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CITY COUNCIL AGENDA REPORT
MEETING DATE: March 11, 2013
AGENDA #: 10C
PREPARED BY: Frank Boyles, City Manager
PRESENTED BY: Frank Boyles
AGENDA ITEM: Consider Approvai of a Resolution Approving a Local Government Aid
Agreement with the Shakopee Mdewakanton Sioux Community (SMSC)
through December 31, 2015
DISCUSSION: Introduction
The purpose of this agenda item is to request City Council approval of a Local
Government Aid Agreement with the SMSC.
Historv
For more than 20 years, the SMSC has made escalating annual contributions to
the City of Prior Lake. When I arrived here on March 1, 1993, the City was receiv-
ing $60,000 annually. On July 30, 1993; February 20, 1996; August 6, 2001; and
December 7, 2005, the City and SMSC entered into agreements which resulted in
contributions to the City. The four agreements cited were known as, "Police and
Fire Protection Service Agreements."
The funds received by the city have been based upon different criteria over the
years. There was a period of time that the fee was based upon per call. Monthly
we would meet and discuss which calls should be charged for. The per call format
was abandoned because it became clear that to save money calls were not being
made to the city that should have. We then went to a flat rate. A portion of the flat
rate was based upon the cost of the liaison officer position hired using federal
grant dollars. The SMSC liaison position continues to be paid through the annual
contribution. The remainder of the funds received were ostensibly reimbursing fire
service costs.
In approximately 2008, the SMSC created its own fire department and ambulance
service. Despite the fact that a portion of the annual contribution was for "fire pro-
tection" the SMSC did not reduce the amount of their annual contribution to the
city. In fact, for the years 2009, 2010, 2011 and 2012, the SMSC continued their
contributions to the City without an executed agreement. The attached table dis-
plays the funding received through this mechanism only. During that period of
time, the contribution became known as "local government aid."
Current Circumstances
Over the years the SMSC, City of Shakopee and Scott County have also devel-
oped collaborative relationships. Accordingly, the SMSC intends to enter into a
local government aid agreement with Shakopee and Prior Lake. They have al-
ready done so with Scott County.
The agreement proposed for execution is much like the agreement we executed
from 1993 to 2008. The essential provisions of the agreement are:
• The City agrees to continue to provide police and other local government
services at a level not different than that provided to the remainder of the
community as required by law.
• The term of the agreement is three years or through December 31, 2015.
• The SMSC agrees to pay the City $400,000 annual for 2013 and 2014 in
quarterly installments.
• In 2015, the amount becomes $420,000.
• The City must identify the sources of the money in its budget.
• Language is included addressing limitations on the City's ability to respond
and the implications this may have.
• Tribal members may sue the City just as any other resident may sue the
City for failure or late response.
• The agreement can be terminated with 30 days written notice by either
party.
ISSUES: The SMSC has provided the City with annual contributions on time each year with
and without the benefit of an agreement. Under the agreement, the SMSC does
not waive sovereignty. In short, the City may not sue them for non-payment or
any other violation of this agreement. Over 20 years of experience suggests that
this is not a problem.
The local government aid agreement is only a fraction of the contributions the City
has received from the SMSC and we are working on more regularly. For Council
information I have included a list of past contributions we have received over time.
The Local Government Aid Agreement is really the tip of the iceberg in the rela-
tionship we have with the SMSC. We are discussing numerous additional coop-
erative projects in the following areas for this and future years:
• Pike Lake Park development
• Infrastructure construction responsibility on land they purchase
• Planning and construction of joint well and water plant in both north and
south land holdings
• Economic development marketing
• Road and trail construction contributions
• Equipment purchases
• Fire Department training
• Ongoing use of mobile command truck
• Cooperative Facilities management
The City of Prior Lake is legally obligated to provide services to the SMSC which
are commensurate with the services provided in the rest of the City whether or not
they make any sort of contribution. The SMSC does not use City services for
streets, sewer, water, parks and a whole host of other local services. Instead they
provide their own. They do utilize city police services as they have elected not to
create their own police department although they have an 80 person security
corps which performs many police functions on their behalf. We also work coop-
eratively with their fire department on a mutual aid basis.
n
FINANCIAL Much like the property tax system, the City operates within the legal strictures es-
IMPACT: tablished in State and Federal law. Our approach has been and continues to be
to build a mutually beneficial cooperative relationship from which both the City and
the SMSC can benefit now and for the future.
ALTERNATIVES: 1. Motion and second to adopt a resolution approving the Local Government Aid
Agreement and authorizing the Mayor and City Manager to execute same.
2. Take no action and provide staff with direction.
RECOMMENDED Alternative 1.
MOTION:
Contributions to the City from SMSC
1993 – Present
$5,000 Tri-City Tactical Team Ballistic Vests and Helmets
$15,000 Fire Department Class A uniforms
$6,000 All-terrain vehicle
$25,000 Paid for one-third of skateboard park
$25,000 Paid for half of outdoor theatre
$30,000 Paid for 15 replacement AEDs for City Police and Fire Departments
$15,000 Jointly purchased street maintenance equipment
$30,000 Donated Employee Assistance Program to City for ten years
$25,000 Donated Cairns-Iris Infrared Detector
$450,000 Donated for field lighting at Thomas Ryan Memorial Park
$14,000,000 Constructed Dakotah Ice Center at City request
$150,000 Provided one time gift
Annual Contributions
2000 – 2013
Year Amount
2000 $300,000
2001 $320,000
2002 $325,000
2003-2005 $340,000
2006-2009 $360,000
2010-2012 $380,000
2013-2014 $400,000
2015 $420,000
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4646 Dakota Street SE
`�'IN�so`��' Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION APPROVING THE LOCAL GOVERNMENT AID AGREEMENT BETWEEN THE CITY
OF PRIOR LAKE AND THE SMSC AND AUTHORIZING THE MAYOR AND CITY MANAGER TO
EXECUTE THE DOCUMENT ON BEHALF OF THE CITY.
Motion By: Second By:
WHEREAS, For more than twenty years the City of Prior Lake and Shakopee Mdewakanton Sioux
Community (SMSC) have had a tradition of cooperation and collaboration; and
WHEREAS, Over that period of time the City and SMSC have entered into four agreements known as
Police and Fire Protection Service Agreements; and
WHEREAS, The City and SMSC desire to enter into a similar agreement entitled Local Government Aid
Agreement; and
WHEREAS, The city is obliged by law to provide services to the SMSC to the same extent it does to the
rest of the city and the SMSC is not obliged to pay for such services.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Local Government Aid Agreement dated March 11, 2013 is hereby approved.
3. The Mayor and City Manager are authorized to execute the Agreement on behalf of the City.
PASSED AND ADOPTED THIS 11� DAY OF MARCH 2O13. '�
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
DRAFT
LOCAL INTERGOVERNMENTAL AID AGREEMENT
BETWEEN
THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
AND
THE CITY OF PRIOR LAKE
This Intergovernmental Agreement is made this day of , 2013, by
and between the Shakopee Mdewakanton Sioux Community, a sovereign Indian Tribe, federally
recognized and organized under the Indian Reorganization Act of 1934, 25 U.S.C. § 476
(hereinafter the "Community") and the City of Prior Lake, a municipal corporation in Scott
County, Minnesota (hereinafter the "City").
WHEREAS, the Community is a federally recognized Indian Tribe with the inherent
power to enter into agreements with local governments; and
WHEREAS, the City is a body politic organized under the laws of the State of
Minnesota; and
WHEREAS, the City recognizes that the Community's sovereignty accords the
Community a unique legal status which requires the County to interact with the Community on a
government-to-government basis; and
WHEREAS, the Community and the City desire to maintain a strong and mutually
supportive intergovernmental relationship whereby the City provides to the Community police
and other local governmental services as required by law and the Community assists the City in
providing funding for such services; and
WHEREAS, the Community maintains a full service fire and emergency services
department which reduces the City's costs associated with providing the Community fire and
emergency services; further, pursuant to the terms of a Mutual Aid Agreement, the Community's
fire and emergency services department provides support to the City; and
WHEREAS, the Community and the City entered into the Police and Fire Protection
Service Agreements dated July 30, 1993, February 20, 1996, August 6, 2001, December 7, 2005;
and
WHEREAS, the Community and the City desire again to enter into a similar agreement
for Calendar years 2013 through 2015, and to also wish to acknowledge the relationship between
the Community and the City for calendar years 2009 through 2012 and the payments made by
the Community to the City for those years; and
WHEREAS, the Community and the City have determined to renegotiate various terms
of an agreement and that this Agreement shall replace any and all previous agreements between
the two.
Intergovernmental Agreement
City of Prior Lake - 2013
Now therefore, the parties hereto agree as follows:
1. Continued Provision of Services. The City shall continue to provide police and
other local governmental services to the community at a level not different than
that provided to the balance of the City's service area as required by law.
2. Term and Termination. The term of this Agreement shall be three years.
Subject to and upon completion of the requirement for mediation set forth in
paragraph 9 hereof, this Agreement may be terminated by either party by
providing a thirty (30) day written notice. Upon termination of this Agreement,
the Community shall pay to the City that portion of the fee due for the year of
termination pro-rated to the date of termination.
3. Pavment for Services.
a. Fee Amount for Years 2013 and 2014. The Community shall pay the City
a fixed fee of Four Hundred Thousand Dollars ($400,000) per year each
for the first and second year of the agreement term. Fee distributions to
the City shall be made in equal quarterly payments of One Hundred
Thousand Dollars ($100,000) for the first and second year no later than
fifteen days after the beginning of each new calendar quarter.
b. Fee Amount for the Year 2015. The Community shall pay the City a fixed
fee of Four Hundred Twenty Thousand Dollars ($420,000) for the third
year of the agreement term. Fee distributions to the City shall be made in
equal quarterly payments of One Hundred Five Thousand Dollars
($105,000) no later than fifteen days after the beginning of each new
calendar quarter.
4. Conditions. Payment of fees by the Community to the City shall be subject to the
following conditions:
a The City shall list the amount of the Community's annual fee and attribute
the payment of the fee to the Community in the description of the City's
annual budget and any summary thereof that is made available to the
public or otherwise published.
5. Limitation on Abilitv of Citv to Respond. It is hereby understood and agreed to
by the parties that in certain circumstances the ability of the City to respond to
incidents within the Community service territory may be limited by a variety of
factors including but not limited to availability of personnel and equipment, road
conditions, the involvement of the equipment and personnel in other incidents in
the City or the townships or in other entities to which City is responding by virtue
DRAFT
Intergovernmental Agreement
City of Prior Lake - 2013
of mutual aid agreements, under statute or otherwise in the interest of public
safety, or by other circumstances beyond the control of the City.
6. Limitation on Liabilitv of the Citv for Failure to Resnond. The Community
agrees that the City's liability to the Community for any act or omission of the
City's Fire Department or rescue team to respond to a call or to arrive in time to
prevent the destruction of property or personal injury, including death, which
might occur and the City's liability to the Community for any act or omission of
the City's Police Department to respond to a call for service shall be no greater
than and no different from the City's legal liability to any other citizen of the City.
The parties agree that the City's liability is limited as provided by law including
but not limited to Minnesota Statutes Chapter 466. The parties hereto
acknowledge that the Community cannot restrict the right of any individual
member of the Community to bring suit for whatever reason. The parties agree
that neither party shall indemnify the other party from and hold the other party
harmless against any cause of action, suit, or proceeding which an individual
member of the Community might bring against either party for any act or
omission or for any actions taken in association with a response by the City to an
incident.
7. Notice. Notice provided under this Agreement shall be in writing, signed by the
officers signatory to this Agreement or their successors, and shall be sent by
Certified Mail, Return Receipt Requested, to the Parties at the following
Addresses:
To the Community:
Charlie R. Vig, Chairman
Shakopee Mdewakanton Sioux Community
2330 Sioux Trail N.W.
Prior Lake, MN 55372
With a Copy to:
Tribal Administrator
Shakopee Mdewakanton Sio� Community
2330 Sio� Trail N.W.
Prior Lake, MN 55372
To the City of Prior Lake:
City Manager
City of Prior Lake
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Intergovernmental Agreement
City of Prior Lake - 2013
4646 Dakota Street S.E.
Prior Lake, MN 55372
8. Authorization. The Community's General Council authorized the Tribal
Chairman to enter into an agreement with the City by passing General Council
Resolution 11-14-95-002, and General Council Resolution 09-11-01-003.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed.
Shakopee Mdewakanton Sioux Community Approved as to form:
By:
Charlie R. Vig, Tribal Chairman Attorney for Community
Date: Date:
City of Prior Lake Approved as to form of execution:
By:
Mayor Attorney for City
Date: Date:
By:
City Manager
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Intergovernmental Agreement
City of Prior Lake - 2013
Date:
DRAFT