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HomeMy WebLinkAbout_10 27 2026 City Council Agenda Packet 4646 Dakota Street SE Prior Lake, MN 55372 City Council Meeting at City Hall Tuesday, October 27, 2026 City Council Work Session Agenda 5:00 p.m. 1. DISCUSSION ITEM(S) A. PLSLWD update – Operation and Maintenance Coordination (30 min) B. Memorial Park Master Plan Update (30 min) C. Residential Lot Standards & Lake Accessory Commercial Use (30 min) D. Emerging Issues (15 min) 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 https://www.priorlakemn.gov/ \\Doc Center\\City of Prior Lake\\City Council, Planning Commission and Advisory Committees\\City Council\\City Council Agenda Packets\\2026\\10 27 2026 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 October 13, 2026 City Council Meeting 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 the Claims Listing B. Resolution Accepting Donations and Grants to the City During the 3rd Quarter 2026 C. Approval of September 2026 Treasurer's Report D. Approval of 3rd Quarter 2026 Investment Report E. Resolution Approving a Work Order for Well 10 Design and Construction Administration (2027-03) F. Resolution Approving an Amendment to Chapter 6, Park & Trail System Plan, of the City of Prior Lake G. Ordinance Amending Shoreland Impervious Coverage and Lake Classifications H. Approval of the Animal Control Services Report- September I. Resolution Approving the Prior Lake Police to Enter into a Grant Agreement with the Minnesota Depart 6. PRESENTATIONS 7. PUBLIC HEARINGS A. Resolution Vacating a Drainage and Utility Easement Located Between Lot 1 and Lot 2, Block 2, Gateway Shores 8. OLD BUSINESS 9. NEW BUSINESS 10. REMOVED CONSENT AGENDA ITEMS 11. COUNCILMEMBER LIAISON UPDATES / COUNCILMEMBER REPORTS 12. OTHER BUSINESS 13. ADJOURNMENT ITEM: 1A CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Stephanie Thulien, Project Engineer – Stormwater PRESENTED BY: Nick Monserud, Public Works Director/City Engineer Stephanie Thulien AGENDA ITEM: PLSLWD update – Operation and Maintenance Coordination BACKGROUND: The City and the Prior Lake-Spring Lake Watershed District (PLSLWD) have a longstanding partnership focused on managing water resources and improving water quality within Prior Lake. Both organizations have constructed and maintain iron-enhanced sand filters, which help improve water quality by removing excess nutrients. These filters require ongoing maintenance, including tilling, mowing, scraping, and hand-pulling vegetation. Periodic monitoring is also necessary to assess remaining filter capacity and ensure the filters continue to function as intended. City and PLSLWD staff have been exploring opportunities to collaborate on the maintenance and monitoring of these sites by leveraging each organization’s respective staff, equipment, and expertise. The proposed partnership would be formalized through a Memorandum of Agreement (MOA) outlining the framework and intent of the collaboration. Under this approach, the parties would annually approve a scope of work identifying each organization’s responsibilities based on anticipated maintenance and monitoring needs, available resources, and budget considerations. A summary of the proposed MOA and partnership framework will be presented to the City Council at this work session to obtain feedback and provide direction on next steps. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 ITEM: 1B CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Steve Hart, Parks and Recreation Manager PRESENTED BY: Nick Monserud, Public Works Director/City Engineer Steve Hart AGENDA ITEM: Memorial Park Master Plan Update BACKGROUND: At its January 27, 2026, meeting, the City Council authorized a work order with HKGi to assist staff in developing a Master Plan for Memorial Park, as recommended in the City’s Park and Trail System Master Plan. Since that time, staff have worked with HKGi to develop the master plan through site analysis, community engagement, stakeholder input, and staff review. At this work session, staff and HKGi will present a summary of the planning process completed to date and a preferred park concept for City Council feedback and discussion. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 ITEM: 4A CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Heidi Simon, City Clerk PRESENTED BY: Heidi Simon AGENDA ITEM: Approval of the October 13, 2026 City Council Meeting Minutes RECOMMENDED ACTION: Approve the October 13, 2026 city council meeting minutes as presented. ALTERNATIVES: 1. Motion and second to approve the October 13, 2026 City Council meeting minutes as presented. 2. Motion and second to review or revise the October 13, 2026 City Council meeting minutes. ATTACHMENTS: 1. 10 13 2026 City Council Minutes City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL MEETING MINUTES October 13, 2026 1. CALL TO ORDER Mayor Briggs called the meeting to order at 7:00 p.m. Present were Councilors Braid, and Hellier. Absent: Churchill. Also in attendance were City Manager Wedel, Police Chief Duggan, and City Clerk Simon in attendance. 2. PUBLIC FORUM Nina Resler-Myklebust, 16872 Peregrine Cir. SW: On the evening of October 4th gun shots were discharged on Willow Lane SW, have audio from resident who lives 3 houses away. (Audio played from personal cell phone over speaker). Expected police to release a public statement, nothing was released. Incident occurred not as close to Five Hawks Elementary as news stories were reporting. Lack of info from Prior Lake Police is disappointing. In future, hope incidents as such are treated with more transparency. Wedel: Thank you for your comments, imagine it was very concerning. Fortunately, the police de- partment apprehended the individual responsible for discharging the firearm immediately. City is always trying to navigate the appropriate level of response per event. This incident created no public safety concern, and the person was apprehended immediately so a press release was de- termined to not be warranted. 3. APPROVAL OF AGENDA MOTION BY LAKE SECOND BY HELLIER, TO APPROVING THE AGENDA AS PRESENTED. VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☒ ☐ ☐ The motion carried. 4. APPROVAL OF CITY COUNCIL MEETING MINUTES A. Approval of September 22, 2026, City Council Minutes MOTION BY BRAID SECOND BY HELLIER, TO APPROVE September 22, 2026, MEETING MINUTES AS PRESENTED. 1 VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☒ ☐ ☐ The motion carried. 5. CONSENT AGENDA A. Approval of Claims Listing B. Resolution 26 -139 Authorizing Final Payment for the Lakeside Sewer Lining Project, Phase 1 (2021-14) C. Resolution 26-140 Authorizing Final Payment for the North Tower Reconditioning Project (2026- 06) D. Approval of a Refuse Hauler License for Nitti Sanitation Inc. E. Resolution 26 – 141 Approving Amendment to Communications Facilities Agreement with AT&T – Cedarwood Street Water Tower F. Renewal of Legislative Services Agreement with Lockridge Grindal Nauen PLLP G. Resolution 26 – 142 Approving the Scott County Three Rivers Park District to Conduct the 2026 White – Tail Deer Management Hunt at Spring Lake Park H. Resolution 26-143 Receiving Quotes and Awarding a Contract for Trail Replacement at Lake Front Park I. Resolution 26-144 Authorizing Receipt of Quotes and Awarding Contract for Hickory Shores and Lakers Lift Station Pump Replacement Project J. Resolution 26-145 Approving Amendment with Verizon at the Wilds Parkway Civil Defense Tower K. Resolution 26-146 Approving a Work Order to Provide Professional Engineering Services for Phase 2 of the Lakeside Sewer Lining Project (2027-04) L. Resolution 26-147 Approving Transfer from the Community Development General Fund to the Economic Development Authority Special Revenue Fund M. Resolution 26-148 Approving a Cooperative Agreement for the County Highway 17 Recon- struction Project N. Resolution 26-149 Approving a Final PUD Plan and Resolution 26-150 a Final Plat and DA for Campbell Shores Drive O. Resolution 26-151 Approving a Combined Preliminary and Final Plat and an Ordinance 126 – 13 Rezoning from A (Agriculture) to R-1 (Low Density Residential) for a Plat to be know as Marsh Drive P. Approval of the Building Permit Summary Report – September MOTION BY BRAID SECOND BY LAKE, TO APPROVE THE CONSENT AGENDA AS PRE- SENTED. VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☒ ☐ ☐ The motion carried. 10 13 2026 City Council Meeting Minutes Hellier: Item 5F, thank Lockridge for the work they did during the 2026 legislative session on behalf of the City. Briggs: Item 5N, very much looking forward to this new development. 6. PRESENTATIONS A. Honoring New Hire – Prior Lake Police Department Police Chief Duggan presented the item. Recess for photos called at 7:15 pm Meeting reconvened at 7:19 pm B. Proclamation Declaring October 2026 as Domestic Violence Awareness Month City Manager Wedel presented the item. 7. PUBLIC HEARINGS A. Public Hearing to Consider Special Assessments for the 2026 Unpaid Special Charges and Consider Approval of Resolutions Adopting the Assessments. Finance Supervisor Gieseke presented the item. Public hearing opened at 7:26 p.m. by BRAID seconded by LAKE VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☒ ☐ ☐ ☐ The motion carried. No speakers. Public hearing closed at 7:27 p.m. by LAKE seconded by HELLIER VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☒ ☐ ☐ ☐ The motion carried. 10 13 2026 City Council Meeting Minutes Briggs: Staff has worked to reduce the number of delinquencies, implementing process to inform landlords of renter delinquent accounts. What is the number of properties that are on this list every year? Wedel: Over the past 3 years, 45 properties are consistently on the list every year. MOTION BY BRAID SECOND BY HELLIER, TO APPROVE RESOLUTION 26- 152 ADOPTING THE 2026 ASSESMENT ROLLS – SPRING LAKE TOWNSHIP VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☒ ☐ ☐ The motion carried. MOTION BY BRAID SECOND BY HELLIER, TO APPROVE RESOLUTION 26-153 ADOPTING THE 2026 ASSESMENT ROLLS- CITY OF PRIOR LAKE VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☒ ☐ ☐ The motion carried. 8. OLD BUSINESS None. 9. NEW BUSINESS None. 10. REMOVED CONSENT AGENDA ITEMS None. 11. COUNCIL MEMBER LIAISON UPDATES/ COUNCIL MEMBER REPORTS Hellier: 10/9 SCALE General, 10/9 Agenda Review Lake: 10/9 SCALE General meeting, 10/9 Agenda Review, 10/12 EDA Meeting Churchill: Absent. 10 13 2026 City Council Meeting Minutes Braid: 10/7 Orderly Annexation Meeting, 10/12 Agenda Review, 10/12 EDA Meeting Briggs: 9/29 Comcast Facility Tour, 10/7 Municipal Legislative Commission Board Meeting, An- nexation Task Force Meeting, 10/8 Meeting with SMSC, 10/9 SCALE General Meeting th Wedel: Reminder, annual Candy Crawl Friday October 30 from 10:00 am to 1:00 pm. City Hall is not included this year due to construction next door. 12. OTHER BUSINESS None. 13.ADJOURNMENT MOTION BY BRAID, SECOND BY HELLIER, TO ADJOURN THE MEETING AT 7:33 p.m. VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☒ ☐ ☐ The motion carried. Respectfully Submitted, Jason Wedel, City Manager 10 13 2026 City Council Meeting Minutes Payments Issued 10/03/2026 - 10/16/2026 DateChecksACHEFTTotal 10/5/2026 3,119.18 3,119.18 10/6/2026 435.06 435.06 10/7/2026 1,679.45 1,679.45 10/8/2026 17.98 17.98 10/9/2026 217,803.60 18,657.58 236,461.18 10/13/2026 194,327.94 194,327.94 10/14/2026 1,494.60 1,494.60 10/15/2026 6.00 6.00 10/16/2026 1,483.00 1,483.00 217,803.60 18,657.58 202,563.21 439,024.39 ITEM: 5A CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Melissa Fonder, Accounting Specialist PRESENTED BY: Nicole Klekner, Finance Director AGENDA ITEM: Approval of the Claims Listing RECOMMENDED ACTION: Adopt claims listing as presented. BACKGROUND: Below is a summary of the payments issued (check, EFT, ACH and wires) for the specified time period. The detailed claims listing has been provided to the City Council as a separate document and is available for public view at City Hall upon request. The City has transitioned to this method of claims reporting in 2026 due to increasing risk of fraud for local governments. This change will allow the City to mitigate this risk while still providing transparency for the public. ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt the claims list as presented. 1. Motion and second to remove this item from the consent agenda for additional discussion. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 ITEM: 5B CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Bradley Smith, Accountant PRESENTED BY: Nicole Klekner, Finance Director AGENDA ITEM: Resolution Accepting Donations and Grants to the City During the 3rd Quarter 2026 RECOMMENDED ACTION: Approve the 3rd Quarter of 2026 Donations and Grants as submitted. BACKGROUND: The purpose of this agenda item is to consider acceptance of donations and grants made to the City during July, August, and September 2026 and to authorize City staff to amend the budget for any additional revenues received and expenditures that may be incurred to comply with grant agreement and restricted donations. Minnesota State Statute 465.03 requires that the City accept a grant or demise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. In addition to being a legal requirement, this resolution encourages transparency in government and accountability. A resolution has been prepared that identifies the donations and grants that were received during the third quarter of 2026 and the terms in which they were presented. If a donation or grant was accepted under separate resolution, it has not been included in this current list. While it is certainly our intent to include all donations and grants for the third quarter of 2026, we recognize that we may have inadvertently missed some. Those will be addressed in subsequent resolutions. FINANCIAL IMPACT: Certain donations and grants and their corresponding expenditures are reflected in the annual budget due to their recurring nature. Acceptance of additional donations and grants may result in additional or offsetting expenditures depending on the terms prescribed by the donor. ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve the 3rd Quarter of 2026 Donations and Grants as submitted. 2. Motion and second to remove the Donations and Grants from the consent agenda for additional discussion. ATTACHMENTS: 1. 2026 3rd Q Resolution - Approval of a Resolution Accepting Donations and Grant City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26- Motion By: Second By: WHEREAS, MN Statute 465.03 requires that cities accept donations for the benefit of its citizens in accordance with the terms prescribed by the donor; and WHEREAS, MN Statute 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution of the governing body by two-thirds of its members; and WHEREAS, additional revenues received may require the City to incur additional expenditures in order to comply with grant agreements and restricted donations; and WHEREAS, the City has received the following donations of money, goods or property during July, August, and September of 2026: Donor Value Designated Use Scott County CDA $75,000.00 EDAP Grant Scott County $31,250.00 AUAR Shakopee Mdewakanton Sioux Community $381,250.00 3rd Quarter 2026 Police City of Shakopee $6,819.43 Q3 2026 TZD Grant Metropolitan Council $1,900.79 Water Efficiency Rebate Grant Metropolitan Council $149,907.00 Inflow & Infiltration Grant Lightbridge Academy $500.00 Music in the Park sponsorship Prior Lake Savage Optimist Club $3,500.00 Recreation Scholarships Prior Lake Savage Optimist Club $1,500.00 Sculpture Concrete Pad Reimbursement Prior Lake Lions $3,000.00 Flag Pole – Miracle League Prior Lake Lions $1,350.00 Monument Restoration – SP Beach US Dept of Justice $5,524.38 Ballistic Vest Grant Anonymous $169.40 General Recreation Anonymous $47.54 Club Prior Anonymous $93.70 Club Prior Mary Francis $2,000.00 Club Prior fitness classes NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. City staff is authorized to amend the budget to comply with grant agreements and restrictive donations. 3. The grants and donations are hereby officially accepted and acknowledged with gratitude to the donors. Passed and adopted by the Prior Lake City Council by at least two-thirds of its members this 27th day of October 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager C:\\Users\\hsimon\\AppData\\Local\\Temp\\Report Attachment - 2026 3rd Q Resolution - Approval of a Resolution Accep_679007\\Report Attachment - 2026 3rd Q Resolution - Approval of a Resolutio.docx 2 ITEM: 5C CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Bradley Smith, Accountant PRESENTED BY: Nicole Klekner, Finance Director AGENDA ITEM: Approval of September 2026 Treasurer's Report RECOMMENDED ACTION: Adopt the September 2026 Treasurer’s Report as presented. BACKGROUND: The purpose of this agenda item is for the Council to consider the approval of the monthly Treasurer’s Report for September 2026. This information is being provided in a format which categorizes the balances by fund type. A second page is included to provide the Fund Balance Classification for each of the funds as well as the restrictions placed upon their usage. Even though the business-type funds have an “unrestricted” fund balance and the General Fund has an “unassigned” fund balance, it does not necessarily mean the balance is available to appropriate to other funds for other uses. There are constraints in place due to the type of fund or based on the City’s fund balance policy. FINANCIAL IMPACT: Staff has prepared a preliminary summary of the activity in the funds for the month of September 2026. The Treasurer’s Report reflects the beginning cash balance, receipts, disbursements, and the ending cash balance for each fund. As shown on the September 2026 Treasurer’s Report, the balance of cash and investments is $58.9 million. Of this balance, $56.8 million is investments and $2.1 million is cash. The Report is preliminary, unaudited and will change. The attached memorandum provides a summary of the fund descriptions. ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve the September 2026 Treasurer’s Report as presented. 2. Motion and second to remove the Treasurer’s Report from the consent agenda for additional discussion. ATTACHMENTS: 1. 09-2026 Treasurer's Report (attach 1) 2. 09-2026 Treasurer's Report (attach 2) 3. 09-2026 Treasurer's Report (attach 3) City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 City of Prior Lake Treasurers Report September 2026 Fund 9/1/2026 9/30/2026 Fund Type & Name No.Balance Receipts Disbursements Balance Business-Type Funds Water Fund 601 9,598,447.24$ 144,758.05$ 620,696.42$ 9,122,508.87$ Sewer Fund 604 4,124,215.11 238,069.33 564,982.66 3,797,301.78 Water Quality Fund 602 4,829,055.91 30,783.12 50,341.51 4,809,497.52 Total Business-Type Funds 18,551,718.26$ 413,610.50$ 1,236,020.59$ 17,729,308.17$ Governmental-Type Funds General Fund 101 14,946,361.10$ 221,886.36$ 1,689,711.10$ 13,478,536.36$ Special Revenue Funds Cable Franchise Fund 210 122,177.00$ -$ -$ 122,177.00$ Capital Park Fund 225 1,348,283.49 2,100.00 3,709.00 1,346,674.49 Police Forfeiture Fund 235 114,963.03 - - 114,963.03 EDA Special Revenue 240 1,892,430.66 2,249.00 13,988.06 1,880,691.60 Econ Dev Federal Revolving Loan Fund 250 152,198.45 - - 152,198.45 Developer Agreement Fund 260 472,894.72 35,661.50 3,237.50 505,318.72 MN Public Safety 270 570,061.45 - - 570,061.45 Affordable Housing Aid 275 155,940.95 - - 155,940.95 Total Special Revenue Funds 4,828,949.75$ 40,010.50$ 20,934.56$ 4,848,025.69$ Capital Project Funds TIF #1-6 402 (11,615.00)$ -$ -$ (11,615.00)$ TIF #5-1 416 13,233.82 - - 13,233.82 TIF #1-5 419 69,572.51 - - 69,572.51 Revolving Equipment Fund 410 647,851.30 - 3,045.90 644,805.40 Revolving Park Equipment Fund 430 728,142.23 - 34,766.48 693,375.75 Facilities Management Fund 440 1,790,137.78 - 19,850.66 1,770,287.12 Permanent Impr Revolving Fund 450 1,777,355.46 22,665.75 - 1,800,021.21 Construction Fund 501 3,523,128.56 - 382,347.88 3,140,780.68 Trunk Reserve Fund 502 8,337,291.07 10,640.76 - 8,347,931.83 Water Storage Fund 505 44,644.85 4,800.00 - 49,444.85 Total Capital Project Funds 16,919,742.58$ 38,106.51$ 440,010.92$ 16,517,838.17$ Debt Service Funds 563-581 4,760,527.78$ 111,536.62$ 24,750.00$ 4,847,314.40$ Agency Fund 801 295,903.50$ 62,750.00$ 10,000.00$ 348,653.50$ Total Governmental Type Funds 41,751,484.71$ 474,289.99$ 2,185,406.58$ 40,040,368.12$ Internal Service Funds 701 & 702 1,078,833.91$ 6,811.23$ -$ 1,085,645.14$ Total All Funds 61,382,036.88$ 894,711.72$ 3,421,427.17$ 58,855,321.43$ Investment Pool & Ratio as of 9/30/2026 102 96.43%56,752,411.90 This report does not reflect financial obligations from contracts, agreements, purchases, services received, etc. TREASURER’S REPORT FUND DESCRIPTIONS 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. 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 40% to 50% of the current operating budget, for working capital to finance city operations. 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. EDA 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. Econ Dev 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. Developer Agreement 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. MN Public Safety Special Revenue Fund - Special revenue fund created for 2023 public safety aid revenue received from the State of MN and eligible expenditures. Affordable Housing Aid Special Revenue Fund - Special revenue fund created for local affordable housing aid received from the State of MN and eligible expenditures. 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. 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. This fund also includes funds transfered in from the Water Storage Fund 505 at the end of 2021 and dedicated to future water storage infrastructure. Water Storage Fund - Accounts for the water tower fee that is charged and collected on building permits. This fund balance is 100% assigned 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 September 2026 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 Police Forfeiture Fund Restricted for eligible general law enforcement activities (criminal forfeitures) or DWI related enforcement, training, and education (DWI forfeitures) Statutory obligated EDA Special Revenue Assigned for development Economic Development Econ Dev Federal Revolving Loan Fund Restricted for economic development Economic Development Developer Agreement Fund Assigned for development Contractually obligated MN Public Safety Restricted for eligible Public Safety purchases Contractually obligated Affordable Housing Aid Restricted for affordable housing expenditures Contractually obligated Capital Project Funds TIF #1-6 Restricted for tax increment Contractually obligated by tax increment agreements TIF #1-5 Restricted for tax increment Contractually obligated by tax increment agreements TIF #5-1 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 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: 5D CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Bradley Smith, Accountant PRESENTED BY: Nicole Klekner, Finance Director AGENDA ITEM: Approval of 3rd Quarter 2026 Investment Report RECOMMENDED ACTION: Approve the 2026 3rd Quarter Investment Report as presented. BACKGROUND: The purpose of this agenda item is for the Council to consider approval of the investment report for the third quarter of 2026. Staff has prepared a list of investments as of September 30, 2026. The Investment Report Summary Narrative provides some supplementary information with respect to the investments currently held and the allowable forms of investments permitted by Minnesota Statute. The investment software provides the ability to generate reports and charts by broker, security type, maturities, etc. The software also enables staff to track interest earned on an accrual basis versus a cash basis as well as changes in market value. ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve the 2026 3rd Quarter Investment Report as presented. 2. Motion and second to remove the Investment Report from the consent agenda for additional discussion. ATTACHMENTS: 1. 2026 Q3 Investment Summary Report (attach 1) 2. 2026 Q3 Investment Portfolio by Maturity Range Graph (attach 4) 3. 2026 Q3 Investment Portfolio by Security Type (attach 5) 4. 2026 Q3 Investment Portfolio by Security Type Graph (attach 3) 5. 2026 Q3 Year to Year Summary Analysis (attach 2) City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 YTM @ Cost Cost Value Days to Maturity % of Portfolio 0-1 Month 3.064 14,358,011 2 24.44% 1-3 Months 1.433 2,767,906 47 4.73% 3-6 Months 3.015 1,189,839 116 2.03% 6-9 Months 3.504 494,000 237 0.84% 9-12 Months 3.448 2,949,621 326 5.24% 1-2 Years 4.090 4,732,476 595 8.13% 2-3 Years 4.393 7,227,324 916 12.80% 3-4 Years 4.074 4,542,994 1,261 8.08% 4-5 Years 4.162 6,422,848 1,622 11.41% 5-10 Years 4.245 11,712,206 2,235 22.30% Total / Average 3.733 56,397,224 975 100.00% CITY OF PRIOR LAKE, MINNESOTA Investment Portfolio - Diversification, by Maturity Range September 30, 2026 Description City of Prior Lake - Quarterly Investment Report Description CUSIP/Ticker Settlement Date YTM @ Cost Face Amount/Shares Cost Value Book Value Market Value Maturity Date Days To Maturity Accrued Interest % of Portfolio Cash - Northland Securities Cash CASH5845 2/3/2002 0.000 1,906,059.65 1,906,059.65 1,906,059.65 1,906,059.65 N/A 1 3.24 Morgan Stanley Cash CASH5089 12/31/2010 0.000 115,073.18 115,073.18 115,073.18 115,073.18 N/A 1 0.20 Oppenheimer Cash MM9905 12/27/2011 0.000 13,914.00 13,914.00 13,914.00 13,914.00 N/A 1 0.02 Sub Total / Average Cash 0.000 2,035,046.83 2,035,046.83 2,035,046.83 2,035,046.83 1 0.00 3.46 Amerant Bank 4.65 9/8/2028 02357QCF2 9/8/2023 4.650 249,000.00 249,000.00 249,000.00 248,180.79 9/8/2028 709 697.88 0.42 AMERASIA BK FLUSHING NY 4 2/15/2029 02357PAG4 2/15/2024 4.000 248,000.00 248,000.00 248,000.00 243,134.24 2/15/2029 869 407.67 0.42 American Express Natl 3 5/4/2027 02589ACK6 4/30/2022 3.000 245,000.00 245,000.00 245,000.00 243,057.15 5/4/2027 216 3,000.41 0.42 Bank of Belleville 4 6/15/2027 06063PDD4 12/15/2022 4.000 249,000.00 249,000.00 249,000.00 248,345.13 6/15/2027 258 409.32 0.42 BMW Bk 4.75 3/17/2028 055180AW83 3/17/2023 4.750 245,000.00 245,000.00 245,000.00 245,320.95 3/17/2028 534 414.49 0.42 BNY Mellon4.5 9/7/2028 05584CJJ6 9/7/2023 4.500 244,000.00 244,000.00 244,000.00 242,501.84 9/7/2028 708 691.89 0.42 Bridgewater Bk 4.8 3/29/2028 108622NK3 3/29/2023 4.800 245,000.00 245,000.00 245,000.00 245,499.80 3/29/2028 546 32.22 0.42 Carter Bank & Trust 3.8 9/13/2029 146102BB3 9/13/2024 3.800 249,000.00 249,000.00 249,000.00 241,370.64 9/13/2029 1,079 440.70 0.42 Celtic Bank 4.6 9/19/2028 15118RJ32 9/19/2023 4.600 249,000.00 249,000.00 249,000.00 247,881.99 9/19/2028 720 345.19 0.42 Central Fed Savings 4.5 9/14/2028 15347VAC5 9/14/2023 4.500 249,000.00 249,000.00 249,000.00 247,448.73 9/14/2028 715 491.18 0.42 CIBC Bank USA 4.5 5/25/2028 12547CBN7 5/25/2023 4.500 244,000.00 244,000.00 244,000.00 243,026.44 5/25/2028 603 3,850.52 0.42 Citizens Bk Batesville Ark 3.85 2/16/2029 173477BZ2 2/16/2024 3.850 248,000.00 248,000.00 248,000.00 242,293.52 2/16/2029 870 366.22 0.42 Customers Bk 4.95 10/27/2028 23204HPE2 10/27/2023 4.950 240,000.00 240,000.00 240,000.00 240,336.00 10/27/2028 758 5,077.48 0.41 Discover Bk 4.5 7/24/2028 2546736R2 7/26/2023 4.500 244,000.00 244,000.00 244,000.00 242,738.52 7/24/2028 663 1,985.42 0.42 Farmers BK 4.85 10/17/2028 30916PAA2 10/17/2023 4.850 248,000.00 248,000.00 248,000.00 248,426.56 10/17/2028 748 428.39 0.42 First Finl Bk3.3 8/2/2027 32022RSG3 8/1/2022 3.300 245,000.00 245,000.00 245,000.00 242,753.35 8/2/2027 306 642.37 0.42 First National Bank/Dama 5 10/31/2028 32117BGJ1 10/31/2023 5.000 248,000.00 248,000.00 248,000.00 248,736.56 10/31/2028 762 985.21 0.42 First Natl Bk 4.75 10/30/2028 32110YH73 10/30/2023 4.750 245,000.00 245,000.00 245,000.00 244,487.95 10/30/2028 761 0.00 0.42 First Premier Bank 3.65 9/26/2029 33610RVT7 9/26/2024 3.650 245,000.00 245,000.00 245,000.00 236,420.10 9/26/2029 1,092 98.00 0.42 Genoa Banking Company 4.95 10/31/2028 372348DH2 10/31/2023 4.950 243,000.00 243,000.00 243,000.00 243,303.75 10/31/2028 762 5,042.08 0.41 Hershey State Banl 3.65 9/26/2028 427883AV5 9/26/2024 3.650 240,000.00 240,000.00 240,000.00 234,564.00 9/26/2028 727 96.00 0.41 JPMORGAN CHASE BK N 4.75 7/31/2031-30 46659CZ29 7/31/2026 4.750 238,000.00 238,000.00 238,000.00 232,685.46 7/31/2031 1,765 1,889.33 0.40 Legacy Bk & Tr Co 3.5 7/29/2027-22 52470QBK9 8/1/2022 3.500 245,000.00 245,000.00 245,000.00 243,157.60 7/29/2027 302 23.49 0.42 Live Oak Bkg Co 3.55 8/2/2027-23 538036WY6 8/2/2022 3.550 249,000.00 249,000.00 249,000.00 247,229.61 8/2/2027 306 678.10 0.42 Mauch Chunk Trust 4.35 2/28/2029 577234DA2 3/28/2024 4.350 249,000.00 249,000.00 249,000.00 246,009.51 2/28/2029 882 59.35 0.42 Medallion Bk Salt 4.4 7/31/2028 58404DSW2 7/31/2023 4.400 245,000.00 245,000.00 245,000.00 243,336.45 7/31/2028 670 0.00 0.42 Merrick Bk 4.85 11/6/2029 59013KXW1 11/6/2023 4.850 245,000.00 245,000.00 245,000.00 244,448.75 11/6/2029 1,133 781.32 0.42 Morgan Stanley Bank Step 11/28/2027 61765QP52 9/2/2021 1.004 249,000.00 249,000.00 249,000.00 239,351.25 11/28/2027 424 225.12 0.42 MORGAN STANLEY PRIVATE BK 5.05 11/8/2028 61768EE82 11/8/2023 5.050 243,000.00 243,000.00 243,000.00 243,777.60 11/8/2028 770 4,874.98 0.41 NORTHEAST BK LEWISTON 3.7 9/23/2027 66405SFA3 9/23/2024 3.700 245,000.00 245,000.00 245,000.00 243,189.45 9/23/2027 358 173.85 0.42 Old Dominion Natl Bk 4 1/29/2029 679585CL1 1/29/2024 4.000 249,000.00 249,000.00 249,000.00 244,219.20 1/29/2029 852 0.00 0.42 Ponce De Leon Fed Bk 3.5 9/15/2027 732329BD8 9/15/2022 3.500 245,000.00 245,000.00 245,000.00 242,799.90 9/15/2027 350 352.40 0.42 SALLIE MAE BK SALT LAKE CITY 3.9 8/13/2030 795451EB5 8/13/2025 3.900 245,000.00 245,000.00 245,000.00 235,574.85 8/13/2030 1,413 1,256.55 0.42 Schuyler Svgs Bk 4.35 7/27/2028 80832MAA5 7/27/2023 4.350 244,000.00 244,000.00 244,000.00 242,035.80 7/27/2028 666 1,890.16 0.42 Southern First Bank NA 4.85 10/17/2028 84287PJB9 11/7/2023 4.850 244,000.00 244,000.00 244,000.00 244,253.76 10/17/2028 748 5,382.04 0.42 Third Fed Sav & Ln 3.3 8/19/2027 88413QDN5 8/19/2022 3.300 245,000.00 245,000.00 245,000.00 242,481.40 8/19/2027 323 930.33 0.42 UBS Bk USA 4.4 7/26/2028 90355GEX0 7/26/2023 4.400 245,000.00 245,000.00 245,000.00 243,368.30 7/26/2028 665 118.14 0.42 Uinta Bk Mtn 4.4 3/22/2028 903572FT7 3/22/2023 4.400 245,000.00 245,000.00 245,000.00 244,122.90 3/22/2028 539 236.27 0.42 Univest Bank & Trust 4.5 6/21/2028 91527PCD7 6/21/2023 4.500 249,000.00 249,000.00 249,000.00 247,986.57 6/21/2028 630 276.29 0.42 Valley Central 4 4/28/2028 91944RAZ1 4/28/2023 4.000 249,000.00 249,000.00 249,000.00 246,392.97 4/28/2028 576 54.58 0.42 Winter Hill Bank 3.5 8/26/2027-23 975875BH7 8/26/2022 3.500 245,000.00 245,000.00 245,000.00 242,949.35 8/26/2027 330 93.97 0.42 Sub Total / Average Certificate Of Deposit 4.154 10,075,000.00 10,075,000.00 10,075,000.00 9,979,198.69 685 44,798.91 17.14 FAMC 2 10/27/2031 31422XPG1 9/5/2025 3.800 600,000.00 541,299.65 551,506.13 512,106.00 10/27/2031 1,853 5,100.00 1.02 FAMC 4.17 5/24/2029 31422XYY2 1/19/2024 4.580 325,000.00 318,724.25 321,891.06 315,932.50 5/24/2029 967 4,743.38 0.55 Sub Total / Average FAMC Bond 4.074 925,000.00 860,023.90 873,397.19 828,038.50 1,542 9,843.38 1.57 FFCB 0.72 10/27/2026-21 3133EMES7 6/18/2021 1.000 500,000.00 492,715.00 499,899.49 498,745.00 10/27/2026 27 1,530.00 0.85 FFCB 0.74 11/24/2026-21 3133EMHC9 4/14/2021 1.053 450,000.00 442,350.00 449,794.76 447,651.00 11/24/2026 55 1,165.50 0.77 FFCB 1.26 10/15/2030-24 3133EMDG4 9/13/2024 3.700 500,000.00 434,025.00 456,194.74 427,090.00 10/15/2030 1,476 2,887.50 0.85 FFCB 1.45 6/11/2030-24 3133ELH31 9/13/2024 3.620 500,000.00 444,170.00 464,057.94 438,615.00 6/11/2030 1,350 2,195.14 0.85 FFCB 1.48 9/16/2033-26 3133EL7L2 7/17/2026 4.400 350,000.00 287,773.50 289,556.15 271,645.50 9/16/2033 2,543 201.44 0.60 FFCB 1.94 4/19/2032-26 3133EMT69 4/24/2026 4.122 500,000.00 442,650.00 446,819.48 419,785.00 4/19/2032 2,028 4,338.06 0.85 FFCB 1.94 6/30/2031-25 3133EMN24 5/5/2025 4.070 425,000.00 376,154.75 387,306.34 367,650.50 6/30/2031 1,734 2,061.25 0.72 FFCB 2 9/27/2033-26 3133EM6J6 4/24/2026 4.267 1,000,000.00 857,000.00 865,380.76 803,910.00 9/27/2033 2,554 166.67 1.70 FFCB 2.05 12/23/2031-21 3133ENJK7 7/24/2026 4.475 1,000,000.00 884,500.00 888,470.68 856,560.00 12/23/2031 1,910 5,560.27 1.70 FFCB 2.14 6/28/2033-26 3133EMN32 4/23/2026 4.150 700,000.00 613,382.00 618,665.60 572,166.00 6/28/2033 2,463 3,828.22 1.19 FFCB 2.87 2/25/2030 3133ENPL8 9/9/2024 3.685 1,000,000.00 960,000.00 975,057.64 932,430.00 2/25/2030 1,244 2,790.28 1.70 FFCB 3.05 5/18/2029 3133ENXB1 1/19/2024 4.030 325,000.00 309,845.25 317,516.08 309,617.75 5/18/2029 961 3,634.58 0.55 FFCB 3.3 3/23/2032-26 3133ENSP6 4/23/2026 4.070 1,000,000.00 959,850.00 962,822.70 906,590.00 3/23/2032 2,001 641.67 1.70 FFCB 3.3 3/23/2032-26 3133ENSP6 7/24/2026 4.450 290,000.00 273,452.60 273,996.45 262,911.10 3/23/2032 2,001 186.08 0.49 FFCB 3.8 4/5/2032-26 3133ENTX8 8/10/2026 4.400 250,000.00 242,552.50 242,736.43 229,580.00 4/5/2032 2,014 4,618.06 0.43 FFCB 4.65 12/16/2030-27 3133EWTH3 7/24/2026 4.650 1,000,000.00 1,000,000.00 1,000,000.00 978,120.00 12/16/2030 1,538 13,504.11 1.70 Sub Total / Average FFCB Bond 3.853 9,790,000.00 9,020,420.60 9,138,275.24 8,723,066.85 1,681 49,308.83 16.66 FHLB 1 12/30/2026-21 3130ANY87 10/20/2021 1.205 500,000.00 494,850.00 499,752.95 496,070.00 12/30/2026 91 1,250.00 0.85 FHLB 1.25 11/10/2026-22 3130APLR4 11/10/2021 1.250 450,000.00 450,000.00 450,000.00 448,519.50 11/10/2026 41 2,187.50 0.77 FHLB 1.35 2/18/2031-24 3130AKZS8 9/13/2024 3.770 500,000.00 430,995.00 452,939.12 423,495.00 2/18/2031 1,602 225.00 0.85 FHLB 1.48 11/19/2032 3130AKG83 10/2/2025 3.920 430,000.00 365,272.10 374,291.77 343,922.60 11/19/2032 2,242 2,315.79 0.73 FHLB 1.875 12/10/2031-25 3130ALJN5 12/30/2024 4.550 500,000.00 421,115.00 440,991.78 423,420.00 12/10/2031 1,897 520.83 0.85 FHLB 2.375 8/15/2029 3130AGVG7 2/12/2024 4.310 270,000.00 244,620.00 256,748.38 250,119.90 8/15/2029 1,050 801.56 0.46 FHLB 3.375 9/10/2032 3130AT4C8 4/24/2026 4.078 1,000,000.00 960,800.00 963,473.87 909,960.00 9/10/2032 2,172 1,875.00 1.70 FHLB 4.25 9/10/2032 3130ATHY6 8/22/2025 4.090 500,000.00 504,847.29 504,087.08 476,745.00 9/10/2032 2,172 1,180.56 0.85 As of 9/30/2026 City of Prior Lake Portfolio Holdings Investment Portfolio - by Security Type Cash Certificate Of Deposit FAMC Bond FFCB Bond FHLB Bond FHLB Step 9/30/2031-25 3130AP6G5 8/15/2025 4.103 500,000.00 468,050.00 473,920.12 453,930.00 9/30/2031 1,826 0.00 0.85 FHLN 5159508 1.25 10/16/2026-21 3130ALW83 4/16/2021 1.250 216,666.67 216,666.67 216,666.67 216,400.17 10/16/2026 16 1,233.80 0.37 Sub Total / Average FHLB Bond 3.415 4,866,666.67 4,557,216.06 4,632,871.74 4,442,582.17 1,487 11,590.04 8.28 FHLMC 1.3 9/30/2033-26 3134GWVK9 4/24/2026 4.200 250,000.00 204,115.00 206,801.20 190,495.00 9/30/2033 2,557 0.00 0.43 FHLMC 1.31 8/17/2033-26 3134GWPF7 4/23/2026 4.160 518,000.00 425,687.22 431,212.86 397,373.34 8/17/2033 2,513 810.53 0.88 FHLMC 1.4 7/28/2032-26 3134GWGE0 4/23/2026 4.100 100,000.00 85,215.00 86,248.92 80,462.00 7/28/2032 2,128 241.11 0.17 FHLMC 1.4 8/17/2033-26 3134GWNW2 4/23/2026 4.160 480,000.00 397,156.80 402,115.61 370,622.40 8/17/2033 2,513 802.67 0.82 Sub Total / Average FHLMC Bond 4.163 1,348,000.00 1,112,174.02 1,126,378.59 1,038,952.74 2,493 1,854.31 2.29 FNMA 1.5 12/18/2031-25 3135GAA50 5/5/2025 4.180 200,000.00 169,280.00 175,797.52 165,354.00 12/18/2031 1,905 850.00 0.34 Sub Total / Average FNMA Bond 4.180 200,000.00 169,280.00 175,797.52 165,354.00 1,905 850.00 0.34 League of Minnesota Cities - 4M Fund LGIP LGIP5101M 11/30/2010 3.703 92,979.50 92,979.50 92,979.50 92,979.50 N/A 1 0.16 League of Minnesota Cities - 4M Plus Fund LGIP LGIP5101MP 11/30/2010 3.727 10,040,564.22 10,040,564.22 10,040,564.22 10,040,564.22 N/A 1 17.09 League of Minnesota Cities LGIP LGIP5213M 7/29/2026 3.703 1,480,038.76 1,480,038.76 1,480,038.76 1,480,038.76 N/A 1 2.52 Sub Total / Average Local Government Investment Pool 3.724 11,613,582.48 11,613,582.48 11,613,582.48 11,613,582.48 1 0.00 19.76 AUSTIN TEX CMNTY COLLEGE 1.78 2/1/2030 052404QL7 9/11/2024 3.700 500,000.00 453,475.00 471,172.93 446,905.00 2/1/2030 1,220 1,458.61 0.85 AUSTIN TEX CMNTY COLLEGE DIST TX 1.921 8/1/2031-30 052403HG0 8/22/2025 4.000 545,000.00 485,595.00 496,654.73 465,130.25 8/1/2031 1,766 1,715.83 0.93 BROCKTON MASS TAXABLE GO PENSION BDS 2.558 11/1/20 111746JF1 8/14/2025 4.000 500,000.00 460,660.00 467,800.12 431,375.00 11/1/2031 1,858 5,293.64 0.85 Cabot-Las Positas 1.287 8/1/2027 15722TJS1 4/28/2022 3.500 550,000.00 491,991.50 540,789.90 535,216.00 8/1/2027 305 1,160.09 0.94 California St 2.5 10/1/2029 13063DRE0 8/12/2024 4.100 500,000.00 463,270.00 478,521.96 461,185.00 10/1/2029 1,097 6,215.28 0.85 California St 4.35 11/1/2032 13063ESC1 11/6/2025 4.030 215,000.00 219,151.65 218,618.05 200,575.65 11/1/2032 2,224 3,870.90 0.37 California St 4.875 9/1/2030 13063EHU3 7/18/2025 4.101 230,000.00 238,144.30 236,233.37 226,014.10 9/1/2030 1,432 903.23 0.39 Cecil Cnty MD 1.05 11/1/2026 1498433N2 9/23/2021 0.970 500,000.00 501,985.00 500,034.06 498,430.00 11/1/2026 32 2,172.92 0.85 Colorado HSG & FIN 6 11/1/2029 19648G-MF-6 9/11/2024 4.253 1,000,000.00 1,079,960.00 1,048,052.68 1,018,730.00 11/1/2029 1,128 24,833.33 1.70 COLUMBUS MINN 1.8 2/1/2033-28 199339FF4 4/23/2026 4.129 325,000.00 280,670.00 283,534.62 261,261.00 2/1/2033 2,316 958.75 0.55 CONNECTICUT ST 4.79 3/15/2031 20772KZM4 5/7/2025 4.382 500,000.00 510,460.00 507,959.97 486,060.00 3/15/2031 1,627 997.92 0.85 COOK CNTY MINN 1.85 2/1/2033-27 216147NT1 4/23/2026 4.129 320,000.00 277,286.40 280,046.57 256,300.80 2/1/2033 2,316 970.22 0.54 Enfield Conn Taxable 1.39 8/1/2027 292749UK2 4/6/2022 3.000 335,000.00 308,658.95 330,865.15 325,643.45 8/1/2027 305 763.15 0.57 Franklin Twp 1.623 2/1/2029 355064KL9 10/4/2023 5.350 250,000.00 207,310.00 231,253.24 230,317.50 2/1/2029 855 664.98 0.43 Goose Creek Tex 4.5 2/15/2027 382604Z25 11/3/2022 4.700 500,000.00 496,125.00 499,658.31 499,495.00 2/15/2027 138 2,812.50 0.85 Hawaii St 1.892 10/1/2029 419792B47 8/14/2024 3.901 435,000.00 394,710.30 411,415.26 394,684.20 10/1/2029 1,097 4,092.24 0.74 Hawaii St GO Ref 2.802 10/1/2027-26 419792KL9 7/28/2022 3.350 100,000.00 97,413.00 99,499.29 98,121.00 10/1/2027 366 1,393.22 0.17 KENNEBUNKPORT ME 5 10/1/2029 489299BK2 10/1/2024 3.700 295,000.00 312,357.80 305,427.99 292,876.00 10/1/2029 1,097 7,334.03 0.50 Mason & Kitsap Cntys 1.583 12/1/2028 575181HB1 5/19/2023 4.150 445,000.00 389,032.35 423,061.12 411,727.35 12/1/2028 793 2,328.55 0.76 Massachusetts St 0.986 11/1/2026 57582RK96 6/30/2021 1.000 500,000.00 499,635.00 499,994.01 498,470.00 11/1/2026 32 2,040.47 0.85 Milwaukee Cnty Wis 2 12/1/2026 6022453V2 11/23/2021 1.300 500,000.00 516,960.00 500,573.35 497,370.00 12/1/2026 62 3,305.56 0.85 Minnesota St 7 11/1/2028 604146GK0 11/8/2023 5.251 250,000.00 268,952.50 257,945.47 259,312.50 11/1/2028 763 7,243.06 0.43 New York NY 1.92 11/1/2029 64971XUUO 9/25/2023 5.150 275,000.00 228,998.00 251,720.39 249,645.00 11/1/2029 1,128 2,185.33 0.47 New York NY 2.36 8/1/2031-30 64966QFX3 7/23/2025 4.250 400,000.00 360,196.00 368,048.24 347,672.00 8/1/2031 1,766 1,547.11 0.68 New York NY 3.7 8/1/2029-25 64966LYZ8 11/24/2023 5.100 250,000.00 232,897.50 241,469.34 239,480.00 8/1/2029 1,036 1,515.97 0.43 New York NY City 4.2 11/1/2030 64971QRB1 5/5/2025 4.350 500,000.00 496,370.00 497,298.31 475,760.00 11/1/2030 1,493 8,691.67 0.85 NEW YORK NY CITY 4.87 5/31/2031 64972JGZ5 8/12/2025 4.120 500,000.00 519,160.00 515,414.84 491,210.00 5/31/2031 1,704 10,078.19 0.85 New York State TFA 4.2 11/1/2028-23 64971Q7N7 9/7/2023 4.850 250,000.00 242,657.50 247,023.21 245,852.50 11/1/2028 763 4,345.83 0.43 NEWARK NJ GO BDS 2019 4.3 11/1/2030 650367PB5 8/22/2025 4.091 600,000.00 605,772.00 604,542.75 577,122.00 11/1/2030 1,493 10,678.33 1.02 PA HSG FIN AGY 4.993 10/1/2033 70879VBN1 8/19/2026 5.000 565,000.00 564,728.80 564,733.18 544,106.30 10/1/2033 2,558 3,212.86 0.96 SAN ANGELO TEX INDPT 1.815 2/15/2034-30 796116TR2 7/24/2026 4.750 785,000.00 640,104.70 643,670.71 606,726.50 2/15/2034 2,695 1,780.97 1.34 San Bernardino Calif 2.332 8/1/2032-30 796711H85 10/10/2025 4.206 300,000.00 267,000.00 271,710.49 252,426.00 8/1/2032 2,132 1,146.57 0.51 SHAKOPEE MINN INDPT SCH DIST NO 720 1.785 2/1/2033 819190XB0 4/23/2026 4.129 425,000.00 366,656.00 370,426.21 338,822.75 2/1/2033 2,316 1,243.30 0.72 SIOUX FALLS S D 3.65 11/15/2030-28 829594ML1 9/18/2024 3.720 500,000.00 498,070.00 498,706.75 467,080.00 11/15/2030 1,507 6,843.75 0.85 Springboro Ohio 5 12/1/2027 85023MAF2 7/12/2022 4.002 245,000.00 256,755.10 247,550.52 245,009.80 12/1/2027 427 4,049.31 0.42 St Louis Park Minn 4.5 2/1/2027 791740V34 9/7/2022 3.345 190,000.00 198,863.50 190,683.50 189,760.60 2/1/2027 124 1,401.25 0.32 STATE BK INDIA NEW YORK NY 4 8/21/2030 856288CM5 8/21/2025 4.000 245,000.00 245,000.00 245,000.00 236,368.65 8/21/2030 1,421 1,061.67 0.42 TARRANT REGL WTR DIST TEX 1.45 9/1/2029 876448EB3 9/11/2024 3.650 500,000.00 450,390.00 470,851.39 449,970.00 9/1/2029 1,067 584.03 0.85 Toledo Ohio City Sch 5 12/1/2027 889294RT3 9/28/2022 4.520 100,000.00 102,186.00 100,493.87 100,150.00 12/1/2027 427 1,652.78 0.17 Waukesha Wis 1.2 10/1/2027 943080UZ2 9/1/2022 3.660 375,000.00 332,557.50 366,630.41 362,152.50 10/1/2027 366 2,237.50 0.64 Wicomico Cnty MD 2 12/1/2026 967546BA9 5/13/2022 3.450 380,000.00 356,975.80 379,141.61 378,259.60 12/1/2026 62 2,512.22 0.65 Winthrop Minn 2 2/1/2029-28 976367PN6 11/24/2023 5.100 225,000.00 193,556.25 210,820.46 208,633.50 2/1/2029 855 737.50 0.38 YSLETA TEX INDPT SCH 0 8/15/2030 98816PDU3 4/14/2025 4.447 510,000.00 403,246.80 432,495.75 415,002.30 8/15/2030 1,415 0.00 0.87 Sub Total / Average Municipal Bond 3.918 17,415,000.00 16,515,945.20 16,807,544.08 16,216,409.80 1,224 150,034.62 29.63 T-Note 0.625 11/30/2027 91282CAY7 5/5/2022 3.040 500,000.00 