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2024.01.16 Work Session Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Jan. 12, 2024 City Council Work Session Agenda Tuesday, Jan. 16, 2024 6:30 p.m. Council Chambers/Zoom Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held on Tuesday, Jan. 16, 2024, at ______ p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. If the agenda items are not completed in time for the City Council meeting at 7 p.m., the work session will be continued and resumed immediately following the City Council meeting. The public may attend the meeting via Zoom by connecting to it through one of the methods identified on the City Council Meeting Schedule for Tuesday, Jan. 16, 2024. I. Attendance Council members Staff ____ Eidbo ____ Bell ____ Revering ____ Kamish ____ Gilchrist ____ Sutter ____ Kiser ____ Therres ____ Serres ____ Onesirosan ____ Elholm ____ Adams ____ Larson ____ Budziszewski ____ Perkey ____ Cummings II. Agenda The purpose of the work session is to discuss the following agenda items: 1. JAZB Ordinance Process 2. 2024 Capital Program review 3. 2024 Legislative Priorities. 4. City Council liaison reports.* 5. City manager monthly check-in. 6. Constituent issues.* 7. New business.* 8. Announcements.* III. Adjournment The work session adjourned at ______ p.m. * Denotes no documentation included in the packet. Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • www.crystalmn.gov March XX, 2024 Nancy Daubenberger Commissioner Minnesota Department of Transportation Dear Commissioner Daubenberger: The City of Crystal will soon begin implementing the new Airport Zoning Ordinance (AZO) recently approved by the Joint Airport Zoning Board (JAZB) for the Crystal Airport which is operated by the Metropolitan Airports Commission (MAC). The city recognizes the importance of aviation safety, has adopted the AZO as an appendix to its Unified Development Code, and integrated administration of the AZO into its zoning and building permit review procedures. The purpose of this letter is to express the city’s concerns about the JAZB process under M.S. Chapter 360, specifically the public hearing process described in Section 360.065. With the letter the city is requesting a change to the statute that we believe would improve the process based on the experience of the city and its residents during the process of developing the AZO. Compared with more typical and modern public engagement processes for ordinances regulating the use of property, these statutory requirements are somewhat burdensome on public agencies while simultaneously discouraging effective or impactful public engagement. A review of the public hearing record shows a pattern of the lead agency, in this case, the MAC, responding to public comments, questions, and other input in a jargon-laden and frankly dismissive-sounding manner, with little direct and meaningful engagement with the commenters about their concerns. The city does not fault MAC for this approach because they may have deemed it necessary to avoid restarting the public hearing process as required by the statute, but the practical effect is that the ordinance is in its final form before the public hearing which is contrary to best practices for public engagement in the governing process. The city appreciates that it was literally at the table as the draft AZO was prepared so we were in a position to seek necessary changes prior to the public hearing. The prime example was the initial proposal by MAC to include city parks in Zone 1 even if the surrounding neighborhoods were in Zone 2. Had the city parks been placed in Zone 1, the AZO would have prevented the community from continuing to use these parks in the same way they had been used for decades. Through their membership on the JAZB, the cities of Crystal and Brooklyn Center were successful at getting the parks designated as Zone 2 instead of Zone 1 before the draft ordinance was presented at the public hearing. But what if this issue - or any other significant issue - had only been noticed by a resident and first brought up at the public hearing? The only way for the issue or any other concerns or objections raised by the public to be addressed with changes to the draft ordinance would have been to re-start the entire public hearing process including the very extensive and expensive mailed notice. In short, while the intent of the statute may be to ensure that the public has the opportunity to provide input regarding the AZO, in reality, it has the opposite effect: It discourages effective or impactful public engagement. Instead, the city believes that the Commissioner of Transportation should have the discretion to order a new public hearing depending on the characteristics and impact of the proposed changes. For this reason, the city requests consideration of the following change to the statute, specifically 360.065 Subd. 1(b): (b) A public hearing must be held on the airport zoning regulations proposed by a municipality, county, or joint airport zoning board before they are submitted to the commissioner for approval. If any changes that alter the regulations placed on a parcel of land are made to the proposed airport zoning regulations after the initial public hearing, the municipality, county, or joint airport zoning board must hold a second public hearing before final adoption of the regulation. The commissioner may require a second hearing as determined necessary based on the commissioner’s review of the hearing record and the proposed changes. The city believes that this relatively simple statutory change would allow for a more effective public engagement process for future airport zoning ordinances and asks for your support of this change. [City Manager to sign as authorized by a City Council vote? Or signed by individual City Council members?] Sincerely, Adam R. Bell City Manager cc: Rick King, Chair, Metropolitan Airports Commission Senator Ann Rest Representative Cedrick Frazier Representative Mike Freiberg 360.065 AIRPORT ZONING; ADOPTION AND APPROVAL OF PROPOSED REGULATIONS. Subdivision 1.Notice of proposed zoning regulations, hearing.