Loading...
HomeMy WebLinkAbout06-03-2024 City Council Work Session Packet CITY COUNCIL WORK SESSION Mayor Amáda Márquez Simula Councilmembers Connie Buesgens Kt Jacobs Rachel James Justice Spriggs Interim City Manager Kevin Hansen City Hall—Shared Vision Room, 3989 Central Ave NE Monday, June 03, 2024 5:30 PM AGENDA ATTENDANCE INFORMATION FOR THE PUBLIC Members of the public who wish to attend may do so in-person, or by using Microsoft Teams Meeting at columbiaheightsmn.gov/joinameeting: ID 278 254 427 462, Passcode pfepBS . For questions, please contact Administration at 763-706-3610. Auxiliary aids or other accommodations for individuals with disabilities are available upon request when the request is made at least 72 hours in advance. Please contact Administration at 763 -706-3610 to make arrangements. CALL TO ORDER/ROLL CALL WORK SESSION ITEMS 1. Canvass Health Social Worker Program Update. (30 Minutes) 2. Discuss Option to Recycle Volume Cap from the City’s Conduit Revenue Bonds Previously Issued for the Reuter Walton Project. (20 Minutes) 3. Acquisition of Enterprise License & Permit Software: Tyler and Companion Digital Plan Review Software: DigEplan. (20 Minutes) 4. Update to 9.106 General Development Standards to Include Tree Preservation (Second Reading). (10 Minutes) 5. Residential Water Meter Replacement Program: Installation Bids. (20 Minutes) Move to authorize the Mayor and City Manager to enter into an agreement with Core and Main for the replacement of residential water meters and radios based on th eir proposal of May 17, 2024 at the cost of $750,000 for the installation of approximately 6,000 Sensus iPERL water meters and radios, including unit costs of $40.00/ea for furnishing and installing jumper wires; and $220/ea for freeze kits. 6. Council Corner. (10 Minutes) Updates from council regarding schedules, information sharing and priorities for continued education. Blue Zones Information from Councilmember Spriggs. 7. Old Business. ADJOURNMENT 1 City of Columbia Heights AGENDA June 03, 2024 City Council Work Session Page 2 Auxiliary aids or other accommodations for individuals with disabilities are available upon request when the request is made at least 72 hours in advance. Please contact Administration at 763-706-3610 to make arrangements. 2 ITEM: Social Worker Program Update. (Canvass Health) DEPARTMENT: Police Department BY/DATE: Chief Markham / May 30, 2024 CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below) X Healthy and Safe Community X Equitable, Diverse, Inclusive, and Friendly _Trusted and Engaged Leadership X Thriving and Vibrant Destination Community X Strong Infrastructure and Public Services _ Sustainable BACKGROUND: Canvass Health will give a presentation to Council regarding the status of the Social Worker Program. ATTACHMENT(S): None CITY COUNCIL WORK SESSION MEETING AGENDA SECTION WORK SESSION ITEM MEETING DATE JUNE 3, 2024 3 Item 1. ITEM: Discuss Option to Recycle Volume Cap from the City’s Conduit Revenue Bonds Previously Issued for the Reuter Walton Project. DEPARTMENT: Community Development BY/DATE: CD Director/Assistant CM/ May 31, 2024 CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below) _Healthy and Safe Community _Equitable, Diverse, Inclusive, and Friendly X Trusted and Engaged Leadership _Thriving and Vibrant Destination Community _Strong Infrastructure and Public Services _Sustainable BACKGROUND: In 2022, the City issued two conduit revenue bond series’ totaling $10,446,000 to provide the primary funding for the Reuter Walton affordable housing project located behind the City’s Public Safety camp us (the Col). These bond issuances were not an obligation of the City, rather they are debts to be paid back by the developer. The bonds in this case are temporary in nature and have a mandatory tender (repayment maturity date) of July 1, 2024. Due to the temporary nature of the bonds, they are eligible to be recycled (re-issued) as “volume cap” pursuant to Federal and State tax law. To this end, the City has been approached by a development team working on a 170-unit, $35M+ affordable housing project in the City of Burnsville. The project team includes the Dakota County Community Development Agency (DCCDA), the City of Burnsville, and Roers Companies (developer). This team has requested that the City participate by allowing the Reuter Walter bonds issued by the City to be recycled and used for the project in Burnsville. To accomplish this goal, the City will have to hold a public hearing to adopt a resolution that approves the new bond issuance using recycled volume cap available from the Reuter Walton project, and the City will also have to approve and execute a joint powers agreement with the DCCDA that spells out the details of the transaction. Following these steps, there is no more involvement by the City. All legal costs incurred by the City will be reimbursed by project funds and paid at the bond closing. The City is also expected to receive a .25% fee for participation in the deal. If the Council is amenable to participating, staff will hold the required public hearing for approval of the transaction at the June 24th Council meeting. For more detailed information on the mechanics of volume cap recycling, please refer to the attached memorandum provided by our bond counsel at Kennedy and Graven. STAFF RECOMMENDATION: Staff recommends that the Council direct staff to move forward with the transaction and take the steps necessary to approve the usage of recycled volume cap by entering into a joint power’s agreement with the DCCDA. There is a statewide shortage of affordable housing and the City’s participation in this transaction will help to facilitate construction of new housing in another community of need. Additionally, there are no projects in the pipeline for the City where this funding mechanism can be deployed in Columbia Heights. CITY COUNCIL WORK SESSION MEETING AGENDA SECTION WORK SESSION ITEM MEETING DATE JUNE 3, 2024 4 Item 2. City of Columbia Heights - Council Letter Page 2 Therefore, if the City does not participate in this deal, the bonds will not be recycled , thereby losing an opportunity to leverage the funds. RECOMMENDED MOTION(S): ATTACHMENT(S):  Memo from Kennedy and Graven (bond counsel) 5 Item 2. CL162-72-946715.v1 Fifth Street Towers 150 South Fifth Street, Suite 700 Marshall, MN 55402 (612) 337-9300 telephone (612) 337-9310 fax kennedy-graven.com Affirmative Action, Equal Opportunity Employer SOFIA E. LYKKE Attorney at Law Direct Dial: (612) 337-9283 Email: slykke@kennedy-graven.com April 18, 2024 VIA EMAIL Aaron Chirpich, Community Development Director/Assistant City Manager Community Development Department City of Columbia Heights 3989 Central Avenue NE Columbia Heights, MN 55421 achirpich@columbiaheightsmn.gov RE: Recycled Volume Cap from the City’s Conduit Revenue Bonds Previously Issued for the Reuter Walt on Project for Use by Dakota County Community Development Agency Dear Aaron: As we discussed, in order to better leverage public funding by recycling bonding authority (volume cap) as permitted by Section 146(i)(6) of the Internal Revenue Code of 1986, as amended (the “Code”), Colliers has inquired about potential sources of recycled volume cap for use by Dakota County Community Development Agency (“Dakota County CDA”) in issuing a portion of its multifamily housing revenue bonds (the “Dakota County CDA Bonds”) for a project in the City of Burnsville (the “Burnsville Project”). The City’s conduit revenue bonds issued for the Rueter Walton project, the Multifamily Housing Revenue Bonds (42nd & Central Apartments Project), Series 2022A, issued in the original aggregate principal amount of $9,886,000 on June 28, 2022 (the “Series A Bonds”), and the Multifamily Housing Revenue Bonds (42nd & Central Apartments Project), Series 2022B, issued in the original aggregate principal amount of $560,000 on December 28, 2022 (the “Series B Bonds”), are potential sources of recycled Volume Cap (as defined below). The Series A Bonds and the Series B Bonds (collectively, the “Columbia Heights Bonds”) are subject to mandatory tender on July 1, 2024. The Burnsville Project is being undertaken by Roers Companies or an affiliate thereof (the “Developer” or “Borrower”) and is comprised of an approximately 170-unit affordable housing project (using 4% low-income housing tax credits) located in the “Heart of the City” district in Burnsville at 151 & 201 Burnsville Parkway, Burnsville, Minnesota. All units will be restricted to 60% of AMI. The building will likely be 4 stories with 1 level below-grade structured parking and is in a TOD zoning district. The Burnsville Project was awarded $27.1 million in new Volume Cap from Dakota County CDA. The estimated amount of the permanent Fannie Maie (FNMA) mortgage loan for the Burnsville Project is $35 million (approximately $8 million more than the amount of the new Volume Cap allocated to this project). Colliers and the Developer have requested the participation of the City of Columbia Heights to allow for the recycling of Volume Cap from the Series A Bonds (and perhaps also the Series B Bonds). The Borrower anticipates closing of the Dakota CDA Bonds will occur in July. Below is a short summary of 6 Item 2. 2 the applicable federal tax rules and state law requirements that will need to be met in order for Dakota County CDA to issue a portion of its bonds using recycled Volume Cap from the Columbia Heights Bonds, as well as a summary of the mechanics of recycling Volume Cap. Federal Tax Law and State Law: Under Section 146 of the Code, any portion of the Dakota County CDA Bonds issued on a tax- exempt basis must receive an allocation of tax-exempt private activity bond volume cap (“Volume Cap”) of the State of Minnesota (the “State”)1 or, under certain conditions, may utilize recycled Volume Cap pursuant to Section 146(i)(6) of the Code. The Code permits the recycling or reuse of Volume Cap for affordable housing projects and treats the recycling as a refunding for tax purposes if: (i) the “refunding” occurs within 4 years after the original bonds were issued, (ii) the “refunding” bonds are issued within 6 months after the principal payment of the original bonds, and (iii) the “refunding” bonds mature within 34 years of the original issue date. In addition, Section 146(i)(6) of the Code requires approval of the Dakota County CDA Bonds in accordance with Section 147(f) of the Code before the issuance thereof, and under Section 147(f) an applicable elected representative of each governmental unit in which facilities to be financed and refinanced by the Dakota County CDA Bonds are located must approve the issuance of the Bonds following a public hearing. In connection with revenue bonds issued under Minnesota Statutes, Chapter 462C, as amended (the “Act”), Section 462C.14, Subd. 3 provides for joint action between cities, as defined in section 462C.02, subdivision 6 (which includes any statutory or home rule charter city and a county housing and redevelopment authority), pursuant to Minnesota Statutes, Section 471.59 et seq. (the “Joint Powers Act”). Under the Joint Powers Act, two or more governmental units, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised. Procedure for Recycling Volume Cap Pursuant to the Act, the Joint Powers Act, and Section 147(f) of the Code, in order to recycle Volume Cap from the Columbia Heights Bonds, the City will need to: (i) hold a public hearing on the issuance of the Dakota County CDA Bonds, and (ii) following such hearing, adopt a resolution consenting to, and approving the issuance of the Dakota County CDA Bonds, using in part, recycled Volume Cap from the Columbia Heights Bonds, pursuant to a joint powers agreement between the City and the Dakota County CDA (the “Joint Powers Agreement”), and approving the execution and delivery of the Joint Powers Agreement. Dakota County CDA will also need to hold a public hearing and adopt a resolution approving the issuance of the Dakota County CDA Bonds and the execution and delivery of the Joint Powers Agreement. Following the public approvals described in this paragraph, the City will have little to no more involvement in the Dakota County CDA Bonds transaction, with the exception of execution and delivery of the Joint Powers Agreement and delivery of a certified copy of the City resolution. All costs incurred by 1 Volume Cap is allocated by Minnesota Management and Budget (“MMB”), and MMB allocates a portion of the annual Volume Cap under federal tax law to certain pools established under Minnesota Statutes, Chapter 474A, as amended, including the housing pool and the unified pool, from which allocations for residential rental project bonds are made. MMB also allocates Volume Cap to the Minnesota Housing Finance Agency and “entitlement issuers,” which includes Dakota County CDA. 7 Item 2. 3 the City will be paid or otherwise reimbursed to the City by the Borrower, as will our fee as bond counsel to the City. The mechanics for recycling Volume Cap are somewhat complicated when the refunding of the bonds to be recycled and the issuance of the new bonds does not occur simultaneously. For your reference, a simplified summary of the mechanics of recycling Volume Cap under such a situation follows: 1. The Columbia Heights Bonds will be redeemed (likely on or about July 1, 2024, the mandatory tender date) with available funds of the Borrower (comprised of a taxable loan from the Dakota County CDA to the Borrower funded by proceeds of a conduit loan obtained by Dakota County CDA from a lender (the “Interim Loan Lender”) for the purpose of refunding the Columbia Heights Bonds (the “Interim Loan”). 2. We expect that the Borrower and Reuter Walton will enter into an agreement whereby Reuter Walton will redirect its funds intended for repayment of the loan funded by the proceeds of the Columbia Heights Bonds to the Interim Loan Lender, which Reuter Walton funds will cash collateralize the Interim Loan. 3. On the redemption date of the Columbia Heights Bonds, Dakota County CDA will draw a specified amount on the Interim Loan to redeem all or a portion of the Columbia Heights Bonds, and such Interim Loan proceeds will be deposited with the trustee for the Columbia Heights Bonds for application by the trustee to the redemption of the Columbia Heights Bonds. 4. Upon redemption of the Columbia Heights Bonds, the Volume Cap therefrom is carried by Dakota County CDA, and Dakota County CDA will reuse such Volume Cap to issue the portion of the Dakota County CDA Bonds exceeding the $27.1 million to be issued using the new Volume Cap. 5. Upon the issuance of the Dakota County CDA Bonds, a portion of the proceeds thereof will be used to repay the Interim Loan, and the cash collateral funds deposited with the Interim Lender will be transferred to the project fund for the Dakota County CDA Bonds, and thereby used by Dakota County CDA to provide a new loan to the Borrower in the aggregate principal amount of the Columbia Heights Bonds recycled. No Liability Finally, when issued, the Dakota County CDA Bonds will be special, limited obligations of Dakota County CDA, payable solely from revenues of the Borrower to the extent and in the manner provided in the documents to be executed in connection with the issuance of the Dakota County CDA Bonds, and will not be a general or moral obligation of Dakota County CDA, the City or any other political subdivision of the State. In no event will the Dakota County CDA Bonds ever be payable from or charged upon the general credit, taxing powers, or any funds of Dakota County CDA or the City, and neither the City nor Dakota County CDA are subject to any liability thereon. Following your review of this letter memorandum, please let me know if you have any questions and if you’d like to discuss further. KENNEDY & GRAVEN, CHARTERED Sofia E. Lykke 8 Item 2. ITEM: Acquisition of Enterprise License & Permit Software: Tyler and Companion Digital Plan Review Software: DigEplan DEPARTMENT: IT Department BY/DATE: Jesse Hauf / May, 28th, 2024 CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below) X_Healthy and Safe Community X_Equitable, Diverse, Inclusive, and Friendly X_Trusted and Engaged Leadership X_Thriving and Vibrant Destination Community X_Strong Infrastructure and Public Services _Sustainable BACKGROUND: The City of Columbia Heights currently uses Permit Works, software acquired in the 90s, for Permit and Business License management. This software is no longer supported and no longer meets the City’s needs. Rental licenses do not have a permanent long-term home. Property maintenance inspections use various programs and a complicated process involving exceptional staff interaction. Citizen request management is non-existent. Plan reviews are essential for safe commercial and residential buildings in our City. Plan review software can also be used for fire egress and suppression plans as well as engineering for right-of-way permits. Staff members currently use Adobe for small plans and marker and paper for large plans. Plan review software can provide a variety of tools to increase customer service and staff efficiency. There is currently no, or limited inter-departmental communication regarding parcels. Most requests require extensive staff time to review information stored in multiple locations. The result is the “left hand not knowing what the right is doing”. Customer service with regards to permits, licenses and plan review is limited. Customers want to be able to conduct their principal business online and have easy access to public information regarding parcels at their fingertips from their electronic devices. SUMMARY OF CURRENT STATUS: Because acquisition of this software involves multiple departments and areas of expertise, the IT Department took on the task of searching for the best software for the City that meets a balance of budget, staff and citizen needs. After reviewing several software company’s offerings, the IT Department along with staff input from Community Development, Fire and Engineering chose Tyler for Enterprise Permit & License management and Avolve DigEplan for digital plan review software. CITY COUNCIL WORK SESSION MEETING AGENDA SECTION WORK SESSION ITEM MEETING DATE 6/3/2024 9 Item 3. City of Columbia Heights - Council Letter Page 2 Enterprise Permit & License (EP&L) software provides an online portal for customers and City staff to apply for and manage building permits, CO, right-of-way, planning, zoning code enforcement and business licenses. EP&L is fully integrated with GIS for easily accessing parcel data, Laserfiche for document retention and payment methods such as Credit Card and ACH. Tyler EP&L saves a considerable amount of staff time by automatically guiding customers through the various permits and licenses. EP&L then routes requests to the appropriate staff ensuring permits and licensing flow smoothly through the administrative approval process. Follow up notifications are automated to customers and staff during definable points of the application process. Tyler EP&L provides Citizen Request management that allows Citizens to submit requests and concerns online that can be automatically routed to the appropriate staff members. Requests can be reviewed and followed up on by City administration to ensure a high level of City-wide customer service. Staff can track and identify hot spots in the City requiring attention and development. Avolve’s digital plan review software DigEplan empowers our Building Official, Inspectors, and Engineers with tools that greatly enhance their ability to safely review building and site plans. This allows them to effectively markup and communicate changes or improvements to customers all while maintaining compliance and auditing capability. Tyler’s software is completely customizable to our needs. The City has an on-staff GIS and Application Support Technician to support, improve and expand these software components in the long-term. The purchase of EP&L and Digital Plan Review software is inline with the Council adopted Strategic Technology Plan and the Sceins Study. STAFF RECOMMENDATION: Consider approving onboarding professional services and training from Tyler Technologies for EP&L software at $166,800 and Avolve DigEplan digital plan review companion software for $20,000. Consider entering into a 3-year contract with Tyler Technologies for EP&L software at $55,462/yr and a 3-year contract with Avolve for DigEplan digital plan review companion software for $17,600/yr +3% YoY . ATTACHMENT(S): None 10 Item 3. ITEM: Update to 9.106 General Development Standards to Include Tree Preservation (Second Reading) DEPARTMENT: Community Development BY/DATE: Andrew Boucher, City Planner May 30, 2024 CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below) X Healthy and Safe Community _Equitable, Diverse, Inclusive, and Friendly _Trusted and Engaged Leadership _Thriving and Vibrant Destination Community _Strong Infrastructure and Public Services X Sustainable BACKGROUND: At the April Work Session, City Council discussed a potential amendment to City Code 9.106 General Development Standards in relation to amending Landscape and Screening Requirements to include Tree Preservation and Planting Standards and directed the City Planner and Urban Forester to prepare a zoning text amendment for the May 7, 2024 Planning Commission meeting. Tree preservation ordinances were examined by peer-reviewing other cities such as Fridley, New Hope, Shakopee, St. Anthony’s Village, Maple Grove , and Minneapolis for key components. Fridley, St. Anthony’s Village, and Minneapolis do not have tree preservation ordinances. Additionally, staff have consulted with the League of Minnesota Cities and the City Forester for their guidance on what a model ordinance should include. The Planning Commission gave a positive recommendation (7-0) to draft Ordinance No. 1696, an Ordinance amending chapter 9.106 General Development Standards (M) of the City Code of 2005 to establish Tree Preservation and Planting Standards at the May 7, 2024 Planning Commission meeting. On May 13, 2024, the City Council approved the draft ordinance on first consideration with a 4-0 votes, and set the second reading for May 28, 2024. Staff received additional feedback after the First Reading of the ordinance on May 13, 2024 regarding the soil volume requirements that led to staff pulling the Second Reading of the ordinance from the May 28, 2024 City Council meeting so that clarifying information could be included in the draft ordinance. SUMMARY OF CHANGES: The following changes to the First Reading of Ordinance No. 1696 are as described in red: 1. (5) Standards for Newly Planted Trees and Replacement Trees is amended to include the following language; 6. All plant materials shall meet the minimum size standards listed in Table 1; all planting locations shall meet the soil volume requirements for the plant material listed in Table 2. Soil volume CITY COUNCIL WORK SESSION MEETING AGENDA SECTION WORK SESSION ITEM MEETING DATE JUNE 3, 2024 11 Item 4. City of Columbia Heights - Council Letter Page 2 requirements must be met by contiguous, uncompacted soil suitable for the plant type. Soil depth beyond 3 feet shall not be counted towards soil volume requirements. Landscaped areas should be of adequate size to allow proper plant growth, protect plantings from both pedestrian and vehicular traffic, and provide adequate area for plant maintenance. Definitions and rules for calculating soil volume provided in Appendix B. All exceptions to soil volume requirements must be approved by the City Forester in writing. 