438,535.00 487,133.13 477,150.00 11/30/2027 426 1,041.67 0.85 Sub Total / Average Treasury Note 3.040 500,000.00 438,535.00 487,133.13 477,150.00 426 1,041.67 0.85 Total / Average 3.733 58,768,295.98 56,397,224.09 56,965,026.80 55,519,382.06 975 269,321.76 100 FHLMC Bond FNMA Bond Local Government Investment Pool Municipal Bond Treasury Note YTM @ Cost Cost Value Days to Maturity % of Portfolio Cash - 2,035,047 1 3.46% Certificate of Deposit 4.154 10,075,000 685 17.15% FAMC Bond 4.074 860,024 1,542 1.58% FFCB Bond 3.853 9,020,421 1,681 16.66% FHLB Bond 3.415 4,557,216 1,487 8.28% FHLMC Bond 4.163 1,112,174 2,493 2.29% FNMA Bond 4.180 169,280 1,905 0.34% LGIP 3.724 11,613,582 1 19.76% Municipal Bond 3.918 16,515,945 1,224 29.63% Treasury Note 3.040 438,535 426 0.85% Total / Average 3.733 56,397,224 975 100.00% CITY OF PRIOR LAKE, MINNESOTA Investment Portfolio - Diversification, by Security Type September 30, 2026 Description City of Prior Lake - Quarterly Investment Report 4646 Dakota Street SE Prior Lake, MN 55372 INVESTMENT REPORT SUMMARY NARRATIVE The attached “Investment Portfolio – by Security Type” identifies the various types of investments and the brokers/banks the City of Prior Lake uses for investment purposes. As of September 30, 2026, the cost value of the investment portfolio is $56,397,224. This decreased $2.3M from June 30, 2026. The ‘weighted average yield to maturity at cost’ of the investment portfolio is currently 3.72%, which is an increase from 3.41% as of June 30. The yield will fluctuate due in part to the balances that are in the short-term money market accounts. At the end of September, the balance in the 4M money market was $11.6M. rd The following table shows the treasury rates for the 3 quarter of 2026 compared to the previous two years. Short-term yields in 2026 are comparable or higher than a year prior, while lower or comparable to two years prior. Short-term securities are necessary to meet cash flow needs for payments to vendors (including construction contracts) and payroll. Mid-to-long-term yields in 2026 are higher compared to both of the two years prior. Interest rates and bond prices exhibit an inverse relationship: when interest rates increase, bond prices decrease, and when rates decrease, bond prices increase. This occurs because newly issued bonds offer higher yields as interest rates rise, making existing lower-yield bonds less attractive and reducing their market price. Conversely, when interest rates fall, existing higher-yield bonds become more ap- pealing, increasing prices. As of September 30, 2026, the cost value of the portfolio is greater than the market value of the investments by $878K. The change in the fair value of the securities is adjusted against interest earnings in each of the funds. This is a paper loss for the third quarter of 2026; no actual gain/loss is realized because the City holds the securities until maturity. -9/30/268/31/267/31/26 US Treasury Yield Curve 10 yr 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The chart below shows how rates offered by financial institutions increased significantly for all terms during September of 2026, after holding steady during August. As the attached chart titled Portfolio Holdings Distribution by Maturity Range indicates, approximately 24% or $14.4M matures within 1 month. Of that total, $11.6M is in the 4M investment pool. These short- term securities are necessary to meet cash flow needs for payments to vendors (including construction contracts) and payroll. These funds will be invested as cash flow needs allow and when the appropriate security (type, rate, and maturity) becomes available. Staff continues to look for opportunities to invest funds for our long-term cash needs, primarily for annual debt service and future capital projects. The City’s investment portfolio amount is a pool of funds identified on the monthly Treasurer’s Report. As shown on the September Treasurer’s Report, the book value of cash and investments, is $58.9M. Of this balance, $56.8M is investments and $2.1M is cash. Because City funds are pooled for invest- ment purposes, interest is allocated to each fund monthly and is based upon each individual fund’s proportionate share of the total amount. Overall, the total investment pool does not represent excess reserves but rather available financial resources. In most instances, these funds were established and restricted for specific and designated purposes by either Minnesota Statutes or City Code to accomplish the goals and objectives of the City. The constraints for each of the funds are noted on the Treasurer’s Report. Investments for local governments are restricted to only those permitted by Minnesota Statutes. Per the City of Prior Lake Investment Policy, the City has chosen to limit its allowable investments as follows: 1. Bonds, notes certificates of indebtedness, treasury bills or other securities issued by the United States of America, its agencies and allowable instrumentalities; 2. Interest bearing checking and savings accounts, or any other investments constitut- ing direct obligations of any bank; 3. Certificates of deposit at state and federally chartered institutions that are limited to the amount of coverage provided by the Federal Deposit Insurance Corporation; 4. Money market accounts that are invested in above referenced government securities; 2 5. State and local securities which have at the time of investment one of the three high- est credit ratings by a nationally recognized rating agency; 6. Investments may be made only in those savings banks or savings and loan associa- tions the shares, or investment certificates of which are insured by the Federal De- posit Insurance Corporation or the National Credit Union Association; 7. Investment products that are considered as derivatives are specifically excluded from approved investments. The breakdown of all security types held by the City is shown graphically in the attached document titled Investment Portfolio – Diversification, by Security Type. The investment policy also requires that all investment maturities shall not extend beyond ten (10) years with no more than 20% maturing beyond five (5) years. 3 Change from one 9/30/2025 12/31/2025 3/31/2026 6/30/2026 9/30/2026 year prior Market Value 14,068,240 16,545,469 16,401,571 18,069,394 13,648,629 (419,611) 1 1 1 1 1 0 3.66% 2.48% 1.76% 2.82% 3.17%-0.49% Fixed Income Assets 42,228,163 38,486,323 35,949,634 40,600,483 42,748,595 520,432 42,444,924 38,923,497 36,280,986 40,669,461 41,870,753 (574,172) 1,030 1,070 1,049 1,212 1,270 240 992 1,036 1,014 1,141 1,142 150 3.47% 3.61% 3.62% 3.68% 3.89%0.42% Total Portfolio Value 56,296,403 55,031,792 52,351,205 58,669,876 56,397,224 100,821 56,513,164 55,468,966 52,682,557 58,738,855 55,519,382 (993,782) 281,553 226,552 241,991 234,248 269,322 (12,231) 216,761 437,174 331,352 68,978 -877,842 (1,094,603) 778 756 729 852 975 197 749 732 704 802 877 128 3.52% 3.27% 3.04% 3.41% 3.72% 0.20% BENCHMARK 90 Day T-Bill 4.02% 3.67% 3.70% 3.87% 4.20% 0.18% 3.83%3.59%3.72%4.01%4.33%0.50% 3.68%3.48%3.68%3.98%4.54%0.86% Weighted Average Yield to Maturity @ Cost 6 Month Treasury 1 Year Treasury Cost Value Market Value Accrued Interest Unrealized Gain / Loss WAM (1) in Days WAM / Callable (1) in Days Weighted Average Yield to Maturity @ Cost CITY OF PRIOR LAKE, MINNESOTA Quarterly Investment Report September 30, 2026 Local Government Investment Pools / Money Market Quarterly WAM (1) in Days Weighted Average Yield to Maturity Cost Value Market Value WAM (1) in Days WAM / Callable (1) in Days City of Prior Lake - Quarterly Investment Report ITEM: 5E CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Christine Watson, Public Works Supervisor – Administration Phil Ryan, Public Works Supervisor – Utilities PRESENTED BY: Nick Monserud, Public Works Director/City Engineer AGENDA ITEM: Resolution Approving a Work Order for Well 10 Design and Construction Administration (2027-03) RECOMMENDED ACTION: Adopt a resolution approving a work order for Well 10 design and construction administration. BACKGROUND: The City currently operates seven municipal wells for the production of potable water for the Prior Lake community. One of those wells - Well 6 - pumps directly to the Shakopee Mdewakanton Sioux Community (SMSC) water treatment plant where it is combined with SMSC water and made available for distribution to both the SMSC and Prior Lake communities. Prior Lake purchases roughly 300 million gallons of water from the SMSC treatment plant each year to supplement the production from our own treatment plant. The average water demand in the City of Prior Lake over the past five years is 900 million gallons per year. In 2023, water demand exceeded one billion gallons for the first and only time to date. Another municipal well (Well 10) is proposed to be constructed in Prior Lake to accommodate the increased demand that future development will bring as well as maximize the production capacity of the City’s existing water treatment plant located near the intersection of Itasca Avenue SE and Summer Street SE. This new well will be located just ½ mile to the south within the Wilderness Ponds Park property on the southwest corner of Blind Lake Trl SE and Fish Point Rd SE, near Fire Station 1. The need for Well 10 is recommended in both the City’s Comprehensive Plan as well as the Water System Study recently completed by Bolton & Menk, Inc. for the Orderly Annexation Area. AE2S, a member of the City’s consultant pool, has provided a proposal in the amount of $398,300 to provide complete design, bidding administration and construction administration services related to the construction of Well 10 and the associated well house. Full details of their proposal are included in the work order attached herein. Staff recommend approving this work order so the preliminary data-gathering and design work for Well 10 can begin as soon as possible to accommodate the construction of the well and well house in 2028. FINANCIAL IMPACT: The City’s Trunk Fund includes $2,000,000 in 2028 to accommodate the construction of Well 10 and the associated well house. The $398,300 cost of the work order is included in this $2,000,000 estimated project cost. Once AE2S has completed the design phase of the project, an updated project cost will be provided. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5E Page | 2 ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a resolution approving a work order for Well 10 design and construction administration. 2. Motion and second to remove this item from the consent agenda for further discussion. ATTACHMENTS: 1. Resolution 2. Work Order with Proposal 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26- A RESOLUTION APPROVING A WORK ORDER FOR WELL 10 DESIGN AND CONSTRUCTION ADMINISTRATION (2027-03) Motion By: Second By: WHEREAS, the City of Prior Lake currently operates seven municipal wells for the production of potable water for the Prior Lake community; and WHEREAS, one of those wells (Well 6) pumps directly to the Shakopee Mdewakanton Sioux Community (SMSC) treatment plant where it is combined with SMSC water and made available for distribution to both the SMSC and Prior Lake communities; and WHEREAS, Prior Lake purchases roughly 300 million gallons of water from the SMSC treatment plant each year to supplement the production from our own treatment plant, with average annual demand in the city currently at 900 million gallons per year; and WHEREAS, another municpal well (Well 10) is proposed to be constructed in Prior Lake to accommodate the increased demand that future development will bring to the City and to maximize the production capacity of the City’s existing water treatment plant; and WHEREAS, AE2S, a member of the City’s consultant pool, has provided a proposal in the amount of $398,300 to provide complete design, bidding administration and construction administration services related to the construction of Well 10 and the associated well house; and WHEREAS, staff recommend approving this work order so the preliminary data-gathering and design work for Well 10 can begin as soon as possible to accommodate construction of the well and well house in 2028. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council approves a work order with with AE2S in the amount of $398,300 for the Well 10 design and construction administration. 3. The cost of this work order will be paid from the Trunk Water Fund. th Passed and adopted by the Prior Lake City Council this 27 day of October 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager C:\\Users\\hsimon\\AppData\\Local\\Temp\\Report Attachment - 20261027 Approve WO - Well 10 - RESO_679001\\Report Attachment - 20261027 Approve WO - Well 10 - RESO.docx 2 Public Works Consultant Pool Work Order Well 10 (2027-03) AE2S This work order (“Work Order”) is issued on this 27th day of October, 2026 by the City of Prior Lake (“City”) pursuant to the Public Works Consultant Pool – Master Agreement dated May 8, 2020 and as amended March 17, 2025 (“Contract”) between the City and Advanced Engineering and Environmental Services, LLC (AE2S) (“Consultant”). Based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the City and Consultant agree as follows: 1.Scope of Work Order. Consultant agrees to provide, perform and complete all the services requested by the City in this Work Order and attached Exhibit 1 (“Work”), which Work shall be subject to the terms and conditions of this Work Order and the Contract. 2.Term of Work Order. All Work requested by this Work Order shall be completed by December 31, 2028. 3.Compensation for Work Order. City agrees to pay the Consultant an amount not to exceed $398,300 as full and complete payment for the Work requested by this Work Order. 