estimated that, overall, 62 percent of sales are to non-residents. This analysis assumes that some subcategories, such as manufacturing sell primarily (90 percent) to non- resident customers, whereas subcategories like construction split sales between resident and non-resident customers. Analysis with Adjustments ($Millions) share $11.71 Non-residents $ share $19.11 Total $30.82 Non-resident share 62% Local Option Sales Tax Analysis for Maplewood, MN 22 Council Packet Page Number 460 of 476 J5, Attachment 2 APPENDIX A: RESEARCH ON THE EFFECTS OF A LOCAL OPTION SALES TAX Policymakers are oftenconcerned that enacting a local sales tax will result in a loss of consumer purchases to neighboring communities that have not adopted the tax. The Minnesota Department of Revenuerecords the tax collected froma set of Minnesota jurisdictions that have hada local sales or use tax in effect for at least eight years.Most of these cities show continued sales growth. A comparison that includes 11Minnesota cities adoptinga 0.5 percent local option sales tax is offered below(refer to Figures 4, 5, 6, and 7). Policymakers mustdetermine the best allowable method to raise revenuefrom a variety of options current income and raises the financial burden of low-income or retired homeowners. Sales taxes raise revenues based on household expenditures, which, in Minnesota,excludes the basic necessities of food and clothing. However, sincesales tax raises revenues from non- residents who shop in Maplewood, residentcontributions to tax revenues are significantly lower than a tax generatedexclusively by local residents, such as a property tax. Policymakers must carefully consider these and other factors before making a decision about enacting a local sales tax. Figure 4: Taxable retail and service sales by communitiesthatbegan collecting a local option sales tax from 1999 to 2006 $1,000,000,000 $900,000,000 $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 199019952000200320042005200620072008200920102015 Albert LeaBaxterBemidjiNew UlmWorthington Figure 5: Data table for example communities, taxable retail and service sales (in millions) Town Name2015 Year 909500030405060708091015 PopulationLOST Albert Lea 18,3562006$264$344$397$407$521$502$551$555$588$519$541$696 Baxter 8,0652006$432$473$556$605$650$630$612$676$900 Bemidji 11,9172005$257$362$457$428$410$437$495$596$570$563$581$837 New Ulm 13,5941999$109$165$204$233$236$259$261$280$303$295$329$417 Worthington 11,2832005$77$77$91$99$102$103$103$108$107$108$114$121 Local Option Sales Tax Analysis for Maplewood, MN 23 Council Packet Page Number 461 of 476 J5, Attachment 2 Figure 6: Taxable retail and service sales by communities that began collecting a local option sales tax between 2011-2012 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 19901995200020052009201020112012201320142015 BrainerdCloquetFergus FallsHermantownHutchinsonMarshall Figure7: Data table for examplecommunities, taxable retail and service sales (in millions) Town Name2015 Year 9095000509101112131415 PopLOST Brainerd 13,1782011$302$479$623$458$362$324$311$330$332$338$341 Cloquet 11,2012011$93$124$175$244$260$273$290$303$296$308$284 Fergus Falls 13,4712011$192$263$386$523$467$486$551$591$568$558$534 1996 - Hermantown 7,448increase $43$164$137$430$393$423$489$576$607$637$659 2012 Hutchinson 13,0802011$122$191$269$471$609$374$425$409$389$415$424 Marshall 12,7352011$176$283$343$398$371$380$440$447$457$463$428 Local Option Sales Tax Analysis for Maplewood, MN 24 Council Packet Page Number 462 of 476 J5, Attachment 2 APPENDIX B: DEFINITIONS OF TERMS Gross sales Gross sales include taxable sales and exempt businesses with sales and use tax permits. This is the most inclusive indicator of business activity for reporting jurisdictions, but it can be misleading when used in comparisons. At times, non-taxable commodity items (e.g., gasoline) can have large price variations, creating huge swings in gross sales. Taxable sales Taxable sales are sales subject to sales tax. Taxable sales exclude exempt items, items sold for resale, items sold for exempt purposes, and items sold to exempt organizations. For the purpose of this study, taxable sales were the focus of the analysis. For more information on what is taxed in Minnesota, see the "Minnesota Sales and Use Tax Instruction Booklet" available at https://www.revenue.state.mn.us/minnesota-tax-handbooks Taxable retail and service sales In this study and other retail trade analyses conducted by University of Minnesota Extension, the (NAICS) numbers of 441 to 454 (retail) and 511 to 812 (most service industries) released by the Minnesota Department of Revenue for a geographic area. Current and constant dollar sales Current dollar (or nominal dollar) sales are those reported by the state. No adjustment has been made for price inflation. In general, this measure of sales is not satisfactory for comparisons over long periods of time since it does not account for changes in population, inflation, or the state's economy. Constant dollar (or real dollar) sales reflect changes in price inflation by adjusting current dollar sales according to the Consumer Price Index (CPI). Constant dollar sales indicate the real sales level with respect to a base year. This is a more realistic method of evaluating sales over time than current dollar comparisons, but it still does not take into consideration changes in population or the states economy. Number of businesses The number of sales and use tax permit holders who filed one or more tax returns for the year. Index of income This index provides a relative measure of income, calculated by dividing local per capita income by state per capita income. The base is 1.00. For example, a 1.20 index of income indicates that per capita income in the area is 20 percent above the state average. Potential sales Potential sales are an estimate of the amount of money spent on retail goods and services by residents of a county or county. It is the product of county population, state per capita sales, and the index of income (based on the county personal per capita income). Actual sales For this study, the Minnesota Department of Rev2019 sales data for Maplewood provides the actual sales numbers used. Local Option Sales Tax Analysis for Maplewood, MN 25 Council Packet Page Number 463 of 476 J5, Attachment 2 Variance between actual and potential sales The variance between actual and expected sales is the difference in amount above or below the standard established by the expected sales formula). When actual sales exceed expected sales, the county has a surplusof retail sales. When actual sales fall short of expected sales, the county has a retail sales leakageDiscrepancies between expected and actual sales occur for a variety of reasons. For this study, we use potential sales per merchandise group to create a first-cut estimate of r Cautions Gross sales Gross sales are a comprehensive measure of business activity, but it should be noted the numbers in this report are self-reported. Furthermore, gross sales are not audited by the state of Minnesota. It is believed that gross sales figures are generally reliable, but there is the possibility of distortions, especially in smaller cities where misreporting may have occurred. Misclassification Holders of sales and use tax permits select the North American Industry Classification System (NAICS) category that best fits their business. All sales reported by a business is attributed to that selected NAICS category. Regardless of who makes this classification, errors are occasionally made. Also, sometimes a business will start out as one type but evolve over time to a considerably different type. Misclassifications can distort sales among business categories, especially in smaller cities. For example,a furniture store that is classified as a general merchandise store will underreport sales in the furniture store category and over-report sales in the general merchandise category. Suppressed data The sales data for merchandise categories that have less than four reporting firms are not reported. This is