2. The minimum soil volume requirements in Table 2 are amended as follows: Expected Tree Size at Maturity Minimum Soil Volume Requirement (ft3) Small trees: 10-25 ft crown spread, 8-12” mature DBH 300 Medium trees: 25-35 ft crown spread, 12-18” mature DBH 700 Large trees: 35+ ft crown spread, 18”+ mature DBH 1100 3. Appendix B has the following definitions and standards amended to include revised language and reads as: Covered soil. All covered soil used in cell-type systems or suspended pavement systems shall be loam. Shared soil. Trees in shared soil spaces received a 30% credit towards total soil volume requirements. The following standards and exceptions apply to calculating soil volumes: 3) Trees in shared soil spaces receive a 30% credit towards total soil volume requirements. STAFF RECOMMENDATION: Staff recommends including the minor amendment regarding soil volumes in the Second Reading of the revised draft Ordinance No. 1696 for the June 10, 2024 City Council meeting, Monday at 6 pm located in the City Council Chambers of City Hall addressed 3989 Central Avenue NE, Columbia Heights, MN 55421. ATTACHMENT(S): First Reading of Draft Ordinance No. 1696 Revised Second Reading of Draft Ordinance No. 1696 Summary 12 Item 4. Ordinance No.1696 ORDINANCE NO. 1696 AN ORDINANCE AMENDING CHAPTER 9.106 OF THE CITY CODE OF 2005 TO AMEND GENERAL DEVELOPMENT STANDARDS AND INCLUDE TREE PRESERVATION AND PLANTING STANDARDS FOR LANDSCAPING AND SCREENING The City of Columbia Heights does ordain: Section 1 The definition of the term “Tree Preservation and Planting Standards for Landscaping and Screening,” as provided in Section 9.106 of the City Code of 2005, is hereby established to read as follows: (M) Tree Preservation and Planting Standards for Landscaping and Screening. (1) Purpose. The City of Columbia Heights recognizes the great value trees, landscaping, and screening provide to all residents of the City. A healthy, resilient, and robust urban forest enhances the aesthetic, environmental, and economic well-being of the City. Tree preservation and planting standards, landscaping and screening requirements are established to buffer non-compatible land uses, screen unsightly views, reduce noise and glare, minimize storm water runoff, and generally enhance the quality and appearance of development within the community. a. Preserve and increase the tree canopy cover of Columbia Heights by protecting mature trees throughout the City. b. Protect and enhance property values by conserving trees. c. Improve quality of life for all stakeholders, including residents, visitors, and wildlife. d. Preserve and increase the environmental services provided by the urban forest including sequestration of CO2, erosion and stormwater mitigation, reduction of air pollutants, reduction of the urban heat island effect, and reduction of noise pollution. e. Protect and maintain healthy trees in the development and building permit process. Protect and maintain healthy trees by ensuring best tree protection practices during construction and development. (2) Preservation, protection, and replacement of Protected Trees: a. This ordinance applies to all demolition, building permit applications, and land alteration permits, public or private, that require a survey. b. Definitions: i. Protected Tree: Any tree variety on the List of Protected Tree Varieties as maintained and published by City staff with a diameter of 6” or greater as measured at 4.5’ above ground (DBH, Diameter at Breast Height). The List of Protected Tree Varieties may be amended from time to time. ii. Removable Tree: Any tree not defined as a Protected Tree. iii. City-Owned Tree: Any tree originating within the City right-of-way or originating from a City park or City-owned property. c. Demolition and building permit applications must include a construction tree inventory plan indicating the location, species, and diameter of the trunk at 4.5’ above the ground (DBH) for all Protected Trees on the property and City-Owned Trees on or adjacent to the construction site. The plan must also indicate any Protected Trees that are proposed to be removed, as well as their replacement tree(s) location, species, and size. 13 Item 4. City of Columbia Heights - Ordinance Page 2 Applications must also include a tree protection plan describing in detail how Protected Trees and City-Owned Trees will be preserved and protected during construction. The tree protection plan shall follow the standards as presented in the most recent version of the following publications: i. ANSI A300 Part 5- Management of Trees and Shrubs During Site Planning, Site Development, and Construction ii. ISA Best Management Practices- Managing Trees During Construction d. The construction tree inventory plan and tree protection plan must be reviewed and approved by the City Forester. Approved tree protection measures shall be fully installed and inspected by City staff prior to commencement of any construction activities or vehicular traffic on site. e. During the demolition and building process, the permit holder shall not leave any Protected Tree or adjacent City-owned tree without sufficient guards and protections to prevent injury to the protected tree during construction. Tree protection shall follow the standards as presented in the publications listed above (3.b.). City Forestry Staff monitoring is required for all projects with affected Protected Trees and/or replacement trees. Replacement trees will be monitored for three (3) years to ensure proper establishment. f. Protected Tree varieties that are less than 6” in caliper must be moved to another location on the property if possible. Exceptions must be granted in writing by the City Forester. g. If a Protected Tree is removed, except as allowed for in paragraph 5 below, it is subject to a size-based replacement policy. i. Protected trees with DBH 6”-15” are subject to a 2:1, “two for one” replacement requirement. ii. Protected trees with DBH 15”-20” are subject to a 3:1, “three for one” replacement requirement. iii. Protected trees with DBH 20”-25” are subject to a 4:1, “four for one” replacement requirement. iv. Protected trees with DBH >25” are subject to a 5:1, “five for one” replacement requirement. v. Replacement trees must be varied by species and are subject to approval by the City Forester. vi. Replacement trees are subject to the size and diversity requirements as outlined below. vii. A payment of $400 for each tree may be made to the City in lieu of planting replacement trees where sufficient space does not exist on the property. Payments will support the planting of replacement trees by City staff on City property. viii. Replacement trees shall be planted according to the standards set forth in the MN Department of Natural Resources publication “A Pocket Guide to Planting Trees”. All replacement trees are subject to inspection by City staff for a period of 2 years beginning the day of planting. Any trees determined to be unhealthy or poorly established during this period shall be subject to replacement. (3) Removal of Protected and Removable Trees: a. Protected Trees may be removed in the following areas: 14 Item 4. City of Columbia Heights - Ordinance Page 3 i. Within the footprint of the building pad of a new or remodeled building, or within a 10’ radius of the footprint. ii. Within driveways and parking areas meeting all other City ordinance requirements. b. Protected Trees removed in accordance with sections (i.) and (ii.) above are required to be replaced at a rate of 1:1, “one for one.” Replacement trees are subject to all requirements listed in paragraph (3.) above. c. Removable Trees may be removed for any development or building permit without replacement. d. If Protected Trees are dead, diseased, or hazardous their removal must be approved in writing by the City Forester before removal. Dead, diseased, or hazardous trees are not subject to replacement requirements. (4) Exemptions from Tree Preservation Ordinance: Tree removal on property with an existing building or structure that is not being modified is exempt from this ordinance. (5) Standards for Newly Planted Trees and Replacement Trees a. Landscaping and screening. i. Landscape plan required. A landscape plan is required for all new commercial, industrial, institutional, and multi-family development. For development having an anticipated construction value in excess of $750,000, the landscape plan must be prepared by a landscape architect registered in the State of Minnesota. Said landscape plan shall include the location, size, quantity, and species of all existing and proposed plant materials. ii. Design considerations. The following design concepts and requirements should be considered when developing a landscape plan for submittal to the city: 1. To the maximum extent possible, the landscape plan shall incorporate existing vegetative features on the site. 2. The overall composition and location of landscaped areas should complement the scale of the development and its surroundings. 3. The use of native species is preferred in all landscaping choices, and a minimum of 80% of all plants used shall be native to MN. 4. The City of Columbia Heights is committed to enhancing the diversity and resiliency of its urban forest. A variety of trees and shrubs shall be used to provide visual interest year-round and meet diversity requirements. No more than 25% of the required number of trees or shrubs may be comprised of any one species or genus. No less than 50% of the required number of trees shall be over-story deciduous trees and no less than 10% shall be coniferous. New trees and replacement trees shall be planted according to the standards set forth in the MN Department of Natural Resources publication “A Pocket Guide to Planting Trees”. All replacement trees are subject to inspection by City staff for a period of 3 years beginning the day of planting. Any trees determined to be unhealthy or poorly established during this period shall be subject to replacement. 5. Final slopes greater than 3:1 will not be permitted without special treatment such as terracing, retaining walls or special ground covers. 15 Item 4. City of Columbia Heights - Ordinance Page 4 6. All plant materials shall meet the minimum size standards listed in Table 1; all planting locations shall meet the soil volume requirements for the plant material listed in Table 2. Soil volume requirements must be met by contiguous, uncompacted soil suitable for the plant type. Soil depth beyond 3 feet shall not be counted towards soil volume requirements. Landscaped areas should be of adequate size to allow proper plant growth, protect plantings from both pedestrian and vehicular traffic, and provide adequate area for plant maintenance. Definitions and rules for calculating soil volume provided in Appendix B. All exceptions to soil volume requirements must be approved by the City Forester in writing. Table 1: Plant Size Requirements Table 2: Soil Volume Requirements Expected Tree Size at Maturity Minimum Soil Volume Requirement (ft3) Small trees: 10-25 ft crown spread, 8-12” mature DBH 300 Medium trees: 25-35 ft crown spread, 12-18” mature DBH 700 Large trees: 35+ ft crown spread, 18”+ mature DBH 1100 Appendix A: List of Protected Tree Varieties Plant Type Minimum Size at Planting Trees Evergreen-over-story 6 feet in height Evergreen—ornamental 6 feet in height Deciduous–over-story 2.5 inches diameter, measured 2 feet from base Deciduous–ornamental 2 inches diameter, measured 2 feet from base Shrubs Evergreen 2 feet in height Deciduous 2 feet in height Screening shrubs–either 3 feet in height 16 Item 4. City of Columbia Heights - Ordinance Page 5 Common Name Botanical Name Birch Betula spp. Buckeye, Ohio Aesculus glabra Catalpa, Northern Catalpa speciosa Cedar, Eastern Red Juniperus virginiana Cedar, Northern White Thuja occidentalis Elm (except Siberian/Asian elms) Ulmus spp. (Except U. pumila) Fir, White Abies concolor Hackberry Celtis occidentalis Hemlock, Eastern Tsuga canadensis Hickory Carya spp. Honey locust Gleditsia triacanthos Ironwood Ostrya virginiana Kentucky coffee Gymnocladus dioica Linden Tilia spp. Maple, Black Acer nigrum Maple, Red Acer rubrum Maple, Sugar Acer saccharum Mountain ash Sorbus spp. Oak Quercus spp. Pine, Red Pinus resinosa Pine, White Pinus strobus Spruce, Norway Picea abies Spruce, White Picea glauca Walnut, Black Juglans nigra Appendix B: Definitions and Rules for Calculating Soil Volume The following definitions apply to soil media for newly planted trees in the City of Columbia Heights: Open soil. Exclusively refers to either uncompacted native soils (no greater than 80% Proctor), or amended soils meeting the Minnesota Department of Transportation standards for approved loam topsoil, that are not covered by hardscape or paved surfaces. Available open soil. The uncovered length by width of a planting bed, multiplied by depth of preparation up to 36 inches deep. Most unprepared urban subgrade is highly compacted and does not qualify as available. Covered soil. Soil volume provided below hardscape or paved surfaces in the form of suspended soil cells or structural soil. Only 25% of the volume of structural soils may be counted towards soil volume requirements. All covered soil used in cell-type systems or suspended pavement systems shall be loam. 17 Item 4. City of Columbia Heights - Ordinance Page 6 Shared soil. Soil media shared by more than one tree in a planting bed sharing open soil, or an individual tree in a planting bed that is connected to other open soils via Soil Cells or Structural Soil. Areas of shared soil must have a continuous root path that does not restrict to less than 4 feet wide or 2 feet deep. Trees in shared soil spaces receive a 30% credit towards total soil volume requirements. Isolated soil. Soil media in a tree well or small enclosed planting bed that is not connected to other prepared soil volumes and is totally isolated by hardscape such as driveways, sidewalks, or vaults. Connected soil. Two or more areas of open soil that are connected below hardscape with either soil cells or structural soil. These connected beds can now qualify as shared soil. The following standards and exceptions apply to calculating soil volumes: 1) The total soil volume provided for a tree shall be calculated in cubic feet by adding the available open soil volume to the available covered soil volume within a 50-foot radius of the tree. 2) When total soil volume consists of more than one planter bed or open soil area, those areas must be connected by continuous root paths at least 4 feet wide and 2 feet deep. 3) Soil volumes for covered soil shall be calculated by using only the space available to roots and may not include the components providing structure. 90% of the volume of cell -type hardscape suspension systems may be counted towards total soil volume; 25% of the volume of structural soils may be counted towards total soil volume. A maximum depth of 36” may be used when calculating total soil volume; depths beyond 36” may not be counted towards soil volume requirements. Trees in shared soil spaces receive a 30% credit towards total soil volume requirements. (6) Landscaping requirements. Landscaping shall be provided in accordance with the following requirements: a. All required setbacks shall be landscaped with turf grass, native grasses, trees, shrubs, vines, perennial flowering plants, or other pervious ground cover. b. A minimum of one tree shall be planted for every 50 feet of street frontage or fraction thereof. The trees shall be planted within the front yard and may be arranged in a cluster or placed at regular intervals to best complement existing landscape design patterns in the area. c. A minimum of four trees shall be planted for every one acre of lot area covered by buildings, parking areas, loading areas, exterior storage areas and other impervious surfaces. d. Parking areas shall have a minimum of 100 square feet of landscape area and one over- story tree for each 20 spaces or, fraction thereof. The remainder of the landscape area shall be covered with turf grass, native grasses, trees, shrubs, vines, perennial flowering plants, or other pervious ground cover. (7) Screening requirements. Screening shall be provided in accordance with the following requirements: 18 Item 4. City of Columbia Heights - Ordinance Page 7 a. All off-street parking areas containing six or more parking spaces and located adjacent to a residential or residentially zoned property, the parking area shall be screened along the boundary with the residential use. Where any commercial or industrial use is located adjacent to or across a public alley from a residential or a residentially zoned property, the commercial or industrial use shall be screened along the boundary with the residential use. b. Exterior storage of materials or equipment, except for allowed retail sales and temporary placement of equipment, shall be screened from all adjacent non- industrial uses and from the public right-of-way. c. Required screening shall consist of a fence, wall, earthen berming and/or vegetation no less than six feet in height and no less than 80% opaque on a year round basis. Said screening shall be located as close to the property line as practicable and no closer than 15 feet from the edge of a public right-of-way. (8) Installation and maintenance. The following regulations shall govern the installation and maintenance of landscaping and screening materials. a. All landscaping materials and screening materials shall be installed in conjunction with site development and prior to issuance of a final certificate of occupancy. b. A letter of credit or other security as acceptable to the city shall be deposited with the Zoning Administrator, in an amount equal to 100% of the estimated cost of landscaping and/or screening. The letter of credit or other security as acceptable to the city, or portions thereof, shall be forfeited to maintain and/or replace materials for a period of time to include at least two growing seasons. A portion of the letter of credit or other security as acceptable to the city may be released after one growing season as determined by the Zoning Administrator.The property owner shall be responsible for continued maintenance of landscaping and screening materials to remain in compliance with the requirements of this section. Plant materials that show signs of disease or damage shall be promptly removed and replaced within the next planting season. c. The property owner shall be responsible for continued maintenance of landscaping and screening materials to remain in compliance with the requirements of this section. Plant materials that show signs of disease or damage shall be promptly removed and replaced within the next planting season. (9) Screening of parking areas from adjacent properties. All parking and loading areas (including drive-through facilities, pump island service areas and stacking spaces) abutting a public street or sidewalk shall provide: a. A landscaped frontage strip at least five feet wide along the public street or sidewalk. If a parking area contains over 100 spaces, the minimum required landscaped frontage strip shall be increased to eight feet in width. b. Screening consisting of either a masonry wall, fence, berm or hedge or combination that forms a screen a minimum of three feet in height, a maximum of four and one half feet in height, and not less than 50% opaque on a year -round basis. For reasons of personal safety and security, parking lot screening should allow clear visibility of pedestrians above the three-foot high viewing range. c. Trees shall be planted at regular intervals of no greater than 50 feet within the frontage strip. 