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Home My WebLink About5G Local Government Aid Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 11, 2017 AGENDA #: 5G PREPARED BY: FRANK BOYLES, CITY MANAGER PRESENTED BY: FRANK BOYLES AGENDA ITEM: CONSIDER APPROVAL OF LOCAL INTERGOVERNMENTAL AID AGREE- MENT BETWEEN THE CITY OF PRIOR LAKE AND SHAKOPEE MDEWAKANTON SIOUX COMMUNITY (SMSC) FOR 2018 AND 2019 DISCUSSION: Introduction The purpose of this agenda item is to request City Council approval of a Local Government Aid Agreement with the SMSC for 2018 and 2019. History 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.” 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. In fact, for the years 2009, 2010, 2011 and 2012, the SMSC continued their contributions to the City without an executed agreement. During that period of time, the contri- bution became known as “local government aid.” For the last number of years, we have had an agreement in place. Current Circumstances Over the years the SMSC, City of Shakopee and Scott County have developed collaborative relationships. Accordingly, the SMSC has entered into local gov- ernment aid agreements with Shakopee and Scott County as well. The agreement proposed for execution is much like the agreements we have pre- viously executed. 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 two years or through December 31, 2019. • The SMSC agrees to pay the City $500,000 for 2018 and $ 530,000 for 2019 in quarterly installments. • These amounts do not include the $70,000 per annum that the SMSC is providing to the city from 2017 through 2019 for a Drug Task Force Officer. • The City must identify the sources of the money in its budget. 2 • 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 together more regularly for our mutual advantage. For Council information, I have included a list of contributions/ collaborations we have achieved 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 and in some cases, have completed numerous additional cooperative projects in the following areas: • Pike Lake Park development • Provision of infrastructure on purchased land • Joint well and water plant agreement • Economic development marketing through RiverSouth • Road reconstruction contributions • Equipment purchases • Fire Department training • Ongoing use of mobile command truck • Facilities management • Public safety equipment like AED’s • Stemmer Ridge Road / New County Road 81 • Trail funding 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. 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 police services as they have elected not to create their own police department. We also work cooperatively with their fire department on a mutual aid basis. FINANCIAL IMPACT: Much like the property tax system, the City operates within the legal strictures es- tablished for it by 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. ALTERNATIVES: 1. Motion and second to adopt a resolution approving the Local Government Aid Agreement for 2018 and 2019 and authorizing the Mayor and City Manager to execute same. 2. Take no action and provide staff with direction. 3 RECOMMENDED MOTION: Alternative 1. 4 Contributions to the City from SMSC $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 $10,000 Donated Carnes 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 +/- $400,000 Annually in local government aid funds 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A LOCAL GOVERNMENT AID AGREEMENT WITH THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY (SMSC) FOR 2018 AND 2019 Motion By: Second By: WHEREAS, The City of Prior Lake and SMSC are engaged in numerous cooperative endeavors; and WHEREAS, Both parties seek to be good neighbors to their mutual benefit; and WHEREAS, More than twenty years the SMSC has provided financial payments to the city; and WHEREAS, Both parties desire to continue this practice; and, 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 City Council hereby approves the local government aid agreement dated December 11, 2017 for the years 2018 and 2019. 3. The Mayor and City manager are hereby authorized to execute the agreement on behalf of the city. PASSED AND ADOPTED THIS 11th DAY OF DECEMBER 2017 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager