►
From YouTube: June 26, 2017 Ways & Means
Description
Minneapolis Ways & Means Committee Meeting
A
B
A
A
quorum
of
the
committee,
councilmember
bender
is
not
able
to
join
us
today,
she's
attending
to
some
city
business
out
of
out
of
the
city.
So
let's
see
what
we've
got
on
the
agenda
today,
I
know
we
have
two
presentations
for
discussion
items
towards
the
end
of
the
remaining
27
items.
I'll
just
read
through
them
really
quickly.
If
we
could
first
is
the
appointments
for
Minneapolis
telecommunications
network
board,
finance
and
property
services
brings
forward
three
items:
the
real
estate
exchange
term-sheet.
These
are
some
amendments
to
the
downtown
office.
A
Consolidation
project,
as
well
as
the
contract
met
with
Perkins
and
will
and
a
contract
with
Walker
parking
consultants
for
consulting
services.
For
the
demolition
of
the
parking
structure.
Information
technology
department
brings
forward
a
contract
with
environmental
serve
systems,
Research
Institute.
This
is
for
mapping
and
analyzing
assets.
This
is
a
software
program.
We
also
have
an
RFP
for
computer,
assisted
mass
appraisal
system
and
that's
replacing
that
system.
The
executive
committee
brings
forward
the
appointed
position
in
the
health
departments
called
the
director
of
environmental
programs.
A
Community
Planning,
Community,
Development
regulatory
Services
Committee
brings
forward
contracts
with
gimmick
and
build
wealth.
Minnesota
provides
some
lending
services
for
homeownership
opportunity.
Minneapolis
program
I
also
have
a
bid
for
removal
of
hazardous
trees
and
stumps.
The
health
environment
and
community
engagement
committee
brings
forward
a
grant
with
from
clearway
Minnesota
to
create
a
smoke-free
generation
as
well
as
a
memorandum
of
understanding
with
a
line
of
health
systems
and
an
agreement
with
Xcel
Energy
to
participate
renewable
connect
program.
A
The
public
safety,
civil
right
and
emergency
management
committee
brings
forward
the
2017
urban
Scholars
program,
funding
from
various
partner
organizations,
as
well
as
a
contract
with
business
watch,
International
for
police,
automated
properties
system
services
and
a
contract
amendment
with
Minneapolis
Police
Department
SWAT
officers
at
u.s.
Bank
Stadium.
A
We
also
have
a
contract
with
University
of
Minnesota
veterinary
medical
center
for
police,
canine
health
services,
transportation
and
public
works
committee
brings
for
a
number
of
items,
including
agreement
with
Metropolitan
Council
for
a
fifth
street
light
rail
corridor
signal
improvements,
as
well
as
an
agreement
with
Minnesota
Department
of
Transportation
for
traffic
signal
design
services.
That's
associated
with
the
35w
transit
access
project.
C
A
As
well
as
a
bid
for
installation
of
large
diameter
cured
in-place
pipe
and
the
final
two
items
are
going
to
be
on
discussion,
it's
the
reopening
of
the
Nicollet
Avenue
and
Lake
Street
project
and
a
response
to
a
staff
direction
from
the
budget
cycle
last
on
on
our
banking
services
program.
So
we'll
take
up
those
two
items
in
a
moment
and
if
there's
any
questions
on
the
previous
consent
agenda
items
not
seeing
any
I'll
move
all
those
all
those
in
favor,
please
signify
by
saying
aye
aye
opposed
those
items
all
carry.
A
D
Thank
you
very
much
mr.
chair
committee,
members,
council
member,
as
most
of
you
know,
the
city
has
been
working
for
years
on
this
effort
to
reopen
Nicollet
Avenue
at
Lake
Street
for
the
past
18
months
after
receiving
authorization
from
Council
to
have
an
option
on
this
piece
of
property
and
spend
$800,000
towards
that
option.
Price
of
8
million
dollars.
We
have
been
negotiating
with
Sears
Kmart
to
see
if
there
was
a
deal
to
be
made
with
them.
D
The
good
news,
I
suppose,
is
there's
clarity
and
there's
not
a
deal
to
be
made
at
this
time
with
Sears
Kmart.
That's
the
bad
news.
The
good
news
is
there's.
Clarity
and
staff
is
recommending
that
we
proceed
to
exercise.
Our
option
spend
an
additional
7.2
million
dollars.
We're
also
asking
for
a
hundred
thousand
dollars
of
authority
for
some
closing
costs
and
acquire
that
property.
D
That
would
happen
yet
this
year
and
then
we
would
continue
to
work
with
Sears
Kmart,
then
as
our
tenant
as
the
city's
tenant
and
keep
the
surrounding
community
involved,
as
we
have
been
with
what
will
happen
there
in
the
future
and
make
sure
they
understand.
What's
going
on
the
funding
source
relevant
to
your
purview
here
today,
the
funding
source
that
we
are
suggesting
for
the
7.2
million
dollars
of
purchase
price
is
the
streetcar
value
capture
mechanism.
D
That
mechanism
has
collected
seven
point:
seven
million
dollars
to
date,
since
the
city
council
put
it
in
place
and
we
expect
to
collect
an
additional
seven
million
dollars
yet
this
year
and
more
into
the
future.
So
CDRs
committee
concurred
with
staffer
nation
last
week,
we're
here
today
to
inform
you
of
this
seeker
approval
for
this
funding
source
and
then
with
after
answering
any
questions,
seek
counsel
approval
to
exercise
the
option
and
become
the
landowner
of
this
piece
of
property.
Yet
this
year
and
mr.
chair
I'm,
available
for
questions,
as
you
earth
committee
wishes
sure.
A
Thank
you
very
much
I'm
a
spring.
Obviously
this
is
a
topic
of
great
significance,
which
is
why
we've
brought
it
forward
to
have
just
a
little
touch
point
here
in
this
committee.
You
outlined
the
funding
source
and
the
amount,
as
that
was
the
negotiated
prices
in
the
when
we
took
that
action
up.
Was
it
one
year
ago,
two
years
ago,
mr.
A
Right
so
things
continue
to
progress,
but
having
ownership
does
kind
of
prevent
that
or
provide
that
stability
in
the
process
so
I'm
very
pleased
to
have
it.
I
just
wanted
to
make
sure
we're
talking
about
the
funding
source.
I
think
you
outlined
what
the
value
capture
district
is
and
what
it,
what
it's
performing
at
and
current
levels,
I
think
maintaining.
That
instrument
is
the
most
important
aspect
of
the
streetcar
project
going
forward.
If
you
care
to
just
elaborate
as
a
as
the
state
legislature
and
everything
provides.
D
A
D
Structure
sure
mr.
chair
committee,
members,
the
streetcar
value
capture
mechanism
that
the
legislature
enabled
in
the
session
preceding
the
council's
action,
to
put
it
in
place
allowed
for
a
very
narrow
range
of
uses
for
the
money
that
we
have
been
collecting
among
those
uses
is
acquisition
of
right-of-way
for
the
streetcar
project,
which
is
why
staff
recommends
using
it
in
this
case
and
just
in
this
case
to
acquire
this
piece
of
property,
which
is
of
course,
the
right
of
way
where
Nicollet
will
be
in
the
future.
You
touch
done
at
mr.
D
chair,
so
I'll
just
go
into
a
little
bit
more
detail.
The
value
capture
mechanism
takes
the
property
taxes
collected
from
five
blocks
along
Nicollet
central
streetcar
line
and
makes
them
available
in
a
fund
to
spend
on
eligible
costs,
and
I
mentioned
that
one
of
those
eligible
cost
is
land
acquisition
for
streetcar
right-of-way.
So
that's
one
of
the
things
we
can
do
it.
A
When,
when
the
previous
committee
took
this
topic
up,
there
was
also
a
staff
direction
attached
to
it.
Councilmember
Ryker
brought
it
forward,
he's
really
important,
I
think,
especially
from
Ways
and
Means
perspective,
is
to
find
out
the
original
source
of
the
money
when
we
go
and
want
to
memorialize
those
sources,
and
we
want
to
recover
those
in
future
sales.
Could
you
outline
that
real
quickly.
D
Absolutely
mr.
chair,
so
at
CDRs
committee
there
were
several
staff
directions.
One
of
them
was
from
councilmember
Reich,
who
said
and
I'm
paraphrasing
here
at
such
time
in
the
future,
as
the
city
has
complete
control
of
the
site
in
the
absence
of
the
Kmart
lease,
and
we
have
the
right-of-way
available
to
us
to
to
construct
Nicollet,
the
remainder
of
the
property
will
be
sold
for
development
after
some
community
engagement
about
what
are
the
goals
and
objectives
there,
and
as
such
time
as
we
make,
we
sell
those
properties.
The
land
sales
proceeds
will
be
redeposited.
A
Wanted
to
memorialize
that
we've
had
that
free
listener.
You
remember
councilmember
Palmisano,
we
sold
a
Public
Works
facility
and
where
that
money
goes,
does
it
go
back
into
the
general
fund?
Does
it
go
into
a
development
account?
That
was
always
the
question
we
had.
Some
forensic
accounting
had
to
find
out
where
that
originally
went
and
that
we
made
sure
it
stayed
in
that
original
source
so
putting
that
staff
direction
in
assures
that
we
don't
have
this
argument
in
twenty
thirty
years,
where
that
money
goes
back
to
or
scores
earlier
mr.
A
chor
much
sooner,
if
we
hope
thank
you.
Are
there
other
questions
or
comments
on
this
particular
project
or
item,
not
seeing
any?
Thank
you
very
much.
Mr.
plank
you'd
like
to
go
ahead
and
move
approval
of
discussion.
Item
number
28
on
the
agenda.
Any
questions
not
seeing
any
all
those
in
favor,
please
signify
by
saying
aye,
aye
and.
E
A
C
C
Our
money
is
very
important
and
councilmember
Cano
who's
with
us
today,
as
well
as
councilmember
Gordon,
broad
port,
the
staff
direction
in
December,
which
asked
us
to
look
at
our
banking
practices
in
light
of
a
couple
of
social
issues,
specifically
the
fossil
fuel
industry
and
the
Dakota
access
pipeline,
as
well
as
looking
at
a
municipal
bank
operation,
and
so
we
have
taken
this
discussion
and
use
this
as
an
opportunity
to
broaden.
Then
this
perspective
of
what
is
really
thanking
services
within
the
context
of
the
city
of
Minneapolis.
C
C
Those
are
things
like
doing
payroll
but,
more
importantly,
we
borrow
money.
We
also
lend
money
we
have
as
a
regular
process
for
all
of
our
contracts
request
for
proposal
or
what
we
refer
to
as
in
this
document,
an
RFP
process
and
in
the
past,
when
it
comes
to
banking,
we've
been
concerned
about
several
things,
one
of
them
being,
and
this
is
a
big
issue
in
the
last
of
years,
data
security.
C
We
also
obviously
want
to
choose
a
vendor,
who
is
the
lowest
cost,
but
just,
as
importantly,
I
think,
it's
also
the
breadth
of
services
that
we
are
able
to
utilize
from
a
vendor
as
well
as
are
they
available
locally?
There's
always
issues,
even
though
this
is
an
electronic
world
of
having
access
to
people.
It's
important
to
note
I
think
that
for
many
of
us
we
think
of
banks
is
just
being
plug
and
play
and
by
what
I
buy
that
I'd
mean
that
we
can
take
one
bank.
C
They
can
do
the
exact
services
at
another
bank,
and
so
we
have
a
wide
variety
of
choices.
I
would
submit
to
you
that
that
is
not
the
case
in
today's
world.
There
are
many
banks
who
are
better
at
some
services
than
other
banks,
and
that's
the
advantage
of
our
RFP
processes
to
be
able
to
identify
what
those
strengths
and
weaknesses
are
and
make
the
best
choice
of
the
city
menu.
C
It's
also
fair
to
say
that
banking
evolves.
We
are
first
of
all,
I
would
say:
Minneapolis
has
become
a
high-maintenance
client.
We
are
a
very
complex
organization
and
at
the
same
time,
banks
evolve
and
it's
very
common
to
have
acquisitions
I
use.
An
example
is
that
we
we
had
in
our
investment
for
investment
portfolio,
an
investment
manager
who
was
a
women-owned
business
and
they
were
acquired
by
a
larger
like
a
larger.
C
That
larger
need
from
the
investments
right
now.
Technology
certainly
has
played
a
role
in
terms
of
the
banking
world.
It's
reduced
our
costs.
We
are,
we
probably
have
a
million
dollars
less
and
staff
cost
than
we
did
eight
years
ago,
just
for
processing
our
regular
transactions,
so
that
that
is
going
to
benefit
to
us,
but
it
also
causes
increased
expectations
in
terms
of
how
quickly
we
can
resolve
issues
with
some
of
our
customers.
The
last
thing,
I
would
say
just
about
the
some
of
the
social
issues
around
banking
that's
evolved,
and
this
is
nothing
new.
C
You
know.
Certainly
you
go
back
a
long
time.
We
look
back
in
early
1900s
and
large
banks
were
concerned
in
the
early
1900s,
and
if
those
you
who
maybe
like
me,
had
a
lot
of
history
classes
over
the
years
learned
about
people
like
William,
Jennings,
Bryan
and
others
who
were
very
much
instrumental
in
some
of
the
progressive
movement
in
the
early
1900's.
C
Some
of
those
changes
that
occurred
in
1930s
because
of
bank
failures.
1980S
we
had
small,
family-owned
farms
that
were
in
crisis,
and
banking
issues
were
clearly
a
part
of
that
as
well
and
then
the
mid
2000s
late
2000s
in
terms
of
housing
crisis.
So
you
know
those
issues
continue
to
evolve
over
a
period
of
time.
Certainly
the
city
did
address
this
in
a
few
years
ago,
in
2013
for
the
responsible
banking
ordinance
and
we're
going
to
talk
a
little
bit
about
that
at
the
end
of
this
presentation.
C
So,
let's
just
again
broaden
that
the
perspective
of
when
we
talked
about
banking
relationships
and
set
some
of
the
states
for
this
particular
discussion.
What
did
we
do
specifically
in
the
last
six
months?
Well,
we've
learned
from
a
fair
number
of
other
cities,
so
you're
saying
all
right
now
is
in
a
regular
cycle
of
a
five-year
RFP
process,
and
we've
been
talking
with
the
staff
there.
C
The
other
part
of
this
is
working
with
the
city
attorney
and
just
talking
about
what
state
law
boundaries
do
we
have
and
from
a
legal
perspective,
how
is
a
city
really
different
as
then
a
consumer
or
even
a
regulator
and
I
think
this
is
part
of
the
uncertainty
in
this
conversation.
So
I
look
at
it
from
the
perspective
that
I
as
an
individual
can
be
very
arbitrary.
C
In
my
decisions
as
a
consumer,
I
can
choose
places,
I
want
to
visit,
use
what
firms
I
want
to
use
or
not
use,
and
you
know
that
that
arbitrary
approach
is
very
easy
for
me,
as
a
consumer
to
adopt
as
a
city.
We
don't
have
that
same
flexibility.
We
have
some
boundaries
that
we
have
to
live
within
state
law
within
what
case
law
is
for
for
cities
as
well.
C
I
think
that
you
know
sometimes
it's.
It's
also
important
that
we'll
talk
a
little
bit
later
about
this
2015
US
District
Court
case
is
that
on
one
hand
we
have
cities
who
what
appears
to
be
more
arbitrary
across
the
country,
saying
we're
not
going
to
use
this
particular
Bank
anymore
because
of
reason,
XY
and
Z.
But
there
is
another
side
of
this.
Then
I
think
it's
important
for
the
public
to
be
aware
that
there
has
been
some
pushback
from
banks
and
different
parts
of
the
country.
C
So
in
2015
the
New
York
Bankers
Association
did
sue
the
city
of
New
York
City
over
their
equivalent
of
a
responsible
banking
ordinance.
They
call
it
responsible
banking
act.
It
was
broader
than
our
responsible
banking
ordinance,
but
they
did
take
that
the
US
District
Court
and
Bankers
Association
one,
in
other
words
throughout
the
cities,
responsible,
banking
ordinance.
So
again
there
are
boundary,
it's
not
to
say
that
was
right
or
wrong.
C
E
C
Regulator
when
it
comes
to
things
like
liquor
stores
and
when
they
can
be
open
and
closed,
ok,
we
are
not
by
at
least
I
understand
it
by
law,
able
to
punish
financial
institutions
arbitrarily
okay,
and
even
we
can't
do
it
for
liquor
stores,
because
we
have
final
set
of
guidelines,
and
so
we
have
to
keep
that
in
mind
when
we
look
at
how
we
behave
as
a
city
and
how
we
set
the
stage
for
whatever
particular
actions
we
want
to
take
again.
This
is
not
trying
to
take
away
any
power
from
the
city.
C
It's
just
to
say
that
part
of
our
job
as
staff
is
to
acknowledge
that
there
are
places
where
it's
riskier
for
the
city
to
venture
when
there
are
opportunities
for
legal
action,
and
you
know
what
I
would
say,
it
is
also
an
explanation
of
the
public
in
terms
of
how
we
can
be
the
most
effective
as
a
city
of
trying
to
accomplish
our
goals
and
I'll
talk
about
that
a
little
bit
later.
In
particular,
the
last
issue
is
just
forecasting.
If,
then,
all
right.
C
So
if
we
are
to
take
a
particular
action,
what
does
that
mean?
For
us
economically,
and
one
of
the
things
that
it
means
is
generally,
is
that
we
exclude
certain
partners
within
banking.
It's
likely
then,
to
constrict
the
number
of
people
we
can
work
with,
and
there
are
costs
associated
with
that.
There
are
also
costs
in
the
fact
that
we
have
a
whole
lot
of
customer.
C
What
are
their
utility
payers
or
tax
payers
we're
relying
on
us
and
interface
with
us
through
the
banking
world,
and
so
what
is
the
measure
of
inconvenience,
and/or
confusion
for
those
customers,
because
it
is
a
big
deal
to
change
some
of
these
banking
relationships
in
today's
world.
Given
how
tied
we
are,
especially
through
IT
improvements.
So
that's
a
general
background
definitions
of
banking
and,
more
specifically,
what
are
the
areas
we're
going
to
cover
today?
Number
one
is
depository.
Banking,
two
is
investments
and
related
services.
Three
is
debt
issuance
fours
their
credit
card
processing?
A
Me
mr.
Roth
sure,
before
we
go
into
the
meat
of
this
I,
appreciate
the
outline
and
the
definitions
that
you
just
provided.
I
just
want
to
make
sure
everybody
was
acknowledge
that
we've
been
joined
by
councilmembers,
Gordon
and
Connell.
So
thanks
for
joining
this
and
as
we
get
to
these
sections,
would
you
prefer,
if
there's
any
questions
at
the
end
of
each
of
these
sections
or
if
you
want
to
wait
for
a
longer?
It's
up
to
you,
of
course,
but
you.
C
A
C
Right,
so
the
city's
depository
banking
account
this.
This
is
really
our
checking
account.
This
is
where
money
comes
in
and
moves
out.
It
doesn't
stay
very
long
in
this
account
just
like,
hopefully,
most
of
us,
who
have
a
checking
account
or
earning
a
very,
very
much
an
interest
on
these
types
of
the
council.
We
try
not
to
keep
that
money
there
a
long
time,
but
it's
really
the
critical
area
of
how
the
money
moves
and
I
did
hand
out
a
chart.
C
That
I
think
helps
at
least
explain
why
we're
a
high
maintenance,
client,
and
certainly
you
if
it
wants
to
go
up
on
the
board,
we
could
put
up
on
the
board
as
well,
but
this
is
just
a
chart
that
explains
the
complexity
of
money
coming
in,
because
it's
not
just
about
the
city
itself.
We
also
involved
a
part
order,
also
in
this
laughs.
This
is
a
chart
from
our
last
request
for
proposals
for
banking
services.
I
know
attempt
to
explain
to
vendors,
then
how
the
money
comes
in
and
moves
out.
We
have
lock
boxes.
C
We
have
a
variety
of
very
technical
uses
of
money,
a
CHS
which
is
a
automatic
cash
withdrawal
that
we
use
on
a
regular
basis.
So
this
document,
which
was
put
together
by
Larry,
Parker
and
larrya's
our
banking
managers
with
us
today.
So
certainly
if
there
are
any
questions
about
how
we
move
money
through
our
system
Larry's,
the
expert
is
very
able
very
capable
has
been
with
the
city
for
a
number
of
years.
I
rely
on
him
heavily,
so
that's
just
to
give
you
a
little
sense
of
banking
relationship
that
we
had
internally.
C
We
did,
as
I
mentioned,
undertake
a
request
for
proposals
in
2014,
and
we
had
three
responses
that
was
US,
Bank,
Harris
and
Wells
Fargo
the
difference
in
fees.
Whilst
we
selected
Wells
Fargo,
there
were
70,000
dollars
lower
than
any
other
vendor,
and
in
fact
they
were
also
not
just
on
the
basis
of
fees,
but
also
on
the
basis
of
performance.
Rated.
The
top
firm
and
I
will
tell
you
that,
since
our
experience
in
the
RFP
process,
we've
not
been
disappointed
with
the
promises
that
Wells
Fargo
made.
They
have
been
very
good
to
work
with.
C
They
are
very
responsive
because
of
Larry's
many
inquiries,
and
he
can
tell
you
how
many
times,
often
times
per
day,
he's
talking
to
their
staff,
so
I
would
just
say
in
a
performance
basis.
Certainly
one
of
the
evaluations
is
and
one
of
the
reasons
we
have
a
shorter
three-year
period
and
then
two
longer
optional
periods
is
if
the
vendor
is
not
performing.
We
want
to
move
out
of
that
relationship
as
quickly
as
possible.
In
this
case,
the
vendor
is
performing
really
above
expectations.
C
Don't
expect
I,
don't
expect
anyone
to
read
this,
but
in
the
RFP
are
really
four
pages
of
delineated
transactions
that
we
have
as
a
city.
Just
because
it's
hard
to
introduce
humor
into
this
into
this
particular
presentation.
I
will
turn
your
attention
to
the
very
last
line
item
which
I
warned
Larry
o
is
going
to
bring
up.
We
do
have
to
deposited
checks
per
year
that
go
to
the
Cayman
Islands,
so
they
are
not
my
personal
checks.
They
are
not
I.
Don't
think
of
ter
Quincy?
C
C
One
particular
day
a
bank
has
to
put
collateral
equal
to
one
hundred
and
ten
percent
of
that
deposit.
So
if
that
bank
went
out
of
business,
money
would
be
on
hand
as
security
collateral,
basically
that
we
could
then
take
and
that
collateral
is
not
in
the
form
of
own
mortgages
or
anything
like
that
by
state
law.
It's
a
very
limited
set
of
instruments,
primarily
many
many
banks
use
Treasuries
US
Treasuries,
or
they
will
use
lines
of
credit
to
help
secure
that.
C
So,
just
as
an
example,
if
I
am
the
city
of
Minneapolis
and
I'm
moving
140
million
dollars
into
my
account,
because
that's
what
our
wire
transfer
from
the
county
is
going
to
be
for
our
property
tax
settlement,
I
may
have
that
money
in
our
account,
hopefully
only
for
a
few
hours,
but
it
might
be
for
a
few
days.
So
for
that
period
of
two
days,
the
vendor
needs
to
have
essentially
160
million
dollars
of
Treasuries
available
or
line
of
credit
available
for
two
days.
C
That's
a
very
arduous
task
for
a
small
bank
to
be
able
to
assemble
that
kind
of
credit
or
collateral
have
it
available
and
then
have
a
go
away
and
I
know
in
working
with
cities
and
certainly
Lori
Johnson.
Our
deputy
CFO
can
tell
you
from
personal
experience
even
for
smaller
cities.
This
can
be
a
struggle
with
things,
because
it's
just
a
lot
of
work
for
banks
to
have
to
gear
up
for
that
type
of
short-term
transactions.
I.
C
The
money
in
that
account
for
a
very
long
period,
so
that's
primarily
why
we
end
up
working
with
larger
banks,
is
both
this
collateralization
issue
and
then
also
just
the
complexity
of
the
transactions
that
we've
been
discussing.
Do
I
feel
good
about
the
fact
that
we
only
have
three
bidders
on
on
these
types
of
contracts.
No
I'd
love
to
see
a
great
deal
more.
C
Certainly,
we
could
try
to
attract
banks
from
across
the
country
for
this
type
of
work,
but
when
they
don't
have
a
local
branch,
it
makes
it
more
difficult
for
us
to
process
deposits
and
all
the
other
things
that
come
along
with
our
varied.
You
know
cash
and
checking
relationships
that
we
have
with
our
banks
so
and
again.
I
just
want
to
remark
that
if
we
change
depository
banks,
it
is
a
burden
upon
customers,
I
mean
they.
C
C
So
I
spent
a
little
more
than
time.
Then
then,
what
I
will
on
the
rest
of
these,
but
really
the
main
reason
is,
is
because
there's
a
lot
of
focus
on
the
depository
bank
when
you
certainly
have
heard
about
these
other
cities,
who
have
particular
worked
with
Wells
Fargo
and
it
said
we're
not
going
to
work
any
longer,
Seattle
being
one
of
them.
This
is
the
main
area,
and
you
hear
conversations
about
well,
it's
a
billion
dollars
of
transactions,
long
reality.
C
C
But
if
you
look
and
see
in
the
banking
commission
because
of
this
difficulty
in
changing,
they
actually
left
Wells
Fargo's
contract
in
place,
as
well
as
the
fact
that
Seattle
is
taking
over
a
year
to
transition
something
so
moving
on.
We
actually
pay
a
fair.
We
actually
pay
substantially
more
and
fees
for
another
service
and
that's
five
hundred
eighty
six
thousand
dollars
a
year
for
helping
us
invest
our
cash.
C
So
we
get
money
from
this
relationship.
The
money
we
get
is
investments
that
we
make
according
this
to
state
log,
and
what
we
can
invest
in
as
a
city
is
pretty
limited.
We
don't
invest
in
equities.
We
invest
in
Treasuries
mortgage-backed
securities,
very
plain
vanila
transactions.
For
the
most
part,
we
have
four
vendors.
We
did
an
RFP
in
2014.
This
is
an
area
where
there's
a
fair
amount
of
competitiveness.
We
had
19
responses
and
the
fee
spreads
were
over
$100,000.
In
other
words,
there
were
a
big
range
of
from
top
to
bottom.
C
How
much
people
would
charges
for
this
particular
service?
Really
three
of
the
vendors
pfm,
which
is
not
technically
a
bank.
It
is
a
is
a
corporation
but
Galliard
and
RBC,
which
is
a
Royal
Bank
of
Canada,
our
main
core
investment
managers,
and
then
we
have
advanced,
which
is
our
more
day-to-day,
with
variable
investments.
C
C
We
may
hold
of
another
jurisdiction,
we
move
it
all
the
money
electronically
and
we
have
to
have
a
custodian
for
that
relationship
again.
Wells
Fargo
is
our
custodian
for
those
for
those
particular
transactions.
It's
about
thirty,
eight
thousand
dollars
per
year
in
fees
and
that
contract
runs
the
same
term
as
our
depository
relationship.
We
are
considering.