19 Item 4. City of Columbia Heights - Ordinance Page 8 Section 2 This Ordinance shall be in full force and effect from and after 30 days after its passage. First Reading: Offered by: Seconded by: Roll Call: Second Reading: Offered by: Seconded by: Roll Call: Date of Passage: Amáda Márquez Simula, Mayor Attest: Sara Ion, City Clerk/Council Secretary 20 Item 4. Ordinance No.1696 SUMMARY OF ORDINANCE NO. 1696 BEING AN ORDINANCE AMENDING CHAPTER 9.106 OF THE CITY CODE OF 2005 TO AMEND GENERAL DEVELOPMENT STANDARDS AND INCLUDE TREE PRESERVATION AND PLANTING STANDARDS FOR LANDSCAPING AND SCREENING The City Council for the City of Columbia Heights, Minnesota adopted Ordinance No. 16 96 on May 28, 2024. The purpose of this ordinance is to establish, upon passage, tree preservation and planting standards for landscaping and screening. The ordinance amends Chapter 9 of Columbia Heights City Code creating tree preservation and planning standards while establishing industry standards and agency best practices to preserve trees during the construction process, ensure that trees are healthy and grow to maturity, and include the Urban Forester on development review to protect trees during construction. The ordinance establishes definitions for protected, removable, and city-owned trees and adopts the most recent standards of the ANSI A300 Part 5, ISA Best Management Practices, and MN DNR “Pocket Guide to Planting Trees”. These include protect tree varieties, soil volumes, definitions and calculations for soil volumes. Tree replacement is determined through a size-based replacement policy which is then reviewed by the Urban Forester to make an individualized determination after applying the policy and assessing the site. The ordinance includes revisions to the letter of credit or other financial security language to reflect the estimated cost of the landscaping plan. This is a summary of Ordinance No. 1696. A copy of the entire text of the Ordinance is available for public inspection during regular office hours at City Hall, by standard or electronic mail, or at www.columbiaheightsmn.gov Amáda Márquez Simula, Mayor Attest: Sara Ion, City Clerk/Council Secretary 21 Item 4. ITEM: Residential Water Meter Replacement Program: Installation Bids DEPARTMENT: Public Works BY/DATE: Ben Lund / David Cullen: 5/30/2024 CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below) _Healthy and Safe Community _Equitable, Diverse, Inclusive, and Friendly _Trusted and Engaged Leadership _Thriving and Vibrant Destination Community X Strong Infrastructure and Public Services X Sustainable BACKGROUND: The City Council approved the Water Meter Replacement Equipment Purchase at their meeting on May 22, 2023. The purchase included 6,000 Sensus iPERL residential water meters with new radios from Core and Main. The City has recently taken delivery of a portion of this equipment and we are expecting to receive the remaining equipment in the next several weeks. City staff requested proposals from Core and Main and Vanguard Utility Service to install this equipment . In addition to installing the equipment, the installer would be required to perform cross connection control inspections, inflow & infiltration inspections and identify the service line material type at each meter installation location. Vanguard Utility Service declined to submit a proposal due to not having certified personnel to complete the cross-connection control inspections. Core and Main’s attached proposal was a joint proposal that includes their own team as project managers and the company HydroCorp as the installers/inspectors. Core and Main is responsible for over 1,900 successful AMR/AMI projects across the United States and is currently working on the similar projects for the cities of Eden Prairie and Big Lake. HydroCorp employs full-time professionals assigned to water meter replacement projects to ensure that work is performed accurately and efficiently. HydroCorp staff have the necessary certifications to conduct the required inspections and the experience to seamlessly integrate this new technology. The cost for the installation of new iPERL water meters and managing the project was $750,000. There will also be additional costs depending on the site conditions at each property. Core and Main provided unit pricing for the following items: Electrical jumper wire installation (for grounding): $40 per installation and freeze kits (where valves are not working or available): $220 per use. It will be determined at the time of the meter installation if a jumper wire or a freeze kit will be required, as a result it is unknown how many of each of these will be required. STAFF RECOMMENDATION: Staff Recommends accepting the proposal from Core and Main. Contracting the equipment provider to also serve as the project manager will result in a streamlined process. In addition, the proposal of $750,000 is well CITY COUNCIL WORK SESSION MEETING AGENDA SECTION WORK SESSION ITEM MEETING DATE 6/03/2024 22 Item 5. City of Columbia Heights - Council Letter Page 2 under staff’s original cost estimate of $1,000,000. RECOMMENDED MOTION(S): Move to authorize the Mayor and City Manager to enter into an agreement with Core and Ma in for the replacement of residential water meters and radios based on their proposal of May 17, 2024 at the cost of $750,000 for the installation of approximately 6,000 Sensus iPERL water meters and radios, including unit costs of $40.00/ea for furnishing and installing jumper wires; and $220/ea for freeze kits. ATTACHMENT(S): Core and Main: Residential Water Meter Replacement Project Proposal 23 Item 5. RESPONSE TO REQUEST FOR PROPOSAL FOR CITY OF COLUMBIA HEIGHTS Residential Water Meter Replacement Project SUBMISSION DEADLINE: Date: May 17, 2024 Time: 3 PM SUBMITTED TO: City of Columbia Public Works Attn: Public Works Director 637 39th Ave NE Columbia Heights, MN 55421 DCullen@columbiaheightsmn.gov PRIMARY CORE & MAIN CONTACT: Kirk Peterson Sr. Municipal Advisor Kirk.Peterson@coreandmain.com (612) 202-7786 PRIMARY VENDOR CONTACT: Craig Wolf New CCC Development and Water Meter Replacement Sales – Wisconsin and Minnesota CWolf@hydrocorpinc.com (612) 850-8939 Core & Main – Eden Prairie 15800 W 79th St Eden Prairie, MN, 55344 coreandmain.com 24 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 2 of 48 May 17, 2024 Attn: Public Works Director 637 39th Ave NE Columbia Heights, MN 55421 Cover Letter Core & Main LP (“Core & Main”) is pleased to present the following response to Columbia Heights Request for Proposal for a Water Meter Replacement Project. Core & Main is supplying the product for this project, and we are excited for the opportunity to provide Columbia Heights with a turnkey meter replacement project. Throughout the proposal, we believe Columbia Heights will see that Core & Main fully understands their goals to facilitate improved water usage tracking customer service, and system management in this program. We understand the work includes not only the mechanical replacement of meters, but also the provision of all necessary gaskets, fittings, and wiring materials. We understand that we will be responsible for the customer communications related to this project and are excited for the opportunity to work with the City of Columbia Heights on this implementation project. KEY BENEFITS OF OUR PROPOSAL INCLUDE: Solution built right for Columbia Heights: Core & Main sees the value in building the best team for our customers and we have included best in class partner to be part of our solution for Columbia Heights. o HydroCorp Founded in 1983 and incorporated in 1988. HydroCorp core services are Municipal Water System Cross-Connection Control Program Management, Onsite Cross-Connection Hazard Surveys/Inspections and Water Meter Replacement Labor and Administrative Services. The firm has grown from two employees to a staff of over 85 full time associates in multiple states. We still have our first customer! 25 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 3 of 48 Kirk Peterson, Sr. Muncipal Advisor, will be the primary contact throughout the proposal evaluation and next steps: CORE & MAIN CONTACT: Kirk Peterson Sr. Municipal Advisor Kirk.Peterson@coreandmain.com (612) 202-7786 PRIMARY VENDOR CONTACT: Craig Wolf New CCC Development and Water Meter Replacement Sales – Wisconsin and Minnesota CWolf@hydrocorpinc.com (612) 850-8939 We look forward to providing Columbia Heights with a high-performance system and the opportunity to grow our relationship with a turnkey water meter replacement project. Best regards, Paul Thom Regional Director – North Region Core & Main – Eden Prairie 15800 W 79th St Eden Prairie, MN, 55344 26 Item 5. 4 Table of Contents Cover Letter .................................................................................. 2 KEY BENEFITS OF OUR PROPOSAL INCLUDE:........................................................ 2 Proposer Company Overview ....................................................... 5 ORGANIZATIONAL STRUCTURE AND CREW CONFIGURATION ............................. 5 EXPERIENCE WITH BS&A FINANCIAL SOFTWARE .................................................. 6 PROJECT MANAGER QUALIFICATIONS .................................................................... 6 FOREMAN/SUPERVISOR QUALIFICATIONS .............................................................. 8 INSTALLER/INSPECTOR QUALIFICATIONS ............................................................... 8 CONCURRENT PROJECTS .......................................................................................... 9 EXPERIENCE AND QUALIFICATIONS ......................................................................... 9 DOCUMENTATION PROCESS .................................................................................... 19 GIS LOCATION AND PHOTOGRAPHS....................................................................... 20 CROSS-CONNECTION SURVEY DOCUMENTATION ................................................ 20 PROPOSED PROJECT SCHEDULE ........................................................................... 21 Additional Information ................................................................. 22 Memorandum of Insurance ......................................................... 26 Certificate of Authority ................................................................. 28 Core & Main Master Services Agreement ................................... 29 Pricing .......................................................................... 18 27 Item 5. 5 Proposer Company Overview ORGANIZATIONAL STRUCTURE AND CREW CONFIGURATION As the prime contractor, Core & Main will take responsibility for our subcontractors and remain the key point of contact throughout the duration of the project. CORE & MAIN Core & Main LP was established in 2004 and built on the foundation of 80+ legacy companies, including HD Supply Waterworks, Hughes Supply, and National Waterworks. Our products are integral to building, repairing, and maintaining water and wastewater systems. They serve as part of the basic municipal infrastructure required to support population and economic growth, including residential and commercial construction. C&M holds a leading market position in the United States for water, sewer, storm drain, and fire protection products. HYDROCORP Founded in 1983 and incorporated in 1988. HydroCorp core services are Municipal Water System Cross-Connection Control Program Management, Onsite Cross-Connection Hazard Surveys/Inspections and Water Meter Replacement Labor and Administrative Services. The firm has grown from two employees to a staff of over 85 full time associates in multiple states. We still have our first customer! Core & Main Kirk Peterson Project Manager HydroCorp Dave Cardinal VP Municipal Division Scott Mitchell Director of Ops/Project CC Control Supervisor Ryan Schaeffer Director, Meter Division, and Meter Project Director/Foreman Ryan Hensley Administrative Account Manager Craig Wolf New CCC Development and Water Meter Replacement Sales 28 Item 5. 6 EXPERIENCE WITH BS&A FINANCIAL SOFTWARE HydroCorp will work with BS&A, as we have in the past to generate a weekly import file to assist in the seamless integration of data needed. This will be generated and tested before project kickoff. 29 Item 5. 7 PROJECT MANAGER QUALIFICATIONS Kirk Peterson will act as the Project Manager for this project, and his resume is included below. His biography is included in the “Capacity” section of our response. 30 Item 5. 8 FOREMAN/SUPERVISOR QUALIFICATIONS RYAN SCHAEFFER-DIRECTOR, METER DIVISION, AND METER PROJECT DIRECTOR/FOREMAN Ryan is a seasoned water professional; he began his career with HydroCorp as a meter installer and has installed thousands of meters of various sizes. He has worked diligently and proven his skills as an installer and a team leader. Ryan has successfully led and managed meter installation projects and installation teams. Ryan’s duty as Project Manager is to keep a consistent communication stream between all parties, including field staff, clients, and upper management. Furthermore, he partners with the Director of the Meter Division on preparation, logistics, and resource allocation to ensure the efficient completion of current projects and a seamless transition into the new metering system. INSTALLER/INSPECTOR QUALIFICATIONS In 2014, HydroCorp was requested by an existing Municipal Client to assist in replacement of water meters during the same site visit as the Cross-Connection Inspections being performed by HydroCorp. Over time and by additional client requests for meter replacement services, HydroCorp now employs over 25 full-time professionals assigned to Water Meter Replacement projects and water customer care communications. All HydroCorp staff are full time employees, and have completed HydroCorp training and background checks upon their hire date. All employees will be fully uniformed and possess HydroCorp ID cards on their person. HydroCorp highly recommends the Utility issue contractor badges to HydroCorp employees, listing HydroCorp and installer name as an approved contractor for the City meter installation project. This also helps to mitigate and alleviate customer skepticism and phone calls to the City. HydroCorp will provide a link on the appointment site describing its COVID-19 preparedness and response plan, its Personal Protective Equipment (PPE) policy, and description of a Coronavirus safety practices while performing a water meter replacement. Example plan: www.hydrocorpinc.com/covid-19 HydroCorp’s standard practice is to pick up and return new and old meters and materials daily. This is always from a designated location provided by various entities. All material is then logged and identified with our check-in / check-out process. This ensures project material is present while identifying items for procurement. 31 Item 5. 9 CONCURRENT PROJECTS Core & Main is responsible for over 1,900 successful AMR/AMI projects across the United States, and in addition to our local sales team, encompasses a National Metering team focused on selling, managing, and supporting metering projects. We are currently working on the following projects in the state of Minnesota: Eden Prairie Big Lake EXPERIENCE AND QUALIFICATIONS MUNICIPAL INSTALLATION EXPERIENCE Monona, WI from 1.1.21 – 7.31.21 installation of 2,700 Badger water meters and the scope of work included onsite Cross Connection Control surveys during meter replacement. o Contact- Dan Stephany DPW Director dstephany@ci.monona.wi.us 608-222-2525 Prescott, WI from 3.1.16-12.30.16 installation of 1,750 Kamstrup water meters and the scope of work included Cross Connection Control surveys during meter replacement. o Contact- Jayne Brand City Administrator jbrand@prescottcity.org 715-262-5544 Chetek, WI from 3.1.17-12.30.17 installation of 1,126 Kamstrup water meters and the scope of work included Cross Connection Control surveys during meter replacement. o Contact- Dan Knapp Director of Public Works dknapp@cityofchetek-wi.gov 715-924- 4236 Weston, WI from 11.1.17-6.30.18 installation of 2,800 Sensus water meters and the scope of work included Cross Connection Control surveys during meter replacement. o Contact-Keith Donner Public Work Director kdonner@westonwi.gov 715-241-2606 Seymour, WI from 7.1.18-12.31.18 installation of 1,014 Kamstrup water meters and the scope of work included Cross Connection Control surveys during meter replacement. o Contact: John Schoen Director of Public Works jschoen@seymourutil.com 920-833-2397 Eden Prairie MN from 3.1.22-Current installation of 17,000+ Badger water meters. o Contact: Rick Wahlen Manager of Utility Operations rwahlen@edenprairie.org 952-949-8530 CROSS-CONNECTION EXPERTISE Please see the “Municipal Installation Experience” section above. 32 Item 5. 10 HydroCorp maintains ongoing contracts for Cross-Connection Control Program management and Inspections for over 400 Public Water Systems in five states. In 2014, HydroCorp was requested by an existing Municipal Client to assist in replacement of water meters during the same site visit as the Cross-Connection Inspections being performed by HydroCorp. Over time and by additional client requests for meter replacement services, HydroCorp now employs over 25 full-time professionals assigned to Water Meter Replacement projects and water customer care communications. HydroCorp has replaced over 75,000 water meters within 52 midwestern public water systems. HydroCorp currently monitors cross-connections/backflow prevention of 626,000 facilities. HydroCorp annually performs approximately 75,500 onsite cross-connection survey/inspections. HydroCorp monitors 910,000 Backflow Preventers at services connected to public water supplies. HydroCorp manages the discovery, correction and elimination of over 49,900 cross- connections, annually. DATA MANAGEMENT Utilizing HydroCorp’s proprietary software HydroSoft I/O and in-field tablet computers, HydroCorp Meter Technicians will record all required information specified within the request for proposal. HydroCorp captures a minimum of 4 – 7 photos per account/installation. The photos can include any of the following in the specified order; 1) Old meter setting found before installation 2) Old meter serial number, 3) Old meter reading, 4) New meter # and transmitter, 5) New meter setting after installation, 6) Confirmation of activation – photo of activation screen, fob, new meter register, or any device utilized for activation, 7) House, apartment, or business address. Alternate photos can be taken in place of any of the mentioned photos above. PROJECT MANAGEMENT Kirk Peterson will be responsible for managing the Columbia Heights Meter Replacement Project, please refer to his qualifications in the respective section. Meter replacement projects with AMI technology are complex, each with unique elements. Core & Main understands and manages these intricacies and is the industry leader in AMI system deployments. o A master schedule developed and managed. o Scope and budget established, and changes managed. o Meter configurations finalized, and equipment ordered and delivered. 33 Item 5. 11 o An AMI network infrastructure and backhaul established and tested. o Software installed, configured, and tested. o System integration between the CIS/Utility Billing software and the work order management system developed and tested. o Various project stakeholders must collaborate and be held accountable. o Project-specific processes and procedures established and monitored. o Stakeholders kept apprised of project status and issues. o Risks identified and managed. Core & Main’s Project Management team's enviable experience and proven project deployment methodology have earned Core & Main a leadership role in implementing successful AMI programs. The CORE+ team is knowledgeable and experienced, with PMP®-certified project managers, Mechanical and Computer Engineers, AMI specialists, software managers, business analysts, and metering subject matter experts. The CORE+ team utilizes a structured methodology with proven processes and procedures in planning, safety, quality, deployment, and communication to successfully implement AMI systems. This foundation enables Core & Main’s experienced and dedicated team to deliver projects on time, within budget, and with industry-leading customer satisfaction. Core & Main employ proven methods to ensure proper project planning,a critical success factor. Necessary activities completed in collaboration with the Utility during the Planning phase include identifying key Stakeholders, finalizing scope and deliverables, and developing the project plan and master schedule. The Project Manager will work diligently with suppliers, representatives of systems requiring integration, other vendors/subcontractors, and the city to develop a realistically aggressive schedule to set reasonable expectations from the start and then manage it accordingly. Other activities completed during this phase include obtaining stakeholder commitments, identifying city processes (i.e., customer service and hybrid billing during meter deployment) to be modified, defining community engagement methods, defining installation route sequencing and read/billing blackout periods, determining unique field scenarios and processes, and defining and documenting the testing phase. PLAN SAFETY 34 Item 5. 12 Core & Main is committed to providing employees with a safe working environment and complying with all federal, state, and local safety regulations. Workplace safety is not a burden on a project but rather a required daily focus integrated into our training and deployment processes and procedures. Quality assurance is an integral part of every Core & Main AMI meter deployment project. The two main areas of quality focus are fieldwork and data. Throughout the meter deployment project, staff will monitor meter installation quality in the field and adjust processes to meet unique project circumstances. Core & Main Project Managers and Installation Supervisors conduct the field audits. Data collection accuracy during the installation process is a critical success factor. We employ a data validation team to ensure that the equipment serial numbers, final read, and other data logged in the field match the information captured by the photos. Discrepancies are field- verified and corrected to ensure accurate meter exchange data transmitted to city systems. Planning and Periodic Status Meetings. For the stakeholders engaged in the project (i.e., Utilities, Billing, and Customer Service), Core & Main will conduct periodic meetings to facilitate collaboration during the project's planning phase, along with status update meetings throughout the project. Core & Main is committed to providing employees with a safe working environment and complying with all federal, state, and local safety regulations. Workplace safety is not a burden on a project but rather a required daily focus integrated into our training and deployment processes and procedures. CROSS-CONNECTION SUPERVISION Dave Cardinal, Vice President Municipal Division Dave has over twenty years’ experience as a water professional and has a successful record of accomplishments in the cross-connection control industry. Experienced in program development, project management, developing and conducting employee education and training programs, developing and instructing State certified education and training classes, quality assurance, customer service, and client satisfaction. He is responsible for establishing business practices, field operation procedures, and administrative functions related to cross connection control program management. Dave is an ASSE Certified Instructor for multiple ASSE Certifications related to Cross-Connection Control and Backflow Prevention. Dave also has been a speaker at numerous Water Industry Conferences. QUALITY COMMUNICATION 35 Item 5. 13 Scott Mitchell, Municipal Director of Operations Scott Mitchell has over 38 years’ experience as a water professional serving municipal systems and the cross-connection control industry. Scott started his employment with HydroCorp in 2012 as Field Inspector and was promoted to Midwest Director of Operations in 2018 and promoted to Municipal Director of Operations in 2024. He is experienced in customer relations, program operations, and cross-connection control field training. Responsibilities include administrative functions related new and existing contracts, overseeing scheduling and quality control. Scott’s credentials are Grade 1 DNR Certification for Distribution, Groundwater, and VOC removal. ASSE Surveyors course and ASSE 5000 Series certification. PERFORMANCE HISTORY Eden Prairie MN from 3.1.22-Current installation of 17,000+ Badger water meters. o Contact: Rick Wahlen Manager of Utility Operations rwahlen@edenprairie.org 952-949- 8530 CAPACITY HydroCorp and Core & Main posses the sufficient resources and staffing to execute the complete scope of work within the project’s established timelines, considering both current and planned workloads. We’ve included the biographies of the key staff involved in this project below: Kirk Peterson, Sr. Municipal Advisor/Project Manager – Core & Main Kirk Peterson brings a wealth of expertise to the project team, boasting an illustrious career spanning more than two decades in project management across the construction and municipal utilities sectors. His tenure in these industries have given him a profound understanding of the intricacies and challenges involved in meter replacement projects. Kirk joined the Core & Main team as a Senior Municipal Advisor in June of 2013, and has successfully orchestrated the seamless execution of over 23-meter replacement projects within his time here. He is known by his colleagues and customers for his hands-on approach when engaging with utilities, fostering relationships built on trust and reliability. Kirk is responsible for leading the project management and municipal sales for Core & Main’s Meter Initiative and PVF Sales in Minnesota. 36 Item 5. 14 Dave Cardinal, Vice President Municipal Division – HydroCorp Dave has over twenty years’ experience as a water professional and has a successful record of accomplishments in the cross-connection control industry. Experienced in program development, project management, developing and conducting employee education and training programs, developing and instructing State certified education and training classes, quality assurance, customer service, and client satisfaction. He is responsible for establishing business practices, field operation procedures, and administrative functions related to cross connection control program management. Dave is an ASSE Certified Instructor for multiple ASSE Certifications related to Cross-Connection Control and Backflow Prevention. Dave also has been a speaker at numerous Water Industry Conferences. Scott Mitchell, Municipal Director of Operations – HydroCorp Scott Mitchell has over 38 years’ experience as a water professional serving municipal systems and the cross-connection control industry. Scott started his employment with HydroCorp in 2012 as Field Inspector and was promoted to Midwest Director of Operations in 2018 and promoted to Municipal Director of Operations in 2024. He is experienced in customer relations, program operations, and cross-connection control field training. Responsibilities include administrative functions related new and existing contracts, overseeing scheduling and quality control. Scott’s credentials are Grade 1 DNR Certification for Distribution, Groundwater, and VOC removal. ASSE Surveyors course and ASSE 5000 Series certification. Ryan Schaeffer-Director, Meter Division – HydroCorp Ryan is a seasoned water professional; he began his career with HydroCorp as a meter installer and has installed thousands of meters of various sizes. He has worked diligently and proven his skills as an installer and a team leader. Ryan has successfully led and managed meter installation projects and installation teams. Ryan’s duty as Project Manager is to keep a consistent communication stream between all parties, including field staff, clients, and upper management. Furthermore, he partners with the Director of the Meter Division on preparation, logistics, and resource allocation to ensure the efficient completion of current projects and a seamless transition into the new metering system. Ryan Hensley, Administrative Account Manager – Municipal Division – HydroCorp As an Administrative Account Manager Ryan Hensley is responsible for providing administrative support to field surveyors, regional managers and division directors with all components associated with managing a comprehensive cross connection control program, in addition to providing highest level of customer service to our municipal clients. Ryan has been a member of the HydroCorp 37 Item 5. 15 team for over 10 years and is an ASSE 5150 certified Backflow Prevention Program Administrator. Ryans staff will be responsible for answering all water customer phone calls. Craig Wolf, New CCC Program Development and Water Meter Replacement Sales – Midwest Region – HydroCorp Since 2009 at HydroCorp, he was responsible for identification of hazards and deficiencies and determining proper recommendations for over 130 municipal client cross-connection control programs in Wisconsin. Certified by ASSE 5120 for Cross-Connection Control Surveying, Craig applies years of field experience to offering solutions for public water systems that are cost effective. In the past 5 years, Craig has been focused on client retention efforts, and developing new HydroCorp business relations. CUSTOMER COMMUNICATION METHODS HydroCorp will devise a postal notification letter to inform water customers of required meter replacement during a specific date range specified in the letter. Letters will be approved by the City to use by HydroCorp and include City branding. Notification letter to include advising owner/occupant of temporary water disconnection and responsibilities of owner for providing unobstructed access to within 8 cubic feet surrounding the existing water meter including operational valves for shut off. Postal notifications/letters are customizable and draft versions are presented for approval to City prior to actual mailing of notices. Each postal notification indicates a unique nine-character reference code that is specific to the account or water customer. This allows the customers to access the HydroSoft I/O online scheduling portal and ensures appointments are set for specific customers or addresses. This unique reference code populates the customer information when input, which ensures and mitigates human error when scheduling. Examples of this would be transposed, missing and/or too many numbers within addresses house/business number or deviations between Dr., Cir., Ct., St., etc. City administrative access is available to all necessary project parties. These can be created for specific individuals, departments, or projects. HydroCorp provides a demonstration of the City Online- Portal as well as a user guide with step-by-step processes, capabilities, and limitations. This user access is available through our website, which can be accessed by any device with internet connections/access. 38 Item 5. 16 Customer notifications through HydroSoft I/O, can be delivered to each customer in (2) three different forms; postal or email notifications are available if included with the provided customer data obtained from the utility/billing software. These different forms of notifications are queued based on specific intervals typically set at (14) fourteen days. Thus, (14) fourteen days from the first notices, second notices will automatically be available for distribution (same with second to third when applicable). ONLINE SCHEDULING SYSTEM HydroCorp will devise and host a dedicated website page for setting appointments with water customers at specific intervals during normal business hours. Water customers will have access to schedule their own appointments via a free and secure appointment website system. Website link will be presented on postal notices and City website. HydroCorp will provide designated City staff with online access to the live appointment schedule system. 39 Item 5. 17 Example Public Awareness/Appointment Web Page included with scope of work: TELEPHONE SUPPORT HydroCorp has a full-time staff of dedicated Customer Service Representatives (CSR), who are trained and well versed, in the water meter and cross-connection control industry. This allows for rapid responses, top-notch customer/contractor interactions, and a seamless process from receipt of scheduling notice, to completed installation and anything thereafter, that the customer may need. This support phone number and hours of operation are listed within each customer notice. An online live-chat feature will also be available during business hours. HydroCorp Field Technicians will provide each customer with a toll-free emergency business card. This card contains the phone number to our 24/7 emergency call center. The emergency call center will contact project personnel to resolve any customer issue, concern, question, or leak, after installation, that is a result of HydroCorp’s workmanship. HydroCorp’s response to any call or any item, is well within the 24hr response time, between first report and resolution. TEXT MESSAGING CAPABILITIES Postal notifications/letters are customizable and draft versions are presented for approval to City prior to actual mailing of notices. Each postal notification indicates a unique nine-character reference code that is specific to the account or water customer. This allows the customers to access the HydroSoft I/O online scheduling portal and ensures appointments are set for specific customers or addresses. This unique reference 40 Item 5. 18 code populates the customer information when input, which ensures and mitigates human error when scheduling. Examples of this would be transposed, missing and/or too many numbers within addresses house/business number or deviations between Dr., Cir., Ct., St., etc. The assigned Water Meter installer will notify the water customer via text when they are in route. City administrative access is available to all necessary project parties. These can be created for specific individuals, departments, or projects. HydroCorp provides a demonstration of the City Online- Portal as well as a user guide with step-by-step processes, capabilities, and limitations. This user access is available through our website, which can be accessed by any device with internet connections/access. Customer notifications through HydroSoft I/O, can be delivered to each customer in (2) three different forms; postal or email notifications are available if included with the provided customer data obtained from the utility/billing software. These different forms of notifications are queued based on specific intervals typically set at (14) fourteen days. Thus, (14) fourteen days from the first notices, second notices will automatically be available for distribution (same with second to third when applicable). CUSTOMER EDUCATION VIA WEBSITE HydroCorp will devise and host a dedicated web page (at no extra charge) for water customers to set their own appointments, view detailed information and educational videos related to the project. 41 Item 5. 19 This page will include photos of all installers and could include other means of educational material pertaining to the project such as a what to expect during the install video, photos of a good and bad valve, and so on. Example Public Awareness/Appointment Web Page included with scope of work: DOCUMENTATION PROCESS Utilizing HydroCorp’s proprietary software HydroSoft I/O and in-field tablet computers, HydroCorp Meter Technicians will record all required information specified within the request for proposal. HydroCorp captures a minimum of 4 – 7 photos per account/installation. The photos can include any of the following in the specified order; 1) Old meter setting found before installation 2) Old meter serial number, 3) Old meter reading, 4) New meter # and transmitter, 5) New meter setting after installation, 6) Confirmation of activation – photo of activation screen, fob, new meter register, or any device utilized for activation, 7) House, apartment, or business address. Alternate photos can be taken in place of any of the mentioned photos above. 42 Item 5. 20 GIS LOCATION AND PHOTOGRAPHS HydroCorp will document location of water meter as well as provide GPS coordinates. HydroCorp captures a minimum of 4 – 7 photos per account/installation. The photos can include any of the following in the specified order; 1) Old meter setting found before installation 2) Old meter serial number, 3) Old meter reading, 4) New meter # and transmitter, 5) New meter setting after installation, 6) Confirmation of activation – photo of activation screen, fob, new meter register, or any device utilized for activation, 7) House, apartment, or business address. Alternate photos can be taken in place of any of the mentioned photos above. CROSS-CONNECTION SURVEY DOCUMENTATION HydroCorp to provide the following Cross Connection Control Inspection services when exchanging residential water meters: HydroCorp will perform a comprehensive cross connection control inspection at each residential home where water meters are replaced. The inspection will not be applicable to Commercial, Public Authority or Multi-Family locations. HydroCorp will document and inventory all backflow prevention assemblies, devices, and methods during the onsite survey and be made available in an electronic and Excel format to the Utility. HydroCorp will inventory and document all existing backflow prevention devices and assemblies on the outside and around the water meter for proper installation. HydroCorp will inventory and document all existing Sump Pumps. HydroCorp will inventory and document all existing Down Spouts. HydroCorp will generate all inspection notifications for non-compliant homeowners informing them of installation requirements or required corrective action. Specific plumbing code reference and written corrective action recommendations will be included for each non-compliant home. A detailed corrective action report for each non-compliant residential home will be provided to the Utility. HydroCorp will provide full-time and Toll-Free phone call support for customer questions. Phones will be staffed during normal business hours between Monday through Friday. An external answering service is utilized for overflow and after-hours calls. HydroCorp will document a degree of hazard and appropriate future re-survey frequency upon completion of each survey. HydroCorp will provide a comprehensive summary of all cross-connection inspections completed and compliance status in electronic and Excell format to the Utility. Records will be accessible via a secured website and include property address. HydroCorp will record any private wells found and make sure they are not connected to the public water supply. Private wells will be reported to the Utility. 