4.Consultant Representative. Consultant has designated Douglas Klamerus, PE to manage the Work Order subject to the supervision of Consultant’s representative. ISSUED BY CITY OF PRIOR LAKE ___________________________________ Mayor ___________________________________ City Manager RECEIVED AND ACCEPTED BY AE2S _____________________________________ Signature ____________________________________ Title Exhibit 1 – Scope of Work September 21, 2026 Mr. Nick Monserud, PE Public Works Director / City Engineer City of Prior Lake 17073 Adelmann St. SE Prior Lake, MN 55372 Re: Proposal for Well and Wellhouse No. 10 City of Prior Lake, MN Dear Mr. Monserud: Thank you for the opportunity to submit this proposal to provide professional engineering services related to the new Well and Wellhouse No. 10. Consultant is recommending the following general scope of services and associated fee proposal based upon the information provided to AE2S during our site visit on June 12, 2026. Project Understanding The City of Prior Lake (City) owns and operates seven (7) municipal water supply wells, with one of those wells (Well No. 6) only providing water during emergency peaks. The City has requested that AE2S provide scope for the design of a new municipal water supply Well No. 10 to serve continued growth in the City. The proposed well will be connected to existing raw water transmission lines and be routed to the water treatment plant. The proposed well location is in a neighborhood park at the intersection of Fish Pointe Rd SE and Blind Lake Trail SE. An observation well is located adjacent to the site and provides an understanding of the local geology and a history of static groundwater levels. The Jordan Aquifer will be investigated as the preferred source by the City. A design pumping rate of 1,200 gpm is desired by the City. Data Request Items Phil Ryan, Public Works Supervisor- Utilities provided follow up information to the June meeting with a Water System Study for the Orderly Annexation area which was completed by another consultant. In addition, water levels for the observation well at the proposed site of Well No. 10 were also provided. It is assumed that City staff will provide additional data requested by AE2S during the project in a timely manner to meet the project’s timeline. EXHIBIT 1 City of Prior Lake Well & Wellhouse No 10 Proposal Page 2 of 8 Project Approach – New Well and Wellhouse No. 10 Well No. 10 will include scope for the design, bidding and construction administration of the new well. A second phase of the project includes scope for design, bidding and construction administration for the new wellhouse. Specific features of the new wellhouse include: - Architectural style of the building will be a maintenance-free exterior with metal roof and gutters - Natural gas generator - Submersible well - Fiber will be connected to the site, and security features will include a scan reader and security cameras - Additional design details will be discussed at a pre-design kickoff meeting In addition, AE2S has discussed backflow prevention requirements included in the Well Code with Minnesota Department of Health staff to verify what will be required at existing wells to bring the water system into compliance with the well code. Per David Weum with MDH, all wells that are connected to a common raw water transmission line shall have backflow at the wellhead. However, MDH appears to be open to phasing-in these requirements over the course of a couple of years. Communication with MDH is ongoing. For the purposes of this proposal, backflow prevention has been included in the design phase of the wellhouse at all wells connected to the raw transmission line. If MDH does formally allow these improvements to be phased over time, the scope of work can be decreased under this contract. AE2S’ scope does not include budget to design for control of the new well. It is understood that the City’s integrator will design the controls, and coordinate with the Contractor and the City for proper start-up and integration services. Scope of Work Phase One – Well Drilling - Design Phase Services: o Coordinate site survey requirements with Owner. Conduct site survey park parcel. o Discuss the project with the Minnesota Department of Health (MDH) and the Minnesota Department of Natural Resources (DNR). o Meet at the well site with Minnesota Department of Health (MDH) personnel for preliminary approval of well set-back distances. City of Prior Lake Well & Wellhouse No 10 Proposal Page 3 of 8 o Prepare a preliminary well construction application for approval and submit it to the DNR. o Meet with the DNR to discuss the project. (1 meeting – 1 hour) o Prepare a preliminary set of drawings. o Prepare a preliminary list of specifications for the project. Specification format will meet the approval of the City and will include Prior Lake standard general conditions and contract forms. o Prepare preliminary opinion of probable construction cost. o Review preliminary documents with City personnel and make changes as required. o Prepare final construction drawings and specifications based upon draft comments from the City. o Update the preliminary opinion of probable cost to reflect any modifications made during final design. o Review final construction documents with City personnel and make changes as required. o Submit two (2) copies of the final bidding documents and wellhead protection information to the MDH for review. Respond to questions and comments from the MDH and receive approval for the drawings and specifications. o Submit two (2) copies of the final bidding documents to the City and one copy in electronic format (PDF). - Bidding Phase Services: o Print construction drawings and specifications (Bidding Documents). o Distribute Bidding Documents to prospective bidders. o Maintain plan holders list. o Respond to bidder questions. o Issue addenda to bidding documents, if required. o Attend bid opening and prepare bid tabulation sheets. o Evaluate bids and prepare recommendation letter. - Construction Phase Services: o Issue contract document clarification as required. o Provide construction observation on behalf of the City. o Organize, coordinate, lead, and attend preconstruction conference. Provide and distribute meeting minutes. o Assist the City in procuring testing services as defined in the Contract Documents. o Review Contractor submittals (shop drawings) for products and equipment. o Process contract change order requests, if required. o Review contractor-submitted construction progress schedules. o Process contractors pay requests. o Provide periodic construction observation by design team members during construction of the well, test pumping operations, alignment test, well video, and substantial and final completion inspections, for a total of 40 hours. City of Prior Lake Well & Wellhouse No 10 Proposal Page 4 of 8 o Provide Substantial Completion inspection and punch list for Contractor and issue Certificate of Substantial Completion when appropriate. o Provide Final Completion inspection for Contractor and issue Certificate of Final Completion when appropriate. o Review final submittal from Contractor with respect to conformance with the contract documents. o Process final pay requests and project close-outs. o Provide record drawings based upon Contractor’s mark-up and field observation. Phase Two – Wellhouse Design and Construction - Design Phase Services: o Preliminary Design: ▪ Coordinate and conduct a project team kick-off meeting attended by City and engineer. ▪ Prepare site plans based on City’s drawings and GIS data and site survey. ▪ Request soil borings for wellhouse and transmission main sites. ▪ Civil preliminary design will consist of: • Initial utility coordination • Preliminary drainage design • Prepare one (1) preliminary site layout for the wellhouse ▪ Electrical preliminary design will consist of: • Concept site plans • One-line diagrams • Specification Section Table of Contents ▪ Architectural preliminary design will consist of 3 renderings of the wellhouse and coordination with the City on preferred options. ▪ Prepare a preliminary set of drawings (30%). ▪ Prepare preliminary opinion of probable construction cost. ▪ Review preliminary documents with City personnel and make changes as required. - Final Design Services: o Civil, process, mechanical, electrical, structural and architectural design. o Prepare final construction drawings and specifications. o Prepare an opinion of probable construction cost. o Review 60% and 90% construction documents with City personnel and make changes as required. o Watershed district and MDH permit preparation & coordination. o Respond to questions and comments from the MDH and receive approval for the drawings and specifications. City of Prior Lake Well & Wellhouse No 10 Proposal Page 5 of 8 - Bidding Phase Services: o Print 2 copies of construction drawings and specifications for City (Bidding Documents). o Maintain plan holders list. o Respond to bidder questions. o Issue addenda to bidding documents, as required. o Attend bid opening and prepare bid tabulation sheets. o Evaluate bids and prepare recommendation letter. - Construction Phase Services o Construction Administration ▪ Issue contract document clarification as required. ▪ Act as Prior Lake’s liaison with contractor. ▪ Organize, coordinate, lead, and attend preconstruction conference and progress meetings, as needed. Provide and distribute meeting minutes. ▪ Assist the City in procuring testing services as defined in the Contract Documents. ▪ Assist the City in procuring construction staking services. ▪ Review Contractor submittals (shop drawings) for products and equipment. ▪ Process contract change order requests, if required. ▪ Review Contractor-submitted construction progress schedules. ▪ Process Contractor partial pay requests and submit to CLIENT. ▪ Provide Substantial Completion inspection and punch list for Contractor and issue Certificate of Substantial Completion, when appropriate. ▪ Review final submittal from Contractor with respect to conformance with the contract documents. ▪ Process final pay requests and project close-outs. ▪ Provide record drawings based upon Contractor’s mark-up and field observation. o Construction Observation – Provide construction observation for Wellhouse. ▪ Construction Observation is assumed to be part-time observation with trips to site for critical point construction activities and milestones. On-site representation will be provided during the following activities: • Underground Construction. o Assumed to be three 8-hour days. • Cast-in-Place Concrete. o Assumed to be three 8-hour days. City of Prior Lake Well & Wellhouse No 10 Proposal Page 6 of 8 • Substantial and Final Completion Punchlist Walkthrough. • Weekly Project Check-Ins through substantial completion. o Assumed to be 4-hours each visit. o Assumed to be a 9-month construction period. • It is assumed that 208 total hours will be spent on-site for construction observation. ▪ AE2S shall not at any time supervise, direct, control, or have authority over any contractor’s work, nor shall AE2S have authority over or be responsible for the means, methods, techniques, sequences, or procedures of construction selected or used by any contractor, or the safety precautions and programs incident thereto, for security or safety at a project site, nor for any failure of a contractor to comply with laws and regulations applicable to such contractor’s furnishing and performing of its work. AE2S neither guarantees the performance of any contractor nor assumes responsibility for any contractor’s failure to furnish and perform its work in accordance with the contract between CLIENT and such contractor. AE2S shall not be responsible for the acts or omissions of any contractor, subcontractor, or supplier, or of any of their agents or employees or of any other persons (except AE2S’s own employees) at a project site or otherwise furnishing or performing any construction work; or for any decision made regarding the construction contract requirements, or any application, interpretation, or clarification of the construction contract other than those made by AE2S. Phase Three – Wellhouse Backflow Prevention - Design Phase Services: o Preliminary Design: ▪ Coordinate and conduct a project team kick-off meeting attended by City and engineer. ▪ Prepare site plans based on wellhouse pictures gathered during preliminary site visits. An additional visit to verify dimensions will be conducted. • It is assumed backflow prevention will be required to be added at all existing wells and wellhouses. o Three (3) wellhouses and seven (7) wells. ▪ Prepare a preliminary set of drawings (30%). ▪ Prepare preliminary opinion of probable construction cost. City of Prior Lake Well & Wellhouse No 10 Proposal Page 7 of 8 ▪ Review preliminary documents with City personnel and make changes as required. o Final Design: ▪ Prepare final drawings and specifications. ▪ Prepare opinion of probable cost. ▪ Review 90% drawings with City personnel. ▪ MDH permit preparation & coordination. ▪ Respond to questions and comments from the MDH and receive approval for the drawings and specifications. - Bidding Phase Services: o It is assumed that wellhouse backflow prevention will be bid as part of the new wellhouse package but can be bid as separate projects (not included in scope). o No additional bidding services will be required. o Alternatively, if MDH allows phased construction after Well No.10 is online, this scope can be removed from the project or bid separately at a schedule determined by the City of Prior Lake - Construction Phase Services: o It is assumed that Construction Observation will occur under the new wellhouse construction services. o No additional construction services will be required. Schedule The schedule shown below assumes AE2S receives the City’s authorization to proceed by October 2026. Well No. 10 - City Authorizes Proposal: October 2026 - Surveying: October 2026 - Meetings with MDH & DNR for Preliminary Well Approval November 2026 - Preliminary Design Phase Well Deliverable: January 2027 - Final Design Phase Deliverable: February 2027 - City Authorizes Advertisement for Bid: February/March 2027 - Bid Opening: April 2027 - City Authorizes Contract Award: April 2027 - Construction: May – July 2027 Wellhouse No. 10 - Preliminary Design Phase Wellhouse Deliverable: July 2027 City of Prior Lake Well & Wellhouse No 10 Proposal Page 8 of 8 - Final Design Phase Deliverable: August 2027 - City Authorizes Advertisement for Bid: August 2027 - Bid Opening: September 2027 - City Authorizes Contract Award: September 2027 - Construction: October 2027 – June 2028 Fee Proposal Estimate AE2S will complete the proposed scope of services outlined above for an hourly, not-to-exceed, fee of $398,300. This fee is summarized in the table below. Phase/Task Number Phase/Task Phase Description Estimated Fee 1 Phase One Well No. 10 1 Design - $48,200 2 Bidding - $8,400 3 Construction - $17,400 2 Phase Two Wellhouse No. 10 1 Design - $164,200 2 Bidding - $11,400 3 Construction - $135,800 3 Phase Three Backflow Prevention $15,600 Total Estimated Fee $398,300 We appreciate the opportunity to assist the City of Prior Lake with this work and look forward to collaborating with you on this effort. If you have any questions or comments regarding our proposed services or if you need additional information, please do not hesitate to contact me at 651-448-3632 Sincerely, AE2S Douglas Klamerus, PE (MN) Laura Wehr, PE CFM Project Manager Operations Manager ITEM: 5F CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Casey McCabe, Community Development Director PRESENTED BY: Casey McCabe AGENDA ITEM: Resolution Approving an Amendment to Chapter 6, Park & Trail System Plan, of the City of Prior Lake 2040 Comprehensive Plan RECOMMENDED ACTION: Approval of a resolution approving an amendment to Chapter 6, Park and Trail System Plan of the 2040 Comprehensive Plan. The amendment would remove approximately 1.81 acres from the Raspberry Woods Park area identified on page 199 of the Park & Trail System Plan. The property proposed to be removed from the Park & Trail System Plan, PID 259260250 (the “Subject Parcel”), is located north of Manitou Road NE. BACKGROUND: Minnesota Statutes section 473.864 requires each local governmental unit to review and, if necessary, amend its entire comprehensive plan at least once every ten years. The Comprehensive Plan is a compilation of policy statements, goals, standards, and maps that guide the physical, social, and economic development, both private and public, of the city. The City of Prior Lake adopted the 2040 Comprehensive Plan on June 1, 2020. On June 11, 2024, the City Council approved Resolution No. 24-059 amending the 2040 Comprehensive Plan to replace Chapter 6, Parks and Trails, with a revised Chapter 6, Park & Trail System Plan. Current Circumstances The City of Prior Lake acquired several parcels which were previously forfeited to the State of Minnesota for the nonpayment of taxes via Conveyance of Forfeited Lands in 1994. Pursuant to Minnesota Statutes Section 282.01, Subd. 1a, the City of Prior Lake applied to the Commissioner of Revenue for the conveyance of lands to be used for public purposes. The parcels were transferred to the City in September 1994 and the Conveyance of Forfeited Lands was recorded in the office of the Scott County Recorder on November 28, 1994 as Document Nos. 345833 & 345834. One of the parcels acquired in 1994 was the Subject Parcel; this parcel was conveyed to the City of Prior Lake for park purposes. When the Subject Parcel was conveyed to the City from the Department of Revenue, the conditional use deed included use restriction and reverter language requiring the City to use the land for a public purpose along with a condition that if such use shall cease, the land shall revert to the State of Minnesota. In 2010, Minnesota Statutes 282.01, Subd. 1d.(d) was amended to include language stating a conditional use deed is released from the use restriction and reverter 30 years from the date the deed was acknowledged. More than thirty years has passed since the conveyance document was issued and recorded, so the parcel is released from the use restriction and reverter language. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5F Page | 2 On September 22, 2026, the City Council held a public hearing and approved a resolution approving a public property use change to remove the park public purpose criteria from the Subject Parcel, directed staff to prepare a comprehensive plan amendment for consideration by the planning commission to remove the Subject Parcel from the Park & Trail System Plan, and authorized the disposal of the Subject Parcel. Although not programmed parkland, the Subject Parcel is identified as being included in the Raspberry Woods Park area in the Park & Trail System Plan within the 2040 City of Prior Lake Comprehensive Plan. An amendment to the comprehensive plan is required to remove this parcel from the Raspberry Woods Park area prior to disposing of the parcel. Conclusion Section 10-933 of Prior Lake City Code requires a public hearing to be held before any amendment to the comprehensive plan is adopted. The proposed amendments shall be submitted to the planning commission for its consideration. The planning commission held a public hearing on October 19, 2026 to consider a recommendation to remove the Subject Parcel from the Raspberry Woods Park area in Chapter 6, Park and Trail System Plan, of the 2040 City of Prior Lake Comprehensive Plan. The Planning Commission recommended the City Council approve the Comprehensive Plan amendment on a 4-0 vote. On September 22, 2026, the City Council approved a resolution removing the public park purpose of the Subject Parcel, therefore, it is no longer necessary for the Subject Parcel to be identified as parkland in the Park & Trail System Plan. FINANCIAL IMPACT: Removal of the Subject Parcel from the Park & Trail System Plan would allow for disposal of the Subject Parcel to generate funds to maintain and enhance public parkland within the City’s park and trail system. ALTERNATIVES: 1. Motion and a second, as part of the consent agenda, approving a resolution amending Chapter 6, Park and Trail System Plan of the 2040 Comprehensive Plan to remove the Subject Parcel from the Raspberry Woods park area. 2. Remove this item from the consent agenda for additional discussion. ATTACHMENTS: 1. General Location Map 2. Park & Trail System Plan_Current 3. Park & Trail System Plan_Amended 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26-___ A RESOLUTION APPROVING AN AMENDMENT TO THE CITY OF PRIOR LAKE 2040 COMPREHENSIVE PLAN TO AMEND CHAPTER 6, PARK & TRAIL SYSTEM PLAN Motion By: Second By: WHEREAS, Minnesota Statutes section 473.864 requires each local governmental unit to review and, if necessary, amend its entire comprehensive plan and its fiscal devices and official controls at least once every ten years to ensure its comprehensive plan conforms to metropolitan system plans and ensure its fiscal devices and official controls do not conflict with the comprehensive plan or permit activities that conflict with metropolitan system plans; and WHEREAS, the Prior Lake City Council adopted the 2040 Comprehensive Plan on June 1, 2020, which includes chapters related to goals & policies; land use; housing; transportation; parks and trails; surface water; wastewater; water supply; economic competitiveness; resilience; and implementation; and WHEREAS, on June 11, 2024, the Prior Lake City Council approved Resolution No. 24-059 amending the 2040 Comprehensive Plan to replace Chapter 6, Parks and Trails, with a revised Chapter 6, Park & Trail System Plan; and WHEREAS, the City of Prior Lake (the “City”)acquired several parcels which were previously forfeited to the State of Minnesota for the nonpayment of taxes via Conveyance of Forfeited Lands in 1994, including an unaddressed parcel located north of Manitou Road NE, Prior Lake, MN 55372, PID 259260250 (the “Subject Parcel”); and WHEREAS, pursuant to Minnesota Statutes Section 282.01, Subd. 1a, the City applied to the Commissioner of Revenue for the conveyance of the Subject Parcel to be used for public park purposes; and WHEREAS, the Subject Parcel was transferred to the City in September 1994 and the Conveyance of Forfeited Lands was recorded in the office of the Scott County Recorder on November 28, 1994 as Document Nos. 345833 & 345834; and WHEREAS, when the Subject Parcel was conveyed to the City from the Department of Revenue, the conditional use deed included use restriction and reverter language requiring the City to use the land for a public purpose along with a condition that if such use shall cease, the land shall revert to the State of Minnesota; and WHEREAS, in 2010, Minnesota Statutes 282.01, Subd. 1d.(d) was amended to include language stating a conditional use deed is released from the use restriction and reverter 30 years from the date the deed was acknowledged; and WHEREAS, on September 22, 2026, the Prior Lake City Council held a public hearing and approved a resolution approving a public property use change to remove the park public purpose criteria from the Subject Parcel, directed staff to prepare a comprehensive plan amendment for consideration by the planning commission to remove the Subject Parcel from the Park & Trail System Plan, and authorized the disposal of the Subject Parcel; and WHEREAS, the Prior Lake Planning Commission conducted a public hearing on October 19, 2026 and recommended City Council approval of amendments to Chapter 6, Park and Trail System Plan of the 2040 Comprehensive Plan to remove the Subject Parcel from the Raspberry Woods Park area. and WHEREAS, on October 27, 2026, the Prior Lake City Council reviewed and approved the proposed Comprehensive Plan amendment. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council approves an amendment to the City of Prior Lake 2040 Comprehensive Plan to amend Chapter 6, Park & Trail System Plan to remove the Subject Parcel from the Raspberry Woods Park area. 3. The City Manager is directed to distribute said Comprehensive Plan Amendment to the Metropolitan Council for review pursuant to Minnesota Statutes section 473.864. th Passed and adopted by the Prior Lake City Council this 27 day of October 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager C:\\Users\\hsimon\\AppData\\Local\\Temp\\Parks & Trails_Comp Plan Amendment_Res_679052\\Parks & Trails_Comp Plan Amendment_Res.docx 2 General Location Map Raspberry Woods Park Subject Property ITEM: 5G CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Paul Moretto, Planner PRESENTED BY: Casey McCabe, Community Development Director AGENDA ITEM: Ordinance Amending Shoreland Impervious Coverage and Lake Classifications RECOMMENDED ACTION: Approve an ordinance amending Prior Lake City Code Section 10-439 relating to impervious surface standards for residential shoreland planned unit developments and Section 10-434 relating to the classification of protected waters, and approving the official ordinance summary for publication. BACKGROUND: City staff is proposing amendments to Sections 10-439 and 10-434 of the Prior Lake City Code relating to impervious surface standards for shoreland planned unit developments (PUDs) and the classification of protected waters. Shoreland PUD Impervious Surface Standards For shoreland PUDs, the development area within the shoreland district is divided into multiple tiers by locating lines parallel to the ordinary high water level (OHWL) over the entire property within the 1,000 ft. OHWL overlay district. The shoreland tier dimensions differ in width based on the classification of the waterbody where the development is proposed. City Code Section 10-439 currently limits impervious surface coverage to 25 percent within each individual shoreland tier for both residential and commercial PUDs. This requirement is more restrictive than the recommendations in the Minnesota Department of Natural Resources (DNR) model Shoreland Ordinance, which requires a maximum of 25 percent impervious coverage for all development property within the shoreland overlay district but does not apply the same limitation of 25 percent coverage per tier. Prior Lake’s more restrictive shoreland regulations can create challenges for residential development. The tier-based density provisions are intended to encourage development farther from the shoreline, providing opportunities to preserve open space and reduce shoreline impacts. However, roads, sidewalks, driveways, and other infrastructure necessary to serve residential development can consume a substantial portion of the impervious surface allowance within an individual tier. As a result, the existing requirement limiting the maximum impervious to 25 percent per tier, opposed to 25 percent of the entire development area within the shoreland overlay district, can restrict a development's ability to accommodate dwelling units otherwise permitted under the tier-density calculations. The proposed amendment would establish a maximum impervious surface coverage of 25 percent for the entire residential PUD project site within the Shoreland Overlay District, rather than applying the limitation separately to each tier. This would provide flexibility in distributing impervious surfaces while maintaining the overall 25 percent limitation. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5G Page | 2 The amendment does not change the maximum number of dwelling units permitted under the shoreland tier-density calculations, the restrictions on transferring density toward the shoreline, shoreline setbacks, open-space requirements, shore and bluff impact zone protections, or stormwater management requirements. The existing tier-based impervious surface standards for commercial PUDs would remain unchanged. Shoreland PUDs would continue to be subject to Planning Commission review and City Council approval. Protected Waters Classification The proposed amendment to Section 10-434 would add three unnamed public water basins to the City's list of protected waters. The Minnesota Department of Natural Resources (DNR) identified basins 70018600, 70015300, and 70016900 as Natural Environment Lakes that should be included in the City's shoreland ordinance. The addition of these lakes is an administrative update to the City's protected-waters inventory and does not change the proposed impervious surface standards. DNR Review The City submitted the proposed amendment to the DNR on October 2, 2026. In a letter dated October 5, 2026, the DNR granted conditional approval, finding the proposed amendment substantially compliant with state shoreland rules. The DNR required the City to identify the three additional public water basins as a condition of their preliminary approval and the city is required to submit the adopted ordinance and documentation following City Council action. Final DNR approval is required before the ordinance amendments become effective. Planning Commission Recommendation On October 19, 2026, the Planning Commission held a public hearing to consider the proposed amendments. Following the public hearing, the Planning Commission recommended approval of the amendments to Sections 10-439 and 10-434 on a vote of 4-0. Staff recommends that the City Council approve the proposed ordinance amendments and the official ordinance summary for publication. FINANCIAL IMPACT: No direct financial impact to the City is anticipated as a result of the proposed ordinance amendments. ALTERNATIVES: 1. Motion and a second, as part of the consent agenda, adopting an ordinance amending Sections 10-439 and 10-434 of the Prior Lake City Code and the official ordinance summary for publication. 2. Remove this item from the consent agenda for additional discussion. ATTACHMENTS: 1. Proposed Ordinance Amendment and Official Summary 2. DNR Conditional Approval Letter dated October 5, 2026 3. Maps of Additional Protected Water Basins Revised 09/26/2024 Ecological and Water Resources 1200 Warner Road St. Paul, MN 55106 October 5, 2026 Paul Moretto Planner, City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 Re: Conditional Approval of Prior Lake Shoreland Ordinance Amendment Dear Paul: Thank you for sending your proposed shoreland ordinance amendment to the DNR for conditional approval review. I am pleased to inform you that the proposed amendment is substantially compliant with the statewide rules (MR 6120.2500 – 6120.3900) and hereby approved, provided the conditions of approval in this letter are met. Ordinance Evaluation We have reviewed the following sections that you propose to amend received on October 2, 2026 for compliance with state shoreland rules. Our conditional approval only applies to the specific sections listed below. Section 10-439 Planned unit developments (PUDs) Subsection (d) Paragraph (3) Sub-paragraph (b) Conditions of Approval The following conditions must be met before the DNR will issue final approval: 1. Reference the three public water basins in the city’s shoreland ordinance; Water Body Name Public Waters ID Number DNR Classification unnamed 70018600 Natural Environment unnamed 70015300 Natural Environment unnamed 70016900 Natural Environment 2. No conditions on the proposed wording for Section 10-439(d)(3)b of the Prior Lake City Code 3. Return the attached “Ordinance Processing Checklist” and documents identified on the checklist Revised 09/26/2024 Next Steps Following are the steps for completing and receiving final DNR approval for your amendment: 1. Revise the amendment based on the conditions listed above. 2. The city council adopts the amendment. 3. Email the completed Ordinance Processing Checklist (attached) and the documents identified on the checklist within 10 days of city council adoption to: a. David De Paz (David.depaz@state.mn.us) b. Ordinance.review.dnr@state.mn.us 4. We will review the amendment adopted by the city council for consistency with the above conditions. 5. If the adopted amendments are consistent with the conditions, I will send you a “final approval” letter. State rules require DNR final approval of shoreland ordinances and amendments for those ordinances to be effective. A shoreland ordinance is an important land use regulation that helps to protect surface water quality, near shore habitat, and scenic character of Minnesota’s public waters. We appreciate your efforts to protect these resources for all present and future Minnesotans. David De Paz is available to assist with ordinance technical guidance and to consult with you on other land and water-related projects. Sincerely, Michael A. Larson Central Region Manager Attachments: Proposed Ordinance with DNR comments Ordinance Processing Checklist c: David De Paz, DNR Area Hydrologist Ordinance.review.dnr@state.mn.us Draft ordinance amendment ORDINANCE NO. 126-______ AN ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 10-439 RELATING TO IMPERVIOUS SURFACE STANDARDS FOR SHORELAND PLANNED UNIT DEVELOPMENTS The City Council of the City of Prior Lake, Minnesota, ordains: Section 1. Section 10-439(d)(3)b of the Prior Lake City Code is hereby repealed and replaced in its entirety with the following: b. Be designed and constructed to effectively manage reasonably expected quantities and qualities of stormwater runoff in accordance with city PWDM requirements. For residential PUDs, impervious surface coverage for the entire project site shall not exceed 25 percent. For commercial PUDs, impervious surface coverage within any tier shall not exceed 25 percent of the tier area, except that 35 percent impervious surface coverage may be allowed in the first tier of general development lakes with an approved stormwater management plan and consistent with section 10-436. Section 2. This ordinance shall become effective from and after its passage and publication according to law. WHAT IS BEING DONE: Strike and add section: b. Be designed and constructed to effectively manage reasonably expected quantities and qualities of stormwater runoff in accordance with city PWDM requirements. Impervious surface coverage within any tier shall not exceed 25 percent of tier area, except that for commercial PUD's 35 percent impervious surface coverage may be allowed in the first tier of general development lakes with an approved stormwater management plan and consistent with section 10-436. For residential PUDs, impervious surface coverage for the entire project site shall not exceed 25 percent. For commercial PUDs, impervious surface coverage within any tier shall not exceed 25 percent of the tier area, except that 35 percent impervious surface coverage may be allowed in the first tier of general development lakes with an approved stormwater management plan and consistent with section 10-436. 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. 126-___ AN ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 10-439 RELATING TO IMPERVIOUS SURFACE STANDARDS FOR SHORELAND PLANNED UNIT DEVELOPMENTS AND AMENDMENTS TO SECTION 10-434 ADDING UNNAMED LAKES The City Council of the City of Prior Lake, Minnesota, ordains: Section 1. City Code Chapter 10 – Zoning, Article IV. – OVERLAY DISTRICTS, Division 2. SHORELAND REGULATIONS, Section 10-439 Planned unit developments (PUDs), subsection (d)(3)b is hereby deleted in its entirety and replaced with the following: b. Be designed and constructed to effectively manage reasonably expected quantities and qualities of stormwater runoff in accordance with city PWDM requirements. For residential PUDs, impervious surface coverage for the entire project site shall not exceed 25 percent within the shoreland overlay district. For commercial PUDs, impervious surface coverage within any tier shall not exceed 25 percent of the tier area, except that 35 percent impervious surface coverage may be allowed in the first tier of general development lakes with an approved stormwater management plan and consistent with section 10-436. Section 2. City Code Chapter 10 – Zoning, Article IV. – OVERLAY DISTRICTS, Division 2. SHORELAND REGULATIONS, Section 10-434 Designation of types of land use, subsection (a) is hereby amended by adding to the table of classified lakes the following waterbodies: The following additional unnamed public water basins are classified as Natural Environment Lakes: DNR ID No. 70018600, DNR ID No. 70015300, and DNR ID No. 70016900. Section 3. Summary approved. The City Council hereby determines that the text of the summary marked “Official Summary of Ordinance No. 126-___” a copy of which is attached hereto clearly informs the public of the intent and effect of the ordinance. The City Council further determines that publication of the title and such summary will clearly inform the public of the intent and effect of the ordinance. Section 4. Filing. A copy of the ordinance shall be filed in the office of the City Clerk. This copy shall be available for inspection by any person during regular office hours. Section 5. Publication. The City Clerk shall publish the title of this ordinance and the official summary in conformance with State Statute and City Code requirements with notice that a printed copy of the ordinance is available for inspection by any person during regular office hours at the Office of the City Clerk. Section 6. Effective date. This ordinance shall take effect upon its passage and the publication of its title and the official summary and Minnesota Department of Natural Resources final approval. th Passed by the City Council of the City of Prior Lake this 27 day of October 2026. ATTEST: _________________________ __________________________ Jason Wedel, City Manager Kirt Briggs, Mayor Official Summary of Ordinance No. 126-___ AN ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 10-439 RELATING TO IMPERVIOUS SURFACE STANDARDS FOR SHORELAND PLANNED UNIT DEVELOPMENTS AND AMENDMENTS TO SECTION 10-434 ADDING UNNAMED LAKES The following is the official summary of Ordinance No. 126-___ passed by the City Council of Prior th Lake on October 27, 2026. Prior Lake City Code Section 10-439, Planned unit developments (PUDs), was amended to establish a maximum impervious surface coverage of 25 percent of the entire project site within the shoreland overlay district for residential shoreland planned unit developments, rather than applying the limit separately to each shoreland tier. The amendment retains the existing tier-based impervious surface coverage requirements for commercial planned unit developments. Prior Lake City Code Section 10-434, Designation of types of land use, was amended to identify three additional unnamed public water basins, DNR ID Nos. 70018600, 70015300, and 70016900, as Natural Environment Lakes. A printed copy of the ordinance is available for inspection by any person during regular office hours in the Office of the City Clerk at Prior Lake City Hall, 4646 Dakota Street SE, Prior Lake, MN 55372. Page 2 of 2 Lakes Exhibit: Unnamed Lake: 77016900 Unnamed Lake: 70018600 Unnamed Lake: 70015300 ITEM: 5H CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Heidi Simon, City Clerk PRESENTED BY: Heidi Simon AGENDA ITEM: Approval of the Animal Control Services Report- September RECOMMENDED ACTION: Approve the animal control services report from September 2026. ALTERNATIVES: 1. Motion and second, as part of the consent agenda, to approve the animal control services report for September 2026 as presented. 2. Motion and second to remove this item from the consent agenda for additional discussion. ATTACHMENTS: 1. AC Invoices - Sept-PL City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Spots Last Stop 6025 170th St E Prior Lake, MN 55372 612-440-1770 Invoice - Sept 2026 10/1/2026 Invoice for Invoice # City of Prior Lake 26-012 4646 Dakota St SE Prior Lake, MN 55372 Description Qty Unit price Total price Monthly Fee 1 $2,000.00 $2,000.00 Additional Fees 0 $0.00 $0.00 $0.00 $0.00 $0.00 Notes:Subtotal $2,000.00 $2,000.00 Cases Date Time Intake Team Member Case Number Animal Name/Descript ion Type Notes Closing Notes 9/23 9:30 AM Catie PL-017 Black Lab pup Dog Brought in by citizen transferred to SLS 9/29/2026 Call Log Date Time Team member Citizen or officer name Address Phone number City Call Reason Our Action 9/11 3:59:00 AM Catie Joseph Bloemke Prior Lake Their small 15 yr old white dog went missing 9/10 said we would watch for anyone fitting that description 9/23 9:05:00 AM Catie Kyle Jones 3615 200th St 346-366-0887 Prior Lake Found adolescent black lab pup brought pup to us 9/23 8:27:00 PM Catie Colleen Callahan lake front park area651-238-8916 Prior Lake Dog found a bat carcass, wants to know if we want to rabies test it refferred her to critter gitter or u of m 9/24 11:26:00 AM Catie Karen Conroy Street 952-237-4133 Prior Lake Caller complains they were chased by neighbors dog and want us to do something about it Refered them to PL PD to place a complaint 9/28 9:22:00 AM Catie Stephanie Cutter 612-418-2457 Credit River Looking for Orange male cat told her we would add him to our list 9/29 12:12:00 PM Catie Gary Rader 3387 glenwater trail 612-554-8786 Prior Lake Dead rat by mailbox explained we are domestic only 9/30 2:58:00 PM Catie Kathy Dahm down town area 952-445-1411 Prior Lake Missing yorkie told her we will keep an eye out ROADKILL PICK UP SERVICES BILLING JUNE 2026 INVOICE FROM: ROADKILL ANIMAL CONTROL ATTENTION: CURT FINCH 520 HAROLD DRIVE BURNSVILLE, MN. 55337 PHONE: 612-280-9170 EMAIL: roadkillvb@gmail.com INVOICE FOR:PRIOR LAKE EMAIL CONTACT:JILL/PUBLIC WORKS CSO KAPFA-POLICE PLEASE MAKE CHECKS TO ROADKILL ANIMAL CONTROL MAIL TO:CURT FINCH @ROADKILL A C 520 HAROLD DR BURNSVILLE,MN 55337 YEAR MONTH ANIMAL PICK UP NUMBER RATE SUBTOTAL SUBTOTAL TOTAL 2026 JUNE AND DISPOSAL RATES EXTRA FEE POSSIBLE DEER 0 $129.00 FOR CAT/OFF SITE DISPOSAL 1 $25.00 $25.00 1 $25.00 OBSTACLES CAT/1 $129.00 $129.00 1 $154.00 AND BEAVER 0 $149.00 OFF ROAD/DOG/SKUNK 1 $150.00 $150.00 1 $304.00 BACKYARD RACCOON 0 $99.00 OFF SITE DISPOSAL SKUNK 1 $25.00 $25.00 1 $329.00 SMALL ANIMALS 0 $90.00 OFF SITE DISPOSAL COYOTE OFF SITE DISPOSAL FEE FOR SPECIES NOT ALLOWED ON SITE TOTAL PLEASE PAY THIS AMOUNT $329.00 CALL DETAILS: DATE 6/9/2026 LOCATION:CALLER:JILL FOUND?YES BILLING TO:PRIOR LAKE TIME 928 PRIOR LAKE AGENCY:PW SEX:CAT RATE $129.00 ARR 1014 HICKORY CIRCLE OFF TURNER RD OFF SITE DISPOSAL $25.00 CLR 1016 CAT DISPOSAL:TOTAL $154.00 DATE 6/29/2026 LOCATION:CALLER:CSO FOUND?YES BILLING TO:PRIOR LAKE TIME 1518 PRIOR LAKE AGENCY:KAPFA SEX:SKUNK RATE $150.00 ARR 1737 EASTBOUND 140TH/PIKE LAKE TR POLICE OFF SITE DISPOSAL $25.00 CLR 1741 SKUNK DISPOSAL:TOTAL $175.00 DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: ROADKILL PICK UP SERVICES BILLING JULY 2026 INVOICE FROM: ROADKILL ANIMAL CONTROL ATTENTION: CURT FINCH 520 HAROLD DRIVE BURNSVILLE, MN. 55337 PHONE: 612-280-9170 EMAIL: roadkillvb@gmail.com INVOICE FOR: PRIOR LAKE EMAIL MELISSA FONDER accountspayable@priorlakemn.gov CONTACT:PHILLIP ENGLIN/P.CO JILL/PUBLIC WORKS CSO KAPFA-POLICE PLEASE MAKE CHECKS TO ROADKILL ANIMAL CONTROL MAIL TO : CURT FINCH @ROADKILL A C 520 HAROLD DR BURNSVILLE,MN 55337 YEAR MONTH ANIMAL PICK UP NUMBER RATE SUBTOTAL SUBTOTAL TOTAL 2026 JULY AND DISPOSAL RATES EXTRA FEE COYOTE POSSIBLE DEER $129.00 FOR CAT/OFF SITE DISPOSAL $25.00 OBSTACLES CAT/$129.00 AND BEAVER $149.00 OFF ROAD/DOG/SKUNK $150.00 BACKYARD RACCOON 1 $99.00 $99.00 $99.00 RACCOON/OFF SITE DISPOSAL 1 $25.00 $25.00 $124.00 RACCOON/OFF ROAD PICK UP 1 $15.00 $15.00 $139.00 OFF SITE DISPOSAL FEE FOR SPECIES NOT ALLOWED ON SITE TOTAL PLEASE PAY THIS AMOUNT $139.00 CALL DETAILS: DATE 7/9/2026 LOCATION:CALLER:JILL STILWELL FOUND?YES BILLING TO:RACC $99.00 TIME 1035 PRIOR LAKE AGENCY:CITY SEX: RACCOON-OFF SITE DISPOSAL REQUIRED-$25.00 ARR 1355 DOA RACCOON ON EAST SIDE OF TRAIL BTWN THIELEN LAKE & GOLF PICK UP FEE/OFF ROAD-$15.00 CLR 1450 NEAR 3455 WILDS RIDGE NW.NOT DEAD/REQUEST PD ASSIST TO PUT DOWN-FINALLY DIED.PICK UP & DISPOSALTOTAL $139.00 DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR CLR DISPOSAL:TOTAL DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: ROADKILL PICK UP SERVICES BILLING AUGUST 2026 INVOICE FROM: ROADKILL ANIMAL CONTROL ATTENTION: CURT FINCH 520 HAROLD DRIVE BURNSVILLE, MN. 55337 PHONE: 612-280-9170 EMAIL: roadkillvb@gmail.com INVOICE FOR: PRIOR LAKE EMAIL MELISSA FONDER accountspayable@priorlakemn.gov CONTACT:PHILLIP ENGLIN/P.CO JILL/PUBLIC WORKS CSO KAPFA-POLICE PLEASE MAKE CHECKS TO ROADKILL ANIMAL CONTROL MAIL TO : CURT FINCH @ROADKILL A C 520 HAROLD DR BURNSVILLE,MN 55337 YEAR MONTH ANIMAL PICK UP NUMBER RATE SUBTOTAL SUBTOTAL TOTAL 2026 AUGUST AND DISPOSAL RATES EXTRA FEE DUCK- WILD MINIMUM 1 $90.00 $90.00 $90.00 90 POSSIBLE DEER $129.00 FOR CAT/OFF SITE DISPOSAL $25.00 OBSTACLES CAT/$129.00 AND BEAVER $149.00 OFF ROAD/DOG/SKUNK $150.00 BACKYARD RACCOON $99.00 RACCOON/OFF SITE DISPOSAL $25.00 RACCOON/OFF ROAD PICK UP $15.00 OFF SITE DISPOSAL FEE FOR SPECIES NOT ALLOWED ON SITE TOTAL PLEASE PAY THIS AMOUNT $90.00 CALL DETAILS: DATE 8/7/2026 LOCATION:CALLER:JILL FOUND?YES BILLING TO:PRIOR LAKE TIME 1011 PRIOR LAKE AGENCY:PW SEX:DUCK DUCK DUCK ARR 1449 5870 SHEFFIELD TERRACE WT/LBS:AMOUNT:$90.00 CLR 1451 DUCK DISPOSAL:WSC ROAD INFO:PRIOR LAKE DATE 8/20/2026 LOCATION:CALLER:POLICE FOUND?CANCELBILLING TO:PRIOR LAKE TIME 1312 PRIOR LAKE AGENCY:SEX: ARR 1314/CANCEL GOOSE/EAST OF 160TH & FISH POUNT RD WT/LBS:AMOUNT:CANCEL CLR DISPOSAL:ROAD INFO:PRIOR LAKE DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: ROADKILL PICK UP SERVICES BILLING SEPT 2026 INVOICE FROM: ROADKILL ANIMAL CONTROL ATTENTION: CURT FINCH 520 HAROLD DRIVE BURNSVILLE, MN. 55337 PHONE: 612-280-9170 EMAIL: roadkillvb@gmail.com INVOICE FOR: PRIOR LAKE EMAIL MELISSA FONDER accountspayable@priorlakemn.gov CONTACT:PHILLIP ENGLIN/P.CO JILL/PUBLIC WORKS CSO KAPFA-POLICE PLEASE MAKE CHECKS TO ROADKILL ANIMAL CONTROL MAIL TO : CURT FINCH @ROADKILL A C 520 HAROLD DR BURNSVILLE,MN 55337 YEAR MONTH ANIMAL PICK UP NUMBER RATE SUBTOTAL SUBTOTAL TOTAL 2026 SEPTEMBER AND DISPOSAL RATES EXTRA FEE MUSKRAT- WILD MINIMUM 1 $90.00 $90.00 $90.00 90 POSSIBLE DEER $129.00 FOR CAT/OFF SITE DISPOSAL $25.00 OBSTACLES CAT/$129.00 AND BEAVER $149.00 OFF ROAD/DOG/SKUNK $150.00 BACKYARD RACCOON $99.00 RACCOON/OFF SITE DISPOSAL $25.00 RACCOON/OFF ROAD PICK UP $15.00 OFF SITE DISPOSAL FEE FOR SPECIES NOT ALLOWED ON SITE TOTAL PLEASE PAY THIS AMOUNT $90.00 CALL DETAILS: DATE 9/11/2026 LOCATION:CALLER:JILL FOUND?YES BILLING TO:PRIOR LAKE TIME 549AM PRIOR LAKE AGENCY:STILLWELL SEX:MUSKRAT MUSKRAT ARR 1110 ENCLAVE CT-ONLY LOCATION PW WT/LBS:AMOUNT:$90.00 CLR 1111 DEAD ANIMAL MIDDLE OF ROAD SPECIALIST DISPOSAL:WSC ROAD INFO:PRIOR LAKE DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: DATE LOCATION:CALLER:FOUND?BILLING TO: TIME AGENCY:SEX: ARR WT/LBS:AMOUNT: CLR DISPOSAL:ROAD INFO: ITEM: 5I CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Heidi Simon, City Clerk PRESENTED BY: Liam Duggan, Police Chief AGENDA ITEM: Resolution Approving the Prior Lake Police to Enter into a Grant Agreement with the Minnesota Department of Public Safety RECOMMENDED ACTION: Approve a resolution authorizing the Prior Lake Police Department to enter into a grant agreement with the Minnesota Department of Public Safety, as part of the Minnesota Office of Traffic Safety's Towards Zero Deaths (TZD) campaign. BACKGROUND: The award is through the Minnesota Office of Traffic Safety's Towards Zero Deaths (TZD) campaign. The Prior Lake Police Department has been a member of the County wide TZD enforcement for many years. This year the program needs to be applied for and granted to each agency instead of being completed under the umbrella of the county. Patrol Sergent DJ Hageman is the coordinator for Prior Lake and completed the grant in August 2026 and it was recently awarded to the City. A resolution from the City Council is required in order for the Prior Lake Police Department to access these funds. FINANCIAL IMPACT: Prior Lake Police has been granted $12,400 that will be used in the following ways over the next four quarters:  Impaired Driving Enforcement: $3,000  Seat Belt Enforcement: $2,600  Speed Enforcement: $3,500  Distracted Enforcement: $3,000  Move Over Enforcement: $300 Q1: October 1st to December 31st , 2026 Q2: January 1st to March 31st , 2027 Q3: April 1st to June 30th , 2027 Q4: July 1st to September 30th , 2027 ALTERNATIVES: 1. Motion and second, as part of the consent agenda, to approve a resolution allowing the Prior Lake Police department to accept the grant money as presented. 2. Motion and second to remove this item from the consent agenda for additional discussion. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5I Page | 2 ATTACHMENTS: 1. 26- Resolution Approving Prior Lake Police to enter Grant Agreement with the Minnesota Department of Public Safety 2. Prior Lake Police Department (003) Grant Breakdown 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26- A RESOLUTION APPROVING PRIOR LAKE POLICE TO ENTER INTO A GRANT AGREEMENT WIH THE MINNESOTA DEPARTMENT OF PUBLIC SAFETY Motion By: Second By: WHEREAS, the Prior Lake Police Department wishes to enter into an agreement with the Minnesota Department of Public Safety, for traffic safety enforcement projects during the period from October 1, 2026 through September 30, 2027; and WHEREAS, the grant being offered is part of the Minnesota Office of Traffic Safety's Towards Zero Deaths (TZD) campaign; and WHEREAS, Prior Lake Police has access to obtain $12,400 in 2027 as part of this grant agreemet to be allocated to various traffic enforcement initatives. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council approves the Prior Lake Police Department to enter ino the Minnesota Office of Traffic Saftey’s towards zero dealth (TZD) Campagin. th Passed and adopted by the Prior Lake City Council this 27 day of October 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager Prior Lake Police Department Tra Ưic Enforcement: Impaired Driving Enforcement : $3,000 Seat Belt Enforcement: $2,600 Speed Enforcement: $3,500 Distracted Enforcement: $3,000 Move Over Enforcement: $ 300 Pedestrian Enforcement: $ 0 Total Grant Award: $12,400 ITEM: 7A CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Casey McCabe, Community Development Director PRESENTED BY: Casey McCabe AGENDA ITEM: Resolution Vacating a Drainage and Utility Easement Located Between Lot 1 and Lot 2, Block 2, Gateway Shores RECOMMENDED ACTION: Approval of a resolution vacating a drainage & utility easement located between Lot 1 and Lot 2, Block 2, Gateway Shores. BACKGROUND: Jack and Mary Haugen have submitted a petition for the vacation of a drainage & utility easement along the common lot line between Lots 1 & 2, Block 2, Gateway Shores. The Haugens own both parcels; Lot 1 is addressed 4824 Adrian Circle SE and Lot 2 does not have an assigned address. The existing garage, in-ground pool and deck are constructed over the drainage and utility easement along the shared property line between Lots 1 and 2; however, the City of Prior Lake does not have record of this easement being vacated. Current Circumstances The purpose of this action is to formally vacate the drainage & utility easement along the common lot line between Lots 1 & 2, Block 2, Gateway Shores. There are no existing municipal utilities in the easement area and City staff does not see a need to utilize this easement in the future. Conclusion The City’s decision to grant or deny a vacation is legislative in character. Therefore, the City Council must decide that the proposed vacation is “in the interest of the public”. If the City concludes that this portion of drainage & utility easement is no longer needed for a public reason, then vacating it can be deemed to be in the interest of the public. City Code Sec. 2-232 states no interest in real property shall be disposed of by the City until after the Planning Commission has reviewed the proposed disposal and reported in writing to the City Council its findings as to compliance of the proposed disposal with the Comprehensive Plan. The City Council may, by resolution adopted by two-thirds vote, dispense with the requirements of this subsection when in its judgment it finds that the proposed disposal of real property has no relationship to the Comprehensive Plan. The attached resolution, which requires two-thirds vote, includes a City Council finding that the proposed drainage & utility easement vacation has no relationship to the comprehensive municipal plan and dispenses of the requirement for review by the Planning Commission. FINANCIAL IMPACT: No financial impact is anticipated. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 7A Page | 2 ALTERNATIVES: 1. Motion and second to approve the resolution vacating a drainage & utility easement located between Lot 1 and Lot 2, Block 2, Gateway Shores. 2. Motion and second to deny the resolution approving the vacation of a drainage & utility easement located between Lot 1 and Lot 2, Block 2, Gateway Shores. 3. Provide direction to staff and the applicant and table this item to a future meeting date. ATTACHMENTS: 1. Location Map 2. Gateway Shores Plat Excerpt Gateway Shores Plat Excerpt Proposed D&U Easement to be Vacated 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26-___ RESOLUTION APPROVING THE VACATION OF A DRAINAGE & UTILITY EASEMENT LOCATED BETWEEN LOT 1 AND LOT 2, BLOCK 2, GATEWAY SHORES Motion By: Second By: WHEREAS, Jack and Mary Haugen (the “Applicant”) have submitted a petition for the vacation of a drainage & utility easement along the common lot line between Lots 1 & 2, Block 2, Gateway Shores; and WHEREAS, the petition has been duly presented to the City of Prior Lake by the owners of the property situated in the City of Prior Lake, Scott County, Minnesota to wit: Legal Description (Vacated Drainage & Utility Easement): A strip of land twenty (20) feet in width for drainage and utility purposes, lying within the recorded plat of Gateway Shores, Scott County, Minnesota, being ten (10) feet in width on each side of the common lot line between Lot 1 (PID 250910060) and Lot 2 (PID 250910070), Block 2 of said Gateway Shores; and WHEREAS, notice of the hearing has been duly published and posted in accordance with the applicable Minnesota Statutes; and WHEREAS, a Public Hearing was held on said petition on Tuesday, October 27, 2026 by the Prior Lake City Council in the Council Chambers at Prior Lake City Hall, 4646 Dakota Street SE; and WHEREAS, the City Council then proceeded to hear all persons interested in said petition and persons interested were afforded the opportunity to present their views and objections to the granting of said petition; and WHEREAS, the City Council found the drainage & utility easement is not necessary for the maintenance of public utilities or any other public purpose. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council of Prior Lake has determined that the vacation of said drainage & utility easement would be in the public interest. 3. The City Council finds that the vacation of said drainage & utility easement has no relationship to the comprehensive municipal plan. 4. A four-fifths majority is required for approval by the City Council of Prior Lake if the Planning Commission review was dispensed with. 5. Review by the Planning Commission of the drainage & utility easement vacation is hereby dispensed with, the vacation of easement is hereby approved, and staff are authorized and directed to execute all documents as necessary and take all appropriate measures to vacate said drainage & utility easement. 6. The approval resolution vacating the drainage & utility easement shall be recorded at the Scott County Recorder’s Office. 7. Pursuant to Minnesota Statues 462.358, the following described drainage & utility easement is hereby vacated: Legal Description (Vacated Drainage & Utility Easement): A strip of land twenty (20) feet in width for drainage and utility purposes, lying within the recorded plat of Gateway Shores, Scott County, Minnesota, being ten (10) feet in width on each side of the common lot line between Lot 1 and Lot 2, Block 2 of said Gateway Shores. th Passed and adopted by the Prior Lake City Council this 27 day of October 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________ Jason Wedel, City Manager 2 Location Map 4824 & n/a Adrian Circle SE PIDs 250910060 & 250910070) Proposed D&U Easement to be Vacated