(a) No airport zoning regulations shall be adopted, amended, or changed under sections 360.011 to 360.076, except by action of the governing body of the municipality, county, or joint airport zoning board under section 360.0655 or 360.0656, or the boards provided for in section 360.063, subdivisions 3 and 7, or by the commissioner as provided in section 360.063, subdivisions 6 and 8. (b) A public hearing must be held on the airport zoning regulations proposed by a municipality, county, or joint airport zoning board before they are submitted to the commissioner for approval. If any changes that alter the regulations placed on a parcel of land are made to the proposed airport zoning regulations after the initial public hearing, the municipality, county, or joint airport zoning board must hold a second public hearing before final adoption of the regulation. The commissioner may require a second hearing as determined necessary. (c) Notice of a hearing must be published by the municipality, county, or joint airport zoning board at least three times during the period between 15 days and five days before the hearing in an official newspaper and in a second newspaper designated by that authority which has a wide general circulation in the area affected by the proposed regulations and posted on the municipality's, county's, or joint airport zoning board's website. If there is not a second newspaper of wide general circulation in the area that the municipality, county, or joint airport zoning board can designate for the notice, the municipality, county, or joint airport zoning board is only required to publish the notice once in the official newspaper of the jurisdiction. The notice shall not be published in the legal notice section of a newspaper. The notice must specify the time, location, and purpose of the hearing, and must identify any additional location and time the proposed regulations will be available for public inspection. A copy of the published notice must be added to the record of the proceedings. (d) Notice of a hearing must be given by mail at least ten days before each hearing to persons and landowners where the location or size of a building, or the density of population, will be regulated. Mailed notice must also be provided at least ten days before each hearing to persons or municipalities that have previously requested such notice from the municipality, county, or joint airport zoning board. The notice must specify the time, location, and purpose of the hearing, and must identify any additional location and time the proposed regulations will be made available for public inspection. Mailed notice must also identify the property affected by the regulations. For the purpose of providing mailed notice, the municipality, county, or joint airport zoning board may use any appropriate records to determine the names and addresses of owners. A copy of the notice and a list of the owners and addresses to which the notice was sent must be added to the records of the proceedings. Failure to provide mailed notice to individual property owners or a defect in the notice does not invalidate the proceedings if a bona fide attempt to comply with this subdivision was made. Subd. 2.MS 2018 [Repealed, 1Sp2019 c 3 art 3 s 140] Subd. 3.[Repealed, 2007 c 64 s 3] History: 1945 c 303 s 28; 1951 c 116 s 5; 1957 c 272 s 1,2; 1976 c 181 s 2; 1978 c 674 s 58; 1979 c 302 s 3; 1983 c 326 s 7; 1986 c 444; 2006 c 261 s 3; 1Sp2019 c 3 art 3 s 97; 2022 c 55 art 1 s 157 Official Publication of the State of Minnesota Revisor of Statutes 360.065MINNESOTA STATUTES 20221 WƵďůŝĐŽŵŵĞŶƚƐĂŶĚZĞƐƉŽŶƐĞƐ ϭ Zz^d>/ZWKZd Z&dZz^d>/ZWKZdKE/E'KZ/EE Wh>/KDDEd^EZ^WKE^^ Z^WKE^^dKWh>/KDDEd^ dŚŝƐƐĞĐƟŽŶĐŽŶƚĂŝŶƐƌĞƐƉŽŶƐĞƐƚŽƉƵďůŝĐĐŽŵŵĞŶƚƐƌĞĐĞŝǀĞĚĂďŽƵƚƚŚĞĚƌĂŌŽŶŝŶŐKƌĚŝŶĂŶĐĞ ƉƌŽƉŽƐĞĚ ďǇ ƚŚĞ ƌǇƐƚĂů ŝƌƉŽƌƚ : ;͞ƌĂŌ ƌǇƐƚĂů ŝƌƉŽƌƚ ŽŶŝŶŐ KƌĚŝŶĂŶĐĞ͟Ϳ ƚŚĂƚ ǁĂƐ ƉƌĞƐĞŶƚĞĚĂƚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐŚĞůĚŽŶƉƌŝůϭϵ͕ϮϬϮϯ͘dŚĞƉƵƌƉŽƐĞŽĨƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐǁĂƐƚŽ ƚĂŬĞƚĞƐƟŵŽŶǇĨƌŽŵƚŚĞƉƵďůŝĐŽŶƚŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞ͕ǁŚŝĐŚǁŝůůĐŽŶƚĂŝŶ ŚĞŝŐŚƚĂŶĚůĂŶĚƵƐĞƌĞŐƵůĂƟŽŶƐŝŶƚŚĞǀŝĐŝŶŝƚǇŽĨƌǇƐƚĂůŝƌƉŽƌƚ͕ĂŶĚǁŝůůƌĞƉůĂĐĞƚŚĞĞǆŝƐƟŶŐϭϵϴϯ ƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞ;͞ϭϵϴϯKƌĚŝŶĂŶĐĞ͟Ϳ͘ dŚŝƐƐĞĐƟŽŶĂůƐŽĐŽǀĞƌƐƌĞƐƉŽŶƐĞƐŵĂĚĞĚƵƌŝŶŐƚŚĞƉƵďůŝĐĐŽŵŵĞŶƚƉĞƌŝŽĚŽĨƚŚĞƌĂŌƌǇƐƚĂů ŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞ͘dǁŽƉƵďůŝĐĐŽŵŵĞŶƚƉĞƌŝŽĚƐǁĞƌĞŚĞůĚ͗&ĞďƌƵĂƌǇϳ͕ϮϬϮϯ͕ƚŚƌŽƵŐŚ DĂƌĐŚϴ͕ϮϬϮϯ͕ĂŶĚƉƌŝůϰ͕ϮϬϮϯ͕ƚŚƌŽƵŐŚDĂǇϯ͕ϮϬϮϯ͘dŚĞĮƌƐƚƉƵďůŝĐĐŽŵŵĞŶƚƉĞƌŝŽĚǁĂƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ŽƌŝŐŝŶĂů ƉƵďůŝĐ ŚĞĂƌŝŶŐ ĚĂƚĞ ŽĨ &ĞďƌƵĂƌǇ Ϯϯ͕ ϮϬϮϯ͘ dŚŝƐ ƉƵďůŝĐ ŚĞĂƌŝŶŐ ǁĂƐ ƉŽƐƚƉŽŶĞĚ ĚƵĞ ƚŽ ƉŽŽƌ ǁĞĂƚŚĞƌ ĂŶĚ ǁĂƐ ƌĞƐĐŚĞĚƵůĞĚ ĨŽƌ Ɖƌŝů ϭϵ͕ ϮϬϮϯ͘ ƐĞĐŽŶĚ ƉƵďůŝĐ ĐŽŵŵĞŶƚƉĞƌŝŽĚǁĂƐŚĞůĚŝŶƌĞůĂƟŽŶƚŽƚŚĞƌĞƐĐŚĞĚƵůĞĚƉƌŝůϭϵ͕ϮϬϮϯ͕ƉƵďůŝĐŚĞĂƌŝŶŐ͘ŽƚŚ ĐŽŵŵĞŶƚƉĞƌŝŽĚƐĂƌĞĐĂƉƚƵƌĞĚŝŶƚŚĞƌĞƐƉŽŶƐĞƐďĞůŽǁ͘^ŽŵĞƉƵďůŝ ĐĐŽŵŵĞŶƚƐĚĞǀĞůŽƉĞĚƐŝŵŝůĂƌ ƚŚĞŵĞƐ͘ƐĂƌĞƐƵůƚ͕Ă͞'ĞŶĞƌĂůZĞƐƉŽŶƐĞƐ͟ƐĞĐƟŽŶǁĂƐĚĞǀĞůŽƉĞĚ ƚŽ ĂĚĚƌĞƐƐ ƚŚĞ ƐŝŵŝůĂƌ ĐŽŵŵĞŶƚƐŵĂĚĞ͘/ĨĂƐƉĞĐŝĮĐĐŽŵŵĞŶƚǁĂƌƌĂŶƚĞĚĂƚĂŝůŽƌĞĚƌĞƐƉŽŶƐĞ͕ƚŚĂƚƌĞƐƉŽŶƐĞŝƐŝŶĐůƵĚĞĚ ŝŶƚŚĞ͞ŽŵŵĞŶƚƐĂŶĚ^ƉĞĐŝĮĐZĞƐƉŽŶƐĞƐ͟ƐĞĐƟŽŶ͘ 'ĞŶĞƌĂůZĞƐƉŽŶƐĞƐ ϭ͘ WƵƌƉŽƐĞĂŶĚŽŵƉŽƐŝƟŽŶŽĨƚŚĞ:ʹdŚĞƉƵƌƉŽƐĞŽĨƚŚĞ:ŝƐƚŽĐŽůůĂďŽƌĂƟǀĞůǇ ĚĞǀĞůŽƉĂŶĂŝƌƉŽƌƚǌŽŶŝŶŐŽƌĚŝŶĂŶĐĞƚŚĂƚĂĐŚŝĞǀĞƐĂƌĞĂƐŽŶĂďůĞůĞǀĞůŽĨƐĂĨĞƚǇǁŚŝůĞ ĐŽŶƐŝĚĞƌŝŶŐĐŽŵƉĂƟďůĞĐŽŵŵƵŶŝƚǇĚĞǀĞůŽƉŵĞŶƚĂŶĚƚŚĞƐŽĐŝĂůĂŶĚĞĐŽŶŽŵŝĐĐŽƐƚƐŽĨ ƌĞƐƚƌŝĐƟŶŐ ůĂŶĚ ƵƐĞƐ͘ dŚĞ ĂŝƌƉŽƌƚ ǌŽŶŝŶŐ ŽƌĚŝŶĂŶĐĞ ŵƵƐƚ ďĞ ĂƉƉƌŽǀĞĚďǇďŽƚŚƚŚĞ DŝŶŶĞƐŽƚĂĞƉĂƌƚŵĞŶƚŽĨdƌĂŶƐƉŽƌƚĂƟŽŶKĸĐĞŽĨĞƌŽŶĂƵƟĐƐ;DŶKdͿĂŶĚƚŚĞ:͖ŝƚ ŝƐŶŽƚƐĞƉĂƌĂƚĞůǇƐƵďũĞĐƚƚŽDĂƉƉƌŽǀĂů͘ dŽĨƵůĮůůƚŚŝƐƉƵƌƉŽƐĞ͕ƚŚĞ:ĚĞĐŝĚĞĚƚŽĚĞǀĞůŽƉĂĐƵƐƚŽŵĂŝƌƉŽƌƚǌŽŶŝŶŐŽƌĚŝŶĂŶĐĞĂŶĚ ƉƌŽǀŝĚĞĚƚŚĞƌĞƋƵŝƌĞĚŶŽƟĐĞƚŽDŶKd͘dŚĞ:ĞǀĂůƵĂƚĞĚƚŚĞĨŽůůŽǁŝŶŐĮǀĞĐƵƐƚŽŵ ƐƚĂŶĚĂƌĚǌŽŶŝŶŐĨĂĐƚŽƌƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚDŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞƐ͕ƐĞĐƟŽŶϯϲϬ͘Ϭϲϱϲ͗;ϭͿƚŚĞ ůŽĐĂƟŽŶŽĨƚŚĞĂŝƌƉŽƌƚ͕ƚŚĞƐƵƌƌŽƵŶĚŝŶŐůĂŶĚƵƐĞƐ͕ĂŶĚƚŚĞĐŚĂƌĂĐƚĞƌŽĨŶĞŝŐŚďŽƌŚŽŽĚƐŝŶ WƵďůŝĐŽŵŵĞŶƚƐĂŶĚZĞƐƉŽŶƐĞƐ Ϯ ƚŚĞǀŝĐŝŶŝƚǇŽĨƚŚĞĂŝƌƉŽƌƚ͕ǁŚŝĐŚŝŶĐůƵĚĞĚĂŐĞŽƐƉĂƟĂůĚĂƚĂĞǀĂůƵĂƟŽŶŽĨƚĞŶƐƉĞĐŝĮĐůĂŶĚ ƵƐĞĨĂĐƚŽƌƐŶĞĐĞƐƐĂƌǇƚŽĐŽŶƐŝĚĞƌǁŚĞŶĚĞƚĞƌŵŝŶŝŶŐĂƌĞĂƐŽŶĂďůĞůĞǀĞůŽĨƐĂĨĞƚǇ͖;ϮͿƚŚĞ ĂŝƌƉŽƌƚ͛ƐƚǇƉĞŽĨŽƉĞƌĂƟŽŶƐĂŶĚŚŽǁƚŚĞŽƉĞƌĂƟŽŶƐĂīĞĐƚƐĂĨĞƚǇƐƵƌƌŽƵŶĚŝŶŐƚŚĞĂŝƌƉŽƌƚ͖ ;ϯͿƚŚĞĂĐĐŝĚĞŶƚƌĂƚĞĂƚƚŚĞĂŝƌƉŽƌƚĐŽŵƉĂƌĞĚƚŽĂƐƚĂƟƐƟĐĂůůǇƐŝŐŶŝĮĐĂŶƚƐĂŵƉůĞ͕ŝŶĐůƵĚŝŶŐ ĂŶĂŶĂůǇƐŝƐŽĨĂĐĐŝĚĞŶƚĚŝƐƚƌŝďƵƟŽŶďĂƐĞĚŽŶƚŚĞƌĂƚĞǁŝƚŚĂŚŝŐŚĞƌĂĐĐŝĚĞŶƚŝŶĐŝĚĞŶĐĞ͖;ϰͿ ƚŚĞƉůĂŶŶĞĚůĂŶĚƵƐĞƐǁŝƚŚŝŶĂŶĂŝƌƉŽƌƚŚĂǌĂƌĚĂƌĞĂ͕ŝŶĐůƵĚŝŶŐĂŶǇĂƉƉůŝĐĂďůĞƉůĂƫŶŐ͕ ǌŽŶŝŶŐ͕ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƉůĂŶ͕ Žƌ ƚƌĂŶƐƉŽƌƚĂƟŽŶ ƉůĂŶ͖ ĂŶĚ ;ϱͿ ĂŶǇŽƚŚĞƌ ŝŶĨŽƌŵĂƟŽŶ ƌĞůĞǀĂŶƚƚŽƐĂĨĞƚǇŽƌƚŚĞĂŝƌƉŽƌƚ͘ KŶĐĞĂƉƉƌŽǀĞĚďǇďŽƚŚDŶKdĂŶĚƚŚĞ:͕ƚŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞ ǁŝůůďĞƚƌĂŶƐŵŝƩĞĚƚŽƚŚĞĂīĞĐƚĞĚŵƵŶŝĐŝƉĂůŝƟĞƐƚŽďĞŝŶĐŽƌƉŽƌĂƚĞĚĂŶĚĂĚŵŝŶŝƐƚĞƌĞĚ ǁŝƚŚƚŚĞŝƌƌĞƐƉĞĐƟǀĞǌŽŶŝŶŐĐŽĚĞƐ͘dŚĞ:ǁŝůůďĞƌĞͲĐŽŶǀĞŶĞĚŝŶƚŚĞĞǀĞŶƚƚŚĂƚƚŚĞ ƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞŶĞĞĚƐƚŽďĞƵƉĚĂƚĞĚ͘ ŽŵƉŽƐŝƟŽŶ ŽĨ ƚŚĞ : ŝƐ ŐŽǀĞƌŶĞĚ ďǇ ƐƚĂƚĞ ƐƚĂƚƵƚĞ͘ WĞƌ ƐƚĂƚƵƚĞ͕ ŝƚ ŝƐ ŵĂĚĞ ƵƉ ŽĨ ƌĞƉƌĞƐĞŶƚĂƟǀĞƐĨƌŽŵƚŚĞũƵƌŝƐĚŝĐƟŽŶƐƚŚĂƚǁŝůůďĞĂīĞĐƚĞĚďǇĂŝƌƉŽƌƚǌŽŶŝŶŐʹŝƚǇŽĨ ƌǇƐƚĂů͕ŝƚǇŽĨEĞǁ,ŽƉĞ͕ŝƚǇŽĨƌŽŽŬůǇŶWĂƌŬ͕ŝƚǇŽĨZŽďďŝŶƐĚĂůĞ͕ŝƚǇŽĨDŝŶŶĞĂƉŽůŝƐͶ ĂůŽŶŐǁŝƚŚƚŚĞDĞƚƌŽƉŽůŝƚĂŶŝƌƉŽƌƚƐŽŵŵŝƐƐŝŽŶ;DͿ͘ĂĐŚƉĂƌƟĐŝƉĂƟŶŐũƵƌŝƐĚŝĐƟŽŶŝƐ ĞŶƟƚůĞĚƚŽĐŚŽŽƐĞĂŶĚĂƉƉŽŝŶƚƚǁŽƉƌŝŵĂƌǇǀŽƟŶŐŵĞŵďĞƌƐŽŶƚŚĞ:͕ĂůŽŶŐǁŝƚŚƚǁŽ ĂůƚĞƌŶĂƚĞŵĞŵďĞƌƐǁŚŽĐĂŶǀŽƚĞŝŶƚŚĞĂďƐĞŶĐĞŽĨĂƉƌŝŵĂƌǇŵĞŵďĞƌ͘dŚĞ:ŚĂŝƌŝƐ ƐĞůĞĐƚĞĚďǇƚŚĞƉĂƌƟĐŝƉĂƟŶŐũƵƌŝƐĚŝĐƟŽŶƐĂŶĚŝƐĂůƐŽĂǀŽƟŶŐŵĞŵďĞƌ͘DƐƵƉƉŽƌƚƐƚĂī ĂƌĞŶŽƚǀŽƟŶŐŵĞŵďĞƌƐ͘DŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƌĞƋƵĞƐƟŶŐƚŚĞĐƌĞĂƟŽŶŽĨĂ:͕ďƵƚ DŽŶůǇŚĂƐƚǁŽǀŽƟŶŐŵĞŵďĞƌƐŽŶƚŚĞ:͘ :ŵĞĞƟŶŐƐĂƌĞŽƉĞŶƚŽƚŚĞƉƵďůŝĐĂŶĚƐƚĂŬĞŚŽůĚĞƌƐŝŶƚĞƌĞƐƚĞĚŝŶƚŚĞƉƌŽĐĞƐƐŵĂǇ ĂƩĞŶĚĂŶĚƉƌŽǀŝĚĞŝŶƉƵƚ͘ Ϯ͘ ŝīĞƌĞŶĐĞƐĞƚǁĞĞŶƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞĂŶĚƚŚĞϭϵϴϯKƌĚŝŶĂŶĐĞʹ dŚĞĂƌĞĂĂƌŽƵŶĚƌǇƐƚĂůŝƌƉŽƌƚŝƐĂůƌĞĂĚǇǌŽŶĞĚĨŽƌĂŝƌƉŽƌƚƐĂĨĞƚǇďǇƚŚĞϭϵϴϯKƌĚŝŶĂŶĐĞ͘ ^ŝŶĐĞƚŚĞƉĂƐƐĂŐĞŽĨƚŚĂƚŽƌĚŝŶĂŶĐĞ͕DŚĂƐůĞŶŐƚŚĞŶĞĚƚŚĞŵĂŝŶƌƵŶǁĂǇ͖ĐůŽƐĞĚƚŚĞ ƐĞĐŽŶĚƉĂƌĂůůĞůƌƵŶǁĂǇ͕ĐŽŶǀĞƌƟŶŐŝƚƚŽĂƉĂƌĂůůĞůƚĂǆŝǁĂǇ͖ĂŶĚƐŚŽƌƚĞŶĞĚƚŚĞƚƵƌĨƌƵŶǁĂǇ͘ 'ŝǀĞŶƚŚĞƐĞĐŚĂŶŐĞƐ͕ƚŚĞϭϵϴϯKƌĚŝŶĂŶĐĞƉƌŽƚĞĐƚĞĚĂŶĂŝƌƉŽƌƚĐŽŶĮŐƵƌĂƟŽŶƚŚĂƚŚĂƐ ĐŚĂŶŐĞĚƐŝŐŶŝĮĐĂŶƚůǇ͘ dŚƵƐ͕ŽŶĞŽĨƚŚĞŐŽĂůƐŽĨƚŚĞ:ƉƌŽĐĞƐƐŝƐƚŽĐƌĞĂƚĞĂŶŽƌĚŝŶĂŶĐĞƚŚĂƚƌĞŵŽǀĞƐƐŽŵĞ ƌĞƐƚƌŝĐƟŽŶƐƚŚĂƚĂƌĞĐƵƌƌĞŶƚůǇŝŶͲƉůĂĐĞǁŝƚŚƚŚĞĞǆŝƐƟŶŐϭϵϴϯKƌĚŝŶĂŶĐĞ͕ ƉƌŽƚĞĐƟŶŐ ĂŝƌĮĞůĚĞůĞŵĞŶƚƐƚŚĂƚŚĂǀĞĐŚĂŶŐĞĚ͕ŽƌŶŽůŽŶŐĞƌĞǆŝƐƚ͘&ŽƌĞǆĂŵƉůĞ͕ƚŚĞϭϵϴϯKƌĚŝŶĂŶĐĞ ƐŚŽǁƐƚǁŽŶŽƌƚŚǁĞƐƚͬƐŽƵƚŚĞĂƐƚƌƵŶǁĂǇƐ͘DƌĞĐĞŶƚůǇĐůŽƐĞĚŽŶĞŽĨƚŚŽƐĞƌƵŶǁĂǇƐ WƵďůŝĐŽŵŵĞŶƚƐĂŶĚZĞƐƉŽŶƐĞƐ ϯ ;ZƵŶǁĂǇ ϭϰZͲϯϮ>Ϳ͘ dŚĞƌĞĨŽƌĞ͕ ƚŚĞ ƌĂŌ ƌǇƐƚĂů ŝƌƉŽƌƚ ŽŶŝŶŐ KƌĚŝŶĂŶĐĞ ƌĞŵŽǀĞƐ ƌĞƐƚƌŝĐƟŽŶƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞĨŽƌŵĞƌƌƵŶǁĂǇ͘͘ ĚĚŝƟŽŶĂůůǇ͕ƚŚĞ:ĐŚŽƐĞƚŽĐƌĞĂƚĞĂĐƵƐƚŽŵǌŽŶŝŶŐŽƌĚŝŶĂŶĐĞ͕ƵƐŝŶŐĂƉƌŽĐĞƐƐƚŚĂƚǁĂƐ ŶŽƚĂǀĂŝůĂďůĞǁŚĞŶƚŚĞϭϵϴϯKƌĚŝŶĂŶĐĞǁĂƐƉĂƐƐĞĚ͘ƐŽĨƵŐƵƐƚϭ͕ϮϬϭϵ͕ĂŶĂŵĞŶĚĞĚ ƐƚĂƚƵƚĞ ŐŽǀĞƌŶŝŶŐ ĂŝƌƉŽƌƚ ǌŽŶŝŶŐ ǁĞŶƚ ŝŶƚŽ ĞīĞĐƚ ŝŶ DŝŶŶĞƐŽƚĂ͘DŶKd ĞƌŽŶĂƵƟĐƐ ĐĂƌƌŝĞĚĂďŝůůƚŚƌŽƵŐŚƚŚĞDŝŶŶĞƐŽƚĂ>ĞŐŝƐůĂƚƵƌĞƚŚĂƚǁĂƐƉĂƐƐĞĚ ďǇ ƚŚĞ >ĞŐŝƐůĂƚƵƌĞ͕ ĐĂƉƉŝŶŐƚŚĞƐŝǆͲǇĞĂƌƉƌŽĐĞƐƐƚŽƵƉĚĂƚĞƚŚĞƐƚĂƚĞĂŝƌƉŽƌƚǌŽŶŝŶŐůĂǁ͘ dŚĞƌĞĐĞŶƚĐŚĂŶŐĞƐƚŽƚŚĞƐƚĂƚĞĂŝƌƉŽƌƚǌŽŶŝŶŐƐƚĂƚƵƚĞŝŶĐůƵĚĞďĞƩĞƌŝŶƚĞŐƌĂƟŽŶŽĨĂŝƌƉŽƌƚ ǌŽŶŝŶŐ ǁŝƚŚ ůŽĐĂů ůĂŶĚ ƵƐĞ ƉůĂŶŶŝŶŐ͕ ŇĞǆŝďŝůŝƚǇ ƚŽ ĞŶĂĐƚ ĐƵƐƚŽŵĂŝƌƉŽƌƚǌŽŶŝŶŐ͕ĂŶĚ ĂůŝŐŶŵĞŶƚǁŝƚŚŵƵŶŝĐŝƉĂůĂŶĚĐŽƵŶƚǇƉƌŽĐĞƐƐƌĞƋƵŝƌĞŵĞŶƚƐ͘DŶKdĞƌŽŶĂƵƟĐƐŚŽƐƚĞĚ ĂŽŶŝŶŐĚǀŝƐŽƌǇŽŵŵŝƩĞĞƚŽŝĚĞŶƟĨǇĂŶĚĂĚĚƌĞƐƐĂŝƌƉŽƌƚǌŽŶŝŶŐƌĞůĂƚĞĚŝƐƐƵĞƐĂŶĚ ĐŽŶĚƵĐƚĞĚĂƐĞƌŝĞƐŽĨƚĞŶĐŽŵŵƵŶŝƚǇŽƵƚƌĞĂĐŚŵĞĞƟŶŐƐŝŶϮϬϭϱƚŽĚŝƐĐƵƐƐƉƌŽƉŽƐĞĚ ĐŚĂŶŐĞƐ͘ dŚĞ ĂŵĞŶĚĞĚ ƐƚĂƚƵƚĞ ĂůůŽǁƐ Ă : ƚŽ ƉƌŽƉŽƐĞ ĂŝƌƉŽƌƚ ǌŽŶŝŶŐ ƌĞŐƵůĂƟŽŶƐ ďĂƐĞĚ ŽŶ DŶKd͛ƐůĞŐĂĐǇǌŽŶŝŶŐƐƚĂŶĚĂƌĚƐĂŶĚŵŽĚĞůƐĂĨĞƚǇǌŽŶĞƐ͕ŽƌƚŽƉƌŽƉŽƐĞĂŝƌƉŽƌƚǌŽŶŝŶŐ ƌĞŐƵůĂƟŽŶƐďĂƐĞĚŽŶĐƵƐƚŽŵĂŝƌƉŽƌƚǌŽŶŝŶŐƐƚĂŶĚĂƌĚƐĂŶĚĨĂĐƚŽƌƐ͘dŚĞ:ǀŽƚĞĚƚŽ ĚĞǀĞůŽƉĂĐƵƐƚŽŵĂŝƌƉŽƌƚǌŽŶŝŶŐƌĞŐƵůĂƟŽŶ͘ƐĂƌĞƐƵůƚ͕ƚŚĞ:ŝƐŶŽƚƌĞƋƵŝƌĞĚƚŽ ĐŽŶƐŝĚĞƌŽƌŝŶĐŽƌƉŽƌĂƚĞƚŚĞůĞŐĂĐǇDŶKdDŽĚĞů^ĂĨĞƚǇŽŶĞŽƌŝŶĐŽƌƉŽƌĂƚĞ ŝƚƐ ƚƌĂĚŝƟŽŶĂů^ĂĨĞƚǇŽŶĞ͕͕͟͟͞͞Žƌ͟͞ĐƌŝƚĞƌŝĂ͘ ƐĂƌĞƐƵůƚ͕ƚŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞƌĞĚƵĐĞƐƐŽŵĞůĂŶĚƵƐĞƌĞƐƚƌŝĐƟŽŶƐ ĐƵƌƌĞŶƚůǇŝŶƉůĂĐĞŝŶƚŚĞϭϵϴϯKƌĚŝŶĂŶĐĞ͘dŚĞϭϵϴϯKƌĚŝŶĂŶĐĞĐŽŶƚĂŝŶƐƌĞƐƚƌŝĐƟǀĞůĂŶĚƵƐĞ ǌŽŶĞƐ͕ǁŚŝĐŚǁĞƌĞĐƌĞĂƚĞĚƵƐŝŶŐDŶKd͛ƐůĞŐĂĐǇǌŽŶŝŶŐƐƚĂŶĚĂƌĚƐĂŶĚŵŽĚĞůƐĂĨĞƚǇǌŽŶĞƐ ;ƐĞĞDŝŶŶ͘Z͘Ś͘ϴϴϬϬ͘ϮϰϬϬͿ͘ŽŶĞƐĂŶĚĐŽǀĞƌĂƚƌĂƉĞǌŽŝĚĂůĂƌĞĂĞǆƚĞŶĚŝŶŐŽƵƚǁĂƌĚ ĨƌŽŵĞĂĐŚƌƵŶǁĂǇ͕ǁŝƚŚƚŚĞƐŝǌĞŽĨƚŚĞƚƌĂƉĞǌŽŝĚĚĞƚĞƌŵŝŶĞĚďǇƚŚĞůĞŶŐƚŚŽĨƚŚĞƌƵŶǁĂǇ ĂǁĂǇĨƌŽŵǁŚŝĐŚƚŚĞǇƉƌŽũĞĐƚ͘dŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞƵƐĞƐĂĚŝīĞƌĞŶƚ ĂƉƉƌŽĂĐŚƚŽĐƌĞĂƟŶŐůĂŶĚƵƐĞǌŽŶĞƐ͘hƐŝŶŐĂĐƵƐƚŽŵǌŽŶŝŶŐĂƉƉƌŽĂĐŚ͕ƚŚĞƉƌŽƉŽƐĞĚĚƌĂŌ ŽƌĚŝŶĂŶĐĞĐƌĞĂƚĞƐǌŽŶĞƐǁŝƚŚƐŚĂƉĞƐďĂƐĞĚƵƉŽŶĂŶĂŶĂůǇƐŝƐŽĨĂĐĐŝĚĞŶƚƉƌŽďĂďŝůŝƚǇĚĂƚĂ ƐĞƚƐ͕ƌĂƚŚĞƌƚŚĂŶĂƐĞƚƐŝǌĞĂŶĚƐŚĂƉĞĚŝĐƚĂƚĞĚďǇƚŚĞůĞŶŐƚŚŽĨƚŚĞƌƵŶǁĂǇ͘dŚŝƐĐƵƐƚŽŵ ǌŽŶŝŶŐĂƉƉƌŽĂĐŚǁŝůůƌĞĚƵĐĞƚŚĞĨŽŽƚƉƌŝŶƚŽĨůĂŶĚƵƐĞƌĞƐƚƌŝĐƟŽŶƐĂŶĚǁŝůůĞŶƐƵƌĞƚŚĂƚƚŚĞ ƉƌŽƉŽƐĞĚƌĞƐƚƌŝĐƟŽŶƐĂƌĞƐƵƉƉŽƌƚĞĚďǇĂĚŽĐƵŵĞŶƚĞĚƐĂĨĞƚǇͬƌŝƐŬĂƐƐĞƐƐŵĞŶƚ͘ ϯ͘ WƵďůŝĐ ŽŵŵĞŶƚ ǀĂŝůĂďŝůŝƚǇʹƉƵďůŝĐ ŚĞĂƌŝŶŐ ŽŶ ƚŚĞ ƌĂŌƌǇƐƚĂů ŝƌƉŽƌƚ ŽŶŝŶŐ KƌĚŝŶĂŶĐĞǁĂƐƐĐŚĞĚƵůĞĚĨŽƌ&ĞďƌƵĂƌǇϮϯ͕ϮϬϮϯ͘dŚŝƐƉƵďůŝĐŚĞĂƌŝŶŐǁĂƐƉŽƐƚƉŽŶĞĚĚƵĞ ƚŽŝŶĐůĞŵĞŶƚǁĞĂƚŚĞƌ͘&ŽƌĂƉĞƌŝŽĚĨƌŽŵ&ĞďƌƵĂƌǇϳ͕ϮϬϮϯƚŚƌŽƵŐŚDĂƌĐŚϴ͕ϮϬϮϯ͕ƚŚĞ WƵďůŝĐŽŵŵĞŶƚƐĂŶĚZĞƐƉŽŶƐĞƐ ϰ :ƐŽůŝĐŝƚĞĚĂŶĚƌĞĐĞŝǀĞĚƉƵďůŝĐĐŽŵŵĞŶƚƐŽŶƚŚĞƌĂŌƌǇƐƚĂů ŝƌƉŽƌƚ ŽŶŝŶŐ KƌĚŝŶĂŶĐĞ͘ŽŵŵĞŶƚƐĨƌŽŵƚŚŝƐƉĞƌŝŽĚǁĞƌĞĐĂƚĂůŽŐƵĞĚĂŶĚĂƌĞŝŶĐůƵĚĞĚŝŶƚŚĞĂƩĂĐŚĞĚ ůŝƐƚďĞůŽǁ͘dŚĞ:ƐŽůŝĐŝƚĞĚĂŶĚƌĞĐĞŝǀĞĚƉƵďůŝĐĐŽŵŵĞŶƚƐŽŶƚŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚ ŽŶŝŶŐKƌĚŝŶĂŶĐĞĂƐĞĐŽŶĚƟŵĞĨƌŽŵƉƌŝůϰ͕ϮϬϮϯ͕ƚŚƌŽƵŐŚDĂǇϯ͕ϮϬϮϯ͕ŝŶĐŽŶũƵŶĐƟŽŶ ǁŝƚŚĂƉƵďůŝĐŚĞĂƌŝŶŐƚŚĂƚǁĂƐƌĞƐĐŚĞĚƵůĞĚĨŽƌƉƌŝůϭϵ͕ϮϬϮϯ͘ŽŵŵĞŶƚƐƌĞĐĞŝǀĞĚĚƵƌŝŶŐ ƚŚŝƐƉĞƌŝŽĚĂƌĞĂůƐŽĐĂƚĂůŽŐƵĞĚŝŶƚŚĞĂƩĂĐŚĞĚƚĂďůĞďĞůŽǁ͘ ϰ͘ :DĞĞƟŶŐƐʹƐŽĨDĂǇϭϱ͕ϮϬϮϯ͕ƚŚĞƌĞŚĂǀĞďĞĞŶϳ:ŵĞĞƟŶŐƐ͕ĞĂĐŚŽĨǁŚŝĐŚǁĂƐ ĐŽŶĚƵĐƚĞĚŝŶĂƉƵďůŝĐͲĨŽƌƵŵ͘/ŶĂĚĚŝƟŽŶ͕ŝŶĨŽƌŵĂƟŽŶƌĞŐĂƌĚŝŶŐƚŚĞƉƌŽĐĞƐƐƚŽĐƌĂŌƚŚĞ ƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞŝƐĂǀĂŝůĂďůĞŽŶƚŚĞƌǇƐƚĂů:ƉƌŽũĞĐƚǁĞďƐŝƚĞ͕ ǁŚĞƌĞ ƉƌĞǀŝŽƵƐ ĂŶĚ ĨƵƚƵƌĞ ŵĞĞƟŶŐ ŝŶĨŽƌŵĂƟŽŶ ;ŵĞĞƟŶŐ ŵŝŶƵƚĞƐ͕ ĂŐĞŶĚĂƐͿ ĐĂŶ ďĞ ĨŽƵŶĚ͘ŌĞƌƚŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞƉƌŽŐƌĞƐƐĞƐƚŚƌŽƵŐŚDŶKdΖƐ ƌĞǀŝĞǁƉƌŽĐĞƐƐ͕ƚŚĞ:ǁŝůůŶĞĞĚƚŽŵĞĞƚĂŐĂŝŶƚŽƌĞǀŝĞǁƚŚĞƌĞƐƵůƚƐŽĨDŶKd͛ƐƌĞǀŝĞǁ͘ ůŝŶŬŝƐƉƌŽǀŝĚĞĚŚĞƌĞĨŽƌĨƵƌƚŚĞƌŝŶĨŽƌŵĂƟŽŶ͗ŚƩƉƐ͗ͬͬŵĞƚƌŽĂŝƌƉŽƌƚƐ͘ŽƌŐͬĐƌǇƐƚĂůͲũŽŝŶƚͲ ĂŝƌƉŽƌƚͲǌŽŶŝŶŐͲďŽĂƌĚ͘&ƵƚƵƌĞŵĞĞƟŶŐŝŶĨŽƌŵĂƟŽŶǁŝůůĐŽŶƟŶƵĞƚŽďĞƉŽƐƚĞĚĂƚƚŚŝƐůŝŶŬ͕ ĂŶĚŵĞĞƟŶŐƐǁŝůůĐŽŶƟŶƵĞƚŽďĞŽƉĞŶƚŽƉƵďůŝĐƉĂƌƟĐŝƉĂƟŽŶ͘ ϱ͘ dƌĞĞdƌŝŵŵŝŶŐĂŶĚZĞŵŽǀĂůʹdŚĞƌĞŐƵůĂƟŽŶŽĨƚƌĞĞƐƚŚĂƚďĞĐŽŵĞĂŝƌƐƉĂĐĞŽďƐƚƌƵĐƟŽŶƐ ŝƐĂĚĚƌĞƐƐĞĚŝŶ^ĞĐƟŽŶ/s͘;Ϳ;ϮͿŽĨƚŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐ KƌĚŝŶĂŶĐĞ͘ Ɛ ĂĚĚƌĞƐƐĞĚŝŶƐƵďƐĞĐƟŽŶ;ϮͿ;ĂͿ͕ƚŚĞƌĞŵŽǀĂůŽƌƚƌŝŵŵŝŶŐŽĨĂƚƌĞĞĐŽŵĞƐĂďŽƵƚǁŚĞŶ͞ƚŚĞ ǁŚŽůĞŽƌĂŶǇƉĂƌƚŽĨĂŶǇdƌĞĞ΀ŝƐ΁ĚĞƚĞƌŵŝŶĞĚƚŽďĞĂŶŝƌƉŽƌƚ,ĂǌĂƌĚďǇƚŚĞ&͘͟dŚŝƐ ĚĞƚĞƌŵŝŶĂƟŽŶ ďǇ ƚŚĞ & ŽĐĐƵƌƐ ǁŝƚŚŝŶ ƚŚĞ ĐŽŶƚĞǆƚ ŽĨ ĂŶ & ƌĞǀŝĞǁ ŽĨ ĂŝƌƐƉĂĐĞ ŽďƐƚƌƵĐƟŽŶƐ͘dŚĞƐĞƌĞǀŝĞǁƐŽĐĐƵƌǁŚĞŶĂŶĂŝƌƉŽƌƚƉƌŽũĞĐƚƌĞƋƵŝƌĞƐƚŚĞŵ͕ŽƌǁŚĞŶ ƉůĂŶŶŝŶŐĚŽĐƵŵĞŶƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞĂŝƌƉŽƌƚĂƌĞĚĞǀĞůŽƉĞĚĨŽƌĂƉƉƌŽǀĂůďǇƚŚĞ&͘ dŚĞƐĞĚĞƚĞƌŵŝŶĂƟŽŶƐ͕ƌĞƋƵŝƌĞĚďǇĨĞĚĞƌĂůƌĞŐƵůĂƟŽŶƐ͕ŚĂǀĞďĞĞŶŵĂĚĞŝŶƚŚĞƉĂƐƚĂŶĚ ǁŽƵůĚƐƟůůŚĂǀĞŽĐĐƵƌƌĞĚĞǀĞŶŝĨƚŚĞ:ŚĂĚŶŽƚƉƌŽƉŽƐĞĚĂƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐ KƌĚŝŶĂŶĐĞ͘ /ĨƚŚĞ&ĚĞƚĞƌŵŝŶĞƐƚŚĂƚĂƚƌĞĞ;ŽƌĂƉĂƌƚŽĨƚŚĞƚƌĞĞͿŚĂƐďĞĐŽŵĞĂŶŝƌƉŽƌƚ,ĂǌĂƌĚ͕ ƚŚĞŶƚŚĞĐŝƚǇŝŶǁŚŝĐŚƚŚĞƚƌĞĞŝƐůŽĐĂƚĞĚ͕ĂƐĂĚŵŝŶŝƐƚƌĂƚŽƌŽĨƚŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚ ŽŶŝŶŐKƌĚŝŶĂŶĐĞ͕ǁŝůůŶŽƟĨǇƚŚĞŽǁŶĞƌŽĨƚŚĞŶĞĞĚƚŽƚƌŝŵŽƌƌĞŵŽǀĞƚŚĞƚƌĞĞ͘ŝƟĞƐŵĂǇ ǁŽƌŬƉƌŽĂĐƟǀĞůǇǁŝƚŚŽǁŶĞƌƐƚŽƉĞƌĨŽƌŵƚŚĞŶĞĐĞƐƐĂƌǇƌĞŵŽǀĂůĂŶĚƚƌŝŵŵŝŶŐ͘ŝƟĞƐĂƌĞ 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ĂƐ ĐŽŶƐƟƚƵƟŶŐ ĂŶ ŝŵƉĞƌŵŝƐƐŝďůĞ ƵƐĞ͘,ĂǌĂƌĚŽƵƐ ůŝŐŚƟŶŐ ƐŝƚƵĂƟŽŶƐŽĨƚŚĞƚǇƉĞĐŽŶƚĞŵƉůĂƚĞĚďǇƚŚĞŽƌĚŝŶĂŶĐĞƵƐƵĂůůǇŽĐĐƵƌǁŝƚŚůĂƌŐĞ͕ŶŽŶͲ ƌĞƐŝĚĞŶƟĂů͕ůŝŐŚƟŶŐŝŶƐƚĂůůĂƟŽŶƐ͘^ŝŵŝůĂƌůǇ͕ƚǇƉŝĐĂů͕ƌĞƐŝĚĞŶƟĂůƐŽůĂƌŝŶƐƚĂůůĂƟŽŶƐĂƌĞŶŽƚ ůŝŬĞůǇƚŽďĞŝŵƉĞƌŵŝƐƐŝďůĞƵƐĞƐ͘/ŶĞŝƚŚĞƌĐĂƐĞ͕ŚŽǁĞǀĞƌ͕ƚŚĞ:ĐĂŶŶŽƚŐƵĂƌĂŶƚĞĞƚŚĂƚ ƚŚĞ ƉĂƌƟĐƵůĂƌ ĐŽŶĚŝƟŽŶƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ Ă ƌĞƐŝĚĞŶƟĂů ƉƌŽũĞĐƚ ǁŝůůŶŽƚŐŝǀĞƌŝƐĞƚŽĂ ĚĞƚĞƌŵŝŶĂƟŽŶƚŚĂƚƚŚĞƉƌŽũĞĐƚǁŽƵůĚĐƌĞĂƚĞĂŶŝŵƉĞƌŵŝƐƐŝďůĞƵƐĞ͘ ϵ͘ ůĂƌŝƚǇŽĨKƌĚŝŶĂŶĐĞdĞǆƚʹdŚĞ:ĂĐŬŶŽǁůĞĚŐĞƐƚŚĂƚƚŚĞƚĞǆƚŽĨƚŚĞŽƌĚŝŶĂŶĐĞŝƐ ŝŶǀŽůǀĞĚĂŶĚĐĂŶďĞĚŝĸĐƵůƚĨŽƌƌĞƐŝĚĞŶƚƐƚŽŝŶƚĞƌƉƌĞƚ͘dŚĞƌĂŌƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐ KƌĚŝŶĂŶĐĞ ǁĂƐ ĚĞƐŝŐŶĞĚ ďǇ ƚŚĞ : ƚŽ ŐƵŝĚĞ ƚŚĞ ĐŝƟĞƐ͕ ĂƐ ĂĚŵŝŶŝƐƚƌĂƚŽƌƐ ŽĨ ƚŚĞ ŽƌĚŝŶĂŶĐĞ͕ŝŶƚŚĞŝƌĂƉƉůŝĐĂƟŽŶŽĨŝƚƐƉƌŽǀŝƐŝŽŶƐ͘ƐƐƵĐŚ͕ƚŚĞĂƵĚŝĞŶĐĞĨŽƌƚŚĞƚĞǆƚŝƐƚŚĞ ƉƌŽĨĞƐƐŝŽŶĂůƐƚĂīĞŵƉůŽǇĞĚďǇĐŝƟĞƐƚŽĂĚŵŝŶŝƐƚĞƌǌŽŶŝŶŐƉƌŽŐƌĂŵƐ͘/ŶĂĚĚŝƟŽŶ͕ƚŚĞƌĂŌ ƌǇƐƚĂůŝƌƉŽƌƚŽŶŝŶŐKƌĚŝŶĂŶĐĞǁĂƐĚƌĂŌĞĚďǇƚŚĞ:ŝŶĂŵĂ ŶŶĞƌĂůůŽǁŝŶŐƌĞĂƐŽŶĂďůĞ ŇĞǆŝďŝůŝƚǇŽŶƚŚĞƉĂƌƚŽĨƚŚĞƐĞĂĚŵŝŶŝƐƚƌĂƚŽƌƐ͕ǁŚŝůĞƐƚĂǇŝŶŐĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞŝŶƚĞŶƚŽĨ 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ϲ,ĞůůŽ͕^ĞĐƌĞƚĂƌǇƚŽƚŚĞƌǇƐƚĂů:ŽŝŶƚŝƌƉŽƌƚŽŶŝŶŐŽĂƌĚͲ/ŚĂĚŶŽƚŝŶƚĞŶĚĞĚƚŽŵĂŬĞĂĐŽŵŵĞŶƚŽŶƚŚĞĐŚĂŶŐĞƚŽƚŚĞǌŽŶŝŶŐŽĨƚŚĞĂŝƌƉŽƌƚ͘/ƵŶĚĞƌƐƚĂŶĚƚŚĞƌĞĂƌĞƐĂĨĞƚǇƌĞĂƐŽŶƐĨŽƌŝƚ͕ĂŶĚƚŚĞĂŝƌƉŽƌƚŝƐĂŶŝŵƉŽƌƚĂŶƚƉĂƌƚŽĨŽƵƌĐŽŵŵƵŶŝƚǇ͘,ŽǁĞǀĞƌ͕/ǁŽƵůĚůŝŬĞƚŽŵĂŬĞĐĞƌƚĂŝŶƚŽŵĂŬĞŝƚŬŶŽǁŶ/ĂŵŶŽƚŝŶĨĂǀŽƌŝĨƚŚĞĐŚĂŶŐĞŝŶƚŚĞǌŽŶŝŶŐŵĞĂŶƐƚŚĞƌĞĐĞŶƚůǇŝŶĐƌĞĂƐĞĚůŽǁĨůŝŐŚƚƐ;ďƵǌǌŝŶŐͿŽǀĞƌŵǇŶĞŝŐŚďŽƌŚŽŽĚ;ĚŝƌĞĐƚůǇƐŽƵƚŚͿǁŝůůĐŽŶƚŝŶƵĞŽƌďĞĐŽŵĞǁŽƌƐĞ͘dŚŝƐƉƌĞǀŝŽƵƐůǇŽŶůǇŚĂƉƉĞŶĞĚŽŶĐĞĞǀĞƌǇĨĞǁŵŽŶƚŚƐ͕ǁŚĞƌĞ/ǁŽƵůĚǁƌŝƚĞŝƚŽĨĨƚŽĂŶĞǁƐƚƵĚĞŶƚĂƚƚŚĞĨůŝŐŚƚƐĐŚŽŽů͘/ƚŚĂƐďĞĞŶŚĂƉƉĞŶŝŶŐĂƚůĞĂƐƚŽŶĐĞƉĞƌĚĂǇĨŽƌƚŚĞƉĂƐƚǁĞĞŬ͕ŝŶƚŚĞĂĨƚĞƌŶŽŽŶƐ͕ŝŶĐůƵĚŝŶŐĂƚϮ͗ϱϮWDƚŽĚĂǇ͘DĂŶǇĚĂǇƐ/ĚŽŶŽƚŚĞĂƌĂŶǇĂŝƌƚƌĂĨĨŝĐ͕ĂŶĚƚŚĞŶƚǇƉŝĐĂůůǇ͕ŽŶůǇŚĞůŝĐŽƉƚĞƌƐƌĞƚƵƌŶŝŶŐĨƌŽŵEŽƌƚŚDĞŵŽƌŝĂůĐĂƚĐŚŵǇĂƚƚĞŶƚŝŽŶ͕ďĞĐĂƵƐĞƚŚĞǇĨůǇƉƌĞƚƚǇĚŝƌĞĐƚůǇŽǀĞƌŵǇƉƌŽƉĞƌƚǇ͘/ŚĂǀĞĐŽŶƐŝĚĞƌĞĚŵǇƐĞůĨďůĞƐƐĞĚƚŽůŝǀĞƐŽĐůŽƐĞƚŽƚŚĞĂŝƌƉŽƌƚǁŝƚŚĨĂŝƌůǇůŝƚƚůĞĚŝƐƚƵƌďĂŶĐĞ͕ďƵƚƚŚŝƐŶĞǁƌŽƵƚŝŶĞŝƐƐŚĂŬŝŶŐƚŚĞǁŝŶĚŽǁƐĂŶĚŝƚĞŵƐŝŶŵǇŚŽŵĞĂŶĚĚŝƐƌƵƉƚŝŶŐŵǇǁŽƌŬ͘ŐĂŝŶ͕/ĚŽŶŽƚǁĂŶƚƚŽƐƚĂŶĚŝŶƚŚĞǁĂǇŽĨŝŵƉƌŽǀĞĚƐĂĨĞƚǇĨŽƌƚŚĞƉŝůŽƚƐ͕ĂŝƌƉŽƌƚĐƌĞǁ͕ŽƌƉƵďůŝĐ͕ďƵƚ/ǁŽƵůĚůŝŬĞƚŽŵĂŬĞƐƵƌĞƚŽƌĞŐŝƐƚĞƌĂĐŽŶĐĞƌŶĂďŽƵƚƚŚĞƉŽƐƐŝďŝůŝƚǇŽĨŝŶĐƌĞĂƐĞĚŶŽŝƐĞĂŶĚĚŝƐƚƵƌďĂŶĐĞƚŽƚŚĞƐƵƌƌŽƵŶĚŝŶŐĐŽŵŵƵŶŝƚǇ͕ĂƐ/ΖǀĞďĞĞŶǀĞƌǇƌĞĐĞŶƚůǇƌĞŵŝŶĚĞĚŵŝŐŚƚďĞĂŶŝƐƐƵĞǁŝƚŚƚŚŝƐĐŚĂŶŐĞ͘dŚĂŶŬǇŽƵĨŽƌƚĂŬŝŶŐŵǇĐŽŶĐĞƌŶŝŶƚŽĐŽŶƐŝĚĞƌĂƚŝŽŶ͘^ĞĞ'ĞŶĞƌĂůZĞƐƉŽŶƐĞEŽ͘ϲ͘ĂǀŝĚƵŵŵŝŶŐƐ;WƵďůŝĐ,ĞĂƌŝŶŐ͕tƌŝƚƚĞŶͿϰͬϭϵͬϮϬϮϯ 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ƌĞĂƐŽŶĂďůĞůĞǀĞůŽĨƐĂĨĞƚǇǁŚŝůĞĐŽŶƐŝĚĞƌŝŶŐĐŽŵƉĂƚŝďůĞĐŽŵŵƵŶŝƚǇĚĞǀĞůŽƉŵĞŶƚ͘ĚĚŝƚŝŽŶĂůůǇ͕ƚŚĞƌĂĨƚƌǇƐƚĂůŽŶŝŶŐKƌĚŝŶĂŶĐĞŝƐŝŶƚĞŶĚĞĚƚŽǁŽƌŬŝŶƚĂŶĚĞŵǁŝƚŚƚŚĞƉƌĞͲĞǆŝƐƚŝŶŐǌŽŶŝŶŐ͕ŽŶůǇƐƵƉĞƌƐĞĚŝŶŐĂŶĞǆŝƐƚŝŶŐǌŽŶŝŶŐƌĞƐƚƌŝĐƚŝŽŶǁŚĞŶƚŚĞƌĂĨƚƌǇƐƚĂůŽŶŝŶŐKƌĚŝŶĂŶĐĞĐŽŶƚĂŝŶƐĂƐƚƌŝĐƚĞƌƌĞƐƚƌŝĐƚŝŽŶĂƉƉůŝĐĂďůĞƚŽƚŚĞƐĂŵĞƵƐĞ͘^ĞĞ'ĞŶĞƌĂůZĞƐƉŽŶƐĞEŽƐ͘ϭĂŶĚϰ͘ůĞĐƚĞĚŽĨĨŝĐŝĂůƐĨƌŽŵƌǇƐƚĂůƉĂƌƚŝĐŝƉĂƚĞĚŝŶƚŚĞĨŽƌŵĂƚŝŽŶŽĨƚŚĞ:͕ĚĞůĞŐĂƚĞĚƚŚĞŝƌƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐƚŽƉĂƌƚŝĐŝƉĂƚĞŝŶƚŚĞ:͛ƐĚĞůŝďĞƌĂƚŝǀĞǁŽƌŬ͕ĂŶĚĂƌĞƉĞƌŵŝƚƚĞĚƚŽĂƚƚĞŶĚŵĞĞƚŝŶŐƐŽĨƚŚĞ:͘ WƵďůŝĐŽŵŵĞŶƚƐĂŶĚZĞƐƉŽŶƐĞƐϯ:ŽƐĞƉŚƵŶĐĂŶ;WƵďůŝĐ,ĞĂƌŝŶŐ͕sĞƌďĂůͿϰͬϭϵͬϮϬϮϯ 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Department Year to Replace Item Description Estimated Cost Streets Public works 2024 Railroad repair 75,000$ Public works 2024 Contract mill and overlay 1,120,000$ Public works 2024 In house mill and overlay 60,775$ Public works 2024 Misc concrete work 61,903$ Public works 2024 ADA Ped Ramp replacements 45,020$ Public works 2024 Utility Reconstruction 300,000$ Police Equipment Police 2024 Ballistic windows 56,000$ Police 2024 Lease Vehicle (5) and Equipment 241,116$ Police 2024 2024 Sprinter Raid Van 175,000$ Parks Recreation 2024 Basketball court - Welcome 25,000$ Recreation 2024 Valley Place Park Hard Court Improvements 600,000$ Tennis Court Lights/Surfacing -$ Basketball Court -$ Recreation 2024 ALL Pavement (Sidewalks @ Trails)110,000$ Utilities Water 2024 6235 -Gate Valve and Hydrant replacement 75,000$ Water 2024 Utility Reconstruction 1,500,000$ Water 2024 Replace SENSUS Radios 350,000$ Sewer 2024 Utility Reconstruction 800,000$ Sewer 2024 Perry Lift Station Panel Replacement 70,000$ Storm water 2024 Rate Control, water quality, structure Rehab projects 150,000$ Storm water 2024 Utility Reconstruction 50,000$ Fleet/Vehicles Comm Dev 2024 Replace #56 - 2014 Ford Focus 26,430$ Public Works 2024 Replace #108 Cushman Gas Truckster 4 Wheel (Replace with ToolCat)100,000$ Public Works 2024 Replace #303 - Sidewalk machine 225,000$ Public Works 2024 Replace #351 - Rayco brush chipper 52,804$ Public Works 2024 Replace #451 - SRECO easement machine 44,590$ Public Works 2024 Replace #310 - 2010 Chevy 3500 85,000$ City of Crystal, Minnesota Capital Improvement Program Schedule of Planned Capital Outlay - 2024 Program Year Buildings City Buildings 2024 HVAC cleaning 35,000$ City Buildings 2024 Replace city hall elevator 200,000$ Public Works 2024 Install boiler for heater 35,000$ Community Center 2024 Security Cameras 80,000$ Community Center 2024 ADA and security update Front desk 85,000$ Pool 2024 Grogan Park Pool improvements 2,800,000$ Pool 2024 Grogan Park pool building improvements 700,000$ Pool 2024 Pool Improvements 500,000$ Aquatic building 2024 Replace staff lockers 20,000$ Aquatic building 2024 Paint interior 20,000$ Aquatic Building 2024 Replace security lighting and exit lights 20,000$ North Fire Station 2024 Replace generator 25,000$ South Fire Station 2024 Replace Parking lot (concrete pad)60,000$ North Lions Park 2024 Replace West Parking lot asphalt 290,000$ 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov 2024 STATE LEGISLATIVE PRIORITIES (IN ALPHABETICAL ORDER) 1. Adult-Use Cannabis Legislation should be responsive to the needs of cities as they arise from the implementation of the adult-use cannabis industry, including providing adequate funding through the Local Government Cannabis Aid fund. The City supports efforts that would increase discretion and local authority. 