43 Item 5. 21 HydroCorp will provide a full time employed individual, or individuals to oversee the project with American Society of Sanitary Engineering credentials (ASSE) 5120 and 5150. PROPOSED PROJECT SCHEDULE Scheduling will be predicated on the fulfillment of supply. The creation of notices, account list, and online appointment site will be created shortly after award. 44 Item 5. 22 Additional Information HYDROCORP SCOPE OF SERVICES – METER REPLACEMENT: HydroCorp to provide the following services when exchanging water meters: HydroCorp will devise a postal notification letter to inform water customers of required meter replacement during a specific date range specified in the letter. Letters will be approved by the City to use by HydroCorp and include City branding. Notification letter to include advising owner/occupant of temporary water disconnection and responsibilities of owner for providing unobstructed access to within 8 cubic feet surrounding the existing water meter including operational valves for shut off. HydroCorp will send postal notification letters to designated water customers to ensure necessary water meter replacement appointments are confirmed. HydroCorp will devise and host a dedicated website page for setting appointments with water customers at specific intervals during normal business hours. Water customers will have access to schedule their own appointments via a free and secure appointment website system. Website link will be presented on postal notices and City website. HydroCorp will provide designated City staff with online access to the live appointment schedule system. HydroCorp will provide full-time Toll Free 800 number phone support for customer questions and appointment requests by HydroCorp Administration Staff. Direct phone contact to HydroCorp staff will be available during normal business hours excluding holidays. An external answering service is utilized for overflow and after-hours calls. HydroCorp will make 2 attempts to establish an appointment for meter replacement at each address. If email addresses are provided as part of the original account listing, HydroCorp will make additional attempts to contact water customers for appointment setting. Definition of attempts: 1st Postal Notice, 2nd Postal Notice, 3rd City HydroCorp will document in electronic format; relevant identification numbers and meter readings of each existing and new meter installed by HydroCorp. Each record will include a digital image of the old meter reading for account reference. HydroCorp will provide identification to the property owner upon arrival. HydroCorp will document location of water meter as well as provide GPS coordinates. 45 Item 5. 23 HydroCorp will install new water meter, associated fittings and gaskets as provided by the City or supplier. The City or the supplier will provide all consumables for the project. HydroCorp Technician shall verify activation of each meter installed, re-establish water supply and verify full water pressure at nearest tap for 30 seconds. HydroCorp will respond to reported leaks at meter junction or service control valve within 24 hours (Monday-Friday) after the incident has been reported to the City. HydroCorp will deliver removed (old) meters, transmitters and wiring to a designated area of the Public Works Building on a daily basis or alternate site provided by the City. HydroCorp will retrieve new meters, fittings and gaskets, and all other needed consumables as provided by the City and/or supplier on a daily basis during normal working hours. New meters will be available in a designated area at the Public Works Building, or alternate location. HydroCorp will provide ongoing progress meter replacement status reporting during the contract period on a weekly basis. HydroCorp will record and be able to report on the type of water service material and the size of service along with pictures and serial numbers of old and new water meters. HydroCorp reserves the right to determine safe operating condition of water shutoff control valves prior to performing any meter replacement work. City to provide on call personnel to facilitate curb stop shut offs as necessary. Control valves appearing to be in questionable condition or potentially leaking/prone to failure will be required to be replaced or repaired at the cost of building owner prior to any meter upgrade work being performed by HydroCorp. It will be at HydroCorps discretion to determine if the option to freeze would work. HydroCorp will change the meter and charge a predetermined fee for the water line freeze. HydroCorp reserves the right to determine safe operating condition of electrical grounding prior to performing any meter replacement work. If an issue, the building owner will be required to correct prior to any meter upgrade work being performed by HydroCorp and we will notify City of issue. HydroCorp shall provide the installation of the grounding wire at a predetermined per installation fee. HydroCorp shall not be responsible for damages due to faulty control valves, leaks or plumbing. All necessary plumbing repairs and costs are the responsibility of homeowner. The Company disclaims any and all liability arising from or related to operating curb stops. The Company will not be responsible for any damages, claims or liabilities of any kind or nature, 46 Item 5. 24 including but not limited to personal injury, property damage, financial loss, or any other losses (collectively, “Losses”) that may arise directly or indirectly from operating curb stops. The Company takes no responsibility for any action taken during the operation of curb stops by any employee, agent, contractor, or any other persons acting on behalf of the Company. The Company is not liable for any unlawful or negligent acts that may occur during operation of curb stops. The Company urges all individuals involved in operating curb stops to act in accordance with applicable law and adhere to all applicable regulations and guidelines. Additionally, the Company shall not be held liable for any failure to comply with any applicable laws and regulations in connection with the operation of curb stops. By executing this proposal, the undersigned releases and agrees to hold HydroCorp its equity owners, affiliates, managers, officers, agents, employees, successors and assigns from any and all Losses arising out of or related to the Company’s participation in operating curb stops. HydroCorp will work with BS&A, as we have in the past to generate a weekly import file to assist in the seamless integration of data needed. This will be generated and tested before project kickoff. SAMPLE REPORTING 47 Item 5. 25 48 Item 5. 26 Memorandum of Insurance Please refer to Core & Main’s memorandum of insurance below. HydroCorp’s insurance will be provided post award. 49 Item 5. 27 50 Item 5. 28 Certificate of Authority 51 Item 5. 29 Core & Main Master Services Agreement [CLIENT NAME] 52 Item 5. 30 Master Project Agreement Core & Main LP “Street Address” “City, State Zipcode” 53 Item 5. Table of Contents Section Purpose and Scope .................................................................................................................................... 1 Term ......................................................................................................................................................... 2 Core & Main’s Responsibilities ................................................................................................................ 3 Client’s Responsibilities ............................................................................................................................ 4 Default of Client ........................................................................................................................................ 5 Default of Core & Main ............................................................................................................................ 6 Force Majeure ........................................................................................................................................... 7 Taxes, Permits, and Fees ........................................................................................................................... 8 Warranty .................................................................................................................................................... 9 Indemnity .................................................................................................................................................. 10 Title and Risk of Loss .............................................................................................................................. 11 Liability .................................................................................................................................................... 12 Insurance ................................................................................................................................................... 13 Safety ........................................................................................................................................................ 14 Hazardous Materials .................................................................................................................................. 15 Delays and Access ..................................................................................................................................... 16 Compliance .............................................................................................................................................. 17 Dispute Resolution .................................................................................................................................... 18 Attorney’s Fees ........................................................................................................................................ 19 Assignability ............................................................................................................................................ 20 Notices ...................................................................................................................................................... 21 Binding Effect .......................................................................................................................................... 22 Modifications ........................................................................................................................................... 23 Severability .............................................................................................................................................. 24 Privacy ...................................................................................................................................................... 25 54 Item 5. Appendix A Project Scope Exhibit A-1 Project Pricing Appendix B Warranty Exhibit B-1 Manufacturers’ Warranties Master Project Agreement This Master Project Agreement (“Agreement”) dated as of _______________, 20__ (the “Effective Date”) between Core & Main LP, a Florida limited partnership (“Core & Main”), and The City of ___________________, ____ (“Client”). Core & Main and Client may be referred to herein individually as a “Party,” and jointly as the “Parties.” 1. Purpose and Scope. The Parties have entered into this Agreement for the purpose of Core & Main providing ___________________ to Client (the “Project”). Core & Main agrees to undertake the necessary work required for the completion of Core & Main’s obligations under this Agreement, including providing materials and any installation or services as specified in Appendix A (the “Work”). Client agrees to undertake all of its obligations that are identified and to pay Core & Main in the manner contemplated by this Agreement. 2. Term. The Term of this Agreement shall begin on the Effective Date and, unless earlier terminated in the manner contemplated by this Agreement, shall endure for the period specified in Appendix A. 3. Core & Main’s Responsibilities. Core & Main shall provide all Work as described in this Agreement. Without limiting the generality of the foregoing, Core & Main shall maintain supervision of all its subcontractors. Any work or services beyond the scope of the Work agreed to herein shall not be considered as part of this Agreement. There shall be no implied or verbal agreements between the Parties relating to the subject matter of this Agreement. 55 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 3 of 48 4. Client’s Responsibilities. Client shall be responsible for cooperating with Core & Main, providing accurate information in a timely manner, and making payment in a timely manner for Work performed. Client shall designate a representative who will be fully acquainted with the Work and will be reasonably accessible to Core & Main and its subcontractors, and will have the authority to make decisions on behalf of Client. Client shall provide to Core & Main and its subcontractors all information regarding legal limitations, utility locations and other information reasonably pertinent to this Agreement and the Project. Client shall be required to give prompt notice should it become aware of any fault or defect in the Project. 5. Default of Client. The following events shall be considered events of Default of Client: (a) The failure of Client to make payments to Core & Main in accordance with the terms of this Agreement; (b) any representation or warranty provided by Client that proves to be materially false or misleading when made; (c) Client becomes insolvent, or makes an assignment for the benefit of creditors, or should a voluntary or involuntary petition in bankruptcy or a reorganization or any adjudication of Client as insolvent or bankrupt be filed; (d) any failure of Client to comply with or perform according to the terms of this Agreement or to correct such failure to perform within thirty (30) days of receipt of written notice from Core & Main. If an event of Default by Client occurs, Core & Main will have the right to cancel this Agreement and to terminate immediately all Work hereunder without further obligation except the Client will be obligated to pay for Work performed through the date of termination, plus damages and costs incurred as a result of Client’s default. 6. Default of Core & Main. The following events shall be considered events of default on the part of Core & Main: (a) the failure of Core & Main to deliver its Work free and clear of any lien or encumbrance by any subcontractor, laborer, materialman, or other creditor of Core & Main; (b) Core & Main becomes insolvent, or makes an assignment for the benefit of creditors, or should a voluntary or involuntary petition in bankruptcy or a reorganization or any adjudication of Core & Main as insolvent or bankrupt be filed; (c) any representation or warranty (excluding a warranty as contemplated by Section 9 of this Agreement) provided by Core & Main that proves to be materially false or misleading when made, (d) any failure of Core & Main to comply with or perform according to the terms of this Agreement or to commence efforts to correct such failure to perform within thirty (30) days of notice from Client, and thereafter continuously pursue correction. In the event of default by Core & Main, Client will have the right to cancel this Agreement and to terminate immediately all Work hereunder without further obligation except the Client will be obligated to pay for Work performed through the date of termination. Additionally, Client will be entitled to recover the documented excess actual and direct costs of procuring the Work hereunder through alternate sources provided that Client makes efforts to reasonably mitigate such actual and direct costs. 7. Force Majeure. Neither Core & Main nor Client shall be responsible to each other for damage or delay that arise from Force Majeure, including but not limited to conditions beyond the reasonable control, and not the result of the fault of the impacted Party, including, without limitation acts of God, storms, extraordinary weather, epidemic or pandemic, acts of government units, strikes or labor disputes, fire, explosions, thefts, vandalism, riots, acts of war or terrorism, non-price related unavailability of materials required for the Project, and unavailability of fuel. 8. Taxes, Permits, and Fees. Core & Main shall be responsible for obtaining all permits and related permit fees associated with the Project. The Client must disclose any known fees in advance of contract signing. 56 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 4 of 48 Client shall pay sales, use, consumer, and like taxes when applicable, as well as any tariffs relating to the materials to be provided hereunder. Client shall be responsible for securing at its sole expense any other necessary approvals, easements, assessments, or required zoning changes. Core & Main shall be responsible for all taxes measured by Core & Main’s income. 9. Warranty.The extent of the warranty to be provided by Core & Main is set forth in Appendix B. 10. Indemnity. Subject to Section 12 of this Agreement: (a) Except as otherwise expressly provided in Section 10(b) below, Client assumes all liability and risk associated with the use, operation, and storage of any materials and equipment in its custody and control and for property damage, injuries, or deaths associated with or arising out of the use and operation of the Project by Client, except to the extent said damage, injury, or death is the direct result of Core & Main, its employees, and agents. (b) Core & Main agrees to indemnify, defend and hold Client, its officers and employees harmless from actual and direct losses and damages sustained by Client arising from (a) third party claims to the extent caused by the gross negligence or intentional misconduct of Core & Main, (b) breach of this Agreement or (c) violation of law. To the extent Client has paid Core & Main for its Work, Core & Main shall indemnify and hold Client and its officers and employees harmless from all claims for payment of subcontractors or materialmen hired by Core & Main for Work relating to the Project. 11. Title and Risk of Loss. Title and risk of loss for materials and equipment will pass to Client upon delivery to Client at Client’s location. If materials are not delivered to Client’s location, or if Core & Main is responsible for installation of materials and equipment prior to delivery to Client, then title and risk of loss for materials and equipment will pass to Client upon installation. 12. Liability. Core & Main’s liability under this Agreement shall not exceed the amounts paid to Core & Main by Client hereunder. NEITHER CORE & MAIN NOR CLIENT SHALL BE RESPONSIBLE TO EACH OTHER FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL, EXEMPLARY OR SPECIAL DAMAGES RESULTING IN ANY FORM FROM THE PROJECT, WHETHER ARISING OUT OF WARRANTY, INDEMNITY, TORT, CONTRACT, OR OTHERWISE. 13. Insurance. 57 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 5 of 48 (a) During the Term of this Agreement Core & Main will procure and maintain at its own expense the following insurance coverage: (1) General Liability $1,000,000/occurrence, $2,000,000 aggregate (2) Automobile Liability $1,000,000 combined single limit (3) Worker’s Compensation, including Employer’s Liability As required by law (4) Umbrella Liability $5,000,000 (b) Core & Main will add Client as an additional insured on the above policies except Workers’ Compensation. Core & Main shall provide a certificate of insurance evidencing the above coverage. Notice of cancellation will be provided 30 days in advance. (c) Core & Main will require its Subcontractors to provide a certificate of insurance evidencing coverage acceptable to Core & Main, and to include Client and Core & Main as additional insureds. 