Loading...
HomeMy WebLinkAbout05(O) - Resolution Approving a Cooperative Agreement with Scott County for the Marsh Drive Extension Project (2022-27) Report ITEM: 5O CITY COUNCIL AGENDA REPORT MEETING DATE: April 14, 2026 PREPARED BY: Nick Monserud, Public Works Director/City Engineer PRESENTED BY: Nick Monserud AGENDA ITEM: Resolution Approving a Cooperative Agreement with Scott County for the Marsh Drive Extension Project (2022-27) RECOMMENDED ACTION: Adopt a resolution approving a cooperative cost share agreement with Scott County for the Marsh Drive Extension Project (2022-27). BACKGROUND: On March 10, 2026 the City Council approved a $750,000 purchase agreement for the real property located at 13995 Hidden Lake Trail NE in Prior Lake to accommodate the extension of Marsh Drive NE between Hidden lake Trail NE and Pike Lake Trail NE. The closing on this property took place on March 18, 2026. Both the City and Scott County will mutually benefit from the extension of Marsh Drive NE and wish to enter into a cooperative agreement to document the cost participation of each party. The agreement includes the following conditions: • Scott County shall reimburse the City for 50% of the cost of the property acquisition, or $375,000. • Scott County shall fund 50% of the cost to subdivide the property to establish city right-of- way (ROW) and two separate parcels – one to the north of the ROW and one to the south of the ROW. • The City shall dedicate a portion of the south parcel (100 feet from the centerline of CH 42) to Scott County for CH 42 ROW. • The City shall pay the County for 50% of the net proceeds of the future sale of the south parcel. • The City shall pay the County for 50% of the net proceeds of the future sale of the north parcel, or, if the City desires to keep the north parcel for park or trail use, the parties will work together to mutually agree on appropriate compensation to the County for its 50% share of the purchase cost. This cooperative agreement has been reviewed by city staff and the city attorney and is recommended for Council approval at this time. The Scott County Board approved this agreement at their regular meeting that was held on April 7, 2026. FINANCIAL IMPACT: The purchase of right-of-way for the Marsh Drive extension project is identified in the City’s Capital Improvement Plan (CIP) and the Scott County Transportation Improvement Plan (TIP). City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5O Page | 2 ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a resolution approving a cooperative agreement with Scott County for the Marsh Drive Extension Project (2022- 27). 2. Motion and second to remove this item from the consent agenda for further discussion. ATTACHMENTS: 1. Resolution 2. Cooperative Agreement 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26- RESOLUTION APPROVING A COOPERATIVE COST SHARE AGREEMENT FOR THE MARSH DRIVE EXTENSION PROJECT (2022-27) Motion By: Second By: WHEREAS, on March 10, 2026 the City Council approved a $750,000 purchase agreement for the real property located at 13995 Hidden Lake Trail NE in Prior Lake to accommodate the extension of Marsh Drive NE between Hidden lake Trail NE and Pike Lake Trail NE; and WHEREAS, the closing on this property took place on March 18, 2026; and WHEREAS, both the City and Scott County will mutually benefit from the extension of Marsh Drive NE and wish to enter into a cooperative agreement to document the cost participation of each party; and WHEREAS, the city attorney and city staff have reviewed the agreement and recommend City Council approval at this time. 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 as if fully set forth. 2. The Mayor and City Manager are authorized to execute the Cooperative Agreement. th Passed and adopted by the Prior Lake City Council this 14 day of April 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager CP 42-26 City of Prior Lake County of Scott COOPERATIVE AGREEMENT THIS AGREEMENT, by and between the County of Scott, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "County" and the City of Prior Lake, a Minnesota municipal corporation, hereinafter referred to as the "City". RECITALS: A. The City’s 2026 Capital Improvement Plan included the Marsh Drive extension project (“Project”), which extends Marsh Drive between County Highway (CH) 21 and Pike Lake Road NE. Marsh Drive is an east/west minor collector roadway that supports CH 42. Construction of the Project by the City, with County support, will be determined mutually as development of the area continues. B. Frontage roads such as Marsh Drive play a key role in relieving congestion and managing access along principal arterial highways to promote safety and mobility. C. County has agreed to participate in the cost of the project and has eight hundred thousand dollars ($800,000) programmed for year 2026 in the 2026-2035 Transportation Improvement Program (TIP). D. As part of the Project, City is purchasing property (PID 259230041), which currently impedes the completion of the extension between the west end of Marsh Drive and the east end of Marsh Drive. E. County and City will split the cost of this property purchase evenly and have agreed to specific terms and commitments regarding the purchase, which are hereby defined in this Agreement. F. It is contemplated that the Project shall be carried out by the parties under the provisions of Minn. Stat. §162.17, subd. 1 and Minn. Stat. §471.59. NOW, THEREFORE, in consideration of the mutual undertakings and agreement contained within this Agreement, the County and City hereby agree as follows: 1. Incorporation The recitals set out above are hereby incorporated into this Agreement as if fully restated herein. 2. Funding Terms and Commitments a. City shall purchase property for seven hundred fifty thousand dollars ($750,000). b. County to reimburse City fifty percent (50%) of the purchase price, which is three hundred seventy-five thousand dollars ($375,000). c. Upon closing on the property, City shall subdivide the property to establish City street Right-of-Way (ROW) for the Marsh Drive connection and two (2) parcels, one being north of the ROW and one south of the ROW. 1 CP 42-26 City of Prior Lake County of Scott d. County shall fund fifty percent (50%) of the cost to subdivide the property including but not limited to professional services and fees. e. South Parcel: 1) City shall dedicate one hundred (100) feet from centerline of CH 42 to Scott County for CH 42 ROW. 2) City intends to list the remaining property south of Marsh Drive for sale and City shall pay County fifty percent (50%) of the net proceeds of any sale of this property. f. North Parcel: 1) City has contemplated listing the remaining property north of Marsh Drive for sale or maintaining it for either park or trail use. 2) If the City, in its sole discretion, chooses to sell this remaining property, the City shall pay County fifty percent (50%) of the net proceeds of any sale of this property. 3) If City, in its sole discretion, takes action to establish any part of this property for either park or trail use, Parties will work together to mutually agree on appropriate compensation to the County for its 50% share of the purchase of that portion of the property. 3. Effective Date of Contract This Agreement shall be effective upon execution by all parties to the Agreement. 4. Term of Contract This Agreement will terminate once all funding terms and commitments are satisfied. 5. Authorized Agents The Parties shall appoint an authorized agent for the purpose of administration of this Agreement. City is notified of the authorized agent of County as follows: Adam Jessen, or his successor Assistant County Highway Engineer Scott County Physical Development 200 Fourth Avenue West Shakopee, MN 55379 (952) 496-8048 ajessen@co.scott.mn.us The County is notified the authorized agent for City is as follows: Nick Monserud, or his successor Public Works Director/City Engineer City of Prior Lake 17073 Adelmann St. SE Prior Lake, MN 55372 (952) 447-9834 nmonserud@priorlakemn.gov 2 CP 42-26 City of Prior Lake County of Scott 6. County and State Audit Pursuant to Minn. Stat. Sec. 16C.05, subd. 5, the books, records, documents, and accounting procedures and practices of the County and City pursuant to this Agreement shall be subject to examination by the County, City and the State Auditor. Complete and accurate records of the work performed pursuant to this Agreement shall be kept by the County and City for a minimum of six (6) years following termination of this Agreement for such auditing purposes. The retention period shall be automatically extended during the course of any administrative or judicial action involving the County or the City regarding matters to which the records are relevant. The retention period shall be automatically extended until the administrative or judicial action is finally completed or until the authorized agent of the County or City notifies each party in writing that the records no longer need to be kept. 7. Liability and Indemnity a. Neither party, its officers, agents or employees, either in their individual or official capacity, shall be responsible or liable in any manner to the other party for any claim, demand, action or cause of action of any kind or character arising out of, allegedly arising out of or by reason of the performance, negligent performance or nonperformance of the described maintenance, restoration, repair or replacement work by the other party, or arising out of the negligence of any contractor under any contract let by the other party for the performance of said work; and each party agrees to defend, save, keep and hold harmless the other, its officers, agents and employees harmless from all claims, demands, actions or causes of action arising out of negligent performance by its officers, agents or employees. b. It is further agreed that neither party to this Agreement shall be responsible or liable to the other or to any other person or entity for any claims, damages, actions, or causes of actions of any kind or character arising out of, allegedly arising out of or by reason of the performance, negligent performance or nonperformance of any work or part hereof by the other as provided herein; and each party further agrees to defend at its sole cost and expense and indemnify the other party for any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising in connection with or by virtue of performance of its own work as provided herein. Each party’s obligation to indemnify the other under this clause shall be limited in accordance with the statutory tort liability limitation as set forth in Minnesota Statutes Chapter 466 to limit each party’s total liability for all claims arising from a single occurrence, include the other party’s claim for indemnification, to the limits prescribed under §466.04. It is further understood and agreed that the Parties’ total liability shall be limited by Minn. Stat. §471.59, Subdivision 1a. as a single governmental unit. c. It is further agreed that any and all employees of each party and all other persons engaged by a party in the performance of any work or services required or provided herein to be performed by the party shall not be considered employees, agents or independent contractors of the other party, and that any and all claims that may or might arise under the Workers’ Compensation Act or the Unemployment Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said employees while so engaged shall be the sole 3 CP 42-26 City of Prior Lake County of Scott responsibility of the employing party and shall not be the obligation or responsibility of the other party. 8. Insurance Since each party is a political subdivision of the State of Minnesota, each party shall maintain a program of self-insurance or insurance covering general liability and automobile liability coverage protecting itself, its officers, agents, employees and duly authorized volunteers against any usual and customary public liability claims to the limits prescribed under Minn. Stat. Sec. 466.04 and Workers’ Compensation in accordance with the Minnesota statutory requirements. Said coverage shall be kept in effect during the entire term of this Agreement. 9. Data Practices All records kept by the City and the County with respect to the Project shall be subject to examination by the representatives of each party. All data collected, created, received, maintained or disseminated for any purpose by the activities of the County or City pursuant to this Agreement shall be governed by Minnesota Statutes Chapter 13, as amended, and the Minnesota Rules implementing such Act now in force or hereafter adopted. 10. Equal Employment and Americans with Disabilities In connection with the work under this Agreement, City agrees to comply with the applicable provisions of state and federal equal employment opportunity and nondiscrimination statutes and regulations. In addition, upon entering into this Agreement, City certifies that it has been made fully aware of Scott County's Equal Employment Opportunity and Americans With Disabilities Act Policies, that it supports these policies and that it will conduct its own employment practices in accordance therewith. Failure on the part of City to conduct its own employment practices in accordance with County Policy may result in the withholding of all or part of regular payments by the County due under this Agreement unless or until City complies with the County policy, and/or suspension or termination of this Agreement. 11. Controlling Law The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and performance under it. The appropriate venue and jurisdiction for any litigation hereunder shall be those courts located with the County of Scott, State of Minnesota. Litigation, however, in the federal courts involving the parties shall be in the appropriate federal court within the State of Minnesota. 12. Changes/Amendments The parties agree that no change or modification to this Agreement, or any attachments hereto, shall have any force or effect unless the change is reduced to writing, dated, and made part of this Agreement. The execution of the change shall be authorized and signed in the same manner as this Agreement, or according to other written policies of the original parties. 4 CP 42-26 City of Prior Lake County of Scott 13. Severability In the event any provision of this Agreement shall be held invalid and unenforceable, the remaining provisions shall be valid and binding upon the parties unless such invalidity or non-enforceability would cause the Agreement to fail its purpose. One or more waivers by either party of any provision, term, condition or covenant shall not be construed by the other party as a waiver of a subsequent breach of the same by the other party. 14. Entire Agreement It is understood and agreed that the entire agreement of the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the County and City relating to the subject matter hereof. 5 CP 42-26 City of Prior Lake County of Scott IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed intending to be bound thereby. CITY OF PRIOR LAKE By And Kirt Briggs, Mayor Jason Wedel, City Manager Date Date COUNTY OF SCOTT By Lezlie Vermillion, County Administrator Date Upon proper execution, this agreement RECOMMEND FOR APPROVAL: will be legally valid and binding. By By Jeanne Andersen, Assistant County Attorney Anthony J. Winiecki, County Engineer Date Date 6