a measure taken by most states to protect the confidentiality of sales tax permit holders. Sales for suppressed retail categories are placed into the miscellaneous retail category (NAICS 999) and included in total sales but not total sales of a typical retail trade analysis. For this report, however, all taxable salesincluding NAICS 999are part of calculating the amount of special taxes collected. Consolidated reporting Vendors with more than one location in Minnesota have the option of filing a separate return for each location or filing one consolidated return for all locations. The consolidated return shows sales made, tax due, and location by county, and county for each business. Data for consolidated filers are combined with data for single-location filers to produce the figures in this report. Occasionally, consolidated reports may not be properly deconstructed, and all sales for a company may be reported for one town or county. Whenever misreporting is discovered, the Minnesota Department of Revenueis contacted to clarify the situation. Local Option Sales Tax Analysis for Maplewood, MN 26 Council Packet Page Number 464 of 476 J5, Attachment 3 City of Maplewood, Minnesota $83,590,000 General Obligation Sales Tax Revenue Bonds, Series 2027 Assumes Current Market Non-BQ AA+ Rates Sources & Uses Dated 08/01/2027 | Delivered 08/01/2027 Sources Of Funds Par Amount of Bonds$83,590,000.00 Total Sources $83,590,000.00 Uses Of Funds Total Underwriter's Discount (0.800%)668,720.00 Costs of Issuance197,000.00 Deposit to Project Fund82,724,280.00 Total Uses $83,590,000.00 Series 2027 GO Sales Tax | SINGLE PURPOSE | 12/ 8/2025 | 12:14 PM Council Packet Page Number 465 of 476 J5, Attachment 3 City of Maplewood, Minnesota $83,590,000 General Obligation Sales Tax Revenue Bonds, Series 2027 Assumes Current Market Non-BQ AA+ Rates Debt Service Schedule DatePrincipalCouponInterestTotal P+I 02/01/2028---- 02/01/2029--4,408,391.254,408,391.25 02/01/20301,515,000.002.500%2,938,927.504,453,927.50 02/01/20311,730,000.002.500%2,901,052.504,631,052.50 02/01/20321,960,000.002.450%2,857,802.504,817,802.50 02/01/20332,200,000.002.500%2,809,782.505,009,782.50 02/01/20342,455,000.002.550%2,754,782.505,209,782.50 02/01/20352,730,000.002.650%2,692,180.005,422,180.00 02/01/20363,015,000.002.700%2,619,835.005,634,835.00 02/01/20373,325,000.002.800%2,538,430.005,863,430.00 02/01/20383,650,000.002.900%2,445,330.006,095,330.00 02/01/20394,000,000.003.050%2,339,480.006,339,480.00 02/01/20404,380,000.003.100%2,217,480.006,597,480.00 02/01/20414,775,000.003.300%2,081,700.006,856,700.00 02/01/20425,210,000.003.700%1,924,125.007,134,125.00 02/01/20435,690,000.003.800%1,731,355.007,421,355.00 02/01/20446,200,000.003.950%1,515,135.007,715,135.00 02/01/20456,755,000.004.050%1,270,235.008,025,235.00 02/01/20467,350,000.004.100%996,657.508,346,657.50 02/01/20477,985,000.004.150%695,307.508,680,307.50 02/01/20488,665,000.004.200%363,930.009,028,930.00 Total$83,590,000.00-$44,101,918.75$127,691,918.75 Yield Statistics Bond Year Dollars$1,181,515.00 Average Life14.135 Years Average Coupon3.7326584% Net Interest Cost (NIC)3.7892569% True Interest Cost (TIC)3.7677442% Bond Yield for Arbitrage Purposes3.6929942% All Inclusive Cost (AIC)3.7899182% IRS Form 8038 Net Interest Cost3.7326584% Weighted Average Maturity14.135 Years Series 2027 GO Sales Tax | SINGLE PURPOSE | 12/ 8/2025 | 12:14 PM Council Packet Page Number 466 of 476 J5, Attachment 3 City of Maplewood, Minnesota $83,590,000 General Obligation Sales Tax Revenue Bonds, Series 2027 Assumes Current Market Non-BQ AA+ Rates Debt Service Schedule DatePrincipalCouponInterestTotal P+I105% Overlevy 02/01/2028----- 02/01/2029--4,408,391.254,408,391.254,628,810.81 02/01/20301,515,000.002.500%2,938,927.504,453,927.504,676,623.88 02/01/20311,730,000.002.500%2,901,052.504,631,052.504,862,605.13 02/01/20321,960,000.002.450%2,857,802.504,817,802.505,058,692.63 02/01/20332,200,000.002.500%2,809,782.505,009,782.505,260,271.63 02/01/20342,455,000.002.550%2,754,782.505,209,782.505,470,271.63 