14. Safety. Core & Main shall have the primary responsibility for all safety precautions and programs necessary to complete its Work associated with the Project. Core & Main agrees to comply with all applicable regulations, ordinances, and laws relating to safety. It shall be the responsibility of Client, however, to assure that the sites controlled by Client at which Core & Main is expected to perform its Work are safe sites. 15. Hazardous Materials. The Project and the Work expressly excludes any Work of any nature associated or connected with the identification, abatement, cleanup, control, removal, or disposal of hazardous materials or substances. Client warrants and represents that, to the best of Client’s knowledge, there is no asbestos or other hazardous materials in the Project premises in areas that Core & Main shall be required to perform work that in any way will affect Core & Main’s ability to complete the Project. If Core & Main is made aware or suspects the presence of hazardous materials, Core & Main reserves the right to stop work in the affected area and shall immediately notify Client. It shall remain Client’s responsibility to correct the condition to comply with local and federal standards and regulations. Client shall remain responsible for any Claims that result from the presence of the hazardous materials. Client is responsible for proper disposal of all hazardous materials, including but not limited to lithium batteries. 58 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 6 of 48 16. Delays and Access. In the event of any delay, including but not limited to Force Majeure or delays caused by Client, Core & Main will notify Client in writing of the existence and nature of the delay. Client and Core & Main will then mutually agree upon any new completion dates, and pricing or payment terms for the Work contemplated by this Agreement. Nothing in the foregoing sentence shall be deemed to relieve Client from its obligation to provide Core & Main and its subcontractors reasonable and safe access to facilities that are necessary for Core & Main to complete the Work. 17. Compliance. Core & Main and Client will comply with all applicable laws, statutes, rules, regulations, ordinances, codes, and orders of any governmental bodies, agencies, authorities, and courts having jurisdiction. [Insert following paragraph only for projects performed in Alabama]By signing this contract, the contracting parties affirm, for the duration of the agreement, that they will not violate federal immigration law or knowingly employ, hire for employment, or continue to employ an unauthorized alien within the State of Alabama. Furthermore, a contracting party found to be in violation of this provision shall be deemed in breach of the agreement and shall be responsible for all damages resulting therefrom. 18. Dispute Resolution. (a) The Parties will attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either Party may initiate negotiations by providing written notice to the other Party, setting forth the subject of the dispute and the relief requested. The recipient of such notice will respond in writing within three business days from receipt with a statement of its position on, and recommended solution to, the dispute. Thereafter the Parties will attempt to resolve the dispute through negotiations conducted in good faith. If the dispute is not resolved by these negotiations within 15 business days following the date of the initial written notice, the matter will be resolved in accordance with Section 18(b) below. (b) The Parties agree that in the event any dispute between them relating to this Agreement is not resolved under Section 18(a) above, exclusive jurisdiction shall be in the trial courts located within the county of the State in which Client has its principal office, any objections as to jurisdiction or venue in such court being expressly waived. BOTH CLIENT AND CORE & MAIN HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATIONS, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 59 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 7 of 48 (c) All disputes arising out of this Agreement shall be governed by, and construed in accordance with, the laws of the State where Client has its principal office, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State or any other jurisdiction) that would cause the application hereto of the laws of any jurisdiction other than the laws of the State. 19. Attorney’s Fees. In the event of any litigation between Parties hereto arising from or with respect to this Agreement, the Parties will each bear their own attorneys' fees and costs of the action. 20. Assignability. Neither Party may assign, delegate or otherwise transfer this Agreement or any of its rights or obligations hereunder without the other Party’s prior written consent. 21. Notices. All notices and communications related to this Agreement shall be made in following address: If to Client: The City of ________________, _____ ______________________ ______________________ If to Core & Main: Core & Main LP ______________________ ______________________ With a copy to: Legal Department Core & Main LP 1830 Craig Park Court St. Louis, MO 63146 Ph: (314) 432-4700 60 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 8 of 48 Fax: (314) 432-2550 22. Binding Effect. Client and Core & Main each represent and warrant to the other that this Agreement has been duly authorized, executed and delivered by such Party and constitutes a legal, valid and binding agreement enforceable against such Party in accordance with its terms. 23. Modifications. This Agreement shall not be modified in any respect except by a written document signed and agreed to by both Core & Main and Client. 24. Severability. Any term or provision found to be prohibited by law or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without, to the extent reasonably possible, invalidating the remainder of this Agreement. 25. Privacy. The Privacy Policy of Core & Main may be accessed at the following URL: www.coreandmain.com/privacy-policy/. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written. “CORE & MAIN” CORE & MAIN LP By: ______________________________ Printed Name: _____________________ Printed Title _______________________ 61 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 9 of 48 “CLIENT” CITY OF _________________________ By: ______________________________ Printed Name: _____________________ Printed Title _______________________ 62 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 10 of 48 Appendix A Project Scope 1. Summary of Work. The Summary of Work for the Project contemplated hereunder consists of providing and installing (if applicable) all Project materials and equipment as listed in Exhibit A-1, and management of the installation process (if applicable) within the geographic area defined in the propagation study or such other geographic area as otherwise defined herein (the “Utility Service Area”). 2. Project Implementation Period. The Project is projected to commence on _________________________, and will be implemented over an approximate ____________ period of time. Project completion is estimated on or around ___________________. 3. Compensation. Client agrees to pay Core & Main for the Work as described in Exhibit A-1 and additionally for each supplemental item as required by Client and agreed by the parties. Core & Main reserves the right to increase prices upon thirty (30) calendar days’ notice to address factors beyond its control, including but not limited to government regulations or tariffs. Client will make payment to Core & Main within ____ days of the receipt of an invoice. 4. Installation Responsibilities of Core & Main. (a) Project Installation. Core & Main agrees to perform the Work in accordance with Client’s specifications that are attached hereto during the Project Implementation Period specified above. Core & Main will be responsible for installing the Project according to manufacturer standards and such local standards, if any, as are attached hereto. (b) Water Shutoffs. Core & Main, its agents and subcontractors, will be responsible for shutting off the water to each meter serviced as well as notifying each customer of the water shutoff. Some assistance may be required by Client with the notification of its customers. The installation team will knock on the doors of residential customers as well as leave notifications on their doors. In the case of large commercial customers such as schools, hospitals, nursing homes or any other commercial customer, special efforts will be made to ensure minimum 63 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 11 of 48 disruption to water needs. In order to prevent any damage from plumbing fixtures that are sensitive to water shutoffs, Core & Main will schedule replacements with these commercial customers and will notify the maintenance personnel when turning the water back on at these facilities. Regardless of any effort of Core & Main, ultimate responsibility of any and all fixtures inside buildings will remain the responsibility of the end user and/or Client as detailed in any Service Contract that exists between Client and its Customers. (c) Curb Stops. In the event the service location lacks a curb stop or it is defective, Core & Main or its representative will contact the Client. In this event the Client will either A) authorize Core & Main to repair the defect at the price as listed in Exhibit A-1 or as otherwise agreed by the Parties or, B) repair the defect with Client’s forces and notify Core & Main that the repair has been made or, C) exclude the meter change out from the Project. (d) Meter Boxes, Vaults, and Roadways. Core & Main is responsible for repairing any damages to meter boxes, vaults, and roadways that result from the installation of the Project; provided, however, that Core & Main shall not be liable for pre-existing conditions or leaks. Core & Main will install new meter boxes as authorized by the Client’s representative, with appropriate lid selection to be mutually agreed upon. The ________________________will retain all existing water meters and materials pulled from the ground during the installation. (e) AMI Infrastructure Work. If Core & Main’s Work includes installation of AMI infrastructure, Core & Main will install any infrastructure included in Exhibit A-1 in accordance with the manufacturer’s suggested recommendations. (f) Disposal. The ________________________ will be responsible for the disposal of all waste, debris and materials from the installation of the Project. (g) Certified Installers. In the event this Agreement includes gas or electric meters or should local laws dictate, Core & Main will ensure that the meter installers are certified by the governing board as required. (h) Liability. Water Meter Replacement: Core & Main is responsible for any damages that occur within 6” on either side of the water meter resulting from the Project installation. Any damages incurred within this 6” area will be promptly repaired at the expense of Core & Main. Core & Main is not liable for damages outside the 6” zone, 64 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 12 of 48 either on the water distribution side or on the customer side incurred from the Project installation including shutoff, temporary outage, and restart of water service. Core & Main is not liable for any pre-existing conditions including leaks, faulty workmanship and materials from previous projects or rust. Should such conditions occur (i.e .leaks) Core & Main may document them and at Client’s written request, repair them for a negotiated price. Back-Flow Prevention Devices: Core & Main will not be required to install or repair any Back-Flow Prevention Devices. Core & Main assumes no liability or responsibility for the proper functioning of these devices. Core & Main recommends that the Client notify each customer about the potential impact of thermal expansion, but leaves this decision to the discretion of the Client. (i) Non-Covered Work. Contracted meter change outs contemplate a standard meter change out. In the event that locations exist where conditions require nonstandard work (i.e. move a service location etc., move fences for or other customer structures & items for access, install systems in heavy traffic locations alleys, parking lots etc.), Core & Main and the Client will either agree on a price the Client will pay Core & Main to perform the work, or the Client will exclude this work from the Project. Should Core & Main, in its sole discretion, determine that any portion of the Work is unsafe, that portion of the Work will be considered nonstandard and will be excluded from the Project. 5. Responsibilities of Client during Installation. (a) Owner-Furnished Data. Client shall provide Core & Main all technical data and information in Client’s possession, including previous reports, maps, surveys, necessary for Core & Main to perform the Work. Client shall be responsible for identifying the location of meters. Should Core & Main require assistance in finding the meter location, Client shall locate the meter in a timely manner. (b) Access to Facilities and Property. Client shall make its system facilities and properties available and accessible for inspection by Core & Main and its subcontractors. (c) Client Cooperation. Client support will be required during implementation of the Project to obtain access to meter boxes/pits, infrastructure sites and to coordinate utility interruptions. Client will provide notification in its billing to its customers that Core & Main is performing the designated work and that possible service interruption may result. 65 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 13 of 48 (d) Timely Review. The Client shall examine all invoices and inspect all completed work by Core & Main in a timely manner. In the event that Client fails to make timely payment to Core & Main as a result of Client’s delay in inspecting the Work or processing Core & Main’s invoice, Core & Main reserves the right to suspend further work without penalty until such time as payment is made. The project completion date will be extended for the same duration of any such delay and suspension of Work. 66 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 14 of 48 Exhibit A-1 Project Pricing 67 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 15 of 48 Appendix B WARRANTY The warranties on Work shall be as follows: 1. Project Materials and Supplies. (a) General. Meters and equipment that Client purchases from Core & Main are warranted by the manufacturer to be free from Manufacturers’ Defects for the period specified in the manufacturer’s warranty. A copy of the present warranty of each manufacturer that will supply meters and equipment as part of the Project is attached hereto as Exhibit BD-1. The term of such manufacturer’s warranty shall be as set forth in such attached warranty (as the same may be changed from time to time during the course of the performance of the Agreement, but with changes to apply only to purchases of meters and equipment occurring after the change becomes effective), but generally the start date for meter and equipment warranties is the date of the manufacturer’s shipment of such meters and equipment (“Manufacturer’s Warranty Period”). PROJECT MATERIALS AND SUPPLIES OTHER THAN METERS AND EQUIPMENT ARE NOT WARRANTED. CORE & MAIN DOES NOT PROVIDE ANY SEPARATE WARRANTY FOR PROJECT MATERIALS AND SUPPLIES. (b) Core & Main’s Responsibility. Upon any breach of the manufacturer’s warranty on a meter or equipment noticed to Core & Main during the applicable Manufacturer’s Warranty Period, Core & Main’s sole responsibility shall be to cooperate with Client in arranging for the manufacturer to repair or replace any defective meter or equipment. 2. Installation Work and Services. (a) General. Core & Main warrants that all installation Work provided by Core & Main shall be performed by Core & Main in a workmanlike manner and in compliance with any specifications set forth in this Agreement, with such warranty to expire one year from the date when such installation Work was performed (the “Warranty Period”). (b) Exclusive Remedy. Upon any breach of Core & Main’s warranty as to installation Work during the applicable Warranty Period, Core & Main’s sole responsibility shall be to perform any corrective installation Work necessary to bring Core & Main’s installation Work into compliance with such requirements. 68 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 16 of 48 3. DISCLAIMER OF FURTHER WARRANTIES. EXCEPT FOR THE FOREGOING EXPRESS WARRANTY, CORE & MAIN DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT, WHETHER ARISING OUT OF WARRANTY, INDEMNITY, TORT, CONTRACT OR OTHERWISE, SHALL CORE & MAIN BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES OF ANY KIND. IN NO EVENT WILL THE LIABILITY OF CORE & MAIN UNDER THIS AGREEMENT EXCEED THE AMOUNTS PAID TO CORE & MAIN BY CLIENT HEREUNDER. 69 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 17 of 48 Exhibit B-1 Manufacturers’ Warranties Attached to this Exhibit B-1 are the manufacturers’ warranties for each of the manufacturers providing materials to the Project. 70 Item 5. © Core & Main All Rights Reserved. Confidential and Proprietary Information Page 18 of 48 Pricing Proposal 71 Item 5. ITEM: Council Corner: Blue Zones Information from Councilmember Spriggs. DEPARTMENT: Administration BY/DATE: Kevin Hansen / May 30, 2024 CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below) X Healthy and Safe Community _Equitable, Diverse, Inclusive, and Friendly _Trusted and Engaged Leadership _Thriving and Vibrant Destination Community _Strong Infrastructure and Public Services X Sustainable BACKGROUND: Councilmember Spriggs is researching ways to make the city healthier and more sustainable; and came across the group Blue Zones. Councilmember Buesgens had mentioned it a while back as well, and he was recently able to meet with a representative from the organization to learn more. Councilmember Spriggs was provided with the attached informational documents that he wanted to share with council and review at the June Work Session. The cities/counties that have participated have seen great social, financial, and health-related improvements, including close-by Albert Lea, MN (discussed in attached documents). ATTACHMENT(S): Blue Zone Informational Documents CITY COUNCIL WORK SESSION MEETING AGENDA SECTION WORK SESSION ITEM MEETING DATE JUNE 3, 2024 72 Item 6. Confidential. ©2021 Blue Zones, LLC. All Rights Reserved.Page 1 31% decrease in smoking, reducing smoking rate to 13.5% Nine-point increase in residents who exercise at least 30 minutes three or more days of the week, now at 62% Overall 2018 Well-Being Index score rose to 62.5, a gain of 3.7 points or 6% since 2014 $20B Lifetime Reduced Smoking Value Fort Worth, Texas BLUE ZONES PROVEN RESULTS Blue Zones helps transform communities across the nation into areas where the healthy choice is easy and people live longer with a higher quality of life. The below reflects, but is not limited to, the proven results of Blue Zones Project in various communities, cities, and states across the U.S. Since the launch of Blue Zones Project in Fort Worth, the health and well-being of residents has surged while the U.S. overall health score has dropped. According to the annual Gallup-Sharecare Well-Being Index®, Fort Worth’s overall 2018 Well-Being Index score rose to 62.5, a gain of nearly four points since 2014, when the city began working with Blue Zones Project®. Each point increase in well-being for a population leads to approximately a 2% reduction in ER visits and hospital utilization, and to approximately a 1% reduction in total health care costs. This equals tens of millions of dollars of healthcare savings per year. Meanwhile the U.S. Well-Being Index score—which outpaced the Fort Worth score by 3 points in 2014—is 61.3, a decline of 0.5 over the same period. Compared annually to close to 190 metro areas reported nationally, Fort Worth’s equivalent rank for well-being rose from 185th in 2014 to 58th in 2017. According to the Gallup-Sharecare Well-Being Index (WBI): •Adult residents of the Fort Worth have reported substantially elevated levels of overall well-being in the four years since measurement began in 2014. •Fort Worth’s Well-Being Index score 2018 = 62.5 •Fort Worth’s Well-Being Index score 2014 = 58.8 The section of the city with the lowest well-being, East Southeast, saw the greatest improvement. With a 10.9% well-being improvement over five years, which is a 6.1-point increase moving from 55.9 in 2014 to 62.0 in 2018. Fort Worth moved from 185th to 58th in the Gallup-Sharecare annual database of around 190 U.S. communities. Fort Worth has also had statistically significant improvement in all five elements of well-being since baseline year. Reduced Smoking Rates in Fort Worth, TX: •Adult Smoking Rate in 2018 = 13.5% •Adult Smoking Rate in 2014 = 19.6% Fort Worth has saved an estimated $268 million in 2018 compared to 2014 based due to the reduced smoking rate among its adult residents. Gallup estimates Fort Worth’s lost productivity due to smoking (at a rate if 19.6%) was about $602 million per year across all of its employers in 2014. In 2018 Gallup estimates that these lost productivity costs were reduced by about $187 million per year as a function of the lower smoking rate, likely representing a substantial boost to the economy. In Fort Worth, the 6.1 percentage point estimated reduction in adult smoking translates to 38,074 fewer smokers than in 2014, yielding a savings in health care utilization of about $81 million per year compared to that year. Other well-being improvements: •Exercise 30 plus minutes, 3x days, week: Improved 9 points from 53% in 2014 to 62% in 2018. •Agree city/area is perfect place for you: Improved from 61.9% in 2014 to 65.6% in 2018. •Agree proud of community: Improved 5.6 points from 63.8% in 2014 to 69.4% in 2018. •Won $3.2 million in Safe Routes to School funding for seven FWISD schools. •Youth smoking decrease: Percentage of youth who report currently smoking cigarettes at least once in the last 30 days has declined from 9% in 2015 to 5.5% in 2017, according to the Youth Risk Behavior Surveillance Survey (YRBS). •Youth e-cigarette decrease: Percentage of youth who report currently using electronic vaping products at least once in the last 30 days has declined from 19.9% in 2015 to 7.4% in 2017, according to the YRBS Policy Impact & Funding. •Partnered with City and community partners to secure over $9.9 million in funding for built environment policies and infrastructure projects and $656 thousand in funding for community and school gardens, increasing fresh fruits and vegetables in schools, and a corner store transformation. What happens when you increase well-being by 1-point? What happens when you increase well-being by 10%? 2.2% less likelihood of hospital admission 1.7% less likelihood of ER visit 1.0% less likelihood of incurring healthcare costs 5.0% fewer unscheduled absences 5.0% higher reported job performance 6.0% more days of ‘best work’ in 28-day period 73 Item 6. Confidential. ©2021 Blue Zones, LLC. All Rights Reserved.Page 2 ““Fort Worth showed early promise in its efforts to improve the well-being of its residents with impressive gains in 2015 and 2016 compared to its baseline year of 2014. After mirroring national trends and taking a step back last year, Fort Worth’s latest jump in well- being in 2018, as the U.S. continues to decline, securely establishes it as a best practice example of what a community can accomplish when it sustains a focused commitment to well-being. The work of the Blue Zones Project in Fort Worth is playing an important role in the improving well-being culture and associated outcomes of the community.” — Dan Witters, Principal at Gallup • $15 million allocated for sidewalks and bicycle infrastructure and $5 million allocated for Safe Routes to School improvements out of 2018 bond, ten-fold increase in SRTS funding from previous bond. • Significant increase in the number of miles of bicycle infrastructure: Miles of bike lanes have increased from 9.6 miles in 2010 to 86.8 miles in 2018, and miles of bike routes (sharrows or bike route signage) have increased from 68 miles in 2010 to 87.2 miles in 2018. Food Systems Case Study: • City Healthy Food Financing Initiative – with low to no interest loans, retailers can open, renovate or expand retail outlets that provide fresh produce. • Urban Agricultural Ordinance – allows vacant lots within the city to be used for the development of urban farms with rezoning. Community and backyard gardens allowed to have small temporary sales on-site. Media Valuation: • Media mentions at $4,424,635 advertising equivalency • 2.3B total reach • 100% positive or neutral coverage • 2,195 total news stories Hawaii While national well-being has been declining since 2016, the well-being of Blue Zones Project Hawaii communities has remained steady since their baseline year of 2015 or 2017. Blue Zones Project Hawaii communities appear to be rebounding from 2019 to 2020 despite the survey window coinciding with the COVID-19 pandemic. IN 4M & WAHIAWA 4M Communities 2017-2019 Value Accrued: 7.2% decrease in risk = $4M in generated value 10-year value projection from 2019: 27.7% decrease in risk = $124M in generated value Wahiawa 2017-2020 Value Accrued: 10.1% decrease in risk = $3.9M in generated value Wahiawa 10 year value projection from 2019: 30.8% decrease in risk = $78M in generated value • The Blue Zones Project Wahiawa team partnered with other organizations and the County to help leverage $223 thousand in grant funding for policies, programs in Wahiawa. $13.5 million has been allocated toward bicycle and pedestrian projects in the form of the Wahiawa Bridge Project for shared use paths. • The percentage of adults utilizing public transportation or bicycles to actively commute to work increased from 10.2% in 2017 to 12.5% in 2019 (Census). • 20% of Wahiawa residents report that it is easier to walk or bike in their community today compared to five years ago (WBI). • Added 21.6 miles of new bike lanes County-wide. • 21 businesses donated 3,272 pounds of healthy food during a Give Healthy Food Drive in 2019 which will be an annual event. • According to FeedingAmerica.org, the percent of Honolulu County residents who are food insecure declined from 11.8% in 2016 to 10.4% in 2018. IN WEST HAWAII The Healthways Simulation Model, developed in collaboration with the World Economic Forum, Harvard, Johns Hopkins School of Public Health, and Boston Consulting Group, is a predictive population health simulation model that can calculate health care-related costs associated with conditions and behaviors, forecast the incidence and progression of these diseases over time, and determine the medical and productivity value of changes in health conditions over time. The accuracy of this model was scientifically and independently tested using data available from the Framingham Heart Study, the longest- running longitudinal epidemiologic public health study of its kind, to ensure validity of the model using real data points. According to this simulation model, West Hawaii has outperformed state of Hawaii well- being trends since its baseline year of 2017, seeing 10.5% fewer health risks than expected if the community had followed state trends (listed below). This risk avoidance equates to $2.96 million in avoided medical and productivity costs to the community from 2017 to 2019. • Adult smoking: According to the Behavioral Risk Factor Surveillance Survey (BRFSS), the adult smoking rate on Hawaii Island has declined from 16.2% in 2015 to 14.9% in 2017. The percentage of adults using e-cigarettes has declined from 6.1% in 2015 to 5.1% in 2017. 74 Item 6. Confidential. ©2021 Blue Zones, LLC. All Rights Reserved.Page 3 • Adult obesity: Decreased island-wide from 25% in 2015 to 23.3% in 2017, according to BRFSS. In Kona, adult obesity has declined from 57% in 2015 to 52% in 2017. • Adult depression: Island-wide, the percentage of adults with depression has declined from 15.1% in 2015 to 13.4% in 2017, according to BRFSS. Adult depression in Kona has also declined, from 13.3% in 2015 to 9.5% in 2017. • Youth smoking: Island-wide, cigarette use by high school youth has decreased from 11.4% in 2015 to 10.1% in 2017, according to the Youth Behavioral Risk Survey. • Youth physical activity: The percentage of Hawaii Island middle school youth meeting recommended physical activity guidelines increased from 16.3% in 2015 to 17.8% in 2017. • Produce consumption: Fruit consumption has increased island- wide and for Kona. Across Hawaii Island, the percentage of adults reporting that they consume more than three servings of fruit daily has increased from 16.2% in 2015 to 18.9% in 2017. For Kona, the percentage of residents reporting this has increased from 17.7% to 20.9% from 2015 to 2017. • BZP has partnered with organizations and the County to help bring $1.39 million in grants to Hawaii Island since the Project’s start in 2015. • Over 14 miles of new bicycle lanes have been added in the County from 2015-2019. • 50% increase in the number of farmer’s markets accepting SNAP/EBT across the County, from 10 farmers markets in 2015 to 15 in 2019. • Successfully advocated for the state’s passage of House Bill 1895 which requires retailers of electronic smoking devices to register with the Attorney General’s office in order to sell and creates a civil offense if the retailer is selling unregistered. IN CENTRAL HAWAII The Healthways Simulation Model, developed in collaboration with the World Economic Forum, Harvard, Johns Hopkins School of Public Health, and Boston Consulting Group, is a predictive population health simulation model that can calculate health care-related costs associated with conditions and behaviors, forecast the incidence and progression of these diseases over time, and determine the medical and productivity value of changes in health conditions over time. The accuracy of this model was scientifically and independently tested using data available from the Framingham Heart Study, the longest- running longitudinal epidemiologic public health study of its kind, to ensure validity of the model using real data points. According to this simulation model, Central Maui has outperformed state of Hawaii well-being trends since its baseline year of 2017, seeing 4.4% fewer health risks than expected if the community had followed state trends. This risk avoidance equates to $1.24 million in avoided medical and productivity costs to the community from 2017 to 2019. • 40% of Central Maui residents are aware of Blue Zones Project and 18% are engaged with the Project. • Central Maui residents who are engaged with the Project are more likely to be thriving in their life evaluation; 80% of those engaged are thriving in life evaluation compared to 50% of those who are aware but not engaged. • Engaged residents have higher purpose well-being with 56% thriving in purpose, compared to only 24% of non-engaged residents. • Adult smoking rate in Kahului has declined from 14% in 2016 to 10% in 2017. • Adult obesity: BRFSS data shows that the adult obesity rate in Kahului has declined from 60% in 2016 to 55% in 2017. • Over 21 miles of new bicycle lanes have been added in the County from 2015-2019. Media Valuation: • Media mentions at $6,694,742 advertising equivalency • 5.1B total reach • 100% positive or neutral coverage • 3,130 mentions *Selected communities stated. Klamath Falls, Oregon In 2015, Klamath Falls was selected to be the first Blue Zones Project demonstration site in the Pacific Northwest. Since then, local leaders, volunteers, and organizations throughout the community have worked to achieve certification status. As a result of its efforts, Klamath Falls can celebrate: • More than $1.3 million in grant funding to support community well-being projects including Safe Routes to Parks, Safe Routes to Schools, a Cigarette Litter Prevention Program (resulting in a nearly 80% reduction in tobacco litter downtown), supporting a preventative food pantry, increasing wayfinding signage, and increasing park access. • New ordinances that are paving the way for smoking cessation and tobacco prevention through smoke-free city parks, smoke- free events, and increased education around smoking cessation, leading to a 24% decrease in smoking rates since 2015. • New city policies that support healthy eating through the creation of the county food policy council, the county nutrition options resolution, and the adoption of many healthy meeting protocols in workplaces across the community. • Increased physical activity among approximately 4,400 students in the local schools by participating in Walking School Bus Days. • Twelve approved restaurants that offer a combined 37 new healthier menu items for adults and children. Klamath Falls has also become home to a vegan eatery and juicing company, offering even more options to the community’s residents. • Increased demand for produce, which prompted a regionally owned grocery store to increase its produce section resulting in a 12% increase in produce sales. • More than 1,113 individuals joined a Moai® walking group that promotes building friendships and moving naturally. • More than 715 individuals have volunteered to support the Blue Zones Project in Klamath Falls. 75 Item 6. Confidential. ©2021 Blue Zones, LLC. All Rights Reserved.Page 4 5 health risks statistically lower in Southwest Florida versus the state of Florida: 36% lower in tobacco use 28% lower in poor nutrition 17% lower in stress 23% lower in obesity 9% lower in lack of exercise Since 2015, Klamath Falls has seen a 24% decrease in smoking following Blue Zones Project implementation, advocacy, and policy work. Klamath Falls’ adult smoking rate now stands at 13.1%, down from 17.3% in 2015 according to the Gallup-Sharecare Well-Being Index. Youth smoking has also decreased, with the percentage of youth who report having smoked cigarettes in the past 30 days declining among 8th and 11th graders between 2015 and 2017. According to the Youth Behavioral Risk Survey (YBRS), for 8th graders, the percentage dropped from 6.7% in 2015 to 4.7% in 2017, and for 11th graders the percentage dropped from 11.2% in 2015 to 8% in 2017. Frequent e-cigarette use among 11th graders has also declined in Klamath Falls while it has risen nation-wide. According to the YBRS, the percentage of 11th graders who smoked e-cigarettes 3–5 days within the last 30 days declined from 4.2% in 2015 to 1.3% in 2017. Blue Zones Project Klamath Falls results include: • 20 Blue Zones Project Approved worksites • 8 Blue Zones Project Approved schools • 10 Blue Zones Project Approved restaurants • 2 Blue Zones Project Approved grocery stores • 27 participating faith-based, neighborhood and community organizations • More than 6,000 residents have taken the Personal Pledge or participated in a Blue Zones Project activity, like volunteering; attending a Purpose Workshop, cooking demonstration, or Blue Zones Project Story; or joining a Moai®. • The city of Klamath Falls and Klamath County have implemented key food, built environment, and tobacco policies and projects. Food Systems Case Study: • Established on-line Farmers Marketplace: online food hub connecting local producers with consumers. Provides the only year-round location where SNAP recipients can purchase fresh produce year-round. • Produce Connection: a network of eight drop sites where free produce is provided. Over 790,000 lbs. of produce distributed in 2018. Media Valuation: • Media mentions at $2,754,967 advertising equivalency • 1.5B total reach • 99% positive or neutral coverage • 2,428 total news stories Southwest Florida SWFL Medical and Productivity Value of $40,313,800 (accrued in 4 years 2015-2019): • 7.2% decrease in risk • $27.80 avg. savings PMPY • $635.9M projected savings in 10 years Value in Ad Equivalency of $10,150,195 (2015-2020) • 5.3B total reach • 100% positive or neutral coverage • 6,824 mentions • 4 million total social media impressions Grant Value of $14,590,385 over 4.5 years: • $13,132,691 TIGER Grant Collier County • $907,694 Safe Routes to School • $200,000 MPO Grant Bonita Springs • $250,000 Terry Street Project Bonita Springs • In addition, helped support purchase of Edison Farms, a 4,000 acre preserve in Estero and the Gore property in Golden Estates which put 180 in preservation for trails and passive recreation (Letter of Support, Proof of Community Collaboration). $100,000 to establish and sustain the first SWFL Food Policy Council. Total SWFL Value 2015-2019: • $40.3M Community Well-Being Value • $10.1M Media Value/Ad Equivalency • $14.5M Grant Value • $64.9M Total Value • 5.0 ROI NCH Healthcare System (3 years) • A 4.9 point jump in overall well-being among employees • 54% decrease in healthcare expenditures over six years • $27 million reduction in self-insured medical claims • Nearly 60% of all employees pledged participation • 40% decline in lost work days due to injury 76 Item 6. Confidential. ©2021 Blue Zones, LLC. All Rights Reserved.Page 5 After launching Blue Zones Project, Spencer, Iowa saw: 11% improvement in fruit and vegetable consumption Workers’ healthcare claims reduced by 20% Metabolic syndrome risk factors fell from 43% to 13% at the Spencer Hospital From 2010-2015, according to the Gallup-Healthways Well-Being Index, Iowa outpaced the nation in overall well-being, improving twice the rate of the national average Spencer, Iowa • More than 50% of community believes Blue Zones Project helped create a positive impact. • 84 Iowa communities submitted interest, an elite 15 were chosen. • 520,000 lives impacted by environmental changes designed to help people move naturally, eat wisely, develop the right outlook, and connect with others. • 430,000+ actions taken by individuals to improve well-being for themselves, their families, and friends. • 610 worksites, schools, grocery stores, and restaurants achieved Blue Zones Project designation. • 180,245 total feet of bike lanes, trails, and sidewalks built to encourage people to move naturally. • 142 Walking School Bus routes created to encourage students to move naturally. • All 15 communities passed new Complete Streets policies to enable safe access for all users. • In 2014, more than 25% of elementary students in Spencer, Iowa moved naturally to and from school. • 60% of Spencer, Iowa’s public schools are Blue Zone Schools and 67% of its grocery stores are Blue Zones Grocery Stores. Media Valuation: • Media mentions at $6,970,397 advertising equivalency • 3.6B total reach • 99% positive or neutral coverage • 4,222 mentions Local officials engaged Blue Zones Project because their childhood obesity levels were higher than the national average (pre-2010). Stress levels were high, particularly in affluent Manhattan Beach, measuring the same as New Orleans post-Katrina, or in Detroit. At higher than the national average, significant daily stress was an important unhealthy indicator in the Beach Cities. These three beach cities in Southern California continue to show dramatic improvements since launching with Blue Zones Project in 2010. Obesity and Overweight Rates: 15% drop in obese and overweight adults (between 2010-2017). At 12.1%, the rate of obesity in the Beach Cities is less than half of the U.S. rate of 28.1% – meaning just one in eight Beach Cities residents are obese compared to one in four Americans nationally. 