2. Employment Issues a. Clarifying the Earned Sick and Safe Time law regarding applicability to paid on-call firefighters, public sector part-time EMS personnel, and other unique positions. b. The City supports preserving inherent managerial rights for public employers to make decisions regarding budget, personnel, and appropriate levels of public service. 3. Housing a. The City supports the housing funding passed in 2023 and seeks to ensure successful implementation of new programs. b. The City also seeks to advance policy that builds on the state-local partnership and allows broader authority for cities to address their locally- identified housing needs while ensuring that local decision-making authority on zoning and land use remains. 4. Local Government Aid (LGA) The City is thankful for the significant LGA changes passed into law in 2023 and supports allowing annual increases to LGA to keep pace with rising costs due to inflationary pressures on city budgets 5. Local Control The City opposes legislation that erodes local control in cities across Minnesota. 6. Local Sales Taxes The City supports a change in law to generally allow cities to enact a local sales tax for public improvements and capital replacement costs without requiring a special law authorization. 7. Public Safety Duty Disability The City supports ongoing state funding for measures related to injury prevention, treatment, and employer reimbursements. The City opposes efforts to expand conditions presumed to be work-related for workers’ compensation purposes. 8. Recycling The Legislature should review and modify the statutory definitions that consider organic food waste as a recyclable material and therefore subject to the statutory requirement for haulers to charge customers equally. 9. Sales Tax Exemption on Construction Materials The City supports legislation to streamline the process required for cities to secure the sales tax exemption on construction materials. 10. School Resource Officers (SROs) The City calls on the legislature and governor to work with stakeholders including law enforcement, local government, and education organizations to clarify laws pertaining to the authority SROs have in schools. Additional City Priority Topics: • Unfunded Mandates – The state should modify or repeal existing and refrain from imposing new unfunded mandates on the City. • Fire Service Funding – The City supports permanent and ongoing state funding to assist fire departments statewide to improve emergency response and work toward industry standards. • Fundraising Authority – The City supports amending Minn. Stat. § 471 to authorize cities to solicit charitable donations for the purpose of projects that have generated community interest such as parks, trails, and community centers or resources needed for city services. • Administrative Fines for Code Violations – The City supports the use of city administrative fines for local regulatory ordinances, such as building codes, zoning codes, health codes, public nuisance ordinances, and regulatory matters that are not duplicative of misdemeanor or higher-level state traffic and criminal offenses. The Legislature should clarify that both statutory and home rules charter cities have the authority to issue administrative citations for code violations. Further, state statute should allow statutory and home rule charter cities to adjudicate administrative citations and to assess a lien on properties for unpaid administrative fines. • Support for Municipal Energy Goals – The Legislature should assist cities, townships, and counties with tailored efforts to identify appropriate energy efficiency and renewable energy projects for undertaking at the local level. Additionally, the state should provide grants to support the development of local climate action and adaptation plans and tie those plans to funding made available to implement them. • Urban Forest Management Funding – The City supports funding from the general fund or other appropriate state funds for a state matching grant program to assist cities with building capacity for urban forest management and meeting the costs of preparing for, and responding to, catastrophic urban forest problems, including emerald ash borer. The state should establish an ongoing grant program with at least $15 million per year that is usable for those activities. • Election Issues – The Legislature should o support local governments with ongoing and sufficient funding through the Voting Operations, Technology, and Election Resources Account (VOTER) fund to provide cities with resources to conduct elections and meet the mandated requirements set forth in statute; o increase efficiency of administering absentee balloting before Election Day; and o ensure that local units of government are fully reimbursed for all anticipated and unanticipated costs of conducting the presidential nomination primary. o If partisan requirements cannot be met because of late staffing changes in the polling place, then cities should be allowed to meet party balance through an election judge who has not declared a party affiliation. • Development Disputes – The Legislature should amend Minn. Stat. § 462.361 to establish a 60-day time limitation in which an aggrieved person may bring an action against the municipality. • Development Authority Levy Limits – The Legislature should increase or repeal levy limits or increase the levying authority for EDA, HRA, and 91 port authority activities in Minn. Stat. ch. 469. • Tax Increment Financing – The Legislature should increase the ability of TIF to facilitate redevelopment and housing activities. • Comprehensive Plans and Environmental Review – The Legislature should clarify that cities’ comprehensive plans are exempt from review under the Minnesota Environmental Rights Act (MERA). • Authority to Create Public Infrastructure Utilities – The Legislature should authorize cities to create, as a local option, additional utilities such as a transportation or sidewalk utility, that ensure funding for the maintenance of these public amenities. • Adequate Funding for Transportation – More resources must be dedicated to all components of the state’s transportation system, and local units of government must have access to resources and funding tools to meet growing needs. o The City supports funding to assist cities burdened by cost participation responsibilities imposed by improvement projects on the state’s principal arterial system and on the county state aid highway (CSAH) system. o The City supports the establishment of a “Mainstreets Fund” to assist cities with non-transportation-related components of road and street projects such as utility upgrades and improvements that contribute to economic development. • Turnbacks of County and State Roads - Turnbacks should not occur without direct funding or transfer of a funding source. At a minimum, roads that are proposed to be turned back to a city government should be brought up to the standards of the receiving government, or that city should be compensated with a direct payment. • Funding for Non-Municipal State Aid City Streets – The City supports increased dedicated and sustainable state funding for non-MSA city streets • Railroads – The City opposes legislation and policies that disproportionately shift authority, costs, and/or liability away from railroad companies and onto other entities. The public sector should not incur the costs of improvements sought by the private sector, and cities should not be required to fund most of the cost of crossing repairs or improvements. • Continued Health Insurance for Duty Disabled Peace Officers and Firefighters – o The state must fully fund programs that pay for health insurance for police and fire employees injured in the line of duty and dependents of police and fire employees killed in the line of duty as originally required under Minn. Stat. § 299A.465. o The state must avoid further expansion of eligibility for benefits under Minn. Stat. § 299A.465 unless full funding for benefits is provided by the state. o Employees who receive a police and fire disability retirement benefit and accept another job that offers them group health benefits should be required to pay for their group health benefits with the city should they decide to continue them. • Workers’ Compensation – The City opposes the expansion of workers’ compensation and related health insurance benefits because of the potential for dramatically increasing costs • Public Safety Duty Disability – The City supports ongoing full state funding for: o Reimbursement to 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. o Initiatives and programs that provide peer support, emotional trauma training, early intervention, and mental health treatment. • Data Practices Compliance Costs o The City supports allowing political subdivisions to charge for the staff time that is required to comply with wide-ranging data requests. o The City supports providing a mechanism that would permit cities to challenge whether a data request is reasonable and made in good faith. • Updating the Minnesota Government Data Practices Act - The MGDPA should undergo a comprehensive review periodically to address technological changes, and the Legislature should update the law to address those changes. • Open Meeting Law – The Legislature should authorize cities greater flexibility to allow remote participation under the Open Meeting Law. • Sales Tax on Local Government Purchases - The exemption should apply to all purchases made by local units of government. • Tax Hearing and Notification Process - Cities should have the authority to increase the final levy from the preliminary levy with the approval of the commissioner of the Department of Revenue, to meet additional, unforeseen, and uncontrollable needs. For further information, contact Adam R. Bell, City Manager, at 763-531-1140, or Adam.Bell@crystalmn.gov CITY of CRYSTAL Legislative Priorities 2022 Legislative Priorities – 2022 1. Preservation of Local Government Aid Crystal receives signiﬁ cant Local Government Aid (LGA) due to its primarily modest-value single-income residential tax base. LGA helps defray the cost of providing basic municipal services to the city’s residents and businesses. The current LGA formula assumes that the needs of cities decrease as property values increase; however, due to the pandemic, revenues have declined. Furthermore, due to the shift in tax burden from commercial properties to residential properties, cities can’t possibly levy to the extent needed to make up for lost LGA. Crystal supports reviewing the LGA formula to ensure fairness, and that levels should be maintained for cities currently receiving LGA, rather than “punishing” them as the formula is adjusted. SUPPORT FOR... 2. Race Identiﬁ er on State IDs Current Minnesota IDs do not require race identiﬁ cation, and police ofﬁ cers must guess a person’s race during non-custodial arrests. In many situations, rather than guess, ofﬁ cers leave the information as unknown. This leads to inaccurate data at a time when police