02/01/20352,730,000.002.650%2,692,180.005,422,180.005,693,289.00 02/01/20363,015,000.002.700%2,619,835.005,634,835.005,916,576.75 02/01/20373,325,000.002.800%2,538,430.005,863,430.006,156,601.50 02/01/20383,650,000.002.900%2,445,330.006,095,330.006,400,096.50 02/01/20394,000,000.003.050%2,339,480.006,339,480.006,656,454.00 02/01/20404,380,000.003.100%2,217,480.006,597,480.006,927,354.00 02/01/20414,775,000.003.300%2,081,700.006,856,700.007,199,535.00 02/01/20425,210,000.003.700%1,924,125.007,134,125.007,490,831.25 02/01/20435,690,000.003.800%1,731,355.007,421,355.007,792,422.75 02/01/20446,200,000.003.950%1,515,135.007,715,135.008,100,891.75 02/01/20456,755,000.004.050%1,270,235.008,025,235.008,426,496.75 02/01/20467,350,000.004.100%996,657.508,346,657.508,763,990.38 02/01/20477,985,000.004.150%695,307.508,680,307.509,114,322.88 02/01/20488,665,000.004.200%363,930.009,028,930.009,480,376.50 Total$83,590,000.00-$44,101,918.75$127,691,918.75$134,076,514.69 Significant Dates Dated8/01/2027 First Coupon Date8/01/2028 Yield Statistics Bond Year Dollars$1,181,515.00 Average Life14.135 Years Average Coupon3.7326584% Net Interest Cost (NIC)3.7892569% True Interest Cost (TIC)3.7677442% Bond Yield for Arbitrage Purposes3.6929942% All Inclusive Cost (AIC)3.7899182% IRS Form 8038 Net Interest Cost3.7326584% Weighted Average Maturity14.135 Years Series 2027 GO Sales Tax | SINGLE PURPOSE | 12/ 8/2025 | 12:14 PM Council Packet Page Number 467 of 476 J5, Attachment 3 City of Maplewood, Minnesota $83,590,000 General Obligation Sales Tax Revenue Bonds, Series 2027 Assumes Current Market Non-BQ AA+ Rates Coverage Ratio DateTotal RevenuesTotal D/SCoverage 02/01/2028--- 02/01/20294,500,000.004,408,391.251.0207805x 02/01/20304,680,000.004,453,927.501.0507580x 02/01/20314,867,200.004,631,052.501.0509922x 02/01/20325,061,888.004,817,802.501.0506632x 02/01/20335,264,363.525,009,782.501.0508168x 02/01/20345,474,938.065,209,782.501.0508957x 02/01/20355,693,935.585,422,180.001.0501192x 02/01/20365,921,693.015,634,835.001.0509080x 02/01/20376,158,560.735,863,430.001.0503341x 02/01/20386,404,903.166,095,330.001.0507886x 02/01/20396,661,099.286,339,480.001.0507328x 02/01/20406,927,543.256,597,480.001.0500287x 02/01/20417,204,644.986,856,700.001.0507453x 02/01/20427,492,830.787,134,125.001.0502803x 02/01/20437,792,544.017,421,355.001.0500163x 02/01/20448,104,245.777,715,135.001.0504347x 02/01/20458,428,415.618,025,235.001.0502391x 02/01/20468,765,552.238,346,657.501.0501871x 02/01/20479,116,174.328,680,307.501.0502133x 02/01/20489,480,821.299,028,930.001.0500493x Total$134,001,353.58$127,691,918.75- Series 2027 GO Sales Tax | SINGLE PURPOSE | 12/ 8/2025 | 12:14 PM Council Packet Page Number 468 of 476 J5, Attachment 3 City of Maplewood, Minnesota $87,770,000 General Obligation Sales Tax Revenue Bonds, Series 2027 Assumes Current Market Non-BQ AA+ Rates Sources & Uses Dated 08/01/2027 | Delivered 08/01/2027 Sources Of Funds Par Amount of Bonds$87,770,000.00 Total Sources $87,770,000.00 Uses Of Funds Total Underwriter's Discount (0.800%)702,160.00 Costs of Issuance197,000.00 Deposit to Project Fund86,870,840.00 Total Uses $87,770,000.00 Series 2027 GO Sales Tax | SINGLE PURPOSE | 12/ 8/2025 | 12:13 PM Council Packet Page Number 469 of 476 J5, Attachment 3 City of Maplewood, Minnesota $87,770,000 General Obligation Sales Tax Revenue Bonds, Series 2027 Assumes Current Market Non-BQ AA+ Rates Debt Service Schedule DatePrincipalCouponInterestTotal P+I 02/01/2028---- 02/01/2029--4,628,583.754,628,583.75 02/01/20301,590,000.002.500%3,085,722.504,675,722.50 02/01/20311,820,000.002.500%3,045,972.504,865,972.50 02/01/20322,060,000.002.450%3,000,472.505,060,472.50 02/01/20332,310,000.002.500%2,950,002.505,260,002.50 02/01/20342,580,000.002.550%2,892,252.505,472,252.50 02/01/20352,865,000.002.650%2,826,462.505,691,462.50 02/01/20363,170,000.002.700%2,750,540.005,920,540.00 02/01/20373,490,000.002.800%2,664,950.006,154,950.00 02/01/20383,835,000.002.900%2,567,230.006,402,230.00 02/01/20394,205,000.003.050%2,456,015.006,661,015.00 02/01/20404,595,000.003.100%2,327,762.506,922,762.50 02/01/20415,015,000.003.300%2,185,317.507,200,317.50 02/01/20425,470,000.003.700%2,019,822.507,489,822.50 02/01/20435,970,000.003.800%1,817,432.507,787,432.50 02/01/20446,510,000.003.950%1,590,572.508,100,572.50 02/01/20457,090,000.004.050%1,333,427.508,423,427.50 02/01/20467,715,000.004.100%1,046,282.508,761,282.50 02/01/20478,385,000.004.150%729,967.509,114,967.50 02/01/20489,095,000.004.200%381,990.009,476,990.00 Total$87,770,000.00-$46,300,778.75$134,070,778.75 Yield Statistics Bond Year Dollars$1,240,465.00 Average Life14.133 Years Average Coupon3.7325341% Net Interest Cost (NIC)3.7891386% True Interest Cost (TIC)3.7676155% Bond Yield for Arbitrage Purposes3.6928596% All Inclusive Cost (AIC)3.7887335% IRS Form 8038 Net Interest Cost3.7325341% Weighted Average Maturity14.133 Years Series 2027 GO Sales Tax | SINGLE PURPOSE | 12/ 8/2025 | 12:13 PM Council Packet Page Number 470 of 476 J5, Attachment 3 City of Maplewood, Minnesota $87,770,000 General Obligation Sales Tax Revenue Bonds, Series 2027 Assumes Current Market Non-BQ AA+ Rates Debt Service Schedule DatePrincipalCouponInterestTotal P+I105% Overlevy 02/01/2028----- 02/01/2029--4,628,583.754,628,583.754,860,012.94 02/01/20301,590,000.002.500%3,085,722.504,675,722.504,909,508.63 02/01/20311,820,000.002.500%3,045,972.504,865,972.505,109,271.13 02/01/20322,060,000.002.450%3,000,472.505,060,472.505,313,496.13 02/01/20332,310,000.002.500%2,950,002.505,260,002.505,523,002.63 02/01/20342,580,000.002.550%2,892,252.505,472,252.505,745,865.13 02/01/20352,865,000.002.650%2,826,462.505,691,462.505,976,035.63 02/01/20363,170,000.002.700%2,750,540.005,920,540.006,216,567.00 02/01/20373,490,000.002.800%2,664,950.006,154,950.006,462,697.50 02/01/20383,835,000.002.900%2,567,230.006,402,230.006,722,341.50 02/01/20394,205,000.003.050%2,456,015.006,661,015.006,994,065.75 02/01/20404,595,000.003.100%2,327,762.506,922,762.507,268,900.63 02/01/20415,015,000.003.300%2,185,317.507,200,317.507,560,333.38 02/01/20425,470,000.003.700%2,019,822.507,489,822.507,864,313.63 02/01/20435,970,000.003.800%1,817,432.507,787,432.508,176,804.13 02/01/20446,510,000.003.950%1,590,572.508,100,572.508,505,601.13 02/01/20457,090,000.004.050%1,333,427.508,423,427.508,844,598.88 02/01/20467,715,000.004.100%1,046,282.508,761,282.509,199,346.63 02/01/20478,385,000.004.150%729,967.509,114,967.509,570,715.88 02/01/20489,095,000.004.200%381,990.009,476,990.009,950,839.50 Total$87,770,000.00-$46,300,778.75$134,070,778.75$140,774,317.69 Significant Dates Dated8/01/2027 First Coupon Date8/01/2028 Yield Statistics Bond Year Dollars$1,240,465.00 Average Life14.133 Years Average Coupon3.7325341% Net Interest Cost (NIC)3.7891386% True Interest Cost (TIC)3.7676155% Bond Yield for Arbitrage Purposes3.6928596% All Inclusive Cost (AIC)3.7887335% IRS Form 8038 Net Interest Cost3.7325341% Weighted Average Maturity14.133 Years Series 2027 GO Sales Tax | SINGLE PURPOSE | 12/ 8/2025 | 12:13 PM Council Packet Page Number 471 of 476 J5, Attachment 3 City of Maplewood, Minnesota $87,770,000 General Obligation Sales Tax Revenue Bonds, Series 2027 Assumes Current Market Non-BQ AA+ Rates Coverage Ratio DateTotal RevenuesTotal D/SCoverage 02/01/2028--- 02/01/20294,500,000.004,628,583.750.9722196x 02/01/20304,680,000.004,675,722.501.0009148x 02/01/20314,867,200.004,865,972.501.0002523x 02/01/20325,061,888.005,060,472.501.0002797x 02/01/20335,264,363.525,260,002.501.0008291x 02/01/20345,474,938.065,472,252.501.0004908x 02/01/20355,693,935.585,691,462.501.0004345x 02/01/20365,921,693.015,920,540.001.0001947x 02/01/20376,158,560.736,154,950.001.0005866x 02/01/20386,404,903.166,402,230.001.0004175x 02/01/20396,661,099.286,661,015.001.0000127x 02/01/20406,927,543.256,922,762.501.0006906x 02/01/20417,204,644.987,200,317.501.0006010x 02/01/20427,492,830.787,489,822.501.0004016x 02/01/20437,792,544.017,787,432.501.0006564x 02/01/20448,104,245.778,100,572.501.0004535x 02/01/20458,428,415.618,423,427.501.0005922x 02/01/20468,765,552.238,761,282.501.0004873x 02/01/20479,116,174.329,114,967.501.0001324x 02/01/20489,480,821.299,476,990.001.0004043x Total$134,001,353.58$134,070,778.75- Series 2027 GO Sales Tax | SINGLE PURPOSE | 12/ 8/2025 | 12:13 PM Council Packet Page Number 472 of 476 J5, Attachment 4 Council Packet Page Number 473 of 476 J5, Attachment 4 Council Packet Page Number 474 of 476 J5, Attachment 4 Council Packet Page Number 475 of 476 THIS PAGE IS INTENTIONALLY LEFT BLANK Council Packet Page Number 476 of 476 For the permanent record: Meeting Date: 1/26/2026 Agenda Item J5, Additional Attachment For the permanent record: Meeting Date: 1/26/2026 Agenda Item J5, Additional Attachment For the permanent record: Meeting Date: 1/26/2026 Agenda Item J5, Additional Attachment For the permanent record: Meeting Date: 1/26/2026 Agenda Item J5, Additional Attachment For the permanent record: Meeting Date: 1/26/2026 Agenda Item: J5, Attachment 1 – Revised CITYOFMAPLEWOOD RESOLUTION NO. _______ RESOLUTIONSUPPORTINGTHEAUTHORITYTOIMPOSEA LOCAL SALES TAX TO FUND SPECIFIC CAPITAL IMPROVEMENTS PROVIDING REGIONALBENEFIT, ESTABLISHING THE DURATIONOFTHE TAX AND THE REVENUE TO BE RAISEDBY THETAX,ANDAUTHORIZING THE CITY TO ISSUE BONDS SUPPORTED BY THESALES TAX REVENUE WHEREAS, Minnesota Statutes, Section 297A.99 (the “Local Sales Tax Act”), provides the City of Maplewood (the “City”) with authority to impose a local sales tax if the State Legislature approves the local sales tax through the creation of a special law and that tax is approved by the voters at a general election; and WHEREAS, the Local Sales Tax Act requires the City Council to adopt a resolution indicating its approval of the tax, outlining the details of the proposed local sales tax, identifying proposed projects and setting forth the regional significance of the proposed projects prior to submitting the request for a local sales tax to the State Legislature; and WHEREAS, the City has engaged community residents and businesses to facilitate strategic investment in the region and community and proposes to request special legislation to impose a local sales tax to raise revenues to fund one or more of the following capital projects (the “Projects”): 1. EAST METRO PUBLIC SAFETY TRAINING FACILITY; and 2. MAPLEWOOD COMMUNITY CENTER; and 3. MAPLEWOOD NATURE CENTER; and 4. PARKS AND PARK AMENITIES IN SOUTH MAPLEWOOD; and WHEREAS, the Projects will result in benefits to both the residents and businesses of the City and to non-resident visitors and businesses; and WHEREAS, the Projects cannot be adequately funded with existing resources. Funding the Projects with a local sales tax will more closely distribute the costs of the Projects to the users of the facilities; and WHEREAS, the Projects are estimated to cost approximately ____________, plus an amount equal to interest on and the costs of issuance of any bonds; and WHEREAS, the City estimates that a local sales tax of one-half percent (0.5%) would generate approximately $87,700,000 over 20 years; and WHEREAS, the City has provided a detailed description and documentation of the regional significance of each of the Projects, including the share of the economic benefit to or use MA745-1-1072306.v1 For the permanent record: Meeting Date: 1/26/2026 Agenda Item: J5, Attachment 1 – Revised of each project by persons residing, or businesses located, outside of the City, includingbut not limited to the materials attached hereto as EXHIBIT A; and WHEREAS, the estimated local sales tax revenue needed for each of the Projects and the estimated amount of time to raise that amount of revenue is as follows: 1. EAST METRO PUBLIC SAFETY TRAINING FACILITY: The City expects to collect up to $_______ of sales tax revenue, plus the costs of collecting and administering the tax and interest on and the costs of issuing any associated bonds, for the East Metro Public Safety Training Facility Project, over 20 years; and 2. M APLEWOOD COMMUNITY CENTER: The City expects to collect up to $ _____________ of sales tax revenue, plus the costs of collecting and administering the tax and the costs of issuing any associated bonds, for the Maplewood Community Center Project, over 20 years; and 3. MAPLEWOOD NATURE CENTER: The City expects to collect up to $ _____________ of sales tax revenue, plus the costs of collecting and administering the tax and the costs of issuing any associated bonds, for the Maplewood Nature Center Project, over 20 years; and 4. PARKS AND PARK AMENITIES IN SOUTH MAPLEWOOD: The City expects to collect up to $ _____________ of sales tax revenue, plus the costs of collecting and administering the tax and the costs of issuing any associated bonds, for the Parks and Park Amenities in South Maplewood Project, over 20 years; and WHEREAS, the Local Sales Tax Act authorizes the imposition of a general sales tax if permitted by special law of the Minnesota Legislature; and WHEREAS, the Local Sales Tax Act requires the City to pass a resolution authorizing such a local tax and to obtain Legislative approval prior to approval by the local voters to enact the local tax. THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: 1. The Council supports the authority to impose a general local sales tax of one-half of one percent (0.5%) for a period of the lesser of 20 years or the retirement of all debt (and all related issuance and interest costs) to fund all or a portion of the Projects. 2. Upon approval of this resolution, the City will submit the adopted resolution and documentation of regional significance by January 31, 2026 to the chairs and ranking minority members of the Minnesota House and Senate Taxes committees for approval and passage of a special law authorizing the tax. 3. Upon legislative approval and passage of the special law authorizing the tax, the City will adopt a resolution accepting the new law, which will be filed with a local approval certificate to the Office of the Minnesota Secretary of State before the following Legislative session. 2 MA745-1-1072306.v1 For the permanent record: Meeting Date: 1/26/2026 Agenda Item: J5, Attachment 1 – Revised 4.The City will put one or more detailed ballot questions, to includea separate question for each of the authorized Projects, on a general election ballot for local voter approval within two years of receiving legislative authority. 5. If one or more ballot questions pass, the City will also pass an ordinance imposing the tax and notify the Minnesota Commissioner of Revenue at least 90 days before the first day of the calendar quarter that the tax will be imposed. 6. Upon completion of the aforementioned requirements, the local sales tax will commence and run for a period of 20 years or until a sum sufficient to fund the voter-approved Projects, including related debt costs, is raised, whichever comes first. 7. The Council further finds that it is in the best interest of the health, welfare, and safety of the City and its residents and it is necessary and expedient to the sound financial management of the affairs of the City that the acquisition and betterment of the Projects, or any part thereof, be financed in whole or in part by the issuance and sale of the City’s general obligation bonds pursuant to Minnesota Statutes, Chapter 475, as amended, in one or more series in an aggregate principal amount not to exceed $_______________ plus an amount equal to interest and the costs of the issuance of any bonds. The City may accept an offer to purchase the Bonds, and the City may sell the Bonds, at a price that results in the receipt of original issue premium in any amount. The City expects to use proceeds of tax-exempt bonds to reimburse itself for all or a portion of the costs of the Projects. 8. The City staff and consultants are authorized and directed to take all actions necessary or convenient to carry out the intent of this resolution. Dated: January 26, 2026 Marylee Abrams, Mayor ATTEST: Andrea Sindt, City Clerk 3 MA745-1-1072306.v1 For the permanent record: Meeting Date: 1/26/2026 Agenda Item: J5, Attachment 1 – Revised EXHIBIT A Description and Documentation of Regional Significance of the Projects A-1 MA745-1-1072306.v1