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HomeMy WebLinkAbout_06 06 2022 City Council Agenda Packet 4646 Dakota Street SE Prior Lake, MN 55372 City Council Meeting at City Hall Monday, June 6, 2022 City Council Work Session Agenda 5:00 p.m. 1.DISCUSSION ITEM(S) A.Wagon Bridge Peninsula Access and Grainwood Park Expansion Discussion (30 Mins) B.Long Range Financial Planning Update (45 Mins) C.Emerging Issues (15 Mins) City Council Meeting Agenda 7:00 p.m. Reports included with this agenda can be found in the Document Center by clicking here or at www.cityofpriorlake.com \Doc Center\City of Prior Lake\City Council, Planning Commission and Advisory Committees\City Council\City Council Agenda Packets\2022\06 06 2022 1.CALL TO ORDER and PLEDGE OF ALLEGIANCE 2.PUBLIC FORUM The public forum is intended to afford the public an opportunity to address concerns to the City Council. The public forum will be no longer than 30 minutes in length and each presenter will have no more than five (5) minutes to speak. Topics of discussion are restricted to City governmental topics rather than private or political agendas. Topics may be addressed at the public forum that are on the agenda. However, topics that are the subject of a public hearing are best addressed at the public hearing, not at public forum. Therefore, topics may not be addressed at public forum if: (I) the topic has been the subject of a public hearing before the City Council or any City Advisory Committee and the Council has not acted on the topic; or (ii) if the topic is the subject of a public hearing for which notice has been published in the City’s official newspaper, or a continued public hearing or public information hearing before the City Council or any City Advisory Committee. During public forum, a member of the public may request that the City Council consider removing an item from the Consent Agenda following the procedure set forth in Section 401.5. The City Council may discuss but will not take formal action on public forum presentations. Matters that are the subject of pending litigation are not appropriate for the forum. 3.APPROVAL OF AGENDA 4.MINUTES A.Approval of the May 16, 2022 City Council Minutes 5.CONSENT AGENDA Those items on the Council Agenda which are considered routine or non-controversial are included as part of the Consent Agenda. Unless the Mayor or a council member specifically requests that an item on the Consent Agenda be removed and considered separately, items on the Consent Agenda are considered under one motion, second and vote. Any item removed from the consent agenda shall be placed on the council agenda under Items Removed Consent Agenda Items. A.Approval of Claims Listing B.Resolution Approving 2022-2023 Liquor License Renewals C.Approval of 2022 Refuse Hauler License Renewal D.Approval of April 2022 Treasurer's Report E.Approval of the Metropolitan Council for Water Efficiency Grant Agreement F.Approval of Fire Station 1 Generator Purchase G.Resolution Approving a Temporary Liquor License for Lakefront Music Fest on July 8 & 9th, 2022 H.Resolution Approving a Temporary Liquor License for Boathouse Brothers Brewing Company on Saturday October 8, 2022 I.Resolution Approving Prior Lake Police Department Kitchen Remodel 6.PRESENTATIONS 7.PUBLIC HEARINGS A.Consider Vacating a Portion of a Drainage and Utility Easement at 1563 Belmont Avenue NW B.Consider Vacating a Portion of a Drainage and Utility Easement at 17776 Meadows Way SE 8.OLD BUSINESS 9.NEW BUSINESS A.Resolution Approving a Final Plat, Final Planned Unit Development Plan and Development Agreement for Spring Lake Ridge 10.REMOVED CONSENT AGENDA ITEMS 11.COUNCILMEMBER LIAISON UPDATES / COUNCILMEMBER REPORTS 12.OTHER BUSINESS 13.ADJOURNMENT ITEM: 1BCITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: CathyErickson, Finance Director PRESENTED BY: CathyErickson AGENDA ITEM: Worksession Financial Planning Update GOAL AREA High-ValueCityServices OBJECTIVE: 1. Establishfinancial stability forallfunds. 2. Design acomprehensive funding strategy forcapitalneeds. 3. Ensure sufficient resources andstaffing tomeetservice demands. 4. Attract, retain, andtrainahighcaliber workforce toensurehigh- qualityservices. RECOMMENDED ACTION: Staffisworking toidentify andaddress funding needs forthecitytomaintain service levels, address theneedsofagrowing city, andprovide budget stability byminimizing annualvariation inthetaxlevy. Theprimary cityservice priorities tobefunded include personnel, equipment replacement, parkandfacilitiesreplacement/improvement, pavement management, andEDA funding. Thefinancial planalsoincorporates theimplementation ofafull-timefirefighter staffing model fortheFiredepartment. Based onthecommunity expectation andservice levels, staffhas prepared afive-year financial plan. StaffislookingforCouncil feedback anddirection onthe following items: DoesCouncil support transition tofull-timefirestaffing through aphased taxlevyincrease over fouryears? DoesCouncil support thefinancial planning assumptions thataredrivingthe2023-2027 taxlevyandtaxrates? BACKGROUND: Thepurpose ofthisworkshop itemistoprovideanupdate onthefollowing items: Property TaxProjection Discussfunding forthetransition toFull-timeFiredepartment staff DebtandDebtLevy Impacts FINANCIAL IMPACT: Estimated marketvalue andtaxcapacity: Estimated market valuehasincreased $939million (18.4%) from2022 to2023. Preliminary taxcapacity hasincreased 22.5% from2022 to2023. Based onthe2022 taxrate, new construction willconservatively generate anestimated $328,000 inproperty taxes. This equates toabout2.0% ofthe2023property taxlevy. CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 Item1B Page | 2 Basetaxlevyconsiderations: Thefollowing chart provides baseconsiderations forestablishing the2023 taxlevybasedon factorsthatimpactthePriorLakecommunity: Growth (NewConstruction) 2.0% CPI-U (MSP) 8.2% DebtService * -0.3% Base Property Tax Levy 9.9% Considerations Thedebt service % changeisestimated basedonthe2023 planned debtissuance. Theannualdebt service of theexisting debtservice rolling offisslightly higherthan theproposed2023bondissuedebt service. 2023Budget TaxLevyImpacts: 2023draftbudgets willbeentered inthefinancialsystembymid-June. Knownimpacts tothe 2023 budget areshownbelow: PrioritiesandFunding: Thefollowing plansandpriorities havebeen included inthefive-yearplan: Funding forstaffing needsperthe2023-2027Personnel Plan toreflecttheimpact of community growthandtomaintain existing levels ofservice. Staffing priorities are determined bytheCityManager and brought totheCouncil on anannual basisviaa Personnel Planwork session. SeeAttachment 2 forPersonnel Plan presented tothe CouncilonApril18, 2022, forjustification forposition adds. Commitments tolong-term capital plans (CIP) Debtobligations (existing andproposed) Funding tosupport theriseincosts forgoodsandservice based oncurrent inflation indicators. Estimated annual building permits of150/year Estimates forrevenues/expenditures tomaintain theGeneral fundbalance between 40%- 50% EDAfunding Transition tofull-timefirefighter staffing model Highlighted taxlevyimpacts byyeararesummarized onAttachment 1 Transition tofull-timefirefighter staffing model: Themost significant staffing impact proposed inthefive-yearplanistheadditionoftwelve (12) Firefighters tosupport thetransition tofull-timefire fighter staffing model. Thecurrent PLFD staffing model reliesonPaid-On-Call (POC) firefighters to respond tocalls forservicevia pager/phone which isachallenging deployment model duetomostPOC firefighters notworking withinthecityduring theday. Recruitment andretention arealso problems forPLFD asclass sizeshavedecreased significantly over theyears. From2017-2021, 27firefighters resigned from PLFDwhich ismore thanhalfthetotal budgeted positions forPLFD. During thatsame time, PLFD wasonlyabletohirenineteen firefighters tofillthevacancies. Thetimecommitment forPOC Item1B Page | 3 firefighters issignificant whichisdifficult onPOC firefighters withfull-timeemployment and families. Inaddition, current response times tostructure fires meettheNational FirePrevention Association NFPA) 1720 Standard only9% ofthetime. Atthesame time, PLFD callvolume hasgrown by 55% infiveyearsfrom440in2016to682in2021. Thisnumber willcontinue toincrease dueto therapidgrowth ofthearea. Withaseventy-foursquare mileserviceareaandapopulation of 40,000 whenlooking atourcombined service areawithCreditRiver andSpring Lake Township, transitioning toafull-timefiredepartment isalogical evolution forPLFD. In2022, thecityapplied forafederal Staffing forAdequate FireandEmergency Response SAFER) Grant totransition toafull-timefiredepartment. Thegrantwould payforthreeyears of salary/benefits fornewlyhiredfull-timefirefighters. Thegrantapplication requested three full-time firecaptains andninefull-timefirefighters toprovide round theclockservicetothePLFD service areabeginning in2023. Thefull-timefirefighters willallowPLFD to: 1. Establish a24x7x365staffed engine and station: 1Captain and3Firefighters pershiftprovide aneffectivereactionforce forPLFD’scall volume. Improve response times forthefirstduetruck. Current turn-outtimeaverages 6 minutes percall. Full-timecrews would reduce turn-outtime by4-5minutes. Limitfirespread. Increasethesurvivability ofamedical patient. 2. Deliver highperforming publiceducation: Mostpubliceducation requests gounfulfilled duetolimited staffing. 3. Perform lifesafety inspections andcode compliance: Duetoinadequate staffing, lifesafety andcodecompliance inspections arenot happening. Full-timefirefighters willperform regular inspections oftargethazards andhigh-volume occupancies asthegrowth oftheareawillincrease thenumber ofthese types of structures. 4. Conduct andcreatepre-plans: Pre-planning ontarget hazardsisnotoccurring duetostaffinglimitations, whichmeans PLFDresponds tohazardous structures withlimited information. Full-timestaffwilldevelop apre-planprogram, whichwillincrease thesafetyof residents andresponders alike. 5. MeetNFPA 1720standards. 6. Improve medical response asfull-timefirefighters arerequired tobecertified EMTs. PLFD willstillrequire POCfirefighters tosupplement ‘allcalls’ andbackfillabsences ofthefull- timecrews. Thecurrent PLFDPOC firefighter rosterwillbereduced through attrition/retirement. PLFDwillevaluate thePOCstaffing needsonanongoing basis. Staffhasdiscussed several funding options forthefull-timefirefighter staffingmodel. Theoptions depend ongrant funding, taxlevyincrease andadditional Fire & Rescue Aidrevenue: Option 1withSAFER grantaward: The cityhasappliedforthefederal SAFERgrant thatwould fund100% ofthenew full-timefirepersonnel wagesand benefits forthreeyears (2023-2025). Thefirefighter grantfunding willonly beavailable forthreeyears, sostaffisproposing to 2023202420252026 Year1TransferOutExpenditureforStreetProject - MarshDriveNEExt. 400,000Year2TransferOutExpenditureforFacilitiesCapitalMaintenance500,000Year3TransferOutExpenditureforEquipment - FireLadderTruck - 300,000 1,200,000Year4Firefighterpersonnelcosts1,600,000TotalExpenditures400,000 800,000 1,200,000 1,600,000 PhasedTaxLevyIncreasetofundfirefightersby2026 400,000 400,000 400,000 400,000 Item1B Page | 4 incrementally increasethetaxlevytoprepare forthecityfullyfunding thefirefighters in2026. This would bedonethrough anannual transfer outoftheGeneral Fund. Since thisfunding isin preparation ofour2026 needs, itwillbeusedforcapital project debtreduction untilneeded in 2026forpersonnel funding. Bydoing this, thecitywillpayforcapitalpurchases onapaygobasis, instead ofissuing debt. Thiswillhelpusminimize future bondissues. Thephased taxlevy increase isshowninthetablebelow: Fire & Rescue Services Revenue: Thecosts forthefirefighters areincludedinthecostcalculation fortheFire & Rescue Services withtheCityofCreditRiverandSpringLakeTownship. However, sincethecityanticipates 100% grant funding in2023-2025, therewillbenoincremental fire service revenue received forthese years. Fire agreement revenue would increase by approximately $500kin2026. Option 2 -noSAFER grant award: Ifthecitydoesnotreceivethefederal SAFER grant, thecity could stillincrementally increase thetaxlevyby $400k/year, likeOption 1, toprepare forfull-time firefighters in2026. This isthesame taxlevyimpactasOption1. However, thefirefighters would notbehireduntil 2026. Staffdiscussed incrementally hiringthree firefighters peryear toreachtwelvefull-time firefighters by2026, however, theFire Chiefindicated thatthiswillnotaddress thedeficient emergency response timeandnon-emergency servicelevelissuestheFire Department is presently experiencing. Additionally, 3-4paid on-call (POC) firestaffwouldbeneeded foreach shift, onadaily basis, toprovide adequate emergency andnon-emergency coverage. Currently theFireDepartment isfindingitverydifficult tohireandretain POCstaff. TheFireDepartment issettoloseanadditional 3-4POCFirefighters in2022bringing thetotalPOC staffto33 Firefighters. Theauthorized POCstaffnumber is50. Asking thecurrent POC stafftoschedule shiftworkalongwith other Department responsibilities, whilebalancing theirpersonallives, is unrealistic andaset-upforfurther failure ofthePOCmodel. Option 3 -noSAFERgrant award: Ifthecitydoes notreceive thefederalSAFER grant, thetax levycouldbeadjusted tohirethetwelvefirefighters in2023. Thiswould resultinanestimated tax levy of12%. (Under thisscenario, thecitywould alsoincreasethefirecontractrevenue itreceives from theCityofCredit River andSpringLakeTownship, which isreflected inthe12% taxlevy impact.) Thisoption hasnotbeen discussed withtheCityofCredit RiverorSpringLake Township yet. Based onCouncil direction, itwouldbediscussed atourannual summerbudget discussion meeting. CityTax Levyand TaxRateProjections: Based uponthefactorsnotedabove andsummarized onAttachment 1, theprojected taxlevies andtaxratesareshown below: Thefull-timefireportion oftheprojected taxlevybyyearisas follows: PROPERTYTAXPROJECTIONSUMMARY2022Valuation20232023MedianValued - Residential $375,0005.4%$62Residential $600,0007.6%2022$14820232024202520262027SUMMARYOFCHANGEINTAXLEVIESResidential $1,000,0006.2%$216Residential $1,500,0005.6%$302GENERALFUND1,217,000 1,516,000 1,287,000 955,000 983,000Commercial $1,000,0004.4%$273TaxesCommercial $2,000,0004.4%$547DEBTSERVICEFUNDS (57,000) (22,000) 176,000 469,000 414,000Commercial $3,000,0004.4%$820Commercial $4,000,0004.4%$1,094OTHERFUNDS Annual $ Change inTotalCIPFunding135,000 145,000 150,000 160,000 160,000EDAFund11,000 12,000 11,000 12,000 12,000OTHERFUNDS146,000 157,000 161,000 172,000 172,000 Item1BTOTALCHANGEINTAXLEVIES1,306,000 1,651,000 1,624,000 1,596,000 1,569,000 Page | 5TOTALTAXLEVY15,253,00016,521,00018,135,000 19,578,00021,394,00023,213,000 CHANGE INTAXLEVYFORFTFIRETRANSITION- %2.62%2.23%1.89%-0.69%0.08% 2023: 2.6% CHANGE INTAXLEVY - ALLOTHER NEEDS -%5.94%7.74%7.04%8.74%7.24% TOTALCHANGE INTAXLEVY - %6.55%8.56%9.97%8.92%8.05%7.32% 2024: 2.2% TAXCAPACITYTAXRATE - CITY30.47%26.88%28.02%29.02%29.68%30.46% Annual % Change-11.77%4.25%3.55%2.27%2.64% 2025: 1.9% TAXCAPACITYTAXRATE - EDA0.74%0.62%0.60%0.58%0.57%0.56% Annual % Change-16.75%-2.95%-2.53%-2.90%-1.77% 2026 (.69%) (reduction intaxlevyasincrease inFireAgreement revenuebegins in2026) Asmentioned above, estimated marketvalue hasincreased 18.4% from 2022 to2023. The estimated increase inmarketvaluefor2024-2026is6% peryear. Forfinancial planning purposes, thisisreflected inthecalculation ofestimated taxes. Thetaxrateisplanned todecrease astheproposed levychange islessthantheestimated change intaxcapacity. Thisisgood news, and itwillminimize theimpactonanindividual property owner. The2023 impact onaproperty ownerforasample ofproperty types andvaluesisshown below: Item1B Page | 6 Projected TaxRate: Thechartbelowshowstheprojectedtaxratebasedontheassumptions inthefinancialplan. The taxrateisprojected toincreaseaswesavefortheimplementationoffull-timefirefightersin2026. However, theprojectedtaxratesarestilllowerthanthecurrenttaxrateof30.465% Projected General Fund Reserve Basedupontheassumptions intheplanningmodel, theprojectedGeneralFundendingfund balanceasa % ofExpenditures (reserve %) willaverage45% overthefive-yearplanningperiod of2023-2027. Thefinancialplanconservatively anticipatesthereductioninfundbalanceto45% withtheadditionofthefull-timefirestaffingmodel. Thisiswithinthecityguidelineof40%-50% statedintheComprehensive FinancialManagementPlan. Theprojectedfundbalancewillbe updatedasthefirestaffingisfinalized. Additionally, basedoncitygrowthweanticipatewewill outperformourbudgetedrevenueprojectionswhichwouldresultinanaddtofundbalance. Item1B Page | 7 Debt andDebt Levy Impacts: Basedontheproposed projectsintheCIP, debtisprojected todecreasefrom $33.8Mattheend of2021to $31.1Mattheendof2027. Asmentionedabove, staffisproposinga phasedtaxlevy increase toprepareforfull-timefirefightersby2026. Sincethisfundingisinpreparation ofour 2026needs, itwillbeusedforcapitalprojectdebtreductionuntilneededin2026forpersonnel funding. Bydoingthis, thecitywillpayforcapitalpurchases of $2.4Monapaygobasis, instead ofissuingdebt. Thisminimizestheneedforfuturebondissues (debt). Thechartbelowshowstheprojected annualtaxlevyfordebtservice. Thechart illustratesthat debtserviceremainsconstantfrom2021-2025 atabout $3,600,000. Basedontheproposed projectsintheCIP, debtserviceincreasessignificantly in2026and2027 duetobonding (debt issuance) fortwostreetprojectsin2025 (WildsPkwyReclamationandMartindaleAreaStreet projects) andthe2026bondingforfacilityworkatCityHallandthePoliceStation. Bothbuildings werebuiltin2006. Thesignificant facility projectcostsarereplacement ofVAVBoxes, Chillers, AirHandlers, andCarpet. Item1B Page | 8 Overthenextfiveyears, debtpercapitadecreasesasthecitymanagesitsdebtloadandasthe citycontinues togrow. Future Funding Needs ThefinancialplanpresenteddoesnotaddressfuturefundingneedsidentifiedintheDRAFTParks andTrailsMasterPlan. Theestimatedannualfundingshortfallinthe10-yearParkPlanfor neighborhoodparkrenovations, majorequipment replacement, andtrailmaintenanceis $450,000 to $500,000peryear. Itisanticipatedthatfollowing theadoptionoftheDRAFTParksandTrails MasterPlan, andaspartoftheCouncil’s2023Strategic Planningwork, strategies forthefuture fundingofparkneedswillbegintobedeveloped. Item1B Page | 9 Thefinancial plan presented doesnotaddress funding oftheMarshDriveNEroadextension. Withtherecent construction ofthePikeLakeLanding development northofCH42andeastof CH21, MarshDrive isconstructed fromCH21eastapproximately 0.30miles. Asacollector road within thecity’stransportation plan, Marsh Driveisplanned toconnect totheexisting segment at PikeLakeTrail, ultimately continuing eastthrough theVierlingpropertytoCH18. Thedeveloper ofthePikeLakeLanding development hasexpressed interest indeveloping additional property thatprovides anopportunity forthecitytocomplete theconnection toPike LakeTrail. The completion ofthisconnection requires anestimated $800,000incityfunding fortheportion of Marsh Drivethatwould beconstructed throughcityproperty. Currently cityfunding intheamount of $400,000 fromtheGeneralFund isidentified and funding sources fortheremaining $400,000 arebeing evaluated. Asasupporting roadtoCH42asaprincipal arterial, thecounty hasindicated awillingness toevaluate some levelofcounty funding tofacilitate thecompletion ofthisroad connection asavitalpartofthelong-termoveralltransportation network inthisarea. Conclusion Thereisastrongneedtoimplement aFiredepartment full-timefirefighter staffing model. Asnoted above, thecurrent PLFD staffing model reliesonPaid-On-Call (POC) firefighters torespond to calls forservice viapager/phone whichisanincreasingly challenging deployment model. Recruitment andretention areproblems forPLFDasclasssizeshavedecreased significantly over theyears. Currentresponse timestostructure firesmeettheNational FirePrevention Association (NFPA) 1720 Standard only9% ofthetime. Lastly, PLFD callvolume hasgrownby 55% infiveyearsfrom440in2016 to682in2021. Thisnumber willcontinue toincrease dueto therapidgrowth ofthearea. Thefinancial modeladdresses funding fortheprimary cityservicepriorities including full-timefire department staffing, personnel, equipment replacement, facilities replacement/improvement, pavement management, andEDA funding. Does Council support staffrecommendation totransition tofull-timefirestaffing through a phasedtaxlevyincrease over fouryears? DoesCouncil support thefinancial planning assumptions thataredrivingthe2023-2027 taxlevyandtaxrates? ATTACHMENTS: 1. Property TaxProjection – Change inTaxLevy Components byYear 2. 2023-2027Personnel Plan ATTACHMENT 1 PROPERTY TAX PROJECTION SUMMARY 2022 2023 2024 2025 2026 2027 Key Funding Assumptions Increase/(Decrease): General Fund Non Tax Revenues: FT Fire SAFER Grant Revenue - The city has applied for the federal SAFER grant that would fund 100% of the new full-time fire personnel wages and benefits for three years (2023-2025). 1,316,000 96,000 108,000 (1,520,000) - Township Fire and Rescue Aid - The costs for the firefighters are included in the cost calculation for the Fire & Rescue Services with the City of Credit River and Spring Lake Township. However, since the city anticipates 100% grant funding for 2023-2025, there will beno incremental revenue received from the townships for these years.(42,000) (16,000) (61,000) 499,000 4,000 MSA - Maintenance - The upcoming Fish Point Rd Phase II street reconstruction project will utilize MSA Bonds.. Repayment for the bond principal comes from the MSA construction funds and repayment of the bond interest comes from the MSA maintenance funds. The use of MSA maintenance funds for construction project bond interest payments instead of General Fund street maintenance funding has been reflected in the financial plan.- (146,000) 106,000 21,000 22,000 SMSC Police Aid - The total SMSC police aid contribution for 2023 is $1M. The financial plan includes an incremental increase in SMSC aid for Policing which will be adjusted, as needed, based on the agreement between the SMSC Business Council and the City Council. - 51,000 32,000 32,000 33,000 All Other (74,000) 26,000 75,000 58,000 52,000 Subtotal Change in Non Tax Revenues 1,200,000 11,000 260,000 (910,000) 111,000 General Fund Personnel: 2023 Staff Adds: - 12 Firefighters 1,314,000 Property Room Manager 93,000 Financial Analyst - midyear hire 68,000 Mechanic (0.3)41,000 Recreation Programmer (0.6)41,000 Subtotal Staff Adds 1,557,000 365,000 385,000 334,000 322,000 Existing personnel: COLA/STEP/Taxes/Benefits 528,000 518,000 532,000 554,000 580,000 Change in positions filled at lower salaries,, decrease in Paid on Call fire personnel costs due to transition to FT firefighters, PD restructure to remove one CSO position, and decrease in election judge wage costs since it’s not an election year. (468,000) Subtotal Change in General Fund Personnel 1,617,000 883,000 917,000 888,000 902,000 ATTACHMENT 1 PROPERTY TAX PROJECTION SUMMARY 2022 2023 2024 2025 2026 2027 General Fund All Other Expenditures/Capital Outlay - Year over year inflation is at 8.2%. The plan has reflected a 5% increase in costs due to inflation 346,000 197,000 221,000 203,000 84,000 General Fund Change in Fund Balance - For recurring expenditures: in 2023 $44k for Central Garage fuel costs funded from reserves in 2022. This is an ongoing expenditure items (not one-time), so it needs an ongoing funding source (tax levy).44,000 - - 150,000 100,000 General Fund Transfer Out to DS Fund 10,000 47,000 9,000 4,000 - General Fund Transfer Out to Other Funds for Capital Projects to reduce future bonding - The firefighter grant funding will only be available for three years, so staff has incrementally increased the tax levy to prepare for city funding of the firefighters in 2026. This is being done through an annual transfer out of the General Fund. Since this funding is in preparation of our 2026 needs, it will be used for capital project debt reduction until needed in 2026 for personnel funding. By doing this, the city will pay for capital purchases on a pay go basis, instead of issuing debt. This will help us minimize future bond issues (debt) to finance capital purchases.400,000 400,000 400,000 (1,200,000) 8,000 Debt Service: Annual change in debt service - Staff has worked to maintain the annual debt service tax levy at approximately $3.6M per year from 2020-projected 2024. The addition of gas & electric franchise fees dedicated to pavement management has provided a pay go funding source that helps minimize our bonding/debt financing needs. The transportation plan has the largest impact on the tax levy due to the issuance of debt. (57,000) (22,000) 176,000 469,000 414,000 Capital Improvement Program (CIP) - Funding for our long-term plans (Equipment, Park Equipment, Facilities and Transportation) in accordance with 2023-2027 Capital Improvement Program (CIP).135,000 145,000 150,000 160,000 160,000 EDA funding - incremental increase for wages and expenditures 11,000 12,000 11,000 12,000 12,000 Total Tax Levy $ Change 1,306,000$ 1,651,000$ 1,624,000$ 1,596,000$ 1,569,000$ Total Tax Levy % Change 6.65%8.56%9.97%8.92%8.05%7.32% Proposed Staff Adds 2024-2027: 2024 – 2 FTE add for a deputy city clerk and public works GIS coordinator 2025 – 2 FTE for police officer and public works maintenance worker 2026 – 2 FTE add for a communications specialist and recreation programmer 2027 – 1 FTE for police officer FinancialPlanningUpdateJune6, 2022 PriorLakeMN.gov2 directiontimefirestaffingbasedonCouncil -ProceedwithfinancialplanningprocessforfullBegin2023budgetprocessNextSteps:CouncilDirectiononPlanningAssumptionsDebtandDebtLevyImpactsYearPropertyTaxProjectionScenarios-FiveAgenda PriorLakeMN.gov 2023planneddebtissuance. Thedebtservice % changeisestimatedbasedonthe *2023BaseTaxLevyConsiderations:3YearProjectionAssumptions-5 PriorLakeMN.gov timeFiremodelin2026-incorporatesfinancialimpactofFull–Fireservicecontractwithtownships timeFirestaffingmodel-2025implementationofFull-SAFERGrantrevenuefor2023noproposedincreasefor2023budget–SMSCaidforPolicing Buildingpermitsof150/year RevenueAssumptions:.2026of6% peryear-Financialplanassumesgrowthfor2024Estimatedtaxcapacityhasincreased22.5%.Estimatedmarketvaluehasincreased18.4%. Growthintaxcapacityandmarketvalueassumptionsfrom2022to20234YearProjectionAssumptions-5 PriorLakeMN.gov FTEs)PublicWorks: Maintenance, GISCoordinator, andRecreation Programmer (combined3 •Police: PatrolOfficers (2FTEs)•Administration: DeputyCityClerkandCommunications Specialist (2FTEs)•2027:-2024timefirefighterstaffingmodel (12FTE)-Transitiontofull•RecreationProgrammer (.6FTE)•time (.3FTE)-timetofull-Mechanicconvertingfrompart•midyearhire–FinancialAnalyst •retirementsavingsandconversionofCSOrole)(FTE & budgetneutralwith PolicePropertyRoomManagerconvertedfromopenCSOrole •2023:StaffingChangesperPersonnelPlan5YearProjectionAssumptions-5 PriorLakeMN.gov EDAFundingDebtobligations (existingandproposed)termplans (CIP) -CommitmentstolongFundingtosupportrisingcostsofgoodsandservice6YearProjectionAssumptions-5 PriorLakeMN.gov deploymentmodelchallenging -Call (POC) firefightersrespondtocallsforserviceviapager/phone-On-PaidNeedtoplanforcontinuedincreaseduetorapidgrowth.Firecallvolumehasgrownby55% infiveyearsfrom440in2016to682in2021. planningandpubliceducation.-Notmeetingstandardsforlifesafetyinspections, pre Currentresponsetimesmeetthestandardonly9% ofthetime. Recruitmentandretention: 7timeFirestaffingmodel-Full PriorLakeMN.gov thefundstopayforcapitalpurchasesonapaygobasis, insteadofissuingdebt. Sincephasedtaxlevyincreaseisinpreparationofour2026needs, thecitycanutilize 2026tofundfirefightersby2026 -Phasedtaxlevyincreasefrom2023year) SAFERgrantaward -2025 (3-2023Option1:FundingOptions:8timeFirestaffingmodel-Full PriorLakeMN.gov thefundstopayforcapitalpurchasesonapaygobasis, insteadofissuingdebt. Sincephasedtaxlevyincreaseisinpreparationofour2026needs, thecitywillutilize 2026tofundfirefightersby2026 -Phasedtaxlevyincreasefrom2023until2026NoSAFERgrantaward/Firefighters Option2:FundingOptions:9timeFirestaffingmodel-Full PriorLakeMN.gov FundingOption1ismodeledinthefinancialplanEstimatedtaxlevyincreaseof12% in2023 (3.5% morethanOption1/Option2)NotransferstofundingforcapitalprojectsFirecontractrevenuefromtheCityofCreditRiverandSpringLakeTownship.arehiredin2023NoSAFERgrantaward/Firefighters Option3:FundingOptions:10timeFirestaffingmodel-Full PriorLakeMN.gov11 Option1FireFunding–PropertyTaxProjectionSummary PriorLakeMN.gov12 marketvalueAssumes18.4% increase inestimated •Propertyownerestimatedtaximpact•PropertyTaxProjection PriorLakeMN.gov 30.465%currenttaxrateofstilllowerthantheProjectedtaxratesare •firefightersin2026. time -increaseforfullduetophasedlevytoincreaseovertimeThetaxrateisprojected •baseduetogrowthinthetaxprojectedtodecreaseThe2023taxrateis •13PropertyTaxProjection PriorLakeMN.gov CityLevy/Tax Capacity = Tax Rate SevenCountyMetroAreaAverageTaxCapacityRate:14YearDebtPerCapitaProjection-5 PriorLakeMN.gov 32.11%32.10%Shakopee40.33%42.25%Savage30. 47%30.27%PriorLake52.22%51.38%NewPrague73.83%73.92%Jordan47.73%45.99%15.56%15.04%CreditRiver92.42%84.38%BellePlaine20222021City CityLevy/Tax Capacity = Tax Rate ScottCountyTaxCapacityRatebyCity:15YearDebtPerCapitaProjection-5 PriorLakeMN.gov workatCityHallandthePoliceStationprojects) andthe2026bonding forfacility ReclamationandMartindaleAreaStreettwostreetprojectsin2025 (Wilds Pkwy Plannednewdebtin2026and2027isfor debt.$2.4Monapaygobasis, instead ofissuing increasetopayforcapitalpurchasestotalingCitywillutilizetheGeneralFundphasedlevy 2027.attheendof2021to $31.1Mattheendof Debtisprojectedtodecreasefrom $33.8M 16YearDebtProjection-5 PriorLakeMN.gov Handlers, andCarpet. replacementofVAVBoxes, Chillers, Air significantfacilityprojectcostsareBothbuildingswerebuiltin2006. The facilityworkatCityHallandthePoliceStation. AreaStreetprojects) andthe2026bonding for 2025 (Wilds Pkwy Reclamation and Martindale in2026and2027duetwostreetprojectsinProposeddebtserviceincreasessignificantly 2025atabout $3.6M.-Debtserviceremainsconstantfrom202117YearTaxLevyforDebtService-5 PriorLakeMN.gov thatistaxsupported.ofrevenueaffecttheportionofdebtserviceThetiming, mix ofproject types, andpledge annualdebtservice. forthehowwepayFundingsourcesare interestpaymentsonthecity’sdebtDebtserviceistheannualprincipaland 18YearTaxLevyforDebtService-5 PriorLakeMN.gov Thetiming, mixofproject types, andpledge ofrevenue affecttheportion ofdebt service thatistaxsupported.thepledgeofrevenuetorepaydebtisassessments/taxlevy-WildsPkwyReclamationStreetproject thepledgeofrevenuetorepaydebtisassessments/MSA/taxlevy–FishPtRdPhIIStreetproject Twofuturestreetprojectexamples:19YearTaxLevyforDebtService-5 PriorLakeMN.gov Thetiming, mixofproject types, andpledge ofrevenue affects theportion ofdebt service thatistaxsupported.2026FacilitiesImprovementsatCityHallandPoliceStation. Replacement ofVAV Boxes, Chillers, Air Handlers, Carpet Membraneroofing–2024FacilitiesImprovementsatCityHallandPoliceStation TwofutureCapitalImprovementprojects:20YearTaxLevyforDebtService-5 PriorLakeMN.gov21 YearDebtPerCapitaProjection-5 PriorLakeMN.gov$400kidentifiedGeneralFundfundingsource/$400kunidentifiedfunding source•Estimatedcostof $800k•CollectorroadplannedtoconnecttoPikeLakeTrail•MarshDriveNEroadextensionStrategicPlanningworkStrategiesforthefuturefundingofparkneedswillbeoneofthetopicsattheCouncil’s2023 •NofundingplanforSandPointBeachandLakefrontParkmajorimprovements•Fundingshortfallof $500k/yearin10yr. CIPforongoingParkandTrailreplacement •ParksMasterPlanFundingFutureFundingNeeds:22YearProjection-5 PriorLakeMN.gov NextStepsandBudgetPublicBudgetMeeting/Adopt FinalTaxLevy –Dec. 5 BudgetWorkSession–Nov. 7 PreliminaryTaxLevyandBudgetPublicBudgetMeeting/Adopt -September19CIPPublicHearing–August15BudgetWorkSession–August1CIPWorkSession–June20FinancialPlanningWorkSession–June623ScheduleLevyand2023Tax PriorLakeMN.gov rates?taxandlevytax2027-2023thedrivingarethatassumptionsplanningfinancialthesupportCouncilDoes years?fouroverincreaselevytaxphasedathroughstaffingfiretime-fulltotransitiontorecommenda tionstaffsupportCouncilDoes24Council ITEM: 4ACITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Heidi Simon, CityClerk PRESENTED BY: HeidiSimon AGENDA ITEM: Approval oftheMay16, 2022, CityCouncil Minutes GOAL AREA High-ValueCityServices OBJECTIVE: 6. Seekcommunity engagement through avariety of communication methods toreachallresidents. RECOMMENDED ACTION: Approval oftheMay16, 2022, CityCouncil Minutes aspresented. ALTERNATIVES: 1. Motion andsecondtoapprove theMay16, 2022, CityCouncil Minutes aspresented. 2. Motion andsecond torevise theMay16, 2022, CityCouncil Minutes. ATTACHMENTS: 1. 05162022 CityCouncil Minutes CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 4646 Dakota StreetSE Prior Lake, MN 55372 CITY COUNCIL MEETING MINUTES May16, 2022 CALL TO ORDER MayorBriggs calledthemeeting toorderat7:00p.m. Present wereCouncilors Thompson, Burkart, Braid andChurchill. Absent: None. Alsoinattendance wasCityManager Wedel, CityAttorney Kendall, Finance Director Erickson, Community Development Director McCabe, CityClerk Simon. PUBLIC FORUM Scott County Sherriff Luke Hennen: Regarding consentagenda item5D; the lifejacketsafety agreement. Wanted tothank theCityand Council forconsideration ofthispartnership. Believes it willbringsafetytothecommunity andthelakes. Lookingforward toimplementation inthespring. APPROVAL OF AGENDA MOTION BYTHOMPSON, SECOND BYBURKART, TOAPPROVE THEAGENDA ASPRE- SENTED VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent Themotioncarried. APPROVAL OF CITY COUNCIL MEETING MINUTES 4A. APPROVE THE MAY 2, 2022, CITY COUNCIL MINUTES MOTION BYBURKART, SECOND BYBRAID, TOAPPROVE THEMAY2, 2022, CITYCOUN- CILMEETING MINUTES ASPRESENTED VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent Themotioncarried. 1 CONSENT AGENDA A. Approval ofClaims Listing B. Approval ofApril Building Permit Summary Report C. Approval ofAprilAnimalControl Services Report D. Approval ofAgreement forScott County Sheriff’sOfficeLifejacket Loaner Station E. Approval of1stQuarterFinancial Report F. Approval ofResolution 220-65forTimbercrest TrailProject toAccept BidsandAward Contract G. Approval ofResolution 22-066 Approving Improvements forNewCreations Development H. Approval ofanOrdinance 122-03Amending Section 1120.200ofPriorLake CityCode andtheOfficial Zoning MapfortheCityofPrior Lake forThePreserve atJeffers Pond and Resolution 22-067 forpublication I. Approval ofaResolution 22-068Approving aTemporary Liquor LicenseforBoathouse Brothers BrewingCo. onSaturday June11, 2022 J. Approval ofaRequest from theOakland Beach Homeowners Association Related toDock SlipPlacement MOTION BYBRAID SECOND BYCHURCHILL, TOAPPROVE THECONSENT AGENDA AS PRESENTED VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent Themotioncarried. PRESENTATIONS 6A. Audit Presentation byMMKR Finance Director Erickson introduced thisitemtotheCityCouncil. Jim Eichten, Managing Partner with MMKR presented theitemfortheCityCouncil. Braid: Thanked himforthedetailed report andnotedthatitwasverystraight forward. Alsowanted tothank Director Erickson and herstaffforcontinuing todoanexcellent jobforthecitizens ofour city inspiteofsomereallychallenging environments overthepastfew years. Theworkandefforts oftheFinance department arevery muchappreciated. Briggs: Mirrored Councilor Braid, thanking thefinance department foralltheirhardworkeven throughpersonnel changes andchanging requirements. Noted thatwhenthecouncilors reviewthe enterprise funds, theyhave started tomakesomedecisions topayforlongterm costsofthecity. Wanttoensure thecitizens understand that thosedollars aretopayforanticipated issues thatmay occur downtheroad tosuccessfully meet theneeds and expectations ofthecity. MOTION BYBURKART SECOND BYTHOMPSON, TOAPPROVE THE2021 FINANCIAL AUDIT ASPRESENTED 205162022CityCouncilMeetingMinutes VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent Themotioncarried. 6B. Gallery Apartments Concept Plan atIntersection ofWest Avenue and CH21. Community Development Director Casey McCabe introduced thisitemtotheCouncil. Mr. Chase, Chase Real Estate presented theitem totheCityCouncil. Briggs: Questioned theestimated 350totalvehicle tripsbasedon97units. 350vehicle trips would equate outtoonlyabout3.5trips perunit? Chase: Noted thatthecorrectnumber ofvehicle tripsis354andthatperunitestimate iscorrect. Burkart: Noted thatthishaspotential tobeaveryattractive gateway forthecommunity. Believes thatthisisapositiveprojectforthecommunity withthechronic shortage ofhousing. Does have concerns abouttheintersection of21/WestAvenue. Have therebeenanydiscussions about aright- in/ right-outonlyatWestAvefrombothsidesandcreating access throughthesidestreets? McCabe: Therehasnotbeenanydiscussions about trafficasofyet. Burkhart: Hastherebeen discussions withthePrior Lake Revival aboutthetraffic access? McCabe: Notatthistime. Burkart: Isthereasidewalk onWest Avenue downto21? There should beone forcitizens to access thetrailon21. Notonboardwithproviding TaxIncrement Financing (TIF) for anymarket rateproject, areyou inneed ofone? Chase: Notatthistime. Braid: Also hasconcerns aboutWest Avenue andthetraffic thatisgenerated. Additionally con- cerned thatthereisnocommercial component withthisproject. TheCouncil andEDA areworking hard formorecommercial options. Would alsoliketoseeafulltraffic study. Believes aroadcon- nectiontoDuluth wouldbebeneficial. Would notsupport TIF, variance request, orPUD withthis project. Would muchprefer iftheycamebackwith someform ofacommercial component. Chase: Notedthat historically acommercial component hasnotbeenbeneficial inpastsimilar pro- jects. Churchill: Havetheyhadanydiscussions with theneighbors, ordoyouplantohave anydiscus- sions withtheneighbors? Chase: Notallofthembutthatisinthefutureplan. Theneighbor thatisclearly anddirectly im- pacted hasbeen talked to. Briggs: Hesitant tomake comments atthisstageoftheproject. Theaspect ofnotwanting tousurp theplanning commission andtheirfeedback forthisproject - doesn’tsitwellwithhim. Concerns for trafficflowwiththisproject. Believes therehasbeen requests forcertain easements withthisinter- section inthepast. Historically thecountyhaswanted toimprove theirintersections andthisoneis horrible. Would alsolikeanadditional traffic studyasthe3.5tripsperdayperunitstrikes himasa lownumber. 305162022CityCouncilMeetingMinutes Chase: Notedthat heisaresident ofPriorLakeandunderstands thetrafficconcerns. Heiswilling toreview thedrivelane, whichisbasedonlocation ofquality soil. PUBLIC HEARINGS 7A. Public Hearing for Approval ofResolution 22-069 Approving On-Sale Wine Liquor Li- cense for Edelweiss Bakery Wedel introduced theitem totheCouncil. Publichearing opened at7:40pmopened byBurkhart seconded byBraid. Nocomments. Closed PublicHearing at7:41pm byBurkart seconded byBraid. Braid: Thanking theownersofEdelweiss fortheircontinued business andexpansion intheCom- munity. Thishasbeenacommunity request manytimes. Burkart: Alsothanked theowners ofEdelweiss. Gladthattheyarebackinbusiness inPriorLake. MOTION BYBURKART SECOND BYBRAID, TOAPPROVE RESOLUTION 22-069APPROVING ON-SALE WINE LIQUOR LICENSE FOREDELWEISS BAKERY. VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent OLD BUSINESS 8A. No OldBusiness. NEW BUSINESS 9A. APPROVAL OF RESOLUTION 22-070 AUTHORIZING THE SALE OF GENERAL OBLIGA- TION BONDS, SERIES 2022A Finance Director Erickson presented theagenda itemtocouncil. MOTION BYBRAID SECOND BYTHOMPSON, TOAPPROVE RESOLUTION 22-070 AUTHOR- IZINGTHESALE OFGENERAL OBLIGATION BONDS, SERIES2022A. 405162022CityCouncilMeetingMinutes VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent Themotioncarried. 9B. Approval ofResolution 22-071 Approving aPublic Property Use Permit (PPUP) toAllow Outdoor Seating on the Public Sidewalk Adjacent to16186 Main Avenue SE Community Development Director McCabe presented theagenda itemtocouncil. Burkart: Concerns aboutthefoodtruckthatparksadjacent tothebakery wherethisoutdoor seating isproposed during thefarmer’smarket asitcreates abottleneck ofpedestrians. Briggs: Inviting theapplicant tospeak; duringfarmers market where would these tables beinrela- tiontothefoodtruck? Joe and Laurie Lin, Edelweiss: Noted concerns withtheirSkillet Joes’ foodtruck inthelocationit hashistorically been (DakotaStreet) asitgetstobeabitofapedestrian trafficjamonthatsidewalk. Theyhavebeenindiscission withthebuildingownersastheyowntheparkinglotbehindthebuild- ing, and theyarefullyinsupport ofmoving theSkillet Joe’sfood trucktotheirbackparking lot to alleviate thepedestrian trafficonthatsidewalk during thefarmer’smarket. Briggs: Thiswouldalsoallowthem toleavetheirtablesoutside theentire time. Churchill: Isalcoholgoing tobeserved outside? Andwould ithavetoberoped off? Joeand Laurie Lin, Edelweiss: Yes, theyplan tohave abarrier toenclose thatareaoff. Wedel: Noting pertheregulations that alcohol servicejustneeds tobeserved toadesignated area soserving justattables would beacceptable. MOTION BYBURKART SECOND BYCHURCHILL, TOAPPROVE RESOLUTION 22-071APUB- LICPROPERTY USEPERMIT (PPUP) TOALLOW OUTDOOR SEATING ONTHEPUBLIC SIDE- WALKADJACENT TO16186MAINAVENUE SE. VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent Themotioncarried. REMOVED CONSENT AGENDA ITEMS Noitems were removed. COUNCILMEMBER LIAISON UPDATES / COUNCILMEMBER REPORTS Churchill: 5/9Chamber BoardMeeting, 5/10BylawsandCompensation Meeting andPlanning Commission interviews, 5/11LiveLearn Earnhousing meeting, 5/13SCALEgeneral meeting and Agendareview 505162022CityCouncilMeetingMinutes Braid: 5/9EDAmeeting, 5/10PLSLWatershedmeeting, 5/16agendareview Burkart: 5/3stakeholder eventforHWY169Coalition agreement, Burnsvillebusgaragemodern- izationgroundbreaking ceremony, suburbantransitboardmeeting, SonnetMontessori ribboncut- ting, 5/13agendareview,5/16metcouncilandMVTAmeeting Thompson: 5/10Bylawscompensation, 5/16agendareview Briggs: 5/6SCALEexecutivemeeting, 5/9Informationmeetingwithresidentialcommercialdevel- oper, 5/9regionalCouncilmayorsmeeting, 5/9EDAmeeting, 5/10 TourofCityHallandcouncil chambers withstudents, SonnetMontessoriribbon cutting, 5/11PriorLake/SavageOptimist Lunch- eon, 5/12discussiononextendingmentoringprogramatPriorLakeHighSchool, 5/13SCALEgen- eralmeetingandAgendareview OTHER BUSINESS ADJOURNMENT MOTIONBY THOMPSON, SECOND BY CHURCHILL, TOADJOURNTHEMEETING AT 7:57 P.M. VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent Themotioncarried. Respectfully Submitted, JasonWedel, CityManager 605162022CityCouncilMeetingMinutes PaymentsIssued5/7/2022 - 5/20/2022DateChecksACHEFTTotal5/9/2022 2,223.85 2,223.855/10/2022 2,338.11 2,338.115/13/2022 582,067.25 88,170.24 670,237.495/16/2022 1,378.12 1,378.125/20/2022 83,928.30 45,509.53 2,969.04 132,406.87665,995.55 133,679.77 8,909.12 808,584.44 ITEM: 5ACITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Janet Ringberg, Accounting Specialist PRESENTED BY: CathyEricksonson, Finance Director AGENDA ITEM: Approval ofClaims Listing GOAL AREA High-ValueCityServices OBJECTIVE: 1. Establishfinancial stability forallfunds. RECOMMENDED ACTION: Adoptclaimslistingaspresented. BACKGROUND: Thecurrent claimslisting isacheckregister which includesachronological listing ofpayments issued (check, EFT, ACH, and wires) withtheassociated vendorand description oftheclaim paid. Theoptiontoinclude ageneral ledgeraccount number isnotavailable withthis report. ALTERNATIVES: 1. Motion andsecond aspartoftheconsent agenda toadopttheclaimslistaspresented. 2. Motion andsecondtoremove theclaims listfromtheconsentagenda foradditional discussion. ATTACHMENTS: 1. 5AClaimsListing 06062022 CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 CHECK REGISTER FOR CITY OF PRIOR LAKE 1/7Page: 05/31/2022 09:09 AM User: Janet DB: Prior Lake CHECK DATE FROM 05/07/2022 - 05/20/2022 AmountDescriptionVendorNameVendorCheckBankCheckDate Bank 1 General Bank 2,223.85Apr2022MerchantFeesINVOICECLOUD000280918532(E)105/09/2022 1,869.002022DentalClaimsDELTADENTAL000272138534(E)105/10/2022 469.11Apr2022MerchantCardFeesTRANSFIRST000206938535(E)105/10/2022 2,400.00Apr2022AnimalControl4PAWSANIMALCONTROLLLC000067988536(A)105/13/2022 70.20MileageANDYSTEPHES000271898537(A)105/13/2022 1,485.61PartsAUTOMATEDDOORSERVICEINC000274198538(A)105/13/2022 54.44BatteriesBATTERIESPLUS000021308539(A)105/13/2022 2,259.00WildsLiftStationRehabBOLTON & MENKINC000026378540(A)105/13/2022 4,839.50WildsLiftStationRehab 7,098.50 505.50Apr202214278BluebirdTrailLitigationCAMPBELLKNUTSONPA000280438541(A)105/13/2022 6,620.29Apr2022GeneralMatters 7,125.79 1,077.23Apr2022MiscSuppliesCARLSONHARDWARECOMPANY000031258542(A)105/13/2022 3,840.00ITSupportCOMPUTERINTEGRATIONTECH000037608543(A)105/13/2022 256.00Sonicwall 4,096.00 1,656.009201NSquadsuppliesEMERGENCYAUTOMOTIVETECHINC000054808544(A)105/13/2022 1,096.209201NSquadsupplies 2,752.20 18.20NylockFASTENALCOMPANY000061408545(A)105/13/2022 114.76Shopsupplies 132.96 608.85Apr2022LocatesGOPHERSTATEONE-CALLINC000075258546(A)105/13/2022 280.88Non-ReflectiveStickersGRAFIXSHOPPE000076158547(A)105/13/2022 560.009222Newdecals 840.88 928.99Apr2022UniformsHUEBSCH000275368548(A)105/13/2022 304.96 #10EnvelopesINNOVATIVEOFFICESOLUTIONSLLC000271498549(A)105/13/2022 60.68Young - Business Cards 22.49MiscOfficeSupplies 14.23TableFan 51.97MiscOfficeSupplies 127.34MiscOfficeSupplies 43.28Footrest 624.95 13,621.60Apr2022UnleadedKELLEYFUELSINC000112198550(A)105/13/2022 5,217.84Apr2022Diesel 18,839.44 CHECK REGISTER FOR CITY OF PRIOR LAKE 2/7Page: 05/31/2022 09:09 AM User: Janet DB: Prior Lake CHECK DATE FROM 05/07/2022 - 05/20/2022 AmountDescriptionVendorNameVendorCheckBankCheckDate 11,922.59508GarbagelidMACQUEENEQUIPMENTINC000130548551(A)105/13/2022 1,100.00DemoHeadset 13,022.59 2,465.36PartsMTIDISTRIBUTINGINC000139518552(A)105/13/2022 61.12PaperSuppliesNETWORKSERVICESCOMPANY000143818553(A)105/13/2022 66.10PaperSupplies 359.36PaperSupplies 123.77PaperSupplies 610.35 127.75CameraHolderLaborNOVAKCOMPANIES000149008554(A)105/13/2022 773.50Apr2022RepairPartsO'REILLY AUTOPARTS000150888555(A)105/13/2022 400.00May2022ROWayAppPERRILL000065028556(A)105/13/2022 731.29Apr2022MiscSuppliesPRIORLAKEHARDWARE000166588557(A)105/13/2022 3,741.25ClubPriorCameraAdditionsPRO-TEC DESIGNINC000274298558(A)105/13/2022 314.82MowertiresROYALTIREINC000187328559(A)105/13/2022 1,277.56RoofLeakRepair - MCSCHWICKERT'S TECTA AMERICALLC000279118560(A)105/13/2022 905.72RoofLeakRepair - MC 869.96RoofLeakRepair - MC 967.82RoofLeakRepair - CH 4,021.06 252.00E. ColiTestingUCLABORATORY000212358561(A)105/13/2022 618.26508AirLiftWOLFMOTORCOINC000236758562(A)105/13/2022 10,127.32450AccidentRepairs 10,745.58 665.005604CandyCovePlanReviewWSB & ASSOCIATESINC000237808563(A)105/13/2022 2,114.80SealKitsZAHL-PETROLEUM MAINTENANCECO000261258564(A)105/13/2022 48.85GeneratorkeysZIEGLERINC000265008565(A)105/13/2022 304.00CardinalOverlookAdditionBOLTON & MENKINC000026378566(A)105/20/2022 16,303.362021DowntownReconstruction 940.5021/13 Improvements 304.00MesenbrinkSWPPPInspection 456.00ParkwoodEstatesDevelopment 456.00PikeLakeLandingConstObservation 1,924.00SpringviewMeadows 1,316.00PLLuxuryApartments 22,003.86 150.00Apr2022AT&T atCedarwoodCAMPBELLKNUTSONPA000280438567(A)105/20/2022 2,744.45TuitionReimbursementCHRISTOPHERSCHAEFER000281038568(A)105/20/2022 594.50CanoeRacksCOMMERCIALTRUCKCOLLISION000037278569(A)105/20/2022 1,125.00Jun2022CITManagedBackupCOMPUTERINTEGRATIONTECH000037608570(A)105/20/2022 73.00Erickson - PantsGALLSLLC000070758571(A)105/20/2022 91.25Olson - Pants 164.25 1,048.08SummitRidgeParkConcept & StakeholderHOISINGTONKOEGLERGROUPINC000087308572(A)105/20/2022 1,326.75Ponds & Memorial Park Improvements CHECK REGISTER FOR CITY OF PRIOR LAKE 3/7Page: 05/31/2022 09:09 AM User: Janet DB: Prior Lake CHECK DATE FROM 05/07/2022 - 05/20/2022 AmountDescriptionVendorNameVendorCheckBankCheckDate 5,067.50LakefrontPark - Watzl's Beach Master Pl 1,380.00HowardLakeParkConcept 8,822.33 33.99CustomSignsINNOVATIVEOFFICESOLUTIONSLLC000271498573(A)105/20/2022 61.59NamePlates 110.57MiscOfficeSupplies 240.48Toner 446.63 241.50PerDiem - AxonConferenceJACINTAHEINZMANN000270898574(A)105/20/2022 241.50PerDiem - AxonConferenceJENNIFERBISEK000271478575(A)105/20/2022 1,102.14Hotel - Axon Conference 1,343.64 180.00Apr2022PDCounselingServicesLEASTSERVICES/COUNSELINGLLC000276138576(A)105/20/2022 180.00Feb2022PDCounselingServices 360.00 7,500.002021YEAuditMMKR & CO000137498577(A)105/20/2022 13.378464PlowSteelTubingNOVAKCOMPANIES000149008578(A)105/20/2022 298.232022DentalClaimsDELTADENTAL000272138579(E)105/16/2022 1,079.89May2022ElectricBillsSHAKOPEEPUBLICUTILITIES000193888580(E)105/16/2022 155.04Apr2022FuelTaxMNDEPTOFREVENUE000136128581(E)105/20/2022 2,814.00Apr202SalesTax 2,969.04 75.00MailboxReimbursementALFREDANDERSONREFMAILB110047105/13/2022 123.39UBrefundforaccount: 40032401ALLENJUSTINREFUND-UB110048105/13/2022 87.50Mat42022TechnologyTimeClassAMANDAFAY00027666110049105/13/2022 84.09Coffee/TeaARAMARKREFRESHMENTSERVICES00001772110050105/13/2022 378.26Coffee 119.60WaterFilter 581.95 75.00MailboxReplacementBARRY & TREVAJAMESREFMAILB110051105/13/2022 75.00MailboxReimbursementBRAD & REBECCAPFEIFERREFMAILB110052105/13/2022 75.00MailboxReimbursementBRIAN & PATSYLUNDQUISTREFMAILB110053105/13/2022 453.83RockBRYANROCKPRODUCTSINC00002905110054105/13/2022 16.56UBrefundforaccount: 30346203BUBBLARRY & KARENREFUND-UB110055105/13/2022 75.00MailboxReimbursementCASSANDRAREIMBERSREFMAILB110056105/13/2022 74.10NaturalGas - 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05/20/2022 AmountDescriptionVendorNameVendorCheckBankCheckDate 19,676.40Feb2022WaterPurchasesSMSC00019384110114105/13/2022 22,769.60Apr2022WaterPurchases 34,488.80Oct2021WaterPurchases 76,934.80 128.64Apr2022LegalAdsSOUTHWESTNEWSMEDIA00019676110115105/13/2022 350.00May2022SpecialCleansSPECIALIZEDSANITATION00019703110116105/13/2022 58.00UBrefundforaccount: 20681503STABALIZATIONPROJECTREFUND-UB110117105/13/2022 34.41UBrefundforaccount: 40744001TIPPIEAARONREFUND-UB110118105/13/2022 8,457.30GPSTREEBIZLLC00027745110119105/13/2022 404.35SampleCellsUSABLUEBOOK00021882110120105/13/2022 675.41Parts 349.21Fluoride 1,428.97 212.99UBrefundforaccount: 10448003WALLMICHAELREFUND-UB110121105/13/2022 224.76Apr2022ClearLawEnforcementPlusWESTPAYMENTCENTER00023420110122105/13/2022 656.14UBrefundforaccount: 30482002WHITEERICREFUND-UB110123105/13/2022 218.24WaterFiltersARAMARKREFRESHMENTSERVICES00001772110124105/20/2022 1,100.00FireApparatusOperatorTrainingCENTURYCOLLEGE00026955110125105/20/2022 60.12464CylinderfillportCRYSTEELMANUFACTURINGINC00003982110126105/20/2022 40.00BurnPermitDenied - 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Strategic Planning 339.54CityCouncilWorkshop 46.00Simon - 2022 Membership Dues 107.33RoxioCD/DVD Burner 326.77Mouse, Adapter, Hard Drive 2,730.00SeasonalBackgroundChecks 214.72CityHallArtwork 75.00Adelmann - DMT Recert 75.00O'Donnell - DMT-G Recert CHECK REGISTER FOR CITY OF PRIOR LAKE 6/7Page: 05/31/2022 09:09 AM User: Janet DB: Prior Lake CHECK DATE FROM 05/07/2022 - 05/20/2022 AmountDescriptionVendorNameVendorCheckBankCheckDate 96.00TrainingPolos 160.00Duggan - U of F Evolution Training 180.06Training - Hotel 50.00BusTokens 1.67TrailCameraSubscription 11.01TrailCameraSubscription 11.01TrailCameraSubscription 13.00TrailCameraSubscription 28.77Pizza - GASB 87 Training 70.00Etter - 2022 Membership 85.00LeaseAccountingTraining 771.27WTFMotors 215.00Simon - Annual Membership 45.40Coffee 199.98CrimeSceneStorageBoxes 162.39CrimeSceneStorageBoxes 35.99Headphones 261.50GunFlashlights 784.50GunFlashlights 83.95iPadChargingStations 149.97StorageShelving 277.96StorageShelving 112.95Flowers - Terry Muelken 0.9950GBiCloudStorage 25.54EPCRA - Right to Know Fees 1,215.00WTFFlammableCabinet 116.00Brotzler, McCabe - Seminar 315.48PVCSewerGloves 125.96KidHardHats 172.40BluetoothHeadset 35.49Electric3-Hole Punch 17.28SharpieMarkers 72.357133SWATvanlights 328.93WTFMeters 221.49WTFParts 107.43Supplies - Team & Culture Workshop 42.13WorkshopLunch 407.33Lunch - Team & Culture Workshop 18.96Water/OJ - Team & Culture Workshop 122.50Young - Cert Renewal 117.94VandalismRemover 43.00WTFLadderStickers 159.35CoolingFan - Well #3 1,859.89WTFPipes 60.00De-Escalation Seminar 449.99LakefrontPavilionTV 39.53PavilionRenterSupplies 112.66SportsCampSigns 282.66LakefrontMasterPlanSigns 823.42Event, Pickleball Signs 108.71SandwichBoardSign 25.00YouthSportsCampAds 119.88QRCodeSubscription 41.16Fuel - Vandalia Field Trip 57.41BunnyYogaSupplies 700.00GlassBlowingFieldTrip 91.95Young - Notary Stamp 188.36VanRental - Vandalia Field Trip 1,125.00FireTrainingSoftware 299.99)Return TV CHECK REGISTER FOR CITY OF PRIOR LAKE 7/7Page: 05/31/2022 09:09 AM User: Janet DB: Prior Lake CHECK DATE FROM 05/07/2022 - 05/20/2022 AmountDescriptionVendorNameVendorCheckBankCheckDate 120.00)REfund - Hill House Tour 17.49)Return Markers 365.00)Mager - Training Refund 19,122.54 49,952.33DowntownSouthReconXCELENERGY00014720110138105/20/2022 644.00LightRepair - DT & LakefrontHAYESELECTRICINC00008315110139105/20/2022 6,762.50SpaceNeedsAssessmentOERTELARCHITECTS00015155110140105/20/2022 1 TOTALS: 808,584.44Totalof143Disbursements: 0.00Less0VoidChecks: 808,584.44Totalof143Checks: ITEM: 5BCITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Heidi Simon, CityClerk PRESENTED BY: Heidi SImon AGENDA ITEM: Resolution Approving 2022-2023 LiquorLicenseRenewals GOAL AREA Public Safety OBJECTIVE: 4. Ensure asafeandqualitybuiltenvironment. RECOMMENDED ACTION: Adoptaresolution approving the2022-2023 LiquorLicense renewals. BACKGROUND: TheCity Code provides thattheCityCouncil mayapprove therenewal ofannual on-sale intoxicating, Sunday liquor, off-saleintoxicating, on-salewine, off-sale3.2maltliquor, on-sale3.2 maltliquor, clublicenses, andbrewer’sonandoff-salelicenses. All licenses expire onthesamethdate, June 30 ofeachyear. Allapplicants havesubmitted therequired documentation torenewtheir licenses including proof ofliquorliability insurance. PriorLakeCityOrdinance 301.600statesthatnolicenseshall be grantedforoperation onanypremisesforwhich taxes, assessments, orotherfinancial claimsof theCityaredelinquent orunpaid. Allapplicants arecurrentwiththeirfinancial obligations. ThePriorLakePolice Department hasinvestigated andreported thatinthepastfiveyearsthe following establishments havebeencitedwithselling alcohol tominors: 2021- Village Liquor 2020- MGM, VillageLiquor 2019- MGM, Teresa’sMexican Restaurant 2018- None 2017- Prior LakeVFW, MGM Wine & Spirits, TJHooligan’s ThePriorLake PoliceDepartment conducts alcoholcompliance checks onetotwo timeseach yeardepending onstaffing levels. EachLicensee mustconduct regular liquor service training for their employees. FINANCIAL IMPACT: Included inthisagenda report isExhibitAwhichdetails thelicense typeandfeesfortheapplicants whohavepaid. ALTERNATIVES: 1. Motion andsecond aspartoftheconsent agendatoapprove therenewal oftheliquor licenses listedonExhibit Afor2022-2023. CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 Item5B Page | 2 2. Motion andsecond toremovethisitemfromtheconsentagenda foradditional discussion. ATTACHMENTS: 1. 2022 -2023Agenda Exhibit A 2. Resolution – Approval of2022-2023LiquorLicense Renewals 4646DakotaStreet SE PriorLake, MN 55372 RESOLUTION 22- A RESOLUTION TO CONSIDER APPROVAL OF THE LIQUOR LICENSE RENEWALS FOR 2022 - 2023 Motion By: Second By: WHEREAS, Minnesota Statutes Chapter 340A authorizes theCitytoissueonandoff-sale liquor, 3.2maltliquor licenses, onsalewineliquor license, Sunday licenses, clublicenses, andonandoffsalebrewer’slicenses; and WHEREAS, Prior LakeCityCodesetsforththeapplication process forsuchlicenses; and WHEREAS, applicants havesubmitted liquor license applications andpaidallfees; and WHEREAS, pursuant tothePrior Lake CityCodesection 301.600, “nolicense shallbe granted foroperation onanypremises onwhichtaxes, assessments orother financial claims oftheCity aredelinquent orunpaid.” NOWTHEREFORE, BE ITHEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA asfollows: 1. Therecitals setforthabove areincorporated herein. 