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From YouTube: November 14, 2018 Ways & Means Committee
Description
Minneapolis Ways & Means Committee Meeting
A
Everyone
thank
you
for
coming
to
the
regularly
scheduled
meetings
of
the
Ways
and
Means
Committee
I'm
Abdul,
or
some
of
the
chair
of
the
committee
and
I
have
with
me,
council,
member
Johnson,
Fletcher,
Palmisano
and
vice
president
Jenkins,
and
we
have
a
quorum
of
the
committee
and
we
can
dispense
with
our
business
today
on
our
consent
item.
We
have
39
items
for
consideration
and
we
actually
have
40
items
of
consent
and
I'm
going
to
read
all
40
of
them
item
number
one
is
a
legal
settlement
between
cat
Rosser
versus
city
of
Minneapolis.
A
Item
number:
two
is
a
legal
settlement
workers
compensation
claim
by
Robert
hi
Hurst
item
number:
three
is
a
legal
settlement
workers
compensation
claim
by
Trevor
Dooley
item
number
four:
is
a
grant
award
from
the
Minnesota
Homeland
Security
and
emergency
management
for
the
police
bomb
disposal
unit.
Item
number:
five:
is
a
one-time
transfer
of
cash
balance
from
parking
fund
to
general
fund
I?
Don't
number
six
is
a
2018
tenant
remedy
act.
Assessment.
A
Item
number
seven
is
a
contract
amendment
with
Mya
share
and
Rockcastle
limited
for
architect
and
engineering
of
record
design
services
for
the
new
public
service
building
project.
Item
number:
eight
is
the
bids
for
contra
bids
for
concrete
steel,
installation
and
waterproofing
for
the
new
public
service
building
project
item
number:
nine
is
a
contract
amendment
with
backbone
enterprises
inc
for
cyber
security
review
item
number.
Ten
is
an
appointed
position
in
the
public
works
department.
Deputy
director
of
public
works
business
administration.
Item
number
11
is
a
collective
bargaining
agreement.
A
Construction
equipment
operators,
unit
2018
through
2020,
either
number
12
is
a
grant
application
to
the
United
States
Department
of
Health
and
Human
Services
for
the
Healthy
Start
program.
I,
don't
number
13
is
a
2018
one.
Minneapolis
fund
funding
recommendations.
Item
number
14
is
a
Minneapolis
pathway,
2018
grant
agreements.
Item
number
15
is
a
contract
amendment
with
Hennepin
County
for
cost-sharing
of
Minnesota
family
investments
program
in
employment
and
training
services.
I.
Remember:
16
is
a
contract
amended
with
employ
Milwaukee
Inc
for
information
technology,
employment
and
training
services.
A
Item
number
17
is
a
contract
with
tree
trust
for
tree
planting
services.
Item
number
18
is
a
donation
of
travel
and
lodging
expenses
for
Bloomberg
American
Health
Summit
Idol
number
19
is
a
modification
to
ten
tax.
Increment
financing
plans
to
increase
the
TIF
budget
for
a
portable
housing
and
number
20
is
a
grant
from
the
Minnesota
Department
of
Employment
and
economic
development.
We
development
grant
program
for
August
2
2018
grand
round
Idol
number
21
is
a
2018,
affordable
housing
trust
fund
award
in
2018
pipeline
a
HTF
Award
item
number
22
is
a
contract
with
btg.
A
A
Iron
number
28
is
a
2018
levy
for
special
assessments
relating
to
nuisance
conditions
and
unpaid,
administrative
enforcement
fees
and
fines
and
item
number
29
is
a
Hennepin
County
Environmental
Response
Fund
grant
application
for
410
Westlake
Street
item
number
30
is
a
bit
for
34th
Avenue
South
Street
reconstruction
project.
Idol
number
31
is
a
bid
for
4th
Street
southeast
electric
electric
enhancement
project
item
number
32
is
a
contract
amendment
with
M
10
for
cleaning
and
lining
of
cast-iron
water
remains
item
number
33
is
a
bid
for
sidewalk
and
parking
lot
snow.
A
A
When
item
number
36
is
a
bid
for
rental
of
work
zone,
traffic
control
devices,
item
number
37,
it's
a
grant
application
to
the
Minnesota
Department
of
Health
for
evidence-based
home
visiting
program.
Item
number
38
is
a
contract
with
central
D
can't
pronounce
that
name
see
suit
L
for
collaborative
enforcement
of
labor
standards.
Item
number
39
is
a
competitive
bidding
threshold.
Ordinance
item
number
4
is
a
2018
third-quarter
financial
status
report,
which
is
a
receiving
and
filing
the
2018
third
quarter
financial
status
report.
So
what
I'm
going
to
do
is
I'm
going
to
make
a
motion?
A
Are
there
any
discussions?
Any
of
the
items?
My
colleagues,
okay,
seeing
none
so
I'm
gonna
make
a
motion
to
move
all
these
items
for
approval.
All
those
in
favor
say:
aye,
those
against
those
items
have
been
approved,
and
then
we
have
item
number
40,
which
is
again
the
2018
third
quarter,
financial
status
report
and
any
discussion
on
this
item.
I
see
none
I,
move
to
receive
and
file
this
item,
all
those
in
approval
say
aye,
those
against
say.
No.
A
That
item
has
been
approved
and
then
we
have
item
number
41,
which
is
our
one
discussion
item
today.
I
don't
know
further
one
is
an
investment
policy
relating
to
city
investments
in
mortgage-backed
securities
and
this
item
we
do
have
a
number
of
presenters.
We
have
mr.
Markoff
here
so
go
ahead.
Mark.
B
If
you
council
is
aware,
the
city
hires
a
variety
of
firms
to
help
manage
our
investments,
some
of
those
investments
are
shorter
term
and
some
are
longer
term
Mike.
A
Boleyn
is
here
with
Ray
worry
me
a
Micah,
Nate
and
Ray
oversee
our
investment
portfolio
with
these
managers.
We
have.
One
of
the
three
long-term
managers
we
have
currently
under
contract
is
our
VC
and
periodically.
We
encourage
our
our
vendors
to
bring
ideas
to
us
and
there
is
an
idea
that
that
they
are
utilizing
for
other
clients
that
they
thought
may
we
may
be
interested
in.
B
This
is
not
an
action
item
for
the
council
right
now.
What
it
is
is
just
information
and
we'll
take
your
feedback
and
potentially
change
our
investment
policy,
but
I
think
on
a
more
global
level
and
just
reminding
the
council
that
we
did
change
a
few
years
ago,
the
investment
policy
to
allow
for
longer
term
investments.
B
We
have
not
been
successful
in
securing
one
of
those
mortgages,
and
so
as
a
complement
to
that
same
strategy
and
just
as
a
context,
I'd
ask
that
you'd
listen
to
the
work
that
they're
doing
with
similar
institutions
on
a
targeted
investment
policy.
It's
not
a
replacement
for
the
noah
investments.
It's
just
more
of
a
complement,
as
I
said,
of
what
the
same
philosophy
and,
as
I
said
at
the
end,
we
appreciate
any
questions
and
feedback
with
that,
I'm
going
to
turn
it
over.
C
You
thanks
mark
again,
my
colleagues
and
I
here
are
very
thankful
for
the
opportunity
to
be
here
today
and
speak
to
you
on
this
opportunity.
As
Mark
said,
we
are
here
from
RBC
global
asset
management.
We
are
one
of
the
investment
managers
for
the
city
of
Minneapolis
and
we
are
especially
excited
to
be
here
just
given
our
relationship
with
the
city.
C
The
fact
that
our
firms
headquarters
are
right
down
the
street
here
in
Minneapolis
and
just
really
excited
about
the
opportunity
here
today
how
it
impacts
our
city,
so
I'm,
Bethany,
Jason,
I'm,
an
institutional
portfolio
manager
joining
with
me
is
Katherine,
but
not
she's.
Also
an
institutional
portfolio
manager
and
subject
matter,
expert
on
impact,
investing
initiatives
and
Brian
spindle
is
our
lead
portfolio
manager
and
a
co
head
of
us
fixed
income
strategies
and
he's
also
the
lead
portfolio
manager
in
the
city
of
Minneapolis
as
current
portfolio,
maybe
just
flipping
toward
prepared
materials.
C
Here
on
the
second
page,
we
wanted
to
provide
a
little
bit
more
background
on
RBC
and
our
relationship
with
the
city
of
Minneapolis
noted
RBC
is
one
of
them
investment
managers
of
the
city's
current
portfolio.
We
manage
roughly
200
million
in
assets
on
behalf
of
the
city.
This
is
all
short-term,
fixed
income
securities,
investing
in
US
Treasuries,
u.s.
agencies
and
agency
mortgage-backed
securities,
all
the
whole
into
the
Minnesota
State
statutes.
C
So
while
we
are
beholden
to
these
state
statutes,
we
also
manage
the
portfolio
according
to
the
city's
investment
policy
guidelines,
which
is
on
the
right-hand
side
of
the
page
here,
which
stipulates
that
assets
should
only
be
invested
in
securities
authorized
by
the
state
statutes
as
well
as
the
securities
must
have
a
weighted
average
maturity
of
under
five
years.
So
this
is
how
we
are
currently
managing
the
portfolio
kind
of
moving
on
to
our
next
page.
C
Here
we
wanted
to
introduce
some
of
the
work
we've
been
doing
with
local
investing
and
conversations
we've
had
with
the
city's
finance
committee
around
our
impact
investing
initiatives.
So
yes,
at
RBC,
we
have
capabilities
to
invest
in
local
communities,
and
these
are
investments
that
can
directly
promote
affordable
housing
in
the
city
of
Minneapolis,
and
we
want
to
be
clear
that
this
is
in
the
form
of
an
agent,
see
mortgage-backed
security
which
we
described
on
the
previous
page
and
is
eligible
under
Minnesota
state
statutes.
C
So
in
doing
so,
our
BC,
we
have
collaborated
with
the
Minnesota
impact.
Investing
initiative,
which
we
referred
to
as
the
mi3
and
Katherine
will
describe
in
greater
detail
in
a
minute.
Here,
but
really
want
to
emphasize
that
through
our
relationship
with
the
city's
finance
committee,
we've
had
multiple
conversations
on
the
topic
of
local,
investing
and
just
ways
to
promote
affordable
housing
in
Minneapolis.
C
So
we
believe
that
a
solution
begins
with
directly
investing
in
the
Minneapolis
specific
projects,
and
these
are
through
again,
those
agency
mortgage-backed
securities
allowed
by
state
statutes.
We
believe
that
these
investments
will
meet
both
financial
goals
as
well
as
support,
affordable
housing
in
the
city
of
Minneapolis.
So
with
that,
we're
here
to
tell
you
more
about
the
solution
and
I
will
kick
it
off
to
Kathryn,
to
tell
you
more
about
the
Minnesota
impact,
investing
initiative,
mi3,
what's
gone.
B
A
C
A
D
E
D
D
Terrific,
thank
goodness
you
have
a
fallback
system,
so
I'm
going
to
just
describe
briefly
the
Minnesota
impact,
investing
initiative,
which
we
referred
to
as
Bethany
says
as
mi3.
It's
a
collaboration
among
a
group
of
Minnesota
based
foundations
to
invest
in
Minnesota.
It
was
led
by
the
Minnesota
Council
on
Foundations
that
brought
together
its
members
to
figure
out
how
to
direct
dollars
to
the
state
that
everyone
cared
about.
It
consists
of
11
foundations.
You
know
many
of
them:
McKnight
Bush,
auto
Bremer,
the
st.
D
Paul
foundation,
the
Minneapolis
Foundation,
to
name
a
few,
and
it
consists
of
about
twenty
three
million
dollars.
At
this
point
it
was.
The
goal
was
to
catalyze
dollars
to
invest
in
the
state
of
Minnesota
on
behalf
of
these
foundations
and
to
be
a
catalytic
capital
source
not
to
be
the
be-all
in
the
end
all
but
to
bring
along
lots
of
other
institutions,
and
you
are
in
our
thoughts
and
minds
at
the
time,
as
well
as
a
lot
of
the
high
net
worth
clients
here
in
in
town.
D
So
this
is
really
why
we're
honored
to
present
to
you
today
because
of
the
ability
to
grow
this
initiative,
the
investments
in
on
page
five,
the
investments
that
are
currently
in
the
mi3
portfolio
are
graphically
depicted
in
the
what
I
call
the
heat
map
and
they're
concentrated
around
Minneapolis.
As
you
can
see,
and
there's
a
breakdown
of
the
types
of
investments
we're
making
with
those
dollars
in
the
size
of
the
bubble
relates
to
the
size
of
the
dollars
in
terms
of
affordable,
multi-family
housing.
D
D
For
asking
that's
mortgage-backed
securities,
it
can
include
both
single-family
mortgages
and
multi-family
mortgages,
and
here
today
we're
here
to
talk
about
focusing
on
the
multifamily,
affordable,
housing
opportunities.
Thank
you.
Thank
you,
sorry
for
not
being
clear,
so
we
have
an
example
of
an
investment
we've
made
on
behalf
of
MI
3,
which
is
the
Midtown
exchange,
I
believe
you're
all
familiar
with
it.
It's
a
million
square
feet
for
mixed-use
facility,
its
redeveloped
after
10
years
of
vacancy,
and
a
lot
of
energy
and
excitement
in
the
community
around
it.
D
The
goals
were
to
focus
on
job
creation,
public
safety
and
respect
for
the
diversity
and
history
of
the
neighborhood.
The
ground
floor
is
business
and
there
are
lots
of
small
businesses
there
that
have
been
encouraged
to
provide
services
and
jobs
in
the
neighborhood,
and
it
incorporates
office
space
and,
most
importantly,
for
this
conversation,
multifamily
housing,
81%
of
the
units
are
reserved
for
low
ink
tenants.
D
The
security
details
are
worth
considering
in
the
context
of
some
of
the
things
we've
mentioned
earlier.
It
is
a
Ginnie
Mae
security
and
a
government-backed
security.
It
is
a
mortgage-backed
security,
it
is
rated
triple-a
and
it
yields
about
4%
and
the
weighted
average
maturity
is
six
point
six
years
it
is
eligible
under
state
statute,
but
that
weighted
average
maturity
is
different
than
the
current
portfolio.
D
G
Thank
You
chair,
we're
salami,
so
I
was
a
housing
organizer
during
the
period
of
2008
to
2012,
and
so
I
hear
mortgage-backed
securities
and
I'm
trying
not
to
freak
out,
but
they
really
kind
of
crashed
our
economy
and
so
I'm
struggling
to
understand
how
they're
safe
now,
how
we
should
trust
a
triple-a
rating
on
a
mortgage-backed
security.
Now,
what's
different
I'm.
D
So
glad
you're
bringing
that
up
it's
a
question
we
often
get
and
I
to
be
clear.
These
are
mortgages
that
look
like
they're,
first
of
all,
they're
guaranteed
and
backed
by
government
agencies
and
the
US
government
itself,
whether
it's
a
Ginnie
Mae
or
a
Fannie
Mae
or
a
Freddie
Mac,
and
these
are
not
in
securities
that
are
packaged
where
the
credit
rating
is
stacked
and
where
they
are
for
what
the
terminology
in
2008
was
subprime.
These
are
not
subprime
mortgages.
B
Mr.
chair
members,
in
the
government,
members
of
the
committee
I
think
one
thing
that's
important
to
emphasize
in
this
discussion
is
who
really
benefits
by
us.
Purchasing
these
securities
and
I.
Think
at
first
blush
you
and
when
I
have
talked
with
Si
ped
staff
about
this,
because
the
question
would
be
well.
Is
it
the
developer,
who
benefits
well?
Obviously,
mattone
exchange
was
built
a
number
of
years
ago.
B
It's
mortgage
has
become
a
security
that
is
bought
and
sold
right,
and
so
by
pooling
this
money,
I
think
for
the
mi3
initiative
and
what
we
see
as
a
city
is.
We
are
not
benefiting
a
particular
developer.
We
are
not
necessarily
benefiting
a
particular
development.
What
we
are
doing
collectively
with
these
institutions,
is
creating
more
of
a
market
for
Minnesota
oriented
securities
so
that
when
larger
firms
like
art
like
by
necessarily
RBC,
but
when
larger
firms
initiate
the
mortgage
process
and
underwrite
them,
it
can
come
in
a
slightly
lower
interest
rate
than
for
future
projects.
B
All
right
so
I
want
to
be
clear
about
the
fact
that
when
we
buy
a
security
that
especially
if
it's
done
and
most
of
these
are
done,
these
buy
and
sell
are
two
or
three
years
later
after
the
development
is
up
and
running.
We
are
not
benefiting
a
particular
development,
nor
we
are
endorsing
a
particular
development
we
currently
have
in
our
portfolio
a
fair
amount
of
mortgage-backed
securities
and
I
think
Brian
looked
and
at
one
point
in
time.
During
the
year
we
had
zero
more
back
securities
that
were
backing
Minnesota
mortgages.
D
B
Because
what
we
tell
our
investment
advisors
is
get
us
the
best
rate
possible
within
that
five-year
window.
I
think
the
benefit
of
going
with
this
longer
term
is.
It
opens
up
a
wider
universe
of
potential
securities
and
part
of
what
I
think
we
had
some
enthusiasm
for
staff
that
was
mentioned
earlier
was
not
just
multifamily
mortgages,
but
also
SBA
mortgages,
Small,
Business,
Administration,
guaranteed
mortgages,
which
I
think
we
have
very
little
of
any
of
those
in
our
portfolio,
because
those
typically
also
go
longer
than
five
years.
B
So
we
have
limitations
on
that,
and
then
we
can
again.
These
are
these
particular
securities
that
we're
talking
about
with
our
pRb
CR,
not
below
market
securities.
We
can
buy
and
sell
them
in
the
future.
So
for
some
reason
we'll
get
a
big
NOLA
opportunity.
We
can
sell
some
of
these
into
the
marketplace
that
won't
interfere
with
our
ability
to
have
more
specific
orientation
around
Minneapolis
projects.
I.
Think
generally,
we're
not
talking
about
Minneapolis.
Only
for
this
program.
B
We
are
talking
about
Lemoore
Minnesota
base,
but
that
some
of
the
feedback
that
we
could
from
you
in
terms
of,
if
there's
any
specific
parameters
or
questions
that
you
have
later
on
there
specific
parameters
but
I,
think
by
the
fact
that
it's
been
used
by
some
of
the
foundations
that
Katherine
mentioned.
That
tells
gives
me
some
comfort
that
those
are
also
fixed
in
some
income
securities
of
foundations,
who
are
also
very
interested
in
the
same
goals
that
we
have.
So
it's
not
helpful
that
I
miss
anything.
You
know
I.
E
I
think
to
define
the
yeah
I
would
start
with
the
physical
location
being
within
the
city
rather
than
the
state.
Even
so,
I
think
it's
very
much.
We
would
be
able
to
accomplish
it
within
the
city
and
to
focus
on
affordable
housing
or
small
business
development,
specifically
in
low
and
moderate
income
areas
and
I.
Think
it's
that
that's
about
all
you
need
and
then,
with
a
little
bit
of
the
adjustment
to
the
investment
policy
to
allow
it.
F
Yeah,
you
know
I,
guess
I'll.
Just
comment:
council
member
Fletcher's
concerns
you
know
as
as
an
african-american
I
mean
2008
and
the
ensuing
market
crash.
Pretty
much
was
the
largest
transfer
of
wealth
from
communities
of
color
in
the
history
of
this
country,
and
it
was
because
of
really
considerably
complicated
mortgage.
F
Family
members,
community
members,
my
people
lost
considerable
wealth
building
opportunities,
and
so
my
skepticism
lies
in
that
reality.
I
know.
Our
federal
government
has
opened
up
a
lot
of
new
opportunities
for
these
kinds
of
programs
to
operate
and
and
it
it
engenders
a
lot
of
skepticism.
For
me,
mr.
B
B
spend
all
mentioned,
we
operate
in
a
realm
of
purchasing
securities,
which
are
very
high
quality
and
so
any
of
the
new,
affordable
housing
projects
that
we
are
funding
through
our
affordable
housing
trust
fund
are
typically
using
a
Fannie
Mae
or
more
often,
a
jenny-may
structure
to
get
their
first
market
jiz.
Okay,
so
we
are
already
participating
in
a
you
know:
financing
of
these
types
of
developments.
B
B
But
if
you
want
us
to
come
back
to
you
with
some
parameters
around
even
more
about
options
of
those
kind
of
scenarios,
we
can
cook
up
lots
of
kind
of
wouldn't
even
financial
risk,
but
maybe
bad
publicity
risk
from
the
standpoint
of
the
city
of
some
of
these
things
happen
with
that
those
are
some
of
the
parameters
we
can
come
back
to.
You
on,
but
I
just
want
to
emphasize
that
as
a
part
of
our
mixture
in
our
general
investment
portfolios,
mbss
have
been
an
active
part
of
the
portfolio,
it
does
benefit.
B
We
think
the
whole
nation
in
creating
affordable
housing,
and
we
certainly
would
want
to
focus
our
investments
on
those
that
have
long
term
affordability,
as
was
such
a
shorter-term
and
portability.
So
at
a
basic
level,
it's
be
doing
better
than
we
have
been
doing
in
the
past
by
creating
that
marketplace.
I
think
we
clearly
hear
your
concerns
and
we
will
try
to
flesh
this
out
again.
B
F
G
You
chair
so
I
mean
I.
Think
just
you
know
to
expand
on
that.
I
think
I
think
it
would
be
very
helpful
to
understand
the
risks
and
to
do
it
to
do
a
little
bit
of
that
analysis,
both
both
in
terms
of
sort
of
optics
or
public
appearance
of
what
the
investment
is
that
we're
making
and
also
in
terms
of
the
actual
risk,
but
I
do
want
to
make
sure
I
understood
your
answer
correctly
to
see
if
we
can
relay
some
of
the
concerns,
because
I
know
a
decade
ago.
G
The
problem
was
that
mortgage-backed
security
is
when
they
get
bundled
you'd
end
up
with
a
whole
bunch
of
mortgages.
That
didn't
actually
have
a
lot
of
value
because
they
were
defaulting
and
so
did
I
understand
correctly.
So,
for
example,
on
page
five,
you
list
my
three
investments:
there's
86
loans
worth
16
million
dollars
to
low-income
single-family
homes.
Do
I
understand
correctly
that
those
are
those
mortgages
are
insured
in
some
ways,
so
that
were
protected
from
liability
exposure
area.
G
E
Are
and
a
hundred
percent
of
those
loans
are
in
securities
that
are
guaranteed
at
the
hundred
percent
level
by
Fannie,
Freddie
or
Jenny.
Mae
and
I
was
managing
portfolios
like
this
during
2007
8
9,
and
they
performed
very,
very
well
with
no
losses
and
in
fact,
price
appreciation
because
they
were
the
safer
place
to
be
so,
financing
properties
that
are
desirable
to
the
community
because
they
have
that
they
do
have
low
rents
and
the
mortgages
are
structured
in
a
vein,
irresponsible
way.
I.
G
E
E
F
E
It's
driven
by
the
size
of
the
portfolio,
so
if
you
were
going
to
do
ten
percent
of
the
portfolio
and
which
is
80
million-
and
you
would
want
not
to
be
overly
concentrated
in
a
given
security,
so
ideally
it
would
be
something
like
four
or
five
million
dollar
projects.
So
quite
small
would
be
ideal
unless
you
wanted
to
participate
in
portions
of
larger
projects,
but
still
focusing
on
one
hundred
percent
affordable
and
it
does
help.
E
B
Just
to
make
sure
council
vice-president
understand
your
question:
are
you
asking
partly
like
how
small
a
particular
apartment
building
can
be
in
order
to
have
this
type
of
security
yeah
so
house,
the
smallest?
So
these
are
pooled
investment,
investments
of
mortgages?
So
what's
what's
the
minimum
that
our
Freddie
orogeny
will
typically
do
in
size?
Is
it
five
units
20
units,
100
units.