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Home My WebLink About5F Intergovernmental Donation Agreement Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 4, 2019 AGENDA #: 5F PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AN INTERGOV- ERNMENTAL DONATION AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY FOR THE CONSTRUCTION OF A TRAIL ALONG COUNTY ROAD 21 FROM FOUN- TAIN HILLS DRIVE TO CSAH 42 GOAL AREA AND OBJECTIVE: DISCUSSION: Transportation & Mobility 1. Integrate trails to link neighborhoods with city and regional assets. Introduction The purpose of this resolution is to authorize the Mayor, City Manager and City Attorney to execute an Intergovernmental Donation Agreement between the City of Prior lake and the Shakopee Mdewakanton Sioux Community (SMSC). History In November of 2018, the Shakopee Mdewakanton Sioux Community (SMSC) announced that they would be providing grants to public entities for the purpose of constructing new trails. The total amount of funds that they were providing was $300,000 and the maximum amount any one public entity could receive was $100,000. The conditions of the grant were that the public entities had to provide a minimum 20% match and that the trails had to be completed in 2019. The City applied for the grant and requested funding for the construction of new trail along the west side of County Road 21 from CSAH 42 south to Fountain Hills Drive. This segment is the last gap in a 7-mile trail system along County Road 21 through the City of Prior lake. On January 7, 2019 the City was notified by the SMSC that we had been approved for the maximum trail grant of $100,000. Current Circumstances As part of the grant process, the SMSC requires that the City enter into an Inter- governmental Donation Agreement. The purpose of the agreement is four-fold. First, the City is acknowledging receipt of the $100,000. Second, the City must use the $100,000 solely for the construction of the trail along County Road 21 from CSAH 42 south to Fountain Hills Drive and the City will be responsible for the maintenance of the trail. Third, if the City does not use the entire $100,000 the balance of the funds must be returned to the SMSC. Fourth, the City indem- nifies the SMSC from any legal responsibilities associated with constructing the trail. 2 Conclusion City Staff recommends execution of the Intergovernmental Donation Agreement with the SMSC. ISSUES: The City Council authorized the preparation of plans and specifications for this segment of trail on January 22, 2019. Those plans are well under way and staff does not anticipate any concerns with delivering the construction of the trail in 2019. FINANCIAL IMPACT: The cost estimate that was prepared as part of the application to the SMSC for the grant broke down the project costs as follows: Construction Costs $104,150.00 Contingency (10%) $ 10,415.00 Subtotal $114,565.00 Indirect Costs (28%) $ 32,078.20 Total $146,643.20 Based on this estimate, the City will be contributing $46,643.20 towards the pro- ject cost which exceeds the required 20% match. The City’s portion of the project cost will be funded through the City’s Park Dedi- cation Fund. Park Dedication Funds can be used for the construction of new park and recreation facilities, including trails. ALTERNATIVES: 1.Motion and second to approve a resolution as part of the consent agenda au-thorizing the Mayor, City Manager and City Attorney to execute an Intergov-ernmental Donation Agreement with the Shakopee Mdewakanton Sioux Community. 2.Motion and second to remove this item from the consent agenda for addi- tional discussion. RECOMMENDED MOTION: Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ RESOLUTION AUTHORIZING THE MAYOR, CITY MANAGER AND CITY ATTORNEY TO EXECUTE AN INTERGOVERNMENTAL DONATION AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY FOR THE CONSTRUCTION OF A TRAIL ALONG COUNTY ROAD 21 FROM FOUNTAIN HILLS DRIVE TO CSAH 42 Motion By: Second By: WHEREAS, The City received a grant from the Shakopee Mdewakanton Sioux Community for the construction of a trail along County Road 21; and WHEREAS, The Shakopee Mdewakanton Sioux Community requires the City enter into an Intergovernmental Donation Agreement in order to receive the grant; and, WHEREAS, The City authorized the preparation of plans and specifications for the construction of the trail on January 22, 2019. 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 Mayor, City Manager and City Attorney are authorized to execute the Intergovernmental Donation Agreement with the Shakopee Mdewakanton Sioux community for the County Road 21 Trail Improvement Project. 3. The funding for the City’s portion of the project costs will be drawn from the Park Dedication Fund. PASSED AND ADOPTED THIS 4th DAY OF MARCH 2019. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Michael Plante, City Manager INTERGOVERNMENTAL DONATION AGREEMENT BETWEEN THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY AND THE CITY OF PRIOR LAKE This Intergovernmental Agreement is made this ______ day of ________________, 2019, 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 has donated to the City funds in the amount of $100,000; and WHEREAS, the City has agreed to use the donated funds for the construction of a 8’ wide 1,060’ long bituminous trail section between Fountain Hills Road and CSAH 42 as shown on attached Exhibit A; and WHEREAS, the Community and the City seek to set forth their understanding relating to said donation and its use. NOW THEREFORE, for and in consideration of the mutual undertakings, covenants and agreements of the parties herein set forth, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, the parties agree as follows: 1. Donation. The Community has made a cash donation to the City in the amount of $100,000. 2. Use of Donation. The City agrees to use the funds to construct an 8’ wide 1,060’ long bituminous trail section between Fountain Hills Road and CSAH 42 as shown on attached Exhibit A (the “Project”). The trail shall be constructed in accordance with the City’s trail standards. The City further agrees to be solely responsible for the continued maintenance of the trail. 3. Refund. If, upon completion of the Project, the City has not expended all of the donated funds, the City shall refund such excess funds to the Community within 30 days of the completion of the Project. If the City fails to construct the trail, the entire amount shall be reimbursed to the Community without undue delay. 4. Indemnity. Except for the donation by the Community for the Project, the Community shall bear no responsibility for the Project and the City hereby agrees to fully defend, indemnify and hold harmless the Community and all of the Community’s departments, agencies, officers, agents, and/or employees from all claims, losses, suits, damages, liabilities and expenses of whatever kind or nature, including reasonable attorney’s fees, arising out of or resulting in any way from any negligent, reckless or intentional act, error, omission or mistake and/or strict liability of the City, its departments, agencies, officers, agents, employees, contractors and/or anyone for whose acts the City is legally liable and arising out of or relating to the Project or the performance by the City of this Agreement. 5. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed. Shakopee Mdewakanton Sioux Community Approved as to form: By: _______________________________ By: _______________________________ Charles Vig, Tribal Chairman Attorney for Community Date: ______________________________ Date: ______________________________ City of Prior Lake Approved as to form of execution: By: _______________________________ By: _______________________________ Kirt Briggs, Mayor Attorney for City Date: ______________________________ Date: ______________________________ By: _______________________________ Michael Plante, City Manager Date: ______________________________