2. Theliquor licenses fortheapplicants andpremises setforthinExhibit Aarehereby approved fortheperiod July 1, 2022, toJune 30, 2023. 3. Allpremises shallcomply withPrior Lake City Code301.600nolaterthan June30, 2022, to beeligible forlicensure. thPassedandadoptedbythePriorLakeCityCouncilthis6 dayofJune2022. VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent JasonWedel, CityManager Exhibit A CityofPriorLake 2022- 2023LiquorLicenses NameandAddress TypeofLicense LicenseFee Boathouse BrothersBrewing 16211MainAvenueSE BrewerOff-Sale $ 200.00 PriorLakeMN55372 BrewerTaproomOn-Sale $ 650.00 850.00 CharliesonPrior 3950GreenHeights Trail On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 ExtraInningsSaloon 16299MainAvenueSE On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 Fong'sChineseCuisine 4770PleasantStSuite3 On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 HolidayStationstore 16800DuluthAvenueSE Off-Sale3.2Malt Liquor $ 100.00 PriorLakeMN55372 KwikTrip 16751FishPointRoadSE Off-Sale3.2MaltLiquor $ 100.00 PriorLakeMN55372 Lakers Tavern & Pizza 15750Highway13South On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 MGMWine & Spirits 14173Commerce AvenueNE Off-SaleIntoxicating $ 380.00 PriorLakeMN55372 Perron'sSulLago 16154MainAvenueSE #135 On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 PlateonMain 16323MainAveSE On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 ThePointe 16691Highway13South On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 PriorLakeAmateur Baseball Assoc. th5181160 StreetSouth On-Sale3.2MaltLiquor $ 500.00 PriorLake, MN55372 PriorLakeVFWPost #6208 16306MainAvenueSE ClubLicense $ 650.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 850.00 Teresa'sMexican Restaurant 6880BoudinStreetNE On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 TJHooligan's 16731Highway13South On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 VikingLiquorBarrel 16290Highway13South Off-SaleIntoxicating $ 380.00 PriorLakeMN55372 VillageLiquor 16731Highway13South #102 Off-SaleIntoxicating $ 380.00 PriorLakeMN55372 TheWildsGolfClub 3151WildsRidgeNW On-SaleIntoxicating $ 6,600.00 PriorLakeMN55372 SundayOn-Sale $ 200.00 6,800.00 TotalLicenseFees $ 71,340.00 ITEM: 5CCITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Steve Hart, Park & Recreation Manager PRESENTED BY: Andy Brotzler, Public WorksDirector/CityEngineer AGENDA ITEM: 2022Refuse HaulerLicenseRenewal GOAL AREA Public Safety OBJECTIVE: 4. Ensure asafeandqualitybuiltenvironment. RECOMMENDED ACTION: Approve theissuance ofa2022Refuse Hauler License totheestablishments listedbelow. BACKGROUND: PriorLakeCityCode provides thattheCityCouncil mustapprove therenewal ofallrefuse haulerthlicenses. Alllicenses expire onJune30 ofeach year. Thefollowing establishments have submitted anapplication andpaidthefeetorenewtheirrefuse hauler license: CITYOFPRIORLAKE 2022REFUSEHAULERAPPLICANTS Buckingham Disposal, Inc. Republic Services 5980 Credit River Road SE 9813Flying CloudDrive Prior Lake, MN55372 EdenPrairie, MN55347 952) 226-6441 (952) 941-5174ResidentialandCommercial) (Residential andCommercial) Certified Recycling, LLC Suburban Waste Services 14305 EwingAvenue South POBox 44634 Burnsville, MN55306 EdenPrairie MN 55344 952) 894-1448 (952) 937-8900Recycling) (Residential) Dick’sSanitation Service, Inc. Waste Management ofMN, Inc. P.O. Box769 1901Ames Drive Lakeville, MN55044 Burnsville MN55306 952) 469-2239 (952) 882-2300ResidentialandCommercial) (Residential andCommercial) CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 Item5C Page | 2 Aspen Waste Systems of Minneapolis 2951Weeks Avenue SE Minneapolis, MN 55414 612) 884-8000Residential) FINANCIAL IMPACT: Refusehaulerfees arebasedonthenumberoftrucks usedtohaul refuse intheCity. Atotalof 4,585.00hasbeen collected fortherefusehauler license renewals. ALTERNATIVES: 1. Motion andsecondtoapprove theissuance oftherefuse haulerlicenses aslistedabove aspart oftheconsent agenda. 2. Motion andsecond toremovethisitemfromtheconsentagenda forseparate discussion. ITEM: 5DCITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Jason Etter, SeniorAccountant PRESENTED BY: CathyErickson, Finance Director AGENDA ITEM: Approval ofApril2022Treasurer'sReport GOAL AREA High-ValueCityServices OBJECTIVE: 1. Establishfinancial stability forallfunds. RECOMMENDED ACTION: AdopttheApril2022Treasurer’sReport aspresented. BACKGROUND: Thepurpose ofthisagendaitem isfortheCouncil toconsider theapproval ofthemonthly Treasurer’sReport forApril2022. Thisinformation isbeingprovided inaformatwhichcategorizes thebalances byfund type. Asecondpage isincluded toprovidetheFundBalance Classification foreach ofthefunds aswell astherestrictions placed upontheirusage. Even though the business-type fundsmayhave an “unrestricted” fund balance andtheGeneral Fundmayhave an “unassigned” fund balance, itdoesnotnecessarily meanthebalance isavailable to appropriate tootherfunds forotheruses. Thereareconstraints inplaceduetothetypeoffund orbased ontheCity’sfundbalance policy. FINANCIAL IMPACT: Staffhasprepared apreliminary summary oftheactivityinthefunds forthemonthofApril2022. TheTreasurer’sReport reflects beginning cashbalance, receipts, disbursements, andtheending cashbalance foreachfund. Asshown ontheApril 2022Treasurer’sReport, thebalance ofcash andinvestments is $42.6million. Ofthisbalance, $41.8million isinvestments and $800thousand iscash. TheReportispreliminary, unaudited andwillchange. Theattached memorandum provides asummary ofthefunddescriptions. ALTERNATIVES: 1. Motion andsecond aspartoftheconsent agenda toapprovetheApril2022Treasurer’s Report aspresented. 2. Motion andsecond toremove theTreasurer’sReportfromtheconsent agenda for additional discussion. ATTACHMENTS: 1. 2022AprTreasurer'sReport (attach 1) 2. 2022AprTreasurer Report (attach2) CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 Item5D Page | 2 3. 2022AprTreasurer'sReport (attach 3) TREASURER’S REPORT FUND DESCRIPTIONS General Fund - Represents the resources to support general operating budget expenditures of the City. The year- end fund balance represents dollars that have accumulated over a period of time. The City Council has designated a minimum of 45% of the current operating budget, for working capital to finance city operations. Water Fund - For the collection of water billing utility revenue. This enterprise fund balance is allocated for the operational costs of the Water departments and normally reserved for large capital municipal system expenses. Sewer Fund - For the collection of sewer billing utility revenue. This enterprise fund balance is allocated for the operational costs of the Sewer department and normally reserved for large capital municipal system expenses. Water Quality Fund - An enterprise account funded by the storm water charge that is generated on the bi-monthly water and sewer utility bills. The funds in the account are dedicated to finance water quality improvements including departmental administration, storm water maintenance operations and improvement projects related to water quality. Cable Franchise Fund - Acts as a clearing house for funds received from the cable franchise company as specified by ordinance. Capital Park Fund - Dedicated funds received from developers in accordance with the City’s Park Dedication requirement when land is platted. Funds are collected for the purpose of developing the City’s neighborhood park and trail system. These dollars are programmed throughout the course of the City’s Capital Improvement Program. Police Forfeiture Fund – Special revenue fund created to track criminal and DWI forfeiture revenues and expenditures. ED Special Revenue – Reserved and expended at the direction of the Prior Lake Economic Development Authority for specific economic development activity as allowed by MN Statute. The purpose is to provide economic incentives for new business expansion within the community. ED Fed/MN Loan Funds - Accounts for the proceeds of economic development grants received either from the federal government or the State of Minnesota to provide seed money for a revolving loan account. This provides economic incentive for new business expansion within the community. DAG Special Revenue Fund - Special revenue fund related to costs the City incurs in connection with a subdivision. Fees are paid to the City by the developer when the Development Contract and Final Plat are approved by City Council. Revenues are used to pay for legal expenses incurred with review and approval of the plat and inspection services on developer installed-utilities for newly approved subdivisions within Prior Lake. Federal ARPA Fiscal Recovery Fund – Special revenue fund created to track American Rescue Plan Act funds received by the City. Water Revenue Bond Fund – PW Bldg - Debt service fund to pay bonds issued to construct the public works maintenance building. The capital facility charge generated on the utility bill provides the funding for the bond payments which occur semi-annually. Funds are transferred from Sewer and Water Fund. Water Revenue Bond Fund – WT Plant - Debt service fund to pay bonds issued to construct the water treatment plant. Revenue from the utility bills provides the funding for the bond payments which occur semi-annually. Funds are transferred from Sewer and Water Fund. Tax Increment Funds - Represents an accumulation of funds such as bond proceeds and project administration fees charged to companies requesting project write-downs in the form of tax increment financing for new and/or redevelopment. The TIF district property taxes are then deposited in a number of tax increment funds established to track their respective revenue. Revolving Equipment Fund - A regular replacement schedule for equipment needs of the City in excess of $5,000 has been adopted. Periodic fund transfers are appropriated to provide a funding source for the acquisition and purchase of new and replacement vehicles and equipment. Revolving Park Equipment Fund – Consists of funds reserved for the replacement of park equipment. Facilities Management Fund – Established in conjunction with the Facilities Management Plan (FMP). The FMP provides a schedule of major repairs, replacements and upgrades to all of the City facilities. Permanent Improvement Revolving Fund – Consists of funds available for annual street mill and overlay projects with any remaining funds to be used to provide upfront funding for future improvements. Construction Fund - Represent unexpended bond proceeds that are reserved to pay for improvement projects approved by the City Council on an annual basis. These dollars are necessary to complete outstanding construction contracts and related engineering and professional services. Street Oversize Fund - Consists of dedicated revenue generated by fees associated with new development and new construction building permits for the funding of pedestrian related improvements i.e., bikeways, sidewalks, trails plus right of way acquisition along collector streets and occasional collector street links. Trunk Reserve Fund - Consists of dedicated revenue generated from utility connection permits and acreage fees assessed at time of sewer and water installation for the recovering of trunk oversizing costs and central municipal system improvements i.e., wells lift stations, force mains, etc. These dollars are programmed throughout the course of the City’s capital improvement plan. Water Storage Fund - Accounts for the water tower fee that is charged and collected on building permits. This fund balance is 100% reserved for the construction of elevated and ground water storage facilities. Debt Service Funds - Represents prepayments of special assessments, property tax collections and special levies needed to pay the outstanding bonded indebtedness of the City. This fund balance is 100% reserved for the payment of bond principal and interest. Agency Fund - Accounts for the residential building permit deposit that is refunded to the building contractor upon final inspection. This provides financial assurance that the property site will be adequately cleaned up and debris free before an occupancy permit is granted. Severance Compensation Fund – Internal Service Fund established to partially fund the City’s compensated absence liability associated with the accrued vacation and sick leave for employees upon termination as recommended by the State Auditor’s Office. Insurance Fund – Internal Service Fund established to track revenues and expenditures related to insurance funds. City of Prior Lake Treasurers Report April 2022 Fund 4/1/2022 4/30/2022 Fund Type & Name No. Balance Receipts Disbursements Balance Business-Type Funds Water Fund 601 5,944,942.51$ 586,622.17$ 258,707.17$ 6,272,857.51$ Sewer Fund 604 3,305,422.67 672,480.91 247,788.25 3,730,115.33 Water Quality Fund 602 1,992,287.26 196,223.05 52,374.38 2,136,135.93 Total Business-Type Funds 11,242,652.44$ 1,455,326.13$ 558,869.80$ 12,139,108.77$ Governmental-Type Funds General Fund 101 9,397,886.63$ 432,663.86$ 1,801,449.39$ 8,029,101.10$ Special Revenue Funds Cable Franchise Fund 210 117,275.65$ 5,494.25$ 3,576.00$ 119,193.90$ Capital Park Fund 225 1,634,910.83 3,418.19 1,468.50 1,636,860.52 Police Forfeiture Fund 235 171,119.47 158.57 20,210.00 151,068.04 EDA Special Revenue 240 28,567.99 2,067.44 13,066.83 17,568.60 Econ Dev Federal Revolving Loan Fund 250 133,914.13 140.72 - 134,054.85 Econ Dev MN Revolving Loan Fund 255 - - - - Developer Agreement Fund 260 1,564,521.51 16,864.11 201,431.14 1,379,954.48 Federal ARPA Fiscal Recovery Fund 265 1,488,793.64 275.44 - 1,489,069.08 Total Special Revenue Funds 5,139,103.22$ 28,418.72$ 239,752.47$ 4,927,769.47$ Capital Project Funds Tax Increment 402 -$ -$ -$ -$ TIF #1-3 413 117,773.93 123.76 - 117,897.69 TIF #3-1 414 352,096.74 369.98 - 352,466.72 TIF #5-1 416 11,426.44 12.01 - 11,438.45 TIF #6-1 417 468,597.23 492.40 - 469,089.63 TIF #1-4 418 - - - - TIF #1-5 419 36,381.34 38.23 - 36,419.57 Revolving Equipment Fund 410 925,243.17 872.85 94,586.09 831,529.93 Revolving Park Equipment Fund 430 1,170,752.39 1,214.56 14,897.22 1,157,069.73 Facilities Management Fund 440 1,334,316.48 1,375.95 24,877.65 1,310,814.78 Permanent Impr Revolving Fund 450 331,464.13 131,560.75 - 463,024.88 Construction Fund 501 1,572,063.15 585,303.46 166,264.99 1,991,101.62 Trunk Reserve Fund 502 5,297,814.63 80,936.02 - 5,378,750.65 Street Oversize Fund 503 1,423,277.42 1,495.57 - 1,424,772.99 Water Storage Fund 505 - - - - Total Capital Project Funds 13,041,207.05$ 803,795.54$ 300,625.95$ 13,544,376.64$ Debt Service Funds 314-351 & 549-573 $ 2,556,236.96 9,455.17$ -$ 2,565,692.13$ Agency Fund 801 740,325.00$ 24,250.00$ -$ 764,575.00$ Total Governmental Type Funds 30,874,758.86$ 1,298,583.29$ 2,341,827.81$ 29,831,514.34$ Internal Service Funds 7xx 650,788.49$ 4,108.22$ -$ 654,896.71$ Total All Funds 42,768,199.79$ 2,758,017.64$ 2,900,697.61$ 42,625,519.82$ Investment Pool & Ratio as of 4/30/2022 98.18% 41,851,690.03$ This report does not reflect financial obligations from contracts, agreements, purchases, services received, etc. City of Prior Lake Treasurers Report April 2022 Fund Type & Name Fund Balance Classification Constraints Business-Type Funds Water Fund Unrestricted Identified on utility bill for this purpose Sewer Fund Unrestricted Identified on utility bill for this purpose Water Quality Fund Unrestricted Identified on utility bill for this purpose Governmental-Type Funds General Fund Unassigned Cash flow, emergencies, one-time opportunities Special Revenue Funds Cable Franchise Fund Assigned for communications Statutory obligation to use for PEG access Capital Park Fund Assigned for capital improvements Contractually obligated; park dedication fees EDA Special Revenue Assigned for development Economic Development Econ Dev Federal Revolving Loan Fund Restricted for economic development Economic Development Econ Dev MN Revolving Loan Fund Restricted for economic development Economic Development Developer Agreement Fund Assigned for development Contractually obligated; Federal ARPA Recovery Funds Restricted for equipment and improvements Contractually obligated Capital Project Funds Tax Increment Restricted for tax increment Contractually obligated by tax increment agreements TIF #1-3 Restricted for tax increment Contractually obligated by tax increment agreements TIF #1-4 Restricted for tax increment Contractually obligated by tax increment agreements TIF #3-1 Restricted for tax increment Contractually obligated by tax increment agreements TIF #4-1 Restricted for tax increment Contractually obligated by tax increment agreements TIF #5-1 Restricted for tax increment Contractually obligated by tax increment agreements TIF #6-1 Restricted for tax increment Contractually obligated by tax increment agreements Revolving Equipment Fund Assigned for capital improvements Identified for equipment replacement Revolving Park Equipment Fund Assigned for capital improvements Identified for park equipment replacement Facilities Management Fund Assigned for capital improvements Identified for funding Facilities Management Plan Permanent Improvement Revolving Fund Assigned for capital improvements Identified for funding street improvement projects Construction Fund Restricted for capital improvements Construction projects in progress Trunk Reserve Fund Assigned for capital improvements Contractually obligated by developer agreements Street Oversize Fund Assigned for capital improvements Contractually obligated by developer agreements Water Storage Fund Assigned for capital improvements Contractually obligated by developer agreements Debt Service Funds Restricted for Debt Service Reserved for contractually obligated debt service Agency Fund N/A Escrows to be reimbursed to depositors Internal Service Funds Unrestricted Identified as payment for severance compensation and insurance ITEM: 5ECITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Christine Watson, PublicWorks Coordinator PRESENTED BY: Andy Brotzler, Public WorksDirector/CityEngineer AGENDA ITEM: Approve Agreement withtheMetropolitan Council forWater Efficiency Grant GOAL AREA Environmental Stewardship & Recreation OBJECTIVE: 1. Provide cleanandsafedrinking waterforthecommunity and protect drinking waterresources. RECOMMENDED ACTION: Approve andexecuteanagreement withtheMetropolitan Council forawater efficiency grant. BACKGROUND: TheMetropolitan Council hasrenewed theirwaterefficiency grantprogramtorunforanother two- year cycle fromJuly1, 2022 through June 30, 2024. Theprogram allows municipalities tooffer rebatestowatercustomers whopurchase andinstallwater-efficientappliances and/orirrigation devices toreplace older, less efficient models. Thecity hasbeenawarded a $9,600grant from theMetropolitan Council forthisnewgrant cycle witharequired matching cityshareof $2,400. Thisallows theprogram tobeexpanded toinclude indoor appliances asillustrated below (the currentprogram, which expires June30th, includes irrigation controllers only). Est. Gal # of Est. Total Rebate Total CityCost MCESCost Item Saved/Yr Rebates GalSaved Max Rebate (20%) (80%) Dishwasher 5,000 15 75,000 $300 $4,500 $900 $3,600 Toilet 7,500 15 112,500 $100 $1,500 $300 $1,200 Washingmachine 3,000 15 45,000 $300 $4,500 $900 $3,600 Irrigationcontroller 8,000 15 120,000 $100 $1,500 $300 $1,200 352,500 $12,000 $2,400 $9,600 Theprogram allowsflexibility toissue more rebates foronetypeofdevice thananother ifoneis clearlymorepopularwith residents. Theprogram isnotlocked intoaspecific number ofeach typeaspresented intheestimates above, andthe program willbemanaged financially uptothe totalfunding amount of $12,000. Anewwebsite pageandsocialmediapostshavebeendrafted topromote thisprogram, anda newonline formwillbeusedbyresidents tosubmittheirapplications. FINANCIAL IMPACT: The citywill paytherebatestotheresidents up-front, thengetreimbursed 80% bythe Metropolitan Council onaquarterly basis. Rebates willbepaidfromtheWater Utility Fund. Approximately ten (10) hoursofstafftimewillbeneeded permonth toadminister thisprogram. CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 Item5E Page | 2 ALTERNATIVES: 1. Motion andsecond toapprove andauthorize theexecution ofanagreement withthe Metropolitan Council forawaterefficiency grant aspartoftheconsentagenda. 2. Motion andsecond toremovethisitemfromtheconsentagenda foradditional discussion. ATTACHMENTS: 1. PriorLake MCES Water Efficiency GrantAgreement - Attach 1 1 METROPOLITAN COUNCIL CLEAN WATER FUND GRANT AGREEMENT NO. SG-17781 This Clean Water Fund Grant Agreement ("Grant Agreement") is entered into between the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota ("Council") and the City of Prior Lake, a municipal corporation ("Grantee"). RECITALS 1. Minnesota Session Laws 2021, 1st Special Session, Chapter 1, Article 2, Section 8, appropriated to the Council funds from the Legacy Amendment's Clean Water Fund ("Clean Water Fund") for State fiscal years 2022 and 2023, to establish a water demand reduction grant program to encourage municipalities in the metropolitan area to implement measures to reduce water demand to ensure the reliability and protection of drinking water supplies. 2. The Council is authorized by Minnesota Statutes sections 473.129, subdivision 4 to apply for and use grants from the State for any Metropolitan Council purpose and may dispose of the money in accordance with the terms of the appropriation. 3. The Grantee is authorized to receive grants from the Clean Water Fund for a water demand reduction program to implement measures to reduce water demand to ensure the reliability and protection of drinking water supplies. 4. On May 4, 2022, the Council authorized the granting of portions of the appropriation to the Grantees participating in the grant program. 5. The Grantee represents that it is duly qualified and agrees to perform all services described in this Grant Agreement to the reasonable satisfaction of the Council. GRANT AGREEMENT 1. Term of Grant Agreement. 1.1. Effective Date. The effective date of this Grant Agreement is the date this agreement is fully executed. 1.2. Grant Activity Period. The first day of the month following the Effective Date through and including the expiration date. 1.3. Expiration Date. Upon satisfactory fulfillment of obligations, but in no event later than June 30, 2024. 1.4. Survival of Terms. The following clauses survive the expiration, termination or cancellation of this Grant Agreement; 9. Liability and Insurance; 10. Audits; 11. Government Data Practices; 13. Data Availability; 14. Governing Law, Jurisdiction and Venues; 16. Data Disclosure; 18. Future Eligibility. 2. Duties, Representations and Warranties of Grantee and Use of Grant Funds. 2.1. The Grantee agrees to conduct, administer and complete in a satisfactory manner and in accordance with the terms and conditions of this Grant Agreement the program ("Grantee Program") which is 2 described in Grantee's application to Council for assistance under the Council's Clean Water Fund grant program. Grantee’s application is incorporated into this Grant Agreement as Exhibit A. Grantee agrees to perform the Grantee Program in accordance with the timeline in Exhibit B of this Grant Agreement and to undertake the financial responsibilities described in Exhibit B. The Grantee has the responsibility and obligation to complete the Grantee Program as described in Exhibit B. The Council makes no representation or warranties with respect to the success and effectiveness of the Grantee Program. The Council acknowledges that Grantee Program work may be limited to soliciting participation by its residents and businesses in the Grantee Program and requires additional work by the Grantee only to the extent that residents and businesses choose to participate in the Grantee Program, as described in Exhibit B. The Grant Funds must be entirely passed through and can only be used for authorized rebates or grants for qualifying activities. 2.2. Grantee Representations and Warranties. The Grantee represents and warrants to Council, as follows: A. It has the legal authority to enter into this Grant Agreement and to conduct and administer the Grantee Program and use the Grant Funds for the purpose or purposes described in this Agreement B. It has taken all actions necessary for its execution of the Agreement and has provided to Council a copy of the resolution by its governing body authorizing Grantee to enter into this Agreement. C. It has the legal authority to undertake the Clean Water Fund Grant Program, including the Grantee’s financial responsibilities in Exhibit B D. As specified in Exhibit A only Grantee’s authorized representative may provide certifications required in this Grant Agreement and submit pay claims for reimbursement of Grantee Program costs. E. It will comply with all the terms of this Agreement. F. It will comply with all requirements of Clean Water Funding legislation and appropriations, except for requirements that this Grant Agreement explicitly states will be handled by the Council. G. It has made no material false statement or misstatement of fact in connection with the Grant Funds, and all of the information it has submitted or will submit to the Council relating to the Grant Funds or the disbursement of any of the Grant Funds is and will be true and correct. It agrees that all representations contained in its application for the Clean Water Fund Grant are material representations of fact upon which the Council relied in awarding this Grant and are incorporated into this Agreement by reference. H. It is not in violation of any provisions of its charter or of the laws of the State of Minnesota, and there are no material actions, suits, or proceedings pending, or to its knowledge threatened, before any judicial body or governmental authority against or affecting it and is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority which would impair its ability to enter into this Grant Agreement, or to perform any of the acts required of it in the Agreement. I. Compliance with the requirements of this Grant Agreement is not prevented by, is a breach of, or will result in a breach of, any term, condition, or provision of any agreement to which it is bound. 3 J. The Grantee Program will not violate any applicable zoning or use statute, ordinance, building code, rule or regulation, or any covenant or agreement of record relating thereto. K. The Grantee Program will be conducted in full compliance with all applicable laws, statutes, rules, ordinances, and regulations issued by any federal, state, or other political subdivisions having jurisdiction over the Grantee Program. L. It will comply with the financial responsibility requirements contained in Exhibit B. M. It will furnish satisfactory evidence regarding these representations if requested by the Council. 3. Time. Grantee must comply with all time requirements described in this Grant Agreement. In the performance of this Grant Agreement, time is of the essence. 4. Eligible Costs. Eligible costs are those costs incurred by parties within the jurisdiction of the Grantee for 80% of rebate or grant payments as defined in Exhibit B. The Council will not reimburse Grantee for non-eligible costs. Any cost not defined as an eligible cost or not included in the Grant Grantee Program or approved in writing by the Council is a non-eligible cost. 5. Consideration and Payment. 5.1 Consideration. The Council will reimburse Grantee for eligible costs performed by the Grantee during the Grant Period as specified in this agreement. The Council bears no responsibility for any cost overruns that may be incurred by the Grantee or sub-recipients of any tier. The initial Grant amount to Grantee under this Grant Agreement is $9,600. The Grantee may be eligible to receive additional Grant amounts or an adjustment in Grant amount in accordance with the procedure in the Grant Amendment Form attached and incorporated as Exhibit C. Upon signature by both Grantee and Council on Exhibit C this Grant is amended by the amount in Exhibit C. 5.2. Advance. The Council will make no advance of the Grant Amount to Grantee. 5.3. Payment. To receive payment, the Grantee must submit a Reimbursement Request on forms provided by the Council, including electronically scanned receipts to verify the cost of eligible devices reported for each reporting period. Reimbursement Request must be submitted quarterly, even if there are no eligible costs to report. The Grantee must describe its compliance with its the financial requirements, work completed including specific addresses where work was done, and provide sufficient documentation of grant eligible expenditures and any other information the Council reasonably requests. The Council will promptly pay the Grantee after the Grantee presents to the Council a Reimbursement Request and scanned copies of all receipts verifying the cost for all eligible devices reported and the Council’s Authorized Representative accepts the invoiced services. 6. Conditions of Payment. 6.1. For each approved device for which Grantee requests payment, Grantee must certify the following to the Council: (1) the device has been purchased ; (2) Grantee received receipts for the device; (3) the purchase was not performed in violation of federal, state, or local law, or regulation. 4 6.2. Conditions Precedent to Any Reimbursement Request. The obligation of the Council to make reimbursement payments is subject to the following conditions precedent: A. The Council’s receipt of a Reimbursement Request/Progress Report for the funds requested, and electronic copies of receipts verifying the cost for all eligible devices for that reporting period B. If requested by the Council (in form and substance acceptable to the Council), evidence that (i) the Grantee has legal authority to and has taken all actions necessary to enter into this Agreement and (ii) this Agreement is binding and enforceable against the Grantee. C. There is no Event of Default under this Grant Agreement or event which would constitute an Event of Default but for the requirement that notice be given or that a period of grace or time elapse. D. The Grantee has supplied to the Council all other items that the Council may reasonably require to assure good fiscal oversight of state's funding through the Clean Water Fund. 7. Authorized Representative. The Council’s Authorized Representative is: Name: Brian Davis or successor Title: Principal Engineer Mailing Address: 390 North Robert Street St. Paul, MN 55101 Phone: (651) 602-1519 E-Mail Address: brian.davis@metc.state.mn.us The Council’s Authorized Representative has the responsibility to monitor the Grantee’s performance and the authority to accept the services provided under this Grant Agreement. If the services are satisfactory, the Council’s Authorized Representative will certify acceptance on each invoice submitted for payment. The Grantee’s Authorized Representative is: Name: Christine Watson, Public Works Coordinator Mailing Address: 17073 Adelmann St SE, Prior Lake, MN 55372 Phone: 952-447-9855 E-Mail Address: cwatson@PriorLakeMN.gov If the Grantee’s Authorized Representative changes at any time during this Grant Agreement, the Grantee must immediately notify the Council and within 30 days provide a new City resolution (if such resolution is necessary) specifying the new Representative. 8. Assignment, Amendments, Waiver, and Grant Agreement Complete. 8.1 Assignment. The Grantee may neither assign nor transfer any rights or obligations under this Grant Agreement without the prior written consent of the Council and a fully executed Assignment Agreement. 8.2 Amendments. Any amendment to this Grant Agreement must be in writing and will not be effective until it has been executed and approved by the appropriate parties. 5 8.3 Waiver. If the Council fails to enforce any provision of this Grant Agreement, that failure does not waive the provision or its right to enforce it. 8.4 Grant Agreement Complete. This Grant Agreement contains all negotiations and agreements between the Council and the Grantee. No other understanding regarding this Grant Agreement, whether written or oral, may be used to bind either party. 9. Liability and Insurance. 9.1 Liability. The Grantee and the Council agree that they will be responsible for their own acts and the results thereof to the extent authorized by law, and they shall not be responsible for the acts of the other party and the results thereof. The liability of the Council is governed by the Minn. Stat. Chapter 466 and other applicable laws. The liability of the Grantee is governed by the provisions contained in Chapter 466 and other applicable laws. 9.2 Relationship of the Parties. Nothing contained in this Grant Agreement is intended or should be construed in any manner as creating or establishing the relationship of co-partners or a joint venture between the Grantee and the Council, nor shall the Grantee be considered or deemed to be an agent, representative, or employee of the Council in the performance of this Grant Agreement, or the Grantee Program. The Grantee represents that it has already or will secure or cause to be secured all personnel required for the performance of this Grant Agreement and the Grantee Program. All personnel of the Grantee or other persons while engaging in the performance of this Grant Agreement the Grantee Program shall not have any contractual relationship with the Council related to the work of the Grantee Program and shall not be considered employees of the Council. In addition, all claims that may arise on behalf of said personnel or other persons out of employment or alleged employment including, but not limited to, claims under the Workers’ Compensation Act of the State of Minnesota, claims of discrimination against the Grantee, its officers, agents, contractors, or employees shall in no way be the responsibility of the Council. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the Council, including but not limited to, tenure rights, medical and hospital care, sick and vacation leave, disability benefits, severance pay and retirement benefits. 10. Audits. Under Minn. Stat. § 16C.05, subd. 5, the Grantee’s books, records, documents, and accounting procedures and practices relevant to this Grant Agreement are subject to examination by the Council and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the termination date of this Grant Agreement. 11. Government Data Practices. The Grantee and Council must comply with the Minnesota Government Data Practices Act, Minn. Stat. Chapter 13, as it applies to all data provided by the Council under this grant contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee under this Grant Agreement. The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this clause by either the Grantee or the Council. If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately notify the Council. 12. Workers’ Compensation. 6 The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers’ compensation insurance coverage. The Grantee’s employees and agents will not be considered Council employees. Any claims that may arise under the Minnesota Workers Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the Council’s obligation or responsibility. 13. Data Availability. To the extent and as requested by the Council, Grantee agrees to comply with Minn. Stat. § 114D.50, subd. 5 requirements for data collected by the Grantee Programs funded with money from the Clean Water Fund that have value for planning and management of natural resources, emergency preparedness and infrastructure investments, including but not limited to the requirement that to the extent practicable, summary data and results of Grantee Programs funded with money from the Clean Water Fund should be readily accessible on the internet and identified as a Clean Water Fund Grantee Program. The Council will put overall summary information on the internet and will encourage the Grantee put its city information on the web. Grantee understands and agrees that Council may list its name and summary information on the internet or in any other Grantor reporting. Data collected by the Grantee Programs, if any, funded with money from the Clean Water Fund that have value for planning and management of natural resources, emergency preparedness, and infrastructure investments must conform to the enterprise information architecture developed by the Office of MN.IT Services. Spatial data must conform to geographic information system guidelines and standards outlined in that architecture and adopted by the Minnesota Geographic Data Clearinghouse at the Minnesota Geospatial Information Office. A description of these data that adheres to the Office of MN.IT Services geographic metadata standards must be submitted to the Minnesota Geospatial Information Office to be made available online through the clearinghouse and the data must be accessible and free to the public unless made private under chapter 13. To the extent practicable, summary data and results of the Grantee Program funded with money from the clean water fund should be readily accessible on the Internet and identified as a Clean Water Fund Grantee Program. 14. Governing Law, Jurisdiction, and Venue. Minnesota law, without regard to its choice-of-law provisions, governs this Grant Agreement. Venue for all legal proceedings out of this Grant Agreement, or its breach, must be in the appropriate state or federal court of competent jurisdiction in Ramsey County, Minnesota. 15. Termination. The Council may cancel this Grant Agreement at any time, with or without cause, upon 30 days’ written notice to the Grantee. Upon termination, the Grantee will be entitled to payment for services prequalified and satisfactorily performed before the termination notice. 16. Data Disclosure. Under Minn. Stat. § 270C.65, subd. 3, and other applicable law, the Grantee consents to disclosure of its federal employer tax identification number, and/or Minnesota tax identification number, already provided to the Council, to federal and state tax agencies and Council personnel involved in the payment of Council obligations. Grantee will require compliance with this Section 16 by Grantee’s subrecipient of Grant funds and shall submit evidence of such compliance to Council as requested. 17. Notices. 7 In addition to any notice required under applicable law to be given in another manner, any notices required hereunder must be in writing and must be personally served or sent by email or United States mail, to the business address of the party to whom it is directed. The business address is the address specified below or such different address as may be specified, by either party by written notice to the other: To the Grantee at: Christine Watson, Public Works Coordinator 17073 Adelmann St SE, Prior Lake, MN 55372 952-447-9855 cwatson@PriorLakeMN.gov To the Council’s Authorized Representative at: Name: Brian Davis or successor Title: Principal Engineer Mailing Address: 390 North Robert Street St. Paul, MN 55101 Phone: (651) 602-1519 E-Mail Address: brian.davis@metc.state.mn.us 18. Miscellaneous. 18.1 Report to Legislature. As provided in Minn. Stat. § 3.195, the Council must submit a report on the expenditure and use of money appropriated under the Clean Water Fund to the legislature by January 15 of each year. The report must detail the outcomes in terms of additional use of Clean Water Fund resources, user satisfaction surveys, and other appropriate outcomes. The grantee agrees to provide to the Council by January 1 of each year a report on any user satisfaction surveys it has related to this Grantee Program, and other appropriate outcomes of the Grantee Program as prescribed in Section 18.3 of this Agreement. 18.2 Supplement. The funds granted under this agreement are to supplement and shall not substitute for traditional sources of funding. Grantee certifies to the Council that there was and is no traditional Grantee sources of funding for the City to help fund 80% of the subject water efficiency rebate or grant work. 18.3 Measurable Outcomes. A Grantee Program or program receiving funding from the Clean Water Fund must meet or exceed the constitutional requirement to protect, enhance, and restore water quality in lakes, rivers and streams and to protect groundwater and drinking water from degradation. A Grantee Program or program receiving funding from the Clean Water Fund must include measurable outcomes, as defined in Minn. Stat. § 3.303, subdivision 10, and a plan for measuring and evaluating the results. A Grantee Program or program must be consistent with current science and incorporate state-of-the-art technology. All information for funded Grantee Program work, including the proposed measurable outcomes, must be made available for publication on the web site required under Minn. Stat. § 3.303, subdivision 10, as soon as practicable and forwarded to the Council and the Legislative Coordinating Commission under the provisions of Minn. Stat. § 3.303, subd. 10. The Grantee must compile and submit all information for funded Grantee Programs or programs, including the proposed measurable outcomes and all other items required under Minn. Stat. § 3.303, subdivision 10, to the Council and, if requested by the Council, the Legislative Coordinating Commission as soon as practicable or by January 15 of the applicable fiscal year, whichever comes first. 8 18.4 Minn. Stat. § 16B.98. Grants funded by the Clean Water Fund must be implemented according to section 16B.98 and must account for all expenditures. 18.5 Benefit to Minnesota Waters. Money from the Clean Water Fund may only be spent on Grantee Programs that benefit Minnesota waters. 18.6 Website. If the Grantee has information on its website about the water efficiency grant program under Minn. Stat. § 114D.50, the Grantee will when practicable in accordance with Minn. Stat. § 114D.50, subd. 4(f) prominently display on the Grantee’s website home page the Legacy logo accompanied by the phrase "Click here for more information." When a person clicks on the Legacy logo image, the website must direct the person to a web page that includes both the contact information that a person may use to obtain additional information, as well as a link to the Council’s and Legislative Coordinating Commission Website required under section 3.303, subdivision 10. 18.7 Future Eligibility. Future eligibility for money from the Clean Water Fund is contingent upon the Grantee satisfying all application requirements related to Council’s fulfillment of Minn. Stat. 114D.50 as well as any additional requirements contained in 2021, 1st Special Session, Chapter 1, Article 2, Section 8. 18.8 Prevailing Wages. The Grantee agrees to comply with all of the applicable provisions contained in chapter 177 of the Minnesota Statutes, and specifically those provisions contained in Minn. Stat. 177.41 through 177.435, as they may be amended, modified or replaced from time to time with respect to the Grantee Program. By agreeing to this provision, the Grantee is not acknowledging or agreeing that the cited provisions apply to the Grantee Program. 18.9 Disability Access. Where appropriate, Grantee of clean water funds, in consultation with the Council on Disability and other appropriate governor-appointed disability councils, boards, committees, and commissions, should make progress toward providing greater access to programs, print publications, and digital media for people with disabilities related to the programs the recipient funds using appropriations made in this agreement. 18.10. General Provisions. i) Lawsuit. This Grant shall be canceled if a court determines that the appropriation illegally substitutes for a traditional source of funding. ii) Termination Due to Lack of Funds. Grantee recognizes that Council’s obligation to reimburse Grantee for eligible Grantee Program costs is dependent upon Council’s receipt of funds from the State of Minnesota appropriated to Council under 2021 Session Laws, 1st Special Session, Chapter 1, Article 2, Section 8. Should the State of Minnesota terminate such appropriation or should such funds become unavailable to Council for any reason, Council shall, upon written notice to Grantee of termination or unavailability of such funds, have no further obligations for reimbursement or otherwise under this Grant Agreement. In the event of such written notice, Grantee has no further obligation to complete the Grantee Program as required by this Grant Agreement. 19. Default and Remedies. 19.1 Defaults. The Grantee's failure to fully comply with any of the provisions contained in this Grant Agreement constitute an event of default ("Event of Default"). 9 19.2. Remedies. Upon an event of default, the Council may exercise any one or more of the following remedies: a. Refrain from disbursing the Grant. b. Demand that all or any portion of the Grant already disbursed be repaid to it, and upon such demand the Grantee shall repay such amount to the Council. c. Enforce any additional remedies the Council may have at law or in equity. IN WITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized representatives. METROPOLITAN COUNCIL By: ________________________________ Regional Administrator, successor, or delegate Date: _______________________________ GRANTEE: The Grantee certifies that the appropriate person(s) have executed the this agreement on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances. By: ________________________________ Printed Name and Title Date: _______________________________ EXHIBIT A Application from community) Metropolitan Council Water Efficiency Grant Application Form Applicant Information: Municipality: _________________________________________________________________ Municipal Utility: ______________________________________________________________ Mailing Address: ______________________________________________________________ Primary Contact Information: Municipality primary authorized representative (all correspondence regarding the Water Efficiency Grant Program should be addressed to individual named below): NAME: _________________________________________________________________ TITLE: _________________________________________________________________ STREET: _________________________________________________________________ CITY, ZIP: _________________________________________________________________ PHONE: _________________________________________________________________ EMAIL: _________________________________________________________________ Secondary Contact Information: Municipality secondary authorized representative: NAME: _________________________________________________________________ TITLE: _________________________________________________________________ STREET: _________________________________________________________________ CITY, ZIP: _________________________________________________________________ PHONE: _________________________________________________________________ EMAIL: _________________________________________________________________ Municipal Total Per Capita Water Use (2020): _________________ (gallons per person-day) Municipal Residential Per Capita Water Use (2020): _________________ (gallons per person-day) Municipal Ratio of Peak Month to Winter Month Water Use (2020): ________________ Municipality’s estimated annual water savings from proposed program: _______________ (gallons) Program Design: Requested Grant Amount (must equal 80% of total program budget): $______________________ Required Municipality Matching Amount (must equal 20% of total program budget): $______________ Total Program Budget (Requested Grant Amount + Match): $_____________________________ Example Calculation: Requested Grant Amount $16,000 (80% of total) Required Municipality Matching Amount $4,000 (20% of total) Total Program Budget $20,000 (100% of total) Will your program be a grant program or rebate program? ________________________________ Estimated Number of Items: Item Estimated Number Toilets Irrigation Controllers Clothes Washing Machines Irrigation Spray Sprinkler Bodies Irrigation System Audits Dishwashers 2 Project Work Plan and Schedule:* Task Description Responsible Person Start Date Completion Date Municipality may create own project plan and schedule form 3 Communications to Property Owners: How will your program be advertised (check all that apply): Newsletter ____ Print Media ____ Email ____ Twitter ____ Website____ Radio ____ Television ____ Facebook ____ Nextdoor ____ Other Social Media ____ Please attach examples of proposed newsletter, print media, or email communications. Critical Points to Remember: The applying municipality must be served by a municipal public water supply system New construction and new developments are not eligible A portion of each eligible activity’s cost must be paid by the property owner Funds are for rebates or grants only; consulting and city staff time are ineligible Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo on program-related web pages and paper communications 4 Item Gal Saved/Yr of Rebates Total Gal Saved Rebate Max Total Rebate City Cost 20%) MCES Cost 80%) Dishwasher 5,000 20 100,000 $300 $6,000 $1,200 $4,800 Toilet 7,500 25 187,500 $100 $2,500 $500 $2,000 Washing machine 3,000 20 60,000 $300 $6,000 $1,200 $4,800 Irrigation controller 8,000 25 200,000 $100 $2,500 $500 $2,000 547,500 $17,000 $3,400 $13,600 City of Prior Lake Water Efficiency Grant Program Estimates WEBSITE PAGE ** https://www.priorlakemn.gov/rebate Water Efficiency Rebates The City is offering water efficiency rebates for the purchase of WaterSense/Energy Star home appliances and irrigation controllers. The City will reimburse 80% of the purchase cost (up to $300 for washing machines and dishwashers, up to $100 for toilets and irrigation controllers). The following items are eligible for the rebate if they have the noted logos on the packaging: Toilets (WaterSense) Irrigation controllers (WaterSense) Washing machines (Energy Star) Dishwashers (Energy Star) Use the Product Search on the EPA website to see if your appliance is WaterSense approved. Terms and conditions of the program: Only Prior Lake water customers with non-delinquent accounts are eligible for the rebate Appliances must be replacing old, less-efficient appliances New construction homes are not eligible for the rebate Rebate funds are limited and distributed on a first come, first served basis Receipts must be dated July 1, 2022 or later to qualify (program runs through June 30, 2024) Funding for the water efficiency rebate program is provided by the Metropolitan Council, Clean Water Land and Legacy Funds, and the City of Prior Lake. SOCIAL MEDIA ** The water efficiency rebate program now includes home appliances! The City of Prior Lake, in conjunction with the Metropolitan Council, is offering water efficiency rebates to help offset the cost of upgrading to water-efficient appliances and irrigation equipment. The City will reimburse 80% of the purchase cost of the appliance (up to $300 for washing machines and dishwashers, up to $100 for toilets and irrigation controllers). Certain limitations and exclusions apply, learn more here Irrigation controller rebates are available now! Are you preparing your irrigation system for another season? Don’t forget to take advantage of our rebate program for WaterSense smart irrigation controllers and spray bodies. The City will reimburse 80% of the cost of the equipment, up to $100 total. Rebates are offered on a first come first served basis, so get your application in soon. Certain limitations and exclusions apply, learn more here Water-saving appliance rebates are available now! Are you thinking of replacing your old toilet, dishwasher or washing machine with a more efficient model? Take advantage of our rebate program for WaterSense/Energy Star home appliances. The City will reimburse 80% of the cost of the appliance (up to $300 for washing machines and dishwashers, up to $100 for toilets). Rebates are offered on a first come first served basis, so get your application in soon. Certain limitations and exclusions apply, learn more here Want to save water AND save money? Learn how here 1 EXHIBIT B Clean Water Fund Water Efficiency Grant Program Overview & Goal, Structure, and Qualified Activities (should anything herein be contradicted by the Agreement language, the Agreement terms prevail). Metropolitan Council Water Efficiency Grant Program Overview The Metropolitan Council (Council) will implement a water efficiency grant program effective July 1, 2022 to June 30, 2024. Grants will be awarded on a competitive basis to municipalities that are served by a municipal water system. The Council will provide 80% of the program cost; the municipality must provide the remaining 20%. Municipalities will use the combined Council and municipality funds to run their own grant or rebate programs. Grants will be made available in amounts with a minimum of $5,000 and a maximum of $50,000. Grantees will be required to provide estimated water savings achieved through this program for Clean Water, Land & Legacy Amendment reporting purposes. Legislative Directive - Minnesota 2021 Session Law 625,000 the first year and $625,000 the second year are for the water demand reduction grant program to encourage municipalities in the metropolitan area to implement measures to reduce water demand to ensure the reliability and protection of drinking water supplies. Fiscal year 2022 appropriations are available until June 30, 2023, and fiscal year 2023 appropriations are available until June 30, 2024. Grant Program Goal The goal of the water efficiency grant program is to support technical and behavioral changes that improve municipal water use efficiency in the seven-county metropolitan area. Critical Points to Remember The applying municipality must be served by a municipal public water supply system New construction and new developments are not eligible A portion of each eligible activity’s cost must be paid by the property owner Funds are for rebates or grants only; consulting and city staff time are ineligible Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo on program-related web pages and paper communications Grant Program Structure: Administration and Funding The Water Efficiency Grant Program will be administered by Metropolitan Council Environmental Services (MCES) and will be funded with $1,000,000 appropriated by the 2021 Minnesota Legislature. Grant applications will be reviewed and ranked by the MCES Water Supply Planning Unit staff. The remaining $250,000 of this funding has been allocated to a different municipal water efficiency grant project. 2 Grants are only for water efficiency programs offering rebates or grants to property owners who are customers of the municipal water supply system and who replace specified water using devices with approved devices that use substantially less water. Grants will be awarded to municipalities in amounts ranging from $5,000 to $50,000 for providing rebates or grants to property owners. Municipalities will be responsible for the design and operation of their rebate or grant program and its details. Grant payments to the municipality will be for 80% of approved program amounts. The municipality must provide the remaining 20% of the granted/rebated amount to the property owner. Municipality rebates or grants are eligible for reimbursement on device replacements conducted July 1, 2022 through June 30, 2024. Here is an example of the grant funding design: Metropolitan Council Grant Amount $16,000 (80% of total) Municipality Match $4,000 (20% of total) Municipality Grant/Rebate Program Total $20,000 (100% of total) Eligibility This grant program is limited to municipalities in the seven-county metropolitan area. Municipalities eligible per above must apply to participate and, if approved, sign a standard Council Grant Agreement, before any eligible rebates or grants can be submitted for reimbursement. Agreements shall require that municipalities: Entirely pass through grants received (as is being done by MCES) Verify purchase of devices to receive grants Retain records and cooperate with any audits Conduct all communications with property owners and ensure all written communications to property owners include both the Clean Water, Land and Legacy Amendment and the Metropolitan Council’s logo Provide quantitative information for state reporting purposes Eligible water efficiency devices consist of the following: Toilet replacement with a US EPA WaterSense labeled toilet Irrigation controller replacement with a US EPA WaterSense labeled controller, either weather-based or soil moisture-based Clothes washing machine replacement with a US DOE Energy Star labeled clothes washing machine Irrigation spray sprinkler body replacement with a US EPA WaterSense labeled spray sprinkler body Irrigation system audit by an Irrigation Professional certified by a US EPA WaterSense program Residential dishwasher replacement with a US DOE Energy Star labeled residential dishwasher Expenses eligible for reimbursement are the out-of-pocket cost of the device and its installation only, not to include any owner labor costs. In addition, new construction and new developments are ineligible, as this program is intended as a current infrastructure replacement program. Application Process Applicants must be served by a municipal public water supply system 3 Municipalities will submit MCES supplied application form by March 31, 2022. Required information includes: o the municipality’s rebate or grant program design and work plan o proposed examples of communications to property owners o requested total grant amount o estimated annual amount of water saved by the applying municipality Application form is available at: https://metrocouncil.org/Wastewater-Water/Funding-Finance/Available- Funding-Grants.aspx Submit competed application to: brian.davis@metc.state.mn.us Metropolitan Council will notify municipalities of grant awards and provide grant agreements by April 29, 2022. Proposal Selection Criteria In the event that funds requested exceed funds available, the following criteria will be used to determine the amount granted to a given municipality: Municipalities with identified water supply issues in Master Water Supply Plan Community Profiles or Local Water Supply Plans Municipalities’ ratio of peak monthly water use to winter monthly water use Municipalities’ average residential per capita water use The order in which applications are received and until grant funds are completely committed Funding Process and Reporting Requirements Utilizing forms provided by MCES, the following information must be reported on a quarterly basis: o Number, type and amount of rebates or grants provided to property owners, along with each property address o Estimated annual gallons of water saved per device installation o Municipality matching funds disbursed o Number of unmet funding requests from property owners, if any Upon review and confirmation of the above information, MCES will process a grant payment in the amount of 80% of approved total rebates or grants for the reporting period. MCES will provide confirmation of grant balances available upon request and reserves the right to amend grant agreements, in collaboration with grantee municipality, if quarterly reporting indicates rebate or grant programs will not fully utilize grant awards within the grant period. Qualified Activities Residential dishwasher replacement with a US DOE Energy Star labeled residential dishwasher: https://www.energystar.gov/products/dishwashers Toilet replacement with a US EPA WaterSense labeled toilet: https://lookforwatersense.epa.gov/products/Product-Search-Results-Toilets.html Irrigation controller replacement with a US EPA WaterSense labeled controller, either weather-based or soil moisture-based: https://lookforwatersense.epa.gov/products/Product-Search-Results-IrrigationController.html https://lookforwatersense.epa.gov/products/Product-Search-Results- SoilMoistureBasedIrrigationController.html 4 Clothes washing machine replacement with a US DOE Energy Star labeled clothes washing machine: https://www.energystar.gov/productfinder/product/certified-clothes-washers/results Irrigation spray sprinkler body replacement with a US EPA WaterSense labeled spray sprinkler body: https://lookforwatersense.epa.gov/products/Product-Search-Results-Sprinkler.html Irrigation system audit by an Irrigation Professionals certified by a US EPA WaterSense program: https://lookforwatersense.epa.gov/pros/ Reporting Example PropertyStreetAddressandZip Code (Select) Property Type: Select) Water DeviceReplaced: Cost per Device ($): of Devices: Rebateor Grant per Device ($) Est. AnnualWater Gallons) Saved PerDevice: Total Rebate or Grant Municipality Contribution: Eligible Grant Amount Estimated Annual Water Saved (Gallons): 2094 Proviso Avenue Residential Clothes Washer $800.00 1 $200.00 5,000 $200.00 $40.00 $160.00 5,000 3452 EnolaDrive Residential Irrigation Controller $250.00 1 $150.00 20,000 $150.00 $30.00 $120.00 20,000 994 Argentine Place Residential Irrigation Controller $200.00 1 $150.00 20,000 $150.00 $30.00 $120.00 20,000 5377 Shoreham Way Residential Toilet $350.00 1 $125.00 7,000 $125.00 $25.00 $100.00 7,000 Calculated Totals: 5 EXHIBIT C Revision # METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES 2022-2024 CLEAN WATER FUND WATER EFFICIENCY GRANT PROGRAM GRANT AMENDMENT FORM NOTICE TO GRANTEE: Submission of this form is required to modify your city’s agreement with Metropolitan Council Environmental Services (MCES) 2022-2024 Clean Water Fund Water Efficiency Grant Program (Grant Program). After determination of your city’s initial grant amount, completion and submission of this form is necessary when 1) you are requesting additional grant funds to meet unexpected rebate or grant demand, or 2) when your city has determined that the previously approved program’s rebate or grant demand will not be met, requiring less grant funds than anticipated when the agreement was signed. The process for modifying your agreement is as follows: 1. Your City’s authorized representative submits one signed copy of Exhibit C to MCES, with an attachment itemizing requests for changes to prior granted amounts. 2. Upon receipt of signed Exhibit C, MCES Program Administrator obtains Council authorized signatures that modifies the agreement and returns a fully signed copy of Exhibit A indicating new grant amount to City’s designated authorized representative. Instructions: Indicate the date of your change request in #1 box. Indicate the number of this particular change request in #2 box (and in box at top of page – must match). Enter the current grant agreement amount (as MCES approved) in #3 box. If you wish to increase your municipality’s grant amount, enter the amount you are requesting in #4 box. If you wish to decrease your grant amount due to less demand than anticipated, enter the amount in #5 box. Enter in #6 box the amount derived from adding #3 to #4 or derived from subtracting #5 from #3. Grant Agreement # 1. Date of change request: 2. Change request number: 3. Current Grant Agreement Amount (as MCES approved): 6 4. Increase due to request for additional funding: 5. Decrease due to less demand: 6. Amended Grant Agreement Amount requested: CITY NAME:______________________________________________________________________________ CITY AUTHORIZED REPRESENTATIVE (signature and date): MCES PROGRAM ADMINISTRATOR APPROVAL (signature and date): COUNCIL AUTHORIZED SIGNATURE AND DATE Questions may be directed to the MCES Authorized Representative: Brian Davis MCES Principal Engineer 390 Robert Street North St. Paul, MN 55101-1805 Phone: (651) 602-1519 Email: brian.davis@metc.state.mn.us ITEM: 5FCITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Jake Theisen, Maintenance Superintendent Christine Watson, PublicWorks Coordinator PRESENTED BY: Andy Brotzler, Public WorksDirector/CityEngineer AGENDA ITEM: Approve Purchase ofGenerator - FireStation 1 GOAL AREA High-ValueCityServices OBJECTIVE: 3. Ensure sufficient resources andstaffing tomeetservice demands. RECOMMENDED ACTION: Approve thepurchase ofanewgenerator atFireStation 1. BACKGROUND: FireStation 1isbeingremodeled thisyear toaccommodate afull-timefiredepartment. The remodel scopeofworkincludes theplanned replacement ofthegenerator forthebuilding. The 2022Equipment CIPincludes $65,000forthepurchase ofanew generator andtwotransfer switches. Thecurrent generator is21years oldandisgenerally considered beyond itsrecommended useful life. Itislocatedinside thebuilding andprovides powertoonlyaportion ofthebuilding. Thenew generator willbelocated inaseparate enclosure outside thebuilding andwillprovideemergency powertotheentire building. Itwillinclude updated controls andtechnology tobetter servethe FireStationwithemergency power. Staffhasreceived aquote from Ziegler Catintheamount of $45,300forthenewgenerator and twotransfer switches. Zeigler Cat isaSourcewell Cooperative Purchasing vendor. The Sourcewell contract isapurchasing contract thatfulfillsbiddingrequirements forgovernmental agencies andassures bestpricing available. FINANCIAL IMPACT: The2022 Equipment CIPincludes $65,000 forthepurchase ofthegenerator andtwotransfer switches. Theinstallation andsetup costs willbeincluded withtheremodel project funding. ALTERNATIVES: 1. Motion andsecond toapprove thepurchase ofanewgenerator atFireStation1aspart oftheconsentagenda. 2. Motion andsecond toremovethisitemfromtheconsentagenda foradditional discussion. ATTACHMENTS: 1. 20220505 Generator Quote fromZiegler - Attach1 CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 Proposal by 8050 State Highway 101 Shakopee, MN 55379 952-233-4720 To: City of Prior Lake Fire Station #1 Attn: Mr. Jake Theisen Re: Caterpillar Standby Generator Sourcewell Contract #120617-CAT” WE PROPOSE TO FURNISH IN ACCORDANCE WITH THE FOLLOWING SPECIFICATIONS, TERMS AND CONDITIONS QUANTITY: One (1) new CATERPILLAR emergency standby generator set mounted in outdoor Sound Attenuated steel enclosure rated 74dBA @ 23 feet. MODEL: D60GC – Diesel RATING: 60kW – Stand By VOLTAGE: 120/208 volts, 3 phase, 60 HZ, 1800 RPM BREAKER: Dual breaker- 225A & 100A, 100% rated SWITCHGEAR: Two (2) open transition, automatic transfer switches, 400 A & 100 A FUEL TANK: Integral fuel tank (24 hour storage) WARRANTY: Five (5) years, 2500 hours INSTALLATION: By Others TOTAL EQUIPMENT PRICE: $ 43,500.00* 120 month Platinum warranty: + $ 3,125.00* Motorized dampers: + $ 3,500.00* Price does not include state or local sales and/or use taxes Please refer to the attached Bill of Material. ESTIMATED DELIVERY: 31-34 week lead time after approval F.O.B. Jobsite on truck TERMS: Net 20 days - 90% at delivery, 10% at start-up THIS PROPOSAL SUBJECT TO ALL PROVISIONS OF THE CONTRACT AND WARRANTY ON REVERSE SIDE ACCEPTED: Respectfully submitted, ZIEGLER INC. By: Tyler Hanson, Sales Engineer By: Subject to approval by APPROVED: ZIEGLER INC. Date: By: Proposal No. EPG31064032Date: May 5, 2022 BILL OF MATERIAL EPG31064032 1 - ONE (1) EMERGENCY STANDBY GENERATOR SET, RATED AT 60KW STANDBY, 3 PHASE, 60 HERTZ, 120/208 VOLT, 1800 RPM. ENGINE SPECIFICATIONS Meets EPA Regulations – Tier III C4.4 In-line 6, 4-cycle diesel Electronic governor Oil filter, spin-on type Oil and coolant drains Radiator cooling system, blower fan Water pump 12V. DC starting system Jacket water heater, 120 volt, 1000 watt Alternator, 30 ampere, 12 VDC Fuel system: Diesel NFPA110 Compliant / UL2200 Listed STANDARD ENGINE SAFETY FEATURES Shutdowns with individual warning lamps Fail to start / over-crank High coolant temperature Low lube oil pressure Over-speed Over-voltage Fuel level alarms GENERATOR SPECIFICATIONS Class H insulation, rotor and stator, single bearing design Flexible coupling Brushless excitation Generator anti-condensation heater Permanent magnetic generator (PMG) Solid-state regulator, +/- l. % regulation Two (2) LSI 100% rated breakers 225 amp, 3 pole, LSI 100% rated 100 amp, 3 pole, LSI 100% rated GCCP 1.2 CONTROL PANEL Voltage (all phases) • Current (all phases) Power factor • kW KVAR Transfer switch status Engine speed Low fuel pressure Run hours Service reminders Fault history Oil pressure Coolant temperature Low oil pressure shutdown High coolant temperature shutdown BILL OF MATERIAL EPG31064032 2 - GCCP 1.2 CONTROL PANEL CONTINUED… Overvoltage / Over-speed Not in auto position (flashing light) Time & Date Exercise speed Protection Fail to start shutdown Low oil pressure shutdown Low/High battery voltage Battery charger failure Under-speed/Over-speed Loss of engine speed detection Emergency stop Programmable auto crank function 2 wire start for any transfer switch Adjustable engine speed at exerciser RS485 port remote communication Governor controller and voltage regulator are built into the master control board ANCILLARY EQUIPMENT Outdoor insulated/sound attenuated steel enclosure Color, CAT White Interior LED convenience lights GFCI outlets Critical grade silencer Dual wall UL listed integral fuel tank, 24-hour capacity (138 gallons), lockable fuel fill cap Battery charger, 10-amp float type, generator mounted Battery, with battery rack and cables Remote E-Stop Pushbutton Station – Shipped Loose Remote Annunciator Panel – Shipped Loose AUTOMATIC TRANSFER SWITCH/SWITCHGEAR Two (2) open transition, automatic transfer switches 400 amp, 4 pole, Nema 1 indoor enclosure, phase monitor, exerciser bundle 104 amp, 4 pole, Nema 1 indoor enclosure, phase monitor, exerciser bundle PROJECT MANAGEMENT SERVICES Submittal drawings Dimensional drawings Electrical schematics Product specifications Technical assistance - coordinated through Ziegler project manager Jobsite startup by Certified CAT technician Operation and maintenance manual (Engine, Generator) Warranty – Five (5) years – 2500 hours Delivery to jobsite by Ziegler CAT Training session for owners personnel Load bank testing onsite at time of start-up services BILL OF MATERIAL EPG31064032 3 - COMMENTS AND CLARIFICATIONS Mechanical and electrical installation not included Crane and rigging for offloading not included Initial fuel fill not included NOTES No installation included, electrical, gas, concrete, rigging by others Ziegler limits the scope of supply for this quotation to the equipment and services listed. Orders are subject to re-stocking charges if cancelled after release for production. State and local permits for fire, air, fuel tanks or building permits are not included and provided by others. Start-up labor is to be performed during normal business hours, Monday through Friday 7:30 am to 4:00 pm. Additional trips or delays required or requested due to contractor delay and/or issues with equipment not provided from Ziegler Power Systems will be billed at published field service rates. Terms: Extension of contract beyond term must be at the mutual agreement of the parties. Ziegler Inc. shall not be liable for consequential damages or damages beyond our control. This quotation is subject to availability at time of order Customer is responsible for adequate site conditions and security. Customer is responsible for scheduled maintenance and fuel costs. Customer must provide adequate insurance to cover equipment damage or loss. Price(s) do not include state or local sales and/or use taxes. Quotation is valid for 30 days. PROVISIONS OF THE CONTRACT AND WARRANTY The prices quoted are current and are subject to change to those in effect at the time of shipment. Caterpillar products are sold subject to the terms of the applicable Caterpillar warranty. Copies of the warranties applicable to this purchase are attached hereto, and the purchaser by signing this order acknowledges receipt of the Caterpillar warranties on Forms. The Purchaser agrees to pay any and all taxes, assessments, licenses, and government charges of every kind and nature whatsoever upon said equipment which may be imposed or assessed against or resulting to the Seller on account of the possession or use of said equipment by Purchaser. All provisions hereof are contingent upon government restrictions, strikes, accidents, delays of carrier and other delays unavoidable and beyond Seller’s control. It is intended and understood that title and ownership of said equipment is and shall remain vested in the Seller, notwithstanding delivery or possession, until the entire price is paid in full. ITEM: 5GCITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Heidi Simon, CityClerk PRESENTED BY: HeidiSimon AGENDA ITEM: Resolution Approving aTemporary LiquorLicense forLakefront Music FestonJuly8 & 9th, 2022 GOAL AREA Public Safety OBJECTIVE: 4. Ensure asafeandqualitybuiltenvironment. RECOMMENDED ACTION: Approve aTemporary LiquorLicenseforthePriorLakeRotaryforthe2022Lakefront Music Fest onJuly8thand9th. BACKGROUND: Non-profitorganizations arepermitted bystatestatute toapply fortemporary liquor licenses for events, usuallyfundraisers, inordertosellliquor without applying forafull-yearliquorlicense. ThePriorLakeRotary Club, a501c3non-profit, wasfounded in1978andhasalonghistoryof providing monetary andservice support tothecommunity. TheRotaryClubisabletosupport community service activities because ofitsfundraising activities. ThePriorLakeRotary'seleventh musicfestival isplannedtobeheldonFriday, July8, 2022, and Saturday, July9, 2022, atLakefront Park. The event, known asthePriorLakeRotary Lakefront Music Festival, willoffertwodaysofconcertstothepublic. TheRotary willraisemoneytofund theeventthrough sponsorships andintends toraiseadditional money tosupport itscommunity service effortsbyselling foodandbeverages, including beer, wine, pre-mixedcocktails and seltzers, tothe concert goersthroughout each day. Inordertodoso, atemporary on-sale intoxicating liquorlicense isrequired. ThePolice Department hasreviewed thetemporary liquor license application toensure thatall requirements andissues concerning liquorcompliance and publicsafety havebeen met. FINANCIAL IMPACT: ThePriorLakeRotary haspaid the $75.00temporary on-saleintoxicating liquor license fee. ALTERNATIVES: 1. Motionand second asapartoftheconsent agenda toapprove thetemporary liquor licenseforthePriorLake RotaryforFriday, July8thandSaturday, July9th, 2022 2. Motion andsecondtoremove thisitemfromconsent foradditional discussion. ATTACHMENTS: 1. Resolution – Approval ofTemporary Liquor License CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 4646DakotaStreet SE PriorLake, MN 55372 RESOLUTION 22- ARESOLUTION APPROVING ATEMPORARY ON-SALE INTOXICATING LIQUOR LICENSE FOR THEPRIOR LAKE ROTARY Motion By: Second By: WHEREAS, thePrior Lake Rotary isplanning Lakefront Music Fest atLakefront Park onFriday Julythth8, 2022, and Saturday July9, 2022; and WHEREAS, State statute allows non-profitorganizations toapply foratemporary on-sale intoxicating liquor license asmeans toraisefunds fortheirorganizations; and WHEREAS, thePrior Lake Rotary isplanning tosellbeer, wine, pre-mixed cocktails and seltzers as part ofthe Lakefront Music Fest; and WHEREAS, thePriorLake Police Department has completed background checks toensure all temporary liquor license requirements have beenmet. NOW THEREFORE, BEITHEREBY RESOLVED BYTHE CITY COUNCIL OFPRIOR LAKE, MINNESOTA asfollows: 1. The recitals setforthabove areincorporated herein. 2. Atemporary on-saleliquor license isgranted tothe Prior Lake Rotary forLakefront Music Fest at Lakefront Park. 3. Thislicense shall bevalidonJuly8and July 9,2022. 4. Allliquor servers shall receive training prior tothe event. 5. ThePrior Lake Rotary shall provide proof ofliquor liability insurance asprescribed byM.S. Section 340A.409 tocoverthisevent. thPASSEDANDADOPTEDBYTHEPRIORLAKECITYCOUNCILTHIS6 DAY OF JUNE 2022. VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent JasonWedel, CityManager ITEM: 5HCITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Heidi Simon, CityClerk PRESENTED BY: HeidiSimon AGENDA ITEM: Resolution Approving aTemporary LiquorLicense forBoathouse Brothers BrewingCompany onSaturday October 8, 2022 GOAL AREA Public Safety OBJECTIVE: 4. Ensure asafeandqualitybuiltenvironment. RECOMMENDED ACTION: AdoptaResolution Approving aTemporary LiquorLicense forBoathouse Brothers Brewing Co, Saturday, October 8, 2022. BACKGROUND: Boathouse BrothersBrewing ishostingaHeartoberfest Event, onSaturday, October 8, 2022. Statestatute allows abrewer whomanufactures fewerthan3,500barrelsofmaltliquorinayear oramicro-distillery atemporary licensefortheon-saleofintoxicating liquorinconnection witha social eventwithin themunicipality sponsored bythebrewer ormicro-distillery. Temporary licenses maybeissuedforuptofourconsecutive days. TheCitymaynotissuemorethanthree 3) four-day temporary licenses, four (4) three-day licenses, six (6) two-daylicenses, ortwelve 12) one-daylicenses, inanycombination not toexceedtwelvedays peryear toanyone organization orforanyonelocation. ThePolice Department hasreviewed thetemporary liquor license application toensure thatall requirements andissues concerning liquorcompliance and publicsafety havebeen met. Theclosure ofMain Avenue requires aCommunity Event Permit. Thispermithasbeen updated for2022torequire applicants tosendnotification toallbusinesses impacted byanystreet closures twoweeksinadvance oftheevent. Boathouse Brothers Brewing hassubmitted therequired permitandwillbesending therequired notices accordingly. TheCity Council reviewed thefrequency ofMainAvenueclosures attheirWorkSessiononMaynd2. Thedirection tostaff atthatmeeting was topermitBoathouse Brothers Brewing uptothree closures peryear. Theclosures wouldoccur inApril, October, andoneSaturday inbetween. The CityCouncil hasalready approved closures fortheireventinApril andfortheireventonJuneth11. Thisapproval represents their thirdandfinalclosurefor2022inOctober. FINANCIAL IMPACT: Boathouse Brothers Brewing haspaidthe $75.00temporary on-saleintoxicating liquor license fee. ALTERNATIVES: CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 Item5H Page | 2 1. Motion andsecond, aspartoftheconsent agenda, toadoptaresolution approving a Temporary Liquor LicenseforBoathouse Brothers Brewing onOctober 8, 2022. 2. Motion andsecond toremove fromconsentforfurther discussion. ATTACHMENTS: 1. 22- Boathouse Brothers BagsHearttoberfest October 8, 2022 4646DakotaStreet SE PriorLake, MN 55372 RESOLUTION 22- ARESOLUTION APPROVING ATEMPORARY ON-SALE INTOXICATING LIQUOR LICENSE FOR BOATHOUSE BROTHERS BREWING, CO Motion By: Second By: WHEREAS, Boathouse Brothers Brewing, Co., will hold aHeartoberfest onMain Street on Saturday, October 8, 2022; and WHEREAS, State statute allows brewers whomanufacture less than3,500barrels ofmaltliquor ina year toapply fortemporary on-saleintoxicating liquor license inconnection with asocial event withinthe municipality sponsored bythebrewer; and WHEREAS, Boathouse Brother Brewing, Co. isplanning tosponsor and sellbeer aspartofthis social event. NOW THEREFORE, BEITHEREBY RESOLVED BYTHE CITY COUNCIL OFPRIOR LAKE, MINNESOTA asfollows: 1. The recitals setforthabove areincorporated herein. 2. Thislicense shall bevalidonOctober 8, 2022. 3. Service and consumption ofalcohol islimited toafenced inarea. 4. Allliquor servers shall receive training prior tothe event. 5. Boathouse Brother Brewing, Co. shallprovide proof ofliquorliability insurance asprescribed byM.S. Section 340A.409tocover thisevent. thPASSEDANDADOPTEDTHIS6 DAY OFJUNE 2022. VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Absent Abstain Jason Wedel, CityManager ITEM: 5ICITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: Steve Frazer, ChiefofPolice PRESENTED BY: Steve Frazer AGENDA ITEM: Prior Lake Police Department Kitchen Remodel GOAL AREA High-ValueCityServices OBJECTIVE: 3. Ensure sufficient resources andstaffing tomeetservice demands. RECOMMENDED ACTION: Accept thelowerofthetwoattached quotestobegin theupgrade andremodel ofthekitchenarea atthePriorLakePoliceDepartment. BACKGROUND: ThePriorLakePoliceDepartment was constructed in2006. Abreakroom wasincluded inthe original building, butnotakitchen. Withhealthy lifestyle andeating practices being abigpartof officerwellness, thenewstandard istohaveakitchen inpolice buildings toallowformorehealthy choices forourstaffthatwork24hours aday, 7daysaweek. In2020webegantheprocess ofreviewing aremodel oftheexistingbreakroom. Thisremodel enhances thebreakroom bytheinstallation ofafully functioning kitchen. Currently thebreakroom hasarefrigerator only. FINANCIAL IMPACT: Thisproject wasestimated in2019 tobeapproximately $17,000. The remodel wasincluded in theapproved 2021budgetfor thatamount. Duetoglobal supply chain issues andpandemic restriction theprojectwasnotcompleted in2021. Themoney fromthe2021 budgetwas carried forward bybudgetamendment into2022. Thetwoestimates in2022have come inoverbudget. Thelowerofthetwoestimates cameinat 28,782. Werecommend accepting thisestimate. The $17,000thatwascarriedforward from 2021will be rolledinto2022. Theremaining $11,782 willbetaken from2021-year endsavings inthepolice budget which were alsocarriedforward into2022. ALTERNATIVES: 1. Motion andsecondtoapprove acontract forthePriorLakePolice Department kitchen remodel aspartoftheconsent agenda. 2. Motion andsecond toremovethisitemfromtheconsentagenda foradditional discussion. ATTACHMENTS: 1. Resolution - PLPD Kitchen Remodel 2. Remodeling Contract - Prior LakePD 3. 20220520080201127_PDkitchen CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 4646DakotaStreet SE PriorLake, MN 55372 RESOLUTION 22- RESOLUTION APPROVING ACONTRACT FOR THE PRIOR LAKE POLICE DEPARTMENT KITCHEN IMPROVEMENTS Motion By: Second By: WHEREAS, thePriorLakePoliceDepartment isa24hours perday /7daysperweek PublicSafety Department; and WHEREAS, theCityofPriorLakecontinues tosupport publicsafetyasakeypillarofour community; and WHEREAS, thisproject willsupport ourpublicsafety employees through fostering healthy options fornutrition forall; and WHEREAS, funding forthisproject wasoriginally programmed in2021andthosehave beencarried forward into2022incombination withthePolice Department budgetsavings from2021thatwere alsocarriedforward into2022. Funding is therefore available tocoverthefullcostoftheimprovements. NOWTHEREFORE, BE ITHEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA asfollows: 1. Therecitals setforthabove areincorporated herein. 2. Citystaffisauthorized topurchase supplies andservicesforakitchen remodel atthePLPD intheamount of $28,782.00. Thebudget willbeamended toreflectthesupplies andcapital outlayforthisproject (reclassification between accounts/netzerobudget impact). 