departments are working toward improving public contact tracking. Crystal supports adding race to state driver’s licenses and identiﬁ cation cards so that the information is automatically captured when the ID is scanned, allowing law enforcement to more accurately track public contacts. (LG res of res T n Cr en fo “ Proper ty Property TaxesTaxes State State Aid and Aid and CreditsCredits Local city councils are the most knowledgeable and directly accountable agency that establishes budgets and tax levies appropriate for their community’s needs. Crystal supports legislation allowing local councils to make responsible and appropriate budget and levy decisions without levy limits within the broad context of state and federal laws. 4. Local Financial Control Legislative Priorities – 2022 When making budget decisions, local elected ofﬁ cials seek input from the community about its priorities. Current state law (MS 275.60) does not provide authority for local ofﬁ cials to have an advisory ballot question regarding constituent interest for a levy dedicated for a speciﬁ c use – such a park or trail – but there is no intention of bonding for such uses. Crystal supports legislation authorizing advisory ballot questions regarding speciﬁ c levies not associated with the issuance of bonds. 5. Advisory Ballot Questions able ate out e 3. Public Safety Due to the dramatic increase in violent crime in Crystal and throughout the metro area, Crystal supports legislation requiring bail for violent offenders. CITY of CRYSTAL Legislative Priorities 2021 Legislative Priorities – 2021 Advisory Ballot Questions on Tax Levy Race Identiﬁ er on State ID’s When making budget decisions, elected ofﬁ cials seek input from the community to best represent In order for police ofﬁ cers to more accurately track all public contacts, race needs to be added to Minnesota Identiﬁ cation Card and Minnesota Driver’s License so that the information will automatically be captured as ID’s/Licenses are scanned. Ofﬁ cers have to make a guess based on their observation about the race of the person when contact is made on non-custodial arrests. In many situations, ofﬁ cers opt to leave that information as unknown rather than making a guess. This leads to confusion and lack of accurate data as police departments work towards greater tracking of public contacts. Crystal supports adding race to state ID’s so police ofﬁ cers can acccurately track public contacts. track all n ack of accurate data as SUPPORT FOR... constituent interest. Current state law (MS 275.60) does not provide authority for local ofﬁ cials to have an advisory ballot question regarding constituent interest/support for a levy dedicated for a speciﬁ c use such as parks or trails, but there is no intention of bonding for such uses. During the 2016 Legislative session, a bill (SF 1946/HF 2093) was introduced which authorized a ballot question regarding the imposition of a dedicated levy. Crystal supports adoption of legislation authorizing advisory ballot questions regarding speciﬁ c levies not associated with the issuance of bonds. The Legislature needs to allow local elected ofﬁ cials to establish budgets and tax levies appropriate for their communities’ needs; local city councils are the most directly accountable elected ofﬁ cials and best understand the needs of their communities. Crystal supports no levy limits and the Legislature allowing local agencies to manage their budgets responsibly and appropriately, within the broad context of state and federal laws. Group Homes or Institutional Housing providing Specialized Nursing Care and Health-Related Services (such as brain injuries or mental health) Registered or Licensed by the State of County: Minnesota Statutes 462.357, Subd. 7, provides that state-licensed residential facilities or housing- with-services establishments, registered under Chapter 144 D serving six or fewer persons, or a licensed day care facility serving 12 or fewer Budget and Levy Control Legislative Priorities – 2021 persons, is considered a permitted single-family residential property use. In most cases, group homes ﬁ t into single-family neighborhoods seamlessly. Similarly, there are some institutional residential facilities serving adults with various impairments – such as brain injuries or mental health issues – that are licensed or registered for programming by the state or Hennepin County. They are considered housing with services and are not inspected by the state. In cases where there have been excessive calls for service, there needs to be an inspection mechanism or procedure for residents and neighbors to request the licensure of such property be reviewed with public input. Crystal supports legislation that creates such a mechanism and process providing routine maintenance inspections of specialized care facilities. Due to its mostly modest single-family residential tax base, Crystal receives a signiﬁ cant allocation of Local Government Aid (LGA) annually to help defray the costs of providing basic services to residents. As the formula is currently written, cities’ needs have been determined to have decreased, due to increasing property values; however, due to the pandemic, cities’ revenues have declined and cities can’t possibly levy to the extent needed to make up for any reductions in LGA. Crystal supports reviewing the formula to ensure fairness but maintains that cities currently receiving LGA shouldn’t be “punished” by losing current aid as the formula is adjusted. Cities should continue to receive LGA at current levels. Review of Local Government Aid Formula id (LGA) annually to help defray ents. eds have increasing mic, cities’ bly levy to tions sure ceiving nt aid as the o receive LGA at 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov 2020 STATE LEGISLATIVE PRIORITIES 1. Local Government Aid Due to its mostly modest single-family residential tax base, Crystal receives a significant allocation of Local Government Aid (LGA) annually to help defray the costs of providing basic services to residents. In recent years the Legislature has been evaluating adjustments to the formula, for more equitable allocation of aid. If recent efforts to revise the formula had succeeded, many Minnesota cities would have received less LGA as part of “corrections” to the formula. Crystal supports reviewing the formula to ensure fairness but maintains that cities currently receiving LGA shouldn’t be “punished” by losing current aid as the formula is adjusted. Cities should continue to receive LGA at current levels. 