68% reduction in childhood obesity from 2007 to 2019 at Redondo Beach K-5 schools. The number of Beach Cities residents who are above normal weight (obese or overweight) fell from 60 to 50.8% In contrast, 63.7% of U.S. adults and 58.7% of Californians are above normal weight. Smoking Rates: 36% drop in smoking (between 2010-2017). The smoking rate in the Beach Cities fell to just 8.9% of residents – a rate significantly lower than the U.S. (18.8%) and California (13.7%). Exercise: Now, 65.8% of Beach Cities residents report exercising at least 30 minutes a day, three days a week—a 9% increase since 2010—compared to just 53.2% of adults nationally and 57.7% statewide. Overall Well-Being Score: The Beach Cities collectively earned the highest 2015 Well-Being Index score (65.9) in the U.S., outpacing all 190 metropolitan areas measured. Individually, Manhattan Beach (68), Hermosa Beach (67) and Redondo Beach (64.8) placed first, second and fifth in the U.S. respectively. Beach Cities, California 68% drop in childhood obesity rates at Redondo Beach K-5 schools 15% drop in adult obesity and overweight rates 36% drop in smoking 10% drop in significant daily stress since 2010 77 Item 6. Confidential. ©2021 Blue Zones, LLC. All Rights Reserved.Page 6 Creating Value for Beach Cities: Since the inception of Blue Zones Project in 2010, improvements in community well-being are valued at: • Savings of $21M in direct medical expenses • Reductions in projected lost productivity of $21M • A cumulative total of $42M in value • $341 average annual per capita value Based on trends over the past 5 years, we project the total value of well-being improvement by 2020 to be: • Savings of $74M in direct medical expenses • Reductions in projected lost productivity of $51M • A cumulative total of $125M in value • $1,011 average annual per capita value Albert Lea, Minnesota $7.5M in savings in annual healthcare costs for employers 2.9 years added to lifespans within one year of participating in the Blue Zones Project The Downtown Streetscape revitalization has increased private investment, tourism, and the tax base Suffering in the face of the 2008 economic downturn, Albert Lea, Minnesota, was determined to transform its situation. Its leaders eagerly teamed up with Blue Zones in 2009, making Albert Lea the first Blue Zones Pilot Project, applying principles from areas around the world where people lived longer, healthier lives. Pleased with the results of the nine month pilot, Albert Lea has continued on as a Blue Zones Project community addressing built environment, tobacco policy, citizen engagement, and bringing back the downtown. The commitment to well-being has resulted in numerous measurable impacts for Albert Lea leading incremental changes and sparking chain reactions. Impacts such as: • $8.6 million—savings in annual health care costs for employers as a result of a decline in smokers. • 34th place—in the Minnesota County Health Rankings (up from 68 out of 87 counties). • 2.9 years—added to lifespans (projected) within one year of participating in the Blue Zones Project. When Blue Zones and Blue Zones Project began working with Albert Lea in 2009 to transform its policies, places, and people, the focus was on helping people move naturally, eat wisely, connect, and have the right outlook—all of which can lead to living longer, better. To make transformation a reality, city leaders and the Blue Zones Project identified key opportunities for impact and sought pledges from businesses and residents. Community Design Improvements In 2009, Blue Zones’ expert Dan Burden led a walking audit of Albert Lea, identifying ways to create more active and healthy living environments centered around people. A Bike and Pedestrian Master Plan was created that identified areas needing improvement to align with the Complete Streets Policy, which Albert Lea was an early adopter of in 2009. Armed with inspiration and grant money, Albert Lea created bump outs to ensure safe pedestrian crossings and wider sidewalks that provided space for outdoor dining. A five-mile route that was added around a lake within the city was affectionately named the Blue Zones Walkway by Albert Lea, and it now connects to neighborhoods, parks, downtown and past the local hospital. Stop signs were replaced with traffic lights to maintain a smooth traffic flow. Community message boards were added, and a complete park renovation with amphitheater seating provided additional community gathering space. The improvements sparked a chain reaction of economic development. New businesses relocated to downtown Albert Lea, and the city initiated a mixed-use project to open room for income-limited housing units and commercial space in the historic downtown area. Healthier Workplaces Blue Zones Project offered local businesses the opportunity to become a designated Blue Zones Worksite® by completing an assessment and improvements to increase the long-term well-being of employees, customers, or students. The simple changes were designed to provide lasting benefits to people’s physical health, emotional health and social relationships. More than 45 worksites have registered with Blue Zones Project and made varying levels of change, the City of Albert Lea being one. Blue Zones Project also recommended worksite clinics for some of the larger employers in Albert Lea to increase well-being for employees and reduce healthcare costs. Five of the top 20 partnered together to provide their employees with a dedicated worksite clinic, serving approximately 1,650 employees. Two other area worksites also opened clinics. These efforts resulted in considerable savings. Healthy Foods To make healthy food the easy choice for everyone in the community, Blue Zones Project provided guidance on how to offer and bring attention to foods that are more nutritious and tasty. As a result, one of the local grocery stores implemented changes to its environment, selection of healthy options, and education and promotions to make healthier choices easier for customers. Grab-n-go breakfast and healthy snack cart programs were introduced in various public schools to help children create healthy habits, and they’ve been highly received by students, educators and parents. An indoor sports arena added healthier options to its concession stand and saw a bump in sales. And the City of Albert Lea has expanded the community garden space 150%, giving residents an opportunity to grow healthy food and socialize in an agricultural environment. Tobacco Cessation Starting in 2009, Blue Zones Project began working with the City of Albert Lea to drive policy and environmental changes for a measured reduction in tobacco usage.78 Item 6. Confidential. ©2021 Blue Zones, LLC. All Rights Reserved.Page 7 This included changes for public housing, public parks and events, outdoor dining, as well as partnering with local businesses. Out of 18,000 residents, 4,140 were smokers in 2010, and success had the potential of reducing health care costs by $6,000 per year, per smoker. Given the challenge of trying to implement this change and provide a new outlook toward this important public health issue, the city chose to make incremental moves over time, which have made a big impact. MEASURABLE IMPACTS THAT TRANSFORMED THE COMMUNITY The following progress indicators were reported by the City of Albert Lea in 2015, dating back to 2009 if the data was available. Impact of Community Design Improvements: • Added more than nine miles of new sidewalks and three miles of bike lanes. • More than a dozen businesses relocated to downtown Albert Lea. • Outdoor dining facilities created by three restaurants. • 96% increase in pedestrian traffic on Broadway from 2014 to 2018. • 38% average increase in biking and walking throughout the community since 2009. • Ranked above the national and state average for people feeling active and productive according to the July 2014 Gallup- Healthways Well Being Index®. • More than $2.5 million invested in downtown building permits since 2013. • 25% increase in property value in the downtown area. • Year-over-year increase in lodging taxes due to an increase in visitors. • $400,000 in revenue and a return of a $1.2 million property to taxable status expected from the mixed-use downtown development. Impact of Healthier Workplaces: • 300% increase in funds given to the City of Albert Lea by its insurance carrier for its wellness program in 2014, and medical premium increases avoided for city workers in 2014 and 2015. • $128,000 in health care costs saved by a Blue Zones Project worksite within a year of opening a worksite clinic for its 500 employees. • The School District experienced no increase in Health Care Premiums and an 11% decrease in prescription costs as a result of their on-site clinic from 2014-2015. Impact of Healthy Foods Initiative: • Increase sales of 130.35% from the Health Market, 12% from produce, 35.31% from frozen fruit and vegetables, 52.3% from water, and a decrease of 4.66% in soda sales at the Hy-Vee grocery store from 2009 through 2015. • 59% increase in concession sales from 2014 through 2018 at City Arena after healthy options were added. • 60% increase in breakfast participation from 2014 to 2015 in schools where the Grab-n-Go breakfast program was implemented. • 17% increased participation in the Healthy Snack Cart program in the 2014 – 2015 school year. Results of Tobacco Cessation Initiatives: • Tobacco use eliminated at 550 units of public housing, 14 of the top 20 worksites as well as select other businesses, public parks, county fairs, other outdoor events, and outdoor dining. • Decline in smokers from 23% of adult residents in 2009 to 14.7% in 2016. • $8.6 million savings in annual health care costs for Albert Lea employers from the decline in smokers. Additional impact: • 2.9 projected years added to participants’ lifespan within a year of participating in the Blue Zones Project. • $120,000 worth of media impact created from being featured in local and nationwide media, publications, and websites. • Jump to 34th place in the Minnesota County Health Rankings (previously 68 out of 87 counties). • Ranked third in “The top 10 most affordable small towns in the United States that you would actually want to live” by Realtor. com in the fall of 2015 (lakes, parks, walking paths and Blue Zones Project listed as “quality of life” indicators). 79 Item 6. Confidential. ©2021 Blue Zones, LLC. All Rights Reserved.Page 8 E M B A R G O E D Objectives: To determine whether employers who adopted Blue Zones Project® interventions had lower medical- claims costs or fewer patients for certain illnesses, and whether their employees had different health attitudes or behaviors, compared to employers who did not adopt any Blue Zones Project interventions. Study design: Retrospective observational cohort study using medical claims, eligibility, and Healthways Well- Being Assessment (WBA) and Gallup-Healthways Well-Being 5 (WB5) survey data from people receiving medical coverage from Hawaii Medical Services Association (HMSA) over a 48-month period from January 1, 2014, through December 31, 2017 (1,869,480-member months total). Five employers were included in the Blue Zones Project intervention group: Hale Koa, Roya Kona Resort, Castle Medical Center, HMSA, and Foodland. Six employers constituted the control group: Pinahou School, Zippy’s, Bank of Hawaii, Queens Medical Center, Costco, and Servco. Methods: Compared slopes of medical costs for selected illnesses from intervention employers to those of control employers. Costs were broken down into each target illness, and comparisons were calculated for each. Target illnesses include anxiety, coronary heart disease, depression, diabetes (Type 2), hypertension, lipoid metabolism, osteoarthritis, sleep apnea, and stroke. Frequency of the diagnosis was also calculated and compared between the intervention and control groups. Changes in health behaviors and attitudes were calculated from average responses to selected well-being survey questions, comparing the respondents’ first responses to their last during the time period. Results: The intervention group had lower medical-claims costs than the control group before Blue Zones Project interventions were adopted, and these costs became even lower over the four-year period of this study. At the twelfth month, the intervention group’s weighted per-member, per-month (PMPM) cost was $29.17, representing 83 percent of the control group’s per-member, per-month cost of $35.06. By the fourth year, the intervention group’s PMPM cost was $40.59, which was 62 percent of the control group’s PMPM cost of $64.96. Frequency of the target illnesses was also slightly lower in the intervention group before Blue Zones Project interventions were adopted. However, the intervention group’s frequency diverged further from the control group’s from month 18 onwards. The difference became statistically significant in month 22, then grew until month 30, after which has remained steady (for the final 18 months). Well-being survey respondents from the intervention group showed improvement in four out of five survey questions analyzed: life evaluation; two self-assessment questions about physical health; and produce consumption. Both control and intervention group respondents slightly worsened on getting adequate exercise, but the decline in the intervention group was less than in the control group. Conclusions: The intervention group’s trends in costs and frequency of selected illnesses were lower than the control’s at the outset and became even lower during the 48-month time period. The intervention group would have had higher costs and more patients in Year Four if its performance compared to the control group had remained steady; instead, its performance improved, contributing to an estimated savings of $1.8 million. The intervention group also had improvement (or less deterioration) in relevant health attitudes and behaviors compared to the control group. Analysis of Employer Medical Claims and Well-Being in Hawaii: A Comparison between Certified Blue Zones Worksites and Blue Zones Project Approved Worksites and a Control Group Health Economy, LLC | February 2019 80 Item 6. POWERED BY: Copyright ©2023 Blue Zones,LLC and Sharecare,Inc.All rights reserved. Blue Zones Project® Bakersfield is a community well-being initiative. Our goal is to make healthier choices easier for everyone throughout our community. BUILDING A HEALTHIER BAKERSFIELD BAKERSFIELD’S LIFESTYLE CHALLENGES ADOPTED The Bakersfield City Council passed a Tobacco Retailer’s Licensing ordinance. An effort that took nearly 20 years, this ordinance will decrease the number of youth that can buy tobacco and save lives. SOCIAL IMPACT The Pedestrian Safety Campaign video had over 15,000 views. POLICY ENGAGEMENT Over 500 people attended the Active Transportation Summit and Festival at Mill Creek Park. POLICY WINS SAFER STREETS Bakersfield now has a Complete Streets ordinance, after the city council passed it on November 29. Local streets will now be required to be designed, constructed and operated to be safe and accessible for pedestrians, bicyclists and motorists. In just one year, our team has ignited a grassroots community well-being initiative to transform the places where people spend the most time to measurably improve our community’s resilience and economic vitality. We’ve engaged stakeholders and community members and hosted focus groups and policy summits to discover our community’s priorities. We’ve convened sector committees in our focus of People, Places, and Policy. We’ve assembled a steering committee, which includes community leaders from various sectors, to help guide the work and open doors for the project’s success. With the support of our sponsors and partners, we have made great strides to move the needle in community well-being and look forward to future opportunities to help support everyone in Bakersfield live longer, better. 81 Item 6. POWERED BY: Copyright ©2023 Blue Zones,LLC and Sharecare,Inc.All rights reserved. COMMUNITY ENGAGEMENT PEOPLE WINS SCHOOLS Approximately 3,500 local students participated in BZP activities, like riding our smoothie bike, at events at several schools across Bakersfield. PLACES WINS Over 4,600 employees at local businesses now have access to well-being programs and initiatives at their workplace. MEGA SALES After its approval celebration in July, Radio Sandwich reported its sales skyrocketed in August: Total sandwich sales up 144.46% Vegan sandwich sales up 171.43% Online ordering up 112.35%, and Net sales up 128.12%. RESTAURANTS With six Blue Zones Inspired dishes, approved restaurant Modern Grub estimates their sales have increased by 25% since their celebration in July. WORKSITES 4500 4000 3500 3000 2500 2000 1500 1000 500 June July Aug Sept Oct Nov Dec As of December 2023, more than 4,100 individuals over the age of 15 have engaged with Blue Zones Project through various events, including Purpose Workshops, Walking Moais and cooking demos. SOCIAL MEDIA By creating and posting content that shares the BZP story and relevant BZP-related topics, our Instagram page has consistently grown by 100+ followers each month. WELLNESS WEDNESDAY A partnership with Adventist Health and KGET-TV 17 put our Wellness Wednesday cooking segments in front of more than 12,000 local households each week on KGET and Telemundo. 82 Item 6. • ROOTED in decades of Blue Zones work identifying and researching the healthiest, longest-lived people on earth • INFORMED by Blue Zones experience applying that research to hundreds of organizations and employers and 70+ American cities • BUILT on the Power 9, the lifestyle habits of the world’s longest-lived people • DESIGNED as a sustainable plan for eating wisely, moving naturally, and connecting more with others and your purpose Empowering everyone, everywhere to live better, longer • Blue Zones City Projects • Employer and Campus Certification • Blue Zones Challenge™ Solutions • Policy Services • Life Radius™ Model • Blue Zones at the Miami World Center • Blue Zones Online Cooking Courses • Blue Zones Challenge App • Senior Living Certification • Blue Zones Kitchen™ • Blue Zones Retreats • Bestselling Books • Groundbreaking Research • Upcoming Blue Zones Documentary • Blue Zones Speakers Bureau • Global Brand Recognition and Continuous Media Coverage BLUE ZONES OVERVIEW TRANSFORMATIONS LIFESTYLE BRANDS CONSUMER ENGAGEMENTS BLUE ZONES PROJECT RESULTS Albert Lea, Minnesota saved $7.5M in annual healthcare costs for employers After launching Blue Zones Project, Spencer, Iowa saw 11% improvement in fruit and vegetable consumption and workers’ healthcare claims reduced by 20% Fort Worth moved from 185th to 31st in nation for healthiest city rankings since launch of Blue Zones Project Fort Worth Blue Zones Project Beach Cities saw savings of $21M in direct medical expenses since inception in 2010 NCH Healthcare System saw a 4.9 jump in overall well-being among employees and 40% decline in lost work days due to injury NCH Healthcare System in Florida showed a 54% decrease in self-insured healthcare claims, saving $27 million over 4 years What is Blue Zones? Blue Zones, LLC has evolved from 25 years of research and discovery into the leading solution for transforming individuals, employers, and whole cities for measurably improved well-being. The pandemic has accelerated the poignancy and demand for our portfolio of well-being solutions and today we are diversified into a growing number of industry verticals with an expanded portfolio of products and solutions. All with the same value proposition and promise to help everyone, everywhere live better, longer. The Blue Zones Challenge App An evidence-based solution for a better, happier, less-stressed life. ©2022 Blue Zones, LLC. All Rights Reserved. 83 Item 6. “[Investing in Blue Zones is] about living up to our mission: to improve the health of the people in the communities we serve. We asked ourselves, are we doing that? We’re a great acute care hospital system, but we weren’t necessarily improving the health of the community.” BARCLAY BERDAN CEO, TEXAS HEALTH RESOURCES “During Phase I of the Southwest Florida Blue Zones Project, awareness reached 44% in our city and 33% in our region. Considering the substantial number of messages that are competing for the attention of the residents and visitors in our area, these levels of awareness are excellent and have provided an added bonus of positive goodwill toward our healthcare system within Southwest Florida.” DEBBIE CURRY DIRECTOR OF MARKETING AND PUBLIC RELATIONS, NCH HEALTHCARE SYSTEM “Through the community health needs assessment, BDCH was able to see exactly what issues faced our service area and how we might best approach these issues in order to achieve our goal of making Dodge County the healthiest in the state. The direct result of the development and analysis of these community health assessments is the very exciting Blue Zones Project.” KIM MILLER, FACHE PRESIDENT & CEO, BEAVER DAM COMMUNITY HOSPITALS, INC. “We believe in leading by example. Our employees have embraced Blue Zones Project concepts. They understand the value of taking an interest in their own health and well-being. And they’re experiencing first-hand what it means to make the healthy choice the easy choice. Now that we’ve earned our designation, we want to encourage other companies to do the same.” MICHAEL A. GOLD FORMER PRESIDENT AND CEO, HMSA MARKET PENETRATION, GLOBAL BRAND RECOGNITION, AND CONTINUOUS MEDIA COVERAGE Blue Zones is recognized as the global leader in using anthropological research and data-driven results to help people get the most of their lives and years. What’s Next? Blue Zones Partners Our Impact • 3 new Blue Zones books from founder Dan Buettner • Blue Zones documentary will be released on Netflix in Q2 2023 • 2 special editions of National Geographic • 11 new Blue Zones Project Communities will launch in 2023 • 2 new distribution partnerships into new industry verticals • Blue Zones Challenge app launching with major insurer ©2022 Blue Zones, LLC. All Rights Reserved. communities across the United States are experiencing the Blue Zones Project effect71 84 Item 6.