C
We
issue
bonds
and
then
turn
around
and
real
own
that
money,
and
we
have
three
particular
programs
in
which
that's
Undertaker,
so
those
see
pet
bank
participation
loans
commonly
around
the
city
referred
to
as
2%
loans,
but
there's
others
subcategories
that
are
utilized
for
that
program.
We
have
about
240
loans
outstanding
for
principal
balance
of
6.6
million
dollars.
We
don't
undertake
any
payment
of
fees,
nor
do
we
receive
any
real
revenues
from
that
we
are
just
simply
partnering
with
a
bank
and
sharing
the
risk
with
the
bank
for
a
particular
business
law.
C
Other
steep
ed
loans,
oftentimes
we're
on
the
city
refer
to
as
loan
C.
These
are
mostly
for
housing,
but
also
for
economic
development
purposes.
We
have
795
loans
outstanding
at
256
million
dollars.
Many
of
these
are
for
affordable
housing
projects.
We
may
never
see
this
money
come
back
their
forgivable
loans,
in
some
cases,
depending
on
performance.
C
Those
loans
are
originated,
meaning
that
they
all
the
paperwork
in
terms
of
the
applications
are
done
through
vendors,
Greater,
Minnesota,
Politan,
Housing,
Corporation
or
gimmick
and
then
build
wealth.
Those
loans
are
primarily
for
home
improvement
and
mortgage
assistance.
So
individuals
there's
about
eight
hundred
eight
hundred
thirteen
loans
and
eight
point:
six
million
outstanding.
We
pay
approximately.
C
For
that
banking
relationship
with
those
entities,
the
contract
expires
the
end
of
this
year.
We
also
have
servicing
done
so
when
people
pay
back
those
loans
over
a
long
period
of
time.
We
hired
a
third
party
and
that's
community
reinvestment
fund,
so
CDFI
and
we
pay
them
about
fifteen
thousand
dollars
a
year
for
that.
For
that
service
and
RP
Loans,
we
have
over
a
thousand
inter
P
loans.
C
Fifteen
point:
eight
million
dollar
outstanding
balance,
those
are
originated
by
a
variety
of
vendors
and
several
hundred
them
again
over
a
thousand
several
hundred
of
them
through
energy
and
a
Center
for
energy
environment.
So,
obviously,
from
that
explanation,
many
of
these
are
not
just
remodeling
but
also
energy
efficiency
loans.
C
We
pay
approximately
one
hundred
and
eighty
six
thousand
dollars
per
year
for
the
origination
and
servicing
of
those
loans,
so
again
a
pretty
substantial
payment
for
these
banking
services
that
we
outsource
as
Oh
city,
all
right,
I'm,
going
to
talk
a
little
bit
about
bond
issues
moving
on,
but
the
common
bond
fund,
which
we
have
talked
briefly
with
the
council
in
the
last
couple
of
years
as
a
source
of
funding
for
some
other
programs
in
the
city.
This
is
one
area
where
we
actually
to
make
a
little
bit
of
money
as
the
city.
C
This
is
a
loan
program
primarily
for
larger
businesses,
medium
to
larger
businesses.
It's
a
real
estate
loan
program,
primarily
for
employment
improvements,
but
oftentimes
have
been
used
in
the
past
for
also
redevelopment.
We
have
an
indirect
guarantee
for
that
through
a
reserve
and
then
a
limited
levy
pledge
you
have
to
banking
vendors.
When
is
Piper
Jaffray
and
the
other
is
Royal
Bank
of
Canada
RBC.
C
The
next
Bond
is:
should
we
only
do
these
types
of
bonds
every
few
years,
sometimes
as
long
as
five
years
separating
the
transactions
we
have
one
pending,
that's
about
two
hundred
and
seventy
thousand
dollars
in
fees
for
that
particular
transaction.
We
are
at
the
time
where
we
have
to
do
what
a
we
are
in
fact
past
the
five
year
period
for
an
RFP,
so
we
will
be
undertaking
an
RFP
for
this
particular
service.
C
C
C
We
issue
bonds
on
behalf
of
the
park
board,
and
so
they
might
be
for
some
of
those
activities
as
well.
And
so,
if
you
recall,
we
just
earlier
this,
this
year
did
100
million
I'm,
sorry
to
80
million
dollar
issues,
240
million
dollar
issues
which
were
broken
into
a
taxable
and
a
tax-exempt
piece.
The
total
fees
for
that
transaction
were
three
hundred
and
thirty
thousand
dollars.
We
don't
award
the
bonds
on
the
basis
of
lowest
fees.
C
We
actually
award
the
bonds
on
the
basis
of
a
combined
lowest
fees
and
interest
rates,
and
there
it
was
the
particular
winner
in
that
in
that
trans
we
don't
have
a
long-term
relationship
with
any
of
these
folks,
it's
just
like
any
construction
bid.
We
just
put
it
out
for
bid
and
take
the
best
rate
and
then
most
of
the
time
those
investment
banks
turn
around
and
resell
to
the
public
or
to
insurance
companies
or
other
banks
around
the
country.
But
there
is
a
this
is
a
part
of
our
banking
business
and
how
we
behave.
C
It
again
is
very
much
dictated
by
federal,
especially
federal
regulations
and
also
state
law.
As
a
city,
we
have
embarked
on
on
several
larger
construction
projects,
Nicollet
long
target
center,
specifically
so
rather
than
issue
long
term
death
right
away.
Where
we
pay
a
lot
of
interest
and
don't
earn
as
much
interest
in
our
accounts
as
those
construction
projects
are
built
over
a
one
or
two
or
three
year
period,
then
we'll
do
a
bank
loan,
which
again
is
a
general
obligation
pledge
from
us
for
these
for
these
bond
issues.
C
But
the
loan
will
be
short-term,
in
fact,
for
Target
Center
we
drew
money
out
on
this
loan
and
then
just
as
a
part
of
that
80
million
dollar
issue
that
I
mentioned
earlier.
We
refinance
that
bank
loan
into
longer-term
debt.
We
do
an
RFP
process
again
and
we
have
utilized
Wells,
Fargo
and
US
Bank
for
those
particular
bank
loans,
the
there
are
no
fees
directly
paid
to
the
banks,
but
they
do
get
an
interest
rate
spread.
We
can't
quantify
exactly
how
much
money
they
are
making,
but
it
is
a
dollar
amount.
C
Certainly,
that
is
is
measurable,
but
again
they
have
done
the
lowest
cost
overall
and
we
try
to
vary
some
of
the
interest
rate
basis
where
they
getting
into
the
weeds
here.
But
one
is
tied
to
a
LIBOR
rate.
The
other
is
tied
to
a
system
or
rate,
and
so
we
try
to
just
provide
every
part
of
the
reason
we
do
this,
and
we
also
do
this
for
the
parking
fund
a
little
longer
term
than
just
the
short-term
construction
projects
is,
you
know
again
we're
a
large.
C
Than
six
hundred
million
dollars
an
outstanding
debt,
when
you
add
up
the
Geo
bonds
and
these
bank
loans-
and
we
try
to
keep
under
25
percent
of
that
a
variable
rating,
because
interest
rates
have
been
so
low
over
the
last
several
years-
that's
actually
saved
money,
and
certainly
my
cable
anar.
Our
debt
manager
of
some
very
capably
overseeing
that.
If
you
go
there
program,
we
also
have
a
bond
trustee.
C
We
have
tax
increment
revenue
bonds
and
we
also
have
the
common
bond
fund,
and
so
these
trustees
tend
to
be
large
banks,
because
there
are
state
law
requirements
about
what
kind
of
assets
a
bank
has
to
have
on
hand
in
order
to
qualify
under
state
law
and
it's
difficult
to
change
because
of
that
fiduciary
responsibilities.
So
we
don't
do
an
RFP
for
these
services.
We
just
simply
choose
them
at
the
time
of
a
bond
issuance
there's
about
forty.
C
Another
large
contract
is
a
contract
related
to
our
credit
card
processing.
These
are
not
all
the
fees
that
are
paid
as
a
credit
card
processing
cuz.
Certainly
the
credit
card
companies
take
a
chunk
of
the
fees,
but
our
vendor
is
US
bank.
They
were
selected
again
through
an
rfp
and
in
late
2014
early
2015
there
were
there
were
a
healthy
number
if
I
recall
nine
responses
for
that
particular
RFP.
The
feast
bread
was
within
twenty
five
thousand
dollars
for
the
top
three
vendors,
but
also
then
over
a
hundred
thousand.
C
The
last
Bank,
your
relationship
is
a
is
related
to
the
fact
that
the
city
helps
fund
partially
some
of
health
costs
for
employees.
That
money
sits
in
a
trust
that
is
administered
actually
by
our
human
resources
department,
its
invested
by
u.s.
bank.
Actually,
it's
money
that
is
sits
in
the
account
until
somebody
uses
it
and
because
we
have
enough
employees,
we
have
a
twenty
five
million
dollar
average
balance.
So
the
fees
on
that.
C
To
thirty
thousand
dollars
per
year,
so
thank
you
for
bearing
with
me
on
that
longer
discussion,
but,
as
I
said,
it
adds
up
to
just
over
two
million
dollars
worth
of
fees
again
from
year
to
year.
It'll
vary
primarily
by
how
much
we
do
in
bond
issues.
Okay.
So,
let's
turn
maybe
to
a
little
more
of
the
meat
of
the
issue
on
the
staff
direction.
C
I
want
to
talk
just
first
about
the
municipal
bank
option
to
the
staffs
conclusion
that
a
that
a
city
municipal
bank
that
takes
public
deposits
is
really
not
feasible
at
this
time,
and
there
are
several
reasons
for
that:
one
is
a
basic
level.
We,
as
a
city,
don't
have
independent
authority
to
undertake
the
creation
of
a
bank.
We
would
have
the
seeks
special
legislation
or
general
law
for
cities
across
the
state
from
the
state
legislature
and
even
then,
we're
not
guaranteed
regulatory
approval.
C
We
could
charter
either
as
a
state
or
a
national
bank,
but
there
the
process
involved
in
applicant
applying
for
that
process
taking
deposits
from
the
public
is
usually
what
the
state
banking,
commissioner
has
told
us
is
a
requirement
of
that.
In
other
words,
we
have
to
open
a
branch
that
just
any
banking
relationship
takes
an
enormous
amount
of
upfront,
investments
in
capital
and
personnel
technology
specialized
expertise
and
there's
no
guarantee
that
we
can
actually
show
our
return
on
that
investment.
C
C
That's
right,
a
man
made
famous
again
by
a
by
a
very
popular
musical,
a
band
er
Hamilton
was
the
one
who
sponsored
on
the
original
charter
of
a
National
Bank.
After
that
National
Bank
Charter
was
withdrawn
by
Congress
in
the
early
1800s,
several
states
across
the
nation
actually
created
state
banks
and
in
fact,
in
1900
they
were
still
two
of
those
operating
across
the
country.
State
banks,
those
two
no
longer
existed,
but
the
Bank
of
North
Dakota
was
created
in
1919.
C
And
if
you
go
on
the
Bank
of
North
Dakota's
website,
you
will
see
that
one
of
the
reasons
they
created
this
Bank
was
because
large
banks,
out
of
Minneapolis
in
Chicago,
were
charging
farmers
12%
interest
rate.
So
there
was
obviously
a
competitive
need
in
the
state
at
the
time
to
provide
access
to
capital
that
did
not
exist
within
that
particular
location.
So
certainly
the
Bank
of
North
Dakota,
even
as
long
as
it's
been
around
I,
think
only
has
one
branch
outstanding.
C
It
is
primarily
a
lender
to
commercial
entities
or
a
secondary
lender,
but
they
have
several
other
functions
that
a
great
website,
if
you
want
to
spend
some
time
walking
in
but
I
would
submit
to
you
that
we
already
have
elements
of
public
banking
within
the
city
that
could
be
expanded.
If
we
identify
a
particular
need
and
again
I.
C
C
So
when
you
don't
have
a
strong
collection
of
fees,
you
can't
go
to
a
bank
then
and
borrow
money,
and
because,
if
you
have
a
high
delinquency
rate,
the
bank
is
going
to
only
lend
you
maybe
fifty
percent,
of
whatever
the
costs
are
of
a
particular
improvement
and
for
a
lot
of
these
condo
and
townhome
associations.
These
improvements
are
things
like
heating
in
air
conditioning
systems,
their
garages,
their
windows,
they're,
very
essential
of
the
infrastructure
of
those
buildings.
E
C
C
One
of
these
housing
improvement
areas
has
three
more
in
the
pipeline.
I
think
one
very
near
term
and
and
experience
of
not
only
Hopkins
with
several
other
dozen
cities
that
have
been
around
the
state
of
Minnesota
that
have
worked
on
this
is
collection
rates
are
very
high,
and
default
rates
are
very
minimal.
So
that's
clearly
an
area
where
city
steps
in
in
a
municipal
banking
operation
and
says
how
can
I
make
people's
lives
better
because
of
the
gap
in
the
private
market?
C
Street
special
assessments
we're
giving
people
a
choice.
You
don't
have
to
pay
in
cash.
You
can
essentially
finance
the
cost
of
this
reconstructed
Street
through
the
city,
so
we
give
them
that
choice
and
that's
against
state
statute
for
all
cities
right.
On
top
of
that,
the
state
does
have
a
public
banking
operation.
We
participate
pretty
highly.
We
borrowed
seventy
million
dollars
over
the
past
several
years
and
we
hope
to
borrow
fifty
million
dollars
more
through
the
public
facilities
Authority.
C
That
is
money
that
is
through
a
federal
program
that
helps
write
down
the
interest
rates
to
cities.
So
we
can
keep
our
water
user
fees
low,
that
interest
rate
oftentimes
is
as
low
as
one
or
one
and
a
quarter
percent
for
those
loans.
So
certainly
the
state
has
some
involvement
in
lending
to
other
governmental.
C
C
The
city
of
Santa,
Fe,
New,
Mexico's
feasibility
study
for
a
municipal
bank
is
I'm
not
aware
of
any
city
across
the
nation
that
has
undertaken
a
municipal
bank
Santa
Fe
at
least
has
gone
to
the
point
of
doing
a
feasibility
study
and
one
of
the
main
emphasis,
and
there
phase
one
of
moving
in
a
municipal
bank
that
these
consultants
recommended
for
the
city
was
for
the
city,
just
a
lend
itself
more
money
and
we've
started
to
do
that.
We
could
probably
do
that
some
more.
C
Essentially,
Santa
Fe
is,
as
recommended
to
to
consider
the
same
type
of
approach
on
a
much
broader
basis.
As
you
recall,
the
city
is
also
undertaking
some
direct
purchase
or
at
least
set
up
the
ability
to
do
direct
purchase
of
freddie
mac
mortgage-backed
securities
for
naturally
occurring
affordable
housing
projects
and
we're
close
to.
C
Agreement
with
Freddie
Mac
on
this,
this
is
a
it's
a
municipal
banking
operation
from
the
standpoint
that
we
are
directly
buying,
rather
than
using
a
vendor
to
buy
mortgage-backed
securities
for
again
a
broader
goal
of
the
cities,
which
is
to
help
keep
soaring
rental
costs
from
pricing.
People
out
of
the
market
in
certain
building
on
the
last
thing,
certainly
for
the
city
to
consider,
would
be
just
more
supportive,
nonprofits
those
who
are
trying
to
help
on
payday
lending
for
people
who
have
not
a
great
credit
history
and.
E
C
C
C
Or
even
quite
frankly,
any
larger
vendors
measurement
of
a
what
constitutes
support
of
fossil
fuel
certainly
was
mentioned.
The
Dakota
access
pipeline
certainly
line
three
is
the
most
recent
of
a
larger
petroleum
pipeline.
That
is,
that
is
a
concern
for
many
people
and
I
sympathize
with
those
concerns
in
terms
of
the
health
of
our
water
resources,
not
just
in
tribal
lands
but
in
all
lands
across
Minnesota
and
I.
Think
all
of
us
are
particularly
sensitive
about
that
issue.
C
I
think
to
accomplish
a
definition
of
fossil
fuels
would
require
us
to
undertake
that
ourselves,
whether
we
isolate
that
the
pipelines
or
not
is
really
a
choice
of
the
council
to
consider,
but
I
would
I
would
suggest
a
couple
of
things.
One
is
I
know
that
US
bank
has
come
forward
and
they
have
an
environmental
policy
that
says
we're
not
going
to
directly
land
on
pipeline
projects
that
doesn't
mean
that
they're
not
lending
for
the
companies
who
work
in
fossil
fuels.
C
It
just
means
that
they
are
making
a
statement
that
says
we're
not
going
to
lend
on
larger
pipeline
projects.
So
the
council
have
to
consider
whether
that's
enough
of
a
differentiation
to
actually
change
behavior,
but
I
I
would
submit
to
you
that
I
think
a
larger
policy.
Consideration
is
not
just
to
look
at
the
banking
relationships
number
one,
but
to
look
at
all
the
vendor
relationships
because,
as
I
mentioned
$250,000
a
year
is,
is
not
a
substantial
amount
for
a
depository
banking
relationship.
C
And
the
question
is
on
a
supply
side,
and
let
me
just
use
these
terms
and
define
them
whether
that's
meaningful,
rather
than
us.
Improving
our
demand
side,
so
supply
side
means.
Do
we
think
that
this
is
going
to
make
a
market
change
on
the
issue
at
hand,
which
is
how
much
in
Patrol,
how
much
petroleum
resources
are
used
by
the
country
and,
frankly,
the
city
by
motivating
vendors?
Or
is
it
really
more
to
apply
it
on
the
demand
side,
meaning?
C
How
can
we,
as
a
city,
focus
our
energy
and
our
resources
on
reducing
the
amount
of
fossil
fuels
that
we
use,
and
certainly
the
action
that
you
had
in
front
of
you
today?
As
a
committee
speaks
to
the
work
that
we
are
starting
to
do,
but
have
a
lot
of
work
to
do,
which
is
a
renewable
connect
program
with
them
with
Xcel
Energy,
which
is
to
move
more
of
our
use
of
electricity
to
non
fossil
fuel
based
and
non
nuclear
based
electricity.
C
We
have
a
current
staff
direction,
we're
working
on
moving
and
thanks
to
councilmember
Andrew
Johnson,
the
electrification
of
our
fleet
of
vehicles,
and
that
certainly
would
make
a
substantial
impact
on
our
use
of
fossil
fuels
as
well.
And
so
I
would
say
that,
given
the
fact
that
I
have
been
involved
in
fin
against
pipeline
projects,
we'll
find
financing
one
way
or
the
other,
and
we
could
certainly
make
it
a
little
more
difficult
to
them
by
restricting
who
our
vendors
are.
C
But
I
would
suggest
that
a
better
use
of
our
resources,
just
from
purely
an
economic
issue
and
again
staying
away
from
the
moral
issue.
But
from
an
economic
issue,
we
are
better
focused
on
on
how
we
use
those
particular
resources
or
how
we
move
ourselves
away
from
that.
In
terms
of
the
example
that
we've
set
and
the
actual
motivation
that
we
provide
for
our
vendors,
that's
not
to
say
that
we
shouldn't
have
a
dual-track
with
some
relationship
with
vendors.
C
But
again
singling
out
banks,
I
think
is
a
is
a
consideration
that
we
have
to
think
about
not
just
from
a
legal
standpoint,
but
also
from
just
a
larger
relationship
with
all
of
our
with
all
of
our
procurement
process.
Alright,
so
last
part
almost
done
framework
for
options,
staff,
Direction
haps
for
those
and
an
African
specific
how
we
can
stop
doing
business
with
certain
firms.
C
If
you
remember,
Seattle,
moved
away
from
working
with
Wells
Fargo
and
as
I
read
that
ordinance
that
they
passed,
it
was
done
on
the
basis
of
what
they
called
fair
business
practices,
and
so
they
highlight
that
go
to
access
pipeline.
They
highlight
the
fines
and
that
have
been
attributed
to
Wells
Fargo
based
on
the
created
accounts
and
use
that
as
a
rationale
to
say,
not
only
we're
going
to
stop
doing
work
as
soon
as
possible.
But
we
would
prohibit
that
other
firm
from
re.
C
With
the
city
in
the
near
term,
I'm
talking
with
the
city,
attorney
and
I
think
we
would
find
difficulty
as
a
city
and
following
Seattle's
role
and
that
if
because
of
number
one
things
about
singles
out
a
particular
vendor
and
number
two
is
because
we
haven't
set
up
an
expectation
list
for
a
vendor
and
then
had
them
follow.
In
other
words,
it
moves
maybe
too
far
towards
that
punishment
side
of
the
equation
and
lacks
about
the
incentive
and
expectation
side
of
the
equation.
C
So
there
is
a
legal
perspective
that
we
can
certainly
have
a
conversation
about,
but
I
would
also
say
that
we
should
think
about
if
we
want
to
just
focus
these
activities
around
banking,
we
should
really
think
about
our
responsible
banking
ordinance
as
a
whole,
because,
right
now
what
we've
set
expectations
for
our
our
banking
relationships
and
again
out
of
that
long
list
that
I
went
through.
We
only
have
four
of
the
firms
responding
to
a
responsible
banking
Orient's.
It's
only
our
depository
relationships.
C
Relationship,
whether
there's
any
response
so
first
question
would
be.
Should
we
broaden
that
and
I
think
the
question
for
the
council
is
a
subtext
to
that
is:
there's
a
regulatory
burden
that
comes
along
with
having
to
fill
out
that
paperwork
so
that
it
may
keep
smaller
banks
from
wanting
to
work
with
us
because
of
the
work
that
they
have
to
do
on,
providing
that
responsible
banking
ordinance
information,
it's
not
to
something
simply
they
move
off
of
their
website
on
to
our
information.
It
revolves
around
how
much
in
they
have
four
smaller
mid-sized
businesses.
C
It
revolves,
along
around
mortgage
lending
practices
around
branch
practices,
so
I
would
say
that
we
would
need
a
larger
discussion
about
the
responsible
banking
ordinance
and
in
the
context
of
does
that
affect
the
willingness
of
a
smaller
bank.
Given
some
of
the
complexity
and
a
high
maintenance
client
that
we.
E
C
Continue
to
want
to
bid
for
the
city.
So
what
are
the
options
that
we
have
staff
that
provided
there's
really
three
one
option:
a
is
to
choose
banks
based
on
what
we've
done
in
the
past,
which
is
to
look
at
just
lowest
costs?
How
do
we
keep
property
taxes,
low,
the
breadth
of
those
services
and
our
current
responsible
banking
ordinance
plans?
The
second
option
is
to
choose
larger
contracts
based
on
those
factors
in
option
a
and
when
feasible
similar.
What
we've
done
with
the
target
market
program
break
those
apart
or
option.
C.
C
Let's
talk
and
break
those
down
a
little
more
distinctly
first
of
all
option,
a
I
would
say,
as
I
said
earlier,
for
depository
relationships
for
some
of
the
other
relationships,
I'm
concerned
about
not
having
a
great
deal
of
competition
that
you
could
leave
for
those
Depository
relationships
and
I
would
like
to
be
able
to
see
a
way
of
building
up
more
competition
in
particular.
That
would
require
require
some
state
law
change
or
some
work
with
the
government,
finance
officers
or
the
or
the
Bankers
Association.
C
A
it's
really
I-
think
business
as
usual,
with
a
what
trying
to
build
up
more
competition,
the
option
B
again
leaving
most
of
the
contracts
in
place
for
five
years,
but
to
break
apart
some
of
the
smaller
contracts
or
break
parts
on
the
larger
in
a
smaller
contract
in
two
areas,
particularly
in
underwriting,
we
do
cease
and
opportunities
for
working
with
firms
that
are
either
women
and
minority-owned
businesses
or
to
be
able
to
broaden
the
number
of
firms
that
we
work
with.
In
particular,
I
mentioned,
the
market
is
changing
just
restricting
ourselves
to
four
firms.
C
We
don't
think
as
an
advantage.
We
have
times
where
some
banks
will
come
in
and
say
banks
that
we
currently
don't
work
with
and
say
we
can
do
better
on
the
short-term
interest
rate
market.
If
you
move
50
or
100
million
dollars
into
our
accounts,
we
can
handle
that
amount
of
money,
and
we
don't
have
that
flexibility
within
our
our
provisions.
C
This
idea
that
we
can,
in
some
cases,
be
more
efficient
by
expanding
our
work
as
staff
and
to
do
some
of
the
investments
ourselves
rather
than
hiring
a
third
party,
and
we
can
benchmark
ourselves
against
that
third
party
and
certainly
loans.
I,
know
that
see
ped
and
Andrea
Brennan
is
exploring
whether
we
should
be
instead
of
outsourcing
a
fair
amount
of
that
loan
servicing,
as
well
as
on
underwriting
to
just
do
that
more
with
staff
ourselves,
and
so
there
would
certainly
be
policy
issues.
C
We
will
bring
before
you
as
a
as
a
city
in
the
next
several
months
to
make
some
changes.
I
think
if
we
were
to
move
the
option,
C
staff
recommendation
where
they
would
be
to
say
that
before
we
go
out
for
our
any
RFPs,
we
need
to
really
define
what
is
the
fossil
fuel
industry.
We
need
to
determine
what
the.
C
So
our
objective
of
staff
is
to
move
forward
with
option
B,
for
the
reasons
that
I
enumerated
earlier
certainly
would
welcome
any
feedback
from
elected
officials
on
this
particular
issue
and
again
I.
Thank
you
for
the
for
the
patience
that
you
had
in
this
process
of
walking
through
this,
and
certainly
I
felt.
That
was
very
beneficial
for
me
to
get
a
full
understanding
of
what
the
city's
banking
relationships
it
may
have
been.
A
So
that's
a
big
part
of
it
and
we're
going
to
continue
to
meet
with
community
members
and
as
other
stakeholder
organizations
as
we're
continuing
to
refine
our
process,
something
that
they
were
very
involved
in
as
we
created
the
responsible
banking
ordinance,
as
well
as
shaping
the
RFPs
both
for
our
banking
services
and
our
investment
banking
programs.
That
happened
in
2015,
so
we're
going
to
continue
those
operations.
So
with
that
happy
to
have
comments
from
committee
members
and
please
council,
members,
Cano
and
Gordon
feel
free
to
join
us
council.
Vice
president
Glidden
has
the
first.
E
So
that
actually
was
really
helpful
for
me
to
understand
I,
think
in
the
community
and
even
with
policy
makers,
we
we
weren't
mistrusting,
you
know
what
we
heard
from
finance
at,
but
I
just
think
we
didn't
understand
was
the
federal
requirement.
You
know
where's
this
come
from
and
it's
sort
of
interesting
do
other
states
have
this
collateralization
requirement.
E
I,
just
you
know,
would
like
to
understand
a
little
bit
more
because
it
is
part
of
the
perhaps
of
protection
for
organizations
like
the
city
of
Minneapolis,
but
it
also
makes
it
difficult
for
us
to
diversify
the
types
of
institutions
that
then
can
qualify
to
serve
the
city
of
Minneapolis
and
sort
of
affects
our
interests.
That
way
too,.
C
Mr.
chair
comes
home
vice
president
Glidden
other
states
do
vary
for
collateralization
I
would
say.
The
majority
of
states
have
some
form
of
a
collateralization
the
amount,
so
we
have
110
percent.
So
we
go
above
and
beyond
right.
Some
states
may
only
require
eighty
or
seventy
five
percent.
They
also
may
give
more
flexibility
to
banks
as
to
what
form
of
that
collateral
might
be
so
that
we
have
certain
minimum
rating
requirements.
C
C
We,
the
banking
world,
as
we
saw
during
the
financial
crisis,
is
very
tied
to
the
federal
government
and
different
things
have
different
access.
The
Federal,
Reserve
and
other
types
of
securities
and
so
I
think
there
is
an
opportunity
for
some
change
there,
but
we
would
need
to
really
work
in
concert
with
with
the
staff-
that's
not
just
in
the
legislature,
but
really
in
the
governor's
office
to
make
sure
in
the
in
the
department's
budget,
Department
of
Commerce
as
to
what
comfort
level
they
had
a
security
that
would
be
adequate
right.
E
E
Experts
who
deal
in
these
areas
and
sort
of
variety
of
folks
need
to
be
able
to
weigh
in
to
helps
us
understand.
Is
this
really
the
proper
standard?
110
percent
I
know
there's
other
areas
where
we've
been
sometimes
following
a
state
standard
where
maybe
it's
not
a
state
law
requirement
and
questions
about
whether
the
state
is
at
the
right
amount,
whether
that's
not
insurance
requirements
and
some
other
things
that
again
are
about
the
protection
of
the
public.
But
then
are
they
sort
of
evolving
with
the
current
standards
at
the
time?
I.
E
Don't
know
if
it's
growing
the
relationship
with
some
of
those
institutions
or
letting
them
know
the
series
that
the
city
would
you
know
just
think
they
were
serious
candidates
if
they
had
an
appropriate
proposal
or
you
know
what
does
it
take
to
make
sure
that
we
have
a
good
anyway?
It's
a
variety
of
competitive
applicants,
so
we
don't
feel
just
tied
into
one
or
two
all
the
time
I
would.
E
C
To
expand
the
number
of
institutions
we
work
with
on
the
investment
side,
because
for
better
or
worse
I
think
we
don't
hear
from
a
lot
of
smaller
banks
in
the
finance
area.
I
think
clearly
see
Pat
and
some
of
the
programs.
They
have
had
more
interaction,
but
there
would
be
one
more
way
of
building
relationships.
Certainly
I
use
an
example:
Bremer.
D
C
E
C
This
news
story
hit
in
December
and
certainly
had
other
smaller
banks
that
that
called
us
and
either
me
or
Lori
Johnson,
talked
with
them
specifically
but
absent
having
a
transaction
or
something
to
work
on.
We
just
don't
have
a
chance
to
build
those
relationships
and
I
would
say
that
my
experience
is:
is
percent
of
guiness
electronic
as
the
world
becomes.
It
still
comes
down
to
individual
people,
relationships
and
the
comfort
level
that
we
have.
What
kind
of,
because
again,
it's
not
just
about
their
capacity,
but.
C
Service
for
they
offer
as
well,
which
is
equally
as
important
to
us
as
costs
so
directly
answer
your
question.
I
think
by
broadening
the
number
of
firms
that
we
could
work
with
on
an
investment
basis
would
then
help
inform
us
who
was
interested
in
doing
more
work
and
willing
to
invest
some
of
their
own
time
and
resources
into
making
some
of
these
changes,
and
that
relationship
could
be
built
then,
and
expanded.
E
So
and
then
I
had
one
more
question,
then
I'll
I
know
that
there
are
a
couple
of
motions
that
some
of
us
have
that
we
are
hoping
to
put
out
there
for
discussion,
but
there
may
be
other
questions
before
we
do
that.
So,
but
just
my
my
last
afford
question:
was
you
one
of
your
recommendations?
Is
that
if
we
gotta
get
the
right
slide
here,
but
you
recommend
utilizing
the
responsible
banking
ordinance
as
an
appropriate
vehicle
for
I.
Guess.
E
I
just
say
that,
because
today
we
do
have
I
think,
what's
generally
understood
as
a
city
priority
or
goal
for
supplier
diversity,
and
yet
there
is
nothing
in
responsible
banking
ordinance
about
that
goal
other
than
we
ask
responsive
vendors
to
describe
to
us
certain
activities
that
maybe
fall
into
those
categories,
but
that's
just
more
informational.
So
we
don't
do
anything
with
that.
We
don't
give
preferences
or
anything
based
on
that
information.
So
are
you
envisioning
that
we
redesign
the
responsible
banking
ordinance
to
include
definitions
of
procurement
related
terms
such
as
supplier
diversity?
E
C
Mr.
chair
comes
place,
president
Glidden
I
think
there
are
two
paths
for
the
city
to
take.
One
would
be
a
more
global
change
to
procurement
for
all
vendors,
but
if
we
want
to
choose
to
just
focus
more
on
the
banking
relationship,
I
was
having
a
hard
time
understand.
Salang
king
ordinance
is
not
just
a
annual
reporting
requirement
after
someone
gets
hired,
but
it
actually
was
also
as
I
understand
it.
C
Particular
attributes
that
we
are
interested
in
so
I'll
use
the
as
again
the
supply
versus
demand.
So
it's
not
just
about
how
much
in
lending
for
fossil
fuel
industries
or
pipeline
projects,
but
it's
also
how
much
lending
do
you
do
for
renewable
energy
projects?
Okay,
so,
and
what
kind
of
reporting
in
terms
of
trends
is
that
an
upward
trend?
Is
that
a
declining
trend,
so
those
types
of
things
I
think
help
inform
decisions
on
what
type
of
vendors
we
may
want
to
work
with
and
to
also
encourage
them
to
to
alter
behavior?
C
That's
what
our
desire
is.
So
those
are
the
types
of
I
think
consistent
with
what
the
last
round
of
responsible
banking
ordinance
was,
which
was
a
focus
on
what
kind
of
mortgage
lending
do
you
undertake
what
kind
of
small
business
lending?
If
there's
another
social
lens
that
we
want
to
undertake,
we
ought
to
I
think
as
explaining
it
to
vendors
when
I'm
the
department
head
trying
to
do
that
say
here
are
the
things
that
we're
going
to
measure
you
against,
and
if
you
fail
to
measure
them,
then
it's
not
a
punishment.
C
Then
it's
a
missed
expectation
because
we've
laid
out
the
expectation
and
they
haven't
made
the
expectation.
So
that
was
the
reason
for
the
responsible
banking
ordinance
change
recommendation
was
to
say
that
we
are
laying
out
what
are
the
essentially
the
rules
of
the
game,
and
then
we
are
measuring
you
against
those
rules
of
the
game.
In
that
relation.
E
Okay
and
then
just
I,
know,
I
said
it
was
my
last
question.
But
now
you
just
remind
me
another
question.
So
if
we
add
these
things
in,
do
we
yet
have
any
opinion
from
our
city
attorney
whether
we
could
make
those
additions
and
that
the
feeling
that
we
might
be
running
afoul
of
kind
of
these
lines
around?
Are
you
a
regulator
of
banks?
C
A
You
I
think
that's
one
of
the
things
when
we
initially
did
responsible
banking
ordinance
and
then
we
put
together
in
our
pre
process.
We
intentionally
broke
up
the
contract.
We
made
it
a
menu,
we
wanted
lots
of
people.
I
know
our
treasurer
at
the
time
was
active,
trying
to
find
19
different
people
to
submit
bids,
and
still
we
were
receiving
only
the
three
and
they
were
on
four
complete
packages.
So
our
intention
was
good.
We
wanted
more
diversity,
supplier
diversity.
A
We
wanted
more
competitive
relationships
for
a
better
deal,
but
we
also
wanted
to
achieve
some
greater
good,
but
the
responsible
banking
ordinance
in
itself
became
a
barrier,
as
we
heard
from
people
who
submitted
or
didn't
submit
because
of
the
the
tasks
associated
with
comply.
So
it
was
just
something
to
think
about,
and
one
thing
we
could
always
do
is
accomplish.
President
just
alluded
to.
A
We
could
don't
have
to
necessarily
change
the
ordinance,
but
we
could
change
the
RFP
evaluation
criteria
screen
as
we're
making
decisions
down
down
the
road
so
that
that
doesn't
require
an
ordinance
introduction.
So,
just
just
a
thought,
as
a
comment,
don't
remember,
is
that
you
councilmember
Gordon,
please
feel
free.
Thank.
B
You
very
much
appreciate
it's
fun
to
make
a
couple
comments.
Maybe
before
there's
any
motions,
I
mostly
just
wanted
to
send
my
gratitude
to
the
finance
staff.
After
making
this
staff
direction,
they
took
the
time
to
come
and
meet
talk
about
what
we
were
doing.
Working
on
continually
actually
I'm
I
was
joined
by
finance
staff
when
I
met
with
the
assistant
commissioner,
commerce,
to
talk
about
banking
from
the
state
level.
I
really
appreciated
that
and
having
you
there.
That
was
excellent,
and
the
thoroughness
of
this
report
gives
us
a
lot
of
information.
B
I,
don't
think
we
had
before
I'm
wondering
and
thinking,
maybe
even
in
finance
discovered
some
new
things
that
they
weren't
aware
of,
as
they
were
drilling
into
what
seabed
doing
and
what
are
all
these
issues
out
there
and
I
think
we've
got
a
lot
of
great
opportunities
here.
I
also
wanted
to
note
that
there
was
lots
of
interest
from
the
community.
After
we
made
this
staff
direction,
we
were
pulled
into
a
big
meeting
with
lots
of
interest
groups.
B
I
know
Jewish
Community,
Action
and
350
SEIU
I
forget
all
the
people
that
were
there,
but
just
to
talk
about
it
and
look
at
it,
and
there
was
really
kind
of
a
coming
together.
Some
people
who
were
concerned
about
bank
employees
being
whistleblowers
and
getting
paid
properly
and
treated
right.
Other
people
worried
about
investments
in
low-income
communities
and
what
kind
of
mortgage
loans
are
going
out,
and
then
people
worried
about
fossil
fuel
industries,
we're
all
getting
excited
about
this
idea.
Could
we
have
more
influence
and
democratic
control
of
it?
B
And
lastly,
I
was
surprised
because
I
started
getting
contacted
from
national
organizations
about
it.
There's
a
national
public
banking
institute.
Little
did
I
know,
and
there
I
am
having
the
opportunity
to
interact
with
a
city
council
member
from
santa
fe
talking
about
how
they
didn't
only
do
one
feasibility
study.
They
did
two
and
now
they've
created
a
task
force
to
kind
of
study
the
issue
and
take
it
to
the
next
degree.
B
A
Yeah
yeah,
that's
what
I
thought
it
would
be
a
good
time
to
take
steps.
Indeed,
because
there's
not.
I
think
this
is
just
a
receiving
file,
but
you
had
you
presented
a
recommendation,
so
I
think
we
should
probably
move
forward
with
that
in
some
capacity-
and
I
we
thought
had
a
number
of
conversations
with
finance
and
and
thank
you
for
participating,
help
us
craft
some
vinegar.
Some
staff
directions
in
the
first
motion
is
one
that
I'm
authoring
as
well
as
council
as
president
wooden
Gordon
and
Cano.
A
It's
directing
the
city
coordinator
and
finance
director
to
work
with
the
city
attorney
in
the
Department
of
Civil
Rights
director
to
develop
and
recommend
a
timeline
and
process
for
drafting
a
socially
responsible
procurement
and
contracting
policy
for
all
goods
and
services
procurement,
including
banking
services.
This
timeline
and
process
should
incorporate
potential
changes
to
the
city's
responsible
banking
ordinance
with
regular
reporting
to
the
Council
on
banking
services.
So
that's
the
that's.
The
language
of
the
first
motion.
A
I
think
it
speaks
to
the
idea
that
this
is
not
just
about
banking
services,
but
we
really
need
to
look
at
it
as
a
procurement
system
and
having
the
finance
and
city
coordinator
along
with
the
city
attorney
and
civil
rights
Department
working
on.
That
is
a
good
step
forward
and
we're
looking
for
that
kind
of
comment.
So,
if
there's
any
comments,
questions
on
that
particular
staff
direction.
Motion
I
see
a
thumbs-up
from
councilmember
Gordon,
so
I
want
the
minutes
to
reflect
the
thumbs-up,
miss
Armstrong
and
council.
Vice-President
good
thanks.
E
Mr.
chair
and
I'm
not
sure
if
you're
also
going
to
move
option,
B
I
kind
of
think
with
the
staff
direction.
This
is
a
little
bit
out
of
sort
of
an
option.
B+
and
it's
really
more
or
less
I
think
teen
a
question
of
what
would
it
mean
to
have
a
socially
responsible
policy
and
I
think
there
are
some
good
questions
that
honestly
we
need
to
answer
about.
E
Would
we
even
be
able
to
define
it
in
a
way
that
would
be
meaningful
and
those
are
things
that
we
would
need
to
work
out
together
with
policy
maker?
You
know
input
with
with
our
staff,
so
I
am
a
little
bit
more
in
favor
of
thinking
of
this
as
a
procurement
policy,
not
as
something
that's
just
restricted
to
one
particular
type
of
services
that
we
engage
in,
but
as
how
we
think
about
our
systems
as
a
whole,
but
I
think
just
to
again
be
blunt
about
I.
Think
the
challenge
will
be.
E
Are
we
able
to
define
social
responsible
policy
in
a
way
that
actually
is
meaningful
and
in
legal,
so
I
think
that
is
a
little
bit
of
the
challenge
that
I
will
say.
This
is
a
topic
where
well
I've
heard
from
a
lot
of
constituents
that
just
are
very
interested
in
what
does
that
mean?
How
does
that
relate
to
kind
of
our
public
services
in
our
public,
good
and
I?
A
E
C
Just
to
clarify
I
think
we
were
asked
to
bring
back
options
in
this
report
in
in
the
end
of
the
report.
I
think
the
idea
was
that
we
would
be
moving
forward
with
option
B
unless
the
council
wanted
to
take
us
in
a
different
direction.
So
I
think
that
was
part
of
the
benefit
of
this
longer
process
was
for
us
to
review
all
of
our
practices
and
come
forward
with
what
we
saw
as
the
City
Council's
longer-term
overarching
goals,
but
it
also
with
the
opportunity.
C
A
I
guess
it:
the
staff
direction
at
the
budget.
Time
asked
for
options
and
that's
what
was
clearly
done
and
detailed
through
slide
30
and
then
you've
gone
the
extra
step
and
made
staff
recommendation
that
slide
31.
So
I
think
I'd
like
to
move
this
staff
recommendation
of
pursuing
option
B
and
then
appending
a
staff
direction
that
I
just
read
as
the
first
one
as
part
of
that
recommendation
moving
forward.
So
that's
just
for
that
formality.
I!
Don't
remember!
Gordon.
B
Thank
you,
I
guess:
I
wanted
to
head
to
my
thumbs
up,
but
I
think
there's
some
things
in
option:
B
that
are
very
exciting.
They
enhance
by
versity,
also
continuing
to
expand
our
municipal
banking
options.
I
think
those
are
things
definitely
worth
pursuing.
I
also
just
wanted
to
point
out
that
we
do
have
some
policy
that
kind
of
governs
over
our
procurement
and
contracting.
We
I
think
it
was
councilmember
Benson
who
helped
draft
and
get
approved
in
environmentally
friendly
purchasing
and
procurement
policy.
B
So
it
really
helped
guide
us
with
that
and
I
think
we'll
find
we
have
lots
of
discretion
when
we're
actually
buying
some
services
and
contracts.
As
long
as
it's
fair
and
we're
not
discriminating
against
anybody,
so
I'm
excited
about
this
I
think
it
is
a
fairly
big
piece
of
work.
So
I
really
appreciate
that
we
have
the
city
coordinators
office,
the
city
attorney
and
civil
rights
working
on
it,
and
hopefully,
policymakers
can
be
involved
in
drafting
that
policy
may
be
some
advisory
groups.
I
do
think
it.
B
The
one
concern
that
I
have
is:
we
have
a
lot
of
contracts
that
are
potentially
coming
due
in
2018
and
I'm,
not
sure
how
the
timing
is
going
to
work
with
drafting
a
new
policy
to
influence
those
potential
rfp's.
Do
we
see
fallout
4?
So
that's
something
we'll
Rebecca
and
good.
What
there
a
date
when
we're
expecting
them
to
come
back
on
this,
it's
pretty
open-ended.
It
could
easily
be
I.
E
Thanks
I
will
read
the
section
which
is
by
myself,
councilmember
Gordon
Montano,
and
it's
directing
finance
staff
to
return
to
the
Ways
and
Means
Committee
by
September
15th
of
this
year,
with
recommendations
for
a
timeline
and
cost
for
completing
a
study
of
the
feasibility
of
establishing
a
publicly
owned
banking
operation,
including
a
review
of
the
intergovernmental
financial,
legal
and
technological
considerations
in
relation
to
establishing
a
public
bank
serving
state,
regional
or
municipal
interests,
with
consideration
of
different
scopes
of
services,
including
a
smaller
operation,
sir
of
targeted
needs,
and
so
I.
Think.
E
The
intent
here
is
that
we
would
have
a
better
understanding
of
what
it
would
cost
to
do.
A
feasibility
study.
And
then
we
can
make
decisions
from
there
as
a
council
on
whether
or
not
the
council
wants
to
move
forward
on
that
or
not
I.
Think.
The
idea
here
was
that
we
would
see
kind
of
what
would
be
that
ballpark
estimate
before
the
end
of
the
year
before
we
adopt
our
budget.
E
Although
I
will
just
note
by
this
time,
the
mayor
will
have
already
released
her
budget,
which
sometimes
means
it's
a
little
bit
harder
because
you're
making
choices
of
winners
and
losers
on
what
the
mayor
has
already
tried
to
fund.
So
this
may
be
something
that
would
apply
to
this
year
if
councilmembers
on
this
council
agreed
or
it
may
be
something
that
would
be
taken
into
account
for
a
future
occasion.
E
The
other
thing
I'll
just
note
is
that
I
know
there
has
been
a
bill
of
the
legislature
in
in
recent
past
years
about
public
bank
and,
while
I
don't
know
how
many
legislators
are
interested
in
this
concept.
I
believe
the
legislature
who
did
offer
that
with
House
member
is
still
in
the
legislature
and
so
I
think
that
is
also
just
an
area
to
explore
a
little
bit
more
is
interest
from
those
in
the
state
legislature.
In
potentially
doing
some
feasibility
work
around.