3. Funding forthisproject isinthe2022PLPDpolice budget. Passed andadopted bythePriorLakeCityCouncil this6thdayofJune2022. VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent JasonWedel, CityManager Page 1 of 5 Pebble Creek Custom Homes Initials ______ ______ BC691406 MAJOR HOME REMODELING CONSTRUCTION AGREEMENT Dated: May 3rd, 2022 1. Parties This Agreement is entered into by and between the following parties: Contractor: Pebble Creek Custom Homes LLC, a Minnesota limited liability company; and Customer: City of Prior Lake – Police Department Project Address: 4649 Dakota St SE, Prior Lake, MN 55372 2. Job Description & Project Cost The work to be performed under this agreement consists of the following: Remodel scope of work includes: Install new laminate cabinets – per drawings Install new appliances – per Warners’ Stellian proposal QTE-50530 Add gas line for range, add vent for microwave Add electrical for appliances The project cost of the remodel is $28,782.00 + change orders. 3. Payment Terms – The customer agrees to pay contractor 50% of project cost at contract signing & 50% of project cost plus change orders after completion. In exchange for the specified work, Customer agrees to pay Contractor as follows: Construction Deposit Amount – 50% of project cost: $14,391.00 at signing of contract. Final Payment: Balance of job cost, including change orders, is due upon completion. 4. Time of Performance The work specified in Clause 2 (Job Description) shall be completed in a timely matter. Time is of the essence. 5. License Status and Number Contractor shall comply with all state and local licensing and registration requirements for type of work involved. Contractor's state license or registration is for the following type of work and carries the following number: BC169406 6. Liability Waiver If contractor is injured in the course of performing the specific work, Customer shall be exempt from liability for those injuries to the fullest extent allowed by law. Page 2 of 5 Pebble Creek Custom Homes Initials ______ ______ BC691406 7. Permits and Approvals Contractor shall be responsible for determining which permits are necessary and for obtaining the permits. Contractor shall apply for all state and local permits necessary for performing the specific work. 8. Liens and Waivers of Lien To protect Customer against liens being filed by Contractor, subcontractors, and providers of materials, Contractor agrees to provide Customer with lien waivers, lien releases, or acknowledgment of full payment from each subcontractor and materials provider. 9. Insurance During construction, Contractor shall provide adequate insurance, and if applicable, worker's compensation insurance, with loss payable to Contractor until the date of completion. Customer shall maintain or adjust their property insurance in accordance to the remodeling project. 10. Materials All materials shall be new, in compliance with all applicable laws and codes, and shall be covered by a manufacturer's warranty if appropriate. Due to the site being a commercial space, appliances do not have a warranty – per Warners’ Stellian 11. Supervision of Work Customer agrees that the direction and supervision of the construction workers, including subcontractors, rests exclusively with the Contractor, and Customer agrees not to issue any instructions to, nor interfere with, any workers or subcontractors. 12. Subcontracting Customer shall not negotiate for additional work with the Contractor's subcontractors, nor engage other contractors or subcontractors, except with Contractor's consent and in such a manner as will not interfere with Contractor's completion of work under this Contract. If Customer, at the sole discretion of the Contractor, is allowed to perform or subcontract any of the work, Customer shall perform the work in such a manner and within the dates established by Contractor. Any work provided by or subcontracted for by the Customer shall not be covered by Contractor's warranties, and Customer shall provide all necessary worker's compensation and liability insurance for any such workers. If Customer obtains Contractor's consent to provide work or materials for construction but fails to complete the work in a timely fashion, Contractor shall have the right to complete the work and add the reasonable costs of its labor and materials to the Contract Price. Further, the Customer hereby agrees to indemnify, hold harmless and defend the Contractor from any and all liability and injury caused by the Customer or its contractors, and to pay the cost of all liability, injury or damage (whether to person or property) caused by Customer or contractors acting at Customer's request. 13. Change Order All Change Orders shall reflect the cost of changes +/- 30% markup. All costs of changes are generated by the Contractor shall be identified on a Change Order but said costs can be agreed to by the customers by the use of emails and/or text messages. Page 3 of 5 Pebble Creek Custom Homes Initials ______ ______ BC691406 If events beyond the control of the parties reasonable require adjustments to this contract, the parties shall make a good faith attempt to agree on all necessary particulars. Such agreements shall be put in writing, signed by the parties and added to this contract. Failure to reach agreement shall be deemed a dispute to be resolved as agreed in Clause 16. 14. What Constitutes Completion Project shall be considered complete after scope of work per Section 2 is complete. 15. Limited Warranties A. Contractor shall construct and/or perform the construction in a good, workmanlike manner in compliance with building codes and industry standards free from material defect and in accordance with the ordinances and regulations of Prior Lake. B. In addition to the Statutory Warranties and any special warranties, the following Contractual Warrantiesshallapply: (i) Contractor represents and warrants to Customer that Contractor is licensed to perform constructionworkinMinnesotaandContractorhasthefinancialandstaffingcapacitytocompletetheconstruction. Contractor warrants to Customer that all materials, fixtures and equipment will be newunlessotherwisespecified, of good quality, and free from material defects (as defined within Section15(B)(ii) herein), and that all construction will be of good quality. (ii) Customer understands that millwork material, cabinets, and hardwood floors tend to move, shrink, and/or expand due to moister changes in climates and seasons. This may cause separation in jointstooccurovertime. (iv) Contractor will assign to Customer all available manufacturers’ warranties applicable to materials, fixtures or equipment installed by Contractor or by Contractor or by any subcontractor as a part oftheWork. Contractor shall have no responsibility for any defective or non-conforming materials, fixtures or equipment covered by a manufacturers’ warranty. 16. Dispute Resolution If any dispute arises under the terms of this agreement, the parties agree to select a mutually agreeable neutral third party to help them mediate it. If the mediation is deemed unsuccessful, the parties agree that the dispute shall be decided by the applicable small claims court if the amount in dispute is within the court's jurisdiction, and otherwise by binding arbitration under the rules issued by the American Arbitration Association. The decision of the arbitrator shall be final. Any costs and fees (other than attorney fees) associated with mediation and arbitration shall be shared equally by the parties. Each party shall pay his or her own attorney fees. 17. Indemnification (Hold Harmless) Clause Contractor agrees to hold harmless and indemnify Customer for all damages, costs and attorney fees that arise out of harm caused to Contractor, subcontractors, and other third parties, known and unknown by Contractor's performance of the specified work, except as follows: _ Obtain adequate business liability insurance that will cover Job and any injuries to subcontractors or employees. Page 4 of 5 Pebble Creek Custom Homes Initials ______ ______ BC691406 18. Site Maintenance Contractor agrees to be bound by the following conditions when performing the specified work: Contractor shall perform the specified work between the following hours: 7am – 7pm, or site office hours. At the end of each day's work, Contractor's equipment shall be stored in the following location: In the work site area. 19. Radon; Electromagnetic Field; Other Environmental Conditions Contractor does not have expertise or special information about radon or formaldehyde, the measurement or reduction of radon or formaldehyde, electromagnetic fields, the detection of electromagnetic fields, acceptable levels or possible health hazards associated with radon, formaldehyde or electromagnetic fields, or any other environmental condition or hazard (collectively, “Environmental Conditions”). Contractor makes no warranty or representation of any kind, express or implied, regarding: (i) the presence or absence of radon or formaldehyde; (ii) the effectiveness of any architectural or engineering activities for reducing the presence of radon or formaldehyde; (iii) the presence or absence of electromagnetic fields; (iv) the proximity or level of any electromagnetic field on the Property; or (v) the presence or absence of any other Environmental Condition. There have been NO Radon tests done to the property. 20. Formaldehyde Disclosure Minnesota law requires that the following warning be provided in the sale of the buildings or building products containing Urea Formaldehyde: IMPORTANT HEALTH NOTICE: SOME OF THE BUILDING MATERIALS USED IN THIS HOME (OR THESE BUILDING MATERIALS) EMIT FORMALDEHYDE. EYE, NOSE AND THROAT IRRITATION, HEADACHE, NAUSEA AND A VARIETY OF ASTHMA-LIKE SYMPTOMS, INCLUDING SHORTNESS OF BREATH, HAVE BEEN REPORTED AS A RESULT OF FORMALDEHYDE EXPOSURE. ELDERLY PERSONS AND YOUNG CHILDREN, AS WELL AS ANYONE WITH A HISTORY OF ASTHMA, ALLERGIES, OR LUNG PROBLEMS, MAY BE AT GREATER RISK. RESEARCH IS CONTINUING ON THE POSSIBLE LONG-TERM EFFECTS OF EXPOSURE TO FORMALDEHYDE. REDUCED VENTILATION MAY ALLOW FORMALDEHYDE AND OTHER CONTAMINANTS TO ACCUMULATE IN THE INDOOR AIR. IDGH INDOOR TEMPERATURES AND HUMIDITY RAISE FORMALDEHYDE LEVELS. WHEN A HOME IS TO BE LOCATED IN AREAS SUBJECT TO EXTREME SUMMER TEMPERATURES, AN AIR CONDITIONING SYSTEM CAN BE USED TO CONTROL INDOOR TEMPERATURE LEVELS. OTHER MEANS OF CONTROLLED MECHANICAL VENTILATION CAN BE USED TO REDUCE LEVELS OF FORMALDEHYDE AND OTHER INDOOR AIR CONTAMINANTS. IF YOU HAVE ANY QUESTIONS REGARDING THE HEALTH EFFECTS OF FORMALDEHYDE, CONSULT YOUR DOCTOR OR LOCAL HEALTH DEPARTMENT. 21. Mold Disclosure Mold spores occurs naturally and is nearly everywhere. The presence of high levels of moisture is necessary to grow otherwise dormant mold spores Contractor perform work intended to minimize mold growth during construction. After construction, it is the responsibility of the Customer to maintain the property in a manner that controls the growth of mold. Customerh agrees that Contractor will not be responsible for the existence of mold in the property or for damage caused by mold, including adverse health effects, injury to persons, or damage to property, loss of use or loss of value, except to the extent directly caused by Contractor’s failure to conform to applicable building standards, and then only to the extent that Contractor does not correct any non-conformance with applicable building standards within thirty (30) Page 5 of 5 Pebble Creek Custom Homes Initials ______ ______ BC691406 days of written notice from the Customer, or such longer period as may be reasonable under all of the facts and circumstances. Under no circumstances will Contractor be liable if the adverse effects of mold could have been controlled by Customer’s exercise of good mold management practices, or for incidental or consequential damages. Customer acknowledges that Contractor has not made, and hereby waives, any and all implied warranties relating to mold, including without limitation, the implied warranty of habitability and the implied warranty of fitness for a particular purpose. Customer waives all claims against Contractor arising because of the existence of mold. 23. Additional Agreements and Amendment: All agreements between Customer and Contractor related to the specified work are incorporated in this contract. Any modification to the contract shall be in writing. Customer: Jake Thiesen Signature: ________________________________________________ Date: 5-3-22 Customer Address: 4649 Dakota Street SE, Prior Lake, MN 55372 Contractor: PEBBLE CREEK CUSTOM HOMES, LLC Signature: ________________________________________________ Date: 5-3-22 By: Jerik Brumm Title: Managing Partner Address: 8774 Egan Drive, Savage, MN 55378 PEBBLE CREEK CUSTOM HOMES LLC ITEM: 7ACITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: JeffMatzke, Planner PRESENTED BY: JeffMatzke AGENDA ITEM: Consider Vacating aPortion ofaDrainage andUtilityEasement at1563 Belmont AvenueNW GOAL AREA Desirable & Sustainable Development OBJECTIVE: 4. Encourage development andpreservation ofqualitylife-cycle residential housingoptions. RECOMMENDED ACTION: Motion andsecond toapprove aresolution for vacation ofaportionofadrainage andutility easement at1563BelmontAvenue NW BACKGROUND: Thepurpose ofthis agenda itemistoholdapublic hearing toconsider arequest byNickolas Moonen, theproperty owner, tovacateaportion ofadrainage andutilityeasement locatedwithin therearyardof1563Belmont Avenue. Asrequired byStateStatute462.358Subd.7, theCityCouncilisrequired toreviewthedisposal oracquisition ofpublic landsasitrelatestocompliance withtheComprehensive Plan. Upon proper notification, State Statute 462.358allowstheCouncil tovacate easements byresolution. Thestatutealsostates, “nosuchvacation shallbemade unlessitappears tobeinthepublic interest todoso.” TheComprehensive Plandoesnotspecifically discussutilityeasements, other thanasafunction ofensuring access topublicutilities. Thevacation oftheseeasements isnotinconsistent with anyspecificgoalorobjective oftheComprehensive Plan. Nopublic needwill bepresent as dedicated easements willremainforthenecessary lot. FINANCIAL IMPACT: NoImpact. ALTERNATIVES: 1. Motion andasecond toapprove aresolution approving thevacation ofdrainage andutility easements at1563 Belmont Avenue NW 2. Motion andasecond todeny thevacation ofdrainage andutilityeasements at1563 Belmont Avenue NW 3. Motion andasecond totable actionanddirectstafftoprovide additional information specifically requested bytheCity Council. ATTACHMENTS: 1. Location Map 2. Easement Vacation Sketch CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 4646DakotaStreet SE PriorLake, MN 55372 RESOLUTION 22-___ RESOLUTION PROVIDING FOR THE VACATION OF APORTION OF ADRAINAGE & UTILITY EASEMENT AT1563 BELMONT AVENUE NW Motion By: Second By: WHEREAS, Nickolas Moonen (the “Applicant”), theproperty owner, hassubmitted apetition for thevacation ofaportionofadrainage andutilityeasement within therearyard of 1563Belmont Avenue NW. Thepetitionhasbeen duly presented totheCityofPrior Lakebytheowners oftheproperty situated intheCityofPriorLake, Scott County, Minnesota towit: Legal Description (Vacated Drainage & Utility Easement Area): Commencing atthesouthwest corner ofsaidLot3, Block3, BELMONT ESTATES; thence North04degrees 39minutes 30seconds West, assumed bearing along the WestlineofSaidLot3, adistance of66. 35feettotheWesterly extension ofthe Northlineoftheoriginally dedicated drainage andutilityeasement; thence North89 degrees 29minutes 02seconds East, adistance of5.01feettoalinethatis5.00 feetEasterly ofandparallel tosaidWestlineandthepoint ofbeginning; thence South 04degrees 39minutes 30seconds East, parallel withsaidWest line, a distanceof56.38feettoalinethatis10.00 feetNortherlyofandparallel totheSouth lineofsaid Lot3; thence South 89degrees 40minutes 58seconds East, parallel to saidSouthline, adistance of96.28feettoalinethatis5.00feetWestofandparallel totheEastlineofsaidLot3; thence North02degrees 34minutes40seconds West, parallel tosaidEastline, adistanceof57.67feet totheNorthlineoftheoriginally dedicated drainage andutilityeasement ; thence South89degrees 29minutes 02 seconds West, along saidNorth line, adistance of98.27feettothepoint of beginning. WHEREAS, Noticeofthehearing hasbeendulypublished and posted inaccordance with the applicable Minnesota Statutes; and WHEREAS, APublicHearing washeldonsaidpetition onMonday, June6, 2022, inthe Council Chambers atCityHall, 4646Dakota StreetSE; and WHEREAS, TheCityCouncil thenproceeded tohear allpersons interested insaidpetition and persons interested wereafforded theopportunity topresent theirviews and objections tothegranting ofsaidpetition; and WHEREAS, Applicable deeded easements fordrainage andutilitypurposes areinplace, sothe existing drainage andutilityeasements arenolongernecessary forthemaintenance ofpublic utilitiesoranyotherpublic purpose. NOW THEREFORE, BEITHEREBY RESOLVED BYTHE CITY COUNCIL OF PRIOR LAKE, MINNESOTA asfollows: 1. Therecitals setforthaboveareincorporated herein. 2. TheCityCouncil ofPriorLakehasdetermined thatthevacation ofsaid publiceasement would beinthepublic interest. 3. Drainage improvements shallbeinstalled and completed priortoissuance ofpool permit. 4. Grading permit isrequired forthiswork. 5. Providerecorddrawings ofdrainage improvement installation oncecomplete. 6. Maintenance agreements shallberecorded atScottCounty priortocommencing drainage improvements. 7. Pursuant toMinnesota Statues 462.358, thefollowing described publiceasement is hereby vacated: Legal Description (Vacated Drainage & Utility Easement Area): Commencing atthesouthwest corner ofsaidLot3, Block3, BELMONT ESTATES; thenceNorth 04degrees 39minutes 30seconds West, assumed bearing alongtheWestlineofSaidLot3, a distance of66. 35feettothe Westerly extension oftheNorthlineoftheoriginally dedicated drainage andutility easement; thence North89degrees 29minutes 02seconds East, adistance of5.01feettoalinethatis5.00feetEasterly ofandparallel tosaidWestlineandthepointof beginning; thence South 04degrees 39minutes 30seconds East, parallel withsaidWest line, a distance of56.38feettoalinethatis10.00feetNortherly ofandparallel totheSouth lineofsaid Lot3; thence South 89degrees 40minutes 58seconds East, parallel tosaidSouthline, adistance of96.28feet toalinethatis5.00feet WestofandparalleltotheEastlineofsaid Lot3; thence North02degrees34minutes40seconds West, parallel tosaidEastline, adistance of57.67feet totheNorth lineoftheoriginally dedicated drainage andutility easement ; thence South 89 degrees 29minutes 02seconds West, alongsaid Northline, adistance of98.27feettothepoint ofbeginning. thPassedandadoptedbythePriorLakeCityCouncilthis6 dayofJune2022. VOTE Briggs Thompson Braid Burkart Churchill Aye Nay Abstain Absent JasonWedel, CityManager 2 Belmont Ave NW 12 77 42 44 27 21 87 16 23 15 18 82 78 17 79 70 83 14 1563 BELMONT AVE NW Use Location Map X:\Planning\Location Map\Location Map Template\Location Map Template.aprx 0 300 Feet City of Prior Lake Planning Department Subject Property ITEM: 7BCITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: JeffMatzke, Planner PRESENTED BY: JeffMatzke AGENDA ITEM: Consider Vacating aPortionofaDrainage andUtilityEasement at 17776Meadows WaySE GOAL AREA Desirable & Sustainable Development OBJECTIVE: 4. Encourage development andpreservation ofquality life-cycle residential housing options. RECOMMENDED ACTION: Motionand second toapprove aresolution foravacation ofaportion ofadrainage andutility easement at17776 Meadows Way SE. BACKGROUND: Thepurpose ofthisagenda item istohold apublichearing toconsider arequest byBrendan Woolsey, theproperty owner, tovacate aportion ofadrainage andutilityeasement located within therearyardof17776Meadows Way SE. Asrequired byStateStatute462.358Subd.7, theCityCouncilisrequired toreviewthedisposal oracquisition ofpublic landsasitrelatestocompliance withtheComprehensive Plan. Upon proper notification, State Statute 462.358allowstheCouncil tovacate easements byresolution. Thestatutealsostates, “nosuchvacation shallbemade unlessitappears tobeinthepublic interest todoso.” TheComprehensive Plandoesnotspecifically discussutilityeasements, other thanasafunction ofensuring access topublicutilities. Thevacation ofthese easements isnotinconsistent with anyspecificgoalorobjective oftheComprehensive Plan. Nopublic needwill bepresent as dedicated easements willremain forthenecessary lot. FINANCIAL IMPACT: NoImpact. ALTERNATIVES: 1. Motion andasecond toapprove aresolution approving thevacation ofdrainage andutility easements at17776 Meadows WaySE 2. Motion andasecond todenythevacation ofdrainage andutilityeasements at17776 Meadows WaySE 3. Motion andasecond totable actionanddirectstafftoprovide additional information specifically requested bytheCity Council ATTACHMENTS: 1. Location Map 2. 17776 Meadows WaySEProperty Survey CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 4646DakotaStreet SE PriorLake, MN 55372 RESOLUTION 22-___ RESOLUTION PROVIDING FOR THE VACATION OF APORTION OF ADRAINAGE & UTILITY EASEMENT AT 17776 MEADOWS WAY NW Motion By: Second By: WHEREAS, Brendan Woolsey (the “Applicant”), theproperty owner, hassubmitted apetitionfor thevacation ofaportionofadrainage andutilityeasement within therearyard of 17776 Meadows Way SE. Thepetition hasbeen dulypresented totheCityofPrior Lakebytheowners oftheproperty situated intheCityofPriorLake, Scott County, Minnesota towit: Legal Description (Vacated Drainage & Utility Easement Area): Commencing atthesouthwest cornerofsaidLot3, Block 6, MEAOWS OFCLEARY LAKE; thenceNorth 04degrees 39minutes 30seconds West, assumed bearing alongtheWestlineofSaidLot3, adistance of66. 35feettotheWesterly extension oftheNorthlineoftheoriginally dedicated drainage and utilityeasement; thence North89degrees29minutes 02seconds East, adistance of5.01feettoalinethat is5.00feetEasterly ofandparallel tosaidWest lineandthepointofbeginning; thence South 04degrees 39minutes 30seconds East, parallel withsaidWestline, adistance of56.38feettoalinethatis10.00feetNortherly ofandparallel tothe Southline ofsaidLot3; thence South 89degrees 40minutes 58seconds East, parallel tosaidSouth line, adistance of96.28feettoalinethatis5.00feetWestof andparallel totheEastlineofsaidLot3; thence North 02degrees 34minutes40 seconds West, parallel tosaidEastline, adistance of57.67feettotheNorthlineof theoriginally dedicated drainage andutilityeasement ; thence South 89degrees29 minutes 02seconds West, along saidNorthline, adistance of98.27feettothepoint ofbeginning. WHEREAS, Noticeofthehearing hasbeendulypublished and posted inaccordance with the applicable Minnesota Statutes; and WHEREAS, APublicHearing washeldonsaidpetition onMonday, June6, 2022, intheCouncil Chambers atCityHall, 4646Dakota StreetSE; and WHEREAS, TheCityCouncil thenproceeded tohear allpersons interested insaidpetition and persons interested wereafforded theopportunity topresent their views and objections tothegrantingofsaidpetition; and WHEREAS, Applicable deeded easements fordrainage andutilitypurposes areinplace, sothe existing drainage andutilityeasements arenolongernecessary forthemaintenance ofpublic utilitiesoranyotherpublic purpose. NOW THEREFORE, BEITHEREBY RESOLVED BYTHE CITY COUNCIL OF PRIOR LAKE, MINNESOTA asfollows: 1. Therecitals setforthaboveareincorporated herein. 2. TheCityCouncil ofPriorLake hasdetermined thatthevacation ofsaidpubliceasement would beinthepublic interest. 3. Pursuant toMinnesota Statues 462.358, thefollowing described publiceasement is hereby vacated: Legal Description (Vacated Drainage & Utility Easement Area): Commencing atthe southwest corner ofsaidLot3, Block6, MEADOWS OFCLEARY LAKE; thence North 04degrees 39minutes 30seconds West, assumed bearingalongtheWestlineof Said Lot3, adistanceof66. 35feettotheWesterly extension oftheNorthlineoftheoriginally dedicated drainage andutilityeasement; thenceNorth89degrees 29minutes 02seconds East, adistance of5.01feettoaline thatis5.00feetEasterly ofandparallel tosaidWestlineandthe point ofbeginning; thence South 04degrees 39minutes 30seconds East, parallel withsaidWest line, adistance of56.38feettoalinethatis10.00feetNortherly ofand parallel totheSouth line ofsaidLot 3; thence South89degrees 40minutes 58seconds East, parallel tosaid South line, adistance of96.28feettoalinethatis5.00feetWestofandparalleltotheEastlineofsaid Lot 3; thence North 02degrees34minutes 40secondsWest, parallel tosaidEastline, adistance of 57.67feettotheNorthlineoftheoriginally dedicated drainage andutilityeasement ; thence South 89degrees 29minutes 02seconds West, alongsaidNorthline, adistance of98.27feettothe pointofbeginning. thPassedandadoptedbythePriorLakeCityCouncilthis6 dayofJune2022. VOTE Briggs Thompson Braid Burkart Churchill Aye Nay Abstain Absent JasonWedel, CityManager 2 Mi ssi onTrlSEMeadows Way SE MissionTrlSET r a ilh e a d L n S E 12 44 87 23 211770 71 68 27 15 79 10 17776 MEADOWS WAY SE Use Location Map X:\Planning\Location Map\Location Map Template\Location Map Template.aprx 0 300 Feet City of Prior Lake Planning Department Subject Property ITEM: 9ACITYCOUNCILAGENDAREPORT MEETING DATE: June06, 2022 PREPARED BY: JeffMatzke, Planner PRESENTED BY: JeffMatzke AGENDA ITEM: Consider aResolution Approving aFinalPlatand aResolution Approving aFinalPUDPlanforSpring LakeRidge GOAL AREA Desirable & Sustainable Development OBJECTIVE: 4. Encourage development andpreservation ofquality life-cycle residential housing options. RECOMMENDED ACTION: AdoptaResolution Approving aFinal PlatandaResolution Approving aFinalPUD PlanforSpring LakeRidge subject tothelistedconditions. BACKGROUND: DRHortonInc. hasapplied forapproval ofaFinal PlatandFinalPlannedUnitDevelopment (PUD) Plan known asSpringLakeRidgetobedeveloped asa99-lot, low-density residential subdivision. Thesubject siteislocated south of170thStreet, eastofMarschall Road (County Hwy 17). The original developer, Winkler Land Co., isinagreement tosellthelandtoDRHortonInc. for development ofthe99-lotsubdivision. DRHortonproposes todeveloptheproperty in2phases with theconstruction ofthefirstphase of52lotsupforconsideration ofapproval currently. OnMarch2, 2020theCityCouncil approved thePreliminary PlatandPreliminary Planned Unit Development Plan (PUD) forSpringLake Ridge. Despite somesmaller lotsinthisplan, the overallnethousing densityremains low. The PUDbenefits approved bytheCityCouncil include thefollowing: Dedication ofpublic openspace along theshoreline ofSpring Laketherebyeliminating thefutureexistence ofanyprivate docks alongSpringLakeexcept foronesingle family residential lot. Dedication ofpublicopen space within thecentral wetland areas whichareutilized for snowmobile trailsfromSpringLaketotheHwy 17corridor. Dedication of1acreofadditional right-of-wayalongHwy17. Installation ofpublictrailsandsidewalks (andregular maintenance bytheprivate property owners insome cases) along thecollector road (Springview Drive), theexisting Sunset Avenue, andtrailconnection through theCitywetland complex property toHwy12and extending totheHwy17corridor. Installation ofasnowmobile crossingimprovements Escrow offunds tocomplete afuturepublic streetsealcoating Asrequested bytheCity Councilattheir March 2, 2020meeting, CityStaffandtheDeveloper are exploring theviability ofconstructing asidewalk ontheeastside ofSunsetAvenue, northofthe newintersection with Springview Drive. Acondition ofapproval hasbeenadded tothePUD CityofPriorLake | 4646DakotaStreetSE | PriorLakeMN55372 Item9A Page | 2 resolution thatwouldrequire theDeveloper toinstall asidewalk ifapplicable easements canbe acquired fromapplicable SunsetAvenue property owners. Theprincipal requirements forfinalplat approval alsoinclude aDevelopment Agreement that specifies thedevelopment fees andother requirements fortheconstruction ofthepublic improvements suchasstreets andutilitiesaswellastheplatted lot(s). FINANCIAL IMPACT: Theapproval ofthedevelopment willallowfortheconstruction of52oftheplanned 99residential lotsaspartoftheCity'staxbase. ALTERNATIVES: 1. Motion andSecond, approving theFinalPlatResolution andFinalPUDResolution for SpringLakeRidge subject tothelistedconditions. 2. Motion andSecond totabletheitemtoafutureCityCouncil Meeting. ATTACHMENTS: 1. Location Map 2. Spring Lake Ridge development planandFinal Platexhibit 3. Spring LakeRidge Development Agreement 4646DakotaStreet SE PriorLake, MN 55372 RESOLUTION 22-___ ARESOLUTION ADOPTING THE SPRING LAKE RIDGE FINAL PLAT AND DEVELOPMENT AGREEMENT Motion By: Second By: WHEREAS, DRHortonInc. (the “Developer”), hassubmitted anapplicationtotheCityofPrior Lake forapproval ofaFinalPlatforSpring LakeRidge; and WHEREAS, TheCityCouncil hasfoundthatthefinalplatofSpring LakeRidgeisinsubstantial compliance withthe approvedpreliminary plat. NOW THEREFORE, BEITHEREBY RESOLVED BYTHE CITY COUNCIL OF PRIOR LAKE, MINNESOTA asfollows: 1. Therecitals setforth above areincorporated hereinasiffullysetforth. 2. ThefinalplatofSpringLakeRidge isapproved subject tothefollowing conditions, which shall bemetbytheDeveloper prior torelease andrecording ofthefinalplat: a. Acurrenttitleopinionorcommitment oftitle insurance issubmitted acceptable totheCity Attorney. b. Payment ofallfeespriortorelease ofthefinalplatmylars. c. Threemylar setsofthefinal platwithallrequired signatures aresubmitted. d. Thefinalplatandallpertinent documents mustbefiledwith ScottCounty within 90days fromthedateoffinal platapproval. Failure torecordthedocuments by September 4, 2022, willrender thefinal platnullandvoid. e. Thedeveloper shallrevise theplans according totheMay3, 2022 City Engineering & Public Works Department Memorandum. f. The developer shallrevise theplans according tothe May 2, 2022 CityCommunity Development Department Memorandum. 3. TheMayor andCityManager arehereby authorized toexecute theDevelopment Agreement onbehalf oftheCity. thPassedandadoptedbythePriorLakeCityCouncilthis6dayofJune2022. VOTE Briggs Thompson Burkart Braid Churchill Aye Nay Abstain Absent JasonWedel, CityManager 4646DakotaStreet SE PriorLake, MN 55372 RESOLUTION 22-___ ARESOLUTION APPROVING THE FINAL PLANNED UNIT DEVELOPMENT (PUD) PLAN FOR SPRING LAKE RIDGE Motion By: Second By: WHEREAS, DRHorton Inc. (the “Developer”), has applied foraFinal Planned Unit Development (PUD) PlanforSpringLakeRidge; and WHEREAS, ThePriorLake CityCouncilconsidered theproposed FinalPUD PlanonJune 6, 2022and findittobeinsubstantial compliance withtheapproved Preliminary PUDPlan; and WHEREAS, The CityCouncil finds thattheFinalPUD Plan iscompatible with thestated purposes andintentoftheSection1106Planned UnitDevelopments ofthe ZoningOrdinance. NOWTHEREFORE, BE ITHEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA asfollows: 1. Therecitalssetforthaboveareincorporated herein. 2. TheFinalPUDPlanisherebyapproved subjecttothefollowing conditions: a. The developer shallrevise theplansaccording tothe May3, 2022CityEngineering & Public WorksDept. Memorandum. b. Thedeveloper shall revise theplansaccording tothe May2, 2022 CityCommunity Development Dept. Memorandum. c. The Developer shall obtain any required permits from other stateorlocalagencies applicable onthesite. d. AspartofthePreliminary Platapproval byCityCouncilitwas determined that sidewalk wasalso requested tobeconstructed along theeastsideofSunsetAvenuefromthenew intersection ofSunset/Springview DrivetoCSAH 12. Ifatthetime thatstreet curbistobe placed onSunset Avenue (anticipated tobeapproximately August2022) and1) theCity hasreached agreement withtheresidents along Sunset Avenue and 2) thenecessary easements havebeenobtained, thenthePublic WorksDirector candirecttheDeveloper thatthesidewalkbedesigned andinstalled ontheeast sideofSunset Avenue. Ifanyof theresidents donotagreeor otherwise failtoprovidethenecessary easements forthe sidewalk, thePublicWorks Director may directthatthesidewalk notbeconstructed onthe eastside ofSunsetAvenue. thPassedandAdoptedthis6 dayofJune2022. VOTE Briggs Thompson Braid Burkart Churchill Aye Nay Abstain Absent JasonWedel, CityManager CIVILENGINEERS LAND PLANNERS LANDSURVEYORS LANDSCAPEARCHITECTS CIVILENGINEERS LAND PLANNERS LAND SURVEYORS LANDSCAPE ARCHITECTS Page 1 DEVELOPMENT AGREEMENT SPRING LAKE RIDGE PROJECT #19-000020 This Development Agreement (“Agreement”) is entered into this 6th day of June, 2022, by and between the City of Prior Lake, a Minnesota municipal corporation ("City"), and D.R. Horton Inc. – Minnesota, a Delaware Corporation (“Developer”). WHEREAS, Developer is the owner of property located within the City of Prior Lake, County of Scott, legally described on Exhibit A (“Property”); WHEREAS, Developer has applied to the City for Final Plat approval for the construction of fifty- two (52) residential units on the Property; NOW, THEREFORE, in consideration of the City Council adopting Resolution No. 22-___ Resolution”) for Final Plat approval for the construction of fifty-two (52) residential units and the related public improvements on the Property, Developer agrees to construct, develop and maintain the Property as follows: 1. RIGHT TO PROCEED. The City shall not issue a building permit and Developer shall not construct upon the Property in any manner, or begin the Development Work until all of the following Page 2 conditions have been satisfied: 1) the final Plat and this Agreement have been fully executed by all parties and recorded in the office of the Scott County Recorder or Registrar or Titles as applicable; 2) the necessary Security, deposits, fees and insurance have been received by the City, and 3) the City Engineer or his/her designee has issued a letter that all conditions have been satisfied and that the Developer may proceed. 2. PHASED DEVELOPMENT. This Agreement represents approval only of the units identified above and the related improvements set forth on the final Plat and Plans. It does not represent approval of any additional development including any proposed future phases. If the final Plat is a phase of a multi-phased preliminary Plat, the Developer shall submit, in accordance with City Code, a staging plan for City Council approval which may allow the Developer more than one (1) year to subdivide the Property into lots and blocks. If the final Plat is a phase of a multi-phased preliminary Plat, the City Council may refuse to approve final plats of subsequent phases or other Plats within the City if the Developer has breached this Agreement or any terms or conditions set out in the Resolution and the breach has not been remedied. In addition, no other subsequent phases may proceed until the City Council approves development agreements for such phases. Fees and charges collected by the City in connection with infrastructure, public improvements and parkland dedication requirements are not being imposed on outlots, if any, in the final Plat that are designated in an approved preliminary Plat for future subdivision into lots and blocks. Such charges will be calculated and imposed when the outlots are subdivided into lots and blocks. 3. DEVELOPMENT PLANS. A. The Property shall be developed in accordance with the final plans identified below, subject to such changes and modifications as provided herein (“Plans”). The Plans shall not be attached to this Agreement, but are incorporated by reference and made a part of this Agreement as if fully set forth herein. If the Plans vary from the written terms of this Agreement, the more specific or stringent controls shall apply. The Plans are: Page 3 Plan A -- Final Plat as stamped approved by the City Engineer or his/her designee Prepared by Pioneer Enginering Inc.) subject to the changes and modifications set forth in the Resolution. Plan B -- Final Grading, and Erosion Control Plan(s) including Storm Water Pollution Prevention Plan (“SWPPP”) as stamped approved by the City Engineer or his/her designee (Prepared by Pioneer Enginering Inc.) Plan C -- Plans and Specifications for Developer Installed Public Improvements as stamped approved by the City Engineer or his/her designee (Prepared by Pioneer Enginering Inc.) Plan D -- Landscape Plan as stamped approved by the City Community Development Director or his/her designee (Prepared by Pioneer Enginering Inc.) B. In addition, Developer shall grade, construct upon, and improve the Property pursuant to all requirements of this Agreement, the Resolution, the Prior Lake City Code, the City's Public Works Design Manual (“PWDM”), and the direction of City Manager or his/her designee. All improvements and other work required by the Plans, the Developer Installed Public Improvements, and such other work as is required by this Agreement, the Resolution or the documents or parties identified above are hereafter referred to as the "Development Work." Developer shall be responsible for all costs related to the Development Work. 4. DEVELOPER INSTALLED PUBLIC IMPROVEMENTS. A. The Developer shall install and pay for the public improvements identified in the Plans, hereinafter referred to as the “Developer Installed Public Improvements”, which may include but are not limited to: Sanitary Sewer System, Water System, Storm Sewer, Streets, Concrete Curb and Gutter, Street Lights, Site Grading and Ponding, Underground Utilities, Traffic Control Signs, Street Signs, Setting of Iron Monuments, Sidewalks, Trails, and Boardwalks, Landscaping and Wetland Buffer Signage. All Develoepr Installed Public Improvements shall be dedicated or conveyed to the public, and shall be located within public property, right-of-way, or easement dedicated to the public. B. Developer shall complete all Developer Installed Public Improvements and obtain the City Council’s written acceptance of the Developer Installed Public Improvements no later than December 31, Page 4 2022. The final wear course on streets shall be installed by October 31st of the same year the base layer of asphalt is installed. If the final wear course is not installed by the date required herein, no additional building permits shall be issued for the Property until the punch list is complete and the final wear course installed. All punch list items shall be completed before the final wear course is installed in order to allow for inspection. Any modifications to this section are to be proposed in writing and approved by the City Engineer C. Developer shall mark and label the GPS coordinates of the Developer Installed Public Improvements as the improvements are constructed. All of the following items must be marked and labeled and the data provided to the City in a form compatible with ArcGIS. Watermain – bends, tees, valves, crosses, sleeves, services corps, curb stops, future stubs. Sanitary sewer – manholes, service wyes, service stubs, cleanouts, future sanitary sewer stubs. Storm Sewer – manholes, catchbasins, outlet structures, flared end sections, cleanouts, tile, valves. Signs – all developer installed signs and type of sign. The City Council will not accept the Devleoper Installed Pubilc Improvements unless the GPS coordinates for all of the listed items are provided. If Developer fails to provide the required coordinates, Developer will be required to re-access the improvements, mark and label the GPS coordinates and then restore the improvements. D. As a condition of the City Council’s acceptance of the Developer Installed Public Improvements, the Developer’s engineer shall by written letter certify to the City that the Developer’s engineer made reasonable inspections of the Developer Installed Public Improvements and that the Developer Installed Public Improvements were built in accordance with this Agreement. E. Upon the City Council’s written acceptance, by City Council Resolution, of the Developer Installed Public Improvements, the Developer Installed Public Improvements shall automatically become property of the City without further notice or action. The Developer shall be responsible for all maintenance of the Developer Installed Public Improvements until written acceptance by the City Council. Page 5 F. Under no circumstances shall Developer charge or assess, directly or indirectly, any fee, charge, assessment or consideration, to any party, for connection or access to, or service by, any Developer Installed Public Improvement. 5. PROJECT TESTING. The Developer is responsible, at the Developer’s sole cost, to provide testing to certify that Developer Installed Public Improvements were completed in compliance with the Plans. The personnel performing the testing shall be certified by the Minnesota Department of Transportation. The City Engineer or his/her designee has the sole discretion to determine if additional testing is necessary. The cost of additional testing is to be paid by the Developer. 6. FINAL PLAT AND AS-BUILTS. A. Within 30 days after the completion of the Developer Installed Public Improvements, Developer shall supply the City a complete set of reproducible “as constructed” plans, and four complete sets of blue line “as constructed” plans, all prepared in accordance with City standards. In addition, Developer shall provide the City with an as-built grading plan and a certification by a registered land surveyor or engineer that all ponds, swales, and ditches have been constructed on public easements or land owned by the City. The Security shall not be released until the as-builts have been received by the City. The as-built plans shall include field verified elevations of the following: a) cross sections of ponds, b) location and elevations along all swales and ditches, and c) lot corners and house pads. The Developer shall also submit a land tabulation certified by a registered engineer showing that all pads have been corrected in accordance with project specifications. B. The Developer shall submit the final Plat in electronic format. The electronic format shall be compatible with the City's current software. In addition, upon completion of the project the Developer shall provide the City with as-built utility plans in electronic format compatible with the City’s current software and with layers, colors, and line-types formatted in accordance with City standards. Additionally, three (3) Page 6 full size (22 X 34 inch) paper copies and one (1) reduced (11 X 17 inch) copy shall be certified and submitted to the City. 7. MONUMENTS. Before the Security is released, Developer shall install iron monuments in accordance with Minn. Stat. §505.021. The Developer's surveyor shall submit a written notice to the City certifying that the monuments have been installed. 8. WARRANTY. Developer warrants all Developer Installed Public Improvements against any defects, poor material and faulty workmanship for a period of two years after its completion by Developer and acceptance by the City Council. Any replacement work shall be so warranted for two years after its completion by Developer and acceptance by the City Council. Both the Developer Installed Public Improvement warranty period described in this paragraph and the landscape warranty period described in paragraph 20 below are hereinafter referred to as the “Warranty Period”. 9. LICENSE. The Developer hereby grants the City, its agents, employees, officers and contractors a non-revocable license to enter the Property to perform all work and inspections deemed appropriate by the City in conjunction with the development of the Property. 10. EROSION CONTROL. A. Developer shall be responsible for constructing and maintaining all grading, storm water/drainage infrastructure, and erosion control in compliance with the Plans, the City Engineer or his/her designee’s requirements, and the individual building/grading plan for each specific lot, until the later of: (i) such time as the City Council has accepted the Developer Installed Public Improvements in writing; or (ii) a certificate of occupancy has been issued for each specifc lot. B. Developer shall install silt fence prior to lot construction to avoid erosion to adjoining properties, public sidewalk or the public street; locate all garbage roll offs and dumpsters, or cause the same to be located, on the Property and not on public property; and install protection at catch basins to prevent silt and debris from entering the storm sewer. Page 7 C. Developer shall seed or lay cultured sod in all boulevards and restore all other areas disturbed by the Development Work within thirty (30) days of the completion of street related improvements. Boulevard and Area Restoration shall be in accordance with the approved erosion control plan and SWPPP. No building permits will be issued until the Developer has installed silt-fence behind the curb of all buildable lots. Developer shall be responsible for the maintenance of any silt fence installed. Upon request of the City Engineer or his/her designee, the Developer shall remove the silt fences after turf establishment. D. Prior to initiating site grading, the erosion control plan and SWPPP shall be implemented by the Developer and inspected and approved by the City Engineer or his/her designee. The City Engineer or his/her designee may require the Developer, at no cost to the City, to install additional erosion control measures if they are necessary to meet erosion control objectives. All areas disturbed shall be reseeded immediately after the completion of the work in that area. All seeded areas shall be mulched and disc anchored as necessary for seed retention. E. No development, utility or street construction will be allowed unless the Property is in full compliance with the erosion control requirements. 11. CONSTRUCTION ACCESS. Construction traffic access is restricted to Sunset Avenue SW. No construction traffic is permitted on other adjacent local streets. 12. IMPROVEMENTS REQUIRED BEFORE ISSUANCE OF BUILDING PERMITS. A. Wetland Buffer Signage must be installed prior to the issuance of any building permits within the Property and in accordance with the requirements of the Public Works Design Manual (Part III, Hydrology Rules). B. A temporary or permanent certificate of occupancy shall not be issued for any building on the Property until water and sanitary sewer improvements have been installed and the streets have been completed and said improvements have been inspected and determined by the City Engineer or his/her designee to be available for use. Page 8 C. Notwithstanding any other provision of this Agreement, the City will issue a building permit for up to two (2) model homes and a temporary parking lot upon Developer’s compliance with the following requirements: (1) approval of the building plans by the Building Official; (2) approval of a site survey for the model home(s) and parking lot(s) by the City Community Development Director, and (3) presence of a paved street within 300 feet of a model home and presence on said paved street of a fire hydrant within 300 feet of a model home and approval by the Fire Chief. 13. CONSTRUCTION OBSERVATION. The City’s authorized personnel or contractors shall provide construction observation during the installation of the Developer Installed Public Improvements in accordance with the PWDM. These services by the City shall include: A. Construction observation during installation of required Developer Installed Public Improvements, which include grading, sanitary sewer, water main, storm sewer/ponding and street system. B. Documentation of construction work and all testing of Developer Installed Public Improvements. C. Field document as-built location dimensions for sanitary sewer, water main and storm sewer facilities. The Developer’s Engineer is responsible for data collection and preparation of as-built record plans. D. Resident communication for Sunset Avenue reconstruction. 14. DEDICATIONS, CONVEYANCES, EASEMENTS AND VACATIONS. A. Developer shall convey to the City, through dedication in the final Plat or a separate conveyance document, fee title or an easement (whichever is required by the City Attorney), all of the following: (i) the property encompassing all Developer Installed Public Improvements, (ii) property necessary for all public and private connections and access to all Developer Installed Public Improvements, (iii) property for streets, sidewalks, and trails identified in the Plans; (iv) any property for park dedication, and (v) all other property interests, conveyance of which is required by this Agreement. Page 9 B. Developer shall obtain the written approval of the City Attorney and the City Engineer or his/her desingee of the form of the conveyance documents and the location of all easements or fee title conveyances required by this Agreement. C. With respect to any interest in all portions of the Property which Developer is required, pursuant to this Agreement, to dedicate or convey to the City ("Dedicated Property"), Developer represents and warrants as follows now and at the time of dedication or conveyance: (i) that Developer has marketable fee title free and clear of all mortgages, liens, and other encumbrances to the Dedicated Property. Prior to final plat approval, Developer shall provide to the City a current title insurance policy insuring such a condition of title; (ii) that Developer has not used, employed, deposited, stored, disposed of, placed or otherwise allowed to come in or on the Dedicated Property, any hazardous substance, hazardous waste, pollutant, or contaminant, including, but not limited to, those defined in or pursuant to 42 U.S.C. § 9601, et. seq., or Minn. Stat., Sec. 115B.01, et. seq. (such substances, wastes, pollutants, and contaminants hereafter referred to as "Hazardous Substances"); (iii) that Developer has not allowed any other person to use, employ, deposit, store, dispose of, place or otherwise have, in or on the Property, any Hazardous Substances; and (iv) that to the best of its knowledge, Developer warrants that no previous owner, operator or possessor of the Property deposited, stored, disposed of, placed or otherwise allowed in or on the Property any hazardous substances. D. Developer agrees to indemnify, defend and hold harmless City, its successors and assigns, against any and all loss, costs, damage and expense, including reasonable attorneys’ fees and costs, that the City incurs because of the breach of any of the above representations or warranties and/or resulting from or due to the release or threatened release of Hazardous Substances which were, or are claimed or alleged to have been, used, employed, deposited, stored, disposed of, placed, or otherwise located or allowed to be located, in or on the Dedicated Property by Developer, its employees, agents, contractors or representatives. Page 10 15. DEPOSITS/ESCROWS. A. Deposit for Legal Fees. Developer shall be responsible for all reasonable legal fees incurred by the City relating to revisions and amendments to and enforcement of this Agreement. Developer shall make a cash deposit with the City for legal fees incurred by the City. If the cash deposit is exhausted, the City Engineer or his/her designee may require that Developer submit additional funds to replenish the cash deposit. Alternatively, the City Engineer or his/her designee may invoice the Developer direclty for such costs and Developer shall pay all such invoices within ten (10) days of receipt. City may cease all work and review of the Development Work until the invoice is paid and/or the cash deposit is replenished. Any balance remaining in the cash deposit after the expiration of the Warranty Period shall be returned to the Developer. B. Construction Observation Deposit. Developer shall be responsible for all construction observation costs incurred by the City relating to this Agreement. Developer shall make a cash deposit with the City for construction observation. If the cash deposit is exhausted, the City Engineer or his/her designee may require that Developer submit additional funds to replenish the cash deposit. Alternatively, the City Engineer or his/her designee may invoice the Developer directly for such costs and Developer shall pay all such invoices within ten (10) days of receipt. City may cease all work and review of the Development Work until the invoice is paid and/or the cash deposit is replenished. Any balance remaining in the cash deposit after the City Council’s final acceptance of the Developer Installed Public Improvements shall be returned to the Developer. 16. FEES AND CHARGES. Developer shall pay the fees and charges identified below, set forth in the City Fee Schedule and described in detail in Exhibit B prior to any work occurring on the Property. Fees and charges are nonrefundable. Such fees and charges may include but are not limited to the following: Page 11 A. Administrative Fee. Developer shall pay to the City an Administrative Fee based on construction cost estimates to reimburse the City for costs incurred. B. Park Dedication Fee. Prior to release of the final Plat, Developer shall pay cash park dedication fees for the Property as required by City Code in effect as of the date of the plat approval. C. Tree Preservation and Replacement. D. Trunk Storm Water Acreage Charge. E. Trunk Water Acreage Charge. F. Trunk Sewer Acreage Charge. G. Street Light Operational Costs. H. Chip Seal Fee. 17. MAINTENANCE OF PLATTED LOTS. Developer shall provide ongoing maintenance of all platted lots on the Property, including but not limited to mowing and weed control, sidewalk clearing ice, snow, building materials, eroded materials, and other debris), storm water and erosion control, and other maintenance issues for which the Developer receives notice from the City Manager or his/her designee. Developer’s obligations pursuant to this paragraph shall continue until the later of: (i) such time as the City Council has accepted the Developer Installed Public Improvements in writing; or (ii) until each specific lot is sold. 18. OVERSIZING. Oversizing is the construction of a Developer Installed Public Improvement to City specifications that exceeds those that would be required of the Developer in order to serve additional development. Oversizing improvements include, but are not limited to, sanitary sewer, water, storm drainage facilities, and road improvements. If the City Engineer or his/her designee determines that oversizing is required for sanitary sewer, water or storm drainage, the City shall reimburse the Developer for the costs associated with this work. City and Developer agree that the cost of system oversizing to be reimbursed to the Developer is based upon the following: a cost estimate by the City Engineer or his/her designee based on Page 12 an engineer’s estimate or contractors bid to be provided by the Developer; and application of the City's Assessment Policy based on a final engineering design as described in Exhibit B. If the City Engineer or his/her designee determines that oversizing is required for road improvements, Developer shall install such oversize improvements at Developer’s cost. 19. LANDSCAPING (Single-Family Residential). In accordance with the City Subdivision Code, each residential lot on the Property must have at least two (2) front yard trees. The City shall not issue a building permit for a lot until two (2) front yard trees are planted or retained and a cash escrow or letter of credit for the lot in question’s landscaping is provided to the City. The City shall not issue a certificate of occupancy for a lot until the front yard, boulevard, and side yards to the rear of every structure have been sodded, weather permitting. If the required landscaping is not installed, the City is granted a right of entry to enter upon the lot and install the landscaping using the escrowed funds or letter of credit. Upon satisfactory completion of the landscaping on the lot, the escrowed funds less any draw made by the City, shall be returned to the person who deposited the funds with the City. 20. LANDSCAPING. Landscaping for the Property shall comply with Plan C. Developer shall warrant all required trees, whether the trees are to be retained or planted, for one (1) year from the later of: (i) the planting of the tree; or (ii) the issuance of a certificate of occupancy to the lot upon which the tree is located. A tree replaced under this warranty shall be warranted an additional one (1) year from the date of the planting of the replaced tree. In additional to all other security required under this Agreement, Developer shall provide to the City a cash escrow or letter of credit in the amount specified in Exhibit B to secure the planting and retainage of the required trees and to secure this warranty. If Developer fails to plant or retain the required trees or fails to comply with this warranty, the City may draw upon the escrowed funds or letter of credit to plant or replace required trees. Developer may periodically request reductions of the escrowed funds or letter of credit and the City Engineer or his/her designee may approve such a request in an amount of the value of each healthy tree for which the warranty has expired as determined by the City Engineer or Page 13 his/her designee. No tree plantings shall be placed within five (5) feet of a sanitary sewer, storm sewer, or water main line. All plantings permitted in public right-of-way/boulevard areas shall be placed a minimum four (4) feet behind the curb, be of deciduous species (no coniferous species), and be located outside of a fifty 50) foot sight triangle at street corners. 21. SECURITY. A. To guaranty compliance with the terms of this Agreement, Developer shall furnish the City an irrevocable letter of credit or other security deemed acceptable to the City Attorney and City Engineer or his/her designee (“Security”) in the following amounts: i. 125% of projected costs for the Developer Installed Public Improvements as certified to by a registered engineer and approved by the City Engineer or his/her designee. ii. 125% of projected costs for the grading, drainage, wetland and erosion control plan, including storm water calculations from proposed impervious surfaces as certified by a registered engineer and approved by the City Engineer or his/her designee. iii. 125% of projected costs for the landscape plan, as certified by a registered engineer and approved by the City Engineer or his/her designee. B. This, and any other breakdown, is for establishing the amount of the Security not a restriction on the use of the Security. All Security held by the City may be used in any manner allowed by this Agreement, to reimburse the City for any costs incurred related to this Agreement and the project, and/or to cure any breach of this Agreement. C. The Security shall be in the form attached hereto as Exhibit C or other form as approved by the City Attorney in writing and shall be from a bank approved by the City Attorney. The bank shall be authorized to do business in the State of Minnesota. The Security shall extend through completion, acceptance by the City Council and the Warranty Period of the Developer Installed Public Improvements. D. In the event that Developer fails to comply with the terms of this Agreement (“breach”), the City may draw on the Security in whole or in part without notice by delivering or mailing by certified mail to the issuer a statement identifying the amount of the draw and reason for the draw. In addition, if Page 14 the Development Work is not completed at least 30 days prior to the expiration of the Security, the City may draw on the Security in the same manner. The City shall not be under any obligation to cure any breach of the terms of this Agreement with the proceeds from the Security, but may, at the City’s sole option, cure the breach or retain the proceeds from the Security until Developer cures the breach. In the event the breach is fully cured by Developer, the City shall then release to Developer such retained draw proceeds, less any expenses incurred by the City as a result of the breach (including but not limited to engineer’s, attorney’s, and other consultant fees and costs). E. If the City makes a draw on the Security, Developer shall immediately replenish the Security to an amount then sufficient to cure any breach plus 125% of the cost of all Development Work then remaining for which the Security was required. F. The City Engineer or his/her designee may, from time to time, and only if Developer is otherwise in compliance with all terms of the Agreement, approve a reduction in the amount of the Security based upon work completed. The City shall at all times throughout construction and the Warranty Period maintain a minimum $50,000 or 10% of the Development Work for which Security was required, whiciever is greater. 22. CLEAN UP AND DAMAGE: A. Developer assumes full financial responsibility for any damage which may occur to public property including but not limited to streets, street sub- base, base, bituminous surface, curb, utility system including but not limited to water main, sanitary sewer or storm sewer when said damage occurs as a result of the activity which takes place during the development of the Property. Developer further agrees to pay all costs required to repair the streets, utility systems and other public property damaged or cluttered with debris when occurring as a direct or indirect result of the construction that takes place on the Property. B. Developer shall clean the streets every day or as required by the City Engineer or his/her designee. Page 15 C. Developer agrees that any damage to public property occurring as a result of construction activity on the Property shall be repaired immediately if deemed to be an emergency by the City Engineer or his/her designee. Developer further agrees that any damage to public property as a result of construction activity on the Property shall be repaired within 14 days if not deemed to be an emergency by the City Engineer or his/her designee. 23. NON-INTERFERENCE WITH ADJOINING PROPERTIES. All work performed by Developer and Developer’s contractors and subcontractors shall be performed exclusively upon the Property. Any work related to roads, trails, drainage, and utility improvements, which are specified herein to occur on land outside the Property, shall occur exclusively within the appropriate easement boundaries for such work. In no event shall any work performed by Developer or Developer’s contractors and subcontractors interfere with other properties, right-of-ways, or easements. 24. DEVELOPER’S RESPONSIBILITY FOR CODE VIOLATIONS: In the event of a violation of City Code relating to use of the Property during construction thereon or failure to fulfill an obligation imposed upon the Developer pursuant to this Agreement, City shall give 72 hour notice of such violation in order to allow a cure of such violation, provided however, City need not issue a building or occupancy permit for construction or occupancy on the Property while such a violation is continuing, unless waived by the City Engineer or his/her designee. The existence of a violation of City Code or the failure to perform or fulfill an obligation required by this Agreement shall be reasonably determined by the City Manager or his/her designee. 25. DEVELOPER'S RESPONSIBILITY FOR ITS CONTRACTORS: Developer shall release, defend and indemnify City, its elected and appointed officials, employees and agents from and against any and all claims, demands, lawsuits, complaints, loss, costs (including attorneys’ fees), damages and injunctions relating to any acts, failures to act, errors, omissions of Developer or Developer's consultants, contractors, subcontractors, suppliers and agents. Developer shall not be released from its Page 16 responsibilities to release, defend and indemnify because of any inspection, review or approval by City. 26. RESPONSIBILITY FOR COSTS. Except as otherwise specified herein, Developer shall pay all costs incurred by it or the City in conjunction with the development of the Property, including, but not limited to, legal, planning, engineering, design, development, construction, clean up, repair, easement and land acquisition, and inspection expenses incurred in connection with (i) review, approval, denial, and implementation of zoning, CUP, platting, site and building plan, and any other reviews, approvals, or denials by the City and any other reviewing authority; (ii) the Developer Installed Public Improvements; iii) the Property; (iv) the preparation and review of the Agreement and other documents referred to in the Agreement or related to the Development Work; and (v) enforcing the terms of this Agreement. Developer shall pay in full all bills submitted to it by the City, in accordance with this Agreement, within 30 days after receipt. 27. DEVELOPER'S DEFAULT. A. Definition. In the context of this Agreement, “Event of Default” shall include, but not be limited to, any one or more of the following events: (1) failure by the Developer to pay in a timely manner, all fees, charges, taxes, claims and liabilities, including but not limited to all real estate property taxes, utility charges, and assessments with respect to the Property; (2) failure by the Developer to construct the Developer Installed Public Improvements pursuant to the terms, conditions and limitations of this Agreement; (3) failure by the Developer to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement; (4) transfer of any interest in the Property without prior written approval by the City Council (for the purpose of this paragraph, the sale of a lot, except an outlot, to a builder is not an event of default); (5) failure to correct any warranty deficiencies; (6) failure by the Developer to reimburse the City for any costs incurred by the City or to pay when due the payments required to be paid or secured in connection with this Agreement; (7) failure by the Developer to renew the Security at least thirty 30) days prior to its expiration date; (8) receipt by the City from the Developer’s insurer of a notice of pending Page 17 termination of insurance; (9) failure to maintain a current insurance certificate on file with the City meeting City requirements; (10) failure to maintain the required insurance, bonds or Security; (11) a breach of any provision of this Agreement; (12) if any representation made by Developer in this Agreement, is inaccurate, either when made or at a later date; (13) failure by Developer to pay its debts as they become due, the voluntary or involuntary filing of a petition in bankruptcy, an assignment by Developer for the benefit of its creditors, or the appointment of a receiver for (a) Developer; (b) all or any substantial portion of Developer’s assets; (c) the Property; or (14) if Developer is in default under any mortgage or other pledge, guaranty or security agreement. B. Event of Default - Remedies. Whenever an Event of Default occurs, the City, through the City Manager, City Engineer, City Community Deveopment Director, City Attorney or any of their designees, may take any one or more of the following actions: 1. The City may suspend its performance under this Agreement. 2. The City may draw upon or bring action upon any or all of the securities provided to the City pursuant to any of the terms of this Agreement. 3. The City may take whatever action, including legal or administrative action, which may be necessary or desirable to the City to collect any payments due under this Agreement or to enforce performance and/or observance of any obligation, agreement or covenant of Developer under this Agreement. 4. The City may suspend issuance of building permits and/or certificates of occupancy on any of the lots, including those lots sold to third parties. 5. The City may suspend the release of any escrowed dollars. 6. The City may use deposit or escrow dollars or other security to satisfy any outstanding financial obligations to the City including but not limited to all real estate property taxes, utility charges, and assessments with respect to the Property; Page 18 7. The City is hereby granted the option, but not the obligation, to complete or cause completion in whole or part of all of the Developer’s obligations under this Agreement. This Agreement is a license for the City to act, and it shall not be necessary for the City to seek a court order for permission to enter the Property and cure the default, including but not limited to, completion of the Development Work. When the City does any such work all costs incurred by the City in performing such work shall be recoverable by it from the Security, and shall also constitute a lien on the Property, and the City may, in addition to its other remedies, collect the costs in whole or in part as special assessments as specified in Chapter 429 of the Minnesota Statutes. Developer knowingly and voluntarily waives all rights to appeal said special assessments under Minnesota Statutes Section 429.081. C. Notice. In a non-emergency, Developer shall first be given written notice of the Event of Default not less than 48 hours prior to City’s curing the default or exercising a remedy, or such other period of time as the City, in its sole discretion, deems reasonable under the circumstances. If, in the City’s judgment, an Event of Default results in a threat to the public health, safety or welfare, the City may act to correct the default without notice. D. Election of Remedies. No remedy conferred in this Agreement is intended to be exclusive and each shall be cumulative and shall be in addition to every other remedy. The election of any one or more remedies shall not constitute a waiver of any other remedy. The City may, but is not obligated to, exercise any of the remedies referred to in this paragraph 27. 28. NOTICES. A. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, its employees or agents, or mailed to the Developer by United States mail at the following address: D.R. Horton – Minnesota; 20860 Kenbridge Ct.; Lakeville, MN 55044. Notices to the City shall be in writing and shall be either hand delivered to the City Manager, or mailed to the City by United States mail in care of the City Manager at the following address: City of Prior Lake, 4646 Dakota Street SE, Prior Lake, Minnesota Page 19 55372. Concurrent with providing notice to the City, notice(s) shall be served upon the City Attorney Dave Kendall, Campbell Knutson P.A., Grand Oak Office Center I, 860 Blue Gentian Road, Suite 290, Eagan, MN 55121. B. Notices shall be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. C. Notice related to an Event of Default shall include the following: (1) the nature of the breach of the term or condition that requires compliance by the Developer, or the Event of Default that has occurred; 2) what the Developer must do to cure the breach or remedy the Event of Default; and (3) the time the developer has to cure the breach or remedy the Event of Default. 29. INDEMNIFICATION. Developer shall indemnify, defend, and hold the City, its Council, agents, employees, attorneys and representatives harmless against and in respect of any and all claims, demands, actions, suits, proceedings, liens, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties, and attorneys’ fees, that the City incurs or suffers, which arise out of, result from or relate to this Agreement or the Development Work. The responsibility to indemnify and hold harmless the City, its Council, agents, employees, attorneys and representatives does not extend to any willful or intentional misconduct on the part of any of these individuals. 30. NO THIRD PARTY RECOURSE. The City and Developer agree that third parties shall have no recourse against the City under this Agreement. The Developer agrees that any party allegedly injured or aggrieved as a result of the City Council’s approval of the final Plat shall seek recourse against the Developer or the Developer’s agents. In all such matters, including court actions, the Developer agrees that the indemnification and hold harmless provisions set out in paragraph 29 shall apply to said actions. This Agreement is a contract agreement between the City and the Developer. No provision of this Agreement inures to the benefit of any third person, including the public at large, so as to constitute any such person as a Page 20 third-party beneficiary of the Agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action for any person not a party hereto. 31. INSURANCE REQUIREMENTS. Developer, at its sole cost and expense, shall take out and maintain or cause to be taken out and maintained, until the expiration of the Warranty Period, a policy of insurance with limits for bodily injury, death, and property damage of not less than $1,000,000.00 per occurence and $2,000,000.00 aggregate. The City, its elected and appointed officials, officers, employees, planners, engineers, attorneys, and agents shall be named additional insureds on any such policy. The insurance certificate shall provide that the City shall be given 30 days advance written notice before any modification, amendment or cancellation of the insurance becomes effective. 32. FINAL PLAT AND DEVELOPMENT AGREEMENT. The final Plat and Agreement shall be recorded with the Scott County Recorder or Registrar of Titles, as applicable within 90 days of approval by the City Council. The final plat shall be considered void if not recorded within the 90 days provided for herein unless a request for a time extension is submitted in writing and approved by the City Council prior to the expiration of the 90-day period. 33. RECONSIDERATION OR RESCISSION. If Developer fails to proceed in accordance with this Agreement within twenty-four (24) months of the date hereof, Developer, for itself, its successors, and assigns, shall not oppose the City’s reconsideration and rescission of all approvals issued in connection with this Agreement, thus restoring the status of the Property before the Agreement and all such approvals. 34. SIGNS. The Developer hereby waives any claim against the City for removal of signs placed in the right-of-way in violation of the City Code or State Statutes. The City shall not be responsible for any damage to, or loss of, signs removed. Page 21 35. MISCELLANEOUS. A. Compliance With Other Laws. The Developer represents to the City that the Plat and the Developer in performing all work under this Agreement shall comply with all county, metropolitan, state, and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City Engineer or his/her designee or the City Attorney determines that the Plat or Developer is not in compliance, the the City Engineer or his/her designee or the City Attorney may, at his/her option, refuse to allow construction or Development Work on the Property until the Developer does comply. Upon such demand, the Developer shall cease work until there is compliance. B. Permits. The Developer shall obtain all necessary approvals, permits and licenses from the City, and any other regulatory agencies and the utility companies. All costs incurred to obtain said approvals, permits and licenses, and also all fines or penalties levied by any agency due to the failure of the Developer to obtain or comply with conditions of such approvals, permits and licenses, shall be paid by the Developer. C. Severability. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portions of this Agreement. D. Amendments. There shall be no amendments to this Agreement unless in writing, signed by the parties and approved by resolution of the City Council. E. Waiver. Failure of the City to require performance of any provision of this Agreement shall not affect its right to require full performance of this Agreement at any time thereafter and the waiver by the City of a breach of any such provision shall not be a waiver of any subsequent breach and shall not nullify the effectiveness of such provision. F. Assignment. The Developer may not assign this Agreement without the prior written approval of the City Council. The Developer's obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots, the entire Property, or any part of it. Page 22 G. Interpretation. This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. The words herein and hereof and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than to any particular section or subdivision hereof. Titles in this Agreement are inserted for convenience of reference only and shall be disregarded in constructing or interpreting any of its provisions. H. Successors and Assigns. Provisions of this Agreement shall be binding upon and enforceable against Developer’s successors and assigns including but not limited to all purchasers and owners of all or any part of the Property and their successors and assigns. I. Performance Standards. The Property shall be developed and operated in a manner meeting all applicable noise, vibration, dust and dirt, smoke, odor and glare laws and regulations. J. No City Liability. Except for the intentional acts of the City or its employees and contractors, no failure of the City to comply with any term, condition, covenant or agreement herein shall subject the City to liability for any claim for damages, costs or other financial or pecuniary charges. 36. PLANNED UNIT DEVELOPMENT. The Property is being developed as a Planned Unit Development. The City Council has found that the proposed development of the Property is in compliance with City Code Section 1106. The Property shall be developed in compliance with Resolution No. 22- dated ____________, and the plans approved by that Resolution. Page 23 CITY OF PRIOR LAKE By: ________________________________ Mayor By: ________________________________ City Manager STATE OF MINNESOTA ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this _____ day of ____________, 20__, by Mayor, and by ____________________, City Manager, of the City of Prior Lake, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC Page 24 D.R. Horton Inc. - Minnesota By: ________________________________ Its: ________________________________ STATE OF MINNESOTA ) ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______ day of ____________, 20__, by as _____________________________________________of D.R. Horton Inc. – Minnesota, a Delaware Corporation, on behalf of the coroporation. NOTARY PUBLIC DRAFTED BY: City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 Page 25 EXHIBIT A TO DEVELOPMENT AGREEMENT Page 26 EXHIBIT A TO DEVELOPMENT AGREEMENT Page 27 EXHIBIT A TO DEVELOPMENT AGREEMENT Page 28 EXHIBIT A TO DEVELOPMENT AGREEMENT Page 29 EXHIBIT A TO DEVELOPMENT AGREEMENT Page 30 EXHIBIT A TO DEVELOPMENT AGREEMENT Page 31 EXHIBIT B TO DEVELOPMENT AGREEMENT Deposit/Escrow Amt Per Total Construction Observation Deposit 8% of Public Improvements = $ 238,342.00 TOTAL Deposit/Escrow = $ 238,342.00 Fee Amt Per Total Administrative Fee 6% of Public Improvements = $ 168,757.00 Park Dedication Fee $ 3,750.00 X 52 Units = $ 195,000.00 Trunk Sanitary Sewer Acreage $ 4,850.00 X 18.710 Acres = $ 90,744.00 Trunk Water Acreage $ 3,950.00 X 18.710 Acres = $ 73,905.00 Trunk Storm Sewer Acreage $ 4,300.00 X 18.710 Acres = $ 80,453.00 Chip Seal Fee (Public Streets) $1.90 X 14,538 Sq Yds = $ 27,622.00 TOTAL Fee = $636,481.00 10,000 of administrative fee already paid with plat applications (Total Admin Fee is $ 178,757.00) Security Total Sanitary Sewer = $ 1,094,480.75 Water Main = $ 435,808.00 Storm Sewer = $ 632,828.70 Streets/Sidewalks/Trails = $ 1,257,368.70 Street – Sunset Avenue Reconstruction = $ 55,705.00 Lift Station – Trenchless Connection 92,500.00 Subtotal (rounded) = $ 3,568,691.15 TOTAL (125% of subtotal) = $ 4,460,864.00 Oversizing Calculation Total Trunk Sanitary Sewer = $ 589,411.00 Fees/amounts due may be paid and/or credited against amounts owed. Page 32 EXHIBIT C TO DEVELOPMENT AGREEMENT SAMPLE IRREVOCABLE LETTER OF CREDIT No. ___________________ Date: _________________ TO: City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 Dear Sir or Madam: By order of our client [name and address of client] we hereby issue our standby irrevocable Letter of Credit for the account of the [insert name of client] for an amount or amounts not to exceed in the aggregate U.S. Dollars $ Thousand and No/100 U.S. Dollars) effective immediately and expiring at our [insert address of office] on [insert date] relative to our client’s performance under that certain contract entitled [insert name of contract/development agreement, etc.] dated [insert date of contract]. Funds under this Letter of Credit are available against your sight draft(s) on us, for all or part of this Letter of Credit, mentioning thereon our Credit No.______. Each such draft must be accompanied by your signed written statement to the effect that [name of client] has failed to comply with the terms and conditions of the above mentioned contract. Presentation will also be deemed made upon our receipt of your telecopier transmission to us at (FAX NUMBER insert fax number] _____________________) of a facsimile of the appropriate sight draft and written statement completed and signed, together with your telephone advice to us at (TELEPHONE NUMBER [insert telephone number] or such other number as we shall specify to you in writing) of your sending the above-described telecopier transmission. Failure to make the telephone advice will not impair the validity of the presentation. If presentations are made by facsimile the original documents are not required. In the event that at least thirty (30) days prior to the expiry date listed above, this Letter of Credit is not extended for a period of at least one year or has not been replaced with a substitute Letter of Credit acceptable to you, this Letter of Credit is also payable to you upon presentation to us of your written statement mentioning thereon our Credit No.[insert number] ____ and stating “Letter of Credit No. [insert number] __________ has not been extended for a period of at least one year from the present expiration date and has not been replaced with a substitute Letter of Credit acceptable to us.” This letter of credit shall automatically extend for successive one-year terms unless at least forty-five days prior to the next annual extension date of [insert day and month of renewal] ________________ of such year, we deliver written notice by registered mail or overnight courier to the City that we intend not to extend the letter of credit for any additional period. If such notice is delivered and the letter of credit has not been replaced with a substitute letter of credit acceptable to you by the date of said notice, this letter of credit is also payable to you upon presentation to us of your written statement mentioning thereon our Letter of Credit No. [insert number] ______________ and stating “Notice of Modification, Cancellation or Non-Extension of Letter of Credit No. [insert number]_________________has been received and the letter of credit has not been replaced with a substitute letter of credit acceptable to us. If we receive your sight draft(s) and statement(s) as mentioned above, here at our address [insert address], on or before the expiry date of this Letter of Credit, we will promptly honor the same. If an interruption of our business occurred as a result of an Act of God, riots, civil commotion, insurrections, wars or any other causes beyond our control, as described in Article 36 of the Uniform Customs and Practices for Documentary Credits, UCP600 2007 which prevented us from accepting and/or paying you on this Letter of Credit, we undertake upon resumption of our business to accept drafts and pay on this Letter of Credit provided your draft is presented prior or during our business interruption or no later than thirty (30) days following resumption of our business. This Credit is subject to the Uniform Customs and Practices for Documentary Credits, UCP600 2007. Very Truly Yours, Signature of Issuer]