2. Crystal Police Facility Project: Sales Tax Exemption: The Crystal City Council has approved funding for a new police facility on the City Hall campus. The total project is estimated to cost $16 million, including architectural, design and construction management. Of this $16 million, it is estimated that sales tax on the construction materials for this project will cost approximately $500,000. If these materials are exempt from the sales tax, that money can either go into the project or reduce the total cost of the project. The Crystal City Council supports the inclusion of this project in Statute 297A.71, Subd. 52, as exempt from sales tax, with other public facility construction projects. Support Governor Walz’ Bonding Bill: Governor Walz included $4 million in his 2020 bonding bill towards the total project costs of the new police facility. The Crystal City Council supports the Governor’s bonding recommendation. 3. Local Control: Budgets: The Legislature needs to allow local elected officials to establish budgets and tax levies appropriate for their communities’ needs; local city councils are the most directly accountable elected officials and best understand the needs of their communities. Crystal supports no levy limits and the Legislature allowing local agencies to manage their budgets responsibly and appropriately, within the broad context of state and federal laws. Group Homes or Institutional Housing providing Specialized Nursing Care and Health-Related Services (such as brain injuries or mental health) registered or licensed by the State of County: Minnesota Statutes 462.357, Subd. 7, provides that state licensed residential facilities or housing with services establishments registered under Chapter 144 D serving 6 or fewer persons, or a licensed day care facility serving 12 or fewer persons, is considered a permitted single family residential use of property. In most cases, group homes fit into single family neighborhoods seamlessly. Similarly, there are some institutional residential facilities serving adults with various impairments such as brain injury or mental health that are licensed or registered for programming by the State or Hennepin County and are considered housing with services. There are rare cases in which a particular group home or residential facility is not managed in the best interests of the adjacent neighborhood and in fact, the group home or residential facility is disruptive to the other families and properties in the neighborhood. In cases where there have excessive calls for service, there needs to be some sort of mechanism for residents and neighbors to request the licensure of such property be reviewed and public input provided. Crystal supports legislation creating such a mechanism and process provision. 4. Advisory Ballot Questions on Tax Levy Dedicated for Specific Purpose: When making budget decisions, elected officials seek input from the community to best represent constituent interest. Current state law (MS 275.60) does not provide authority for local officials to have an advisory ballot question regarding constituent interest/support for a levy dedicated for a specific use such as parks or trails but there is no intention of bonding for such uses. During the 2016 Legislative session, a bill (SF 1946/HF 2093) was introduced which authorized a ballot question regarding the imposition of a dedicated levy. Crystal supports adoption of legislation authorizing advisory ballot questions regarding specific levies not associated with the issuance of bonds. For further information, contact Anne Norris, City Manager, at 763-531-1140, or anne.norris@crystalmn.gov CITY MANAGER MONTHLY CHECK-IN – JANUARY 2024 Objective 1 - Strategic planning for continued implementation of Council priorities: • Thriving Business Community o Continuing to work through and advocate for city and community's interest with Blue Line Extension and anti-displacement efforts o Continuing to work with the New Hope Business Association (CBA 2.0) • Strong Neighborhoods o Park Commission conducted review of Master Parks System Plan o Continuing to work with businesses on THC sales compliance o Submitting council feedback to Hennepin County regarding HERC closure o Working with HRG to look into organized organic waste collection o Following the Council Work Session, working on the adoption of the Crystal Airport/MAC/JAZB ordinance amendments o Pursuing construction manager contract for the Crystal Cove Aquatic Center project • Sound fiscal policies and practices o Continuing to seek additional outside funding for projects o Submitted budget and year-end reports to the state o Implementing 2024 Capital Program • Welcoming and inclusive community o Inclusion & Diversity Commission – The Commission held a joint work session with the Council in December. The commission met with Recreation staff and JCCP Liaison in January. Will be working on 2024 Work Plan in February. Objective 2 - Work-Life Balance/Professional Development • Supporting staff wellness • Support staff’s continuing professional growth and development • Connecting with neighboring city managers on various local issues • Participate in metro and state professional organizations • Continuing participation in city manager leadership/peer group • Working with Consultant on 2024 City Manager Work/Development Plan Page 1 of 1 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov