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10-09-2023 Agenda and Packet
A.5:30 P.M. - WORK SESSION Note: Unless otherwise noted, work sessions are held in the Fountain Conference Room in the lower level of City Hall and are open to the public. If the City Council does not complete the work session items in the time allotted, the remaining items will be considered after the regular agenda. A.1 Gambling Ordinance Discussion A.2 Highway 5 and 82nd Street Project Updates A.3 Chanhassen Civic Campus - City Council Update A.4 Chanhassen Bluffs Sports Complex Update A.5 Future Work Session Schedule B.7:00 P.M. - CALL TO ORDER (Pledge of Allegiance) C.PUBLIC ANNOUNCEMENTS C.1 Recognition of Donation from the Chanhassen Athletic Association D.CONSENT AGENDA All items listed under the Consent Agenda are considered to be routine by the city council and will be considered as one motion. There will be no separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and considered separately. City council action is based on the staff recommendation for each item. Refer to the council packet for each staff report. D.1 Approve City Council Minutes dated September 25, 2023 D.2 Receive Planning Commission Meeting Minutes dated September 5, 2023 D.3 Receive Park and Recreation Minutes dated August 22, 2023 AGENDA CHANHASSEN CITY COUNCIL MONDAY, OCTOBER 9, 2023 CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD 1 D.4 Receive Economic Development Commission Minutes dated August 8, 2023 D.5 Approve Claims Paid dated October 9, 2023 D.6 Consider approval of a Geotechnical Exploration Contract for the Minnetonka Middle School West Roundabout Project D.7 Award Contract for Audit Services D.8 Approve Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District for work related to 2023 Trail Rehabilitation Project D.9 Resolution 2023-XX: Accept $5,000 Donation from the Chanhassen Athletic Association D.10 Resolution 2023-XX: Approve Application of the Rotary Club of Lake Minnetonka-Excelsior to Conduct Off-Premise Lawful Gambling at North Coop Restaurant located at 2401 Highway 7 D.11 Resolution 2023-XX: Authorize Design and Construction Administration Services Contract for 2023 Stormwater Pond Maintenance Project D.12 Ordinance XXX: Amending the City Code Concerning Regulation of Lawful Gambling, and approve the Publication of a Summary Ordinance E.VISITOR PRESENTATIONS Visitor Presentations requesting a response or action from the City Council must complete and submit the Citizen Action Request Form (see VISITOR GUIDELINES at the end of this agenda). E.1 Christie Larson, Southern Valley Alliance - Domestic Violence Awareness Month F.PUBLIC HEARINGS F.1 Resolution 2023-XX: Adopt Resolution Approving Vacation of Public Drainage and Utility Easements Within Lot 1, Block 1, and Lot 2, Block 1, Paws Claws and Hooves Addition G.GENERAL BUSINESS H.COUNCIL PRESENTATIONS I.ADMINISTRATIVE PRESENTATIONS J.CORRESPONDENCE DISCUSSION K.ADJOURNMENT GUIDELINES FOR VISITOR PRESENTATIONS Welcome to the Chanhassen City Council Meeting. In the interest of open communications, the Chanhassen City Council wishes to provide an opportunity for the public to address the City Council. That opportunity is provided at every regular City Council meeting during Visitor Presentations. Anyone seeking a response or action from the City Council following their presentation is 2 Anyone seeking a response or action from the City Council following their presentation is required to complete and submit a Citizen Action Request Form. An online form is available at https://www.chanhassenmn.gov/action or paper forms are available in the city council chambers prior to the meeting. A total of thirty minutes is alloted for Visitor Presentations. Priority is given to Chanhassen residents. An additional thirty minutes may be provided after General Business items are complete at the discretion of the City Council. Anyone indicating a desire to speak during Visitor Presentations will be acknowledged by the Mayor. When called upon to speak, state your name, address, and topic. All remarks shall be addressed to the City Council as a whole, not to any specific member(s) or to any person who is not a member of the City Council. If there are a number of individuals present to speak on the same topic, please designate a spokesperson that can summarize the issue. Limit your comments to five minutes. Additional time may be granted at the discretion of the Mayor. If you have written comments, provide a copy to the Council. Comments may also be emailed to the City Council at council@chanhassenmn.gov. During Visitor Presentations, the Council and staff listen to comments and will not engage in discussion. Council members or the City Manager may ask questions of you in order to gain a thorough understanding of your concern, suggestion or request. Please be aware that disrespectful comments or comments of a personal nature, directed at an individual either by name or inference, will not be allowed. Personnel concerns should be directed to the City Manager. Members of the City Council and some staff members may gather at Tequila Butcher, 590 West 79th Street in Chanhassen immediately after the meeting for a purely social event. All members of the public are welcome. 3 City Council Item October 9, 2023 Item Gambling Ordinance Discussion File No.Item No: A.1 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Kim Meuwissen, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION Discussion Motion Type N/A Strategic Priority N/A SUMMARY Chapter 10, Article V of the Chanhassen City Code addresses lawful gambling within the city and was last updated in 2004. The current gambling ordinance does not sufficiently address processes for issuing premises permits and exempt and excluded (local) permits for lawful gambling activities that the State does not regulate through licensing, nor does the ordinance address due process issues. BACKGROUND State Statute and Restrictions The attached draft ordinance adopts Minnesota Statute Chapter 349 by reference, which also allows the city to impose additional restrictions on gambling within its limits beyond those contained in the statute. Permits 4 The Minnesota Gambling Control Board issues lawful gambling licenses to Minnesota non-profit corporations or tax-exempt organizations, with conditions. City review and approval are required for three types of permits: Exempt Permits: issued to unlicensed non-profit organizations seeking to conduct bingo, raffles, and other forms of lawful gambling. Exempt permits are required for the calendar year when: The total value of ALL prizes donated and purchased is less than $50,000 and is limited to five days of gambling activity per calendar year Permits to Conduct Excluded Bingo : issued to unlicensed non-profit organizations seeking to conduct bingo. Excluded permits are required for the calendar year when: bingo will be conducted at four or fewer events, or bingo will be conducted up to 12 consecutive days in conjunction with a county fair, civic celebration, or the Minnesota State Fair Exempt/Excluded permits have previously been issued to the following organizations: Chanhassen American Legion Auxiliary Chanhassen Storm Gridiron Club Ducks Unlimited Minnesota Baseball Club Southern Valley Alliance SouthWest Metro Chamber of Commerce St. Hubert Catholic Community United Healthcare Children's Foundation NOTE: Exempt and Excluded Permits are considered "Local Permits" in the proposed ordinance. Premises Permits: issued to a licensed organization to conduct lawful gambling on an ongoing basis at any specific location. NOTE: A premises permit application is required as part of an organization's initial lawful gambling license application. This can either be for the organization's home facility if they have one (such as the Chanhassen American Legion) and for each additional premise that the organization conducts lawful gambling in (such as the Chanhassen Brewing Company and Hackamore Brewing Company), if any. If an organization does not have a home facility for its gambling license, it still must apply for a premises permit at the location where it intends to conduct lawful gambling, whether or not it conducts the organization's business at that location. On May 10, 2021, the Chanhassen City Council adopted a resolution approving an application from Chanhassen American Legion Post 580 ("Legion") for a premises permit to conduct lawful gambling in Chanhassen Brewing Company. This was the first time a premises permit was approved in Chanhassen, other than the initial premises permit issued for the Legion's existing site. Subsequently, premises permits to conduct lawful gambling have been approved for the following organizations: Minnesota Youth Athletic Services (Spring Lake Park) - Buffalo Wild Wings (February 14, 2022) Chanhassen American Legion Post 580 (Chanhassen) - Hackamore Brewing Company (February 13, 2023) Holy Family Catholic High School (Victoria) - Axel's Bonfire (August 14, 2023) 5 Only two approved premises permits were issued to a Chanhassen business. An application has been received from the Rotary Club of Lake Minnetonka-Excelsior (based in Excelsior) requesting approval of a premises permit at North Coop. Council approval of this request is scheduled for September 25, 2023. Off-Site Permits: issued to licensed organizations to conduct lawful gambling on a premises other than the organization's permitted premises for 12 events per calendar year, not to exceed three days per event. There is no history of the city issuing off-site permits. The proposed ordinance provides details of the application and approval processes for Premises Permits and Exempt and Excluded (Local) Permits for exempt organizations, including background investigation requirements. Investigation Fee or Gambling Tax There is an option for the city to either charge an investigation fee not to exceed $250, or impose a lawful gambling regulatory tax of up to 3% per year to to cover the cost of regulation, which includes site inspections, compliance reviews, corrective action, and trade area monitoring. If the regulatory tax is imposed, the city, by March 15 of each year, must submit an annual report to the GCB on the regulatory tax. Additionally, city documents pertaining to site inspections, compliance reviews, trade area monitoring, fines, penalties, or other corrective action involving local lawful gambling regulation must be provided to the GCB within 30 days of the inspection, compliance review, corrective action, etc. The city has not regulated gambling locations in the past. Staff recommends charging an investigation fee of $250 instead of imposing a regulatory tax of up to 3%. Contribution Requirements Contribution requirements follow state statute and remain unchanged from the current city code: Each organization licensed to conduct lawful gambling within the city shall contribute 10% of its net profits to a fund administered and regulated by the city; and Each organization licensed to conduct lawful gambling within the city shall expend 50% of its lawful purpose expenditures on lawful purposes conducted within the city's trade area (NOTE: the State of Minnesota authorizes up to 100%). Staff recommends that the contribution requirements remain unchanged. DISCUSSION At their September 11, 2023 work session, the City Council directed staff to proceed with adoption of the ordinance on September 25, 2023 and to include the following requirements: 1. Implement an annual $250 background investigation fee for Premises Permits 2. Remove the current application fee of $1.00 for Exempt Permits. 3. Limit organizations applying for Premises Permits to only those based in Chanhassen 6 The applicant of the pending Premises Permit application from the Rotary Club of Lake Minnetonka- Excelsior was notified to withdraw their application as the organization is not based in Chanhassen. The applicant responded that the organization's intent was to spend 100% of profits in Chanhassen, including both the Eastern Carver County and Minnetonka School Districts. City Manager Laurie Hokkanen shared this information with the Mayor and City Council. Upon review of the additional information, the City Council asked to delay the adoption of the ordinance for further discussion. BUDGET N/A RECOMMENDATION Staff is looking for City Council direction on whether or not to prohibit issuing Premises Permits to organizations that are not based in Chanhassen. ATTACHMENTS Proposed Ordinance League of Minnesota Cities Info Memo-Lawful Gambling City Code Chapter 10, Article V, Gambling 7 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN ORDINANCE AMENDING THE CITY CODE CONCERNING REGULATION OF LAWFUL GAMBLING THE CITY COUNCIL OF CHANHASSEN, MINNESOTA ORDAINS: SECTION 1. Article 10-V “Gambling” of the Chanhassen City Code is amended in its entirety to read as follows: Sec 10-150 Adoption of State Law by Reference The provisions of Minn. Stat. ch. 349, as they may be amended from time to time, with reference to the definition of terms, conditions of operation, provisions relating to sales, and all other matters pertaining to lawful gambling are hereby adopted by reference and are made a part of this ordinance as if set out in full. It is the intention of the Council that all future amendments of Minn. Stat. ch. 349, are hereby adopted by reference or referenced as if they had been in existence at the time this ordinance was adopted. Sec 10-151 City May be More Restrictive Than State Law The Council is authorized by the provisions of Minn. Stat. § 349.213, as it may be amended from time to time, to impose, and has imposed in this ordinance, additional restrictions on gambling within its limits beyond those contained in Minn. Stat. ch. 349, as it may be amended from time to time. Sec 10-152 Purpose The purpose of this ordinance is to regulate lawful gambling within the City of Chanhassen, to prevent its commercialization, to ensure the integrity of operations, and to provide for the use of net profits only for lawful purposes. Sec 10-153 Definitions In addition to the definitions contained in Minn. Stat. § 349.12, as it may be amended from time to time, the following terms are defined for purposes of this ordinance: (a)Board, as used in this ordinance, means the State of Minnesota Gambling Control Board. (b)City, as used in this ordinance, means the City of Chanhassen. (c)Council, as used in this ordinance, means the City Council of the City of Chanhassen. 8 2 (d)Licensed Organization, as used in this ordinance, means an organization licensed by the Board. (e)Local Permit, as used in this ordinance, means a permit issued by the city. (f)Trade Area, as used in this ordinance, means this city and each city and township contiguous to this city. Sec 10-154 Applicability This ordinance shall be construed to regulate all forms of lawful gambling within the city except bingo conducted within a nursing home or a senior citizen housing project or by a senior citizen organization if the prizes for a single bingo game do not exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, only members of the organization, residents of the nursing home or housing project, and their guests, are allowed to play in a bingo game, no compensation is paid for any persons who conduct the bingo, and a manager is appointed to supervise the bingo. Sec 10-155 Lawful Gambling Permitted Lawful gambling is permitted within the city provided it is conducted in accordance with Minn. Stat. §§ 609.75-.763, inclusive, as they may be amended from time to time; Minn. Stat. §§ 349.11- .23, inclusive, as they may be amended from time to time; and this ordinance. Sec 10-156 Council Approval Lawful gambling authorized by Minn. Stat. §§ 349.11-.23, inclusive, as they may be amended from time to time, shall not be conducted unless approved by the Council, subject to the provisions of this ordinance and state law. Sec 10-157 Application and Local Approval of Premises Permits Subd. 1. Any organization seeking to obtain a premises permit from the Board shall file with the city clerk an executed, complete duplicate application, together with all exhibits and documents accompanying the application as will be filed with the Board. Each organization licensed to conduct lawful gambling in the City shall complete the City's investigation form, submit copies of all state gambling application forms, all records and reports required to be filed within the State Gambling Control Board pursuant to Minnesota Statues, Chapter 349, and the rules and regulations promulgated thereunder, and submit any additional information required by the City. Subd. 2. Upon receipt of an application for issuance of a premises permit, the city clerk shall transmit the application to the county sheriff for review and recommendation. Subd. 3. The county sheriff shall investigate the matter and make the review and recommendation to the City Council as soon as possible, but in no event later than 45 days following receipt of the notification by the city. 9 3 Subd. 4. Organizations applying for a state-issued premises permit shall pay the city an investigation fee established by ordinance. This fee shall be refunded if the application is withdrawn before the investigation is commenced. If approved by the City Council and the Board, a licensed organization will be responsible for an annual investigative fee for conducting lawful gambling within the city. Subd. 5. The applicant shall be notified in writing of the date on which the Council will consider the recommendation. Subd. 6. The Council shall receive the county sheriff’s report and consider the application within 45 days of the date the application was submitted to the city clerk. Subd. 7. The Council shall by resolution approve or disapprove the application within 60 days of receipt of the application. Subd. 8. The Council shall deny an application for issuance or renewal of a premises permit for any of the following reasons: (a)An applicant’s officer, director, or other person in a supervisory or management position: (i)has been convicted of a felony within the last five (5) years; (ii) has ever been convicted of a crime involving gambling; (iii) is not of good moral character or repute; (iv)has ever been convicted of (a) assault, (b) a criminal violation involving the use of a firearm, or (c) making terroristic threats; (v)owes delinquent local, state or federal taxes, or is delinquent on any other city bill (b)The premises is in violation of any land use or zoning ordinance or owes delinquent local, state or federal taxes, or is delinquent on any other city bill. (c)Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three (3) years. (d)Violation by the on-sale establishment or organization leasing its premises for gambling of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three (3) years. (e)Lawful gambling would be conducted at premises other than those for which an on-sale liquor license has been issued. (f)Failure of the applicant to pay the investigation fee provided by Subdivision 4 within the prescribed time limit. (g)Operation of gambling at the site would be detrimental to health, safety, and welfare of the community. Otherwise, the Council shall pass a resolution approving the application. 10 4 Sec 10-158 Local Permits Subd. 1. No organization shall conduct lawful gambling excluded or exempted from state licensure requirements by Minn. Stat. § 349.166, as it may be amended from time to time, without a valid local permit. This section shall not apply to lawful gambling exempted from local regulation by Section 10-154 of this ordinance. Subd. 2. Applications for issuance or renewal of a local permit shall be on a form prescribed by the city. The application shall contain the following information: (a)Name and address of the organization requesting the permit. (b)Name and address of the officers and person accounting for receipts, expenses, and profits for the event. (c)Dates of gambling occasion for which permit is requested. (d)Address of premises where event will occur. (e)Copy of rental or leasing arrangement, if any, connected with the event, including rent to be charged to the organization, which rental or leasing arrangement may not provide for rental payments based on a percentage of receipts or profits from lawful gambling. (f)Estimated value of prizes to be awarded. Subd. 3. The fee for a local permit shall be as established by city ordinance. The fee shall be submitted with the application for a local permit. This fee shall be refunded if the application is withdrawn before the investigation is commenced. Subd. 4. Upon receipt of an application for issuance or renewal of a local permit, the city clerk shall transmit the notification to the county sheriff for review and recommendation. Subd. 5. The county sheriff shall investigate the matter and make review and recommendation to the City Council as soon as possible, but in no event later than 45 days following receipt of the notification by the city. Subd. 6. The applicant shall be notified in writing of the date on which the Council will consider the recommendation. Subd. 7. The Council shall receive the county sheriff’s report and consider the application within 45 days of the date the application was submitted to the city clerk. Subd. 8. The Council shall deny an application for issuance or renewal of a local permit for any of the following reasons: (a)Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three (3) years. (b)Violation by the on-sale establishment, or organization leasing its premises for gambling, of any state statute, state rule, or city ordinance relating to the operation of the establishment, 11 5 including, but not limited to, laws relating to the operation of the establishment, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three (3) years. (c)Operation of gambling at the site would be detrimental to health, safety, and welfare of the community. Otherwise, the Council shall approve the application. Sec 10-159 Revocation and Suspension of Local Permits Subd. 1. A local permit may be revoked or temporarily suspended for a violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling. Subd. 2. A local permit shall not be revoked or suspended until written notice and an opportunity for a hearing have first been given to the permitted person. The notice shall be personally served or sent by certified or registered mail. If the person refuses to accept notice, notice of the violation shall be served by posting it on the premises. Notice shall state the provision reasonably believed to be violated and shall also state that the permitted person may demand a hearing on the matter, in which case the permit will not be suspended until after the hearing is held. If the permitted person requests a hearing, the Council shall hold a hearing on the matter at least one week after the date on which the request is made. If, as a result of the hearing, the Council finds that an ordinance violation exists, then the Council may suspend or revoke the permit. Sec 10-160 Display of Permit All permits issued under state law or this ordinance shall be prominently displayed during the permit year at the premises where gambling is conducted. Sec 10-161 Notification Of Material Changes To Application An organization holding a state-issued premises permit or a local permit shall notify the city within ten (10) days in writing whenever any material change is made in the information submitted on the application. Sec 10-162 Contribution Of Net Profits To Fund Administered By City Subd. 1. Each organization licensed to conduct lawful gambling within the city pursuant to Minn. Stat. § 349.16, as it may be amended from time to time, shall contribute ten percent (10%) of its net profits derived from lawful gambling in the city to a fund administered and regulated by the city without cost to the fund. The city shall disburse the funds for charitable contributions as defined by Minn. Stat. § 349.12, subd. 7a, as it may be amended from time to time. Subd. 2. Payment under this section shall be made on the last day of each month. Subd. 3.The city’s use of such funds shall be determined at the time of adoption of the city’s annual budget or when the budget is amended. 12 6 Subd. 4.An organization that conducts gambling on fewer than five days in a calendar year is exempt from the requirements of this section. Sec 10-163 Designated Trade Area Subd. 1. Each organization licensed to conduct gambling within the city shall expend fifty percent (50%) of its lawful purpose expenditures on lawful purposes conducted within the city’s trade area. Subd. 2. This section applies only to lawful purpose expenditures of gross profits derived from gambling conducted at a premises within the city’s jurisdiction. Subd. 3.An organization that conducts gambling on fewer than five days in a calendar year is exempt from the requirements of this section. Sec 10-164 Records and Reporting Subd. 1. Organizations conducting lawful gambling shall file with the city clerk one copy of all records and reports required to be filed with the Board, pursuant to Minn. Stat. ch. 349, as it may be amended from time to time, and rules adopted pursuant thereto, as they may be amended from time to time. The records and reports shall be filed on or before the day they are required to be filed with the Board. Subd. 2. Organizations licensed by the Board shall file a report with the city proving compliance with the trade area spending requirements imposed by Section 10-163. Such report shall be made on a form prescribed by the city and shall be submitted annually. Sec 10-165 Hours of Operation Lawful gambling shall not be conducted between 1 a.m. and 8 a.m. on any day of the week. Sec 10-166 Penalty Any person who violates any provision of this ordinance; Minn. Stat. §§ 609.75-609.763, inclusive, as they may be amended from time to time; or Minn. Stat. §§ 349.11-349.21, as they may be amended from time to time; or any rules promulgated under those sections, as they may be amended from time to time, shall be guilty of a misdemeanor and subject to a fine of not more than $1,000 or imprisonment for a term not to exceed 90 days, or both, plus in either case the costs of prosecution. In addition, violations shall be reported to the Board and recommendation shall be made for suspension, revocation, or cancellation of an organization’s license. Sec 10-167 Severability If any provision of this ordinance is found to be invalid for any reason by a court of competent jurisdiction, the validity of the remaining provisions shall not be affected. 13 7 SECTION 2. Effective Date. This ordinance becomes effective on the date of its publication, or upon the publication of a summary of the ordinance as provided by Minn. Stat. § 412.191, subd. 4, as it may be amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as it may be amended from time to time. PASSED AND ADOPTED this 9th day of October, 2023 by the City Council of the City of Chanhassen, Minnesota. ATTEST: Kim Meuwissen City Clerk Elise Ryan, Mayor (Summary Ordinance Published in the Chanhassen Villager on October 19, 2023) 14 145 University Ave. West www.lmc.org 5/16/2022 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2022 All Rights Reserved This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. INFORMATION M EMO Lawful Gambling Learn what gambling is allowed in Minnesota, like pull-tabs and raffles, and which organizations may conduct them. Understand state regulations on lawful purposes for which gambling money may be spent, licensing, gambling managers, and more. Find out how cities can regulate gambling with “10 percent funds,” investigation fees, trade areas, and local gambling taxes. RELEVANT LINKS: I. Permitted Forms of Gambling Minn. Stat. §§ 609.75-.763. Minnesota law generally criminalizes gambling conducted within the state. However, there are exceptions. Permitted forms of gambling include: 25 U.S.C. 2701 et seq. Minn. Stat. § 3.9221. Minn. Stat. ch. 349A. Minn. Stat. ch. 240. Minn. Stat. § 240.30. Minn. Stat. ch. 349. Minn. Stat. § 609.75, subd. 3. Minn. Stat. § 609.761, subd. 3. Minn. Stat. § 609.761, subd. 4. • Native American gaming conducted pursuant to a tribal-state compact. • The Minnesota State Lottery. • Pari-mutuel horse racing. • Card club operations. • Lawful (often called “charitable”) gambling. • Private social bets. • Social skill games. • Social dice games. This memo focuses on lawful gambling. It is the only type of gambling subject to municipal regulation. II. Lawful gambling Minn. Stat. § 349.12, subd. 24. Lawful gambling is the “operation, conduct, or sale of bingo, raffles, paddlewheels, tipboards, and pull-tabs.” A. Bingo Minn. Stat. § 349.12, subd. 4. Minn. Stat. § 349.17. Gambling Control Board, Lawful Gambling Manual, Chapter 6: Bingo. “Bingo” is a game where each player has a bingo hard card, bingo paper sheet, or facsimile of a bingo paper sheet when used in conjunction with an electronic bingo device, for which a consideration has been paid, and is played in accordance with state regulations regarding the conduct of bingo. 1. Bar bingo Minn. Stat. § 349.12, subd. 3c. “Bar bingo” is a bingo game conducted in an area where intoxicating liquor or 3.2 percent malt beverages are sold and where the licensed organization conducts another form of lawful gambling. Bar bingo does not include linked bingo games. 15 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 2 2. Linked bingo Minn. Stat. § 349.12, subd. 25a. See Section II-F-Electronic gambling devices. “Linked bingo” is a bingo game played at two or more locations with a common prize pool, a common selection of numbers or symbols, and where the results are transmitted to all participating locations by satellite, telephone or other means by a linked bingo game provider. B. Raffles Minn. Stat. § 349.12, subd. 33. Gambling Control Board, Lawful Gambling Manual, Chapter 7: Raffles. A “raffle” is a game in which a participant buys a ticket (or other certificate of participation) for an event where prizes are awarded based on a method of random selection and all entries have an equal chance of winning. C. Paddlewheels Minn. Stat. § 349.12, subd. 29. Gambling Control Board, Lawful Gambling Manual, Chapter 9: Paddlewheels. A “paddlewheel” is a vertical wheel (or an electronic device that simulates a wheel) marked off into sections containing one or more numbers that, after being turned or spun, uses a pointer or marker to determine winning numbers matching purchased tickets. D. Tipboards Minn. Stat. § 349.12, subd. 34. Gambling Control Board, Lawful Gambling Manual, Chapter 8: Tipboards. A “tipboard” is a board, placard or other device containing a seal that conceals the winning number or symbol. Lawful gambling organizations often use tipboards for “meat raffles.” E. Pull-tabs Minn. Stat. § 349.12, subd. 32. Gambling Control Board, Lawful Gambling Manual, Chapter 5: Paper Pull-Tabs. See Section II-F-Electronic gambling devices. A “pull-tab” is a single folded or banded paper ticket, a multi-ply card with perforated break-open tabs, or a facsimile of a paper ticket used in conjunction with an electronic device, the face of which is initially covered to conceal one or more numbers or symbols, and where one or more of each set of tickets, cards, or facsimiles has been designated as a winner in advance. F. Electronic gambling devices 1. Electronic linked bingo Minn. Stat. § 349.12, subd. 12a. An electronic bingo device: • Is used to play electronic linked bingo. • Activates bingo numbers that are announced or displayed. • Identifies winning bingo patterns. • Is limited to 36 “faces” per game. 16 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 3 See Section V – State Regulation. • Requires coded entry to activate play, but does not allow the use of coins, tokens, or other currency. • May only be used for play against other bingo players in a bingo game. • Has no additional function as an amusement or gaming device other than electronic pull-tabs. • Has the capability to ensure adequate internal controls. • Permits monitoring by the Gambling Control Board. • Can be used by players who are visually impaired. 2. Electronic pull-tabs a. Games Minn. Stat. § 349.12, subd. 12c. An electronic pull-tab game: Minn. Stat. § 349.211. • Uses facsimiles of pull-tab tickets that are played on an electronic device. • Has a predetermined, finite number of winning and losing tickets (not to exceed 7,500 tickets). • Sells each ticket for the same price (which is not less than 25 cents per ticket). • Is played in conformance with all applicable rules for pull-tabs. • Complies with statutory prize limits. • Has a unique serial number that may not be regenerated. • Has an electronic flare that displays the game name, form number, and predetermined number of tickets in the game (as well as prize tier). • Does not mimic a video slot machine. See Section VII – Local regulation. Minn. Stat. § 349.1721 subd. 4. The hours of operation for the devices are limited to 8 a.m. to 2 a.m. (although local regulations may be more restrictive). All electronic pull- tab games must be sold and played on the permitted premises and may not be linked to other locations. Minn. Stat. § 349.1721, subd. 4. Before playing, individuals must present and register a valid picture identification card that includes the player’s address and date of birth. Players are also limited to the use of one device at a time. b. Devices Minn. Stat. § 349.12, subd. 12b. An electronic pull-tab device is a handheld, portable device that: • Is used to play one or more electronic pull-tab games. • Requires coded entry to activate play, but does not use coins, tokens, or other currency. • Requires that a player activates or opens each electronic pull-tab ticket, as well as each individual line, row, or column on each ticket. 17 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 4 • Maintains information regarding accumulated credits that may be applied to games or redeemed upon termination of play. • Has no spinning reels or other features that mimic a video slot machine. • Has no additional gambling functions other than electronic linked bingo. • May incorporate an “amusement game” feature but may not require additional consideration for use of that feature. • May have audio or visual enhancements. • Maintains (on non-resettable meters) a printed, permanent record of play. • Is not a pull-tab dispensing device. • Can be used by players who are visually impaired. 3. Electronic Raffle Selection System Minn. Stat. § 349.12 subds. 12e and 33b. An electronic raffle selection system is a system that uses a random number generator to select winning raffle numbers and includes raffle sales devices. A raffle sales device is an attendant-operated cashier station used as a point of sale for raffle tickets from which a raffle participant may purchase a raffle ticket to participate in an electronic raffle selection system. 4. Eligible locations Minn. Stat. § 349.17, subd. 9. Minn. Stat. § 349.1721, subd. 4. A lawful gambling organization that wants to offer electronic pull-tabs must sell paper pull-tabs at that location. The use of these electronic gambling devices (for bingo and pull-tabs) is limited to locations that are: • Licensed for the on-sale or off-sale of intoxicating liquor or 3.2 malt beverages (except for general food stores or drug stores that sell alcoholic beverages). • Bingo halls with a seating capacity of 100 or more (as determined under the local fire code). 5. Limitations Minn. Stat. § 349.17, subd. 9. Minn. Stat. § 349.1721, subd. 4. The number of electronic gambling devices allowed is based on the size of the premises and the location’s capacity as determined by the fire code. The lawful gambling organization is limited to having no more than: • Six devices in play at locations with 200 seats or less. • Twelve devices in play for locations with 201 seats or more. • Fifty devices in play for locations where bingo is the primary business. 18 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 5 See Minn. Stat. § 349.12 subd. 12b(6). State law allows for electronic devices that can be used for both pull-tab and linked bingo games, although the limitations would still apply. For example, an organization operating at a location with 200 seats or less could have 12 “combo” devices, but at any given time, only six could be “in play” for electronic pull-tabs and only six could be in play for electronic linked bingo. III. Eligible organizations Minn. Stat. § 349.12, subd. 28. Lawful gambling may only be conducted by: Minn. Stat. § 349.12, subd. 16a. Minn. R. 7861.0210, subp. 45. Minn. R. 7861.0210, subp. 50. • Fraternal organizations. • Religious organizations. • Veterans’ organizations. • “Other” nonprofit organizations. Minn. R. 7861.0210, subp. 39. For the purpose of lawful gambling eligibility, “other” nonprofit organizations meet at least one of the following criteria: IRS – Charities and other Nonprofits. Minn. Stat. ch. 317A. Minnesota Secretary of State. • Have a current letter of tax exemption from the Internal Revenue Service (IRS). • Are incorporated as nonprofit corporations and registered with the Minnesota Office of the Secretary of State. • Are affiliates, subordinates, or chapters of a statewide parent organization that qualifies as a nonprofit. Minn. R. 7861.0220. Gambling Control Board. Minn. Stat. § 349.16, subd. 2. Otherwise eligible organizations may not conduct lawful gambling without first obtaining a license from the state of Minnesota through the Gambling Control Board (Board). To qualify, an organization must: See Section V – C – Gambling managers. • Have at least 15 active members at the time of its initial license application and at least 13 members eligible to vote on gambling matters thereafter. • Have been in existence for the most recent three years preceding application. • Identify a qualified gambling manager. • Not exist for the sole purpose of conducting gambling. Qualified organizations include American Legions, Veterans of Foreign Wars, Moose Lodges, local athletic associations, and churches. Minn. Stat. § 424A.001, subd. 4. LMC information memo, Fire Department Management and Liability Issues. Cities are not eligible organizations. As a result, neither a city nor any city department may conduct lawful gambling. However, while a city fire department is ineligible, a fire relief association may conduct lawful gambling because it is a separately incorporated nonprofit organization within the meaning of the law. 19 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 6 IV. Revenues and expenditures Minn. Stat. § 349.15. Organizations conduct lawful gambling to raise money, but are not free to spend it any way they please. Lawful gambling proceeds may only be used for allowable expenses or lawful purposes. A. Allowable expenses Minn. Stat. § 349.12, subd. 3a. Gambling Control Board, Lawful Gambling Manual, Chapter 12: Allowable Expenses. Allowable expenses include purchases of goods, services, or other items directly related to the conduct of lawful gambling. Advertising expenditures are also allowable expenses, provided the advertisement only publicizes the conduct of lawful gambling by the organization, and lawful gambling profits do not pay for any non-lawful gambling-related content. Minn. Stat. § 349.15, subd. 1. Licensed organizations obtain a rating from the Board based on a comparison between annual lawful purpose expenditures and available profits for the same 12-month period. An organization that expends: • Fifty percent or more of gross profits on lawful purposes will receive a five-star rating. • More than 40 percent but less than 50 percent of gross profits on lawful purposes will receive a four-star rating. • More than 30 percent but less than 40 percent of gross profits on lawful purposes will receive a three-star rating. • More than 20 percent but less than 30 percent of gross profits on lawful purposes will receive a two-star rating. • Less than 20 percent of gross profits on lawful purposes will receive a one-star rating. Minn. Stat. § 349.15, subd. 1. Any organization that fails to obtain at least a three-star rating (or a two- star rating if the organization conducts lawful gambling in a location where the primary business is bingo) will be automatically placed on probation for one year. If the organization is unable to raise its rating after the probationary term, the Board may suspend the organization’s license or impose a civil penalty. Minn. Stat. § 349.15, subd. 1. When determining the appropriate punishment, the Board will consider any “unique factors or extraordinary circumstances” that caused an organization to not meet the minimum rate of profitability, including but not limited to: • The purchase of capital assets necessary to conduct lawful gambling. • Construction that impaired access to gambling premises. • Flooding, tornadoes, or other catastrophes that had a direct impact on the gambling operations. 20 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 7 Minn. Stat. § 349.151, subd. 4. Minn. Stat. § 349.15. Although there are limitations on the penalties the Board may normally impose, civil penalties for violating the expense limitation may be up to $10,000. B. Lawful purposes Minn. Stat. § 349.12, subd. 25. Lawful purposes for which profits from lawful gambling may be expended include: Minn. Stat. § 349.154. • Contributions to nonprofit or festival organizations. • Contributions to individuals or families suffering from poverty, homelessness, or disability. • Contributions to programs recognized by the Department of Human Services for the education, prevention, or treatment of problem gambling. • Contributions to or expenditures on registered or accredited public or private nonprofit educational institutions. • Contributions to an individual, public or private nonprofit educational institution registered with or accredited by this state or any other state, or to a scholarship fund of a nonprofit whose primary mission is to award scholarships, for defraying the cost of education to individuals where the funds are awarded through an open and fair selection process. • Contributions funding activities by an organization or government entity that recognizes military service to the United States, the state of Minnesota, or a community. • Contributions for recreational, community, and athletic facilities and activities intended primarily for persons under age 21, provided that such facilities and activities do not discriminate on the basis of gender, and the organization complies with other statutory requirements. • Payment of federal, state, and local taxes. • Contributions to the United States, the state of Minnesota, or any political subdivision, or any agency or any subdivision thereof, other than a direct contribution to a law enforcement or prosecutorial agency. • Contributions to or expenditures on projects approved by the commissioner of Natural Resources for wildlife management projects that benefit the public at large, grant-in-aid (or other trail) maintenance and grooming, and supplies and training for safety training and education programs coordinated by the Department of Natural Resources. • Nutritional programs, food shelves, and congregate dining rooms primarily for persons who are age 62 or older or disabled. 21 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 8 • Contributions to a community arts organization, or an expenditure to sponsor arts programs in the community, including but not limited to visual, literary, performing, or musical arts. • Contributions to honor an individual’s humanitarian service as demonstrated through philanthropy or volunteerism to the United States, the state of Minnesota, or a local community. Minn. Stat. § 349.12, subd. 25 (c). Minn. Stat. § 471.6151. Gambling Control Board, Lawful Gambling Manual, Chapter 13: Lawful Purpose Expenditures. Lawful gambling profits may not be used for the purpose of influencing the nomination or election of a candidate for public office, promoting or defeating a ballot question, or for influencing the governmental decision- making process. Organizations may not make a contribution to a city with the knowledge that the city intends to use the contribution for a pension or retirement fund, nor may cities use any contributions derived from lawful gambling for the benefit of a pension or retirement fund. While an organization can make contributions to a 501(c)(3) or other entity, it may not if the purpose (or effect) will be noncompliance with lawful purpose restrictions or requirements. V. State regulation Minn. Stat. § 349.151. Minn. R. ch. 7861. Gambling Control Board. The Board has the authority to make rules and regulate lawful gambling to ensure it is conducted in the public’s interest. It issues organization licenses, premises permits, and gambling manager licenses. The Board has the authority to suspend or revoke licenses and permits and may impose civil penalties up to $1,000 for each violation of the state’s gambling laws or rules. A. Organization licenses Minn. Stat. § 349.16. Minn. Stat. § 349.155. Gambling Control Board, Gambling Forms. Organizations must be licensed by the Board to conduct most types of lawful gambling. An organization desiring a gambling license must obtain an application from the Board. If the application complies with all legal requirements, the Board will grant the license. Minn. Stat. § 349.16. Minn. R. 7861.0220. Gambling Control Board, Lawful Gambling Manual, Chapter 1: Organization License. Licenses issued are perpetual and valid unless suspended or revoked by the Board, terminated by the organization, or if the license lapses. A licensed organization must notify the Board within 10 days when any changes in the application information occur. The license, when issued, is not transferable from one organization to another. Minn. Stat. § 349.16, subd. 3a. A license will be considered to have lapsed if the organization does any of the following: Minn. Stat. § 349.167. • Failed to conduct and report any gambling sales activity within seven months from the date of the last gambling activity. • Failed to have a gambling manager as required. • Failed to pay annual license and permit fees. 22 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 9 Minn. Stat. § 349.19 subd. 8. • Surrenders, withdraws, or otherwise terminates the license, and files a termination plan. Minn. Stat. § 349.16, subd. 3a. When a license is determined to have lapsed, the Board may take one of the following actions: Minn. Stat. § 349.155 subd. 5. Minn. Stat. § 349.19 subd. 8. Minn. Stat. § 349.151, subd. 4. Minn. Stat. § 349.151, subd. 7. Minn. Stat. § 349.1641. • Conduct a contested case hearing to revoke or suspend a license. • Require the organization to file a termination plan. • Enter a revocation order as of the date the license was considered lapsed. • Impose a civil penalty. • Order corrective action. • Summarily suspend the license. Minn. Stat. § 349.16, subd. 6. There is an annual fee of $350 for an organization’s license. Organizations that expect to receive less than $100,000 in gross annual receipts may request a waiver of the organization license fees. Minn. Stat. § 349.16, subd. 6a. Minnesota Revenue Lawful Gambling Monthly Tax. An organization must also report and pay to the commissioner of Revenue a monthly regulatory fee of 0.125 percent of the monthly gross receipts from lawful gambling conducted each month. Failing to pay the monthly regulatory fees in a timely manner may result in disciplinary action. B. Premises permits Minn. Stat. § 349.165. Minn. R. 7861.0240. Gambling Control Board Lawful Gambling Manual, Chapter 3: Premises Permits and Leases. An organization applying for a gambling license must also apply for a premises permit to conduct lawful gambling at any specific location. The Board will not grant a license to an organization that has not applied for at least one premises permit. Because premises permits are location-specific, licensed organizations that want to conduct lawful gambling at multiple locations must first obtain a separate premises permit for each place before lawful gambling can occur. Minn. Stat. § 349.213. In re Dead Broke Saddle Club, No. A03-306 (Minn. Ct. App. Jan. 13, 2004) (unpublished opinion). The Board may not issue a premises permit unless the organization submits with its application a resolution from the city council approving the permit. The resolution must have been adopted within 90 days of the date of the application for the new permit. Minn. Stat. § 349.165. Premises permit fees are $150 per year. The premises permit(s) runs concurrently with the organization’s license and is perpetual unless revoked or suspended by the Board, or terminated by the organization. C. Gambling managers Minn. Stat. § 349.167. Minn. R. 7861.0230. The Board will not grant a license unless the applying organization has identified a gambling manager who will be licensed by the Board at the time the organization receives its license. 23 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 10 Gambling Control Board, Lawful Gambling Manual, Chapter 2: Gambling Manager License. Minn. Stat. 349.12 subd. 19. All lawful gambling conducted by a licensed organization must be conducted under the supervision of a licensed gambling manager, someone who has passed the Board’s gambling manager examination and receives continuing education training at least once during each calendar year. The gambling manager must have been an active member of the organization for at least the most recent 90 days at the time of the application for a gambling manager license. The gambling manager is responsible for ensuring that the organization conducts lawful gambling in compliance with all applicable laws and administrative rules. The gambling manager is also responsible for all receipts derived from lawful gambling. Minn. Stat. § 349.167, subd. 2. Upon the death, disability, or termination of the gambling manager, an organization must: • Contact the Board within one business day and establish a plan to replace the gambling manager. • Submit a complete application and fee within four business days. Minn. Stat. § 349.167 subd. 2. Gambling Manager Application. The fee for a gambling manager license is $100. The license runs concurrent with the organization license unless the gambling manager’s license is suspended or revoked by the Board, or terminated by the organization or gambling manager. In addition to the license, the gambling manager must maintain a dishonesty bond in the sum of $10,000 in favor of the organization, conditioned on the faithful performance of the manager’s duties. D. Off-site permits Minn. Stat. § 349.165, subd. 5. Application to Conduct Off- site Gambling. See Section VII - E - Investigation fees. There are limited circumstances where a licensed organization may hold lawful gambling events at a location for which it does not hold a premises permit. Subject to local approval, the Board may issue off-site permits in connection with a county fair, the state fair, a church festival, or a civil celebration. Up to 12 off-site events are allowed each calendar year, and each event is limited to three days. Neither the Board nor the city may charge a fee for issuing an off-site permit. E. Bingo hall licenses A distinct bingo hall license is no longer required in the state of Minnesota. VI. Exclusions and exemptions The state does not license all types of lawful gambling. State law provides exclusions and exemptions for some lawful gambling events. 24 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 11 It is important for cities to know which events are excluded or exempted from state licensing because they may want to regulate these events through local permits. A. Excluded gambling Minn. Stat. § 349.166, subd. 1. The following types of gambling are excluded from state licensing: • Bingo conducted by an organization in conjunction with a county fair, state fair, or a civic celebration for no more than 12 consecutive days. The organization can make no more than four separate applications for activities applied for and approved per calendar year. This exclusion does not apply to linked bingo games. • Bingo conducted by an organization on four or fewer days in a calendar year. This exclusion does not apply to linked bingo games. • Bingo conducted within a nursing home or senior citizens housing project, or by a senior citizens’ organization. This exclusion applies if: • The prizes for a single bingo game do not exceed $10. • Total prizes awarded at a single bingo occasion do not exceed $200. • Only members, or the guests, of the senior citizen organization, nursing home, or housing project are allowed to play. • No compensation is paid to any persons who conduct the bingo game. • A manager is appointed to supervise the bingo. • Raffles conducted by an organization that does not award raffle prizes with a total value in excess of $1,500 in a calendar year or $5,000 if the organization is a 501(c)(3). Minn. R. 7861.0330. Minn. Stat. § 349.213. Application for Exempt Bingo. An organization that conducts the first two types of excluded bingo must register with the Board and obtain prior approval by the local governing body. Registration with the Board is not required for senior citizen or nursing home bingo, or raffles that award less than $1,500 in a calendar year. Minn. Stat. § 349.213. See Local Gambling Permit Application, LMC Model Form. Approving a Lawful Gambling Premises Permit, LMC Model Resolution. Denying a Lawful Gambling Premises Permit, LMC Model Resolution. While the language is subject to interpretation, cities appear to have the authority to require local permits for organizations that conduct the first two types of excluded bingo and raffles with prizes under $1,500 in a calendar year. The raffles do not require registration with the Board. However, the law likely prohibits cities from requiring a local permit to conduct senior citizen or nursing home bingo. 25 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 12 B. Exempted gambling Minn. Stat. § 349.166, subd. 2. Certain lawful gambling events are exempt from the state licensing requirements. Under state law, bingo (except linked bingo games), raffles, paddlewheels, tipboards, and pull-tab operations may be conducted by an organization without a license, if the following conditions are met: Application for Exempt Permit. • The organization conducts lawful gambling on five or fewer days in a calendar year. • The organization does not award more than $50,000 in prizes for lawful gambling in a calendar year. • The organization pays a fee of $100 and submits a Board-prescribed application in writing not less than 30 days before each lawful gambling occasion (the fee increases to $150 if application is postmarked or received less than 30 days before the event). The application must include the date and location of the occasion, the types of lawful gambling to be conducted, and the prizes to be awarded. • The organization notifies the city 30 days before the lawful gambling occasion (60-day notice is required in a city of the first class). • The organization purchases all gambling equipment and supplies from a licensed distributor. • The organization complies with all of the Board’s reporting requirements. Minn. R. 7861.0340. The application submitted to the Board must include local government approval. A currently-licensed organization may not obtain an exemption permit but may once it is no longer licensed to perform lawful gambling. Minn. Stat. § 349.213 subd. 1. See Section VII – A - Local permits. Cities may require organizations that conduct exempted lawful gambling to obtain local permits. The fee for a local permit may not exceed $100. VII. Local regulation Minn. Stat. § 349.213. See Regulating Lawful Gambling, LMC Model Ordinance. While cities may not require state-licensed lawful gambling organizations to obtain local gambling licenses or permits, state law does provide cities the authority to regulate lawful gambling. Cities may adopt gambling regulations that are more stringent than state law or prohibit lawful gambling altogether. A city could restrict the conduct of lawful gambling to certain hours or certain days of the week. A city could prohibit licensed organizations from employing non-members and limit the prizes to be awarded. Minn. Stat. § 349.213. Cities are specifically authorized to: 26 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 13 Minn. Stat. § 349.166. See Local Gambling Permit Application, LMC Model Form. Approving a Lawful Gambling Premises Permit, LMC Model Resolution. Denying a Lawful Gambling Premises Permit, LMC Model Resolution. Minn. Stat. § 349.16, subd. 8. • Require a local permit for the conduct of gambling exempt from state licensing requirements. • Require organizations to make specific expenditures of up to 10 percent of the net profit from lawful gambling. • Require organizations to contribute 10 percent of the net profit from lawful gambling to a fund administered by the city. • Require an organization to expend all or a portion of its expenditures within the cities trade area. • Charge an investigation fee or impose a gambling tax. Minn. Stat. § 349.213, subd. 1(h). A more stringent regulation or prohibition must apply equally to all forms of gambling within the jurisdiction, with one exception: paddlewheels. A city may exclusively prohibit the use of paddlewheels within its jurisdiction. A. Local permits Minn. Stat. § 349.213, subd. 1(b). Section VI – Exclusions and exemptions. Cities may require a local permit for the conduct of lawful gambling exempt from state licensing requirements. The fee for a local permit may not exceed $100. B. Specific expenditures Minn. Stat. § 349.213, subd. 1(d). Cities may require organizations to make specific expenditures of up to 10 percent of net profits derived from lawful gambling but must be careful when enacting such a regulation. Requiring specific expenditures may violate the U.S. Constitution, particularly when the city designates too specific a cause, and approval of a gambling license or permit is conditional on the organization abiding by the regulation. U.S. Const. amend. I. NAACP v. Alabama, 357 U.S. 449, 78 S.Ct.1163 (1958). Wooley v. Maynard, 430 U.S. 705, 97 S.Ct.1428 (1977). The First Amendment prohibits any level of government from making laws that abridge the freedom of speech or the right of people to peaceably assemble. The Supreme Court has held that the First Amendment implies that people shall have a right to freedom of association. The First Amendment also provides some protections from compelled association (requiring an individual to support ideals or beliefs with which he or she disagrees). Int’l Ass’n of Machinists v. Street, 367 U.S. 740, 81 S.Ct. 1784 (1961). Compelling an individual to support an organization or cause that he or she does not agree with is an infringement of that person’s First Amendment rights. It is improper for a city to condition the granting of a benefit (approval of a lawful gambling operation) on the recipient’s relinquishment of a constitutional right (freedom of association). Therefore, a municipal regulation that places a condition for the approval of a gambling license on the organization contributing to a cause it may not support is subject to challenge on constitutional grounds. 27 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 14 Cities should use caution and work with their city attorney before requiring specific expenditures from gambling organizations. C. City-administered funds Minn. Stat. § 349.213, subd. 1(f). Annual Report -10% Lawful Gambling Contribution Fund. See Regulating Lawful Gambling, LMC Model Ordinance. A city may accept donations from a gambling organization but may not require a donation as a condition of license approval or permit issuance. A city can by ordinance require organizations to contribute up to 10 percent per year of their net profits derived from lawful gambling to a fund administered by the city. A report must be submitted to the Board by March 15 of each year. The city must also acknowledge financial contributions of organizations conducting lawful gambling to the community and to the recipients of the funds. The acknowledgement may occur in communications about the funds as well as in the distribution of the funds. Minn. Stat. § 349.12, subd. 7a. Minn. Stat. § 349.12, subd. 25(10). The city may only disburse the funds for charitable contributions. Therefore, although a city may not require direct payments from a gambling organization to any city department, a city can establish a fund and disburse the proceeds of that fund to a city department for lawful purposes, such as a city park system. No direct contributions or payments of gambling money may be made to a law enforcement or prosecutorial agency. D. Trade areas Minn. Stat. § 349.213, subd. 1(g). See Regulating Lawful Gambling, LMC Model Ordinance. A city may by ordinance require those organizations conducting lawful gambling within its jurisdiction to expend all or a portion of their expenditures on lawful purposes conducted or located within a city’s trade area. The ordinance must define the trade area. A city’s trade area must include every city and township contiguous to the defining city. The ordinance must also specify the percentage of expenditures an organization must make within the trade area. E. Investigation fees Minn. Stat. § 349.16, subd. 8. A city may assess an annual investigation fee on organizations that apply for state-issued premises permits or otherwise conduct lawful gambling operations within the jurisdiction. The fee may not exceed: • $500 in cities of the first class. • $250 in cities of the second class. • $100 in all other cities. Minn. Stat. § 349.213, subd. 3. Cities that charge an investigation fee may not impose a local gambling tax. 28 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 15 F. Local gambling tax Minn. Stat. § 297E.02. Minn. Stat. § 349.213, subd. 3. With certain exceptions, the state generally levies an 8.5 percent tax on lawful gambling. A city may impose a local gambling tax on licensed organizations of up to 3 percent per year of the gross receipts from gambling, less prizes actually paid out. The tax must only raise the revenue necessary to cover the cost of regulating lawful gambling. A city may not use these tax revenues for any other purpose. Thus, if regulating lawful gambling only costs the city an amount equal to 2.5 percent of the gambling revenues, then the city may only impose a tax of 2.5 percent, not the 3 percent maximum. Lawful Gambling Regulatory Tax Annual Report. The city must file an annual report with the Board by March 15 showing the amount of revenue raised by the tax and the use of the tax proceeds. Copies of the required form are available from the Board. All documents pertaining to local site inspections, fines, penalties or other corrective actions must be shared with the Board within 30 days of filing. Minn. Stat. § 349.213, subd. 3. If a city imposes a gambling tax, it may not assess an investigation fee against lawful gambling organizations. VIII. Gambling in the municipal liquor store See LMC Information Memo, Operating a Municipal Liquor Store. Many cities lease space in the municipal liquor store to lawful gambling organizations because of the additional business and revenue gambling can draw. However, allowing gambling in the municipal liquor store raises a number of questions that should be resolved before city property is used for lawful gambling. IX. High school raffles Minn. Stat. § 609.761, subd. 5. School districts, or nonprofit organizations created primarily to support the programs of a school district, may conduct raffles if: • Raffle tickets are sold, and a drawing is conducted only at a high school event sponsored by the school district. • All raffle tickets are sold for the same price. • Raffle tickets are sold only to people 18 years of age or older attending the event. • The drawing is held during or immediately after the conclusion of the event. • Half the gross receipts from the sale of tickets are awarded as prizes for the raffle, and the remaining half may only be used to defray the school district’s costs of sending event participants to high school activities held at other locations. 29 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 16 Minn. Stat. § 609.761, subd. 5(5). If a school district’s (or nonprofit’s) gross receipts from the conduct of raffles exceeds $12,000 in a calendar year or $5,000 in a single raffle, it must report the gross receipts received, the total expenses, total prizes, and an accounting of expenditures to the Board annually. Because high school raffles are outside the lawful gambling chapter, and state law dedicates all of the receipts to specific purposes, cities probably do not have authority to regulate these activities. Cities that wish to regulate gambling conducted at high school events should consult their city attorney. X. Liquor raffles Minn. Stat. § 340A.707. A nonprofit organization conducting a silent auction, raffle, or other fundraising event may conduct live, on-premises auctions or raffles of wine, beer, or intoxicating liquors—provided that the funds from the auction or raffle are dedicated to the charitable purposes of the nonprofit organization, that such auctions or raffles are limited to not more than six occasions per year, and that the alcohol may only be auctioned or raffled to persons who demonstrate they are 21 years of age or older and do not show signs of obvious intoxication. An organization that intends to award a liquor prize as part of a raffle must qualify as a nonprofit under Minnesota Statutes and Rules, and would be subject to the same local and state regulations as any other raffle. Cities with questions concerning their role regulating these events should consult their city attorney or the state Alcohol and Gambling Enforcement Division. XI. Enforcement Lawful gambling benefits cities by providing entertainment for citizens and raising revenues to support worthy purposes. However, because of the large sums of money involved in lawful gambling, there is great potential for unlawful activity. Illegal gambling activity could result in loss of faith in the integrity of lawful gambling, defrauded citizens and organizations, and even organized crime. Cities must work with lawful gambling organizations and state agencies to ensure lawful gambling continues to have a positive impact upon the community. Gambling Control Board. The Legislature created the Gambling Control Board to maintain the integrity of lawful gambling through licensing and regulation. A city that believes an organization conducting lawful gambling is not complying with the lawful gambling laws should contact the Board for assistance. 30 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 17 Department of Public Safety’s Alcohol and Gambling Enforcement Division. The Department of Public Safety’s Alcohol and Gambling Enforcement Division investigates allegations of criminal conduct related to all forms of gambling. If a city suspects that criminal gambling laws are being violated, it should contact Alcohol and Gambling Enforcement. 31 ARTICLE V. - GAMBLING Sec. 10-150. - Lawful gambling permitted. Lawful gambling conducted pursuant to M.S. ch. 349, is authorized within the city and shall be operated in accordance with the terms and conditions specified in this article, other applicable provisions of the City Code, and state and federal laws and regulations. (Ord. No. 156, § 1, 10-28-91) Sec. 10-151. - Authorized organizations. An organization shall not be eligible to conduct lawful gambling in the city unless it meets the qualification in M.S. § 349.16, subd. 2. (Ord. No. 156, § 1, 10-28-91; Ord. No. 371, § 16, 4-12-04) Sec. 10-152. - Distribution of proceeds. (a) Each organization licensed to conduct gambling within the city shall contribute to the city, for distribution by the city for lawful purposes, at least ten percent of the organization's net profits derived from lawful gambling. For purposes of this section, net profits are profits less amounts expended for allowable expenses. (b) Each organization conducting lawful gambling within the city must expend at least 50 percent of its net profits derived from lawful gambling on lawful purposes conducted or located within the city or any municipality contiguous to the city. The contribution required in subsection (a) above shall be considered as part of the 50 percent expenditure. (c) An organization that conducts gambling on fewer than five days in a calendar year is exempt from the requirements of this section. (Ord. No. 156, § 1, 10-28-91; Ord. No. 371, § 17, 4-12-04) Sec. 10-153. - Filing of records; investigations. (a) Every organization licensed to conduct gambling in the city shall file with the city manager or city manager's designee, upon request, all records and reports required to be filed within the state gambling control board pursuant to M.S. ch. 349, and the rules and regulations promulgated thereunder. (b) Each organization licensed to conduct gambling in the city shall complete the city's investigation form and submit any additional information required by the city. (c) Any organization leasing premises for the conducting of lawful gambling shall, upon request from the city manager or city manager's designee, file with the city a copy of the lease within one week after execution of the lease. The lease shall not provide for rental payments based on a percentage of receipts or profits from lawful gambling. (d) Every gambling event in the city conducted by an organization under state license shall be open to inspection by city employees and the county sheriff's department. 32 (e) The city may inspect, at any reasonable time without notice or search warrant, all records of a licensed organization required to be maintained by the state gambling control board. (Ord. No. 156, § 1, 10-28-91; Ord. No. 298, § 2, 2-14-00) Sec. 10-154. - Qualifications. The city council shall not adopt a resolution approving a premises permit or bingo hall license from any applicant which has an officer, director, or other person in a supervisory or management position, who: (1) Has ever been convicted of a felony; (2) Has ever been convicted of a crime involving gambling; (3) Is not of good moral character and repute; (4) Has ever been convicted of (i) assault, (ii) a criminal violation involving the use of a firearm, or (iii) making terroristic threats; or (5) Owes delinquent local, state, or federal taxes, or is delinquent on any other city bill. (6) Is in violation of any land use or zoning ordinance including the premises proposed to be licensed. (Ord. No. 156, § 1, 10-28-91) Secs. 10-155—10-159. - Reserved. 33 City Council Item October 9, 2023 Item Highway 5 and 82nd Street Project Updates File No.Eng 25-03 and 24-06 Item No: A.2 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Charlie Howley, Director of Public Works/City Engineer Reviewed By Laurie Hokkanen SUGGESTED ACTION Discussion only Motion Type N/A Strategic Priority Asset Management SUMMARY The contracted Project Manager for the County will provide an update on the status of the Highway 5 and 82nd Street projects. A well-attended public open house was held last week at the Arboretum for both projects. BACKGROUND These two projects, along the the city's Crimson Bay Road project, are subsets of the larger Arboretum Area Transportation Plan (AATP). DISCUSSION The presentation will provide an overview of the projects' scope, funding, status, and schedule. BUDGET 34 N/A RECOMMENDATION N/A ATTACHMENTS Carver County Transportation Priorities 35 Stieger Lake L n . Schutz Lake Tamarack Lake Lake St. Joe Minnewashta Lake Stieger Lake Lake Auburn Lake Zumbra Lake Virginia Minnesota Landscape Arboretum Deer Run Golf Club Lions Park Diethelm Park Lake Minnewashta Regional Park Carver Park Reserve Downtown Victoria Chanhassen Chaska 18 11 11 5 5 41 7 W. 78th St. 13 13 18Hazeltine Blvd.Church Lake Blvd.Bavari a Rd. Vict or i a Dr . Lyman B l v d . P a r k D r . 7th St. W 80th St. R o lli n g A cr es Rd.Chestnut St. N Century Blvd.McKnight Rd.Minnewashta Pkwy.Interlaken W 8 2 n d S t .Dogwood Rd.Lake Minnetonka LR T R e g i o n a l TrlCarver County, Minnesota Investment Needs Carver County has more than 60% of the County’s Local Option Transportation Sales Tax planned for investments to the state trunk highway system, including the Highway 5 improvement projects. One of few regional routes, State Highway 5 (MN 5) connects the rapidly growing suburban communities of Victoria, Chanhassen, and Chaska to daily needs and the vast Minneapolis/Saint Paul destinations. All Projects: - Prioritize a safe and continuous pedestrian and bicycle system. - Are in preliminary design and environmental documentation. Requests: $7M - FY24 Congressionally-Directed Spending $15M - Safe Streets and Roads for All (SS4A) $25M - Rural Surface Transportation $25M - Rebuilding American Infrastructure with Sustainability and Equity (RAISE) 2024 resubmit Funds Secured: $24.4M - Metropolitan Council (STBGP & PROTECT Funds) $30M - MN State Bonding $2M FY23 Congressionally-Directed Spending currently being used to further environmental documentation and preliminary design $9.4M - MnDOT and Cities of Victoria and Chanhassen $40M - Carver County Funds 82nd Street Project3 Gravel to pavement. This project will attract 5,000 local travelers from MN 5. $23M Total - Fully Funded! Highway 5 Improvements1 $114M Total $37M Gap Capacity expansion and safety project. $77M Secured Victoria Downtown West Project2 $8.5M Total $5M Secured Downtown mobility and safety project. $3.5M Gap 36 Transportation Priorities Over the last five years the project partners developed a shared vision through strong community engagement and partnerships. Today, MN 5 is at a critical tipping point with many severe crashes (387 - one fatal - in 10 years) and a traffic demand (27,000+) well above the threshold of a two-lane section. This results in backups exceeding two miles, and dangerous crossings for all users. Peak-hour travel speeds are reduced to 35 mph on a 55 mph posted roadway. Carver County, Minnesota MINNESOTA 161,440 Carver County Population 2040 Forecasted108,891 Carver County Population 2021 Met Council 28,331 Carver County Population 1970 Census Data C a r v e r C o u n t y i s t h e fastest grow ing coun ty in M in n esot a ! A n t ic ip a t e d grow th is expected to add 10,700 m o re trip s to MN 5 in the project area.Our Mission: To provide a safe and reliable transportation system for all users while protecting our environment. 51% reduction in crashes 56% delay reduction Expected investment results: Continuous bicycle and pedestrian system 37 City Council Item October 9, 2023 Item Chanhassen Civic Campus - City Council Update File No.Item No: A.3 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Laurie Hokkanen, City Manager Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority Operational Excellence SUMMARY BKV Group, Kraus-Anderson, and HKGi will attend the work session to give an update on the project and budget. The project team is meeting on Friday, October 6 and materials may be added to the packet following that meeting. More information on the project can be found at: https://storymaps.arcgis.com/stories/f6620830c1b9465db9b9d5005169cb1c BACKGROUND DISCUSSION 38 BUDGET RECOMMENDATION ATTACHMENTS 39 City Council Item October 9, 2023 Item Chanhassen Bluffs Sports Complex Update File No.Item No: A.4 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Laurie Hokkanen, City Manager Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority Development & Redevelopment SUMMARY The City Council will receive information and discuss the scope of the project, updated project costs, and timelines. BACKGROUND DISCUSSION BUDGET RECOMMENDATION 40 ATTACHMENTS 41 City Council Item October 9, 2023 Item Future Work Session Schedule File No.Item No: A.5 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Kim Meuwissen, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY The City Council is tentatively scheduled to hold the following work sessions: October 23, 2023 November 13, 2023 Presentation of Preliminary 2024 Utility Fund Budgets and 2024-2028 CIP SAC Policy discussion November 27, 2023 Final Review of Proposed 2024 Levy, Budgets, and CIP for all funds Downtown Traffic Study upodate Downtown Wayfinding update 42 December 11, 2023 City Council Roundtable Pending items: Riley Purgatory Bluff Creek Watershed District presentation AIS inspection discussion Road funding discussion Short-Term Rental Ordinance assessment Police Contract and Service Levels Discussion BACKGROUND Staff or the City Council may suggest topics for work sessions. Dates are tentative until the meeting agenda is published. Work sessions are typically held at 5:30 pm on the second and fourth Monday of each month in conjunction with the regular City Council meeting, but may be scheduled for other times as needed. DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 43 City Council Item October 9, 2023 Item Recognition of Donation from the Chanhassen Athletic Association File No.Item No: C.1 Agenda Section PUBLIC ANNOUNCEMENTS Prepared By Jerry Ruegemer, Park and Recreation Director Reviewed By Laurie Hokkanen SUGGESTED ACTION Recognize the Chanhassen Athletic Association for their Donation Motion Type N/A Strategic Priority N/A SUMMARY The Chanhassen Athletic Association (CAA) is a parent/adult-led organization that has successfully administered youth sports programs within the community for over 50 years. The association has partnered with the city on many occasions to work towards improving local athletic facilities. These donations include the installation of scoreboards at Lake Susan Park and Lake Ann Park, dugout improvements at Lake Susan Park and Lake Ann Park, athletic lighting at Lake Susan Park, batting cage improvements at Lake Ann Park, and remodeling of the Lake Ann ball field concession stand building. The CAA has also assisted with many field improvement projects with our athletic fields throughout the years. The CAA would like to make this donation to assist the city with the infield reconstruction project to increase the quality of the playing field at the Lake Susan Park baseball field. This will provide a better participation experience for those individuals using the field. The city would like to recognize the CAA for their continued generosity throughout the past 50+ years. Chanhassen's athletic facilities have benefited greatly from their continued support. 44 BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 45 City Council Item October 9, 2023 Item Approve City Council Minutes dated September 25, 2023 File No.Item No: D.1 Agenda Section CONSENT AGENDA Prepared By Kim Meuwissen, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council minutes dated September 25, 2023." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS City Council Work Session Minutes dated September 25, 2023 46 City Council Regular Meeting Minutes dated September 25, 2023 47 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES SEPTEMBER 25, 2023 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilwoman Schubert, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT:None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Eric Maass, Planning Director; Charlie Howley, Public Works Director/City Engineer; Rick Rice, IT Manager; Jerry Ruegemer, Park and Recreation Director; Ari Lyksett, Communications Manager; Kelly Grinnell, Finance Director; Samantha DiMaggio, Economic Development Manager; Rachel Arsenault, Associate Planner; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Dustin Phillips, Kraus-Anderson Dan Kjellberg, Kraus-Anderson Bryan Harjes, HKGi Paul Michell, BKV Group Scott Caron, Ballard King Kevin Clarke, HKGi 2024 PRELIMINARY BUDGET AND LEVY Finance Director Kelly Grinnell reviewed the background history of previous budget work session discussions. Updated revenues, expenditures, and fund balance of the preliminary 2024 General Fund Budget were presented. Mayor Ryan asked the council for their input on whether to approve setting a preliminary levy amount of 7.4% or lower. The council concurred that the preliminary levy should be set at 7.4%. CHANHASSEN CIVIC CAMPUS UPDATE Dustin Phillips of Kraus-Anderson presented the schematic design and budget development to date, reviewed the overall budget, reviewed estimate breakouts, discussed the value management exercise, reviewed a high-level budget summary, and discussed the next steps. The budget is currently $1.4 million above the initial budget. Factors that contributed to the increase were the stairs/elevator at the park building, the stage/porch at the park building, and an increase in city hall size by 1,000 square feet. The resulting question to the council was if they wanted to match the concept budget or expand the budget to accommodate project desires. Mayor Ryan asked the council for their initial thoughts on the increase to the budget. Councilman von Oven asked if the stage/porch at the park building wasn’t in the original concept. Mr. Phillips replied that it was not. Mayor Ryan added that the stage was a priority over 48 City Council Work Session Minutes – September 25, 2023 2 the park building elements, and that the stairs and elevator needed to be part of the building due to costs. Bryan Harjes reviewed the elevator scenarios. Paul Michell discussed the right sizing of the heated sidewalk. Mayor Ryan asked about the addition of 1,000 square feet to the city hall building and where the changes were. Mr. Michell responded the 1,000 square feet were distributed throughout all the floors in the amount of approximately 300 square feet per floor. The parking level was discussed, including the number of stalls needed. Councilwoman Schubert asked about the playground costs. Councilman von Oven asked for clarification of the value management sheet. Councilman Kimber expressed concern about what should be sacrificed to lower the budget. Mayor Ryan agreed and needed additional information as far as options, along with some time to review and digest the tradeoffs. Councilman Kimber requested additional information on the costs of the changes. Mr. Michell discussed the building material options and that alternatives could be presented to reduce the budget. City Manager Laurie Hokkanen clarified that the council needs to decide whether it is more important to stay with the concept plan budget or if cuts should be made. Ms. Hokkanen responded that the levy would need to increase an additional half a percent in 2025 and a tenth of a percent in 2026 if the project costs are increased. Councilman Kimber asked if future levies could be smoothed to accommodate the increase. Ms. Grinnell responded that it could be done, but something else would need to be cut. Councilman von Oven observed that future levies would still be in the sevens and that people might not remember if the number was 7.3 or 7.8. He appreciated the term “value engineering” and that we should take a hard look at the entire scope of the project and determine what brings the city the most value. Mayor Ryan would like to continue the value engineering process by reviewing all the park features and their associated costs and understanding the value of each component. Councilman Kimber agreed. Councilman von Oven added that having that list of contingencies would be helpful. Councilman McDonald expressed concern that the exterior building materials of city hall shouldn’t be sacrificed for the sake of the entire civic campus. Ms. Hokkanen thanked the council for their feedback and direction and asked the council to confirm that the heated sidewalk element should remain a part of the project. Mayor Ryan responded that from the feedback she has received from senior citizens, it is a priority. Mr. Phillips reviewed the next steps to continue to analyze the design, estimates, and budget and meet again at the end of design development in December. Kraus-Anderson, BKV, and HKGi will work with staff on a bid package schedule at the start of design development. CITY COUNCIL ROUNDTABLE Mayor Ryan discussed commercial vehicle parking adjacent to residential areas, specifically regarding a complaint of a semi parked along Kerber Boulevard from a resident in an adjoining neighborhood. Public Works Director/City Engineer Charlie Howley responded that Kerber Boulevard is a Municipal State Aid (MSA) street and the requirements for the city to receive funding for an MSA route, the city may restrict truck parking on the street; however, trucks must be allowed to drive on the street. The council discussed the issue and agreed not to move forward with this item. Mayor Ryan will respond to the resident. Councilman McDonald brought up Sewer Availability Charges (SAC) and whether the city can assist businesses with these fees. Mayor Ryan agreed and has asked Ms. Hokkanen to direct the 49 City Council Work Session Minutes – September 25, 2023 3 Building Official to review and evaluate SAC and WAC fees at the first of the year. The council concurred. Mayor Ryan recessed the work session at 6:55 p.m. Mayor Ryan reconvened the work session at 9:50 p.m. LOT COVER DISCUSSION Public Works Director/City Engineer Charlie Howley presented an update to the July 24, 2023, Work Session discussion on whether the maximum lot cover percentage should be increased from 25% in the Residential Single-Family (RSF) district. Mr. Howley reviewed the reasons behind the request and presented two options for the City Council to consider: Option 1: Raise allowable lot cover in all RSF-zoned areas from 25% to 30%; or Option 2: Raise allowable lot cover in all RSF-zoned areas from 25% to 30%, subject to conditions. Regardless of the option chosen, the implementation schedule would be the same, and the change would become effective January 1, 2024. Mr. Howley asked for the City Council’s input and direction. The City Council asked questions of staff and discussed both options, then recommended Option 2 with conditions to include a permit fee of $100 and require Best Management Practices (BMPs). LAKE ANN PARK PRESERVE UPDATE Park and Recreation Director Jerry Ruegemer introduced Mr. Kevin Clarke from HKGi, who presented a PowerPoint of the Lake Ann Park Preserve Implementation Project. The project update included the background, design, cost estimates, and next steps. The current project objectives include advancing the design to the 60% level, fitting the project to complex regulatory and construction requirements, determining the extent of the 2024 project based on budget/timing feasibility, developing construction documents, permitting, bidding the project in the fall/winter to begin work in the winter, and completing the priority project in 2024. Mr. Clarke also reviewed project tasks and schedule, including available grants. The current focus is on prioritizing the boardwalk engineering and trail/parking design for 2024 construction. Future enhancements that will likely occur in 2025 include signage and wayfinding, interpretation, natural resources, and natural surface trails. Mr. Clarke next reviewed project tasks, cost estimates, and Phase 1 determination, which includes three priorities: 1) boardwalks, 2) trail and parking lot paving, and 3) trail reconstruction to the north. Funding sources and uses were identified, and the project task schedule was presented. Mr. Clarke asked the City Council if they had any questions and to provide clarifications and key priorities. City Manager Laurie Hokkanen stated that, historically, constructing the Lake Ann Park Preserve has been a key priority of the City Council and distributed a document showing possible funding options to finance the priorities in Phase 1 of the project. 50 City Council Work Session Minutes –September 25, 2023 4 Mayor Ryan thanked Mr. Ruegemer and Mr. Clarke for the presentation, then asked the City Council for their input on the priorities for bidding on the project. The City Council discussed the project and concluded that Phase 1 of the project should move forward to include all three priorities. FUTURE WORK SESSION SCHEDULE October 9, 2023 Chanhassen Civic Campus –City Council Update October 23, 2023 November 13, 2023 Presentation of Preliminary 2024 Utility Fund Budgets and 2024-2028 CIP SAC Policy Discussion November 27, 2023 Final Review of Proposed 2024 Levy, Budgets, and CIP for all funds December 11, 2023 City Council Roundtable The work session adjourned at 10:55 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk 51 CHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES SEPTEMBER 25, 2023 Mayor Ryan called the meeting to order at 7:17 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Schubert, Councilman McDonald, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT:None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Eric Maass, Planning Director; Charlie Howley, Public Works Director/City Engineer; George Bender, Assistant City Engineer; Jerry Ruegemer, Parks and Recreation Director; Ari Lyksett, Communications Manager; Kelly Grinnell, Finance Director; Samantha DiMaggio, Economic Development Manager; Amy Schmidt, City Attorney; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Allison Schmitt 206 West 78th Street Andrew Plowman WSB Engineering PUBLIC ANNOUNCEMENTS: 1. Invitation to 2023 Cemetery Walk Mayor Ryan invited the public to the 2023 Cemetery Walk hosted by the Chanhassen Historical Society on Saturday, September 30th,at Chanhassen Pioneer Cemetery and St. Hubert’s Cemetery at 1 p.m. and 4 p.m. She shared there is an additional performance for those who have difficulty walking, but registration is required, and the event is limited to 60 participants. CONSENT AGENDA: Councilman McDonald moved, Councilman Kimber seconded that the City Council approve the following consent agenda items 1 through 11 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated September 11, 2023 2. Receive Planning Commission Meeting Minutes dated July 18, 2023 3. Receive Environmental Commission Minutes dated July 12, 2023 4. Receive Commission on Aging Minutes dated August 18, 2023 5. Approve Claims Paid dated September 25, 2023 52 City Council Minutes – September 25, 2023 2 6. Approve Temporary Modification of the Licensed Premises to serve Beer in the Hackamore Brewing Company Parking Lot Area 7. Approve Contract for Lake Ann Park Lakeside Pavilion Roof Replacement 8. Authorize Execution of Stormwater Maintenance Agreement with Avienda Villas I Association 9. Authorize Execution of Stormwater Maintenance Agreement with Avienda Villas II Association 10.Resolution 2023-71:Require candidates for City Office to file a written request with the chief election officer no later than the seventh day before the city election if the candidate wants to have candidate’s write-in votes individually recorded 11. Approve Certification of MN DNR Grant for Tree Removal and Planting All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. None. PUBLIC HEARINGS. 1. Adopt Business Subsidy Policy Samantha DiMaggio, Economic Development Manager, asked the City Council if there were any questions regarding the previously reviewed Business Subsidy Policy. Mayor Ryan opened the public hearing. There were no public comments. Mayor Ryan closed the public hearing. Councilman von Oven moved, Councilman McDonald seconded that the City Council approve the request to adopt the Business Subsidy Policy. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. 2. Resolution 2023-72: Approve Vacation of a Portion of Public Right-of-Way (Alley) Abutting 206 West 78th Street Charlie Howley, Public Works Director/City Engineer, shared previous imaging of the alley located in Chanhassen. Mr. Howley shared the vacation request and the prepared survey. He presumed the applicant wanted to make the alley a part of their property. Mayor Ryan opened the public hearing. There were no public comments. 53 City Council Minutes – September 25, 2023 3 Allison Schmitt, 206 West 78th Street, shared she is the property owner. She attended in case there were any questions. Mayor Ryan closed the public hearing. Councilwoman Schubert moved, Councilman Kimber seconded that the Chanhassen City Council adopt a resolution approving the vacation of portions of the public right-of-way, or alley, abutting Lot 2, Block 2, Village of Chanhassen, according to the recorded plat thereof, Carver County, Minnesota. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. GENERAL BUSINESS. 1. Resolution 2023-73: Adopt the Preliminary 2024 Tax Levy, Budget, and Establish the Truth-In-Taxation Public Hearing Date Kelly Grinnell, Finance Director, shared the background and history of the meetings held so far regarding the levy increase, budgeted expenditures, and general fund needs. She shared that the total revenues estimated are $15,738,750. This increase in funds is due to the shift of levy from the TIM Fund. They are moving operating expenditures from this fund to the general fund. She shared the total expenditures are predicted to be $15,644,856. This is also shifted based on the expenditures from the TIM Fund. She explained the fund balance is necessary for regular expenses. Ms. Grinnell shared the general fund budget expenditures for different government functions. The total preliminary budget increased by 7.8 percent. She discussed the impact of inflation on different city purchases. She reviewed the detailed expenditure changes for each separate government function. Many of the increases were related to wage and benefit increases. Ms. Grinnell communicated the predicted general fund budget revenues from different revenue sources. She also reviewed the preliminary 2024 levy. She explained the levy projections starting in 2024 to 2028. She highlighted the impact of the levy due to the Civic Campus Debt Service and the projected changes to other funds. She shared the goal of the levy increase is to be around 3.8 percent. Ms. Grinnell communicated the proposed levy increase in comparison to other cities’ levy increase and other cities’ levy per capita. She reviewed the city tax rate from 2013 to 2024, which has seen a slow decline. From 2023 to 2024, there will be a slight increase in the tax rate. She shared the impacts of the 2024 taxes on various homes in the City of Chanhassen. She explained the tax impact on different commercial businesses in 2024. Ms. Grinnell shared the next steps are for the Council to approve the resolutions, announce the Truth in Taxation meeting on December 11, 2023, and hold two additional work sessions to review and discuss the different fund budgets and taxes prior to the Truth in Taxation meeting. 54 City Council Minutes – September 25, 2023 4 Mayor Ryan asked if the pavement management decrease was correlated with the number of projects completed. Ms. Grinnell stated the capital funds are based on the funds available, so the projects are based on funds available. Charlie Howley, Public Works Director/City Engineer, stated the projects will not necessarily be less. Mayor Ryan stated she did not want residents to be concerned about funds for road projects. Mayor Ryan requested clarification on the cost of lobbying included. She also asked about an analysis of the service of the Parks and Recreation program to ensure costs are covered based on programming charges. Councilman von Oven moved, Councilman Kimber seconded that the Chanhassen City Council adopt a resolution of the Preliminary of 2024 Tax Levy, Budget, and Establish the Truth-In-Taxation Public Hearing date on December 11th at 7 p.m. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. 2. Resolution 2023-74: Accept the Bids and Award a Construction Contract for the Galpin Boulevard Reconstruction Project George Bender, Assistant City Engineer, shared an overview of the project background. Galpin Boulevard is moving from a county road to a city road. He shared the project area and proposed scope, which is about 2.1 miles of reconstructed street. He reviewed the new stormwater collection system and the implemented roundabouts and trails. He discussed the pond maintenance and cleanout that would occur along with the project. He showed a map of the project, reviewing the different sections of Galpin Boulevard and pointing out where specific changes would occur on the road. He stated they are building on existing conditions, so the road grading availability is limited. He explained the different roundabouts, including a mini- roundabout design and vehicle accessibility. Mayor Ryan asked if there was any consideration to utilize four-way stops due to Lake Lucy Road pedestrian use. Mr. Bender explained the safety features of roundabouts. Mayor Ryan asked if roundabouts were safer for pedestrians or children biking to school. Mr. Bender explained the safety components of roundabouts for pedestrians. Andrew Plowman of WSB Engineering explained the safety features of roundabouts for school traffic. They have sized roundabouts with a 90-foot diameter to meet school traffic needs. Their engineering firm has designed many roundabouts, and they are safe for pedestrians, as they only need to consider one car to their left. Mr. Bender explained the roundabout was in the original feasibility study. The roundabout will slow traffic. They have received a lot of feedback about traffic speed. He mentioned the traffic lanes will be striped like Lake Lucy Road with 11-foot-wide lanes to add additional traffic calming. 55 City Council Minutes – September 25, 2023 5 Mayor Ryan asked why there was no roundabout at Hunter Drive. She stated there were questions about crossing the street near the hill. She asked if there would be a crosswalk. Mr. Bender stated it would remain a two-way stop intersection. With the Sugarbush Park being located at Brinker, it was prioritized over Hunter Drive. If there was a roundabout at Hunter Drive, it would be very close to the Brinker roundabout. There was never a roundabout planned for Hunter Drive. Mayor Ryan asked if there is a trail on the east and west side of Galpin, so pedestrians can drive on both sides of the road and walk to the park. Mr. Bender shared they have received a lot of feedback about the full-sized roundabout at West 78th Street. Councilman Kimber asked about the main benefits of a roundabout. Mr. Plowman stated safety is a key component of roundabouts. He also explained they allow access management for businesses along roadways to eliminate U-turns. Roundabouts also benefit high-volume and low- volume traffic areas. Mr. Plowman stated it also helps with speed control and slows individuals down. Roundabouts are utilized more frequently than all-way stops, as people do not always stop safely at all-way stops. Councilman Kimber asked if the city is paying for the road reconstruction or if the county is paying for the road reconstruction. Mr. Bender stated certain components, such as the roadway and storm sewer, are being paid 75 percent by the county and 25 percent by the city. Charlie Howley, City Engineer, stated the costs are complicated, as certain features the county would not normally spend money on, such as trails. The percentage was agreed upon by the county and city, but the sewer and water systems the city must pay for. Councilman Kimber asked for the feedback received at the open houses. Mr. Bender stated speed, traffic control, and pedestrian crossing were some of the main topics discussed. He stated they are trying to make the corridor better in the long run. Councilman Kimber shared his feedback about the roadway. He thinks there needs to be a crosswalk to get to Sugarbush Park but hopes the trails on both sides will help with the safety of pedestrian traffic. He agreed with the Mayor’s comments about the intersection near Paisley Path and believes it could warrant a roundabout as people overdrive the stop sign. Councilman Kimber also thinks a roundabout at Longacres is needed, especially during the wintertime. He complimented the city on the website regarding the project, particularly the feedback section. He wondered if it would be beneficial to move the roundabout from Lake Lucy Road to Paisley Path. He was concerned about the path north of Lake Lucy Road due to the houses on the western side of the road. Many families and children use the path to get to the Minnetonka Middle School West and the soccer fields. There are now no crosswalks on Galpin Boulevard except near Lake Lucy Road. He encouraged adding a crosswalk near Melody Hill Road or Crestview Drive to benefit pedestrian traffic. 56 City Council Minutes – September 25, 2023 6 Mr. Bender stated they are adding a standard crosswalk at the location. Councilman Kimber mentioned there will also be a crosswalk at Melody Hill Road for children to cross to get to the soccer fields. These will be standard crosswalks. Councilman Kimber asked if the crosswalk was visualized on the map. Mr. Bender showed the location of the crosswalk, which was added after the open houses took place. Mayor Ryan stated residents would be concerned about removing the trails from both sides of Galpin Boulevard due to pedestrian traffic. Mr. Bender stated they received some positive feedback about moving the trails at the open houses. Mayor Ryan shared bikers have always been concerned about the connectivity of trails previously. Since the road has many hills, pedestrians will need to be concerned about drivers’ speed. Mr. Bender suggested adding a push-button to the crosswalk to add additional safety features. Councilman Kimber asked if there was an earlier version of the project with trails on both sides of the road. Mr. Howley stated he did not recall an earlier version. Councilman Kimber suggested allowing trails on both sides ending at Melody Hill. Mr. Bender stated that by shifting the center line of the road to the west, there is limited space for additional trails. Mr. Bender shared the bid results based on the engineer’s estimate. The low bidder is 5 percent below the engineer’s estimate. The project can be completed in 2024, which will allow contractors to have more flexibility with the job. The low bidder is S.M. Hentges, and they have successfully completed work for the city in the past. Mr. Bender reviewed the construction cost summary, including the overall project amount and the city portion of the project amount. Mr. Bender shared a budget summary to detail the different funding sources. He stated they budgeted an additional amount for any increasing rates. There is not a lot to eliminate in the budget based on the feasibility study. He showed the total breakdown of costs between the city contributions and the county portions. The total city portion includes the costs of the sanitary sewer and water and the City Pavement Management Program fund. There are some preferential costs that are not safety choices, such as using concrete rather than asphalt in the roundabouts to promote longevity. The city has to cover these cost differences. Mr. Bender stated this project fits into the budget for next year. Mayor Ryan asked if they received verbal support from the county for the project. Mr. Howley stated the county was comfortable with the cost split. County Engineer Lyndon Robjent needs to take the project to the board for approval. Mr. Howley was told there was very little risk that the county would not help support the project. 57 City Council Minutes – September 25, 2023 7 Mr. Bender reviewed the proposed project schedule. He shared that the city is coordinating with private utilities for relocation. He shared Xcel will need to bury some of the power sources in certain locations. He anticipated the private utility relocations would take place this fall. Tree clearing will occur in the winter to meet bat protection requirements. He foresees the final project will be completed in June 2025. Mr. Bender shared the project meets the feasibility and cost-effective requirements. He did not think the project would be bid lower than the amount received. He recommended for the city council to accept the bid proposal. Councilman von Oven asked when the city owns the road, what percentage of the cost of special assessment would fall on Chanhassen residents. Mr. Bender stated that 40 percent of street rehabilitation would be assessed to residents. Councilman Kimber shared there are changes he would like to consider but feels there is a need to accept the bid. He wished to have received the feedback from the residents at an earlier time. He recognizes that the project needs to move forward. Mayor Ryan stated this project has been citizen-facing for many years but requested further evaluation of the concerns at Paisley Path and Hunter Drive and access to Minnetonka Middle School West. She commented there need to be considerations for the trail north of the roundabout. She questioned whether these ideas could be considered along with the bid. Mr. Bender shared that there are three push buttons for crosswalks in the design as-is. These could be relocated to different locations to spread the monetary contribution. He stated they could consider holding neighborhood meetings to receive additional feedback. Mr. Howley stated if changes are made that are already within the project, there is knowledge of costs. They could make additional changes to the design rather than rebidding the project. Mayor Ryan understands the need for the project to occur. She asked when the engineers host meetings with the public, to provide analysis of the commentary to the city council to see the feedback from residents. Councilman von Oven moved, Councilman Kimber seconded that the Chanhassen City Council adopt a resolution to accept the bids and award a contract for the Galpin Boulevard Reconstruction Project (City Project No. PW176), subject to Carver County approval of the same. All voted in favor and the motion carried unanimously with a vote of 4 to 0. 3. Ordinance 715: Amending Central Business District Zoning District Eric Maass, Planning Director, shared the amendment to the Central Business District Zoning District. He shared the revisions to the uses in the intent statement and permitted and conditional 58 City Council Minutes – September 25, 2023 8 uses. The multi-family housing permitted use changed after meeting with the Planning Commission and the Economic Development Commission to include commercial space beyond housing. The government services were included in the permitted uses section. Under the accessory uses, the Planning Commission removed the permission to use larger antenna towers. The conditional uses limited the size of a brewery. He explained build-to zones rather than specific setbacks to allow flexibility for different business desires, such as a patio. Residents did not want the building heights to be taller than the Venue Apartment building, which explains the height standards in the amendment. Mr. Maass identified the different character areas, including Downtown Mixed Use and Downtown West. There will be a more intensive redevelopment focus in the Downtown Mixed-Use area, but there may need to be added flexibility in Downtown West. Mr. Maass stated the moratorium would be removed after the approval from the city council. Councilman von Oven asked why Kerber Boulevard was considered a secondary roadway in the Central Business District Zone. Mr. Maass explained Kerber was seen as a support road downtown and noted one side of Kerber Boulevard was the Civic Campus Project, and the other side of the road was Downtown West. Councilman von Oven was considering Kerber Boulevard west of West 78 th Street. Mr. Maass shared that Kerber Boulevard would be more of a support road in Downtown Mixed Use. Councilman von Oven shared it seems to fit in more with a primary road, and there was a possibility for these blocks to be split to be more walkable. He did not know if there were benefits to officially naming the roadway as primary versus secondary. Councilman McDonald asked if the Venue Apartments was 7 stories. Mr. Maass explained the elevations for the project hit at 78 feet, but the ceilings of the first story of the Venue Apartments were very high. Mr. Maass explained they would consider how many floor plates were utilized in line with the total height allowance. Councilman McDonald wondered if the story maximum would not allow for flexibility for different developers. Mr. Maass stated they had shared these updates with property owners, and different developers were not concerned with the story limits. Mayor Ryan asked if it would make sense for primary roadways in the Downtown Mixed Use would be the same as the secondary roadway build-to zone requirements. Mr. Maass shared how different businesses on less-traveled roadways not directly on West 78th Street could create larger outdoor spaces. Mayor Ryan asked if there should be larger build-to zones on the primary roadways to allow additional outdoor spaces right on West 78th Street. Mayor Ryan also asked if there were benefits to allowing more flexibility for businesses to have movement in certain areas to meet the intended goal. Mr. Maass stated there is added flexibility with the side or rear setbacks. He commented that a wider build-to zone allows flexibility but is also less restrictive. 59 City Council Minutes –September 25, 2023 9 Mayor Ryan stated she would rather have the ordinance passed as-is and be more restrictive, but if there needs to be changes made moving forward due to increased variances, it could be adapted. Mr. Maass shared the Planning Commission requested that staff consider other names for the Central Business District(CBD). He stated there are opportunities to look at the downtown area aside from business opportunities. Staff is meeting with counsel,and this acronym and name may be changed in the future. Councilman Kimber moved, Councilman von Oven seconded that the Chanhassen City Council adopt an Ordinance Amending the Central Business District Zoning District. All voted in favor,and the motion carried unanimously with a vote of 4 to 0. COUNCIL PRESENTATIONS. Councilman von Oven recognized Jerry Ruegemer, Eric Maass, and Laurie Hokkanen for working with residents with quick action and common sense. Councilman von Oven received multiple concerns from residents,and these staff members dealt with them very well. ADMINISTRATIVE PRESENTATIONS.None. CORRESPONDENCE DISCUSSION.None. Councilman Kimber moved, Councilman von Oven seconded to adjourn the meeting. All voted in favor,and the motion carried unanimously with a vote of 4 to 0. The City Council meeting was adjourned at 9:46 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk 60 City Council Item October 9, 2023 Item Receive Planning Commission Meeting Minutes dated September 5, 2023 File No.Item No: D.2 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, Sr. Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Planning Commission Meeting Minutes dated September 5, 2023." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 61 Planning Commission Meeting Minutes dated September 5, 2023 62 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES SEPTEMBER 5, 2023 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chair Eric Noyes, Erik Johnson, Vice-Chair Kelsey Alto, Perry Schwartz, Ryan Soller, Edward Goff, Steve Jobe. MEMBERS ABSENT: None. STAFF PRESENT: Eric Maass, Planning Director PUBLIC PRESENT: William John 7609 Kiowa Avenue Judy Harder West 78th Street PUBLIC HEARINGS: None. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED JULY 18, 2023 Commissioner Jobe moved, Commissioner Schwartz seconded the summary Minutes of the Planning Commission meeting dated July 18, 2023, as presented. COMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: 1. DISCUSSION ON CENTRAL BUSINESS DISTRICT (CBD) ZONING ORDINANCE UPDATE Planning Director Maass updated the Commissioners about the Central Business District Zoning Ordinance. Mr. Maass shared there are 41 specified permitted uses in the Central Business District. This is a large number. Staff provided a color coded list of the proposed revisions to the permitted uses to streamline the process. The existing conditional uses that they propose to remove are drive-through facilities and convenience stores with gas pumps. They also hope to move day care facilities from permitted use to conditional use. Mr. Maass gave an overview of interim uses, such as the farmer’s market, and accessory uses, such as parking lots and ramps. Mr. Maass stated strong downtown models could be Excelsior, Hopkins, and Wayzata. He showed a comparison of the lot sizes and setbacks between the current standards in Chanhassen and the current standards in these three towns based on the zoning code. Based on this review, they proposed to eliminate minimum lot area and minimum lot frontage to 0. The minimum lot 63 Planning Commission Minutes – September 5, 2023 2 depth is 0 as well. The lot coverage was proposed to be 100% and the roof type proposed is flat or parapet. Mr. Maass displayed a graphic to show the different downtown uses, including downtown core, highway commercial, and downtown west. The highway commercial areas are not zoned as Central Business District. He explained the proposed setbacks and heights and commented that the public felt the Venue should be the maximum number of stories allowed. He showed examples of the ordinance considerations with the different setback options and building height for the 0-foot setback and the 20-foot setback. There are certain areas where a build-to-zone could makes sense dependent on how close the city wants the buildings to the road. Mr. Maass noted this was not a public hearing but the Planning Commission allow for questions if desired. Commissioner Jobe asked about the opportunities for multi-story restaurants and rooftop seating. This would be permitted use and up to the user. Commissioner Jobe asked about the setbacks and zoning behind Lunds & Byerlys Mr. Maass noted it was proposed that the ordinance would require any development would need to match the setback requirements for the residential district it is adjacent to. Commissioner Schwartz asked why they did not consider cities like Chaska or Waconia as models, as the selected cities are in Hennepin County. Mr. Maass shared that residents referred to the cities mentioned earlier, but other downtown models could be included. Commissioner Schwartz asked if the vision required buy-in from business owners. Mr. Maass stated the goal is to consider public voice and he believes public engagement would most likely support what is being proposed based on public engagement. Commissioner Schwartz asked if there was any leeway in the proposed standards. Mr. Maass stated a business could pursue a variance if there is practical difficulty on the site, or a planned unit development, or a code amendment through the city. Vice-Chair Alto stated the proposed standards are understandable. She commented that any apartment buildings within the Central Business District should have businesses on the first level. Commissioner Soller mentioned there could be difficulties based on the market. Vice- Chair Alto stated the goal is to guide future goals based on current market conditions. Commissioner Goff asked if the difference between Downtown West and Downtown mixed use is the setbacks. Mr. Maass answered in the affirmative. Commissioner Goff suggested striking the antenna language as most individuals use cell phone technology. Mr. Maass asked if it was the towers he did not want to see or for more information. Commissioner Goff stated there are enough other technologies to use that antenna should not be used in this zone. Chair Noyes asked if there would be a required housing element in buildings on upper floors. Mr. Maass stated the private market would determine the amount of housing needed. The City’s Comprehensive Plan anticipates where new housing units will be added to the community. The new standards address more of the aesthetic changes rather than the specific policy. 64 Planning Commission Minutes – September 5, 2023 3 Commissioner Schwartz asked what composed of the areas shaded as civic area. Mr. Maass stated it is the library, city hall, post office, fire department, and water treatment plan. Institutional includes the school. Commissioner Soller addressed the residential requirements and asked if it was too constrictive. He asked if it would be better to leave options for developers in certain spaces. Mr. Maass stated that West 78th and Market Boulevard are the main thoroughfares. He could understand how some of the offshoot roadways could benefit from certain variations. Commissioner Soller asked if there is too much restriction based on what is demanded by market expectations. Mr. Maass asked for a clarification, as the ordinance moves free-standing fast-food restaurants to a conditional use opportunity. Restaurants absent from a drive-through are permitted near the sidewalk. It would allow stand-alone restaurants. Commissioner Schwartz asked if current restaurants with drive-throughs would be grandfathered in as is. Mr. Maass stated as those businesses exist today, they would be permitted, but if the building were to be destroyed, they would not be able to build a drive-through. Commissioner Schwartz stated his concern is there are many parking lots in the Central Business District. He questioned if there were ways to address this concern in this vision. Mr. Maass stated the city does not own the property, but the city can adjust the policy to provide guidelines when property owners make changes. Vice-Chair Alto asked if the city adjusted parking lot requirements, which Mr. Maass confirmed to help address the vision. Vice-Chair Alto asked about the 20-foot setback versus the 0-foot setback. The 20-foot setback would be for those providing opportunities such as a patio. Mr. Maass stated a build-to-zone would allow the city to keep the parameters in place to allow for certain flow and necessities, such as bike racks. Commissioner Jobe asked if there would be allowed drive-throughs in one zone, such as in Downtown West until other zones are fully developed. Vice-Chair Alto stated additional drive- throughs could increase the burden of traffic and would not create a walkable downtown Chanhassen. Commissioner Jobe stated he was concerned about turning away potential developers. Commissioner Soller asked where the walkable downtown would be and questioned if a concentrated walkable downtown would be more beneficial. He referenced the Burnsville example and wondered if this area would be too big of space for a walkable downtown, but agreed the traffic flow needs to be addressed. He encouraged the city to consider what infrastructure could be changed. Commissioner Schwartz agreed drive-throughs can be concerning, but they are well-utilized, and mentioned citizens might be concerned if drive-through opportunities are limited. Chair Noyes mentioned drive-through restaurants could be built outside of the Central Business District. Vice- Chair Alto stated the example downtowns referred to do not have many drive-throughs. Often, drive-throughs are not a destination area. Commissioner Schwartz mentioned the referenced downtowns are landlocked, so there is no space for drive-throughs. He stated a business owner would not want to build their restaurant in an area where there is no foot traffic or car traffic. 65 Planning Commission Minutes – September 5, 2023 4 Mr. Maass stated the highway commercial area is under different zoning requirements. As an example, if the Chick-fil-A in that area burned down, they would be allowed to rebuild with a drive-thru as the land it is built on is outside of the Central Business District zoning. Commissioner Soller stated as long as the Target and Lunds & Byerly are in the downtown west, there will be a separation in the downtown mixed-use space. Commissioner Johnson agreed with Commissioner Soller. He stated if there is a desire to make a walkable area, there should be a focused, central corridor to create a specific downtown feel. Mr. Maass asked if any of the public attendees had comments. William John, 7609 Kiowa Avenue, asked about the timeline of the development. Mr. Maass clarified this is a policy proposal, but it is not specific to any current development. Judy Harder, West 78th Street, mentioned there is no discussion about the trees, climate, and heat that can be addressed in the policy. She encouraged that there needs to be consideration of trees as we consider the future. Additionally, she would enjoy feeling safe biking down West 78th Street. Chair Noyes stated trees are a very important part of plans and ordinances and would be factored into any projects that come before the city. New projects are subject to our landscaping requirements. He mentioned the build-to area could allow space for trees or other greenery and natural space. Vice-Chair Alto mentioned the current city code could be updated to allow natural resource requirements, such as trees. Commissioner Soller asked if these changes go far enough to make the desired aesthetic or if there are other requirements that need to be implemented to achieve the aesthetic. He mentioned an example of the parking ratio. Mr. Maass clarified this would not be a part of this policy update but does relate to the plan. He would like to look into requirements such as roof coverings or other green options. Vice-Chair Alto mentioned the church in the institutional space is an old building and asked if there would be opportunities for other companies to purchase this space. It was indicated that this could be a consideration. ADJOURNMENT: Commissioner Schwartz moved to adjourn the meeting, Commissioner Jobe seconded. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Planning Commission meeting was adjourned at 7:06 p.m. Submitted by Eric Maass Planning Director 66 Planning Commission Minutes – September 5, 2023 5 67 City Council Item October 9, 2023 Item Receive Park and Recreation Minutes dated August 22, 2023 File No.Item No: D.3 Agenda Section CONSENT AGENDA Prepared By Amy Weidman, Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Park and Recreation Minutes dated August 22, 2023." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Park and Recreation Minutes dated August 22, 2023 68 CHANHASSEN PARK AND RECREATION COMMISSION REGULAR MEETING MINUTES AUGUST 22, 2023 Chair Vasatka called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Don Vasatka, Chair; Heather Markert, Vice Chair; Dan Eidsmo; Matt Kutz; Jim Peck; Rob Swanson; Scott Pharis. MEMBERS ABSENT: Youth Commissioner Alexandra Jerdee. STAFF PRESENT: Jerry Ruegemer, Park and Recreation Director; Priya Tandon, Recreation Manager. PUBLIC PRESENT: Mark Kaplan 800 Lake Susan Hills Drive, Chanhassen Jeff Miller 7209 Pearl Drive, Chanhassen APPROVAL OF AGENDA: Commissioner Pharis moved, Commissioner Kutz seconded to approve the agenda as presented. All voted in favor and the motion carried unanimously with a vote of 7 to 0. PUBLIC ANNOUNCEMENTS: Park and Recreation Director Ruegemer stated there is a new youth commissioner appointment, Nischay Pattanashetty, starting in September. VISITOR PRESENTATIONS: None. APPROVAL OF MINUTES: 1. Approve Park & Recreation Minutes dated June 27, 2023 Commissioner Peck moved, Commissioner Eidsmo seconded to approve the minutes of the Park and Recreation Commission meeting dated June 27, 2023 as presented. All voted in favor and the motion carried unanimously with a vote of 7 to 0. 69 Park and Recreation Commission Minutes – August 22, 2023 2 GENERAL BUSINESS: 1. The Parks Country Day Camp Presentation Mr. Ruegemer invited a camp attendee from the 1960s to share about the camp and its connection to Lake Ann Park Preserve. Mark Kaplan prepared a PowerPoint to share about camp activities at the Parks Country Day Camp in 1965. The areas near Lake Lucy and Lake Ann were used for the camp. The camp was originally founded by two teachers who wanted to provide a day camp experience for city children. Campers were able to ride horses, go through hay loft tunnels, swim, do arts and crafts, archery, and play sports. The camp was sold for development in 1971. Commissioner Markert asked how far north the property was located. Mr. Kaplan mentioned it was difficult to tell the exact boundaries. Mr. Ruegemer stated it was most likely near the old guard house. Commissioner Pharis asked if it was possible to get a copy of the aerial photo from 1937. Chair Vasatka asked how long it took to pull all the information together. Mr. Kaplan shared it has taken around three years and has received help from the family of the camp founders. Mr. Ruegemer shared aerial footage to show where the current lake trails and Lake Ann Park overlap with the old day camp. Commissioners thanked Mr. Kaplan for sharing. REPORTS: 1. 2023 4th of July Celebration Evaluation Recreation Manager Priya Tandon shared a summary of the 4th of July 4 celebration, which took place from July 2 to July 4. On July 2, there was a family night at the carnival. On July 3, there was a baseball clinic, Taste of Chanhassen, beer garden, skatepark activity, and performance by The Johnny Holm Band. On July 4, there were activities at Lake Ann and City Center Park. The day ended with fireworks at Lake Ann. Ms. Tandon stated attendance seemed normal, but there may have been lower attendance on July 3 due to the heat. Ms. Tandon shared there were two title sponsors this year. Family Night was sponsored by IWCO. Nicolet National Bank donated funds to be the entertainment sponsor throughout the weekend. The staff recommends continuing to offer the children entertainment on the stage next year, as it was popular. kiddywampus sponsored the kiddy parade and provided decorating supplies for families to use; this was popular. The silver permanent jewelry and the llama displays were also well received. Ms. Tandon shared that online merchandise sales were not very popular, but the in-person sales increased. Next year, they would consider purchasing a small inventory to have available at city hall. 70 Park and Recreation Commission Minutes – August 22, 2023 3 Ms. Tandon will work closely with the Rotary next year to help recruit more volunteers. It is a holiday weekend, which makes finding volunteers difficult. The city will continue to contract with the Vanella Group for waste management. They will also work with the Carver County Sheriff’s office to remind citizens when events have ended so vendors are able to close down safely. Commissioner Peck suggested using a vendor that offers made-to-order shirts on-site. He has contact information for the vendor he can provide. Mr. Peck asked if the baseball clinic was offered by the Minnesota Twins and free of charge. Ms. Tandon stated the clinic was of no cost to the city. They have a good relationship with the Minnesota Twins. Chair Vasatka commented that the fireworks show was longer, and he appreciated the additional investment into the show. Commissioner Markert asked how the t-shirt sales were advertised. Ms. Tandon stated through social media, the city website, and the Chan-Happenings email. She stated they could reconsider the advertising of t-shirts next year. Mr. Vasatka stated The Johnny Holm Band was more expensive and asked if the Rotary was able to recoup the cost from the beer garden. Ms. Tandon stated the Rotary was happy with the outcome. Commissioner Swanson stated he and his wife had to work on Monday so did not attend those events and wondered if attendance was impacted by work. He stated his family watched the parade and there were many large gaps in the parade. Some families thought the parade was finished because of the gapping issue. Mr. Ruegemer stated there are always instructions to prevent gapping, but some groups perform or take more time. This is not a new problem. Ms. Markert asked how the city center updates would impact future 4th of July activities. Ms. Tandon stated this has been considered in the city center design process. Mr. Ruegemer stated there will be precautions taken into consideration during the construction phases. 2. Lake Ann Park Preserve Update Mr. Ruegemer gave a Lake Ann Park Preserve update. He showed an aerial photograph and explained the current work on the updates. The survey work is underway. They are trying to be mindful of the trees that are in the area and will try to avoid more mature trees as much as possible. Once they are at 60% design, the permit process with the watershed district will begin. They held a meeting with the watershed district in July. The initial hydrologist reports on the north boardwalk identified the need for a 400-foot boardwalk. Early water flow investigation indicates the boardwalk could be shortened to 150 feet, which is a significant cost savings. The other 400-foot boardwalk will now most likely be 350 feet. Mr. Ruegemer shared there will be a 71 Park and Recreation Commission Minutes – August 22, 2023 4 flat bridge that satisfies DNR requirements for water passage. The bridge will accommodate the passage of stand-up paddle boards and small fishing boats. The council dedicated $1.3 million dollars into the project. The project also received a grant to help with the cost of the southern boardwalk. Mr. Ruegemer discussed the construction options for the boardwalk. The boardwalk will be strong enough to be plowed in the wintertime. HKGI is pulling together a cost estimate for phase 2 in 2024. They will try to identify additional funding to complete the next phase of the project. Mr. Ruegemer is working on the grant from the DNR to ensure they meet the requirements prior to receiving the money. He plans to apply for SHIP grants with Carver County, which will offset costs for other project elements. Audience member Jeff Miller asked when the interceptor was installed. Mr. Ruegemer stated it was put in in the 1980s. Mr. Miller asked when the boardwalk bridge in the southwest section would be completed. Mr. Ruegemer stated the goal is spring 2024. Mr. Miller stated there is water that comes from the home to the asphalt path in the winter which makes the path dangerous; he asked if there could be drainage work. He also stated the southwest asphalt path has plant overgrowth and needs a large industrial mower. Mr. Ruegemer stated the staff would look at the path. Commissioner Eidsmo asked if you could navigate between the two lakes with kayaks. Mr. Ruegemer stated the lake connection is dependent on the water level. If the water level is low, there is no ability to cross the channel. There was beaver activity between the two lakes, which caused a blockage to the channel. Mr. Ruegemer stated the temporary bridge was installed to help prevent this activity for those who wanted to access the park. They are hoping when water levels are higher, individuals can navigate between the water areas. Chair Vasatka asked if there would be lighting. Mr. Ruegemer stated this plan was not solidified but different options will be considered. Mr. Vasatka asked if there would be opportunities to place signs marking historical significance throughout the trail. Mr. Ruegemer stated there is a possibility of historical signage placed along certain trail segments. Commissioner Swanson asked if there was a goal to connect residential areas south of the preserve through a trail system. Mr. Ruegemer does not know if there is an easement to make this connection, but he can investigate the opportunity. Audience member Mr. Miller asked about the proposed path around Lake Ann and if it would have to go through the farmer’s property on the marshland. Mr. Ruegemer stated they own around 125 acres, and he does not know the owner’s development desire for this area. Mr. Miller asked if the property owner would consider selling the property. Mr. Ruegemer stated there has been no specific discussion of future plans and wishes to respect her property rights. Mr. Vasatka asked where the council was at for the sales tax language for the fall. Mr. Ruegemer shared the language included in the bill about the referendum. There are no city elections in 2023 72 Park and Recreation Commission Minutes – August 22, 2023 5 so the vote cannot occur this year. The conversation is now tabled. Mr. Vasatka asked if the developer could wait until 2024. Mr. Ruegemer is not aware of this information. Commissioner Markert asked for an updated timeline for the equipment for Sugar Bush Park. There is delayed manufacturing of this playground equipment. The estimated delivery is October 1, and they still wish to install the equipment in 2023. COMMISSION MEMBER COMMITTEE REPORTS: None. COMMISSION MEMBER PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: None. ADJOURNMENT: Commissioner Pharis moved, Commissioner Kutz seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Park and Recreation Commission meeting was adjourned at 7:35 p.m. Submitted by Jerry Ruegemer Park and Recreation Director Prepared by Amy Weidman Administrative Support Specialist 73 City Council Item October 9, 2023 Item Receive Economic Development Commission Minutes dated August 8, 2023 File No.Item No: D.4 Agenda Section CONSENT AGENDA Prepared By Amy Weidman, Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Economic Development Commission minutes dated August 8, 2023." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 74 Economic Development Commission Minutes dated August 8, 2023 75 CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING AUGUST 8, 2023 Chairman Anderson called the meeting to order at 5:30 p.m. MEMBERS PRESENT: Chair Eric Anderson, Commissioners Duke Zurek, Chris Freeman, Stacy Goff, and Luke Bame. MEMBERS ABSENT: Cohen Lee STAFF PRESENT: Samantha DiMaggio, Economic Development Manager PUBLIC PRESENT: None. Member Zurek moved, Member Freeman seconded to approve the agenda. All voted in favor and the motion carried unanimously with a vote of 5 to 0. APPROVAL OF MINUTES: APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED JULY 11, 2023 Member Zurek moved, Member Bame seconded to approve the Minutes of the Economic Development Commission meeting dated July 11, 2023, as presented. All voted in favor and the motion carried unanimously with a vote of 5 to 0. DISCUSSION/GENERAL BUSINESS ITEMS: 1. Tax Increment Financing and Tax Abatement Training Economic Development Manager DiMaggio explained Tax Increment Financing (TIF.) The commission discussed the purpose, types, and mechanics of how the financing tool works. A TIF district doesn’t exclude a development from paying taxes; the taxes collected before the redevelopment are still paid as usual and the increased tax is used to help finance portions of the development for no more than the statutory allotted time. They reviewed the TIF Financing used for the development of The Venue. The Commissioners then reviewed what Tax Abatement is, how this tool differs from TIF, and how that tool can also be used to promote economic development. 76 Economic Development Commission – August 8, 2023 2 Director’s Report: Ms. DiMaggio shared two recommendations from the city attorney regarding the business subsidy policy. First, the attorney recommended using language about demonstrated ability. The second suggestion is to state that only the minimum amount of subsidy needed to make a project financially feasible can be provided. The commission agreed to the suggested updates. The proposed business subsidy policy will have two public hearings on September 25 with the EDA and City Council. Ms. DiMaggio discussed recent meetings with both established businesses and potential new projects, including a gas station, an apartment building, the Chanhassen Dinner Theatre, a hotel, Southwest Transit, and a daycare. She also is working with a dance studio regarding SAC & WAC fees. The next Economic Development Commission meeting is scheduled for September 12, 2023. ADJOURNMENT: Member Freeman moved, Member Zurek seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Economic Development Commission meeting was adjourned the meeting at 6:48 p.m. Submitted by Samantha DiMaggio Economic Development Manager Prepared by Amy Weidman Administrative Support Specialist 77 City Council Item October 9, 2023 Item Approve Claims Paid dated October 9, 2023 File No.Item No: D.5 Agenda Section CONSENT AGENDA Prepared By Danielle Washburn, Assistant Finance Director Reviewed By Kelly Grinnell SUGGESTED ACTION "The Chanhassen City Council Approves Claims Paid dated October 9, 2023." Motion Type Simple Majority Vote of members present Strategic Priority Financial Sustainability SUMMARY BACKGROUND DISCUSSION The following claims are submitted for review and approval on October 9, 2023: Total Claims $1,575,625.95 BUDGET RECOMMENDATION 78 ATTACHMENTS Payment Summary Payment Detail 79 Accounts Payable Checks by Date - Summary Vendor Name Check Date Void Checks Check Amount ALLIED BLACKTOP 09/21/2023 0.00 11,738.86 Allstate Peterbilt of South St Paul 09/21/2023 0.00 202.74 ALLSTREAM 09/21/2023 0.00 564.47 AMERICAN TIRE DISTRIBUTORS INC 09/21/2023 0.00 117.98 ANCOM COMMUNICATIONS 09/21/2023 0.00 286.00 Aspen Equipment 09/21/2023 0.00 15,682.00 ASPEN MILLS 09/21/2023 0.00 92.95 ASSOC OF MINN VOLUNTEER FIREFIGHTERS BENEFIT 09/21/2023 0.00 14.00 CAMPBELL KNUTSON 09/21/2023 0.00 17,727.79 Carburetion and Turbo Systems, Inc. 09/21/2023 0.00 150.00 CCP NI MASTER TENANT 4 LLC 09/21/2023 0.00 8,011.51 Centerpoint Energy 09/21/2023 0.00 630.53 CenturyLink 09/21/2023 0.00 64.00 COMPUTER INTEGRATION TECHN. 09/21/2023 0.00 118.00 DEM-CON LANDFILL 09/21/2023 0.00 54.99 Dennis Morrissey 09/21/2023 0.00 57.00 Edina Heating & Cooling Inc 09/21/2023 0.00 6,315.00 Engel Water Testing Inc 09/21/2023 0.00 780.00 Environmental Equipment & Services Inc 09/21/2023 0.00 344.62 Fun Express, LLC 09/21/2023 0.00 199.90 GONYEA HOMES 09/21/2023 0.00 2,900.00 GOPHER STATE ONE-CALL INC 09/21/2023 0.00 697.95 GREEN MEADOWS INC 09/21/2023 0.00 287.52 Guard Guys, LLC 09/21/2023 0.00 318.90 GYM WORKS INC 09/21/2023 0.00 591.50 HealthPartners, Inc. 09/21/2023 0.00 86,417.19 Innovative Office Solutions LLC 09/21/2023 0.00 59.75 JENNIFER POTTER 09/21/2023 0.00 74.92 Laurie Andries 09/21/2023 0.00 350.00 LEAGUE OF MINNESOTA CITIES 09/21/2023 0.00 22,683.00 Lockridge Grindal Nauen P.L.L.P 09/21/2023 0.00 3,333.33 MERLINS ACE HARDWARE 09/21/2023 0.00 1,072.55 Metronet Holdings, LLC 09/21/2023 0.00 55.65 METROPOLITAN COUNCIL 09/21/2023 0.00 209,343.98 Metropolitan Council, Env Svcs 09/21/2023 0.00 4,920.30 Midwest Fence & Mfg 09/21/2023 0.00 5,703.00 Minnesota Roadways Co 09/21/2023 0.00 818.80 Minnesota Safety Council 09/21/2023 0.00 368.00 MINNESOTA STATE FIRE DEPT ASSN 09/21/2023 0.00 325.00 MN DEPT OF LABOR AND INDUSTRY 09/21/2023 0.00 2,345.13 MN VALLEY ELECTRIC COOP 09/21/2023 0.00 247.06 MTI DISTRIBUTING INC 09/21/2023 0.00 151.13 NAPA AUTO & TRUCK PARTS 09/21/2023 0.00 93.11 Nokomis Energy, LLC 09/21/2023 0.00 3,620.54 Page 1 of 3 80 Vendor Name Check Date Void Checks Check Amount North American Safety, Inc. 09/21/2023 0.00 1,273.28 NORTHERN POWER PRODUCTS INC 09/21/2023 0.00 164.47 NORTHWEST ASPHALT INC 09/21/2023 0.00 959,378.73 NOVEL SOLAR THREE, LLC 09/21/2023 0.00 12,468.91 PAUL PALMER 09/21/2023 0.00 57.00 Pinnacle Pest Control 09/21/2023 0.00 1,125.00 PRECISE MRM LLC 09/21/2023 0.00 273.00 Premium Waters, Inc 09/21/2023 0.00 4.32 Rachel Arsenault 09/21/2023 0.00 459.33 RAINBOW TREE COMPANY 09/21/2023 0.00 152.00 RMB Environmental Laboratories Inc 09/21/2023 0.00 217.80 Robb's Electrical 09/21/2023 0.00 848.00 Schwickert Company 09/21/2023 0.00 930.00 SCOTT NELSON COACHING INC 09/21/2023 0.00 1,500.00 Sophia Martin 09/21/2023 0.00 91.00 SRF CONSULTING GROUP INC 09/21/2023 0.00 3,899.37 Taylor Electric Company, LLC 09/21/2023 0.00 2,430.80 The Howard E. Nyhart Co. Inc 09/21/2023 0.00 2,750.00 Three Timbers LLC 09/21/2023 0.00 2,613.00 Utility Logic LLC 09/21/2023 0.00 246.27 Water Heaters Now Inc 09/21/2023 0.00 128.80 WAYTEK INC 09/21/2023 0.00 47.04 WM MUELLER & SONS INC 09/21/2023 0.00 985.85 ZIEGLER INC 09/21/2023 0.00 51.17 Barr Engineering Company 09/28/2023 0.00 3,905.00 Carver County 09/28/2023 0.00 1,100.00 Carver County 4-H Federation 09/28/2023 0.00 500.00 CDW GOVERNMENT LLC 09/28/2023 0.00 5,610.00 Centerpoint Energy 09/28/2023 0.00 2,060.22 CenturyLink 09/28/2023 0.00 56.83 Crystal Infosystems LLC 09/28/2023 0.00 272.00 DAKOTA SUPPLY GROUP 09/28/2023 0.00 2,599.20 Daniel & Sarah Karlgaard 09/28/2023 0.00 67.50 DeeAnn Triethart 09/28/2023 0.00 120.00 Fidelity Security Life 09/28/2023 0.00 296.95 Forms & Systems of Minnesota 09/28/2023 0.00 39.75 GRANICUS INC 09/28/2023 0.00 5,500.00 GRAYBAR 09/28/2023 0.00 1,478.23 GS DIRECT INC 09/28/2023 0.00 207.23 HANSEN THORP PELLINEN OLSON 09/28/2023 0.00 6,399.50 Health Strategies 09/28/2023 0.00 5,381.00 Holt Tour and Charter Inc 09/28/2023 0.00 850.00 Holton Electric Contractors LLC 09/28/2023 0.00 1,980.00 Juli Al-Hilwani 09/28/2023 0.00 75.00 Lennar 09/28/2023 0.00 10,000.00 LYMAN LUMBER 09/28/2023 0.00 1,014.32 Macqueen Emergency Group 09/28/2023 0.00 4,515.00 Marco Inc 09/28/2023 0.00 735.00 MN VALLEY ELECTRIC COOP 09/28/2023 0.00 123.07 NAPA AUTO & TRUCK PARTS 09/28/2023 0.00 152.38 North American Safety, Inc. 09/28/2023 0.00 1,131.65 NOVEL SOLAR THREE, LLC 09/28/2023 0.00 13,373.38 On-Site Medical Services Inc 09/28/2023 0.00 1,140.00 Page 2 of 3 81 Vendor Name Check Date Void Checks Check Amount Potentia MN Solar 09/28/2023 0.00 11,475.65 Shadywood Tree Experts and Landscaping 09/28/2023 0.00 7,375.00 SHERWIN WILLIAMS 09/28/2023 0.00 93.98 Snow Kreilich Architects 09/28/2023 0.00 1,080.00 Taylor Electric Company, LLC 09/28/2023 0.00 1,880.00 TouchPoint Logic LLC 09/28/2023 0.00 400.00 True North Controls 09/28/2023 0.00 1,845.00 US Home Corporation 09/28/2023 0.00 2,500.00 USA BLUE BOOK 09/28/2023 0.00 995.85 VALLEY PAVING INC 09/28/2023 0.00 30,580.83 VIKING ELECTRIC SUPPLY 09/28/2023 0.00 339.28 Waste Management of Minnesota, Inc 09/28/2023 0.00 1,610.24 Water Conservation Services, Inc. 09/28/2023 0.00 13,133.10 WM MUELLER & SONS INC 09/28/2023 0.00 504.29 WSB & ASSOCIATES INC 09/28/2023 0.00 8,589.00 XCEL ENERGY INC 09/28/2023 0.00 19,845.33 ZARNOTH BRUSH WORKS INC 09/28/2023 0.00 669.40 Report Total:0.00 1,575,625.95 Page 3 of 3 82 AP Check Detail User: dwashburn Printed: 10/1/2023 3:42:52 PM Last Name Acct 1 Amount Check Date Description Al-Hilwani Juli 101-1539-4343 75.00 9/28/2023 Pickleball Lessons 75.00 9/28/2023 Al-Hilwani Juli 75.00 ALLIED BLACKTOP 420-4228-4751 11,738.86 9/21/2023 2023 Sealcoat -FoxPath/CarverBeach 11,738.86 9/21/2023 ALLIED BLACKTOP 11,738.86 Allstate Peterbilt of South St Paul 101-1550-4140 202.74 9/21/2023 Electrical Junction Block 202.74 9/21/2023 Allstate Peterbilt of South St Paul 202.74 ALLSTREAM 101-1160-4310 564.47 9/21/2023 Mitel phone system maintenance 564.47 9/21/2023 ALLSTREAM 564.47 AMERICAN TIRE DISTRIBUTORS INC 101-1550-4120 117.98 9/21/2023 Trail Trailer 117.98 9/21/2023 AP - Check Detail (10/1/2023)Page 1 of 22 83 Last Name Acct 1 Amount Check Date Description AMERICAN TIRE DISTRIBUTORS INC 117.98 ANCOM COMMUNICATIONS 101-1220-4260 286.00 9/21/2023 APX Wireless RSM W/DUC 286.00 9/21/2023 ANCOM COMMUNICATIONS 286.00 Andries Laurie 101-1120-4371 350.00 9/21/2023 Communication/Accountability 350.00 9/21/2023 Andries Laurie 350.00 Arsenault Rachel 101-1420-4381 459.33 9/21/2023 Plane Ticket Insurance Parking 459.33 9/21/2023 Arsenault Rachel 459.33 Aspen Equipment 400-0000-4704 7,841.00 9/21/2023 Upfit Plow Truck Light Aspen Equipment 400-0000-4704 7,841.00 9/21/2023 Upfit: Plow Truck - Light 15,682.00 9/21/2023 Aspen Equipment 15,682.00 ASPEN MILLS 101-1220-4240 60.95 9/21/2023 cargo pant ASPEN MILLS 101-1220-4240 32.00 9/21/2023 Belt 92.95 9/21/2023 ASPEN MILLS 92.95 Barr Engineering Company 700-7025-4300 1,067.00 9/28/2023 Well Rehab Project #3 #4 #11 #15 Barr Engineering Company 700-7025-4300 2,838.00 9/28/2023 Chanhassen Well 10 and 12 Rehab Project AP - Check Detail (10/1/2023)Page 2 of 22 84 Last Name Acct 1 Amount Check Date Description 3,905.00 9/28/2023 Barr Engineering Company 3,905.00 CAMPBELL KNUTSON 101-1140-4302 17,727.79 9/21/2023 Legal Services - Acct 594C 17,727.79 9/21/2023 CAMPBELL KNUTSON 17,727.79 Carburetion and Turbo Systems, Inc.101-1320-4120 75.00 9/21/2023 Tennant Nissian Emission Test Carburetion and Turbo Systems, Inc.700-0000-4120 75.00 9/21/2023 Tennant Nissian Emission Test 150.00 9/21/2023 Carburetion and Turbo Systems, Inc. 150.00 Carver County 700-1160-4326 650.00 9/28/2023 CarverFiber - WWTP / W-3 7 8 / LS-24 Carver County 101-1160-4326 450.00 9/28/2023 CarverLink Internet / Fiber - Sept 1,100.00 9/28/2023 Carver County 1,100.00 Carver County 4-H Federation 101-1613-4300 500.00 9/28/2023 4th of July 2023 Llama Experience 500.00 9/28/2023 Carver County 4-H Federation 500.00 CCP NI MASTER TENANT 4 LLC 101-1350-4320 3,522.31 9/21/2023 CCP NI MASTER TENANT 4 LLC 101-1550-4320 418.38 9/21/2023 CCP NI MASTER TENANT 4 LLC 701-0000-4320 1,428.88 9/21/2023 CCP NI MASTER TENANT 4 LLC 700-7019-4320 1,959.92 9/21/2023 CCP NI MASTER TENANT 4 LLC 101-1120-1193 134.75 9/21/2023 CCP NI MASTER TENANT 4 LLC 101-1540-4320 394.90 9/21/2023 CCP NI MASTER TENANT 4 LLC 101-1600-4320 32.23 9/21/2023 AP - Check Detail (10/1/2023)Page 3 of 22 85 Last Name Acct 1 Amount Check Date Description CCP NI MASTER TENANT 4 LLC 700-0000-4320 120.14 9/21/2023 8,011.51 9/21/2023 CCP NI MASTER TENANT 4 LLC 8,011.51 CDW GOVERNMENT LLC 101-1160-4205 5,610.00 9/28/2023 Malwarebytes AV Patch Mgmt 1 Yr 5,610.00 9/28/2023 CDW GOVERNMENT LLC 5,610.00 Centerpoint Energy 700-7019-4321 35.79 9/21/2023 Gas Charges Centerpoint Energy 700-7043-4321 85.72 9/21/2023 Gas Charges Centerpoint Energy 101-1550-4321 35.00 9/21/2023 Gas Charges Centerpoint Energy 101-1170-4321 410.37 9/21/2023 Gas Charges Centerpoint Energy 700-0000-4321 20.00 9/21/2023 Gas Charges Centerpoint Energy 701-0000-4321 23.65 9/21/2023 Gas Charges Centerpoint Energy 101-1600-4321 20.00 9/21/2023 Gas Charges 630.53 9/21/2023 Centerpoint Energy 101-1190-4321 1,618.54 9/28/2023 Gas Charges Centerpoint Energy 700-0000-4321 27.21 9/28/2023 Gas Charges Centerpoint Energy 701-0000-4321 27.21 9/28/2023 Gas Charges Centerpoint Energy 101-1312-4321 217.64 9/28/2023 Gas Charges Centerpoint Energy 101-1220-4321 100.81 9/28/2023 Gas Charges Centerpoint Energy 101-1530-4321 48.81 9/28/2023 Gas Charges Centerpoint Energy 101-1170-4321 20.00 9/28/2023 Gas Charges 2,060.22 9/28/2023 Centerpoint Energy 2,690.75 CenturyLink 701-0000-4310 32.00 9/21/2023 Monthly Charges CenturyLink 700-0000-4310 32.00 9/21/2023 Monthly charges 64.00 9/21/2023 CenturyLink 700-7043-4310 56.83 9/28/2023 Telephone & Communication Charges AP - Check Detail (10/1/2023)Page 4 of 22 86 Last Name Acct 1 Amount Check Date Description 56.83 9/28/2023 CenturyLink 120.83 COMPUTER INTEGRATION TECHN.101-1160-4200 118.00 9/21/2023 Aruba Wireless Support - Annual Renewal 118.00 9/21/2023 COMPUTER INTEGRATION TECHN. 118.00 Crystal Infosystems LLC 101-1120-4359 10.00 9/28/2023 Toner Rec Center HP printer/Late Charge per MN Statute 471.425 Crystal Infosystems LLC 101-1120-4110 262.00 9/28/2023 Toner Rec Center HP printer/Late Charge per MN Statute 471.425 272.00 9/28/2023 Crystal Infosystems LLC 272.00 DAKOTA SUPPLY GROUP 700-0000-4550 2,599.20 9/28/2023 Red Upper Standpipe One-Piece 2,599.20 9/28/2023 DAKOTA SUPPLY GROUP 2,599.20 DEM-CON LANDFILL 101-1320-4150 54.99 9/21/2023 Small Furniture Disposal 54.99 9/21/2023 DEM-CON LANDFILL 54.99 Edina Heating & Cooling Inc 700-0000-4550 6,315.00 9/21/2023 Mini Split Estimate 6,315.00 9/21/2023 Edina Heating & Cooling Inc 6,315.00 Engel Water Testing Inc 700-0000-4550 780.00 9/21/2023 Water Samples - August 2023 AP - Check Detail (10/1/2023)Page 5 of 22 87 Last Name Acct 1 Amount Check Date Description 780.00 9/21/2023 Engel Water Testing Inc 780.00 Environmental Equipment & Services Inc 101-1320-4120 344.62 9/21/2023 Pump-Water 12VDC 344.62 9/21/2023 Environmental Equipment & Services Inc 344.62 Fidelity Security Life 101-0000-2007 265.46 9/28/2023 Vision Insurance Fidelity Security Life 700-0000-2007 15.75 9/28/2023 Vision Insurance Fidelity Security Life 720-0000-2007 6.63 9/28/2023 Vision Insurance Fidelity Security Life 701-0000-2007 9.11 9/28/2023 Vision Insurance 296.95 9/28/2023 Fidelity Security Life 296.95 Forms & Systems of Minnesota 101-1600-4240 39.75 9/28/2023 Apparel Sport-Tex Ragian 39.75 9/28/2023 Forms & Systems of Minnesota 39.75 Fun Express, LLC 101-1614-4126 199.90 9/21/2023 Halloween Friends Foam Magnet 199.90 9/21/2023 Fun Express, LLC 199.90 GONYEA HOMES 101-0000-2073 2,900.00 9/21/2023 Erosion Control - Permit 2023-00699 - 1898 Della Dr 2,900.00 9/21/2023 AP - Check Detail (10/1/2023)Page 6 of 22 88 Last Name Acct 1 Amount Check Date Description GONYEA HOMES 2,900.00 GOPHER STATE ONE-CALL INC 700-0000-4300 348.97 9/21/2023 August 2023 Calls GOPHER STATE ONE-CALL INC 701-0000-4300 348.98 9/21/2023 August 2023 Calls 697.95 9/21/2023 GOPHER STATE ONE-CALL INC 697.95 GRANICUS INC 101-1160-4133 5,500.00 9/28/2023 Granicus Encoder Replacement 5,500.00 9/28/2023 GRANICUS INC 5,500.00 GRAYBAR 101-1350-4120 962.35 9/28/2023 Light Pole GRAYBAR 101-1550-4120 515.88 9/28/2023 MVR1500/U/Sports 1,478.23 9/28/2023 GRAYBAR 1,478.23 GREEN MEADOWS INC 101-1220-1193 287.52 9/21/2023 Code Enforcement Lawn Mowing 287.52 9/21/2023 GREEN MEADOWS INC 287.52 GS DIRECT INC 101-1120-4110 207.23 9/28/2023 Plotter Paper 207.23 9/28/2023 GS DIRECT INC 207.23 Guard Guys, LLC 700-0000-4300 141.50 9/21/2023 Drug Test Guard Guys, LLC 701-0000-4300 141.50 9/21/2023 Drug Test Guard Guys, LLC 101-1120-4352 35.90 9/21/2023 Background checks AP - Check Detail (10/1/2023)Page 7 of 22 89 Last Name Acct 1 Amount Check Date Description 318.90 9/21/2023 Guard Guys, LLC 318.90 GYM WORKS INC 101-1530-4530 591.50 9/21/2023 Treadmill Handrail Elliptical Rocker Arm Bike Pedals 591.50 9/21/2023 GYM WORKS INC 591.50 HANSEN THORP PELLINEN OLSON 700-7058-4303 2,896.25 9/28/2023 EWT Improvements-Survey & Design HANSEN THORP PELLINEN OLSON 420-1310-4710 3,503.25 9/28/2023 Chanhassen Trail/Walk 6,399.50 9/28/2023 HANSEN THORP PELLINEN OLSON 6,399.50 Health Strategies 101-1220-4352 5,381.00 9/28/2023 Medical Examination/PSA/Mask Fit-Geske K 5,381.00 9/28/2023 Health Strategies 5,381.00 HealthPartners, Inc.101-0000-2012 1,421.42 9/21/2023 Health - October Cobra HealthPartners, Inc.701-0000-2013 318.86 9/21/2023 Dental - October HealthPartners, Inc.101-0000-2012 26,296.27 9/21/2023 Health - October HealthPartners, Inc.700-0000-2012 2,842.85 9/21/2023 Health - October HealthPartners, Inc.101-0000-2012 1,776.22 9/21/2023 Health - October Cobra HealthPartners, Inc.101-0000-2012 40,853.06 9/21/2023 Health - October HealthPartners, Inc.700-0000-2013 409.94 9/21/2023 Dental - October HealthPartners, Inc.720-0000-2013 91.08 9/21/2023 Dental - October HealthPartners, Inc.700-0000-2012 2,664.33 9/21/2023 Health - October HealthPartners, Inc.701-0000-2012 1,421.41 9/21/2023 Health - October HealthPartners, Inc.101-0000-2013 136.66 9/21/2023 Dental-October Cobra HealthPartners, Inc.720-0000-2012 1,421.42 9/21/2023 Health - October HealthPartners, Inc.101-0000-2013 4,099.34 9/21/2023 Dental - October HealthPartners, Inc.701-0000-2012 2,664.33 9/21/2023 Health - October AP - Check Detail (10/1/2023)Page 8 of 22 90 Last Name Acct 1 Amount Check Date Description 86,417.19 9/21/2023 HealthPartners, Inc. 86,417.19 Holt Tour and Charter Inc 101-1560-4349 850.00 9/28/2023 Harriet Island Boat Cruise Transportation 850.00 9/28/2023 Holt Tour and Charter Inc 850.00 Holton Electric Contractors LLC 701-0000-4510 1,980.00 9/28/2023 Service Work 1,980.00 9/28/2023 Holton Electric Contractors LLC 1,980.00 Innovative Office Solutions LLC 101-1120-4110 59.75 9/21/2023 Sortkwik Paper Marker 59.75 9/21/2023 Innovative Office Solutions LLC 59.75 Karlgaard Daniel & Sarah 101-0000-2033 67.50 9/28/2023 Overpayment - State Surcharge - 9361 Kiowa Trl 67.50 9/28/2023 Karlgaard Daniel & Sarah 67.50 LEAGUE OF MINNESOTA CITIES 101-1110-4360 22,683.00 9/21/2023 Membership Dues 22,683.00 9/21/2023 LEAGUE OF MINNESOTA CITIES 22,683.00 Lennar 101-0000-2072 2,500.00 9/28/2023 As-Built escrow 2054 Paisley Path Lennar 101-0000-2072 2,500.00 9/28/2023 As-Built escrow 2001 Paisley Path AP - Check Detail (10/1/2023)Page 9 of 22 91 Last Name Acct 1 Amount Check Date Description Lennar 101-0000-2072 2,500.00 9/28/2023 As-Built escrow 1953 Paisley Path Lennar 101-0000-2072 2,500.00 9/28/2023 As-Built escrow 2141 Paisley Path 10,000.00 9/28/2023 Lennar 10,000.00 Lockridge Grindal Nauen P.L.L.P 101-1110-4312 3,333.33 9/21/2023 Professional Services - Sept 2023 3,333.33 9/21/2023 Lockridge Grindal Nauen P.L.L.P 3,333.33 LYMAN LUMBER 101-1550-4150 1,014.32 9/28/2023 2X12 8' GC Treated 2X4 14' AG Treated 2X4 16' AG Treated 1,014.32 9/28/2023 LYMAN LUMBER 1,014.32 Macqueen Emergency Group 101-1220-4530 4,515.00 9/28/2023 Scba Flow Test Portacount Fit 4,515.00 9/28/2023 Macqueen Emergency Group 4,515.00 Marco Inc 101-1160-4411 735.00 9/28/2023 Copier monthly fee 735.00 9/28/2023 Marco Inc 735.00 Martin Sophia 101-1539-4343 91.00 9/21/2023 Art Class Instruction 91.00 9/21/2023 Martin Sophia 91.00 AP - Check Detail (10/1/2023)Page 10 of 22 92 Last Name Acct 1 Amount Check Date Description MERLINS ACE HARDWARE 101-1320-4260 17.99 9/21/2023 Engineer Tape 1"" MERLINS ACE HARDWARE 700-0000-4550 120.08 9/21/2023 GFCI Outlet Paint Paintbrush MERLINS ACE HARDWARE 101-1638-4130 12.99 9/21/2023 Charcoal MERLINS ACE HARDWARE 700-0000-4120 11.98 9/21/2023 Carb & Choke Clnr MERLINS ACE HARDWARE 101-1550-4410 53.00 9/21/2023 Rental - Diamond Blade 10"" MERLINS ACE HARDWARE 101-1220-4144 89.99 9/21/2023 Battery Sla MERLINS ACE HARDWARE 101-1550-4120 156.96 9/21/2023 Wire Connector Red Battery MERLINS ACE HARDWARE 701-0000-4150 28.49 9/21/2023 Kneepads Compact Tape Measure MERLINS ACE HARDWARE 101-1550-4150 64.51 9/21/2023 Foam Wasp & Hornet killer MERLINS ACE HARDWARE 101-1320-4150 113.33 9/21/2023 2 in 1 File Guide Keykrafter MERLINS ACE HARDWARE 101-1550-4510 125.49 9/21/2023 toilet plunger Cleaner Masking Tape MERLINS ACE HARDWARE 101-1220-4120 109.93 9/21/2023 Push Broom CM Wide Mouth TL MERLINS ACE HARDWARE 700-0000-4150 41.25 9/21/2023 Kneepads Compact Tape Measure MERLINS ACE HARDWARE 700-7043-4120 69.42 9/21/2023 Wrench Comb Scraper Fasteners MERLINS ACE HARDWARE 101-1540-4130 25.97 9/21/2023 Dawn Dish Soap Trash Bag MERLINS ACE HARDWARE 701-0000-4551 11.99 9/21/2023 Acetone Qt MERLINS ACE HARDWARE 700-7019-4120 19.18 9/21/2023 Coupler/Plug Set 1,072.55 9/21/2023 MERLINS ACE HARDWARE 1,072.55 Metronet Holdings, LLC 700-7043-4310 55.65 9/21/2023 Telephone & Communications Charges 55.65 9/21/2023 Metronet Holdings, LLC 55.65 METROPOLITAN COUNCIL 701-0000-4509 209,343.98 9/21/2023 Wastewater services-October 209,343.98 9/21/2023 METROPOLITAN COUNCIL 209,343.98 Metropolitan Council, Env Svcs 701-0000-2023 4,970.00 9/21/2023 August SAC Metropolitan Council, Env Svcs 101-1250-3816 -49.70 9/21/2023 August SAC 4,920.30 9/21/2023 AP - Check Detail (10/1/2023)Page 11 of 22 93 Last Name Acct 1 Amount Check Date Description Metropolitan Council, Env Svcs 4,920.30 Midwest Fence & Mfg 720-7025-4706 5,703.00 9/21/2023 22-05 Pond Project - Homeowner Fencing 8080 Marsh Dr 5,703.00 9/21/2023 Midwest Fence & Mfg 5,703.00 Minnesota Roadways Co 101-1320-4157 445.00 9/21/2023 Slow Set Asphalt Emulsion Minnesota Roadways Co 101-1320-4157 373.80 9/21/2023 Slow Set Asphalt Emulsion 818.80 9/21/2023 Minnesota Roadways Co 818.80 Minnesota Safety Council 101-1560-4343 368.00 9/21/2023 Coach Exp Driver Plus Student Workbooks 368.00 9/21/2023 Minnesota Safety Council 368.00 MINNESOTA STATE FIRE DEPT ASSN 101-1220-4370 325.00 9/21/2023 Conference Registration - B Rowan 325.00 9/21/2023 MINNESOTA STATE FIRE DEPT ASSN 325.00 MN DEPT OF LABOR AND INDUSTRY 101-1250-3818 -47.86 9/21/2023 August Surcharge MN DEPT OF LABOR AND INDUSTRY 101-0000-2022 2,392.99 9/21/2023 August Surcharge 2,345.13 9/21/2023 MN DEPT OF LABOR AND INDUSTRY 2,345.13 MN VALLEY ELECTRIC COOP 101-1350-4320 247.06 9/21/2023 Electric Charges AP - Check Detail (10/1/2023)Page 12 of 22 94 Last Name Acct 1 Amount Check Date Description 247.06 9/21/2023 MN VALLEY ELECTRIC COOP 101-1350-4320 123.07 9/28/2023 Electric Charges 123.07 9/28/2023 MN VALLEY ELECTRIC COOP 370.13 Morrissey Dennis 101-1767-4341 57.00 9/21/2023 Softball Umpire 57.00 9/21/2023 Morrissey Dennis 57.00 MTI DISTRIBUTING INC 101-1550-4120 122.99 9/21/2023 Gear-Bevel 17 tooth MTI DISTRIBUTING INC 101-1550-4120 2.27 9/21/2023 Gage Control Washer - Flat Screw HHR Decal MTI DISTRIBUTING INC 101-1550-4120 25.87 9/21/2023 Gage Control Decal Designation Left Front deck 151.13 9/21/2023 MTI DISTRIBUTING INC 151.13 NAPA AUTO & TRUCK PARTS 101-1550-4120 53.35 9/21/2023 Spin-On Fluid Filter NAPA AUTO & TRUCK PARTS 101-1320-4120 39.76 9/21/2023 Spin-On Fluid Filter 93.11 9/21/2023 NAPA AUTO & TRUCK PARTS 101-1550-4140 152.38 9/28/2023 Fluid Filter Trans Filter 152.38 9/28/2023 NAPA AUTO & TRUCK PARTS 245.49 Nokomis Energy, LLC 700-0000-4320 94.81 9/21/2023 Electricity Charges Nokomis Energy, LLC 701-0000-4320 94.81 9/21/2023 Electricity Charges Nokomis Energy, LLC 700-7043-4320 2,672.40 9/21/2023 Electricity Charges Nokomis Energy, LLC 101-1312-4320 758.52 9/21/2023 Electricity Charges AP - Check Detail (10/1/2023)Page 13 of 22 95 Last Name Acct 1 Amount Check Date Description 3,620.54 9/21/2023 Nokomis Energy, LLC 3,620.54 North American Safety, Inc.101-1550-4240 180.00 9/21/2023 Safety Vest North American Safety, Inc.101-1550-4240 1,093.28 9/21/2023 Shirts - Safety Green 1,273.28 9/21/2023 North American Safety, Inc.700-0000-4240 884.65 9/28/2023 Class 3 High Performance Long Sleeve Shirt - Safety Green North American Safety, Inc.101-1550-4240 247.00 9/28/2023 Safety Apparel - Best Vest 1,131.65 9/28/2023 North American Safety, Inc. 2,404.93 NORTHERN POWER PRODUCTS INC 101-1320-4120 164.47 9/21/2023 TImer 164.47 9/21/2023 NORTHERN POWER PRODUCTS INC 164.47 NORTHWEST ASPHALT INC 720-6051-4751 172,602.62 9/21/2023 2023 Pavement Rehab #23-01 NORTHWEST ASPHALT INC 601-6051-4751 534,293.80 9/21/2023 2023 Pavement Rehab #23-01 NORTHWEST ASPHALT INC 601-6056-4751 130,486.48 9/21/2023 2023 Mill and Overlay Project NORTHWEST ASPHALT INC 700-6051-4751 121,995.83 9/21/2023 2023 Pavement Rehab #23-01 959,378.73 9/21/2023 NORTHWEST ASPHALT INC 959,378.73 NOVEL SOLAR THREE, LLC 101-1350-4320 194.48 9/21/2023 Electricity Charges-Late Fee per MN Statute 471.425 NOVEL SOLAR THREE, LLC 700-0000-4320 7,953.40 9/21/2023 Electricity Charges-Late Fee per MN Statute 471.425 NOVEL SOLAR THREE, LLC 700-0000-4359 121.62 9/21/2023 Electricity Charges-Late Fee per MN Statute 471.425 NOVEL SOLAR THREE, LLC 701-0000-4320 4,136.76 9/21/2023 Electricity Charges-Late Fee per MN Statute 471.425 NOVEL SOLAR THREE, LLC 701-0000-4359 62.65 9/21/2023 Electricity Charges-Late Fee per MN Statute 471.425 AP - Check Detail (10/1/2023)Page 14 of 22 96 Last Name Acct 1 Amount Check Date Description 12,468.91 9/21/2023 NOVEL SOLAR THREE, LLC 701-0000-4320 4,571.74 9/28/2023 Electricity Charges NOVEL SOLAR THREE, LLC 700-0000-4320 8,590.86 9/28/2023 Electricity Charges NOVEL SOLAR THREE, LLC 101-1350-4320 210.78 9/28/2023 Electricity Charges 13,373.38 9/28/2023 NOVEL SOLAR THREE, LLC 25,842.29 On-Site Medical Services Inc 701-0000-4300 228.00 9/28/2023 Audiometric Exam Respiratory Exam On-Site Medical Services Inc 101-1370-4300 228.00 9/28/2023 Audiometric Exam Respiratory Exam On-Site Medical Services Inc 700-0000-4300 228.00 9/28/2023 Audiometric Exam Respiratory Exam On-Site Medical Services Inc 101-1320-4300 228.00 9/28/2023 Audiometric Exam Respiratory Exam On-Site Medical Services Inc 101-1550-4300 228.00 9/28/2023 Audiometric Exam Respiratory Exam 1,140.00 9/28/2023 On-Site Medical Services Inc 1,140.00 PALMER PAUL 101-1767-4341 57.00 9/21/2023 Softball Umpire 57.00 9/21/2023 PALMER PAUL 57.00 Pinnacle Pest Control 101-1220-4300 200.00 9/21/2023 Pest Control - Fire Station Pinnacle Pest Control 101-1312-4300 250.00 9/21/2023 Pest Control - Public Works Pinnacle Pest Control 700-7019-4300 125.00 9/21/2023 Pest Control - East Water Plant Pinnacle Pest Control 101-1190-4300 225.00 9/21/2023 Pest Control - Library Pinnacle Pest Control 101-1170-4300 200.00 9/21/2023 Pest Control - City Hall Pinnacle Pest Control 700-7043-4300 125.00 9/21/2023 Pest Control - West Water Plant 1,125.00 9/21/2023 Pinnacle Pest Control 1,125.00 Potentia MN Solar 101-1190-4320 5,006.11 9/28/2023 Monthly Charges AP - Check Detail (10/1/2023)Page 15 of 22 97 Last Name Acct 1 Amount Check Date Description Potentia MN Solar 101-1170-4320 3,804.63 9/28/2023 Monthly Charges Potentia MN Solar 700-0000-4320 2,664.91 9/28/2023 Monthly Charges 11,475.65 9/28/2023 Potentia MN Solar 11,475.65 POTTER JENNIFER 101-1120-4380 74.92 9/21/2023 Mileage 74.92 9/21/2023 POTTER JENNIFER 74.92 PRECISE MRM LLC 101-1320-4300 273.00 9/21/2023 10MB Flat Data Plan US with NAF 273.00 9/21/2023 PRECISE MRM LLC 273.00 Premium Waters, Inc 101-1550-4120 4.32 9/21/2023 Monthly - Sept 2023 4.32 9/21/2023 Premium Waters, Inc 4.32 RAINBOW TREE COMPANY 101-1550-4574 152.00 9/21/2023 Scale Magnolia Second Spray 152.00 9/21/2023 RAINBOW TREE COMPANY 152.00 RMB Environmental Laboratories Inc 720-0000-4300 217.80 9/21/2023 Beach Monitoring 217.80 9/21/2023 RMB Environmental Laboratories Inc 217.80 AP - Check Detail (10/1/2023)Page 16 of 22 98 Last Name Acct 1 Amount Check Date Description Robb's Electrical 101-1530-4510 848.00 9/21/2023 Plates for Rec Center - 16 Gauge 848.00 9/21/2023 Robb's Electrical 848.00 Schwickert Company 101-1190-4510 930.00 9/21/2023 System Eval - Replace Actuator & Test - Chan Library 930.00 9/21/2023 Schwickert Company 930.00 SCOTT NELSON COACHING INC 101-1220-4370 1,500.00 9/21/2023 Creating a culture of excellence 1,500.00 9/21/2023 SCOTT NELSON COACHING INC 1,500.00 Shadywood Tree Experts and Landscaping 101-1550-4572 1,600.00 9/28/2023 Tree Removal - 8041 Erie Ave Shadywood Tree Experts and Landscaping 101-1550-4574 1,045.00 9/28/2023 Tree Removal - Disease - 2080 Melody Hill Rd Shadywood Tree Experts and Landscaping 101-1550-4572 4,730.00 9/28/2023 Tree Removal - 2080 Melody Hill Rd 7,375.00 9/28/2023 Shadywood Tree Experts and Landscaping 7,375.00 SHERWIN WILLIAMS 101-1320-4154 93.98 9/28/2023 Guard Rac X7/8 93.98 9/28/2023 SHERWIN WILLIAMS 93.98 Snow Kreilich Architects 402-4003-4300 1,080.00 9/28/2023 Fire Station 1 1,080.00 9/28/2023 AP - Check Detail (10/1/2023)Page 17 of 22 99 Last Name Acct 1 Amount Check Date Description Snow Kreilich Architects 1,080.00 SRF CONSULTING GROUP INC 601-6058-4303 3,899.37 9/21/2023 TH 41 Roundabout at Minnetonka Middle School West 3,899.37 9/21/2023 SRF CONSULTING GROUP INC 3,899.37 Taylor Electric Company, LLC 101-1613-4359 70.80 9/21/2023 Replace Panel Board/Late Charge per Mn 471.425 Taylor Electric Company, LLC 101-1550-4300 2,360.00 9/21/2023 Replace Panel Board/Late Charge per Mn 471.425 2,430.80 9/21/2023 Taylor Electric Company, LLC 101-1350-4566 1,880.00 9/28/2023 Service - Market St Breaker 1,880.00 9/28/2023 Taylor Electric Company, LLC 4,310.80 The Howard E. Nyhart Co. Inc 101-1130-4301 2,750.00 9/21/2023 FYE 2022 GASB Report 2,750.00 9/21/2023 The Howard E. Nyhart Co. Inc 2,750.00 Three Timbers LLC 101-1320-4157 2,613.00 9/21/2023 Wall block Installation Fee Block Disposal 2,613.00 9/21/2023 Three Timbers LLC 2,613.00 TouchPoint Logic LLC 101-1160-4530 400.00 9/28/2023 Repair of CC AV System 400.00 9/28/2023 TouchPoint Logic LLC 400.00 AP - Check Detail (10/1/2023)Page 18 of 22 100 Last Name Acct 1 Amount Check Date Description Triethart DeeAnn 101-1120-4360 120.00 9/28/2023 Notary - DeeAnn Triethart 120.00 9/28/2023 Triethart DeeAnn 120.00 True North Controls 700-0000-4550 85.00 9/28/2023 10W 10dB Attenuator N Male True North Controls 701-0000-4300 1,760.00 9/28/2023 SRI Radio Upgrade 1,845.00 9/28/2023 True North Controls 1,845.00 US Home Corporation 101-0000-2072 2,500.00 9/28/2023 As Built escrow 7278 Purple Parkway 2,500.00 9/28/2023 US Home Corporation 2,500.00 USA BLUE BOOK 700-7019-4150 995.85 9/28/2023 Drum Pump MSL-PP 995.85 9/28/2023 USA BLUE BOOK 995.85 Utility Logic LLC 700-0000-4150 246.27 9/21/2023 Utility Logic 55' Utility logic 30' extension lead spool 246.27 9/21/2023 Utility Logic LLC 246.27 VALLEY PAVING INC 601-6046-4751 23,423.55 9/28/2023 2022 Lake Lucy Road Rehab VALLEY PAVING INC 701-6046-4751 1,789.32 9/28/2023 2022 Lake Lucy Road Rehab VALLEY PAVING INC 700-6046-4751 3,280.42 9/28/2023 2022 Lake Lucy Road Rehab VALLEY PAVING INC 720-6046-4751 2,087.54 9/28/2023 2022 Lake Lucy Road Rehab 30,580.83 9/28/2023 AP - Check Detail (10/1/2023)Page 19 of 22 101 Last Name Acct 1 Amount Check Date Description VALLEY PAVING INC 30,580.83 VIKING ELECTRIC SUPPLY 101-1350-4120 339.28 9/28/2023 Keyste kit LED27PSHID 339.28 9/28/2023 VIKING ELECTRIC SUPPLY 339.28 VOLUNTEER FIREFIGHTERS BENEFIT ASSOC OF MINN 101-1220-4300 14.00 9/21/2023 Volunteer / Paid on call - James Van Eyll 14.00 9/21/2023 VOLUNTEER FIREFIGHTERS BENEFIT ASSOC OF MINN 14.00 Waste Management of Minnesota, Inc 101-1220-4329 104.15 9/28/2023 Garbage Service Waste Management of Minnesota, Inc 700-0000-4329 16.97 9/28/2023 Garbage Service Waste Management of Minnesota, Inc 101-1550-4329 730.07 9/28/2023 Garbage Service Waste Management of Minnesota, Inc 101-1170-4329 195.78 9/28/2023 Garbage Service Waste Management of Minnesota, Inc 101-1312-4329 135.76 9/28/2023 Garbage Service Waste Management of Minnesota, Inc 720-7202-4329 84.52 9/28/2023 Garbage Service Waste Management of Minnesota, Inc 101-1190-4329 326.02 9/28/2023 Garbage Service Waste Management of Minnesota, Inc 701-0000-4329 16.97 9/28/2023 Garbage Service 1,610.24 9/28/2023 Waste Management of Minnesota, Inc 1,610.24 Water Conservation Services, Inc.700-0000-4550 12,716.00 9/28/2023 Annual Water System Leak Survey Water Conservation Services, Inc.700-0000-4300 417.10 9/28/2023 Leak Locate 13,133.10 9/28/2023 Water Conservation Services, Inc. 13,133.10 Water Heaters Now Inc 101-1250-3306 127.25 9/21/2023 Permit refund - 4040 Pipewood Ln Water Heaters Now Inc 101-0000-2022 1.55 9/21/2023 Permit refund - 4040 Pipewood Ln AP - Check Detail (10/1/2023)Page 20 of 22 102 Last Name Acct 1 Amount Check Date Description 128.80 9/21/2023 Water Heaters Now Inc 128.80 WAYTEK INC 101-1550-4120 47.04 9/21/2023 600V 6GA Connector 47.04 9/21/2023 WAYTEK INC 47.04 WM MUELLER & SONS INC 101-1320-4157 534.80 9/21/2023 3/8 Virgin Fine 1/4 Virgin Sand WM MUELLER & SONS INC 101-1320-4157 451.05 9/21/2023 1/4"" Virgin Sand 985.85 9/21/2023 WM MUELLER & SONS INC 700-0000-4150 163.90 9/28/2023 Concrete Sand Lundquist Cy WM MUELLER & SONS INC 101-1320-4157 300.39 9/28/2023 1/4"" Virgin Sand WM MUELLER & SONS INC 700-0000-4150 40.00 9/28/2023 Lundquist Cy 504.29 9/28/2023 WM MUELLER & SONS INC 1,490.14 WSB & ASSOCIATES INC 414-4010-4303 191.25 9/28/2023 Boundary Topo Survey WSB & ASSOCIATES INC 720-7025-4300 108.00 9/28/2023 2021 Pond Maintenance Project WSB & ASSOCIATES INC 101-1311-4229 2,500.00 9/28/2023 2023 Datalink Maintenance WSB & ASSOCIATES INC 101-1311-4306 210.00 9/28/2023 2023 GIS/AMS Support Service WSB & ASSOCIATES INC 720-7025-4300 988.50 9/28/2023 2022 Pond Maintenance Project WSB & ASSOCIATES INC 720-0000-4300 4,200.00 9/28/2023 2023 Water Resources Support Services WSB & ASSOCIATES INC 720-0000-4300 200.00 9/28/2023 1811 Lake Lucy Wetland Violation WSB & ASSOCIATES INC 414-4011-4303 191.25 9/28/2023 Boundary Topo Survey 8,589.00 9/28/2023 WSB & ASSOCIATES INC 8,589.00 XCEL ENERGY INC 700-0000-4320 3,333.13 9/28/2023 Electric Charges XCEL ENERGY INC 700-0000-4320 16,512.20 9/28/2023 Electric Charges AP - Check Detail (10/1/2023)Page 21 of 22 103 Last Name Acct 1 Amount Check Date Description 19,845.33 9/28/2023 XCEL ENERGY INC 19,845.33 ZARNOTH BRUSH WORKS INC 101-1550-4120 669.40 9/28/2023 7' X 32"" Bobcat Poly Wafer broom refill 669.40 9/28/2023 ZARNOTH BRUSH WORKS INC 669.40 ZIEGLER INC 700-0000-4120 51.17 9/21/2023 Thermostat 51.17 9/21/2023 ZIEGLER INC 51.17 1,575,625.95 AP - Check Detail (10/1/2023)Page 22 of 22 104 City Council Item October 9, 2023 Item Consider approval of a Geotechnical Exploration Contract for the Minnetonka Middle School West Roundabout Project File No.ENG 24-05 Item No: D.6 Agenda Section CONSENT AGENDA Prepared By Charlie Howley, Director of Public Works/City Engineer Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council authorizes entering into a contact with American Engineering and Testing, Inc. for Geotechnical Investigation Services related to the proposed roundabout on TH41 at the Minnetonka Middle School West driveway entrance." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY This project is for intersection improvements on Trunk Highway 41 at the Minnetonka Middle School West (MMSW) entrance. The project is needed for safety, access, and operational benefits. BACKGROUND The city has been spearheading this project for approximately 5 years and has now secured the necessary funding to implement the improvement. The proposed intersection will be reconstructed with a roundabout. Design is underway, and understanding the underlying soils is paramount to the overall effort and end product. If awarded, soil boring fieldwork will begin in approximately six (6) weeks. The project is planned to be constructed in the summer of 2024 while school is off on summer break. DISCUSSION 105 The contract for the work is based on the city's standard agreement for professional services. BUDGET The overall project budget is $3,000,000. The cost of the geotechnical investigation is part of the design phase professional services, which typically is in the range of 10% of construction costs. Three proposals were solicited and received: Firm Base Scope Additional Borings Total Braun $14,745 $6,735 $21,480 AET $19,565 $5,014 $24,579 Terracon $47,900 $6,700 $54,600 The design consultant and staff are recommending AET be awarded the contract for the following reasons: The AET proposal includes quite a bit more field information The AET proposal appears to better meet MnDOT requirements for spacing of borings and appears to better understand the requested scope of work, which will likely result in fewer issues with MnDOT's review and for limiting additional scope at a later date AET's proposed fee is within the expected range for the scope and budget, and they have successfully completed many previous projects for the city. RECOMMENDATION Staff recommends approval of the contract to AET. ATTACHMENTS MMSW Roundabout Professional Services Agreement AET P-0027037 TH 41 Roundabout Geotechnical Proposal Layout 106 1 201749v1 PROFESSIONAL SERVICES AGREEMENT AGREEMENT made this 9th day of October, 2023, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and American Engineering Testing, Inc. ("Consultant"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. SCOPE OF SERVICES. The City retains Consultant for geotechnical investigation and engineering services related to the proposed roundabout at TH41 and the Minnetonka Middle School entrance. 2. CONTRACT DOCUMENTS. The following documents shall be referred to as the "Contract Documents," all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Professional Services Agreement; B. Insurance Certificate; C. Consultant’s September 19, 2023 proposal for Geotechnical and Pavement Exploration (“Proposal”). In the event of conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts, with Contract Document “A” having the first priority and Contract Document “C” having the last priority. 3. COMPENSATION. Consultant shall be paid by the City for the services described in the Proposal a not to exceed fee of Twenty-Five Thousand Dollars ($25,000.00) inclusive of expenses. Services performed directly by Consultant shall be paid at an hourly rate in accordance with the Proposal, subject to the not to exceed fee. The not to exceed fees and expenses shall not be adjusted if the estimated hours to perform a task, the number of required meetings, or any other estimate or assumption is exceeded. Consultant shall bill the City as the work progresses. Payment shall be made by the City within thirty-five (35) days of receipt of an invoice. 4. DOCUMENT OWNERSHIP. All reports, plans, models, diagrams, analyses, and information generated in connection with performance of this Agreement shall be the property of the City. The City may use the information for its purposes. 5. CHANGE ORDERS. All change orders, regardless of amount, must be approved in advance and in writing by the City. No payment will be due or made for work done in advance of such approval. 107 2 201749v1 6. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Consultant shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. 7. STANDARD OF CARE. Consultant shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional consultant under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Consultant’s services. 8. INDEMNIFICATION. Consultant shall indemnify and hold harmless the City, its officers, agents, and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, arising out of or by reason of the execution or performance of the services provided for herein and further agrees to defend at its sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising hereunder. 9. INSURANCE. Consultant shall secure and maintain such insurance as will protect Consultant from claims under the Worker’s Compensation Acts, automobile liability, and from claims for bodily injury, death, or property damage which may arise from the performance of services under this Agreement. Such insurance shall be written for amounts not less than: Commercial General Liability $2,000,000 each occurrence/aggregate Automobile Liability $2,000,000 combined single limit Professional Liability $2,000,000 each occurrence/aggregate The City shall be named as an additional insured on the general liability policy on a primary and non- contributory basis. Before commencing work, the Consultant shall provide the City a certificate of insurance evidencing the required insurance coverage in a form acceptable to City. 10. INDEPENDENT CONTRACTOR. The City hereby retains Consultant as an independent contractor upon the terms and conditions set forth in this Agreement. Consultant is not an employee of the City and is free to contract with other entities as provided herein. Consultant shall be responsible for selecting the means and methods of performing the work. Consultant shall furnish any and all supplies, equipment, and incidentals necessary for Consultant’s performance under this Agreement. City and Consultant agree that Consultant shall not at any time or in any manner represent that Consultant or any of Consultant's agents or employees are in any manner agents or employees of the City. Consultant shall be exclusively responsible under this Agreement for Consultant’s own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 11. SUBCONTRACTORS. Consultant shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Consultant shall 108 3 201749v1 comply with Minnesota Statutes § 471.425. Consultant must pay subcontractors for all undisputed services provided by subcontractors within ten (10) days of Consultant’s receipt of payment from City. Consultant must pay interest of one and five-tenths percent (1.5%) per month or any part of a month to subcontractors on any undisputed amount not paid on time to subcontractors. The minimum monthly interest penalty payment for an unpaid balance of One Hundred Dollars ($100.00) or more is Ten Dollars ($10.00). 12. CONTROLLING LAW/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Carver County Minnesota. 13. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Consultant must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Consultant pursuant to this Agreement. Consultant is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Consultant receives a request to release data, Consultant must immediately notify City. City will give Consultant instructions concerning the release of the data to the requesting party before the data is released. Consultant agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Consultant’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 14. COPYRIGHT. Consultant shall defend actions or claims charging infringement of any copyright or software license by reason of the use or adoption of any software, designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting therefrom. 15. PATENTED DEVICES, MATERIALS AND PROCESSES. If the Contract requires, or the Consultant desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, the Consultant shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the City. If no such agreement is made or filed as noted, the Consultant shall indemnify and hold harmless the City from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the services agreed to be performed under the Contract, and shall indemnify and defend the City for any costs, liability, expenses and attorney's fees that result from any such infringement. 16. RECORDS. Consultant shall maintain complete and accurate records of hours worked and expenses involved in the performance of services. 109 4 201749v1 17. ASSIGNMENT. Neither party shall assign this Agreement, or any interest arising herein, without the written consent of the other party. 18. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 19. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof, as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 20. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Consultant. In the event of termination, the City shall be obligated to the Consultant for payment of amounts due and owing including payment for services performed or furnished to the date and time of termination. Dated: _______________, 2023. CITY OF CHANHASSEN BY: _____________________________________________ Elise Ryan, Mayor BY: _____________________________________________ Laurie Hokkanen, City Manager Dated: _______________, 2023. AMERICAN ENGINEERING TESTING, INC. BY: _____________________________________________ Its 110 550 Cleveland Avenue North | Saint Paul, MN 55114 Phone (651) 659-9001 | (800) 972-6364 | Fax (651) 659-1379 | teamAET.com | AA/EEO This document shall not be reproduced, except in full, without written approval from American Engineering Testing, Inc. September 19, 2023 City of Chanhassen c/o SRF Consulting Group, Inc. 3701 Wayzata Blvd, Suite 100 Minneapolis, MN 55416 Attn: Joseph Korzilius, PE jkorzilius@srfconsulting.com Re: Proposal for Geotechnical and Pavement Exploration TH 41 Roundabout at the Access Road to Minnetonka Middle School West Chanhassen, Minnesota AET Proposal No. P-0027037 Dear Mr. Korzilius: Thank you for the opportunity to provide a proposal for geotechnical and pavement exploration services for the proposed roundabout construction in Chanhassen, Minnesota. This proposal presents our understanding of the project, an outline of our scope of services, our anticipated schedule, and an estimate of our fees. 1.0 PROJECT INFORMATION The City of Chanhassen is proposing the reconstruction of the intersection of TH 41 and the Minnetonka Middle School West access road in Chanhassen, Minnesota. The intersection will be reconstructed as a roundabout. The pavement improvements extend approximately 800 feet south and 500 feet north of the existing intersection. Additionally, about 350 feet of the school access road will be reconstructed and about 200 feet of a new City street west of TH 41 will be constructed as part of this project. The project also includes new pedestrian trails on both sides of TH 41. A grading plan is not yet available; however, based on the topography, we assume cut and fill depths of less than 2 feet. The project may include City water and/or sanitary sewer construction crossing TH 41 at the intersection. We assume the utility invert depth(s) will be 10 feet or less below existing grade. Finally, a stormwater pond/basin is proposed on the west side of TH 41 approximately 200 feet south of the intersection. The depth of the pond/basin has not been provided; however, we assume the bottom depth will be 10 feet or shallower from existing grade. 2.0 SCOPE OF SERVICES Based on your RFP and subsequent emails, our scope of services will include the following. 2.1 Base Scope Exploration • Mark soil boring locations at the site. • Arrange clearance of underground public utilities through the Gopher State One Call system. 111 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 2 of 6 • Perform a total of 22 standard penetration test (SPT) borings as follows: o 15 SPT borings to depths of 6 feet within the existing roadway. o 3 SPT borings to depths of 11 feet within the planned widening areas. o 2 SPT borings to depths of 14.5 feet for the proposed City utilities. o 2 SPT borings to depths of 14 feet within the proposed stormwater structure. • Backfill the boreholes Minnesota Department of Health (MDH) requirements. • Patch the on-road boring surface with bituminous cold mix. • Document the sampled boring locations by using GPS equipment with submeter accuracy. Prior to drilling, we will contact Gopher State One Call to locate public underground utilities. Gopher State One Call does not currently charge for this service, but they will not locate private underground utilities or structures. The marking of private utilities must be arranged by the property owner prior to our drill crew mobilization. See our discussion regarding UNDERGROUND UTILITIES later in this proposal. We propose to perform traffic control in accordance with the Minnesota Temporary Traffic Control Field Manual 2018. For the borings performed in the drive lanes, we plan to utilize Layout 16, which includes two flaggers, traffic signs and cones. For borings within turn lanes, shoulders or existing pedestrian trails, we plan to use traffic barricades, traffic signs, and cones. For the borings performed off the existing pavement, we assume no traffic control is needed. We will drill the SPT borings using hollow stem augers or by rotary mud drilling, with sampling by the split-barrel method (ASTM D1586). At the stormwater boring locations, we will collect samples continuously at 2-foot intervals to the termination depth. At the other boring locations, we will collect samples continuously at 2-foot intervals within the upper 6 feet and then at 2.5-foot intervals to the boring termination depths. Our crew will keep field logs noting the methods of drilling and sampling, the Standard Penetration Values (N-values, “blows per foot”), preliminary soil classification, and observed groundwater levels. Representative portions of recovered samples will be sealed in jars to prevent moisture loss and submitted to our laboratory for review, testing, and final classification. We will backfill the boreholes to comply with MDH requirements. Even after backfilling, some sloughing of the backfill may occur, resulting in a potential tripping hazard to pedestrians. We assume the City will backfill and repair any boreholes that may slough after our exploration is complete. AET cannot accept any liability associated with pedestrian injury. Accessing the off-road boring locations may leave ruts in the ground. The drill crew will attempt to minimize turf damage; however, we assume that the property owner will perform any site restoration work. We have not included a fee for site restoration in our cost estimate. We assume that the off-road boring locations are readily accessible for our all-terrain drill rig and on-road borings are accessible with our truck-mounted drill rig. Snow removal/plowing and tree/brush clearing to access the boring locations is not included in our scope of services. 2.2 Monitoring Well Installation, Monitoring, and Sealing (Optional) To provide longer-term groundwater level monitoring for infiltration design, we recommend the installation of a monitoring well (standpipe piezometer) at one of the stormwater boring locations. If authorized, the monitoring well screen bottom will be set near the pond boring termination depth of 14.5 feet. The well screen will be 5 to 10 feet long, depending on the proposed pond/basin depth, and consist 112 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 3 of 6 of No. 10 slot screen. The sand pack around the screen will be Red Flint Sand and Gravel or equivalent material. The riser pipe will be 2-inch diameter PVC. The monitoring well will have a steel protective casing (pro-top) that will stand approximately 2 to 3 feet above the ground surface. The pro-top will utilize a 6-inch diameter ASTM Schedule 40 steel pipe, 7 feet in length, and will have a locking cap. Our optional fee estimate includes performing monthly water level readings for 12 months. AET has also included fees to seal the monitoring well upon the completion of monitoring, at a time to be determined by the City. These fees will be valid provided the well sealing request is made within 20 months of installation. A new agreement and additional fees may be required if well sealing occurs after this 20-month period. 2.3 Additional Exploration (Optional) Following the base scope of field exploration, a second phase of soil borings may be needed as the design progresses. SRF has requested a budget for 4 off-road SPT borings to depths of 14.5 feet. We assume these borings will be performed under a separate mobilization to the site with an additional utility clearance meet. Our budget also includes additional soil classification, moisture content tests, and boring log preparation. However, these additional fees do not include laboratory index tests nor geotechnical engineering analysis, recommendations, or reporting. As the purpose of these borings is currently unknown, the depths and number of these borings may need to be adjusted. Additionally, once the scope of the second phase of borings is known, an estimate of geotechnical engineering effort can be provided. 2.4 Laboratory Logging & Testing Each of the recovered samples will be returned to our lab for visual/manual classification of the soils according to the MnDOT Triangular Textural and AASHTO soil classification systems. Our services will include mechanical laboratory testing of selected soil samples to aid in judging engineering properties of the soils. In this proposal, we have estimated to perform moisture content tests on all soils. We also propose to perform percent passing the No. 200 sieve, sieve analyses, organic content, and possibly hydrometers. 2.5 Report Upon completion of the field exploration and soil laboratory testing, we will prepare a report which will include the following: • Figures illustrating the final sampled locations. • Subsurface boring logs, including thickness of the encountered pavement, aggregate base, and/or topsoil; MnDOT and AASHTO soil types; measured water levels; laboratory test results, and GPS coordinates. • An outline of our understanding of the proposed construction. • A summary of the sampled existing pavement, aggregate base, and topsoil thickness, as well as water depths, if encountered. • A review of engineering properties of the soil conditions encountered in the borings. • Grading procedures to construct the widened embankments, including soil correction excavations, fill types, and compaction levels. • Subgrade preparation, including use of a sand subbase and an estimated subgrade R-value. • Bituminous pavement 10-ton design sections for the Roundabout, TH 41, and the City street. • Concrete pavement design section for the Roundabout. 113 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 4 of 6 • Utility support bedding and backfilling procedures, including dewatering considerations, material types, and compaction levels. • Hydrologic soil group and estimated soil infiltration rates based on the soil types encountered in the applicable borings, the laboratory index testing performed, using the Kozeny-Carman equation (if applicable), and the Minnesota Stormwater Manual. • Comments on other items which may affect final performance or constructability, such as frost heave and drainage considerations. 3.0 SCHEDULE Weather permitting and based on our current backlog, the field exploration can be completed within 8 weeks following final contract authorization. The base scope drilling fieldwork will take approximately 2 to 3 days to complete. We anticipate that a draft report will be submitted within 3 weeks following the field exploration. The final report can be submitted within 1 week after receiving comments on the draft report. 4.0 FEES Our fees for the base scope of services described above will be charged on a time and material basis, with a not-to-exceed fee of $19,564.50. A further breakdown per task is provided below. 1. Layout and Utility Clearance $ 1,980.00 2. Geotechnical Field Services $ 7,724.50 3. Traffic Control $ 2,300.00 4. Laboratory Logging and Testing $ 2,540.00 5. Project Management and Reporting $ 5,020.00 Base Scope Total Fees $19,564.50 If installation of a standpipe piezometer monitoring well is requested at a proposed stormwater boring, our not-to-exceed fee will be $26,089 with the additional fees summarized below. 1. Monitoring Well Field Services and Materials $ 1,385.00 2. Monitoring Well Readings $ 3,690.00 3. Monitoring Well Sealing $ 1,449.50 Additional Piezometer Fees $ 6,524.50 Additionally, fees for a second mobilization to the site to perform 4 additional SPT borings to depths of 14.5 feet in off-road areas with boring logs will be $5,014.50. In the event the scope of our services needs to be revised, such as additional or deeper borings and additional field or laboratory testing, we will review such scope adjustments and the associated fees with you and receive your approval before proceeding. Additional services will be charged in accordance with the attached fee schedule. Our fees will be in effect for thirty days following the date of this proposal, and fees for services authorized after this expiration date will be subject to review and possible escalation. 5.0 MINNESOTA DEPARTMENT OF HEALTH FEES The Minnesota Department of Health (MDH) monitors borehole sealing requirements, which are summarized below. Projects that span multiple properties require multiple notifications. • For sites where borings are drilled to a depth of 15 feet or deeper, all licensed drilling companies are required by law to grout the boreholes upon completion. The MDH requires that a Sealing Record be submitted to the MDH, with a copy to you and the Property Owner, after the borings are completed. 114 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 5 of 6 • In addition, for borings extended to a depth of 25 feet or deeper, all licensed drilling companies must submit written Notification to the MDH prior to drilling, along with a fee of $75. • In addition, for monitoring wells installed to a depth of 15 feet or deeper and left in place longer than 3 days, the MDH requires a Well Construction Notification be submitted, along with a fee of $275. Our fee estimate does not include MDH fees, as none of the above requirements are proposed. However, if the final boring depths extend to 25 feet or more (due to possible deep poor soil conditions) or if monitoring wells of 15 feet or deeper need to be in place for more than 3 days, the final MDH fees, plus an administrative charge of $65 per notification, will be added to our final invoice to you. The MDH Sealing Records and Notifications require the Property Owner name and mailing address, and the Property Owner will receive a copy of the Sealing Record. This information must be provided to us prior to drilling for any properties where borings are planned to be 15 feet or deeper. 6.0 UNDERGROUND UTILITIES Prior to drilling, we will contact Gopher State One Call to locate public underground utilities; however, Gopher State One Call will not locate private underground utilities or structures. Examples of private utilities include, but are not limited to, propane lines, sewer laterals, sprinkler systems, site lighting, and electric and data lines between buildings. Gopher State One Call states that the property owner is responsible for locating all private underground utilities and structures. Please provide us with any maps, plans, and/or records showing the location of all private utilities and structures. We can provide you with names and contact information for private utility locators. These companies usually charge a fee for their services. Also, please note that private locators cannot guarantee that all private utilities will be located. For the private locator to be accurate and effective, the property owner must provide maps, plans and records showing the location of all private utilities and structures. The property owner must also provide a knowledgeable site representative to meet with the private locator and AET personnel. AET shall be entitled to rely upon the accuracy of all location information supplied by any source. We will not be responsible for any damages to underground utilities or structures not located or incorrectly identified by the property owner, any maps, plans or records, or public or private utility locator providers. 7.0 ENVIRONMENTAL CONCERNS This proposal is presented for engineering services to evaluate the structural properties of the soil at the specified site. This proposal does not cover an environmental assessment of the site; environmental testing of the soil or groundwater; a wetland assessment; or consultation on lead, mold, asbestos, silica, or radon. If you wish to have us provide these additional services, please contact us. 8.0 TERMS AND CONDITIONS We understand our services will be performed directly for the City of Chanhassen. Unless otherwise agreed upon in writing, all AET Services are provided subject to the Terms and Conditions set forth in the enclosed “Environmental/Geotechnical Service Agreement—Terms and Conditions,” which, upon acceptance of this proposal, are binding upon you as the Client requesting Services, and your successors, assignees, joint venturers and third-party beneficiaries. Please be advised that additional insured status is granted upon acceptance of the proposal. 115 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 6 of 6 9.0 ACCEPTANCE This proposal is presented in electronic (PDF) form; hard copies can be prepared and mailed to your office upon request. AET requests written acceptance of this proposal in the Proposal Acceptance box below, but the following actions shall constitute your acceptance of this proposal together with the Terms and Conditions and Amendments: 1) issuing an authorizing purchase order for any of the Services described above, 2) authorizing AET’s presence on site, or 3) written or electronic notification for AET to proceed with any of the Services described in this proposal. Please indicate your acceptance of this proposal by signing below and returning a copy to us. When you accept this proposal, you represent that you are authorized to accept on behalf of the Client. We have enclosed with this proposal a copy of the “Environmental/Geotechnical Service Agreement – Terms and Conditions.” The terms contained in the attached “Environmental/Geotechnical Service Agreement – Terms and Conditions” are incorporated herein and are an integral part of this contract for professional engineering services. AET appreciates the opportunity to provide this service for you and looks forward to working with you on this project. If you have questions or need additional information, please contact us. Sincerely, American Engineering Testing, Inc. Thomas Evans, PE (MN) Megan J. L. Hoppe, PE (MN) Senior Engineer Senior Geotechnical Engineer tevans@teamAET.com mhoppe@teamAET.com Phone: (701) 690-9732 Phone: (612) 685-6432 Attachments: Fee Estimate (2 pages) 2023 Geotechnical Fee Schedule Service Agreement (4 pgs.) ACCEPTANCE AND AUTHORIZATION: AET Proposal No. P-0027037 SIGNATURE: PRINTED NAME: COMPANY: ADDRESS: PHONE NUMBER AND EMAIL: DATE: INVOICING INFORMATION (Provide Company AP Department information, if applicable) AP CONTACT NAME: BILLING/MAILING ADDRESS: AP PHONE NUMBER AND INVOICE EMAIL: P.O. NO./ PROJECT NO.: 116 GEOTECHNICAL SERVICES FEE ESTIMATE TH 41 ROUNDABOUT MINNETONKA MIDDLE SCHOOL WEST CHANHASSEN, MN AET PROPOSAL No. P-0027037 UNIT BUDGET RATE AMOUNT Project Administrator 1 hours $80.00 $80.00 Drilling Technician 10 hours $120.00 $1,200.00 Auxiliary Vehicle Rental 10 hours $35.00 $350.00 Auxiliary Vehicle Mileage 100 miles $1.50 $150.00 GPS Equipment 1 days $200.00 $200.00 Section Subtotal:$1,980.00 Drilling Technician 36 hours $120.00 $4,320.00 Truck with Drill Rig Rental 10 hours $110.00 $1,100.00 Rotary Drill on All-Terrain Vehicle Rental 8 hours $144.00 $1,152.00 Auxiliary Vehicle Rental 18 hours $35.00 $630.00 Truck with Drill Rig Mileage 100 miles $1.80 $180.00 Tractor with Lowboy Trailer Mileage 50 miles $2.35 $117.50 Auxiliary Vehicle Mileage 150 miles $1.50 $225.00 Section Subtotal:$7,724.50 Traffic Control Signs Rental 2 days $150.00 $300.00 Subcontractor 1 days $2,000.00 $2,000.00 Section Subtotal:$2,300.00 Classification and Water Content 9 hours $130.00 $1,170.00 ASTM D6913 Sieve Analysis of Soils 5 tests $127.00 $635.00 ASTM D1140 Material Finer than No. 200 Sieve in Soils 5 tests $61.00 $305.00 ASTM D422 Particle Size Analysis of Soils (includes gradation)1 tests $250.00 $250.00 ASTM D2974 Moisture, Ash, and Organic Material of Peat & Organic Soils 2 tests $90.00 $180.00 Section Subtotal:$2,540.00 Project Administrator 6 hours $80.00 $480.00 Engineer I 10 hours $160.00 $1,600.00 Senior Engineer 14 hours $210.00 $2,940.00 Section Subtotal:$5,020.00 $19,564.50 Layout and Utility Clearance Project Administrator 1 hours $80.00 $80.00 Drilling Technician 5 hours $120.00 $600.00 Auxiliary Vehicle Rental 5 hours $35.00 $175.00 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 GPS Equipment 1 days $200.00 $200.00 Hourly Drilling Drilling Technician 16 hours $120.00 $1,920.00 Rotary Drill on All-Terrain Vehicle Rental 8 hours $144.00 $1,152.00 Auxiliary Vehicle Rental 8 hours $35.00 $280.00 Tractor with Lowboy Trailer Mileage 50 miles $2.35 $117.50 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 Laboratory Logging and Log Preparation Classification and Water Content 2 hours $130.00 $260.00 Project Administrator 1 hours $80.00 $80.00 Additional Scope Subtotal:$5,014.50 $24,579.00 SERVICE DESCRIPTION PROJECT BUDGET Layout & Utility Clearance Geotechnical Field Services Laboratory Project Management & Reporting ESTIMATED Traffic Control UNITS TOTAL BASE SCOPE Geotechnical Field Services (Additional Scope) TOTAL BASE & ADDITIONAL SCOPE Page 1 of 1 117 GEOTECHNICAL SERVICES FEE ESTIMATE (PIEZOMETER) TH 41 ROUNDABOUT MINNETONKA MIDDLE SCHOOL WEST CHANHASSEN, MN AET PROPOSAL No. P-0027037 UNIT BUDGET RATE AMOUNT Project Administrator 1 hours $80.00 $80.00 Drilling Technician 10 hours $120.00 $1,200.00 Auxiliary Vehicle Rental 10 hours $35.00 $350.00 Auxiliary Vehicle Mileage 100 miles $1.50 $150.00 GPS Equipment 1 days $200.00 $200.00 Section Subtotal:$1,980.00 Drilling Technician 40 hours $120.00 $4,800.00 Truck with Drill Rig Rental 12 hours $110.00 $1,320.00 Rotary Drill on All-Terrain Vehicle Rental 8 hours $144.00 $1,152.00 Auxiliary Vehicle Rental 20 hours $35.00 $700.00 Truck with Drill Rig Mileage 100 miles $1.80 $180.00 Tractor with Lowboy Trailer Mileage 50 miles $2.35 $117.50 Auxiliary Vehicle Mileage 150 miles $1.50 $225.00 Steel Protop and PVC Monitoring Well Materials 1 each $615.00 $615.00 Section Subtotal:$9,109.50 Drilling Technician 1.5 hours $120.00 $180.00 Auxiliary Vehicle Rental 1.5 hours $35.00 $52.50 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 Per Reading:$307.50 Section Subtotal (12 readings):$3,690.00 Monitoring Well Sealing Drilling Technician 6 hours $120.00 $720.00 Auxiliary Vehicle Rental 3 hours $35.00 $105.00 Rotary Drill on All-Terrain Vehicle Rental 3 hours $144.00 $432.00 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 Tractor/Lowboy Trailer Mileage 50 miles $2.35 $117.50 Section Subtotal:$1,449.50 Traffic Control Signs Rental 2 days $150.00 $300.00 Subcontractor 1 days $2,000.00 $2,000.00 Section Subtotal:$2,300.00 Classification and Water Content 9 hours $130.00 $1,170.00 ASTM D6913 Sieve Analysis of Soils 5 tests $127.00 $635.00 ASTM D1140 Material Finer than No. 200 Sieve in Soils 5 tests $61.00 $305.00 ASTM D422 Particle Size Analysis of Soils (includes gradation)1 tests $250.00 $250.00 ASTM D2974 Moisture, Ash, and Organic Material of Peat & Organic Soils 2 tests $90.00 $180.00 Section Subtotal:$2,540.00 Project Administrator 6 hours $80.00 $480.00 Engineer I 10 hours $160.00 $1,600.00 Senior Engineer 14 hours $210.00 $2,940.00 Section Subtotal:$5,020.00 $26,089.00 Layout and Utility Clearance Project Administrator 1 hours $80.00 $80.00 Drilling Technician 5 hours $120.00 $600.00 Auxiliary Vehicle Rental 5 hours $35.00 $175.00 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 GPS Equipment 1 days $200.00 $200.00 Hourly Drilling Drilling Technician 16 hours $120.00 $1,920.00 Rotary Drill on All-Terrain Vehicle Rental 8 hours $144.00 $1,152.00 Auxiliary Vehicle Rental 8 hours $35.00 $280.00 Tractor with Lowboy Trailer Mileage 50 miles $2.35 $117.50 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 Laboratory Logging and Log Preparation Classification and Water Content 2 hours $130.00 $260.00 Project Administrator 1 hours $80.00 $80.00 Additional Scope Subtotal:$5,014.50 $31,103.50 SERVICE DESCRIPTION PROJECT BUDGET Layout & Utility Clearance Geotechnical Field Services Laboratory Project Management & Reporting ESTIMATED Traffic Control UNITS Monitoring Well Sealing Monitoring Well Readings TOTAL BASE SCOPE & PIEZOMETER Geotechnical Field Services (Additional Scope) TOTAL BASE, PIEZO, & ADDITIONAL Page 1 of 1 118 2023 GEOTECHNICAL FEE SCHEDULE 01DPM021.15 (1/23) AMERICAN ENGINEERING TESTING, INC. I.Personnel Hourly Rates A.Project Administrator 80.00/hr. B.Engr. or Env. Technician I 95.00/hr. C.Engr. or Env. Technician II 110.00/hr. D.Drill Technician/Geo Lab Technician 120.00/hr. E.Engr. or Env. Technician III 130.00/hr. F. Engineering Assistant 150.00/hr. G. Engineer I/Geologist I 160.00/hr. H.Senior Engineering Assistant 160.00/hr. I.Engineer II/Geologist II 180.00/hr. J. Senior Engineer/Geologist 210.00/hr. K. Principal Engineer/Geologist 250.00/hr. L. Principal of Firm 280.00/hr. II. Vehicle Mileage A. Personal Automobile/Truck 1.25/mile B.Auxiliary Vehicle Mileage 1.50/mile C.Truck with Warning Sign/Crash Trailer 1.60/mile D.Truck with Drill Rig 1.80/mile E.CPT Truck Rig (20-ton push capacity)2.10/mile F. Tractor/Lowboy Trailer 2.35/mile III. Equipment Rental A.Drill Rig Rental 1.Rotary Drill on Truck 110.00/hr. 2. Rotary Drill on All-Terrain Vehicle 144.00/hr. 3.Portable, Non-rotary Rig 107.00/hr. B.Auxiliary/Specialty Vehicle and Equipment Rental 1. Auxiliary Truck Vehicle 35.00/hr. 2. Truck with Warning Sign/Crash Trailer 52.00/hr. 3. Coring Equipment 60.00/hr. C.Cone (CPT) Rig/Equipment Rental 1.CPT Rig (Truck or ATV)188.00/hr. 2.Electronic Cone w/Computer 57.75/hr. 3. Soil Sampler 9.35/hr. 4.Water Sampler 25.25/hr. D.Miscellaneous Equipment Rental 1.Field Vane Shear 385.00/day 2.Field Electrical Resistivity 308.00/day 3.Field Seismic Shear Wave (ReMi) 500.00/day 4.Inclinometer Reading Equipment 400.00/day 5.Electronic Transducer Reading 209.00/day 6.Bore Hole Permeability a.Open End Casing Method 161.50/day b. HQ Wireline Packer 404.25/day 7.Borehole Pressuremeter 93.50/hr. 8.Iowa Borehole Shear Tester 385.00/day 9.Double Ring Infiltrometer 320.00/day 10. MPD Infiltrometer 320.00/day 11.GPS Mapping System 200.00/day 12.Pile Driving Analyzer (PDA)787.50/day 13.Calibrated SPT Rod 264.00/day 14. Pile Integrity Test (PIT)420.00/day E.Geotechnical Software Rental 1.Geo Studio Finite Element 99.00/hr. 2. CAPWAP 53.00/hr. 3. Wave Equation (WEAP) 40.00/hr. 4.LPILE or GROUP 40.00/hr. 5. Slope Stability (ReSSA) 40.00/hr. 6.Stabilized Earth Slopes & Walls 40.00/hr. 7.Settlement (FoSSA) 40.00/hr. F.Bit Wear- Rock Coring 1.Diamond Bit - Sedimentary Rock a)B, HQ, NQ 18.75/foot 2.Diamond Bit - Metamorphic & Igneous a)B, HQ, NQ 28.50/foot IV.Laboratory Tests of Soil A.Water Content 15.00/test B.Dry Density (includes water content) 90.00/test C. Atterberg Limits (ASTM:D4318) 1. Plasticity Index 141.00/test 2.Liquid Limit or Plastic Limit Separately 126.00/test D.Sieve Analysis (includes -#200) 130.00/test E.Materials Finer than #200 Sieve 65.00/test F.Hydrometer Analysis (sieve included) 250.00/test G. Thermal Resistivity w/Proctor (ASTM:D5334) 1.As Received and Oven Dried (2 pts) 1050.00/test 2.Dry Out Curve (4 pts) 1305.00/test H. Electrical Resistivity a)ASTM:G57 or G187 124.00/test b)AASHTO T 288 245.00/test I.Corrosion/Concrete Attack Series* price upon request J.Consolidation (up to 32 tsf) 1.With P-e curves only 590.00/test 2.With P-e curves, time curves 725.00/test J.Unconfined Compression (incl. wc/density) 127.00/test K.Hand Penetrometer 17.50/test L.Organic Content of Soil 115.00/test M.Topsoil Borrow Test (Mn/DOT 3877) 325.00/test N.R-value (Hveem Stabilometer) 470.00/test O. California Bearing Ratio 1.Granular 750.00/test 2. Cohesive 855.00/test P.Proctor Tests (Methods A or B) 1.Standard 175.00/test 2.Standard (Cohesive) 200.00/test 3. Modified 180.00/test 4. Modified (Cohesive) 200.00/test Q. Thin-Walled Tube Samples 1. Sample Extrusion 27.50/each 2. Sampler Replacement 30.00/each *includes pH, chloride ion, soluble sulfates, sulfides, redox potential (resistivity not included). V. Expenses A.Borehole Grouting – Bentonite Grout 2.00/foot B.Borehole Grouting – Neat Cement Grout 10.00/foot C.Direct Project Expenses: includes out-of- Cost + 15% town per diem; plowing & towing; special materials & supplies; special travel, transportation & freight; subcontracted services, and miscellaneous costs D.Equipment Replacement (when abandonment Cost is more feasible than recovery) E.Equipment Recovery (when required by Cost + 15% regulatory agencies or project specifications) The rates presented are portal-to-portal with vehicle mileage, expenses and equipment rentals being additional. Overtime for personnel charged at above cost plus 25% for over 8 hours per day or Saturday; and at above cost plus 50% for Sundays or Holidays. Hazardous work charged at an additional 25%. Night time shift work will include a premium charge of $30.00 per person per shift. 119 550 Cleveland Avenue North | Saint Paul, MN 55114 Phone (651) 659-9001 | (800) 972-6364 | Fax (651) 659-1379 | teamAET.com | AA/EEO This document shall not be reproduced, except in full, without written approval from American Engineering Testing, Inc. September 19, 2023 City of Chanhassen c/o SRF Consulting Group, Inc. 3701 Wayzata Blvd, Suite 100 Minneapolis, MN 55416 Attn: Joseph Korzilius, PE jkorzilius@srfconsulting.com Re: Proposal for Geotechnical and Pavement Exploration TH 41 Roundabout at the Access Road to Minnetonka Middle School West Chanhassen, Minnesota AET Proposal No. P-0027037 Dear Mr. Korzilius: Thank you for the opportunity to provide a proposal for geotechnical and pavement exploration services for the proposed roundabout construction in Chanhassen, Minnesota. This proposal presents our understanding of the project, an outline of our scope of services, our anticipated schedule, and an estimate of our fees. 1.0 PROJECT INFORMATION The City of Chanhassen is proposing the reconstruction of the intersection of TH 41 and the Minnetonka Middle School West access road in Chanhassen, Minnesota. The intersection will be reconstructed as a roundabout. The pavement improvements extend approximately 800 feet south and 500 feet north of the existing intersection. Additionally, about 350 feet of the school access road will be reconstructed and about 200 feet of a new City street west of TH 41 will be constructed as part of this project. The project also includes new pedestrian trails on both sides of TH 41. A grading plan is not yet available; however, based on the topography, we assume cut and fill depths of less than 2 feet. The project may include City water and/or sanitary sewer construction crossing TH 41 at the intersection. We assume the utility invert depth(s) will be 10 feet or less below existing grade. Finally, a stormwater pond/basin is proposed on the west side of TH 41 approximately 200 feet south of the intersection. The depth of the pond/basin has not been provided; however, we assume the bottom depth will be 10 feet or shallower from existing grade. 2.0 SCOPE OF SERVICES Based on your RFP and subsequent emails, our scope of services will include the following. 2.1 Base Scope Exploration • Mark soil boring locations at the site. • Arrange clearance of underground public utilities through the Gopher State One Call system. 120 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 2 of 6 • Perform a total of 22 standard penetration test (SPT) borings as follows: o 15 SPT borings to depths of 6 feet within the existing roadway. o 3 SPT borings to depths of 11 feet within the planned widening areas. o 2 SPT borings to depths of 14.5 feet for the proposed City utilities. o 2 SPT borings to depths of 14 feet within the proposed stormwater structure. • Backfill the boreholes Minnesota Department of Health (MDH) requirements. • Patch the on-road boring surface with bituminous cold mix. • Document the sampled boring locations by using GPS equipment with submeter accuracy. Prior to drilling, we will contact Gopher State One Call to locate public underground utilities. Gopher State One Call does not currently charge for this service, but they will not locate private underground utilities or structures. The marking of private utilities must be arranged by the property owner prior to our drill crew mobilization. See our discussion regarding UNDERGROUND UTILITIES later in this proposal. We propose to perform traffic control in accordance with the Minnesota Temporary Traffic Control Field Manual 2018. For the borings performed in the drive lanes, we plan to utilize Layout 16, which includes two flaggers, traffic signs and cones. For borings within turn lanes, shoulders or existing pedestrian trails, we plan to use traffic barricades, traffic signs, and cones. For the borings performed off the existing pavement, we assume no traffic control is needed. We will drill the SPT borings using hollow stem augers or by rotary mud drilling, with sampling by the split-barrel method (ASTM D1586). At the stormwater boring locations, we will collect samples continuously at 2-foot intervals to the termination depth. At the other boring locations, we will collect samples continuously at 2-foot intervals within the upper 6 feet and then at 2.5-foot intervals to the boring termination depths. Our crew will keep field logs noting the methods of drilling and sampling, the Standard Penetration Values (N-values, “blows per foot”), preliminary soil classification, and observed groundwater levels. Representative portions of recovered samples will be sealed in jars to prevent moisture loss and submitted to our laboratory for review, testing, and final classification. We will backfill the boreholes to comply with MDH requirements. Even after backfilling, some sloughing of the backfill may occur, resulting in a potential tripping hazard to pedestrians. We assume the City will backfill and repair any boreholes that may slough after our exploration is complete. AET cannot accept any liability associated with pedestrian injury. Accessing the off-road boring locations may leave ruts in the ground. The drill crew will attempt to minimize turf damage; however, we assume that the property owner will perform any site restoration work. We have not included a fee for site restoration in our cost estimate. We assume that the off-road boring locations are readily accessible for our all-terrain drill rig and on-road borings are accessible with our truck-mounted drill rig. Snow removal/plowing and tree/brush clearing to access the boring locations is not included in our scope of services. 2.2 Monitoring Well Installation, Monitoring, and Sealing (Optional) To provide longer-term groundwater level monitoring for infiltration design, we recommend the installation of a monitoring well (standpipe piezometer) at one of the stormwater boring locations. If authorized, the monitoring well screen bottom will be set near the pond boring termination depth of 14.5 feet. The well screen will be 5 to 10 feet long, depending on the proposed pond/basin depth, and consist 121 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 3 of 6 of No. 10 slot screen. The sand pack around the screen will be Red Flint Sand and Gravel or equivalent material. The riser pipe will be 2-inch diameter PVC. The monitoring well will have a steel protective casing (pro-top) that will stand approximately 2 to 3 feet above the ground surface. The pro-top will utilize a 6-inch diameter ASTM Schedule 40 steel pipe, 7 feet in length, and will have a locking cap. Our optional fee estimate includes performing monthly water level readings for 12 months. AET has also included fees to seal the monitoring well upon the completion of monitoring, at a time to be determined by the City. These fees will be valid provided the well sealing request is made within 20 months of installation. A new agreement and additional fees may be required if well sealing occurs after this 20-month period. 2.3 Additional Exploration (Optional) Following the base scope of field exploration, a second phase of soil borings may be needed as the design progresses. SRF has requested a budget for 4 off-road SPT borings to depths of 14.5 feet. We assume these borings will be performed under a separate mobilization to the site with an additional utility clearance meet. Our budget also includes additional soil classification, moisture content tests, and boring log preparation. However, these additional fees do not include laboratory index tests nor geotechnical engineering analysis, recommendations, or reporting. As the purpose of these borings is currently unknown, the depths and number of these borings may need to be adjusted. Additionally, once the scope of the second phase of borings is known, an estimate of geotechnical engineering effort can be provided. 2.4 Laboratory Logging & Testing Each of the recovered samples will be returned to our lab for visual/manual classification of the soils according to the MnDOT Triangular Textural and AASHTO soil classification systems. Our services will include mechanical laboratory testing of selected soil samples to aid in judging engineering properties of the soils. In this proposal, we have estimated to perform moisture content tests on all soils. We also propose to perform percent passing the No. 200 sieve, sieve analyses, organic content, and possibly hydrometers. 2.5 Report Upon completion of the field exploration and soil laboratory testing, we will prepare a report which will include the following: • Figures illustrating the final sampled locations. • Subsurface boring logs, including thickness of the encountered pavement, aggregate base, and/or topsoil; MnDOT and AASHTO soil types; measured water levels; laboratory test results, and GPS coordinates. • An outline of our understanding of the proposed construction. • A summary of the sampled existing pavement, aggregate base, and topsoil thickness, as well as water depths, if encountered. • A review of engineering properties of the soil conditions encountered in the borings. • Grading procedures to construct the widened embankments, including soil correction excavations, fill types, and compaction levels. • Subgrade preparation, including use of a sand subbase and an estimated subgrade R-value. • Bituminous pavement 10-ton design sections for the Roundabout, TH 41, and the City street. • Concrete pavement design section for the Roundabout. 122 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 4 of 6 • Utility support bedding and backfilling procedures, including dewatering considerations, material types, and compaction levels. • Hydrologic soil group and estimated soil infiltration rates based on the soil types encountered in the applicable borings, the laboratory index testing performed, using the Kozeny-Carman equation (if applicable), and the Minnesota Stormwater Manual. • Comments on other items which may affect final performance or constructability, such as frost heave and drainage considerations. 3.0 SCHEDULE Weather permitting and based on our current backlog, the field exploration can be completed within 8 weeks following final contract authorization. The base scope drilling fieldwork will take approximately 2 to 3 days to complete. We anticipate that a draft report will be submitted within 3 weeks following the field exploration. The final report can be submitted within 1 week after receiving comments on the draft report. 4.0 FEES Our fees for the base scope of services described above will be charged on a time and material basis, with a not-to-exceed fee of $19,564.50. A further breakdown per task is provided below. 1. Layout and Utility Clearance $ 1,980.00 2. Geotechnical Field Services $ 7,724.50 3. Traffic Control $ 2,300.00 4. Laboratory Logging and Testing $ 2,540.00 5. Project Management and Reporting $ 5,020.00 Base Scope Total Fees $19,564.50 If installation of a standpipe piezometer monitoring well is requested at a proposed stormwater boring, our not-to-exceed fee will be $26,089 with the additional fees summarized below. 1. Monitoring Well Field Services and Materials $ 1,385.00 2. Monitoring Well Readings $ 3,690.00 3. Monitoring Well Sealing $ 1,449.50 Additional Piezometer Fees $ 6,524.50 Additionally, fees for a second mobilization to the site to perform 4 additional SPT borings to depths of 14.5 feet in off-road areas with boring logs will be $5,014.50. In the event the scope of our services needs to be revised, such as additional or deeper borings and additional field or laboratory testing, we will review such scope adjustments and the associated fees with you and receive your approval before proceeding. Additional services will be charged in accordance with the attached fee schedule. Our fees will be in effect for thirty days following the date of this proposal, and fees for services authorized after this expiration date will be subject to review and possible escalation. 5.0 MINNESOTA DEPARTMENT OF HEALTH FEES The Minnesota Department of Health (MDH) monitors borehole sealing requirements, which are summarized below. Projects that span multiple properties require multiple notifications. • For sites where borings are drilled to a depth of 15 feet or deeper, all licensed drilling companies are required by law to grout the boreholes upon completion. The MDH requires that a Sealing Record be submitted to the MDH, with a copy to you and the Property Owner, after the borings are completed. 123 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 5 of 6 • In addition, for borings extended to a depth of 25 feet or deeper, all licensed drilling companies must submit written Notification to the MDH prior to drilling, along with a fee of $75. • In addition, for monitoring wells installed to a depth of 15 feet or deeper and left in place longer than 3 days, the MDH requires a Well Construction Notification be submitted, along with a fee of $275. Our fee estimate does not include MDH fees, as none of the above requirements are proposed. However, if the final boring depths extend to 25 feet or more (due to possible deep poor soil conditions) or if monitoring wells of 15 feet or deeper need to be in place for more than 3 days, the final MDH fees, plus an administrative charge of $65 per notification, will be added to our final invoice to you. The MDH Sealing Records and Notifications require the Property Owner name and mailing address, and the Property Owner will receive a copy of the Sealing Record. This information must be provided to us prior to drilling for any properties where borings are planned to be 15 feet or deeper. 6.0 UNDERGROUND UTILITIES Prior to drilling, we will contact Gopher State One Call to locate public underground utilities; however, Gopher State One Call will not locate private underground utilities or structures. Examples of private utilities include, but are not limited to, propane lines, sewer laterals, sprinkler systems, site lighting, and electric and data lines between buildings. Gopher State One Call states that the property owner is responsible for locating all private underground utilities and structures. Please provide us with any maps, plans, and/or records showing the location of all private utilities and structures. We can provide you with names and contact information for private utility locators. These companies usually charge a fee for their services. Also, please note that private locators cannot guarantee that all private utilities will be located. For the private locator to be accurate and effective, the property owner must provide maps, plans and records showing the location of all private utilities and structures. The property owner must also provide a knowledgeable site representative to meet with the private locator and AET personnel. AET shall be entitled to rely upon the accuracy of all location information supplied by any source. We will not be responsible for any damages to underground utilities or structures not located or incorrectly identified by the property owner, any maps, plans or records, or public or private utility locator providers. 7.0 ENVIRONMENTAL CONCERNS This proposal is presented for engineering services to evaluate the structural properties of the soil at the specified site. This proposal does not cover an environmental assessment of the site; environmental testing of the soil or groundwater; a wetland assessment; or consultation on lead, mold, asbestos, silica, or radon. If you wish to have us provide these additional services, please contact us. 8.0 TERMS AND CONDITIONS We understand our services will be performed directly for the City of Chanhassen. Unless otherwise agreed upon in writing, all AET Services are provided subject to the Terms and Conditions set forth in the enclosed “Environmental/Geotechnical Service Agreement—Terms and Conditions,” which, upon acceptance of this proposal, are binding upon you as the Client requesting Services, and your successors, assignees, joint venturers and third-party beneficiaries. Please be advised that additional insured status is granted upon acceptance of the proposal. 124 Proposal for Geotechnical & Pavement Exploration TH 41 Roundabout; Chanhassen, MN September 19, 2023 AET Proposal No. P-0027037 Page 6 of 6 9.0 ACCEPTANCE This proposal is presented in electronic (PDF) form; hard copies can be prepared and mailed to your office upon request. AET requests written acceptance of this proposal in the Proposal Acceptance box below, but the following actions shall constitute your acceptance of this proposal together with the Terms and Conditions and Amendments: 1) issuing an authorizing purchase order for any of the Services described above, 2) authorizing AET’s presence on site, or 3) written or electronic notification for AET to proceed with any of the Services described in this proposal. Please indicate your acceptance of this proposal by signing below and returning a copy to us. When you accept this proposal, you represent that you are authorized to accept on behalf of the Client. We have enclosed with this proposal a copy of the “Environmental/Geotechnical Service Agreement – Terms and Conditions.” The terms contained in the attached “Environmental/Geotechnical Service Agreement – Terms and Conditions” are incorporated herein and are an integral part of this contract for professional engineering services. AET appreciates the opportunity to provide this service for you and looks forward to working with you on this project. If you have questions or need additional information, please contact us. Sincerely, American Engineering Testing, Inc. Thomas Evans, PE (MN) Megan J. L. Hoppe, PE (MN) Senior Engineer Senior Geotechnical Engineer tevans@teamAET.com mhoppe@teamAET.com Phone: (701) 690-9732 Phone: (612) 685-6432 Attachments: Fee Estimate (2 pages) 2023 Geotechnical Fee Schedule Service Agreement (4 pgs.) ACCEPTANCE AND AUTHORIZATION: AET Proposal No. P-0027037 SIGNATURE: PRINTED NAME: COMPANY: ADDRESS: PHONE NUMBER AND EMAIL: DATE: INVOICING INFORMATION (Provide Company AP Department information, if applicable) AP CONTACT NAME: BILLING/MAILING ADDRESS: AP PHONE NUMBER AND INVOICE EMAIL: P.O. NO./ PROJECT NO.: 125 GEOTECHNICAL SERVICES FEE ESTIMATE TH 41 ROUNDABOUT MINNETONKA MIDDLE SCHOOL WEST CHANHASSEN, MN AET PROPOSAL No. P-0027037 UNIT BUDGET RATE AMOUNT Project Administrator 1 hours $80.00 $80.00 Drilling Technician 10 hours $120.00 $1,200.00 Auxiliary Vehicle Rental 10 hours $35.00 $350.00 Auxiliary Vehicle Mileage 100 miles $1.50 $150.00 GPS Equipment 1 days $200.00 $200.00 Section Subtotal:$1,980.00 Drilling Technician 36 hours $120.00 $4,320.00 Truck with Drill Rig Rental 10 hours $110.00 $1,100.00 Rotary Drill on All-Terrain Vehicle Rental 8 hours $144.00 $1,152.00 Auxiliary Vehicle Rental 18 hours $35.00 $630.00 Truck with Drill Rig Mileage 100 miles $1.80 $180.00 Tractor with Lowboy Trailer Mileage 50 miles $2.35 $117.50 Auxiliary Vehicle Mileage 150 miles $1.50 $225.00 Section Subtotal:$7,724.50 Traffic Control Signs Rental 2 days $150.00 $300.00 Subcontractor 1 days $2,000.00 $2,000.00 Section Subtotal:$2,300.00 Classification and Water Content 9 hours $130.00 $1,170.00 ASTM D6913 Sieve Analysis of Soils 5 tests $127.00 $635.00 ASTM D1140 Material Finer than No. 200 Sieve in Soils 5 tests $61.00 $305.00 ASTM D422 Particle Size Analysis of Soils (includes gradation)1 tests $250.00 $250.00 ASTM D2974 Moisture, Ash, and Organic Material of Peat & Organic Soils 2 tests $90.00 $180.00 Section Subtotal:$2,540.00 Project Administrator 6 hours $80.00 $480.00 Engineer I 10 hours $160.00 $1,600.00 Senior Engineer 14 hours $210.00 $2,940.00 Section Subtotal:$5,020.00 $19,564.50 Layout and Utility Clearance Project Administrator 1 hours $80.00 $80.00 Drilling Technician 5 hours $120.00 $600.00 Auxiliary Vehicle Rental 5 hours $35.00 $175.00 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 GPS Equipment 1 days $200.00 $200.00 Hourly Drilling Drilling Technician 16 hours $120.00 $1,920.00 Rotary Drill on All-Terrain Vehicle Rental 8 hours $144.00 $1,152.00 Auxiliary Vehicle Rental 8 hours $35.00 $280.00 Tractor with Lowboy Trailer Mileage 50 miles $2.35 $117.50 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 Laboratory Logging and Log Preparation Classification and Water Content 2 hours $130.00 $260.00 Project Administrator 1 hours $80.00 $80.00 Additional Scope Subtotal:$5,014.50 $24,579.00 SERVICE DESCRIPTION PROJECT BUDGET Layout & Utility Clearance Geotechnical Field Services Laboratory Project Management & Reporting ESTIMATED Traffic Control UNITS TOTAL BASE SCOPE Geotechnical Field Services (Additional Scope) TOTAL BASE & ADDITIONAL SCOPE Page 1 of 1 126 GEOTECHNICAL SERVICES FEE ESTIMATE (PIEZOMETER) TH 41 ROUNDABOUT MINNETONKA MIDDLE SCHOOL WEST CHANHASSEN, MN AET PROPOSAL No. P-0027037 UNIT BUDGET RATE AMOUNT Project Administrator 1 hours $80.00 $80.00 Drilling Technician 10 hours $120.00 $1,200.00 Auxiliary Vehicle Rental 10 hours $35.00 $350.00 Auxiliary Vehicle Mileage 100 miles $1.50 $150.00 GPS Equipment 1 days $200.00 $200.00 Section Subtotal:$1,980.00 Drilling Technician 40 hours $120.00 $4,800.00 Truck with Drill Rig Rental 12 hours $110.00 $1,320.00 Rotary Drill on All-Terrain Vehicle Rental 8 hours $144.00 $1,152.00 Auxiliary Vehicle Rental 20 hours $35.00 $700.00 Truck with Drill Rig Mileage 100 miles $1.80 $180.00 Tractor with Lowboy Trailer Mileage 50 miles $2.35 $117.50 Auxiliary Vehicle Mileage 150 miles $1.50 $225.00 Steel Protop and PVC Monitoring Well Materials 1 each $615.00 $615.00 Section Subtotal:$9,109.50 Drilling Technician 1.5 hours $120.00 $180.00 Auxiliary Vehicle Rental 1.5 hours $35.00 $52.50 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 Per Reading:$307.50 Section Subtotal (12 readings):$3,690.00 Monitoring Well Sealing Drilling Technician 6 hours $120.00 $720.00 Auxiliary Vehicle Rental 3 hours $35.00 $105.00 Rotary Drill on All-Terrain Vehicle Rental 3 hours $144.00 $432.00 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 Tractor/Lowboy Trailer Mileage 50 miles $2.35 $117.50 Section Subtotal:$1,449.50 Traffic Control Signs Rental 2 days $150.00 $300.00 Subcontractor 1 days $2,000.00 $2,000.00 Section Subtotal:$2,300.00 Classification and Water Content 9 hours $130.00 $1,170.00 ASTM D6913 Sieve Analysis of Soils 5 tests $127.00 $635.00 ASTM D1140 Material Finer than No. 200 Sieve in Soils 5 tests $61.00 $305.00 ASTM D422 Particle Size Analysis of Soils (includes gradation)1 tests $250.00 $250.00 ASTM D2974 Moisture, Ash, and Organic Material of Peat & Organic Soils 2 tests $90.00 $180.00 Section Subtotal:$2,540.00 Project Administrator 6 hours $80.00 $480.00 Engineer I 10 hours $160.00 $1,600.00 Senior Engineer 14 hours $210.00 $2,940.00 Section Subtotal:$5,020.00 $26,089.00 Layout and Utility Clearance Project Administrator 1 hours $80.00 $80.00 Drilling Technician 5 hours $120.00 $600.00 Auxiliary Vehicle Rental 5 hours $35.00 $175.00 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 GPS Equipment 1 days $200.00 $200.00 Hourly Drilling Drilling Technician 16 hours $120.00 $1,920.00 Rotary Drill on All-Terrain Vehicle Rental 8 hours $144.00 $1,152.00 Auxiliary Vehicle Rental 8 hours $35.00 $280.00 Tractor with Lowboy Trailer Mileage 50 miles $2.35 $117.50 Auxiliary Vehicle Mileage 50 miles $1.50 $75.00 Laboratory Logging and Log Preparation Classification and Water Content 2 hours $130.00 $260.00 Project Administrator 1 hours $80.00 $80.00 Additional Scope Subtotal:$5,014.50 $31,103.50 SERVICE DESCRIPTION PROJECT BUDGET Layout & Utility Clearance Geotechnical Field Services Laboratory Project Management & Reporting ESTIMATED Traffic Control UNITS Monitoring Well Sealing Monitoring Well Readings TOTAL BASE SCOPE & PIEZOMETER Geotechnical Field Services (Additional Scope) TOTAL BASE, PIEZO, & ADDITIONAL Page 1 of 1 127 2023 GEOTECHNICAL FEE SCHEDULE 01DPM021.15 (1/23) AMERICAN ENGINEERING TESTING, INC. I.Personnel Hourly Rates A.Project Administrator 80.00/hr. B.Engr. or Env. Technician I 95.00/hr. C.Engr. or Env. Technician II 110.00/hr. D.Drill Technician/Geo Lab Technician 120.00/hr. E.Engr. or Env. Technician III 130.00/hr. F. Engineering Assistant 150.00/hr. G. Engineer I/Geologist I 160.00/hr. H.Senior Engineering Assistant 160.00/hr. I.Engineer II/Geologist II 180.00/hr. J. Senior Engineer/Geologist 210.00/hr. K. Principal Engineer/Geologist 250.00/hr. L. Principal of Firm 280.00/hr. II. Vehicle Mileage A. Personal Automobile/Truck 1.25/mile B.Auxiliary Vehicle Mileage 1.50/mile C.Truck with Warning Sign/Crash Trailer 1.60/mile D.Truck with Drill Rig 1.80/mile E.CPT Truck Rig (20-ton push capacity)2.10/mile F. Tractor/Lowboy Trailer 2.35/mile III. Equipment Rental A.Drill Rig Rental 1.Rotary Drill on Truck 110.00/hr. 2. Rotary Drill on All-Terrain Vehicle 144.00/hr. 3.Portable, Non-rotary Rig 107.00/hr. B.Auxiliary/Specialty Vehicle and Equipment Rental 1. Auxiliary Truck Vehicle 35.00/hr. 2. Truck with Warning Sign/Crash Trailer 52.00/hr. 3. Coring Equipment 60.00/hr. C.Cone (CPT) Rig/Equipment Rental 1.CPT Rig (Truck or ATV)188.00/hr. 2.Electronic Cone w/Computer 57.75/hr. 3. Soil Sampler 9.35/hr. 4.Water Sampler 25.25/hr. D.Miscellaneous Equipment Rental 1.Field Vane Shear 385.00/day 2.Field Electrical Resistivity 308.00/day 3.Field Seismic Shear Wave (ReMi) 500.00/day 4.Inclinometer Reading Equipment 400.00/day 5.Electronic Transducer Reading 209.00/day 6.Bore Hole Permeability a.Open End Casing Method 161.50/day b. HQ Wireline Packer 404.25/day 7.Borehole Pressuremeter 93.50/hr. 8.Iowa Borehole Shear Tester 385.00/day 9.Double Ring Infiltrometer 320.00/day 10. MPD Infiltrometer 320.00/day 11.GPS Mapping System 200.00/day 12.Pile Driving Analyzer (PDA)787.50/day 13.Calibrated SPT Rod 264.00/day 14. Pile Integrity Test (PIT)420.00/day E.Geotechnical Software Rental 1.Geo Studio Finite Element 99.00/hr. 2. CAPWAP 53.00/hr. 3. Wave Equation (WEAP) 40.00/hr. 4.LPILE or GROUP 40.00/hr. 5. Slope Stability (ReSSA) 40.00/hr. 6.Stabilized Earth Slopes & Walls 40.00/hr. 7.Settlement (FoSSA) 40.00/hr. F.Bit Wear- Rock Coring 1.Diamond Bit - Sedimentary Rock a)B, HQ, NQ 18.75/foot 2.Diamond Bit - Metamorphic & Igneous a)B, HQ, NQ 28.50/foot IV.Laboratory Tests of Soil A.Water Content 15.00/test B.Dry Density (includes water content) 90.00/test C. Atterberg Limits (ASTM:D4318) 1. Plasticity Index 141.00/test 2.Liquid Limit or Plastic Limit Separately 126.00/test D.Sieve Analysis (includes -#200) 130.00/test E.Materials Finer than #200 Sieve 65.00/test F.Hydrometer Analysis (sieve included) 250.00/test G. Thermal Resistivity w/Proctor (ASTM:D5334) 1.As Received and Oven Dried (2 pts) 1050.00/test 2.Dry Out Curve (4 pts) 1305.00/test H. Electrical Resistivity a)ASTM:G57 or G187 124.00/test b)AASHTO T 288 245.00/test I.Corrosion/Concrete Attack Series* price upon request J.Consolidation (up to 32 tsf) 1.With P-e curves only 590.00/test 2.With P-e curves, time curves 725.00/test J.Unconfined Compression (incl. wc/density) 127.00/test K.Hand Penetrometer 17.50/test L.Organic Content of Soil 115.00/test M.Topsoil Borrow Test (Mn/DOT 3877) 325.00/test N.R-value (Hveem Stabilometer) 470.00/test O. California Bearing Ratio 1.Granular 750.00/test 2. Cohesive 855.00/test P.Proctor Tests (Methods A or B) 1.Standard 175.00/test 2.Standard (Cohesive) 200.00/test 3. Modified 180.00/test 4. Modified (Cohesive) 200.00/test Q. Thin-Walled Tube Samples 1. Sample Extrusion 27.50/each 2. Sampler Replacement 30.00/each *includes pH, chloride ion, soluble sulfates, sulfides, redox potential (resistivity not included). V. Expenses A.Borehole Grouting – Bentonite Grout 2.00/foot B.Borehole Grouting – Neat Cement Grout 10.00/foot C.Direct Project Expenses: includes out-of- Cost + 15% town per diem; plowing & towing; special materials & supplies; special travel, transportation & freight; subcontracted services, and miscellaneous costs D.Equipment Replacement (when abandonment Cost is more feasible than recovery) E.Equipment Recovery (when required by Cost + 15% regulatory agencies or project specifications) The rates presented are portal-to-portal with vehicle mileage, expenses and equipment rentals being additional. Overtime for personnel charged at above cost plus 25% for over 8 hours per day or Saturday; and at above cost plus 50% for Sundays or Holidays. Hazardous work charged at an additional 25%. Night time shift work will include a premium charge of $30.00 per person per shift. 128 H:\Projects\13000\13378\Design\Layouts\Preliminary\13378_Layout.dwg : LayoutJob 133785/28/2020 - 10:43AMTH 41 and Minnetonka Middle School West Access Concept LayoutProposed Intersection ReconstructionMNDOTFigure 1129 City Council Item October 9, 2023 Item Award Contract for Audit Services File No.Item No: D.7 Agenda Section CONSENT AGENDA Prepared By Kelly Grinnell, Finance Director Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council awards a contract for the Audit Service Proposal from Abdo for audit years 2023 through 2027." Motion Type Simple Majority Vote of members present Strategic Priority Operational Excellence SUMMARY Staff issued an RFP (Request for Proposal) for audit services for the city for the fiscal years 2023-2027 (RFP attached). The proposal indicated that a five-year contract is proposed, subject to annual review by the city. Staff received proposals from a total of five audit firms and interviewed three firms. Staff recommends awarding the audit contract to Abdo (proposal attached). Abdo works with over 100 cities and has worked with several entities that also use the same financial software as the city. Staff has worked with Abdo in other cities and is familiar with their approach and work. Abdo is also able to provide other services such as human resources solutions, ERP evaluations, and contracted financial staff. Abdo submitted the lowest bid for the five-year contract period. The maximum cost for the 2023 audit will be $43,500, which is slightly below the amount the city paid for its 2022 audit. The maximum cost for the five-year contract period is $238,000. A summary of the proposal fees is below: 130 Audit Firm Proposed 2023 Audit Fee Proposed 2023-2027 Audit Fees Abdo $43,500 $238,000 BerganKDV $47,750 $269,635 Redpath $50,350 $278,250 Wipfli $62,600 $345,955 EideBailly $72,825 $423,525 The fee for a Federal Single Audit is separate. A Single Audit is required if the city spends more than $750,000 in a given year from Federal grants. The Abdo proposal indicates the fee would be $5,500 for a Single Audit in 2023. BACKGROUND DISCUSSION BUDGET RECOMMENDATION Staff recommends the Chanhassen City Council accept the Audit Service Proposal from Abdo for audit years 2023 through 2027. ATTACHMENTS Audit 2023-2027 Request for Proposals Abdo Audit Service Proposal Abdo Final Dollar Cost Proposal 2023-2027 Abdo Engagement Letter 131 CITY OF CHANHASSEN REQUEST FOR PROPOSALS PROFESSIONAL AUDITING SERVICES City of Chanhassen Chanhassen Fire Relief Association FISCAL YEARS ENDING 2023 – 2027 City of Chanhassen, Minnesota 7700 Market Blvd PO Box 147 Chanhassen, MN 55317 Kelly Grinnell Finance Director 952.227.1149 kgrinnell@chanhassenmn.gov RFP Issued – August 1, 2023 Proposals Due – August 31, 2023, by 4:00 p.m. 132 8/1/2023 Request for Proposals – Professional Auditing Services 1 TABLE OF CONTENTS 1. Introduction a. General Information b. Term of Engagement c. Subcontracting 2. Nature of Services Required a. Scope of Work to be Performed b. Auditing Standards to be Followed c. Reports to be Issued d. Additional Nonaudit Services e. Special Considerations f. Retention of Workpapers and Access to Workpapers g. Official Statements h. Reporting to the City Council 3. Description of the City of Chanhassen 4. Description of the Chanhassen Fire Relief Association 5. Time Requirements a. Anticipated Proposal Calendar b. Notification c. Schedule for Audit Completion – City of Chanhassen d. Schedule for Audit Completion – Chanhassen Fire Relief Association 6. Assistance to be Provided to the Auditor and Report Preparation a. Finance Department Assistance b. Work Area c. Access to Financial and Other Software d. Access to Prior Year Audit Reports and Management Letters e. Report Preparation 7. Proposal Requirements a. General Requirements b. Technical Proposal c. Schedule of Professional Fees and Expenses 8. Evaluation Procedures a. Selection Committee b. Evaluation Criteria – City Audit i. Mandatory Elements ii. Technical Qualifications 133 8/1/2023 Request for Proposals – Professional Auditing Services 2 iii. Price Consideration c. Oral Presentations d. Final Selection e. Right to Reject Proposals 9. Appendices a. Proposer Guarantees and Warranties b. Schedule of Professional Fees and Expenses - City c. Schedule of Professional Fees and Expenses – CFRA 134 8/1/2023 Request for Proposals – Professional Auditing Services 3 1. Introduction a. General Information The City of Chanhassen (City) is requesting proposals from qualified firms of Certified Public Accountants to audit its financial statements for the fiscal year ending December 31, 2023, with the option, upon mutual agreement, of auditing the financial statements for each of the four subsequent fiscal years. The audit of the City is to be performed in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the MN State Legal Compliance audit requirements, as well as all other Federal, State, and local requirements in effect now or placed in effect during the engagement. In addition, the audit must comply with the provisions of the Federal Single Audit Act of 1996 and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments, if such an audit is required. The City is also requesting proposals (on behalf of the Chanhassen Fire Relief Association (CFRA)) to audit the financial statements for the CFRA for the fiscal year ending December 31, 2023, with the option, upon mutual agreement, of auditing the financial statements for each of the four subsequent fiscal years. There is no express or implied obligation for the City to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. The City of Chanhassen shall not be liable for any expenses incurred by the applicant, including, but not limited to, expenses associated with the preparation of the proposal, attendance at interviews, preparation of a compensation (fee) schedule, or final contract negotiations. Proposals must be submitted by 4:00 P.M. on August 31, 2023, via preferred email submission to: kgrinnell@chanhassenmn.gov or if by mail, addressed to: City of Chanhassen Attn: Kelly Grinnell Finance Director PO Box 147 Chanhassen, MN 55317 The City reserves the right without prejudice to reject any and or all proposals submitted. 135 8/1/2023 Request for Proposals – Professional Auditing Services 4 During the evaluation process, the City reserves the right, where it may serve the City’s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. Firms may be requested to make oral presentations to the Selection Committee as part of the final evaluation process. The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. It is anticipated the selection of a firm will be completed by September 30, 2023. Following the notification of the selected firm, it is expected a contract will be executed between both parties following the October 9, 2023, meeting of the City Council. b. Term of Engagement A five-year contract is proposed, subject to an annual review by the City. In the event of unsatisfactory performance, or when in the best interest of the City, proposals may be solicited before the end of the five-year period. The City reserves the right to negotiate all terms and conditions of the contract. In the event the City and the firm are unable to agree upon all contract provisions, the City reserves the right to cease negotiations, reject the firm’s proposal, and proceed to negotiate with the next selected firm. c. Subcontracting No subcontracting will be allowed without the express prior written consent of the City of Chanhassen. 2. Nature of Services Required a. Scope of Work to be Performed The scope of work to be performed will be consistent with the audit performed for the 2022 Annual Comprehensive Financial Report (ACFR). A copy of the City’s 2022 (ACFR) is available on the City’s website at Financial Reports | Chanhassen, MN (chanhassenmn.gov). The auditor is required to prepare the ACFR and perform an annual review to determine the steps necessary so that the City may apply to receive a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) during this engagement. The City desires the auditor to express an opinion on the fair presentation of its basic financial statements, each major fund, and the aggregate remaining fund information of the City and the respective changes in financial position and, where applicable, cash flows thereof and respective budgetary comparison for the General Fund and major 136 8/1/2023 Request for Proposals – Professional Auditing Services 5 special revenue funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. For the City, the auditor is required to audit the basic financial statements. The introductory section, combining and individual nonmajor fund statements and schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The auditor shall also be responsible for performing certain limited procedures involving supplementary information required by the Governmental Accounting Standards Board (GASB) as mandated by generally accepted auditing standards. b. Auditing Standards to be Followed To meet the requirements of this request for proposals, the audit shall be performed in accordance with: Auditing standards generally accepted as set forth by the American Institute of Certified Public Accountants (AICPA) Standards applicable to financial audits contained in the Government Auditing Standards (GAS), issued by the Comptroller General of the United States Provisions of the U.S. Office of Management and Budget (OMB) Circular A-133, as applicable Provisions of the Single Audit Act of 1984 (as amended 1996) Provisions of the Minnesota Legal Compliance Audit Guide for Local Government Any other Federal, State, or local requirements in effect now or placed into effect during the engagements. c. Reports to be Issued The auditor shall prepare the following reports for the City at the completion of the audit: Opinion letter on the City’s basic financial statements in conformity with accounting principles generally accepted in the United States of America Report on the consideration of the City’s internal controls over financial reporting Report on compliance with applicable laws and regulations Communicate in a letter to management any reportable conditions found during the audit If a single audit is needed, issue an auditor’s report on the internal control over compliance for major federal programs, an opinion on compliance requirements applicable to each major federal program, and a summary of the auditor’s results and a schedule of findings and questioned costs, if any, required by the OMB Present opinion, procedures, and overview of the City’s financial condition to the City Council 137 8/1/2023 Request for Proposals – Professional Auditing Services 6 The auditor shall prepare the following reports for the CFRA at the completion of the audit: Opinion letter on the basic financial statements in conformity with accounting principles generally accepted in the United States Report on the consideration of internal control over financial reporting Report on compliance with applicable laws and regulations Communicate in a letter to management any reportable conditions found during the audit If a single audit is needed, issue an auditor’s report on the internal control over compliance for major federal programs, an opinion on compliance requirements applicable to each major federal program, and a summary of the auditor’s results and a schedule of findings and questioned costs, if any, required by the OMB Complete all reports required by the Office of the State Auditor d. Additional Nonaudit Services Additional nonaudit services are not anticipated but can be performed as allowed and desired upon the mutual consent and agreement of compensation between the City and the selected firm. e. Special Considerations The City will rely on the expertise of the auditors to inform the City of changes in auditing standards and regulations which may require the auditor to change the scope of work in the future. The City will send its ACFR to the Government Finance Officers Association (GFOA) for review in their Certificate of Achievement for Excellence in Financial Reporting program. The City has received the GFOA Certificate of Achievement for Excellence in Financial Reporting since 1992 and intends to continue to submit future reports for the award. It is anticipated that the auditor will be required to assist the City to continue to meet the requirements of this program. f. Retention of Workpapers and Access to Workpapers All working papers and reports must be retained, at the auditor’s expense, for a minimum of three years, unless the firm is notified in writing by the City of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees: the City of Chanhassen, State Auditor’s Office, U.S. General Accounting Office (GAO), and parties designated by federal or state governments or by the City of Chanhassen as part of an audit quality review process. All data relating to the audit, including work papers, will be subject to the same data classifications that apply under Minnesota Statutes § 6.715. The auditor conducting a City audit must provide access to such data relating to the audit and is liable for 138 8/1/2023 Request for Proposals – Professional Auditing Services 7 unlawful disclosure of the data as if it were a government entity under Minnesota Statute Chapter 13. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. g. Official Statements The City anticipates it will prepare one or more official statements in connection with the sale of debt securities, which will contain the general-purpose financial statements and the auditor’s report thereon. The auditor is required, if requested by the municipal advisor and/or underwriter, to issue a “consent and citation of expertise” as the auditor and any necessary “comfort letters.” h. Reporting to the City Council The City Council is to be informed of each of the following: The auditor’s responsibility under generally accepted auditing standards Significant accounting policies Management judgments and accounting estimates Significant audit adjustments Other information in documents containing audited financial statements Disagreements with management Management consultation with other accountants Major issues discussed with management prior to retention Difficulties encountered in performing the audit 3. Description of the City of Chanhassen The City of Chanhassen strives to be “A Community for Life.” Our vision is that Chanhassen is a safe, welcoming community with engaged residents, abundant natural amenities, and vibrant businesses, supported by valued services that make this a community for life. Our mission is to serve the public. We do this through the delivery of reliable, cost-effective services designed to provide a safe, sustainable community. Our core values are innovation, respect, stewardship, and engagement. The City of Chanhassen, Minnesota, a suburban community located southwest of the Twin Cities metropolitan area, is situated primarily in eastern Carver County with a small portion in Hennepin County. The City encompasses an area of 22.8 square miles. Chanhassen enjoys an excellent location, with convenient access to the Minneapolis- Saint Paul metropolitan area via U.S. Highway 212, and State Highways 5 and 7. State Highways 41 and 101 provide access to the north and south. The Village of Chanhassen was organized in 1896. In 1967 the Village of Chanhassen and Chanhassen Township merged to become the City of Chanhassen. The City of Chanhassen operates as a statutory Plan B or Council-Manager form of government in 139 8/1/2023 Request for Proposals – Professional Auditing Services 8 Minnesota. Plan B cities have an elected mayor and council members with an appointed City Manager. The City Manager oversees administrative duties for the City while the Mayor and Council maintain traditional policy-making roles. With a staff of around 82 regular, full-time employees, the City of Chanhassen provides a full range of services, including police and fire protection; building inspections; construction and maintenance of highways, streets, and other infrastructure; recreational activities and cultural events; and general administrative services. The City also operates three enterprises: water, sewer, and surface water management. The City is also financially accountable for the Chanhassen Economic Development Authority (EDA), which is considered a blended component unit of the City. The Chanhassen City Council serves as the board of the EDA. 4. Description of the Chanhassen Fire Relief Association The CFRA consists of 31 members and has an investment portfolio in excess of $2 million. The Chanhassen Fire Department operates at one fire station. The CFRA consists of six (6) Trustees, as well as three (3) Ex Officio Members. More detailed information on the CFRA and its finances can be provided upon request from Treasurer Matt Warden matthew.warden78@gmail.com. The CFRA is a legal entity separate from the City of Chanhassen and may choose to have a different auditor. Proposals should include a cost for these services as a separate item from the other services that are to be provided. The City and the CFRA may choose different auditors based on the fees, qualifications, or other factors they deem appropriate. 5. Time Requirements a. Anticipated Proposal Calendar The following is a list of key dates regarding the selection process: Due date for proposals August 31, 2023, by 4:00 p.m. Finalist interviews, as necessary September 2023 Contract consideration by the City Council October 9, 2023 b. Notification It is anticipated that the staff-recommended firm will be notified prior to September 30, 2023. c. Schedule for Audit Completion – City of Chanhassen Each of the following should be completed by the auditor no later than the dates indicated. Entrance Conference – December 15 of each year 140 8/1/2023 Request for Proposals – Professional Auditing Services 9 The purpose of this meeting will be to discuss prior audit issues (if applicable) and the interim work to be performed. The auditor shall provide the City at the Entrance Conference with both a detailed audit plan and a list of all schedules to be prepared by the City. Preliminary Field Work – The schedule for preliminary fieldwork will be determined upon completion of the selection process. Fieldwork – The City of Chanhassen will have its accounting records ready for audit by the end of March. The auditor will be required to complete fieldwork no later than April 30. Exit Conference – By May 31 of each year. The purpose of this meeting will be to summarize the results of fieldwork, review significant findings, and review reports to be issued. The auditor shall have drafts of the annual reports and final recommendations to management available for review at or prior to the Exit Conference. Final Opinions and Reports Delivered to the City – By June 15 of each year Auditor Presentation to the City Council – By June 30 of each year d. Schedule for Audit Completion – Chanhassen Fire Relief Association The schedule for the audit for the CFRA will be determined at a later date; however, all reports must be completed and filed prior to June 30 of each year. 6. Assistance to be Provided to the Auditor and Report Preparation a. Finance Department Assistance The Finance Department of the City of Chanhassen is headed by Kelly Grinnell, Finance Director, and consists of four other full-time employees: Finance Department staff and responsible management personnel will prepare the necessary workpapers and be available during the audit to assist the firm by providing information, documentation, and explanations. The preparation of confirmations will be the responsibility of the City as directed by the auditor. Finance Director Assistant Finance Director Financial Analyst Accountant Accounting Technician - Utility Billing 141 8/1/2023 Request for Proposals – Professional Auditing Services 10 b. Work Area The City will provide the audit staff with a conference room with tables and chairs. The auditor will be provided access to the internet and office equipment, such as the copier, scanner, and printer. c. Access to Financial and Other Software The City uses Springbrook software for financial and utility billing functions. The City will endeavor to provide read-only access to pertinent system data. d. Access to Prior Year Audit Reports and Management Letters Interested proposers who wish to review prior year audit reports and management letters should contact Kelly Grinnell, Finance Director. The City of Chanhassen will use its best efforts to make prior audit reports and supporting work papers available to proposers to aid their response to this request for proposal. The City and proposers recognize and agree that all actions related to government data must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13. e. Report Preparation Report preparation, editing, printing, binding, etc. will be the responsibility of the auditor. The Firm shall consult with the City’s Finance Director who will provide a final number of the fully processed reports which will be provided to the City. Electronic copies of these reports shall also be provided to the City. The auditor will prepare, print, and bind financial statements for the CFRA. Electronic copies of the reports shall also be provided to the CFRA. 7. Proposal Requirements a. General Requirements Contact – Inquiries concerning the request for proposals and the subject of the request for proposals must be addressed in writing to: Kelly Grinnell, Finance Director City of Chanhassen 7700 Market Blvd, PO Box 147 Chanhassen, MN 55317 kgrinnell@chanhassenmn.gov All responses, questions, and correspondence should be directed to Kelly Grinnell, Finance Director. In the interest of fairness to all respondents, do not contact other staff or elected or appointed officials. 142 8/1/2023 Request for Proposals – Professional Auditing Services 11 Written questions on the RFP will be accepted until August 24, 2023, at 4:30 p.m. to allow time for staff to respond in writing to all holders of this RFP. Written questions submitted after August 24, 2023, at 4:30 p.m. may go unanswered. Submission of Proposals – The following material is required by August 31, 2023, at 4:00 p.m. for a proposing firm to be considered: Title Page – Title page showing the request for proposal’s subject; the firm’s name; the name, mailing address, telephone number, and email address of the contact person; and the date of the proposal. Table of Contents Transmittal Letter – A signed letter of transmittal briefly stating the proposer’s understanding of the work to be done, the commitment to perform the work within the time period, a statement about why the firm believes itself to be the best qualified to perform the engagement, and a statement that the proposal is a firm and irrevocable offer for the five-year period. Detailed Proposal – The detailed proposal should follow the order set forth in Sections 7b and 7c of this RFP. Proposer Guarantees and Warranties – An executed copy of the Proposer Guarantees and Warranties (attached to this RFP in Appendix A). Schedule of Professional Fees and Expenses for the City Audit – A completed Schedule of Professional Fees and Expenses for the Audit (attached to the RFP in Appendix B). Schedule of Professional Fees and Expenses for the CFRA Audit – A completed Schedule of Professional Fees and Expenses for the Audit (attached to the RFP in Appendix C). b. Technical Proposal General Requirements – The purpose of the proposal is to demonstrate the qualifications, competence, and capacity of the firms seeking to undertake an independent audit of the City in conformity with the requirements of this RFP. As such, the substance of the proposals will carry more weight than their form or manner of presentation. The proposal should demonstrate the qualifications of the firm and the staff to be assigned to the engagement. The proposal should address all the points outlined in the RFP. The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer’s capabilities to satisfy the requirements of the RFP. While additional data may be presented, the following items must be included. They represent the criteria upon which the proposal will be evaluated. Independence – The firm should provide an affirmative statement that it is independent of the City as defined by generally accepted auditing standards. The 143 8/1/2023 Request for Proposals – Professional Auditing Services 12 firm should also provide an affirmative statement that it is independent of all component units of the City. License to Practice in Minnesota – The firm should provide an affirmative statement that the firm and all key professional staff are properly licensed to practice in Minnesota. Firm Qualifications and Experience – The proposal should state the size of the firm, the size of the firm’s governmental audit staff, the location of the office from which the work on this engagement is to be performed, and the number and nature of the professional staff to be employed in this engagement on a full-time basis and a part-time basis. The firm is also required to submit a copy of the report on its most recent external quality control review, with a statement of whether that quality control review included a review of specific government engagements. The firm shall also provide information on the results of any federal or state desk reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations. Partner, Supervisory, and Staff Qualifications and Experience – The proposal should identify the principal supervisory and management staff, including engagement partners, managers, other supervisors, and specialists who would be assigned to the engagement. Indicate whether each such person is registered or licensed to practice as a Certified Public Accountant (CPA) in Minnesota. Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. Engagement partners, managers, other supervisory staff, and specialists may be changed if those personnel leave the firm, are promoted, or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the City. Other audit personnel may be changed at the discretion of the firm if the replacements have substantially the same or better qualifications or experience. Similar Engagements with Other Government Entities – The proposal should describe the firm’s experience with local government audits and audits of federal programs. For the firm’s office that will be assigned responsibility for the audit, list the most significant engagements performed in the last three (3) years that are similar to the engagement described in this RFP and indicate whether the cities 144 8/1/2023 Request for Proposals – Professional Auditing Services 13 were awarded the GFOA Certificate for Achievement for Excellence in Financial Reporting. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. Specifically, identify the engagements at which the managers and other supervisors who will be assigned to this engagement have worked. Specific Audit Approach – The proposal should set forth a work plan, including an explanation of the audit methodology to be followed to perform the services required in this RFP. In developing the work plan, reference should be made to such sources of information as the City’s budget and related materials, organizational charts, manuals and programs, and financial and other management information systems. Firms should provide the following information on their audit approach: Proposed timing and segmentation of the engagement Level of staff and number of hours to be assigned to each proposed segment of the engagement Sample sizes and the extent to which statistical sampling is to be used in the engagement Extent of use of computer software in the engagement Type and extent of analytical procedures to be used in the engagement Approach to be taken to gain and document an understanding of the City’s internal control over financial reporting and internal control structure Approach to be taken in determining laws and regulations that will be subject to compliance test work Approach to be taken in drawing audit samples for purposes of tests of compliance. Report Format – The proposal should include sample formats for required reports. Identification of Anticipated Potential Audit Problems – The proposal should identify and describe any anticipated potential audit problems, the firm’s approach to resolving these problems, and any special assistance that will be requested from the City. Specifically include the firm’s response to the pandemic and changes in data security protocols. Also, address remote workforce collaboration with clients during fieldwork. Acknowledgment – The proposal should include acknowledgment of the required audit schedule and a statement as to the firm’s ability to meet the schedule. 145 8/1/2023 Request for Proposals – Professional Auditing Services 14 c. Schedule of Professional Fees and Expenses The City will not be responsible for expenses incurred in preparing and submitting the proposal. Such costs should not be included in the proposal. The Schedule of Professional Fees and Expenses should include: Total All-Inclusive Maximum Price – The dollar cost proposal should specify all pricing information relative to performing the audit engagement as described in this RFP. The total all-inclusive maximum price is to include all direct and indirect costs, including all out-of-pocket expenses for each of the years 2023-2027. Rates and Anticipated Hours for Partner, Specialist, Supervisory, and Staff Level Personnel – The dollar cost bid should include a schedule of professional fees and expenses, presented in the format provided in Appendices B and C that supports the total all-inclusive maximum price. Single Audit – Since the Single Audit work is based on the requirements of individual grants which may vary, the cost of the Single Audit should be stated separately and be based on an hourly rate and estimated minimum hours needed to complete a basic Single Audit. Rates for Additional Professional Services – If it should become necessary for the City to request the auditor to render any additional services to either supplement the services requested in this RFP or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between the City and the firm. Any such additional work agreed to between the City and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the dollar cost bid. Manner of Payment – Progress payments will be made based on hours of work completed during the course of the engagement and out-of-pocket expenses incurred by the firm’s dollar cost proposal. Interim billings shall cover a period of not less than one calendar month. 8. Evaluation Procedures a. Selection Committee Proposals submitted for the City audit will be evaluated by a three-member Selection Committee consisting of the City Manager, Finance Director, and Assistant Finance Director. Proposals submitted for the CFRA audit will be evaluated by the CFRA trustees. b. Evaluation Criteria – City Audit Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria will have their proposals evaluated and scored for both technical 146 8/1/2023 Request for Proposals – Professional Auditing Services 15 qualifications and price. The following represent the principal selection criteria that will be considered during the evaluation process. Mandatory Elements – The following elements are considered mandatory: The audit firm is independent and licensed to practice in Minnesota The audit firm’s professional personnel have received adequate continuing professional education within the preceding three years The firm has no conflict of interest with regard to any other work performed by the firm for the City The firm adheres to the instructions in this RFP on preparing and submitting the proposal The firm submits a copy of its last external quality control review report, including any letter of comments Technical Qualifications – The City will evaluate technical qualifications based on the following: i. Expertise and Experience The firm exhibits expertise based on experience and performance on comparable government engagements The firm has demonstrated an ability to assist its government clients in attaining and retaining the GFOA Certificate of Achievement in Financial Reporting The quality of the firm’s professional personnel to be assigned to the engagement and the quality of the firm’s management support personnel to be available for technical consultation Location of the offices performing the work and availability/responsiveness of staff, as derived from the written proposal ii. Audit Approach Adequacy of the proposed staffing plan for various segments of the engagement Adequacy of analytical procedures and sampling techniques Ability to meet desired timing of the engagement and scheduled deadlines iii. Pandemic Response, Remote Work, and Technological Considerations The firm exhibits expertise based on experience and performance during a pandemic Adequacy of proposed response to a pandemic-type situation plan with the possibility of remote workforce communication and collaboration Files are transferred using a secure connection 147 8/1/2023 Request for Proposals – Professional Auditing Services 16 Price Consideration The cost of the audit for years 2023-2027 should be calculated on the Schedule of Professional Fees and Expenses in Exhibit B. Cost will not be the dominating factor the Selection Committee will use to evaluate proposing firms. c. Oral Presentations During the evaluation process, the Selection Committee may, at its discretion, request any or all firms to make oral presentations. Such presentations will provide firms with an opportunity to answer any questions the Selection Committee may have on a firm’s proposal. Not all firms may be asked to make such oral presentations. d. Final Selection The City intends to select a firm based on the recommendation of the Selection Committee. It is anticipated that the Council will approve the recommended firm on October 9, 2023. e. Right to Reject Proposals Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. The City reserves the right, without prejudice, to reject any or all proposals. 148 8/1/2023 Request for Proposals – Professional Auditing Services 17 APPENDIX A PROPOSER GUARANTEES AND WARRANTIES I. The proposer certifies it can and will provide and make available, as a minimum, all services set forth in the RFP. II. The proposer warrants that it does not have any conflicts of interest with the City of Chanhassen, its management staff, or its elected officials. III. The proposer warrants that the Firm and all key professional staff are properly licensed to practice in the State of Minnesota. IV. The proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees, or agents thereof. V. The proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the City of Chanhassen. VI. The proposer warrants that all information provided by it in connection with this proposal is true and accurate. Signature of Official: _______________________________________________ Name (Typed): _____________________________________________________ Title: _______________________________________________________________ Firm: _______________________________________________________________ Date: _______________________________________________________________ 149 8/1/2023 Request for Proposals – Professional Auditing Services 18 APPENDIX B SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDITS OF THE 2023-2027 FINANCIAL STATEMENTS FOR THE CITY OF CHANHASSEN CITY AUDIT - 2023 Position Hours Standard Hourly Rate Proposed Hourly Rate Total Partner Manager(s) Supervisor(s) Staff Other People Expenses Other Costs Total – City Audit SINGLE AUDIT (IF NEEDED) - 2023 Hours Average Rate Total Firm Staff SUMMARY SCHEDULE 2023-2027 Fiscal Year Ending December 31, ACFR Total All-Inclusive Maximum Price Single Audit Cost (if required) 2023 2024 2025 2026 2027 Total 150 8/1/2023 Request for Proposals – Professional Auditing Services 19 APPENDIX C SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDITS OF THE 2023-2027 FINANCIAL STATEMENTS FOR THE CHANHASSEN FIRE RELIEF ASSOCIATION CFRA AUDIT - 2023 Position Hours Standard Hourly Rate Proposed Hourly Rate Total Partner Manager(s) Supervisor(s) Staff Other People Expenses Other Costs Total – CFRA Audit SINGLE AUDIT (IF NEEDED) - 2023 Hours Average Rate Total Firm Staff SUMMARY SCHEDULE 2023-2027 Fiscal Year Ending December 31, ACFR Total All-Inclusive Maximum Price Single Audit Cost (if required) 2023 2024 2025 2026 2027 Total 151 Proposed by Andrew Berg, CPA Partner |Abdo andrew.berg@abdosolutions.com P 952.715.3003 August 24, 2023 SERVICE PROPOSAL FOR City of Chanhassen 7700 Market Blvd,Chanhassen, Minnesota 55317 abdosolutions.com |Mankato, MN -Edina, MN -Scottsdale, AZ 152 Kelly Grinnell,Finance Director City of Chanhassen 7700 Market Blvd Chanhassen, Minnesota 55317 August 24, 2023 Dear Kelly, Thank you for the opportunity to submit this proposal to the City of Chanhassen (the City) for audit services.We appreciate the oppor tunity to work with you. Based on our experience with cities like you, we are confident that Abdo (the Firm) would be a great fit. We work hard for those who matter most - clients, employees, family, and community - and celebrate their successes as our own. This belief is represented through our commitment to people and knowledge, process and you. We will utilize staff that is experienced and dedicated in the area of government. Our process is centered on meeting your needs, exceeding your expectations, and incorporating technology to deliver unparalleled solutions. This includes delivering prompt and effective service of the highest quality to you. The quality of our service allows us an opportunity to be an integral part of your finance team. We believe this investment should make a difference for you, our valued client. We focus on the challenges and needs that are relevant to your city, which allows us to be thoughtful in our approach in providing you with the best solutions, and leaves you assured in the value of our deliverable. The attached proposal will demonstrate to you that we will be a great service provider and par tner for your city. We look forward to meeting with you to discuss our proposal and appreciate this opportunity to present our firm for your consideration. We will follow up with you within two weeks to answer any questions or concerns you may have and to provide any further information you may need. Sincerely, Abdo Andrew Berg, CPA Partner | Abdo 1 153 Executive Summary Recently we had the opportunity to discuss the City's needs in more detail with Kelly Grinnell, Finance Director. Based on this conversation and our understanding of the City's needs set for th in the request for proposal, we propose the following solutions for City. We understand that the key requirements you have of your selected advisors include: •Access to partners and staff for assistance in answering questions throughout the year, including communication of new standards and industry news •Deliver both concise and informative information to the Council •Demonstrate familiarity, knowledge and experience in the industry •Provide proficiency with Springbrook. •Provide a timely and efficient audit We understand that the requested work to be completed includes the following services: •Annual Financial Statement Audit •Single Audit (if applicable) •Executive Governance Summary •Presentation to the Council Based on our work with more than 100 cities similar to yours, we firmly believe we can meet your requirements and exceed your expectations for the reasons listed below and referenced in our proposal. •We provide timely services and currently adhere to an 18-day turnaround time from fieldwork for the delivery of draft financial statements to the client. •We have worked with numerous other entities with Springbrook. •Our Council presentation uses ratios and comparisons of trends that give snapshots of metrics for your Organization through graphs and charts. •We have a dedicated team of over 60 partners, managers and staff that serve governments exclusively. •Our experience extends beyond just audit and compliance. We also provide the following services to our clients: ◦Human Resource solutions ◦Long-term financial planning ◦One-on-one personalized and group-focused training opportunities ◦Process improvements, including lean process and process evaluation •Integral to our mission is a philosophy that we help organizations reach their maximum potential through open communications and teamwork.We enjoy answering questions any time of the year, and at no cost! SEE A SAMPLE Click here to see a sample audit presentation for city clients! 2 154 Based on our ability to provide the requested services, our shared core values, and an understanding of your unique needs, we have the resources, knowledge, people and services to light the path forward for your city. We have assembled a team with relevant experience who are committed to working with you to ensure success. Each team member is briefly profiled below, and full biographies can be found in Appendix C. Your Team Government Partner thomas.olinger@abdosolutions.com P 507.304.6802 TOM OLINGER, CPA Associate jill.knutson@abdosolutions.com P 952.715.3074 33 JILL KNUTSON, CPA Associate cierra.nagovsky@abdosolutions.com P 952.715.3008 CIERRA NAGOVSKY Senior Associate kimberly.dauer@abdosolutions.com P 507.304.6842 KIMBERLY DAUER Government Partner andrew.berg@abdosolutions.com P 952.715.3003 ANDY BERG, CPA Manager tyler.see@abdosolutions.com P 952.939.3230 TYLER SEE, CPA Associate john.stachel@abdosolutions.com P 952.939.3212 JOHN STACHEL 155 OUR QUALIFICATIONS •GFOA and MnGFOA Association members •We speak and train on government accounting and auditing topics •Audit services for 100+ cities •Our clients represent top tier governments with 20 municipal clients receiving the GFOA’s Certificate of Achievement for Excellence in Financial Repor ting •Audit services for 20+ EDA’s and HRA’s •Audit services for 35+ other governmental entities •Audit or attestation services for 80 Fire Relief Association's 114 CITY & COUNTY CLIENTS You can have confidence in our 60 years of quality auditing services and partnership in the government space. Since 1963, we’ve served entities just like yours. With an unwavering commitment to streamlining processes, training staff, and finding technology-based solutions, we proudly offer excellence in auditing.Out of our 240-strong, talented staff, over 60 team members are 100% focused on government clients, including services for over 100 cities and various municipalities. By serving local municipalities across Minnesota, we have become experts in the nuances of how to best suppor t your city. Our expertise affords you an audit experience that’s painless. We do this by communicating up front, coming better prepared, and being available throughout the year to support you. PROCESS Our methods are centered around incorporating technology to deliver unparalleled solutions for local governments. In addition to our audit experience, our firm expertly performs outsourcing for governments giving us a wealth of experience in a finance director role. We don’t believe in a one-size-fits-all mentality, so together we’ll focus on the needs that are relevant to your and provide the right services to meet them with a tailored approach. FOCUS Through continuous training and growth oppor tunities, we’ve established an environment with a focus on serving local governments. We spend more than 100 hours training and onboarding to ensure success for our clients. We truly hope that you partner with our team to forge a brighter path forward for your city. Government Experience ACROSS MINNESOTA 4 156 Audit Approach We deliver auditing services that are more than just a compliance service. We exceed what’s considered the “standard audit support,” placing a strong emphasis on a relationship-driven approach that facilitates a partnership with your city. We work together to ensure we have a clear understanding of the City’s needs, challenges and financial information. Together with your team, we’ll help to leverage this information to increase efficiency and effectiveness. PARTNERSHIP Integral to our mission is a philosophy that we help cities reach their maximum potential through open communication and teamwork. We enjoy answering questions any time of the year, and at no cost! We also believe in: •Consistent, clear, proactive communication that offers suggestions and makes your work easier •Returning phone calls and questions promptly •Gathering information through dialog, not checklists •Conducting listening calls with you outside of the engagement to understand the City,build a long-term relationship with you, and learn how we can improve. PEOPLE Our value comes from our experience and the education we can provide. Our professionals go beyond the required standards to make sure we have a clear understanding of your city. We work with your management team to leverage this information to increase efficiency and profitability. We put together a team of experts specifically for you, whose experience and industry knowledge aligns with the needs of your city. PROCESS While we will audit the financial statements of your city in accordance with the applicable regulatory standards, our process is designed to go far beyond that. It enables us to gain a thorough understanding of the processes, procedures, and general operations of your city. 55 157 6 Audit Approach Continued CLIENT UNDERSTANDING Your leadership team plays an important role in your financial reporting. We always begin our process with a face-to-face conversation to gain a thorough understanding of your city, internal controls, processes and procedures. Our experience with cities like yours allows us to develop a customized audit and communications plan. We will prepare a timeline detailing significant steps in the audit process from beginning to end. AUDIT STRATEGY DESIGN Your city is unique and therefore your audit plan will be tailored to your operations and will include the relevant and appropriate standards. Our audit strategy is based off our understanding of your city. It will also encompass: •Leadership concerns and expectations •Risk assessment •Understanding your internal controls •Testing AUDIT PLAN EXECUTION Our execution of your audit strategy begins with fieldwork and ends with a presentation of your draft financial statements. Our team, including partners and managers, will be present during fieldwork and we’ll be in continuous communication with your staff. Fieldwork is where we document internal controls, conduct walk throughs, and obtain audit evidence to support financial statement amounts and disclosures. Our paperless audit approach allows us to do much of the fieldwork from our office. We will discuss your preference for the amount of onsite work and agree on a mutually beneficial schedule. During fieldwork we will discuss any potential audit adjustments with your staff to ensure we agree on the need for the audit adjustment and amount. We will also discuss any potential internal control deficiencies to verify our understanding and discuss potential solutions. We want to be problem solvers, not problem reporters. After reviewing the financial statements, notes and supplementary schedules, if any, we prepare a draft of the financial statements for your review and approval. We will also send a list of audit adjustments noting the reasons for each adjustment. 158 7 Audit Approach Continued AUDIT COMPLETION After the previous segments mentioned are complete, we will be ready to finalize the audit. We will report results of your audit to the City Council. We will also deliver a executive governance summary that identifies critical financial trends and recommendations for improvement, provides required communications, and discusses changes in the environment in which your city operates. During this stage we will also complete the following procedures: •Complete subsequent events review procedures and review legal and representation letters •Complete final overall analytical review procedures •Communicate significant deficiencies and material weaknesses •Conduct exit conference •Issue an audit opinion 159 Additional Approach Details Analytical Procedures Analytical procedures are defined in Statement on Auditing Standards No. 56, “Analytical Procedures” as evaluations of financial information made by a study of plausible relationships around both financial and non-financial data. They are required in the planning and final review stage, but our firm encourages staff to use analytical procedures where possible. Our firm management directs the use of analytical procedures as follows: •Planning |The objective for analytical procedures at this stage is to direct attention to likely misstatements. We use trend analysis to meet our objective in planning. Examples of trend analysis would be a comparison to the budget for funds that adopt a budget and/or comparison to prior year. We also may consider a comparison among three to five years. Additional testing may result if the expectations established at the start of the trend analysis are not met. •Substantive Testing |The objective of analytical procedures at this stage is to support or refute financial statement account balances. We have found that analytical procedures are more efficient and can be more effective than tests of details. Depending on the make-up of the account, we will use trend analysis, ratio analysis and/or modeling. •Final Review |The objective is to review the reasonableness of financial statement account balances. We use trend analysis to meet our objectives. This trend analysis is completed on final audited amounts. Approach to be Taken to Gain and Document an Understanding of the City's Internal Control Structure Our goal in preliminary fieldwork is to gain a thorough understanding of your internal controls, processes, and procedures. The completion of these elements allows us to minimize the fieldwork required to complete the audit. Approach to be Taken in Determining Laws and Regulations Subject to Audit Test Work We are required to obtain an understanding of the possible financial statement effect of laws and regulations that have a direct and material effect on the determination of financial statement amounts. The determination of laws and regulations are addressed in the planning stage through reading available grant documentation, client inquiries, and a preliminary review of finance system accounts and search of the City Council minutes. We also have a working knowledge of the types of laws and regulations Minnesota governments operate under. Further discussion is provided in the section Firm Qualifications and Experience. In addition, we obtain further information about federal laws and regulations through the Catalog of Federal Domestic Assistance (CFDA) and the U.S. Office of Management and Budget (OMB) Compliance Supplement. Approach to be Taken in Drawing Audit Samples for Purposes of Tests of Compliance Since each program or grant agreement is different, we use a variety of statistical designs in our compliance testing. The size of the sample considers many program factors; size, maturity, complexity, level of oversight and prior audit findings. Ultimately, our professional judgment determines that a representative number of transactions have been selected. You can be confident in our judgment because only senior level (par tner, manager, and supervisor) staff makes decisions on planned compliance testing. Identification of Anticipated Potential Audit Problems At this time, we do not anticipate any potential audit problems. If problems did arise, we carefully work with the City to resolve the matter. 88 160 We believe technology should enhance our service offerings, making our work less intrusive, our time with you more productive and everyone’s data more secure. The use of technology in our audit services enables us to streamline our processes and helps to automate certain functions of our work so we are able to spend more time analyzing our results and working directly with you. Through the outbreak of COVID-19, our team has been able to seamlessly move to a completely remote work environment with no loss of productivity, cooperation, or communication. Since March 17, 2020, our staff has been successfully conducting remote audit services using the latest video conferencing and secure file sharing technology. Through Zoom, Microsoft Teams, or whatever technology your city may use, our team will continue to work through normal procedures, including regular meetings with you during the planning/fieldwork phase to ensure effective collaboration with your team. We take the security of our client's data - and our own - very seriously. A number of systems are in place to ensure the safety of your city’s data. We operate on a remote distributed infrastructure leveraging Microsoft’s Cloud Platform Azure. This not only allows our staff to securely work from any computer, anywhere, any time, but also provides large- scale, cutting-edge technology and security for your data. Your data is housed in secure data centers that reside exclusively in the U.S. and not on laptops or local servers which could be stolen or misplaced. We continually provide security awareness training to our staff members to ensure they are good digital stewards of your data. In addition to this, we also consult bi annually with 3rd party security exper ts to conduct risk assessments and conduct annual penetration tests. IT ALSO MEANS: All firm staff use dual authentication to ensure that every login to our remote environment is secure and authorized. 9 Technology All data is saved on redundant servers and data centers so if one server fails, another immediately takes over with no data lost. All data is backed up continually which means we always have an extra copy for safe-keeping. All incoming emails, attachments, and embedded links are scanned for viruses prior to landing in our inbox, which allows us to operate with more protection from phishing emails, malware attacks, and other digital threats. Our cloud platform, Azure, is globally trusted by companies and governments and has numerous security compliance standard they adhere to. Reports of these can be provided as requested. 161 DECEMBER Client Understanding: Together, we mutually agree with management on a timeline to perform the audit. Service Timeline We prepare a timeline each year for our audits. Timelines are based on when organizations are able to complete their necessary year- end work. Please see below for an anticipated timeline that identifies what you can expect, and when. Once hired we will work with you on an exact timeline that fits your needs. This is an example of a typical timeline. Additionally, the table below outlines our proposed segmentation of the engagement. JANUARY Planning & Interim Fieldwork We will select our sample and provide information requests to management. We estimate the planning and interim fieldwork taking one day. 10 APRIL Year-end Audit & Fieldwork We anticipate conducting the audit with a hybrid approach, including 2-3 days on-site. JUNE Reporting We will provide draft reports by June 1st and meet with key management, followed by a report presented to the City Council 162 Value Our fees are based upon the experience and level of the individuals to be assigned to perform the work from $200 - $475 per hour. Fees are also based on the assumption that you will be assisting us whenever possible with suppor ting documentation. We will agree to a detailed plan and prepare a list of requested schedules upon proposal acceptance. We do not believe in charging for phone calls, emails, or routine communications. Instead, we encourage clients to call us for questions, advice, or just update us on what is happening in their city throughout the year. We want to be a resource for you – without any worry about whether or not the meter is running. If our communications identify additional service needs, we’ll discuss these needs with you and provide an additional fee range as needed. We also tailor our billing policies to the desires of our clients, so we welcome you to discuss any specific needs with our team upon acceptance of this proposal. We have not anticipated any additional hours for new audit or accounting standards. Accounting or audit standard changes may result in increased hours. Additional value information can be found in the separate cost proposal. 11 163 CLIENT REFERENCES One of the things we enjoy most about our work is developing long-term relationships with our clients and watching their city thrive as we help them to evolve and grow. Our clients listed below serve as a sample of references of those we partner with for their audit services. Additional references are available upon request. What Our Clients Say CITY OF SHOREWOOD Joe Rigdon Finance Director P 952.960.7905 170 Audit Hours GFOA Certificate CITY OF SHAKOPEE Nathan Reinhardt Finance Director P 952.233.9326 220 Audit Hours GFOA Certificate CITY OF CARVER Lynn Tschudi Finance Director P 925.448.8744 190 Audit Hours 12 "Abdo has been valued service providers and a fantastic resource to the City of Red Wing over the past 10 years. City leadership views Abdo not only as our auditors but as trusted and capable financial advisors and educators. They are staffed with experienced personnel who provide consistent, timely, and excellent service. They have been instrumental in improving the City’s external financial reporting and assisting us in being awarded the GFOA’s Certificate of Excellence in Financial Reporting.The entire team at Abdo have been an integral part of our success at the City of Red Wing." CITY OF RED WING Marshall Hallock |Finance Director CITY OF HUTCHINSON Andy Reid Finance Director P 320.234.4244 200 Audit Hours GFOA Certificate CITY OF HOPKINS Nick Bishop Finance Director P 952.548.6630 320 Audit Hours CITY OF ALBERTVILLE Tina Lannes Finance Director P 763.497.3384 365 Audit Hours GFOA Certificate 164 Value-Added Services When you partner with Abdo, you get access to our entire catalog of services. Below is a selection of the additional solutions that we believe could be of great value to your city. If you have need of these services, please reach out to us so we can help! Our additional service offerings can be found at www.abdosolutions.com. ENTERPRISE RESOURCE PLANNING (ERP) ANALYSIS & IMPLEMENTATION When choosing an ERP system, the options are seemingly endless. How do you know which ERP system is best for your city? Abdo Financial Solutions can help.We can partner with you to design and implement an ERP system that fits your needs by: •Assisting with the RFP Process - We’ll define the technical specifications to include in your RFP and provide suppor t through the ERP vendor selection process. •Facilitating a Seamless Implementation - If needed, we can manage the organization-wide implementation of your ERP system in accordance with your budget and schedule. •Communicating Change - We’ll communicate with staff members to explain the “why” behind ERP and demonstrate how it will make their lives easier. To help staff members navigate new processes, we’ll provide training as needed. HR & PAYROLL SERVICES We help employers better support their most valuable resource...their people.Having clear and consistent HR practices that best suit the individuality of your city is key, even more so in today’s tight employment environment. And because the right policies are just as important, we lend our HR expertise to help you strategically plan for your future. We help cities with: •Employee management and development •Regulatory compliance •Benefits analysis and administration, including the Affordable Care Act (ACA) and workers’ compensation •HR/Payroll software implementation and management •Advisory services such as specialized labor cost analysis, compensation studies, and HR process development and implementation 13 165 14 LONG TERM PLANNING How will you fund your city’s Capital Improvement Plan?Part of establishing a capital improvement program is determining how to pay for it. Will you issue debt? Raise property taxes? Reorganize your capital budget? A long-term plan can help you answer these questions and more. Depending on your needs, our approach to long term planning may include: •Preparing projections to gauge future revenue streams •Conducting a debt management study •Reviewing reserve and fund balance policies •Implementing plans to achieve pay-as-you-go financing PROCESS SOLUTIONS “Because we’ve always done it that way” is an easy trap to fall into.But outdated processes or systems might not be delivering the best results and cause redundancies, unreliable outcomes, and frustrated staff. An ineffective process can become your Achilles' heel in a crisis. Our customized process improvement solutions will meet you where you are - and guide you to a better tomorrow. Our process solution services include: •Process Mapping Documentation -How do transactions and data flow through your city? •Abdo ProEval -Removing waste in your processes allows your team members to focus on what they were hired to do - and to spend more time on value-added initiatives. •Abdo ProEval - Kaizen -Does the project seem too large, or the change too overwhelming? The Kaizen approach is a pared - down version of our ProEval service. Instead of a full operational review, we’ll focus on one aspect of your operation •Software Inventory & Assessment -Including recommendations for increasing efficiency and, if possible, reducing software-related costs. STRATEGIC PLANNING We provide strategic planning in numerous areas to maximize and protect your city’s value. Areas include cash flow modeling and analysis, growth and profitability strategies, key employee incentives, management consulting as well as succession and exit planning strategies. Our accounting staff has the experience and diverse skills to help identify areas of interest and strategies to achieve desired goals. We strive to build a reliable and confidential relationship, and desire to become a trusted advisor that is accessible throughout the year with any planning needs that may arise. 166 15 167 16 168 Why Partner with Abdo “Listening to our clients’ needs, understanding their challenges, and adjusting how we work together is key to our partnership with the people we serve.” --Steve McDonald, CPA |Managing Partner LIGHTING THE PATH FORWARD In a world of ever-changing complexity, people need caring, empathetic and highly skilled professionals they can depend on to provide the right advice and solutions for them. Our clients seek growth and success, but also want security and confidence. For nearly 60 years, Abdo has provided insights for our clients to help them achieve their goals. That same innovative spirit is also what has earned us the title of being one of the top accounting firms in the Midwest. Abdo is a better firm today because of the efforts we made to support a culture driven by our core values of growth, relationships, and teamwork. With this foundation in place, we have successfully helped our clients identify and break through their own growth barriers. Every challenge they face is an opportunity for us to listen, understand and empower them with solutions and a plan to achieve their goals. It’s fulfilling to serve as the catalyst that helps them overcome obstacles that block their progress. When it comes to our working relationships, we are partners. We’re confidants. We’re the catalyst that sparks true business growth, providing guidance through every challenge and opportunity along the way. ABOUT ABDO Abdo is a full-service accounting and consulting firm that delivers customized strategies and innovative solutions to help businesses, governments and nonprofits succeed. With more than 180 professionals and nearly six decades of experience, Abdo is ranked as one of the top accounting firms in the Midwest. It is a licensed CPA firm with offices located in Minneapolis and Mankato, Minnesota, and Scottsdale, AZ. Abdo’s commitment to its clients is to gain in- depth knowledge of their unique challenges, opportunities, and needs. Through this consultative approach, Abdo partners with organization leaders to light the path forward to confidently reach their goals. 17 169 License & Independence LICENSED TO PRACTICE IN MINNESOTA Abdo (the Firm) and its entire CPA staff hold licenses to practice in the state of Minnesota. All licenses are in good standing. The Firm and several partners and staff are licensed in other states and also are in good standing. The Firm’s CPAs are all members in good standing with the Minnesota Society of CPAs and the AICPA. Our professional staff and membership in professional associations indicates that the services we provide to your city will be of the highest quality. INDEPENDENCE Our standards require that we be without bias with respect to your operations. The Firm is independent of City of Chanhassen as defined by auditing standards generally accepted in the United States of America. The Firm is a member of the American Institute of Certified Public Accountants Division of Firms and has received an unmodified opinion on its Peer Review, a copy of which is attached to this proposal in Appendix B. Our Peer Review was completed in 2020 and resulted in a pass rating. The Firm has not had any federal or state desk reviews or field reviews of its audits in the last three years. We have had no disciplinary action taken or pending against the Firm during the past three years with state regulatory bodies or professional organizations. We maintain library facilities which include current professional literature and specific information for the industries that we serve. The Firm library is also reviewed as part of the external quality review program. The Firm has in-house training programs specific to the industries we serve in order to maintain a knowledge-base relevant to our unique clients. We also perform auditing and accounting updates for our clients that are organized by our staff. These practices ensure the quality of our staff over the term of engagement. 18 170 Appendix A PROPOSER GUARANTEES & WARRANTIES 19 171 Proposer Guarantees & Warranties 1.Proposer warrants that it is willing and able to comply with State of Minnesota Laws with respect to foreign (non-State of Minnesota) corporations. 2.Proposer warrants that it is willing and able to obtain an “errors and omissions” insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. 3.Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the Chanhassen, City of, located in Chanhassen,. 4.Proposer certifies that it can and will provide and make available at a minimum, all services set forth in Section II, Nature of Services Required. 5.Proposer warrants that all information provided in this proposal is true and accurate. Signature of Official: Name:Andrew Berg, CPA Title:Partner Firm:Abdo Date:August 24, 2023 20 172 Appendix B PEER REVIEW REPORT 21 173 22 174 23 175 Appendix C TEAM BIOS 24 176 Andy Berg CPA Government Partner andrew.berg@abdosolutions.com Direct Line 952.715.3003 Andy joined the Firm in 1994 after graduating Cum Laude from Gustavus Adolphus College. He is registered and licensed to practice as a CPA in Minnesota. His experience includes auditing municipalities, school districts, and nonprofits under government auditing standards and single audits under Uniform Guidance. He stays current on issues affecting his clients by staying involved in several industry organizations. He par ticipates on the special review committee for the Government Finance Officers Association. This committee reviews reports for acceptance into the Certificate of Achievement for Excellence in Financial Reporting program. EDUCATION •Bachelor of Science in Accounting, Gustavus Adolphus College ◦Graduated Cum Laude •Continuing professional education as required by the AICPA and U.S. Government Accountability Office PROFESSIONAL MEMBERSHIPS •American Institute of Certified Public Accountants •Minnesota Society of Certified Public Accountants •Minnesota Government Finance Officers Association •Minnesota Association of School Business Officials •Government Finance Officers Association QUALIFICATIONS •28 years of experience auditing local governments and schools in Minnesota •Over 95 percent of billable time related to governmental clients •Participates on the special review committee for the Government Finance Officers Association (GFOA). This committee reviews reports for acceptance into the Certificate of Achievement of Excellence in Financial Reporting program •Experienced in municipal government long term financial plans •Previous MN GFOA presenter on GASB Update and ACFR review •Previous MNCPA City Report Review Committee TEAM MEMBER BIO abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 25 177 26 178 Tom Olinger CPA Government Partner thomas.olinger@abdosolutions.com Direct Line 507.304.6802 Tom joined the Firm in 1995 after graduating from Minnesota State University,Mankato with a B.S. Degree in Accounting. He oversees many of the Mankato office’s municipal, fire relief, and school district audit engagements as well as Single Audit and nonprofit audits. EDUCATION •Bachelor of Science in Accounting, Minnesota State University, Mankato •Continuing professional education as required by the AICPA and U.S. Government Accountability Office PROFESSIONAL MEMBERSHIPS •American Institute of Certified Public Accountants •Minnesota Society of Certified Public Accountants •Minnesota Government Finance Officers Association QUALIFICATIONS •25 years of experience auditing local governments and schools in Minnesota •Over 90 percent of billable time relates to governmental clients •Experience in municipal long-term financial plans and utility rate studies TEAM MEMBER BIO abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 27 179 28 180 Tyler See CPA Manager tyler.see@abdosolutions.com Direct Line 952.939.3230 Tyler joined the firm in 2017 after completing his Accounting degree from Minnesota State University, Mankato. He was a government audit intern in the 2017 audit season. Tyler works with a variety of local governments and schools in Minnesota providing annual audits. In addition to his expertise in annual auditing, Tyler is experienced in municipal long-term financial plans and utility rate studies. EDUCATION •Bachelor of Science in Accounting, Minnesota State University - Mankato ◦Graduated Cum Laude •Master of Accounting, Minnesota State University – Mankato •Continuing professional education as required by the AICPA and U.S. Government Accountability Office PROFESSIONAL MEMBERSHIPS •American Institute of Certified Public Accountants •Minnesota Society of Certified Public Accountants •Minnesota Government Finance Offier's Association QUALIFICATIONS •6 years of experience in auditing local governments and schools in Minnesota •Over 90 percent of billable time relates to governmental clients •Works extensively with Microsoft Office and several accounting software •Experienced in municipal government long-term financial plans and utility rate studies TEAM MEMBER BIO abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 29 181 30 182 Jill Knutson Associate jill.knutson@abdosolutions.com Direct Line 952.715.3034 Jill joined the Firm in 2022 after graduating from Benedictine College. Prior to joining Abdo full-time in 2022,Jill was a government intern during the 2020 city audit season and 2021 school audit season. EDUCATION •Bachelor of Arts in Accounting and Finance, Benedictine College ◦Graduated Summa Cum Laude •Continuing professional education as required by the AICPA and U.S. Government Accountability Office QUALIFICATIONS •2 years of experience auditing local governments and schools in Minnesota •Over 90 percent of billable time relates to governmental clients •Works extensively with Microsoft Office and several accounting software TEAM MEMBER BIO abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ CPA 31 183 32 184 John Stachel Associate john.stachel@abdosolutions.com Direct Line 952.939.3212 John joined the Firm as an intern in our government department in 2021, while completing his Bachelor’s Degree from Minnesota State University, Mankato. John has completed two internships with Abdo, working with various cities and schools across Minnesota. In Fall 2022,John joined the Firm full-time as an Associate. EDUCATION •Bachelor of Science in Accounting, Minnesota State University - Mankato ◦Graduated Magna Cum Laude •Continuing professional education as required by the AICPA and U.S. Government Accountability Office QUALIFICATIONS •2 years of experience auditing local government and schools in Minnesota •90 percent of billable time relates to governmental clients TEAM MEMBER BIO abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 33 185 34 186 Cierra Nagovsky Associate cierra.nagovsky@abdosolutions.com Direct Line 952.449.6234 Cierra joined the Firm in 2023 after graduating from the University of St. Thomas. Prior to joining Abdo full-time in 2023,she was a government intern during the 2022 city and school audit seasons. EDUCATION •Bachelor of Science in Accounting, University of St. Thomas •Continuing professional education as required by the AICPA and U.S. Government Accountability Office QUALIFICATIONS •1 year of experience auditing local governments and schools in Minnesota •Over 90 percent of billable time relates to governmental clients TEAM MEMBER BIO abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 35 187 36 188 Kimberly Dauer Senior Associate kimberly.dauer@abdosolutions.com Direct Line 507.304.6842 Kimberly joined the firm in 2011 as a Senior Associate. She specializes in working on the governmental audits of the Firm’s fire reliefs as well as gambling compliance audits. During her time with Abdo, she has also worked on the preparation of business and nonprofit tax returns, compilations and audits, payroll processing and QuickBooks consulting. EDUCATION •Hennepin Technical College, Accounting •Continuing professional education AFFILIATIONS •Graduate of Elizabeth Kearney Women's Leadership Program - YWCA Mankato QUALIFICATIONS •20+ years of payroll processing experience •6 years of experience auditing fire relief in Minnesota •6 years of experience performing gambling compliance audits in Minnesota •QuickBooks ProAdvisor TEAM MEMBER BIO abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 37 189 Andrew Berg, CPA Partner | Abdo andrew.berg@abdosolutions.com P 952.715.3033 Cost Proposal for 7700 Market Blvd, PO Box 147 Chanhassen, Minnesota 55317 City of Chanhassen abdosolutions.com | Edina, MN -Mankato, MN -Scottsdale, AZAugust 23, 2023 190 2 CITY AUDIT –2023 Hours Standard Hourly Rate Proposed Hourly Rate Total Partners 20 $475 $275 $5,500 Manager 50 350 190 9,500 Staff 220 200 125 27,500 Other (Administration)10 120 100 1,000 Total –City Audit 300 $43,500 SINGLE AUDIT (IF NEEDED) –2023 Hours Average Rate Total Firm Staff 25 $220 $5,500 SUMMARY SCHEDULE 2023 –2027 Fiscal Year Ending December 31, ACFR Total All-Inclusive Maximum Price Single Audit Cost (f required) 2023 $43,500 $5,500 2024 46,000 5,775 2025 48,000 6,050 2026 49,500 6,325 2027 51,000 6,600 Total $238,000 $30,250 Schedule of Professional Fees and Expenses for the Audits of the 2023 –2027 Financial Statements for the City of Chanhassen 191 3 CITY AUDIT –2023 Hours Standard Hourly Rate Proposed Hourly Rate Total Partner(s)4 $475 $275 $1,100 Senior Associate 43 220 200 8,600 Other Administrative 3 120 100 300 Total –CFRA Audit 50 $10,000 IRS 990, if needed $2,500 SUMMARY SCHEDULE 2023 –2027 Fiscal Year Ending December 31, Audit Total All-Inclusive Maximum Price IRS 990 (f required) 2023 $10,000 $2,500 2024 10,500 2,625 2025 11,000 2,750 2026 11,500 2,875 2027 12,000 3,000 Total $55,000 $13,750 Schedule of Professional Fees and Expenses for the Audits of the 2023 –2027 Financial Statements for the Chanhassen Fire Relief Association 192 September 29, 2023 Management, Honorable Mayor and City Council City of Chanhassen Chanhassen, Minnesota We are pleased to confirm our understanding of the services we are to provide the City of Chanhassen (the City) for the year ended December 31, 2023. Audit Scope and Objectives We will audit the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information, and the disclosures, which collectively comprise the basic financial statements of the City as of and for the year ended December 31, 2023. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the City’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City’s RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. The following RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited: • Management’s Discussion and Analysis • Schedule of Funding Progress, Employer's Share of Net Pension Liability and Employer's Contributions • Schedule of OPEB Liability, Related Ratios and City Contribution • Budgetary Comparison Schedule - General Fund We have also been engaged to report on supplementary information other than RSI that accompanies the City’s financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial sta tements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on it in relation to the financial statements as a whole, in a report combined with our auditor’s report on the financial statements: • Combining and Individual Fund Financial Statements and Schedules • Summary Financial Report - Revenues and Expenditures for General Operations - Governmental Funds DRAFT 193 September 29, 2023 Page 2 In connection with our audit of the basic financial statements, we will read the following other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are requ ired to describe it in our report. The Statistical Section is required to be presented when a Annual Comprehensive Financial Report (ACFR) is issued. • Introductory Section • Statistical Section • Other Information - Unaudited The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; issue an auditor’s report that includes our opinion about whether your financial statements are fairly presented in all material respects, in conformity with GAAP, and report on the fairness of the supplementary information referred to in the second parag raph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would inf luence the judgment of a reasonable user made based on the financial statements. The objectives also include reporting on internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, nonco mpliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. Auditor’s Responsibilities for the Audit of the Financial Statements We will conduct our audit in accordance with GAAS and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of your accounting records of the City and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, includin g the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. DRAFT 194 September 29, 2023 Page 3 We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of certain assets, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected customers, funding sources, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement. We have identified the following significant risk(s) of material misstatement as part of our audit planning, however, it should be noted that our planning procedures are not concluded and therefore additions or modifications may be made to the below significant risks: • Management Override of Controls • Improper Revenue Recognition We may, from time to time, and depending on the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third -party service provider. Furthermore, we will remain responsible for the work provided by any such th ird-party service providers. Our audit of financial statements does not relieve you of your responsibilities. Audit Procedures - Internal Control We will obtain an understanding of the government and its environment, including the system of internal sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional stand ards and Government Auditing Standards. Audit Procedures - Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. DRAFT 195 September 29, 2023 Page 4 Other Services We will prepare a general ledger trial balance for use during the audit. Our preparation of the trial balance wi ll be limited to formatting information in the general ledger into a working trial balance. As part of the audit, we will assist with preparation of your financial statements and related notes. You will be required to acknowledge in the written representation letter our assistance with preparation of the financial statements and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. We will also assist with entries for full accrual basis of accounting for long-term assets, long-term liabilities, and related deferred inflows of resources, deferred outflows of resources, revenues and expenses from information provided by managment. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the manage ment representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. F urther, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Responsibilities of Management for the Financial Statements Our audit will be conducted on the basis that you acknowledge and understand your responsibility for designing, implementing, establishing and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, and for evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with accounting principles generally accepted in the United States of America, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for making drafts of financial statements, all financial records and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related party relationships and transactions , and other matters; (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial sta tements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by GAAS and Government Auditing Standards. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole. DRAFT 196 September 29, 2023 Page 5 You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the City received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, or contracts or grant agreements that we report. With regard to including the auditor’s report in an exempt offering document, you agree that the aforementioned auditor’s report, or reference to Abdo, will not be included in any such offering document without our prior permission or consent. Any agreement to perform work in connection with an exempt offering document, including an agreement to provide permission or consent, will be a separate engagement. You are responsible for the preparation of the supplementary information, which we have been engaged to report on, in conformity with accounting principles generally accepted in the United States of America (GAAP). You agree to include our report on the supplementary information in any document that contains and indicates that we have re ported on the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. With regard to publishing the financial statements on your website, management understands that websites are a means of distributing information and, therefore, we are not required to read the information contained in those sites or to consider the consistency of other information on the website with the original document. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. You are also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. We will provide electronic copies of our reports to the City; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. DRAFT 197 September 29, 2023 Page 6 The audit documentation for this engagement is the property of Abdo and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individual s will be made available upon request and in a timely manner to any Regulator or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for the purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Abdo personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of seven years after the report release date or for any additional period requested by the Regulator. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Andrew K. Berg, CPA is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. We expect to begin our audit in April, 2023, and to issue our reports no later than June 30, 2024. Our fee for these services will be as follows: Audit $ 43,500 In an effort to reduce environmental impact, you will receive printable, downloadable PDFs of your report. To receive one (1) paper report, you will be charged $150 for a set -up fee. Additional paper copies will be charged at the rate of $50 per report. You may also be billed for travel and other out-of-pocket costs such as report production, typing, postage, etc. if not included in the fee listed above. The fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will discuss it with you and arrive at a new fee before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Amounts not paid within 30 days from the invoice date will be subject to a late payment charge of .66 percent per month (8 percent per year). If for any reason the account is turned over to collections, additional fees will be added to cover collections cost. In accordance with our Firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Except in the event of your failure to make a payment when due, in the event of a dispute related in any way to our services, our Firm and you agree to discuss the dispute and, if necessary, to promptly mediate in a good faith effort to resolve. We will agree on a mediator, but if we cannot, either of us may apply to a court having personal jurisdiction over the parties for appointment of a mediator. We will share the mediator’s fees and expenses equally, but otherwise will bear our own attorneys’ fees and mediation cost. Participation in such mediation shall be a condition to either of us initiating litigation. In order to allow time for the mediation, any applicable statute of limitations shall be tolled for a period not to exceed 120 days from the date either of us first requests in writing to mediate the dispute. The mediation shall be confidential in all respects, as allowed or required by law, except our final settlement positions at mediation shall be admissible in litigation solely to determine the prevailing party’s identify for purposes of the award of attorneys’ fees. I n the event you fail to make a payment for services or to reimburse for costs advanced by the Firm on your behalf, the Firm reserves the right to take all legally permissible action, including commencement of litigation in lieu of mediation, and shall have the right to collect its costs, including reasonable attorney’s fees, incur red in any such collection or litigation activities. DRAFT 198 September 29, 2023 Page 7 Should the City of Chanhassen desire to employ the Firm’s partner(s) or employee(s) involved in the performance of any audit, review or attest service for or relating t o the City at any time during the then current fiscal year of the City up to and including the date of the audit report for that year, or in the twelve months preceding the audit report d ate for the immediately preceding year, it must have the written consent of the Firm to enter into an employment contract with the Firm partner or employee. Should the Firm agree to such arrangement, the agreement will include a payment equal to 200% of the partner or employee’s current annual salary. Professional and certain regulatory standards require us to be independent, in both fact and appearance, with respect to the City in the performance of our services. The City shall not, during the term of this agreement and for the twelve months following its termination for any reason, without the prior written consent of the Firm, solicit for employment, or hire any current or former partner or professional employee of the Firm, or any affiliate thereof, if such partner or professional employee has been involved in the performance of any audit, review or attest service for or relating to the City at any time during the then current fiscal year of the City up to and including the date of the audit report for that year, or in the twelve months preceding the audit report date for the immediately preceding year. In connection with this engagement, we may communicate with you or others via email transmission. As emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails transmitted by us in connection with the performance of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of email transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information. We have the right to withdraw from this engagement, at our discretion, if you do not provide us with any information we request in a timely manner; refuse to cooperate with our reasonable requests or misrepresent any facts; we have reason to believe you may have engaged, or may be planning to engage, in conduct that is unethical and/or unlawful; you engage in conduct directed toward or affecting firm personnel that is disrespectful, inappropriate, and/or potentially unlawful; or we determine that continuing the engagement is not in the best interests of the firm or threatens legal or reputational harm to the firm. In the event of withdrawal under any of these circumstances, such withdrawal will release us from any obligation to complete your report and will constitute completion of our engagement. Reporting We will issue a written report upon completion of our audit of the City’s financial statements. Our report will be addressed to the Management, Honorable Mayor and City Council of the City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinion s, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor’s report, or if necessary, withdraw from this engagement. If our opinion s are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement. DRAFT 199 September 29, 2023 Page 8 We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph will state (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. The report will also state that the report is not suitable for any other purpose. If during our audit we become aware that the City is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Government Auditing Standards require that we provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2020 Peer Review Report accompanies this letter. We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agr ee with the terms of our engagement as described in this letter, please electronically sign this letter. Sincerely, Abdo RESPONSE: This letter correctly sets forth the understanding of the City of Chanhassen. By: Title: DRAFT 200 DRAFT 201 DRAFT 202 City Council Item October 9, 2023 Item Approve Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District for work related to 2023 Trail Rehabilitation Project File No.ENG: 2023 Trail Improvement Project #23-09 Item No: D.8 Agenda Section CONSENT AGENDA Prepared By Joe Seidl, Water Resources Engineer Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council approves entering into a Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District related to the 2023 Trail Rehabilitation Project." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY Consider approving the Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District as part of the 2023 Trail Improvement Project #23-09. A signed Maintenance Agreement is required by the Watershed District to obtain necessary construction permits. BACKGROUND The Maintenance Agreement acts to preserve wetland areas by ensuring that wetland buffers are marked with permanent markers and native vegetation is allowed to grow. The agreement allows for periodic maintenance of the wetland buffer areas to remove nuisance trees and invasive species but prohibits regular mowing. The agreement also restricts the placement of structures and fill/debris within the wetland buffer areas. DISCUSSION 203 BUDGET N/A RECOMMENDATION Staff recommends approving the Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District. ATTACHMENTS Riley Purgatory Bluff Creek Watershed District Maintenance Agreement 204 1 MAINTENANCE AGREEMENT Between the Riley Purgatory Bluff Creek Watershed District and The City of Chanhassen This Maintenance Agreement (Agreement) is made by and between the Riley Purgatory Bluff Creek Watershed District, a watershed district with purposes and powers set forth at Minnesota Statutes chapters 103B and 103D (RPBCWD), and the City of Chanhassen a statutory city and body corporate and politic of the State of Minnesota (City). Recitals and Statement of Purpose WHEREAS pursuant to Minnesota Statutes section 103D.345, the RPBCWD has adopted and implements the Wetland and Creek Buffers Rule, the Waterbody Crossings and Structures Rule and the Stormwater Management Rule; WHEREAS under the Wetland and Creek Buffers Rule, certain land development activity triggers the requirement that the landowner record a declaration establishing the landowner’s perpetual obligation to protect undisturbed buffer adjacent to a creek or wetland; WHEREAS in each case, a public landowner, as an alternative to a recorded instrument, may meet the maintenance requirement by documenting its obligations in an unrecorded written agreement with the RPBCWD; WHEREAS in accordance with the RPBCWD rules and as a condition of permit 23- 044, the City’s perpetual obligation to maintain wetland buffer must be memorialized in a maintenance agreement specifying requirements and restrictions; WHEREAS City and the RPBCWD execute this Agreement to fulfill the condition of permit no. 23-044, and concur that it is binding and rests on mutual valuable consideration; THEREFORE City and RPBCWD agree as follows that City, at its cost, will inspect and maintain the wetland buffer as shown in the site plan attached to and incorporated into this Agreement as Exhibits A1 and A2 in perpetuity as follows: 1. BUFFER AREAS 205 2 a. Buffer vegetation must not be cultivated, cropped, pastured, mowed, fertilized, subject to the placement of mulch or yard waste, or otherwise disturbed, except for periodic cutting or burning that promotes the health of the buffer, actions to address disease or invasive species, mowing for purposes of public safety, temporary disturbance for placement or repair of buried utilities, or other actions to maintain or improve buffer quality and performance, each as approved by the District in advance in writing or when implemented pursuant to a written maintenance plan approved by the District. b. Diseased, noxious, invasive or otherwise hazardous trees or vegetation may be selectively removed from buffer areas and trees may be selectively pruned to maintain health. c. Pesticides and herbicides may be used in accordance with Minnesota Department of Agriculture rules and guidelines. d. No fill, debris or other material will be placed within a buffer. e. No structure or impervious cover (hard surface) may be created within a buffer area beyond that shown in the scaled site plan attached to this declaration as Exhibits A1 and A2. f. Permanent wetland buffer markers will be maintained in the locations shown on the approved site plan attached as Exhibits A1 and A2. Language shall indicate the purpose of the buffer, restrictions, and the name and website address of the Riley Purgatory Bluff Creek Watershed District. 2. Property Transfer. If City conveys into private ownership a fee interest in the property that is the subject of this Agreement, it shall require as a condition of sale, and enforce: (a) that the purchaser record a declaration on the property incorporating the maintenance requirements of this Agreement; and (b) that recordation occur either before any other encumbrance is recorded on the property or, if after, only as accompanied by a subordination and consent executed by the encumbrance holder ensuring that the declaration will run with the land in perpetuity. If City conveys into public ownership a fee interest in any property that has become subject to this Agreement, it shall require as a 206 3 condition of the purchase and sale agreement that the purchaser accept an assignment of all obligations vested under this Agreement. 3. This Agreement may be amended only in a writing signed by the parties. 4. The recitals are incorporated as a part of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. RILEY PURGATORY BLUFF CREEK WATERSHED DISTRICT By ___________________________________ Date: President, Board of Managers City of Chanhassen By: _______________________________ Date: Its Mayor By: _______________________________ Date: Its City Manager 207 DNR PUBLIC WETLAND 10-210OHWL = 931.2 (PER DNR, DATUM NGVD 29)100-YEAR FLOOD ELEVATION = 934.8 (PROVIDED BY RPBCWD)GALPIN BLVD2.650CBRim=944.11Inv=948.6115" RCPFESInv=935.57CBRim=934.73Inv=919.7315" HDPEFESInv=934.94121216161412812121214121288812121212121212888(Public Right of Way)BITUMINOUSBITUMINOUSSWWETLAND DELINEATION BOUNDARYEDGE OF WATER(SURVEYED ON 05-04-2023)PARCEL BOUNDARYFULL DEPTH REMOVALOF EXISTINGBITUMINOUS TRAIL941939938937936 944943942933935 (944.27)(944.44)940935935934.8934.8933.5933.5933.5(933.0)(933.0)(944.36)R32'R50'9.5%MAX 2:1 SLOPE2.0%2.0%TRANSITION TRAIL RUNNINGSLOPE AND CROSS SLOPE TOMATCH EXISTING EDGE OF TRAILTRANSITION TRAILRUNNING SLOPE TOMATCH EXISTING TRAILEXISTING TRAIL TO BEFULL-DEPTH RECLAIMED ANDPAVED FROM THIS POINTNORTH TO COULTER BLVD.DOUBLE ROW OF SILT FENCEADJACENT TO WETLAND60' AVERAGEWETLAND BUFFERZONE, TYP.EXCAVATE AREA AS SHOWNTO PROVIDE 26 CY OFFLOOD STORAGEEXIST. 934.8 CONTOURPROPOSED 934.8 CONTOURXXXX30' MINWETLAND BUFFERZONE, TYP.BUFFER RESTORATION AREALOCATED APPROXIMATELY 175'NORTH, SEE SHEET 5TAKE SPECIAL PRECAUTION TO PREVENT AND/ORMINIMIZE COMPACTION IN ALL GREENSPACEAREAS. GREENSPACE AREAS COMPACTED DURINGCONSTRUCTION SHALL BE DECOMPACTED PERESC NOTE 7 ON COVER SHEET.R1'R6'R1'LEGENDCALL BEFORE YOU DIG !MINNESOTA LAW REQUIRES EXCAVATORS TO NOTIFYTHE REGIONAL NOTIFICATION CENTER AT LEAST TWO(2) BUSINESS DAYS BUT NOT MORETHAN FOURTEEN (14) CALENDARDAYS PRIOR TO EXCAVATIONGOPHER STATEONE CALLwww.gopherstateonecall.org1-800-252-1166MinnesotaCONSTRUCTION PLAN4GALPIN BLVDSCALE IN FEET0102030SAWCUT / MATCHLINEREMOVE TREESILT FENCEINLET CONTROLSTREET SWEEPINGHYDRAULIC MULCH TYPE 4 WITH MNDOT SEED MIX 35-241AND 6" OF TOPSOIL (INSTALL ABOVE ELEVATION 934.8),INSTALL EROSION CONTROL BLANKET, CAT. 35 ON ALLSLOPES GREATER THAN 1V:4HHYDRAULIC MULCH TYPE 4 WITH MNDOT SEED MIX 33-262AND 6" OF TOPSOIL (INSTALL BELOW ELEVATION 934.8)*TOPSOIL SHALL CONTAIN AT LEAST 5% ORGANIC CONTENT.X838845.39(845.39)CONTOURSPOT ELEVATIONSPOT ELEVATION (MATCH EXISTING)DRAINAGE FLOW ARROWBITUMINOUS PAVEMENTBUFFER SIGN (INSTALLED BY CITY)SWDATEISSUES / REVISIONSNO.DESIGNDRAWNCHECKEDTRM AMPUSER: apawelk XREF(s): 23-013_X-CIV-SITE.dwg 23-013_X-CIV-GRAD.dwg 23-013_X-CIV-HATCH.dwg 23-013_X-CIV-EROS.dwg Wetland Line CAD.DWG 23-013_X-SURV.dwg 23-013_X-GEN-TBLK.dwg 23-013_X-CIV-LA.dwg CERT-ENG - AMP.dwgSCALE: 0 DATE/TIME: Aug 11, 2023 - 6:45pmFILE: P:\2023\23-013 - Chanhassen Trail - Walk Improvements\CAD\DWG\PLANSHEETS\CIVIL\23-013_CIV-CONSTRUCTION SITE.dwg LAYOUT: 003I hereby certify that this plan, specification or report wasprepared by me or under my direct supervision and that Iam a duly Licensed Professional Engineer under the lawsof the State of Minnesota.ADAM PAWELKLIC. NO.DATE:49990 07-21-23 TRAIL/WALK IMPROVEMENTSCHANHASSEN, MNHANSEN THORP PELLINEN OLSON,Inc.7510 Market Place Drive Eden Prairie, MN 55344952-829-0700 952-829-7806 faxPROJECT NO. 23-013OWNER NAME CITY OF CHANHASSENSHEETOF1807-21-23 TRM WATERSHED PERMIT SUBMITTAL1TRM AMP08-11-23 TRM WATERSHED PERMIT RE-SUBMITTAL2HORIZONTALSITE AREAPROPOSED DISTURBED AREA WITHIN 60' WETLAND BUFFER = 4,147 SF(EXCLUDES PROPOSED FLOOD ELEVATION EXCAVATION AREA)PROPOSED WETLAND BUFFER RESTORATION AREA = 9,857 SF(SEE SHEET 5)PROPOSED FILL BELOW WETLAND FLOOD ELEVATION (934.8) = 23 CYPROPOSED EXCAVATION FOR WETLAND FLOOD ELEVATION = 26 CY0.15 ac0.02 ac0.02 ac 208 BUFFER RESTORATION AREA,SEE NOTES 1-3PARCEL BOUNDARYDNR PUBLIC WETLAND 10-210OHWL = 931.2 (PER DNR, DATUM NGVD 29)100-YEAR FLOOD ELEVATION = 934.8 (PROVIDED BY RPBCWD)30' MINWETLAND BUFFERZONE, TYP.60' AVERAGEWETLAND BUFFERZONE, TYP.WETLAND DELINEATION BOUNDARYAPPROXIMATE LOCATIONOF EXISTING TRAILTAKE SPECIAL PRECAUTION TO PREVENT AND/OR MINIMIZECOMPACTION. AREAS COMPACTED DURING CONSTRUCTION SHALL BEDECOMPACTED PER ESC NOTE 7 ON COVER SHEET.LEGENDCALL BEFORE YOU DIG !MINNESOTA LAW REQUIRES EXCAVATORS TO NOTIFYTHE REGIONAL NOTIFICATION CENTER AT LEAST TWO(2) BUSINESS DAYS BUT NOT MORETHAN FOURTEEN (14) CALENDARDAYS PRIOR TO EXCAVATIONGOPHER STATEONE CALLwww.gopherstateonecall.org1-800-252-1166MinnesotaWETLAND BUFFER RESTORATION PLAN5GALPIN BLVDSCALE IN FEET0102030BUFFER RESTORATION AREABUFFER SIGN (INSTALLED BY CITY)DATEISSUES / REVISIONSNO.DESIGNDRAWNCHECKEDTRM AMPUSER: apawelk XREF(s): 23-013_X-CIV-SITE.dwg 23-013_X-CIV-GRAD.dwg 23-013_X-CIV-HATCH.dwg 23-013_X-CIV-EROS.dwg Wetland Line CAD.DWG 23-013_X-SURV.dwg 23-013_X-GEN-TBLK.dwg 23-013_X-CIV-LA.dwg CERT-ENG - AMP.dwgSCALE: 0 DATE/TIME: Aug 11, 2023 - 6:45pmFILE: P:\2023\23-013 - Chanhassen Trail - Walk Improvements\CAD\DWG\PLANSHEETS\CIVIL\23-013_CIV-CONSTRUCTION SITE.dwg LAYOUT: 004I hereby certify that this plan, specification or report wasprepared by me or under my direct supervision and that Iam a duly Licensed Professional Engineer under the lawsof the State of Minnesota.ADAM PAWELKLIC. NO.DATE:49990 07-21-23 TRAIL/WALK IMPROVEMENTSCHANHASSEN, MNHANSEN THORP PELLINEN OLSON,Inc.7510 Market Place Drive Eden Prairie, MN 55344952-829-0700 952-829-7806 faxPROJECT NO. 23-013OWNER NAME CITY OF CHANHASSENSHEETOF1807-21-23 TRM WATERSHED PERMIT SUBMITTAL1TRM AMP08-11-23 TRM WATERSHED PERMIT RE-SUBMITTAL2HORIZONTALNOTES1. BUFFER RESTORATION AREA SHALL INCLUDE THE FOLLOWING:xHERBICIDE APPLICATIONxCOMMON BUCKTHORN REMOVAL AND TREATMENTxINVASIVE SPECIES REMOVAL AND TREATMENT2. HERBICIDES USED MUST BE REGISTERED WITH THE MINNESOTADEPARTMENT OF AGRICULTURE.3. HERBICIDES SHALL BE APPLIED BY A LICENSED COMMERCIALPESTICIDE APPLICATOR.SITE AREAPROPOSED WETLAND BUFFER RESTORATION AREA = 9,857 SF209 City Council Item October 9, 2023 Item Resolution 2023-XX: Accept $5,000 Donation from the Chanhassen Athletic Association File No.Item No: D.9 Agenda Section CONSENT AGENDA Prepared By Jerry Ruegemer, Park and Recreation Director Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts a resolution accepting a $5,000 donation from the Chanhassen Athletic Association." Motion Type N/A Strategic Priority N/A SUMMARY BACKGROUND The Chanhassen Athletic Association (CAA) is a parent/adult-led organization that has successfully administered youth sports programs within the community for over 50 years. The association has partnered with the city on many occasions to work towards improving local athletic facilities. These donations include the installation of scoreboards at Lake Susan Park and Lake Ann Park, dugout improvements at Lake Susan Park and Lake Ann Park, athletic lighting at Lake Susan Park, batting cage improvements at Lake Ann Park, and the remodeling of the Lake Ann ball field concession stand building. The CAA has also assisted with many field improvement projects with our athletic fields throughout the years. The CAA would like to make this donation to assist the city with the infield reconstruction project to 210 increase the quality of the playing field at the Lake Susan Park baseball field. This will provide a better participation experience for those individuals using the field. The city would like to recognize the CAA for their continued generosity throughout the past 50+ years. Chanhassen's athletic facilities have benefited greatly from their continued support. DISCUSSION Lake Susan Park was built in 1989 and is one of our busiest community parks in Chanhassen. Over the years, the Lake Susan Park baseball field has grown into a premier and desired field for local associations and other user groups. In the last five years, new amenities have been added to the field to provide the best user experience possible, including covered dugouts, LED ballfield lighting, and artificial turf batting cages. As these new features have been added to the facility, limited work has been done outside of normal maintenance of the field itself. After 30-plus years of use, the field was in need of repair. The base paths and infield edges have become built up, and with years of use, the ag lime has migrated beyond the infield areas while the grass continues to grow through, which creates a negative park user experience for base runners and fielders. Park Maintenance staff have taken measures to mitigate the effects and reduce the raised edges; however, the scope of work and equipment required to complete this project was greater than our current capabilities. Reconstructing the infield will ensure that the Lake Susan Park baseball field will continue to be a premier destination for our local associations and all other user groups At their August 14, 2023 meeting, the City Council approved the $29,300 quote provided by Magic Turf to reconstruct the infield at Lake Susan Park. Since then, Magic Turf completed the ball field project, and it will be ready for play in the spring of 2024. To help offset the cost of the infield improvement, the CAA would like to contribute $5,000 toward project expenditures. BUDGET RECOMMENDATION "The Chanhassen City Council adopts a resolution accepting a $5,000 donation from the Chanhassen Athletic Association." ATTACHMENTS Resolution 211 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: October 9, 2023 RESOLUTION NO:2023-XX MOTION BY: SECONDED BY: A RESOLUTION ACCEPTING A DONATION FROM CHANHASSEN ATHLETIC ASSOCIATION BE IT RESOLVED that the Chanhassen City Council herebyaccepts the $5,000 donation from the Chanhassen Athletic Association for contribution to a ball field reconstruction project at Lake Susan Park. BE IT FURTHER RESOLVED that city staff is hereby directed to prepare a letter to the Chanhassen Athletic Association thanking them for their contribution. PASSED AND ADOPTED by the Chanhassen City Council this 9 th day of October, 2023. ATTEST: Kim Meuwissen, City Clerk Elise Ryan, Mayor YES NO ABSENT 212 City Council Item October 9, 2023 Item Resolution 2023-XX: Approve Application of the Rotary Club of Lake Minnetonka-Excelsior to Conduct Off-Premise Lawful Gambling at North Coop Restaurant located at 2401 Highway 7 File No.Item No: D.10 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, Sr. Admin Support Specialist Reviewed By Kim Meuwissen SUGGESTED ACTION "The Chanhassen City Council adopts a resolution approving an application from Rotary Club of Lake Minnetonka-Excelsior to Conduct Off-Premise Lawful Gambling at North Coop Restaurant located at 2401 Highway 7." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY The Rotary Club of Lake Minnetonka-Excelsior has submitted a request for City Council approval to apply for a permit to conduct lawful gambling at North Coop Restaurant, located at 2401 Highway 7. BACKGROUND The Rotary Club of Lake Minnetonka - Excelsior is applying to the Minnesota Gambling Control Board (MGCB) for a license to conduct lawful gambling. An MGCB application requirement states the Rotary Club of Lake Minnetonka - Excelsior must attach a Gambling Premises Permit LG214 (LG214) application showing that they have secured a location to conduct lawful gambling. The City Council must first approve the LG214, and a resolution provided to submit with the application. 213 DISCUSSION The Rotary Club of Lake Minnetonka - Excelsior has submitted a Lawful Gambling Premise Permit request to the city along with the LG214 application and a copy of the Lease for Lawful Gambling Activity LG215 document showing they have received approval from North Coop restaurant to conduct lawful gambling on the premises. Gambling to be conducted includes paper and electronic pull tabs, and tipboards. Electronic games may only be conducted at a premise licensed for the on-sale of intoxicating liquor or the on-sale of 3.2% malt beverages. North Coop, LLC holds an on-sale intoxicating liquor license issued by the city. Per Chanhassen City Code Article10-V Gambling, specifically Section 10-153(b), each organization licensed to conduct gambling in the city shall complete the city's investigation form and submit any additional information required by the city. Law Enforcement conducted a background investigation, including criminal history, driving records, and outstanding warrants on the following officers of the Rotary Club of Lake Minnetonka-Excelsior, a Minnesota non-profit corporation: Mark Jeter, President Colleen Aldritt, Treasurer Mitchell Day, Secretary Terri Lenz, Gambling Manager Lt. Lance Pearce reviewed the background investigation reports and had no negative comments on any of the officers. BUDGET N/A RECOMMENDATION Staff recommends that the city council adopt a resolution approving the LG214 permit application from the Rotary Club of Lake Minnetonka-Excelsior to conduct off-premise lawful gambling at North Coop Restaurant, located at 2401 Highway 7. ATTACHMENTS Resolution Non-Profit Corporation Business Record Details City Application for Lawful Gambling Premise Permit Request LG214 Premises Permit Application LG215 Lease for Lawful Gambling Activity Restaurant Floor Plan Gambling Activity Location 214 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: October 9, 2023 RESOLUTION NO:2023-XX____ MOTION BY: SECONDED BY: RESOLUTION APPROVING A PREMISES PERMIT APPLICATION FROM THE ROTARY CLUB OF LAKE MINNETONKA-EXCELSIOR TO ALLOW LAWFUL GAMBLING AT NORTH COOP RESTAURANT WHEREAS,The Rotary Club of Lake Minnetonka-Excelsior, a Minnesota non-profit corporation located at 151 1 st Street, Excelsior, MN 55331, is applying for a lawful gambling license from the Minnesota Gambling Control Board; and WHEREAS, the Minnesota Gambling Control Board requires an approved lawful gambling premises permit to be attached to the lawful gambling license application; and WHEREAS, The Rotary Club of Lake Minnetonka-Excelsior, is applying for a premises permit to conduct lawful gambling at North Coop restaurant located at2401 Highway 7, Excelsior, MN 55331; and WHEREAS,The Rotary Club of Lake Minnetonka-Excelsior has entered into a lease with North Coop restaurant to conduct lawful gambling on the premises; and WHEREAS,the Minnesota Gambling Control Board requires a City Council resolution approving the premises permit application. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chanhassen, Minnesota, approves the application from The Rotary Club of Lake Minnetonka-Excelsior for a premises permit to allow lawful gambling at North Coop restaurant located at 2401 Highway 7; and that the City Clerk is hereby instructed to provide a copy of this Resolution to be included with the permit application to the Department of Gaming, Gambling Control Division, State of Minnesota. PASSED AND ADOPTED by the Chanhassen City Council this 9 th day of October 2023. ATTEST: Kim Meuwissen, City Clerk Elise Ryan, Mayor YES NO ABSENT 215 Filing History Business Record Details » Rotary Club of Lake Minnetonka - Excelsior, Inc. Minnesota Business Name Business Type Nonpro t Corporation (Domestic) MN Statute 317A File Number 927520800025 Home Jurisdiction Minnesota Filing Date 1/9/2017 Status Active / In Good Standing Renewal Due Date 12/31/2024 Registered Of ce Address 6359 Country Road Eden Prairie, MN 55346 USA Registered Agent(s) Karen Walkowski Mailing Address P.O. Box 368 Excelsior, MN 55331 United States President Jacob Sturgis PO Box 368 Excelsior, MN 55331 USA Filing History Select the item(s) you would like to order: Order Selected Copies 216 Filing Date Filing Effective Date 1/9/2017 Original Filing - Nonpro t Corporation (Domestic) (Business Name: Rotary Club of Lake Minnetonka - Excelsior, Inc.) 1/25/2023 Involuntary Dissolution - Nonpro t Corporation (Domestic) 4/18/2023 Annual Reinstatement - Nonpro t Corporation (Domestic) © 2023 Of ce of the Minnesota Secretary of State - Terms & Conditions The Of ce of the Secretary of State is an equal opportunity employer Subscribe for email updates! Vulnerability Disclosure 217 CITY OF CHANHASSEN Office of the City Clerk 7700 Market Boulevard - PO Box 1471 Chanhassen, MN 5531 7 952-227-1107 | 952-227-1110 (fax) clerk@chanhassenmn.gov www.chanhassenmn.gov LAWFUL GAMBLING PREMISE PERMIT REQUEST Guidance relating to Lawful Gambling is contained in the Chanhassen Citv Code. Chapter 10, Article V. All license holders are required to be familiar with the provisions of this Chapter and with applicable Minnesota Statutes and federal regulations. APPLICATION CHECKLIST: To prevent delay, please ensure the following information is submitted. lncomplete applications are not accepted and will be returned immediately, V La*tul Gambling Premise Request application lrl MN AGED Premises Permit Application (1G214) { Copig of the following: lease lor tawlul Gambling Activity form (1G215) V valid Organization License E/ Scale drawing of premise, showing where gambling activity is conducted z/ Completed Criminal History Background lnvestigation forms for all organization officers and gambling manager Name Address tDlb -!*E- * l-:,/ ,t:<.,'z-r.zi,,-'t Evr"s'<nZtn/)275 -6o4o 5;33 PhoneNumber ( tz/ 2 ) .*F= e E-mail Address Gamblinq Premise (Establishm nt) lnformation )v,>4 y'f-o'/42,-r)C/n Name of Establishment Address Contact Person -frn /o12 L,,,,,,^ Orqanization lnformation Name of Organization (as filed with the State of Minnesota z3,tr z3 Phone Number ( b/ Z't-92.r'--=,OZEe_ Address ?o ADI .t"l Minnesota Tax lD # 6366 9/b Federal Tax lD # "<-- ^ ?F7 ./ D OGambling License # /4,7 1 City of Chanhassen Lawful Gambling Premise Application Page 1 of 3 q *p+ 25 'c- Aoplicant lnformation (individual who executes and sions this aoolication) 218 Orqanization lnformation (continued) ln the table below, please provide the name and title or position of each officer of the organization, including the gambling manager: Officer Name Officer Title/Position zrE-F,,? frr-fP ./e;<, rzlt)f /,';t ./ E,/ s/ ,9t ;s,2, V fl7;4afi?,4-P ,?1 t ffi*/f)t 2)z tr 5.gr:,2.: z*-P|../ Has the organization been convicted of a violation of any state statute, state rule or city ordinance relating to gambling within the past three years? E ves 6" lf yes, attach a separate page, giving the following information for each conviction: 1) charge or offense, 2) date of arrest, 3) arresting agency, 4) date of conviction, 5) court name and location, 6) sentence. Has the organization or establishment where gambling will occur been convicted of a violation of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice and protection of public safety within the last three years? n ves Wd lf yes, attach a separate page, giving the following information for each conviction: 1) charge or offense, 2) date of arrest, 3) arresting agency, 4) date of conviction, 5) court name and location, 6) sentence. Does this organization currently conduct gambling in Chanhassen? n ves WC lf yes, pleaselistotherlocations: W-E .22 /Ot)Duef /4f ", ),/,4 ,?,2Du)3 ,,t/9 J4.?12 Gamblinq Manaqer lnformation Name fl:,2,?.t 1 2 Phone Number ( /4 Z) 23 7 --43' A 2 E-mailAddress City of Chanhassen Lawful Gambling Premise Application Page 2 of 3 a 219 d I understand that copies ol this organlzalion's Minnesota cambting Tax Rerurn musl be filed with the cily of Chanhassen Finance Director eii| ionth, atong with a check for i|yo of lhe organiza,ion's net profils derived . from Iawful gambling. fl I understand thal this organization must expend at teast 50 Percenl ot rts net pronts derived from lawful " -ga,ioiing on tawful purposes ioiducted oi toeated within the City or any municipatiay contiguou_s to lhe [ii-- iii toy" ""nitbuiion required above shatl be considered as paft of the 50 percent expendi'ure' The data in this application will be used to approve your request and shall be deemed pubhc unless prwata by state Statute. Private data s ava1aOte to you anrt ihe Ciyor State statf.who need this ln'ormalion to per'orm their duties but is no1 ivaitaOle to tne public. You are not legally required to provide lhrs data, but the City may not be able to approve your request f you do not provide it. I will familiarize myseff w[h lhe provrslons of the chanhassen city code, and with applkable M'nnesota Statutes and ilg; &ilti";;. itris acttvity wltt ue conducted rn compliance with the above regulalions. statutes and ordinances, "nar it " ,iO-"r."0 tnat tarture to oo somay conslitute g;ounds for denial, suspension or revocation of thas request. I declare that the information I have provided on this application ls truthful and I understand that falsitication of ;;;;;;; ;"-111';| "rptication will resuii in denial of the application. I authorize the Citv of Chanhassen to investigate ind mare whatev* inquirios necessary to verify the information provided' . i_- --Af,t :lnlant Sign,rt(rre'*--r/b4lrs Ofiicer Signature City ol Chanhasscn Lawful Gambling Premise Applrcalron Page 3 ol 3 220 MINNESOTA LAWFUL GAMBLING LG214 Premises Permit Application 6/15 Page 1 of 2 Annual Fee $15O (ron-nerunoeele) REQUIRED ATTACHMENTS TO LG214 1. If the premises is leased, attach a copy of your lease. Use LG215 Lease for Lawful Gambling Activity. 2. $150 annual premises permit fee, for each permit (non-refundable). Make check payable to "State of lrlinnesota." Mail the application and required attachments to: Minnesota Gambling Control Board 1711 West County Road B, Suite 300 South Roseville, MN 55113 Questions? Call 651-539-1900 and ask for Licensing ORGANIZATION INFORMATION Organization Name Rotary Club of Lake Minnetonka-Excelsior License Number: 94L72 Chief Executive Officer (CEO)Mark leter Daytime phone: 612-839-0000 Gambling Manager:Terri Lenz Daytime phone: 952-237-3302 GAMBLING PREMISES INFORMATION Current name of site where gambling will be conducted North Coop, LLC List any previous names for this location None Street address where premises is located 2401 Highway 7 (Do not use a P.O. box number or mailing address.) City: OR Township E-r=i-cl1anhaseD Zip Code 55331 Does your organization own the building where the gambling will be conducted? Yes r'No If no, attach LG215 Lease for Lawful Gambling Activity A lease is not required if only a raffle will be conducted. Is any other organization conducting gambling at this site?Yes r'No Don't know Note: Bar bingo can only be conducted at a site where another form of lawful gambling is being conducted by the applying organi- zation or another permitted organization. Electronic games can only be conducted at a site where paper pull-tabs are played. Has your organization previously conducted gambling at this site?r'No 't know GAMBLING BANK ACCOUNT INFORMATION; MUST BE IN MINNESOTA Bank Name Bridgewater Bank Bank Account Number:81073967 Bank Street Address:2445 Shadywood Rd.. Excelsior State: MN Zip 666s. 55331 ALL TEMPORARY AND PERMANENT OFF.SITE STORAGE SPACES Address (Do not use a P.O. box number) North Coop - 24OL Hy 7 City: Excelsior State: MN Zip Code 5s331 MN 5544tAdvance Record Mgt. 13700 Watertower Circle Plymouth MN I county: l.u*",. 221 LG214 Premises Permit Application 6/15 Page2ot2 ACKNOWLEDGMENT BY LOCAL UNIT OF GOVERNMENT: APPROVAL BY RESOLUTION (If none, attach meeting minutes.) Signature of City Personnel: Local unit of government must sign. Date Signed:Title City Name City of Chanhassen Date Approved by City Council Resolution Number CITY APPROVAL for a gambling premises located within city limits (If none, attach meeting minutes.) Signature of County Personnel: Complete below only if required by the county. On behalf of the township, I acknowledge that the organization is applying to conduct gambling activity within the township limits. (A township has no statutory authority to approve or deny an application, per Minnesota Statutes 349.2t3, Subd. 2.) Date Signed Date Signed County Jr16ms; carv€r Title: TOWNSHIP NAME Print Township Name Date Approved by County Board Resolution Number COUNTY APPROVAL for a gambling prcmises located in a township Signature of Township Officer: Title: ACKNOWLEDGMENT AND OATH 1. I hereby consent that local law enforcement officers, the Board or its agents, and the commissioners of revenue or public safety and their agents may enter and inspect the premises. 2. The Board and its agents, and the commissioners of revenue and public safety and their agents, are authorized to inspect the bank records of the gambling account whenever necessary to fulfill requirements of current gambling rules and law. 3. I have read this application and all information submitted to the Board is true, accurate, and complete 4. All required information has been fully disclosed. 8. Any changes in application information will be submitted to the Board no later than ten days after the change has taken effect. 9. I understand that failure to provide required information or providing false or misleading information may result in the denial or revocation of the license. 10. I understand the fee is non-refundable regardless of license ?3 (designee may not sign) the organization approval/denial. 6. I assume full responsibility for the fair and lawful operation of all activities to be conducted. 7. I will familiarize myself with the laws of Minnesota governing lawful gambling and rules of the Board and agree, if licensed, to abide by those laws and rules, including amendments to them. 5. I am the chief executive oata privaci yAice: The information requested on this form (and 9rr(y attachments) will be used by the Gamblingpontrol Board (Board) to determine your organization's qualifications to be involved in lawful gambling activities in Minnesota. Your organization has the right to refuse to supply the Information; however, if your organization refuses to supply this information, the Board may not be able to determine your organization's qualifications and, as a consequence, may refuse to issue a permit. If your organization supplies the information reguested, the Board will be able to process your organization's application. Your organization's name and address will be public information when received by the Board. All other information provided will be private data about your organization until the Board issues the permit. When the Board issues the permit, all information provided will become public. If the Board does not issue a permit, all information provided remains private, with the exception of your organization's name and address which will remain public. Private data about your organization are available to: Board members, Eoard staff whose work requires access to the information; Minnesota's Department of Public Safety, Attomey General, Commissioners of Administration, Minnesota Management & Budget, and Revenue; Legislative Auditor, national and international gambling regulatory agencies; anyone pursuant to court order; other individuals and agencies specifically authorized by state or federal law to have access to the information; individuals and agencies for which law or legal order authorizes a new use or sharing of information after this notice was given; and anyone with your written consent. This form will be made available in altemative format. i.e. large print, braille, upon request, An equal opportunity employer 222 LEASE INFORMATION Organization: Rotary Club of Lake Minnetonka - Excelsior License/Site Number: 94172 Daytime Phone: 952-237-3302 City: Excelsior State: Zip: Mn 55331PO Box 176 Address: Name of Leased Premises North Coop, LLC Street Address: 2401 Highway 7 City: Excelsior State: ZipzMN 55331 Daytime Phone: 612-916-0280 Name of Legal Owner: Roger and Shannon Burks Business/Street Address: 2401 Highway 7 City: Excelsior Daytime Phone: 612-916-0280 State: Mn zip: 55331 Name of Lessor (if same as legal owner, write "SAllE") Roger and Shannon Burks 2401 hiqhway 7 Address State: Zip: Mn 55331 Daytime Phone: 612-916-0280 City Excelsior r'New or amended lease. Effective date: Upon Approval Submit changes at least ten days before the effective date of the change, New owner. Effective date: _. Submit new lease within ten days after new lessor assumes ownership. Check applicable item CHECK ALL ACTMTY THAT WILL BE CONDUCTED (no lease required for raffles) ( r'r' f] et"a.onic Linked Bingo Electronic aames may only be conducted: 1. at a premises licensed for the on-sale of intoxicating liquor or the on-sale of 3.2o/o malt beverages; or 2. at a premises where bingo is conducted as the primary business and has a seating capacity of at least 100. Electronic Pull-TabsPull-Tabs (paper) f] ertt-ruos (paper) with dispensing device I eaootewneet fleaootewneelwithtable Bar Bingo [aingo Tipboards ALL GAllES, including electrcnic games: Monthly rent to be paid: 10 o/o, not to exceed 1O9o of gross profits for that month. . Total rent paid from all organizations for only booth operations at the leased premises may not excccd +!,?=? . . The rent cap does not include BAR OPERATION rent fior electronic games condi;ct€.i li i ii,: l.;:1, . BAR OPERATION: All sales of gambling equipment conducted by the lessor or lessor's employee. ELEGTROI{IC GA}IES: Monthly rent to be paid: 15 o/o, not to exceed 1596 of the gross profits fo:'th:t ::::tl .'::: :l::i:::l- ^"rr }s}r games and electronic linked bingo games. ALL OTHER GAMES: Monthly rent to be paid: 0 o/o, not to exceed 2O96 of gross profits from all other forms of lawful gambling. o If any booth sales conducted by a licensed organization at the premises, rent may not exceed 1O96 of gross profits for that month and is subject to booth operation +1,750 cap. BINGO RENT (for leased premises where bingo is the primary business conducted, such as bingo hall) Bingo rent is limited to one of the following: . Rent to be paid: NA o/o, flot to exceed loqb of the monthly gross profit from all lawful gambling actlvities held during bingc occasions, excluding bar bingo. - oR- persquare foot, not to exceed 110% ofa comparable cost persquare foot for leased space, as approved by the director of the Gambling Control Board. The lessor must attach documentation, verified by the organization, to confirm the comparable rate and all applicable costs to be paid by the organization to the lessor. = Rent may not be paid for bar bingo. = Bar bingo does not include bingo games linked to other permitted premises. o Rate to be paid: $NA LEASE TERMINATION CLAUSE (must be completed) The lease may be terminated by either party with a written 90 day notice. Other terms MINNESOTA I.AWFUL GAMBLING LG215 Lease for Lawful Gambling Activity 6/15 Page I of 2 PULL.TAB,AND PADDLEWHEEL RENT rent fo!. t':cth rrJ l+-- ^--l BOOTH OPERATION: Some or all sales of gambling equipment are conducted by an cmplc',':;'.':!'::'-::: :l: l::::::i l;:::::::.: :t the leased premises. 223 LG215 Lease for Lawful Gambling Activity 6115 Page2of2 Other Prohibitions: The lessor will not impose restrictions on the organization with respect to providers (distributor or linked bingo game provider) of gambling-related equipment and ser- vices or in the use of net profits for lawful purposes, The lessor, the lessor's immediate family, any person residing in the same residence as the lessor, and any agents or employees of the lessor will not require the organization to perform any action that would violate statute or rule. The lessor must not modifo or terminate this lease in whole or in part due to the lessor's violation of this provision. If there is a dispute as to whether a violation occurred, the lease will remain in effect pend- ing a final determination by the Compliance Review Group (CRG) of the Board. The lessor agrees to arbitration when a violation of this provision is alleged. The arbitrator shall be the CRG. Access to Permitted Premises: Consent is given to the Board and its agents, the commissioners of revenue and public safety and their agents, and law enforcement personnel to enter and inspect the permitted premises at any reasonable time during the business hours of the lessor. The organization has access to the premises during any time reasonable and when necessary for the conduct of lawful gambling. Lessor Records: The lessor must maintain a record of all money received from the organization, and make the record available to the Board and its agents, and the commissioners of revenue and public safety and their agents upon demand. The record must be maintained for 3-112 years. Rent All-Inclusive: Amounts paid as rent by the organization to the lessor are all-inclusive. No other services or expenses provided or contracted by the lessor may be paid by the organi- zation, including but not limited to: - trash removal - electricity, heat - snow removal - storage- janitorial and cleaning services - other utilities or services- lawn services - security, security monitoring - cost of any communication network or service required to conduct electronic pull-tabs games or electronic bingo - in the case of bar operations, cash shortages. Any other expenditures made by an organization that is related to a leased premises must be approved by the director of the Board. Rent payments may not be made to an individual. Lease Term: The term of this agreement will be concurrent with the premises permit issued by the Gambling Control Board (Board). Management: The owner of the premises or the lessor will not manage the conduct of lawful gambling at the premises. The organization may not conduct any activity on behalf of the lessor on the leased premises. Participation as Players Prohibited: The lessor will not par- ticipate directly or indirectly as a player in any lawful gambling conducted on the premises. The lessor's immediate family and any agents or gambling employees of the lessor will not partici- pate as players in the conduct of lawful gambling on the premis- es, except as authorized by Minnesota Statutes, Section 349. 18 1. Illegal Gambling: The lessor is aware of the prohibition against illegal gambling in Minnesota Statutes 609.75, and the penalties for illegal gambling violations in Minnesota Rules 7865.0220, Subpart 3. In addition, the Board may authorize the organization to withhold rent for a period of up to 90 days if the Board determines that illegal gambling occurred on the premises or that the lessor or its employees participated in the illegal gambling or knew of the gambling and did not take prompt action to stop the gambling. Continued tenancy of the organiza- tion is authorized without payment of rent during the time period determined by the Board for violations of this provision, as authorized by Minnesota Statutes, Section 349.18, Subd. 1(a). To the best of the lessor's knowledge, the lessor affirms that any and all games or devices located on the premises are not being used, and are not capable of being used, in a manner that violates the prohibitions against illegal gambling in Minnesota Statutes, Section 609.75. Notwithstanding Minnesota Rules 7865.0220, Subpart 3, an organization must continue making rent payments under the terms of this lease, if the organization or its agents are found to be solely responsible for any illegal gambling, conducted at this site, that is prohibited by Minnesota Rules 7851.0260, Subpart 1, item H, or Minnesota Statutes, Section 609.75, unless the organization's agents responsible for the illegal gambling activity are also agents or employees of the lessor. The lessor must not modify or terminate the lease in whole or in part because the organization reported, to a state or local law enforcement authority or to the Board, the conduct of illegal gambling activity at this site in which the organization did not participate. ACKNOWLEDGMENT OF LEASE TERMS I affirm that this lease is the total and only agreement between the lessor and the organization, and that all obligations and agreements are contained in or attached to this lease and are subject to the approval of the director of the Gambling Control Board Other terms of the lease: (Lessee): =: Signature of W,qls/nSignature of nt )^ of Lesiee: Srr*non &lrt s Title of Lessor:Print Name ttlail or fax lease to: / Minnesota Gambling Control Board 1711 W. County Road B, Suite 300 South Roseville, MN 55113Fax: 651-639-4032 Questions? Contact the Licensing Section, Gambling Control Board, at 651-539-1900. This publication will be made available in alternative format (i.e. large print, braille) upon request. Data privacy notice: The information requested on this form and any attachments will become public information when received by the Board, and will be used to determine your compliance with Minnesota statutes and rules governing lawful gambling activities. 224 frzt r,16 Eao./,-/ ,L ?r/r,a) )i rra rif^) *<et| 5o ur,l 'P,' n/ tN b wLrf -D, t\tl': b rfllt,l/ E 1.r/DCi- 23,42 -bn R ARI * zt/ O.,<// oorDoo? '-y'qrr o i<'z-zSzoZ ( (-'--<-----.- V 225 City Council Item October 9, 2023 Item Resolution 2023-XX: Authorize Design and Construction Administration Services Contract for 2023 Stormwater Pond Maintenance Project File No.ENG Project No. 23-14 Item No: D.11 Agenda Section CONSENT AGENDA Prepared By Joe Seidl, Water Resources Engineer Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council adopts a resolution authorizing a contract with WSB and Associates, Inc. for performing the design and construction administration services for the 2023 Stormwater Pond Maintenance Project." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY This project is for annual stormwater infrastructure maintenance work. The project consists of four distinct areas around the city prioritized by city staff using the asset management software Cartegraph. BACKGROUND In 2020, city staff prepared a stormwater pond maintenance inventory, analysis, and prioritization plan. The city, via its MS4 permit, is obligated to maintain its stormwater management infrastructure. These annual projects, along with annual inspections, are the implementation activities of the permit obligations. DISCUSSION 226 The first step of the overall project process is to engage a design consultant, as city staff does not have the available capacity to perform all of the duties required to deliver the project. WSB and Associates, Inc. was selected as the design and construction administration services consultant for the 2022 Stormwater Pond Improvement Project. As part of the 2022 project, several ponds progressed through preliminary design that were not part of the 2022 construction contract due to budgetary constraints. It is advantageous for the city to have WSB and Associates, Inc. finish the design work on these ponds with the 2023 Pond Maintenance Project to minimize design services. An additional budget was moved to construction administration in the 2023 Pond Maintenance Project proposal to reflect the past year's observed costs. The Upper Riley Creek Restoration project, being led by Riley Purgatory Bluff Creek Watershed District (RPBCWD), originally had a sizable city pond maintenance component in the scope, which was meant to be the largest portion of the city's annual pond maintenance budget. However, after analysis during project design, the presumed pond maintenance activity was shown not to result in a beneficial cost/benefit for water quality that would be achieved. That pond was thus removed from the project scope and allowed the city to utilize the planned funding on other ponds around the city. BUDGET Total Project Budget = $750,000 from CIP Project No's SWMP-032 and SWMP-048. SWMP-032 $150,000 SWMP-048 $600,000 Engineering Costs $73,400 Remaining Budget for Construction $676,600 The design and construction administration fee is in line with the project budget. The CIP sheets are attached to this report. RECOMMENDATION Staff recommends authorizing a contract with WSB and Associates, Inc. for the design services for the 2023 Stormwater Pond Maintenance Project. ATTACHMENTS Resolution WSB Proposal dated 08-28-2023 Professional Services Agreement SWMP-032 CIP Sheet 2023 SWMP-048 CIP Sheet 2023 227 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: October 9, 2023 RESOLUTION NO: 2023-XX MOTION BY: SECONDED BY: A RESOLUTION AUTHORIZING ENTERING INTO A PROFESSIONAL SERVICES AGREEMENT WITH WSB FOR DESIGN AND CONSTRUCTION ADMINISTRATION SERVICES RELATED TO THE 2023 POND MAINTENANCE PROJECT WHEREAS,there are approximately 300 City-owned stormwater ponds, 115 miles of sewer pipe, and 5300 individual storm structures in the City that make up the publicly owned stormwater management infrastructure; and WHEREAS,the City is obligated to maintain publicly-owned stormwater management infrastructure; and WHEREAS,the City has an annual Stormwater Pond Improvement Project that is supported by the 5-year Capital Improvement Plan (CIP); and WHEREAS,the Annual Stormwater Pond Improvement Project requires professional services; and WHEREAS,the city solicited a proposal from a qualified design consulting firm; and WHEREAS,the consulting firm successfully completed the Design and Construction Administration Services for the 2022 Pond Maintenance Project; and WHEREAS,staff reviewed the proposal and determined that the cost was competitive; and WHEREAS,the proposal fits within the established budget. NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby authorizes entering into a Professional Services Agreement with WSB and Associates, Inc for design and construction administration services related to the 2023 Pond Improvement Project. PASSED AND ADOPTED by the Chanhassen City Council this 9 th day of October, 2023. ATTEST: Kim Meuwissen, City Clerk Elise Ryan, Mayor YES NO ABSENT 228 G:\GROUP DATA\WATER RESOURCES\WR Proposal Folder\Chanhassen\2023 Stormwater Pond Maintenance\LTR PROP- jseidl - 2023 Pond Maintenance Project 20230828.docx 701 XENIA AVENUE S | SUITE 300 | MINNEAPOLIS, MN | 55416 | 763.541.4800 | WSBENG.COM August 28, 2023 Mr. Joe Seidl Water Resource Engineer City of Chanhassen 7700 Market Blvd Chanhassen, MN 55317 Re: 2023 Pond Maintenance Project – Design and Construction City of Chanhassen Dear Mr. Seidl: Attached for your review and approval is our proposed scope of services, fee, and schedule for providing professional engineering services to complete additional pond memos, design, specification, permitting and construction management of the five ponds identified to be cleaned out as part of the City’s 2023 Pond Maintenance Project. The five ponds included for the years’ project are: - LL P6.7 - MC-P4.2A - LL 2-14-1 - Christmas Lake 3-2-1 - Forebay 221 WSB previously completed pond memos for four of the five basins and has completed preliminary design and permitting for three of the five basins. Finalization of all pond plans and required permitting will be completed as part of this contract. We look forward to working with you on this project. If you are in agreement with this proposal, please sign where indicated below and return one copy to our offices. Please do not hesitate to contact me at 763-231-4845 with any questions. Sincerely, WSB Bill Alms, PE Kendra Fallon, PE Water Resource Project Manager Water Resources Project Engineer Attachment ACCEPTED BY: City of Chanhassen, MN Name Title Date 229 G:\GROUP DATA\WATER RESOURCES\WR Proposal Folder\Chanhassen\2023 Stormwater Pond Maintenance\LTR PROP- jseidl - 2023 Pond Maintenance Project 20230828.docx SCOPE OF ENGINEERING SERVICES FOR 2023 POND MAINTENANCE PROJECT – DESIGN AND CONSTRUCTION CITY OF CHANHASSEN, MN SCOPE OF ENGINEERING SERVICES Task 1 – Project Management ($4,500) Project management will be performed throughout the course of the project. The following subtasks are included as part of the Project Management: 1.1 Attend two project update meetings with City staff. This will include developing the agenda, preparing handouts and graphics, and attending the meeting. 1.2 Work with project team to coordinate project deliverables, schedule, and budget. Deliverables: Two (2) meetings with City staff at key milestones in project design Task 2 – Finalize Pond Feasibility Memorandum ($1,600) This task includes updating the City’s HydroCAD model based on survey information and completing a pond feasibility memorandum for Forebay 221 which was not completed in previous analysis. Sediment sampling has been previously completed for all ponds included in this year’s pond project. Deliverables: Pond Feasibility Memorandum for Forebay 221 Task 3 – Construction Documents and Permitting ($19,300) Five ponds were identified to be cleaned out as part of this year’s project. The ponds are at various stages of design based on previous work completed by WSB. This task will include taking all ponds from their current status to final design and completing all necessary permitting needed for construction of the proposed improvements. Plans are anticipated to include cover sheet, grading plans, restoration and erosion control plans, and details. In addition, an updated cost estimate will be developed to verify consistency between the proposed improvements and the City’s budget. The following subtasks are included in Task 3: 1.1 Create preliminary plan for Forebay 221 and Christmas Lake 3-2-1 1.2 Update preliminary plans based on project stakeholder and permitting agency feedback and provide 100% plans for 5 ponds. 1.3 Identify, prepare, and submit any required permits for the proposed improvements. 1.3.1 Basin LL 2-14-1 and LL-P6.7 have already been permitted with RPBCWD. 1.3.2 Permitting through the DNR and RPBCWD is required for Christmas Lake 3-2-1 and Forebay 221. 1.3.3 Basin MC-P4.2A is within MCWD, but it was confirmed with MCWD previously a permit would not be required for the maintenance work. 1.3.4 WCA no-loss application 230 Mr. Seidl August 28, 2022 Page 3 G:\GROUP DATA\WATER RESOURCES\WR Proposal Folder\Chanhassen\2023 Stormwater Pond Maintenance\LTR PROP- jseidl - 2023 Pond Maintenance Project 20230828.docx Deliverables: Draft Plans, Final Plans, Specifications, Necessary permitting documentation for the RPBCWD, DNR and WCA. This task does not include any necessary permit application fees these will be passed onto the City if applicable. Task 4 – Bidding Services ($1,600) This task consists of compiling bidding documents and bid administration for the project. This scope assumes answering questions during the bid process to help facilitate the understanding of construction expectations. Deliverables: Bidding Documents Task 5 – Construction Management ($39,300) Construction management will be performed throughout the course of the construction schedule for the drainage improvement work. This will include attending weekly progress meetings throughout the project (if applicable), and other necessary construction coordination. This task will include part-time observation (approximately 20 hours per week) during the anticipated 6-week construction schedule for the sediment excavation work. In addition, this will include inspection of all critical construction components as well as regular check-ins with the contractor and the City. This scope of services assumes the WSB will complete all necessary construction staking and as-built survey work. 5.1 Attend pre-construction meeting and weekly construction meetings. 5.2 Part-time construction observation. 5.3 Review and approve pay vouchers. 5.4 Construction Surveying & Staking 5.5 Record drawings for five ponds Deliverables: Construction Meetings, Construction Observation, Record Drawings Task 6 – Drainage and Utility Easement Acquisition ($6,700 + $400 expense for Title work) Based on review of plat documents for the project it could not be confirmed if the City had drainage and utility easement over Basin MC-P4.2A. This task would include confirming if there are existing easements over the basin and if not drafting easement documents to assist the City in easement acquisition. This task does not include landowner negotiation. The following subtasks are included in the task: 6.1 Obtain ownership and easement title work for two parcels at MC-P4.2A 6.2 Field survey of property corners and benchmark 6.3 Drafting easement sketches and legal descriptions 231 Mr. Seidl August 28, 2022 Page 4 G:\GROUP DATA\WATER RESOURCES\WR Proposal Folder\Chanhassen\2023 Stormwater Pond Maintenance\LTR PROP- jseidl - 2023 Pond Maintenance Project 20230828.docx Deliverables: Ownership and easement reports for two (2) properties (fees are estimated at $200 per O&E report), Easement sketches and legal descriptions for two (2) properties. Total Estimated Engineering Fee The scope of services outlined in this proposal will be billed hourly, based on our current hourly rates. We are proposing to complete the 2023 Pond Maintenance Project for an estimated fee of $73,400. Time Schedule The design and permitting work is anticipated to be completed by the end of October 2023. Construction of the improvements is anticipated to be completed through Winter 2023/2024 with final restoration in Spring 2024. 232 1 201749v1 PROFESSIONAL SERVICES AGREEMENT AGREEMENT made this 9th day of October, 2023, by and between the CITY OF CHANHASSEN,a Minnesota municipal corporation ("City") and WSB and ASSOCIATES, Inc., a Minnesota corporation ("Consultant"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1.SCOPE OF SERVICES. The City retains Consultant for 2022 Stormwater Pond Maintenance Design and Construction Administration Services. 2.CONTRACT DOCUMENTS. The following documents shall be referred to as the "Contract Documents," all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A.This Professional Services Agreement; B.Insurance Certificate; C.Consultant’s August 28, 2023 letter proposal for 2022 Stormwater Pond Maintenance Design and Construction Administration Services (“Proposal”). In the event of conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts, with Contract Document “A” having the first priority and Contract Document “C” having the last priority. 3.COMPENSATION. Consultant shall be paid by the City for the services described in the Proposal a not to exceed fee of Seventy Three Thousand-Four Hundred Dollars ($73,400.00), inclusive of expenses. Services performed directly by Consultant shall be paid at an hourly rate in accordance with the Proposal, subject to the not to exceed fee. The not to exceed fees and expenses shall not be adjusted if the estimated hours to perform a task, the number of required meetings, or any other estimate or assumption is exceeded. Consultant shall bill the City as the work progresses. Payment shall be made by the City within thirty-five (35) days of receipt of an invoice. 4.DOCUMENT OWNERSHIP. All reports, plans, models, diagrams, analyses, and information generated in connection with performance of this Agreement shall be the property of the City. The City may use the information for its purposes. The City acknowledges that all reports, plans, models, diagrams, analyses, and information generated in connection with performance of this Agreement are created solely for the specific project covered by this Agreement and may not be suitable for reuse on other projects. The City also acknowledges that reuse of the reports, plans, models, diagrams, analyses, and information generated in connection 233 2 201749v1 with performance of this Agreement without the written verification or adaptation by Consultant will be done at the City's sole risk and without liability to Consultant. 5.CHANGE ORDERS. All change orders, regardless of amount, must be approved in advance and in writing by the City. No payment will be due or made for work done in advance of such approval. 6.COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Consultant shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. 7.STANDARD OF CARE. Consultant shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional consultant under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Consultant’s services. 8.INDEMNIFICATION. Consultant shall indemnify and hold harmless the City, its officers, agents, and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, to the extent caused by the Consultant’s negligent performance of the services provided for herein. 9.INSURANCE. Consultant shall secure and maintain such insurance as will protect Consultant from claims under the Worker’s Compensation Acts, automobile liability, and from claims for bodily injury, death, or property damage which may arise from the negligent performance of services under this Agreement. Such insurance shall be written for amounts not less than: Commercial General Liability $2,000,000 each occurrence/aggregate Automobile Liability $2,000,000 combined single limit Professional Liability $2,000,000 each claim/aggregate The City shall be named as an additional insured on the general liability policy on a primary and non- contributory basis. Before commencing work, the Consultant shall provide the City a certificate of insurance evidencing the required insurance coverage in a form acceptable to City. 10.INDEPENDENT CONTRACTOR. The City hereby retains Consultant as an independent contractor upon the terms and conditions set forth in this Agreement. Consultant is not an employee of the City and is free to contract with other entities as provided herein. Consultant shall be responsible for selecting the means and methods of performing the work. Consultant shall furnish any and all supplies, equipment, and incidentals necessary for Consultant’s performance under this Agreement. City and Consultant agree that Consultant shall not at any time or in any manner represent that Consultant or any of Consultant's agents or employees are in any manner agents or employees of the City. Consultant shall be exclusively responsible under this Agreement for Consultant’s own FICA payments, workers compensation payments, unemployment compensation payments, 234 3 201749v1 withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 11.SUBCONTRACTORS. Consultant shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Consultant shall comply with Minnesota Statutes § 471.425. Consultant must pay subcontractors for all undisputed services provided by subcontractors within ten (10) days of Consultant’s receipt of payment from City. Consultant must pay interest of one and five-tenths percent (1.5%) per month or any part of a month to subcontractors on any undisputed amount not paid on time to subcontractors. The minimum monthly interest penalty payment for an unpaid balance of One Hundred Dollars ($100.00) or more is Ten Dollars ($10.00). 12.CONTROLLING LAW/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Carver County Minnesota. 13.MINNESOTA GOVERNMENT DATA PRACTICES ACT. Consultant must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Consultant pursuant to this Agreement. Consultant is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Consultant receives a request to release data, Consultant must immediately notify City. City will give Consultant instructions concerning the release of the data to the requesting party before the data is released. Consultant agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Consultant’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 14.COPYRIGHT. Consultant shall defend actions or claims charging infringement of any copyright or software license by reason of the use or adoption of any software, designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting therefrom. 15.PATENTED DEVICES, MATERIALS AND PROCESSES. If the Contract requires, or the Consultant desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, the Consultant shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the City. If no such agreement is made or filed as noted, the Consultant shall indemnify and hold harmless the City from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the services agreed to be performed under the Contract, and shall indemnify and 235 4 201749v1 defend the City for any costs, liability, expenses and attorney's fees that result from any such infringement. 16.RECORDS. Consultant shall maintain complete and accurate records of hours worked and expenses involved in the performance of services. 17.ASSIGNMENT. Neither party shall assign this Agreement, or any interest arising herein, without the written consent of the other party. 18.WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 19.ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof, as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 20.TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Consultant. In the event of termination, the City shall be obligated to the Consultant for payment of amounts due and owing including payment for services performed or furnished to the date and time of termination. 21. WAIVER OF CONSEQUENTIAL DAMAGES. Neither party shall be liable to the other for loss of profits or revenue; loss of use or opportunity; loss of good will; cost of substitute facilities, goods, or services; cost of capital; or for any special, consequential, indirect, punitive, or exemplary damages. Dated: _______________, 20__.CITY OF CHANHASSEN 236 5 201749v1 BY: _____________________________________________ Elise Ryan, Mayor BY: _____________________________________________ Laurie Hokkanen, City Manager Dated: _______________, 2023.WSB and ASSOCIATES, Inc. dba WSB BY: _____________________________________________ _____________________________________________ Its _____________________________________________ 237 Stormwater - Annual Stormwater Pond Improvements Overview Request Owner Charlie Howley, PW Director/City Engineer Department Enterprise Cip Items Type Capital Improvement Project Number SWMP-032 Description This program will provide for our required annual inspection and cleaning of various City stormwater ponds. This work may include sediment removal, vegetation management and assessment, repair and replacement of inlet and outlet structures. In 2023, $600,000 of this funding was moved to SWMP-032 for Upper Riley Creek Channel Stabilization. Details Type of Project Improvement Capital Cost Breakdown Capital Cost FY2023 FY2024 FY2025 FY2026 FY2027 Total Construction/Maintenance $150,000 $500,000 $525,000 $550,000 $575,000 $2,300,000 Total $150,000 $500,000 $525,000 $550,000 $575,000 $2,300,000 Capital Cost FY2023 Budget $150,000 Total Budget (all years) $2.3M Project Total $2.3M Capital Cost by Year Construction/Maintenance 2023 2024 2025 2026 2027 $150,000.00 $500,000.00 $525,000.00 $550,000.00 $575,000.00 $0 $150K $300K $450K Capital Cost for Budgeted Years TOTAL $2,300,000.00 Construction/Maintenance (100%)$2,300,000.0 238 Funding Sources Breakdown Funding Sources FY2023 FY2024 FY2025 FY2026 FY2027 Total Utility Fund - SW Mgmt $150,000 $500,000 $525,000 $550,000 $575,000 $2,300,000 Total $150,000 $500,000 $525,000 $550,000 $575,000 $2,300,000 Funding Sources FY2023 Budget $150,000 Total Budget (all years) $2.3M Project Total $2.3M Funding Sources by Year Utility Fund - SW Mgmt 2023 2024 2025 2026 2027 $150,000.00 $500,000.00 $525,000.00 $550,000.00 $575,000.00 $0 $150K $300K $450K Funding Sources for Budgeted Years TOTAL $2,300,000.00 Utility Fund - SW Mgmt (100%)$2,300,000.00 239 Stormwater - Upper Riley Creek Channel Stabilization Overview Request Owner Charlie Howley, PW Director/City Engineer Department Enterprise Cip Items Type Capital Improvement Project Number SWMP-048 Description Stabilization of stream bank undercutting, escarpment, and gully erosion. This is part of a larger project administered by the watershed district. The budget represents only the City's portion of the project. An assessment revealed signi cant stream erosion issues, resulting in sediment deposition into Riley Creek and subsequently into Lake Susan. This project uses most of the 2023 funding for the annual pond maintenance project SWMP-032. Details Type of Project Improvement Location 240 Capital Cost Breakdown Capital Cost FY2023 Total Construction/Maintenance $600,000 $600,000 Total $600,000 $600,000 Capital Cost FY2023 Budget $600,000 Total Budget (all years) $600K Project Total $600K Capital Cost by Year Construction/Maintenance 2023 $600,000.00 $0 $150K $300K $450K $600K Capital Cost for Budgeted Years TOTAL $600,000.00 Construction/Maintenance (100%)$600,000.00 241 Funding Sources Breakdown Funding Sources FY2023 Total Utility Fund - SW Mgmt $600,000 $600,000 Total $600,000 $600,000 Funding Sources FY2023 Budget $600,000 Total Budget (all years) $600K Project Total $600K Funding Sources by Year Utility Fund - SW Mgmt 2023 $600,000.00 $0 $150K $300K $450K $600K Funding Sources for Budgeted Years TOTAL $600,000.00 Utility Fund - SW Mgmt (100%)$600,000.00 242 City Council Item October 9, 2023 Item Ordinance XXX: Amending the City Code Concerning Regulation of Lawful Gambling, and approve the Publication of a Summary Ordinance File No.Item No: D.12 Agenda Section CONSENT AGENDA Prepared By Kim Meuwissen, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts an ordinance amending Article 10-V Gambling of the Chanhassen City Code and approves the publication of a Summary Ordinance." Motion Type 4/5 Vote Strategic Priority N/A SUMMARY Chapter 10, Article V of the Chanhassen City Code addresses lawful gambling within the city and was last updated in 2004. The current gambling ordinance does not sufficiently address processes for issuing premises permits and exempt and excluded (local) permits for lawful gambling activities that the State does not regulate through licensing, nor does the ordinance address due process issues. BACKGROUND State Statute and Restrictions The attached draft ordinance adopts Minnesota Statute Chapter 349 by reference, which also allows the city to impose additional restrictions on gambling within its limits beyond those contained in the statute. 243 Permits The Minnesota Gambling Control Board issues lawful gambling licenses to Minnesota non-profit corporations or tax-exempt organizations, with conditions. City review and approval are required for three types of permits: Exempt Permits: issued to unlicensed non-profit organizations seeking to conduct bingo, raffles, and other forms of lawful gambling. Exempt permits are required for the calendar year when: The total value of ALL prizes donated and purchased is less than $50,000 and is limited to five days of gambling activity per calendar year Permits to Conduct Excluded Bingo : issued to unlicensed non-profit organizations seeking to conduct bingo. Excluded permits are required for the calendar year when: bingo will be conducted at four or fewer events, or bingo will be conducted up to 12 consecutive days in conjunction with a county fair, civic celebration, or the Minnesota State Fair Exempt/Excluded permits have previously been issued to the following organizations: Chanhassen American Legion Auxiliary Chanhassen Storm Gridiron Club Ducks Unlimited Minnesota Baseball Club Southern Valley Alliance SouthWest Metro Chamber of Commerce St. Hubert Catholic Community United Healthcare Children's Foundation NOTE: Exempt and Excluded Permits are considered "Local Permits" in the proposed ordinance. Premises Permits: issued to a licensed organization to conduct lawful gambling on an ongoing basis at any specific location. NOTE: A premises permit application is required as part of an organization's initial lawful gambling license application. This can either be for the organization's home facility if they have one (such as the Chanhassen American Legion) and for each additional premise that the organization conducts lawful gambling in (such as the Chanhassen Brewing Company and Hackamore Brewing Company), if any. If an organization does not have a home facility for its gambling license, it still must apply for a premises permit at the location where it intends to conduct lawful gambling, whether or not it conducts the organization's business at that location. On May 10, 2021, the Chanhassen City Council adopted a resolution approving an application from Chanhassen American Legion Post 580 ("Legion") for a premises permit to conduct lawful gambling in Chanhassen Brewing Company. This was the first time a premises permit was approved in Chanhassen, other than the initial premises permit issued for the Legion's existing site. Subsequently, premises permits to conduct lawful gambling have been approved for the following organizations: Minnesota Youth Athletic Services (Spring Lake Park) - Buffalo Wild Wings (February 14, 2022) Chanhassen American Legion Post 580 (Chanhassen) - Hackamore Brewing Company (February 13, 2023) 244 Holy Family Catholic High School (Victoria) - Axel's Bonfire (August 14, 2023) Only two approved premises permits were issued to a Chanhassen business. An application has been received from the Rotary Club of Lake Minnetonka-Excelsior (based in Excelsior) requesting approval of a premises permit at North Coop. Council approval of this request is scheduled for September 25, 2023. Off-Site Permits: issued to licensed organizations to conduct lawful gambling on a premises other than the organization's permitted premises for 12 events per calendar year, not to exceed three days per event. There is no history of the city issuing off-site permits. The proposed ordinance provides details of the application and approval processes for Premises Permits and Exempt and Excluded (Local) Permits for exempt organizations, including background investigation requirements. Investigation Fee or Gambling Tax There is an option for the city to either charge an investigation fee not to exceed $250, or impose a lawful gambling regulatory tax of up to 3% per year to to cover the cost of regulation, which includes site inspections, compliance reviews, corrective action, and trade area monitoring. If the regulatory tax is imposed, the city, by March 15 of each year, must submit an annual report to the GCB on the regulatory tax. Additionally, city documents pertaining to site inspections, compliance reviews, trade area monitoring, fines, penalties, or other corrective action involving local lawful gambling regulation must be provided to the GCB within 30 days of the inspection, compliance review, corrective action, etc. The city has not regulated gambling locations in the past. Staff recommends charging an investigation fee of $250 instead of imposing a regulatory tax of up to 3%. Contribution Requirements Contribution requirements follow state statute and remain unchanged from the current city code: Each organization licensed to conduct lawful gambling within the city shall contribute 10% of its net profits to a fund administered and regulated by the city; and Each organization licensed to conduct lawful gambling within the city shall expend 50% of its lawful purpose expenditures on lawful purposes conducted within the city's trade area (NOTE: the State of Minnesota authorizes up to 100%). Staff recommends that the contribution requirements remain unchanged. DISCUSSION At their September 11, 2023 work session, the City Council directed staff to proceed with adoption of the ordinance on September 25, 2023 and to include the following requirements: 1. Implement an annual $250 background investigation fee for Premises Permits 2. Remove the current application fee of $1.00 for Exempt Permits. 245 3. Limit organizations applying for Premises Permits to only those based in Chanhassen The applicant of the pending Premises Permit application from the Rotary Club of Lake Minnetonka- Excelsior was notified to withdraw their application as the organization is not based in Chanhassen. The applicant responded that the organization's intent was to spend 100% of profits in Chanhassen, including both the Eastern Carver County and Minnetonka School Districts. City Manager Laurie Hokkanen shared this information with the Mayor and City Council. Upon review of the additional information, the City Council asked to delay the adoption of the ordinance for further discussion. BUDGET N/A RECOMMENDATION Investigation Fee: Staff recommends an annual $250 investigation fee be implemented to recoup the costs incurred from Carver County, as opposed to imposing a lawful gambling regulatory tax of up to 3%. This investigation fee would be included in the next Fee Ordinance update for 2024. Exempt Permit Fee: Staff recommends removing the current application fee of $1.00 per application. NOTE: per statute, the city cannot charge an application fee for Premises or Off-Site Permits. ATTACHMENTS Ordinance Summary Ordinance League of Minnesota Cities Info Memo-Lawful Gambling City Code Chapter 10, Article V, Gambling 246 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN ORDINANCE AMENDING THE CITY CODE CONCERNING REGULATION OF LAWFUL GAMBLING THE CITY COUNCIL OF CHANHASSEN, MINNESOTA ORDAINS: SECTION 1. Article 10-V “Gambling” of the Chanhassen City Code is amended in its entirety to read as follows: Sec 10-150 Adoption of State Law by Reference The provisions of Minn. Stat. ch. 349, as they may be amended from time to time, with reference to the definition of terms, conditions of operation, provisions relating to sales, and all other matters pertaining to lawful gambling are hereby adopted by reference and are made a part of this ordinance as if set out in full. It is the intention of the Council that all future amendments of Minn. Stat. ch. 349, are hereby adopted by reference or referenced as if they had been in existence at the time this ordinance was adopted. Sec 10-151 City May be More Restrictive Than State Law The Council is authorized by the provisions of Minn. Stat. § 349.213, as it may be amended from time to time, to impose, and has imposed in this ordinance, additional restrictions on gambling within its limits beyond those contained in Minn. Stat. ch. 349, as it may be amended from time to time. Sec 10-152 Purpose The purpose of this ordinance is to regulate lawful gambling within the City of Chanhassen, to prevent its commercialization, to ensure the integrity of operations, and to provide for the use of net profits only for lawful purposes. Sec 10-153 Definitions In addition to the definitions contained in Minn. Stat. § 349.12, as it may be amended from time to time, the following terms are defined for purposes of this ordinance: (a)Board, as used in this ordinance, means the State of Minnesota Gambling Control Board. (b)City, as used in this ordinance, means the City of Chanhassen. (c)Council, as used in this ordinance, means the City Council of the City of Chanhassen. 247 2 (d)Licensed Organization, as used in this ordinance, means an organization licensed by the Board. (e)Local Permit, as used in this ordinance, means a permit issued by the city. (f)Trade Area, as used in this ordinance, means this city and each city and township contiguous to this city. Sec 10-154 Applicability This ordinance shall be construed to regulate all forms of lawful gambling within the city except bingo conducted within a nursing home or a senior citizen housing project or by a senior citizen organization if the prizes for a single bingo game do not exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, only members of the organization, residents of the nursing home or housing project, and their guests, are allowed to play in a bingo game, no compensation is paid for any persons who conduct the bingo, and a manager is appointed to supervise the bingo. Sec 10-155 Lawful Gambling Permitted Lawful gambling is permitted within the city provided it is conducted in accordance with Minn. Stat. §§ 609.75-.763, inclusive, as they may be amended from time to time; Minn. Stat. §§ 349.11-.23, inclusive, as they may be amended from time to time; and this ordinance. Sec 10-156 Council Approval Lawful gambling authorized by Minn. Stat. §§ 349.11-.23, inclusive, as they may be amended from time to time, shall not be conducted unless approved by the Council, subject to the provisions of this ordinance and state law. Sec 10-157 Application and Local Approval of Premises Permits (a) Any organization seeking to obtain a premises permit from the Board shall file with the city clerk an executed, complete duplicate application, together with all exhibits and documents accompanying the application as will be filed with the Board. Each organization licensed to conduct lawful gambling in the City shall complete the City's investigation form, submit copies of all state gambling application forms, all records and reports required to be filed within the State Gambling Control Board pursuant to Minnesota Statues, Chapter 349, and the rules and regulations promulgated thereunder, and submit any additional information required by the City. (b) Upon receipt of an application for issuance of a premises permit, the city clerk shall transmit the application to the county sheriff for review and recommendation. (c) The county sheriff shall investigate the matter and make the review and recommendation to the City Council as soon as possible, but in no event later than 45 days following receipt of the notification by the city. 248 3 (d) Organizations applying for a state-issued premises permit shall pay the city an investigation fee established by ordinance. This fee shall be refunded if the application is withdrawn before the investigation is commenced. If approved by the City Council and the Board, a licensed organization will be responsible for an annual investigative fee for conducting lawful gambling within the city. (e) The applicant shall be notified in writing of the date on which the Council will consider the recommendation. (f) The Council shall receive the county sheriff’s report and consider the application within 45 days of the date the application was submitted to the city clerk. (g) The Council shall by resolution approve or disapprove the application within 60 days of receipt of the application. (h) The Council shall deny an application for issuance or renewal of a premises permit for any of the following reasons: (1) An applicant’s officer, director, or other person in a supervisory or management position a. has been convicted of a felony within the last five (5) years; b. has ever been convicted of a crime involving gambling; c. is not of good moral character or repute; d. has ever been convicted of 1. assault, 2. a criminal violation involving the use of a firearm, or 3. making terroristic threats; e. owes delinquent local, state or federal taxes, or is delinquent on any other city bill. (2) The premises is in violation of any land use or zoning ordinance or owes delinquent local, state or federal taxes, or is delinquent on any other city bill. (3) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three (3) years. (4) Violation by the on-sale establishment or organization leasing its premises for gambling of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three (3) years. (5) Lawful gambling would be conducted at premises other than those for which an on-sale liquor license has been issued. (6) Failure of the applicant to pay the investigation fee provided by Subdivision 4 within the prescribed time limit. 249 4 (7) Operation of gambling at the site would be detrimental to health, safety, and welfare of the community. Otherwise, the Council shall pass a resolution approving the application. Sec 10-158 Local Permits (a) No organization shall conduct lawful gambling excluded or exempted from state licensure requirements by Minn. Stat. § 349.166, as it may be amended from time to time, without a valid local permit. This section shall not apply to lawful gambling exempted from local regulation by Section 10-154 of this ordinance. (b) Applications for issuance or renewal of a local permit shall be on a form prescribed by the city. The application shall contain the following information: (1) Name and address of the organization requesting the permit. (2) Name and address of the officers and person accounting for receipts, expenses, and profits for the event. (3) Dates of gambling occasion for which permit is requested. (4) Address of premises where event will occur. (5) Copy of rental or leasing arrangement, if any, connected with the event, including rent to be charged to the organization, which rental or leasing arrangement may not provide for rental payments based on a percentage of receipts or profits from lawful gambling. (6) Estimated value of prizes to be awarded. (c) The fee for a local permit shall be as established by city ordinance. The fee shall be submitted with the application for a local permit. This fee shall be refunded if the application is withdrawn before the investigation is commenced. (d) Upon receipt of an application for issuance or renewal of a local permit, the city clerk shall transmit the notification to the county sheriff for review and recommendation. (e) The county sheriff shall investigate the matter and make review and recommendation to the City Council as soon as possible, but in no event later than 45 days following receipt of the notification by the city. (f) The applicant shall be notified in writing of the date on which the Council will consider the recommendation. (g) The Council shall receive the county sheriff’s report and consider the application within 45 days of the date the application was submitted to the city clerk. 250 5 (h) The Council shall deny an application for issuance or renewal of a local permit for any of the following reasons: (1) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three (3) years. (2) Violation by the on-sale establishment, or organization leasing its premises for gambling, of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to the operation of the establishment, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three (3) years. (3) Operation of gambling at the site would be detrimental to health, safety, and welfare of the community. Otherwise, the Council shall approve the application. Sec 10-159 Revocation and Suspension of Local Permits (a) A local permit may be revoked or temporarily suspended for a violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling. (b) A local permit shall not be revoked or suspended until written notice and an opportunity for a hearing have first been given to the permitted person. The notice shall be personally served or sent by certified or registered mail. If the person refuses to accept notice, notice of the violation shall be served by posting it on the premises. Notice shall state the provision reasonably believed to be violated and shall also state that the permitted person may demand a hearing on the matter, in which case the permit will not be suspended until after the hearing is held. If the permitted person requests a hearing, the Council shall hold a hearing on the matter at least one week after the date on which the request is made. If, as a result of the hearing, the Council finds that an ordinance violation exists, then the Council may suspend or revoke the permit. Sec 10-160 Display of Permit All permits issued under state law or this ordinance shall be prominently displayed during the permit year at the premises where gambling is conducted. Sec 10-161 Notification Of Material Changes To Application An organization holding a state-issued premises permit or a local permit shall notify the city within ten (10) days in writing whenever any material change is made in the information submitted on the application. Sec 10-162 Contribution Of Net Profits To Fund Administered By City (a) Each organization licensed to conduct lawful gambling within the city pursuant to Minn. Stat. § 349.16, as it may be amended from time to time, shall contribute ten percent (10%) of 251 6 its net profits derived from lawful gambling in the city to a fund administered and regulated by the city without cost to the fund. The city shall disburse the funds for charitable contributions as defined by Minn. Stat. § 349.12, subd. 7a, as it may be amended from time to time. (b) Payment under this section shall be made on the last day of each month. (c) The city’s use of such funds shall be determined at the time of adoption of the city’s annual budget or when the budget is amended. (d) An organization that conducts gambling on fewer than five days in a calendar year is exempt from the requirements of this section. Sec 10-163 Designated Trade Area (a) Each organization licensed to conduct gambling within the city shall expend fifty percent (50%) of its lawful purpose expenditures on lawful purposes conducted within the city’s trade area. (b) This section applies only to lawful purpose expenditures of gross profits derived from gambling conducted at a premises within the city’s jurisdiction. (c) An organization that conducts gambling on fewer than five days in a calendar year is exempt from the requirements of this section. Sec 10-164 Records and Reporting (a) Organizations conducting lawful gambling shall file with the city clerk one copy of all records and reports required to be filed with the Board, pursuant to Minn. Stat. ch. 349, as it may be amended from time to time, and rules adopted pursuant thereto, as they may be amended from time to time. The records and reports shall be filed on or before the day they are required to be filed with the Board. (b) Organizations licensed by the Board shall file a report with the city proving compliance with the trade area spending requirements imposed by Section 10-163. Such report shall be made on a form prescribed by the city and shall be submitted annually. Sec 10-165 Hours of Operation Lawful gambling shall not be conducted between 1 a.m. and 8 a.m. on any day of the week. Sec 10-166 Penalty Any person who violates any provision of this ordinance; Minn. Stat. §§ 609.75-609.763, inclusive, as they may be amended from time to time; or Minn. Stat. §§ 349.11-349.21, as they may be amended from time to time; or any rules promulgated under those sections, as they may be amended from time to time, shall be guilty of a misdemeanor and subject to a fine of not more than $1,000 or imprisonment for a term not to exceed 90 days, or both, plus in either case the 252 7 costs of prosecution. In addition, violations shall be reported to the Board and recommendation shall be made for suspension, revocation, or cancellation of an organization’s license. Sec 10-167 Severability If any provision of this ordinance is found to be invalid for any reason by a court of competent jurisdiction, the validity of the remaining provisions shall not be affected. SECTION 2. Effective Date. This ordinance becomes effective on the date of its publication or upon the publication of a summary of the ordinance as provided by Minn. Stat. § 412.191, subd. 4, as it may be amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as it may be amended from time to time. PASSED AND ADOPTED this 9th day of October, 2023 by the City Council of the City of Chanhassen, Minnesota. ATTEST: Kim Meuwissen City Clerk Elise Ryan, Mayor (Summary Ordinance Published in the Chanhassen Villager on October 19, 2023) 253 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA SUMMARY OF ORDINANCE NO. 716 AN ORDINANCE AMENDING CHAPTER 10, LICENSES, PERMITS, AND MISCELLANEOUS BUSINESS REGULATIONS, ARTICLE 10-V, GAMBLING OF THE CHANHASSEN CITY CODE The purpose of this Code amendment is as follows: To address processes for issuing premises permits, exempt permits, and excluded permits for lawful gambling activities not regulated by the State of Minnesota Gambling Control Board, and to address due process issues. A printed copy of Ordinance No. 716 is available for inspection by any person during regular office hours at the office of the City Clerk. PASSED, ADOPTED, AND APPROVED FOR PUBLICATION this 9th day of October, 2023 by the City Council of the City of Chanhassen. (Published in the Chanhassen Villager on October 19, 2023) 254 145 University Ave. West www.lmc.org 5/16/2022 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2022 All Rights Reserved This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. INFORMATION M EMO Lawful Gambling Learn what gambling is allowed in Minnesota, like pull-tabs and raffles, and which organizations may conduct them. Understand state regulations on lawful purposes for which gambling money may be spent, licensing, gambling managers, and more. Find out how cities can regulate gambling with “10 percent funds,” investigation fees, trade areas, and local gambling taxes. RELEVANT LINKS: I. Permitted Forms of Gambling Minn. Stat. §§ 609.75-.763. Minnesota law generally criminalizes gambling conducted within the state. However, there are exceptions. Permitted forms of gambling include: 25 U.S.C. 2701 et seq. Minn. Stat. § 3.9221. Minn. Stat. ch. 349A. Minn. Stat. ch. 240. Minn. Stat. § 240.30. Minn. Stat. ch. 349. Minn. Stat. § 609.75, subd. 3. Minn. Stat. § 609.761, subd. 3. Minn. Stat. § 609.761, subd. 4. • Native American gaming conducted pursuant to a tribal-state compact. • The Minnesota State Lottery. • Pari-mutuel horse racing. • Card club operations. • Lawful (often called “charitable”) gambling. • Private social bets. • Social skill games. • Social dice games. This memo focuses on lawful gambling. It is the only type of gambling subject to municipal regulation. II. Lawful gambling Minn. Stat. § 349.12, subd. 24. Lawful gambling is the “operation, conduct, or sale of bingo, raffles, paddlewheels, tipboards, and pull-tabs.” A. Bingo Minn. Stat. § 349.12, subd. 4. Minn. Stat. § 349.17. Gambling Control Board, Lawful Gambling Manual, Chapter 6: Bingo. “Bingo” is a game where each player has a bingo hard card, bingo paper sheet, or facsimile of a bingo paper sheet when used in conjunction with an electronic bingo device, for which a consideration has been paid, and is played in accordance with state regulations regarding the conduct of bingo. 1. Bar bingo Minn. Stat. § 349.12, subd. 3c. “Bar bingo” is a bingo game conducted in an area where intoxicating liquor or 3.2 percent malt beverages are sold and where the licensed organization conducts another form of lawful gambling. Bar bingo does not include linked bingo games. 255 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 2 2. Linked bingo Minn. Stat. § 349.12, subd. 25a. See Section II-F-Electronic gambling devices. “Linked bingo” is a bingo game played at two or more locations with a common prize pool, a common selection of numbers or symbols, and where the results are transmitted to all participating locations by satellite, telephone or other means by a linked bingo game provider. B. Raffles Minn. Stat. § 349.12, subd. 33. Gambling Control Board, Lawful Gambling Manual, Chapter 7: Raffles. A “raffle” is a game in which a participant buys a ticket (or other certificate of participation) for an event where prizes are awarded based on a method of random selection and all entries have an equal chance of winning. C. Paddlewheels Minn. Stat. § 349.12, subd. 29. Gambling Control Board, Lawful Gambling Manual, Chapter 9: Paddlewheels. A “paddlewheel” is a vertical wheel (or an electronic device that simulates a wheel) marked off into sections containing one or more numbers that, after being turned or spun, uses a pointer or marker to determine winning numbers matching purchased tickets. D. Tipboards Minn. Stat. § 349.12, subd. 34. Gambling Control Board, Lawful Gambling Manual, Chapter 8: Tipboards. A “tipboard” is a board, placard or other device containing a seal that conceals the winning number or symbol. Lawful gambling organizations often use tipboards for “meat raffles.” E. Pull-tabs Minn. Stat. § 349.12, subd. 32. Gambling Control Board, Lawful Gambling Manual, Chapter 5: Paper Pull-Tabs. See Section II-F-Electronic gambling devices. A “pull-tab” is a single folded or banded paper ticket, a multi-ply card with perforated break-open tabs, or a facsimile of a paper ticket used in conjunction with an electronic device, the face of which is initially covered to conceal one or more numbers or symbols, and where one or more of each set of tickets, cards, or facsimiles has been designated as a winner in advance. F. Electronic gambling devices 1. Electronic linked bingo Minn. Stat. § 349.12, subd. 12a. An electronic bingo device: • Is used to play electronic linked bingo. • Activates bingo numbers that are announced or displayed. • Identifies winning bingo patterns. • Is limited to 36 “faces” per game. 256 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 3 See Section V – State Regulation. • Requires coded entry to activate play, but does not allow the use of coins, tokens, or other currency. • May only be used for play against other bingo players in a bingo game. • Has no additional function as an amusement or gaming device other than electronic pull-tabs. • Has the capability to ensure adequate internal controls. • Permits monitoring by the Gambling Control Board. • Can be used by players who are visually impaired. 2. Electronic pull-tabs a. Games Minn. Stat. § 349.12, subd. 12c. An electronic pull-tab game: Minn. Stat. § 349.211. • Uses facsimiles of pull-tab tickets that are played on an electronic device. • Has a predetermined, finite number of winning and losing tickets (not to exceed 7,500 tickets). • Sells each ticket for the same price (which is not less than 25 cents per ticket). • Is played in conformance with all applicable rules for pull-tabs. • Complies with statutory prize limits. • Has a unique serial number that may not be regenerated. • Has an electronic flare that displays the game name, form number, and predetermined number of tickets in the game (as well as prize tier). • Does not mimic a video slot machine. See Section VII – Local regulation. Minn. Stat. § 349.1721 subd. 4. The hours of operation for the devices are limited to 8 a.m. to 2 a.m. (although local regulations may be more restrictive). All electronic pull- tab games must be sold and played on the permitted premises and may not be linked to other locations. Minn. Stat. § 349.1721, subd. 4. Before playing, individuals must present and register a valid picture identification card that includes the player’s address and date of birth. Players are also limited to the use of one device at a time. b. Devices Minn. Stat. § 349.12, subd. 12b. An electronic pull-tab device is a handheld, portable device that: • Is used to play one or more electronic pull-tab games. • Requires coded entry to activate play, but does not use coins, tokens, or other currency. • Requires that a player activates or opens each electronic pull-tab ticket, as well as each individual line, row, or column on each ticket. 257 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 4 • Maintains information regarding accumulated credits that may be applied to games or redeemed upon termination of play. • Has no spinning reels or other features that mimic a video slot machine. • Has no additional gambling functions other than electronic linked bingo. • May incorporate an “amusement game” feature but may not require additional consideration for use of that feature. • May have audio or visual enhancements. • Maintains (on non-resettable meters) a printed, permanent record of play. • Is not a pull-tab dispensing device. • Can be used by players who are visually impaired. 3. Electronic Raffle Selection System Minn. Stat. § 349.12 subds. 12e and 33b. An electronic raffle selection system is a system that uses a random number generator to select winning raffle numbers and includes raffle sales devices. A raffle sales device is an attendant-operated cashier station used as a point of sale for raffle tickets from which a raffle participant may purchase a raffle ticket to participate in an electronic raffle selection system. 4. Eligible locations Minn. Stat. § 349.17, subd. 9. Minn. Stat. § 349.1721, subd. 4. A lawful gambling organization that wants to offer electronic pull-tabs must sell paper pull-tabs at that location. The use of these electronic gambling devices (for bingo and pull-tabs) is limited to locations that are: • Licensed for the on-sale or off-sale of intoxicating liquor or 3.2 malt beverages (except for general food stores or drug stores that sell alcoholic beverages). • Bingo halls with a seating capacity of 100 or more (as determined under the local fire code). 5. Limitations Minn. Stat. § 349.17, subd. 9. Minn. Stat. § 349.1721, subd. 4. The number of electronic gambling devices allowed is based on the size of the premises and the location’s capacity as determined by the fire code. The lawful gambling organization is limited to having no more than: • Six devices in play at locations with 200 seats or less. • Twelve devices in play for locations with 201 seats or more. • Fifty devices in play for locations where bingo is the primary business. 258 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 5 See Minn. Stat. § 349.12 subd. 12b(6). State law allows for electronic devices that can be used for both pull-tab and linked bingo games, although the limitations would still apply. For example, an organization operating at a location with 200 seats or less could have 12 “combo” devices, but at any given time, only six could be “in play” for electronic pull-tabs and only six could be in play for electronic linked bingo. III. Eligible organizations Minn. Stat. § 349.12, subd. 28. Lawful gambling may only be conducted by: Minn. Stat. § 349.12, subd. 16a. Minn. R. 7861.0210, subp. 45. Minn. R. 7861.0210, subp. 50. • Fraternal organizations. • Religious organizations. • Veterans’ organizations. • “Other” nonprofit organizations. Minn. R. 7861.0210, subp. 39. For the purpose of lawful gambling eligibility, “other” nonprofit organizations meet at least one of the following criteria: IRS – Charities and other Nonprofits. Minn. Stat. ch. 317A. Minnesota Secretary of State. • Have a current letter of tax exemption from the Internal Revenue Service (IRS). • Are incorporated as nonprofit corporations and registered with the Minnesota Office of the Secretary of State. • Are affiliates, subordinates, or chapters of a statewide parent organization that qualifies as a nonprofit. Minn. R. 7861.0220. Gambling Control Board. Minn. Stat. § 349.16, subd. 2. Otherwise eligible organizations may not conduct lawful gambling without first obtaining a license from the state of Minnesota through the Gambling Control Board (Board). To qualify, an organization must: See Section V – C – Gambling managers. • Have at least 15 active members at the time of its initial license application and at least 13 members eligible to vote on gambling matters thereafter. • Have been in existence for the most recent three years preceding application. • Identify a qualified gambling manager. • Not exist for the sole purpose of conducting gambling. Qualified organizations include American Legions, Veterans of Foreign Wars, Moose Lodges, local athletic associations, and churches. Minn. Stat. § 424A.001, subd. 4. LMC information memo, Fire Department Management and Liability Issues. Cities are not eligible organizations. As a result, neither a city nor any city department may conduct lawful gambling. However, while a city fire department is ineligible, a fire relief association may conduct lawful gambling because it is a separately incorporated nonprofit organization within the meaning of the law. 259 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 6 IV. Revenues and expenditures Minn. Stat. § 349.15. Organizations conduct lawful gambling to raise money, but are not free to spend it any way they please. Lawful gambling proceeds may only be used for allowable expenses or lawful purposes. A. Allowable expenses Minn. Stat. § 349.12, subd. 3a. Gambling Control Board, Lawful Gambling Manual, Chapter 12: Allowable Expenses. Allowable expenses include purchases of goods, services, or other items directly related to the conduct of lawful gambling. Advertising expenditures are also allowable expenses, provided the advertisement only publicizes the conduct of lawful gambling by the organization, and lawful gambling profits do not pay for any non-lawful gambling-related content. Minn. Stat. § 349.15, subd. 1. Licensed organizations obtain a rating from the Board based on a comparison between annual lawful purpose expenditures and available profits for the same 12-month period. An organization that expends: • Fifty percent or more of gross profits on lawful purposes will receive a five-star rating. • More than 40 percent but less than 50 percent of gross profits on lawful purposes will receive a four-star rating. • More than 30 percent but less than 40 percent of gross profits on lawful purposes will receive a three-star rating. • More than 20 percent but less than 30 percent of gross profits on lawful purposes will receive a two-star rating. • Less than 20 percent of gross profits on lawful purposes will receive a one-star rating. Minn. Stat. § 349.15, subd. 1. Any organization that fails to obtain at least a three-star rating (or a two- star rating if the organization conducts lawful gambling in a location where the primary business is bingo) will be automatically placed on probation for one year. If the organization is unable to raise its rating after the probationary term, the Board may suspend the organization’s license or impose a civil penalty. Minn. Stat. § 349.15, subd. 1. When determining the appropriate punishment, the Board will consider any “unique factors or extraordinary circumstances” that caused an organization to not meet the minimum rate of profitability, including but not limited to: • The purchase of capital assets necessary to conduct lawful gambling. • Construction that impaired access to gambling premises. • Flooding, tornadoes, or other catastrophes that had a direct impact on the gambling operations. 260 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 7 Minn. Stat. § 349.151, subd. 4. Minn. Stat. § 349.15. Although there are limitations on the penalties the Board may normally impose, civil penalties for violating the expense limitation may be up to $10,000. B. Lawful purposes Minn. Stat. § 349.12, subd. 25. Lawful purposes for which profits from lawful gambling may be expended include: Minn. Stat. § 349.154. • Contributions to nonprofit or festival organizations. • Contributions to individuals or families suffering from poverty, homelessness, or disability. • Contributions to programs recognized by the Department of Human Services for the education, prevention, or treatment of problem gambling. • Contributions to or expenditures on registered or accredited public or private nonprofit educational institutions. • Contributions to an individual, public or private nonprofit educational institution registered with or accredited by this state or any other state, or to a scholarship fund of a nonprofit whose primary mission is to award scholarships, for defraying the cost of education to individuals where the funds are awarded through an open and fair selection process. • Contributions funding activities by an organization or government entity that recognizes military service to the United States, the state of Minnesota, or a community. • Contributions for recreational, community, and athletic facilities and activities intended primarily for persons under age 21, provided that such facilities and activities do not discriminate on the basis of gender, and the organization complies with other statutory requirements. • Payment of federal, state, and local taxes. • Contributions to the United States, the state of Minnesota, or any political subdivision, or any agency or any subdivision thereof, other than a direct contribution to a law enforcement or prosecutorial agency. • Contributions to or expenditures on projects approved by the commissioner of Natural Resources for wildlife management projects that benefit the public at large, grant-in-aid (or other trail) maintenance and grooming, and supplies and training for safety training and education programs coordinated by the Department of Natural Resources. • Nutritional programs, food shelves, and congregate dining rooms primarily for persons who are age 62 or older or disabled. 261 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 8 • Contributions to a community arts organization, or an expenditure to sponsor arts programs in the community, including but not limited to visual, literary, performing, or musical arts. • Contributions to honor an individual’s humanitarian service as demonstrated through philanthropy or volunteerism to the United States, the state of Minnesota, or a local community. Minn. Stat. § 349.12, subd. 25 (c). Minn. Stat. § 471.6151. Gambling Control Board, Lawful Gambling Manual, Chapter 13: Lawful Purpose Expenditures. Lawful gambling profits may not be used for the purpose of influencing the nomination or election of a candidate for public office, promoting or defeating a ballot question, or for influencing the governmental decision- making process. Organizations may not make a contribution to a city with the knowledge that the city intends to use the contribution for a pension or retirement fund, nor may cities use any contributions derived from lawful gambling for the benefit of a pension or retirement fund. While an organization can make contributions to a 501(c)(3) or other entity, it may not if the purpose (or effect) will be noncompliance with lawful purpose restrictions or requirements. V. State regulation Minn. Stat. § 349.151. Minn. R. ch. 7861. Gambling Control Board. The Board has the authority to make rules and regulate lawful gambling to ensure it is conducted in the public’s interest. It issues organization licenses, premises permits, and gambling manager licenses. The Board has the authority to suspend or revoke licenses and permits and may impose civil penalties up to $1,000 for each violation of the state’s gambling laws or rules. A. Organization licenses Minn. Stat. § 349.16. Minn. Stat. § 349.155. Gambling Control Board, Gambling Forms. Organizations must be licensed by the Board to conduct most types of lawful gambling. An organization desiring a gambling license must obtain an application from the Board. If the application complies with all legal requirements, the Board will grant the license. Minn. Stat. § 349.16. Minn. R. 7861.0220. Gambling Control Board, Lawful Gambling Manual, Chapter 1: Organization License. Licenses issued are perpetual and valid unless suspended or revoked by the Board, terminated by the organization, or if the license lapses. A licensed organization must notify the Board within 10 days when any changes in the application information occur. The license, when issued, is not transferable from one organization to another. Minn. Stat. § 349.16, subd. 3a. A license will be considered to have lapsed if the organization does any of the following: Minn. Stat. § 349.167. • Failed to conduct and report any gambling sales activity within seven months from the date of the last gambling activity. • Failed to have a gambling manager as required. • Failed to pay annual license and permit fees. 262 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 9 Minn. Stat. § 349.19 subd. 8. • Surrenders, withdraws, or otherwise terminates the license, and files a termination plan. Minn. Stat. § 349.16, subd. 3a. When a license is determined to have lapsed, the Board may take one of the following actions: Minn. Stat. § 349.155 subd. 5. Minn. Stat. § 349.19 subd. 8. Minn. Stat. § 349.151, subd. 4. Minn. Stat. § 349.151, subd. 7. Minn. Stat. § 349.1641. • Conduct a contested case hearing to revoke or suspend a license. • Require the organization to file a termination plan. • Enter a revocation order as of the date the license was considered lapsed. • Impose a civil penalty. • Order corrective action. • Summarily suspend the license. Minn. Stat. § 349.16, subd. 6. There is an annual fee of $350 for an organization’s license. Organizations that expect to receive less than $100,000 in gross annual receipts may request a waiver of the organization license fees. Minn. Stat. § 349.16, subd. 6a. Minnesota Revenue Lawful Gambling Monthly Tax. An organization must also report and pay to the commissioner of Revenue a monthly regulatory fee of 0.125 percent of the monthly gross receipts from lawful gambling conducted each month. Failing to pay the monthly regulatory fees in a timely manner may result in disciplinary action. B. Premises permits Minn. Stat. § 349.165. Minn. R. 7861.0240. Gambling Control Board Lawful Gambling Manual, Chapter 3: Premises Permits and Leases. An organization applying for a gambling license must also apply for a premises permit to conduct lawful gambling at any specific location. The Board will not grant a license to an organization that has not applied for at least one premises permit. Because premises permits are location-specific, licensed organizations that want to conduct lawful gambling at multiple locations must first obtain a separate premises permit for each place before lawful gambling can occur. Minn. Stat. § 349.213. In re Dead Broke Saddle Club, No. A03-306 (Minn. Ct. App. Jan. 13, 2004) (unpublished opinion). The Board may not issue a premises permit unless the organization submits with its application a resolution from the city council approving the permit. The resolution must have been adopted within 90 days of the date of the application for the new permit. Minn. Stat. § 349.165. Premises permit fees are $150 per year. The premises permit(s) runs concurrently with the organization’s license and is perpetual unless revoked or suspended by the Board, or terminated by the organization. C. Gambling managers Minn. Stat. § 349.167. Minn. R. 7861.0230. The Board will not grant a license unless the applying organization has identified a gambling manager who will be licensed by the Board at the time the organization receives its license. 263 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 10 Gambling Control Board, Lawful Gambling Manual, Chapter 2: Gambling Manager License. Minn. Stat. 349.12 subd. 19. All lawful gambling conducted by a licensed organization must be conducted under the supervision of a licensed gambling manager, someone who has passed the Board’s gambling manager examination and receives continuing education training at least once during each calendar year. The gambling manager must have been an active member of the organization for at least the most recent 90 days at the time of the application for a gambling manager license. The gambling manager is responsible for ensuring that the organization conducts lawful gambling in compliance with all applicable laws and administrative rules. The gambling manager is also responsible for all receipts derived from lawful gambling. Minn. Stat. § 349.167, subd. 2. Upon the death, disability, or termination of the gambling manager, an organization must: • Contact the Board within one business day and establish a plan to replace the gambling manager. • Submit a complete application and fee within four business days. Minn. Stat. § 349.167 subd. 2. Gambling Manager Application. The fee for a gambling manager license is $100. The license runs concurrent with the organization license unless the gambling manager’s license is suspended or revoked by the Board, or terminated by the organization or gambling manager. In addition to the license, the gambling manager must maintain a dishonesty bond in the sum of $10,000 in favor of the organization, conditioned on the faithful performance of the manager’s duties. D. Off-site permits Minn. Stat. § 349.165, subd. 5. Application to Conduct Off- site Gambling. See Section VII - E - Investigation fees. There are limited circumstances where a licensed organization may hold lawful gambling events at a location for which it does not hold a premises permit. Subject to local approval, the Board may issue off-site permits in connection with a county fair, the state fair, a church festival, or a civil celebration. Up to 12 off-site events are allowed each calendar year, and each event is limited to three days. Neither the Board nor the city may charge a fee for issuing an off-site permit. E. Bingo hall licenses A distinct bingo hall license is no longer required in the state of Minnesota. VI. Exclusions and exemptions The state does not license all types of lawful gambling. State law provides exclusions and exemptions for some lawful gambling events. 264 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 11 It is important for cities to know which events are excluded or exempted from state licensing because they may want to regulate these events through local permits. A. Excluded gambling Minn. Stat. § 349.166, subd. 1. The following types of gambling are excluded from state licensing: • Bingo conducted by an organization in conjunction with a county fair, state fair, or a civic celebration for no more than 12 consecutive days. The organization can make no more than four separate applications for activities applied for and approved per calendar year. This exclusion does not apply to linked bingo games. • Bingo conducted by an organization on four or fewer days in a calendar year. This exclusion does not apply to linked bingo games. • Bingo conducted within a nursing home or senior citizens housing project, or by a senior citizens’ organization. This exclusion applies if: • The prizes for a single bingo game do not exceed $10. • Total prizes awarded at a single bingo occasion do not exceed $200. • Only members, or the guests, of the senior citizen organization, nursing home, or housing project are allowed to play. • No compensation is paid to any persons who conduct the bingo game. • A manager is appointed to supervise the bingo. • Raffles conducted by an organization that does not award raffle prizes with a total value in excess of $1,500 in a calendar year or $5,000 if the organization is a 501(c)(3). Minn. R. 7861.0330. Minn. Stat. § 349.213. Application for Exempt Bingo. An organization that conducts the first two types of excluded bingo must register with the Board and obtain prior approval by the local governing body. Registration with the Board is not required for senior citizen or nursing home bingo, or raffles that award less than $1,500 in a calendar year. Minn. Stat. § 349.213. See Local Gambling Permit Application, LMC Model Form. Approving a Lawful Gambling Premises Permit, LMC Model Resolution. Denying a Lawful Gambling Premises Permit, LMC Model Resolution. While the language is subject to interpretation, cities appear to have the authority to require local permits for organizations that conduct the first two types of excluded bingo and raffles with prizes under $1,500 in a calendar year. The raffles do not require registration with the Board. However, the law likely prohibits cities from requiring a local permit to conduct senior citizen or nursing home bingo. 265 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 12 B. Exempted gambling Minn. Stat. § 349.166, subd. 2. Certain lawful gambling events are exempt from the state licensing requirements. Under state law, bingo (except linked bingo games), raffles, paddlewheels, tipboards, and pull-tab operations may be conducted by an organization without a license, if the following conditions are met: Application for Exempt Permit. • The organization conducts lawful gambling on five or fewer days in a calendar year. • The organization does not award more than $50,000 in prizes for lawful gambling in a calendar year. • The organization pays a fee of $100 and submits a Board-prescribed application in writing not less than 30 days before each lawful gambling occasion (the fee increases to $150 if application is postmarked or received less than 30 days before the event). The application must include the date and location of the occasion, the types of lawful gambling to be conducted, and the prizes to be awarded. • The organization notifies the city 30 days before the lawful gambling occasion (60-day notice is required in a city of the first class). • The organization purchases all gambling equipment and supplies from a licensed distributor. • The organization complies with all of the Board’s reporting requirements. Minn. R. 7861.0340. The application submitted to the Board must include local government approval. A currently-licensed organization may not obtain an exemption permit but may once it is no longer licensed to perform lawful gambling. Minn. Stat. § 349.213 subd. 1. See Section VII – A - Local permits. Cities may require organizations that conduct exempted lawful gambling to obtain local permits. The fee for a local permit may not exceed $100. VII. Local regulation Minn. Stat. § 349.213. See Regulating Lawful Gambling, LMC Model Ordinance. While cities may not require state-licensed lawful gambling organizations to obtain local gambling licenses or permits, state law does provide cities the authority to regulate lawful gambling. Cities may adopt gambling regulations that are more stringent than state law or prohibit lawful gambling altogether. A city could restrict the conduct of lawful gambling to certain hours or certain days of the week. A city could prohibit licensed organizations from employing non-members and limit the prizes to be awarded. Minn. Stat. § 349.213. Cities are specifically authorized to: 266 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 13 Minn. Stat. § 349.166. See Local Gambling Permit Application, LMC Model Form. Approving a Lawful Gambling Premises Permit, LMC Model Resolution. Denying a Lawful Gambling Premises Permit, LMC Model Resolution. Minn. Stat. § 349.16, subd. 8. • Require a local permit for the conduct of gambling exempt from state licensing requirements. • Require organizations to make specific expenditures of up to 10 percent of the net profit from lawful gambling. • Require organizations to contribute 10 percent of the net profit from lawful gambling to a fund administered by the city. • Require an organization to expend all or a portion of its expenditures within the cities trade area. • Charge an investigation fee or impose a gambling tax. Minn. Stat. § 349.213, subd. 1(h). A more stringent regulation or prohibition must apply equally to all forms of gambling within the jurisdiction, with one exception: paddlewheels. A city may exclusively prohibit the use of paddlewheels within its jurisdiction. A. Local permits Minn. Stat. § 349.213, subd. 1(b). Section VI – Exclusions and exemptions. Cities may require a local permit for the conduct of lawful gambling exempt from state licensing requirements. The fee for a local permit may not exceed $100. B. Specific expenditures Minn. Stat. § 349.213, subd. 1(d). Cities may require organizations to make specific expenditures of up to 10 percent of net profits derived from lawful gambling but must be careful when enacting such a regulation. Requiring specific expenditures may violate the U.S. Constitution, particularly when the city designates too specific a cause, and approval of a gambling license or permit is conditional on the organization abiding by the regulation. U.S. Const. amend. I. NAACP v. Alabama, 357 U.S. 449, 78 S.Ct.1163 (1958). Wooley v. Maynard, 430 U.S. 705, 97 S.Ct.1428 (1977). The First Amendment prohibits any level of government from making laws that abridge the freedom of speech or the right of people to peaceably assemble. The Supreme Court has held that the First Amendment implies that people shall have a right to freedom of association. The First Amendment also provides some protections from compelled association (requiring an individual to support ideals or beliefs with which he or she disagrees). Int’l Ass’n of Machinists v. Street, 367 U.S. 740, 81 S.Ct. 1784 (1961). Compelling an individual to support an organization or cause that he or she does not agree with is an infringement of that person’s First Amendment rights. It is improper for a city to condition the granting of a benefit (approval of a lawful gambling operation) on the recipient’s relinquishment of a constitutional right (freedom of association). Therefore, a municipal regulation that places a condition for the approval of a gambling license on the organization contributing to a cause it may not support is subject to challenge on constitutional grounds. 267 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 14 Cities should use caution and work with their city attorney before requiring specific expenditures from gambling organizations. C. City-administered funds Minn. Stat. § 349.213, subd. 1(f). Annual Report -10% Lawful Gambling Contribution Fund. See Regulating Lawful Gambling, LMC Model Ordinance. A city may accept donations from a gambling organization but may not require a donation as a condition of license approval or permit issuance. A city can by ordinance require organizations to contribute up to 10 percent per year of their net profits derived from lawful gambling to a fund administered by the city. A report must be submitted to the Board by March 15 of each year. The city must also acknowledge financial contributions of organizations conducting lawful gambling to the community and to the recipients of the funds. The acknowledgement may occur in communications about the funds as well as in the distribution of the funds. Minn. Stat. § 349.12, subd. 7a. Minn. Stat. § 349.12, subd. 25(10). The city may only disburse the funds for charitable contributions. Therefore, although a city may not require direct payments from a gambling organization to any city department, a city can establish a fund and disburse the proceeds of that fund to a city department for lawful purposes, such as a city park system. No direct contributions or payments of gambling money may be made to a law enforcement or prosecutorial agency. D. Trade areas Minn. Stat. § 349.213, subd. 1(g). See Regulating Lawful Gambling, LMC Model Ordinance. A city may by ordinance require those organizations conducting lawful gambling within its jurisdiction to expend all or a portion of their expenditures on lawful purposes conducted or located within a city’s trade area. The ordinance must define the trade area. A city’s trade area must include every city and township contiguous to the defining city. The ordinance must also specify the percentage of expenditures an organization must make within the trade area. E. Investigation fees Minn. Stat. § 349.16, subd. 8. A city may assess an annual investigation fee on organizations that apply for state-issued premises permits or otherwise conduct lawful gambling operations within the jurisdiction. The fee may not exceed: • $500 in cities of the first class. • $250 in cities of the second class. • $100 in all other cities. Minn. Stat. § 349.213, subd. 3. Cities that charge an investigation fee may not impose a local gambling tax. 268 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 15 F. Local gambling tax Minn. Stat. § 297E.02. Minn. Stat. § 349.213, subd. 3. With certain exceptions, the state generally levies an 8.5 percent tax on lawful gambling. A city may impose a local gambling tax on licensed organizations of up to 3 percent per year of the gross receipts from gambling, less prizes actually paid out. The tax must only raise the revenue necessary to cover the cost of regulating lawful gambling. A city may not use these tax revenues for any other purpose. Thus, if regulating lawful gambling only costs the city an amount equal to 2.5 percent of the gambling revenues, then the city may only impose a tax of 2.5 percent, not the 3 percent maximum. Lawful Gambling Regulatory Tax Annual Report. The city must file an annual report with the Board by March 15 showing the amount of revenue raised by the tax and the use of the tax proceeds. Copies of the required form are available from the Board. All documents pertaining to local site inspections, fines, penalties or other corrective actions must be shared with the Board within 30 days of filing. Minn. Stat. § 349.213, subd. 3. If a city imposes a gambling tax, it may not assess an investigation fee against lawful gambling organizations. VIII. Gambling in the municipal liquor store See LMC Information Memo, Operating a Municipal Liquor Store. Many cities lease space in the municipal liquor store to lawful gambling organizations because of the additional business and revenue gambling can draw. However, allowing gambling in the municipal liquor store raises a number of questions that should be resolved before city property is used for lawful gambling. IX. High school raffles Minn. Stat. § 609.761, subd. 5. School districts, or nonprofit organizations created primarily to support the programs of a school district, may conduct raffles if: • Raffle tickets are sold, and a drawing is conducted only at a high school event sponsored by the school district. • All raffle tickets are sold for the same price. • Raffle tickets are sold only to people 18 years of age or older attending the event. • The drawing is held during or immediately after the conclusion of the event. • Half the gross receipts from the sale of tickets are awarded as prizes for the raffle, and the remaining half may only be used to defray the school district’s costs of sending event participants to high school activities held at other locations. 269 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 16 Minn. Stat. § 609.761, subd. 5(5). If a school district’s (or nonprofit’s) gross receipts from the conduct of raffles exceeds $12,000 in a calendar year or $5,000 in a single raffle, it must report the gross receipts received, the total expenses, total prizes, and an accounting of expenditures to the Board annually. Because high school raffles are outside the lawful gambling chapter, and state law dedicates all of the receipts to specific purposes, cities probably do not have authority to regulate these activities. Cities that wish to regulate gambling conducted at high school events should consult their city attorney. X. Liquor raffles Minn. Stat. § 340A.707. A nonprofit organization conducting a silent auction, raffle, or other fundraising event may conduct live, on-premises auctions or raffles of wine, beer, or intoxicating liquors—provided that the funds from the auction or raffle are dedicated to the charitable purposes of the nonprofit organization, that such auctions or raffles are limited to not more than six occasions per year, and that the alcohol may only be auctioned or raffled to persons who demonstrate they are 21 years of age or older and do not show signs of obvious intoxication. An organization that intends to award a liquor prize as part of a raffle must qualify as a nonprofit under Minnesota Statutes and Rules, and would be subject to the same local and state regulations as any other raffle. Cities with questions concerning their role regulating these events should consult their city attorney or the state Alcohol and Gambling Enforcement Division. XI. Enforcement Lawful gambling benefits cities by providing entertainment for citizens and raising revenues to support worthy purposes. However, because of the large sums of money involved in lawful gambling, there is great potential for unlawful activity. Illegal gambling activity could result in loss of faith in the integrity of lawful gambling, defrauded citizens and organizations, and even organized crime. Cities must work with lawful gambling organizations and state agencies to ensure lawful gambling continues to have a positive impact upon the community. Gambling Control Board. The Legislature created the Gambling Control Board to maintain the integrity of lawful gambling through licensing and regulation. A city that believes an organization conducting lawful gambling is not complying with the lawful gambling laws should contact the Board for assistance. 270 RELEVANT LINKS: League of Minnesota Cities Information Memo: 5/16/2022 Lawful Gambling Page 17 Department of Public Safety’s Alcohol and Gambling Enforcement Division. The Department of Public Safety’s Alcohol and Gambling Enforcement Division investigates allegations of criminal conduct related to all forms of gambling. If a city suspects that criminal gambling laws are being violated, it should contact Alcohol and Gambling Enforcement. 271 ARTICLE V. - GAMBLING Sec. 10-150. - Lawful gambling permitted. Lawful gambling conducted pursuant to M.S. ch. 349, is authorized within the city and shall be operated in accordance with the terms and conditions specified in this article, other applicable provisions of the City Code, and state and federal laws and regulations. (Ord. No. 156, § 1, 10-28-91) Sec. 10-151. - Authorized organizations. An organization shall not be eligible to conduct lawful gambling in the city unless it meets the qualification in M.S. § 349.16, subd. 2. (Ord. No. 156, § 1, 10-28-91; Ord. No. 371, § 16, 4-12-04) Sec. 10-152. - Distribution of proceeds. (a) Each organization licensed to conduct gambling within the city shall contribute to the city, for distribution by the city for lawful purposes, at least ten percent of the organization's net profits derived from lawful gambling. For purposes of this section, net profits are profits less amounts expended for allowable expenses. (b) Each organization conducting lawful gambling within the city must expend at least 50 percent of its net profits derived from lawful gambling on lawful purposes conducted or located within the city or any municipality contiguous to the city. The contribution required in subsection (a) above shall be considered as part of the 50 percent expenditure. (c) An organization that conducts gambling on fewer than five days in a calendar year is exempt from the requirements of this section. (Ord. No. 156, § 1, 10-28-91; Ord. No. 371, § 17, 4-12-04) Sec. 10-153. - Filing of records; investigations. (a) Every organization licensed to conduct gambling in the city shall file with the city manager or city manager's designee, upon request, all records and reports required to be filed within the state gambling control board pursuant to M.S. ch. 349, and the rules and regulations promulgated thereunder. (b) Each organization licensed to conduct gambling in the city shall complete the city's investigation form and submit any additional information required by the city. (c) Any organization leasing premises for the conducting of lawful gambling shall, upon request from the city manager or city manager's designee, file with the city a copy of the lease within one week after execution of the lease. The lease shall not provide for rental payments based on a percentage of receipts or profits from lawful gambling. (d) Every gambling event in the city conducted by an organization under state license shall be open to inspection by city employees and the county sheriff's department. 272 (e) The city may inspect, at any reasonable time without notice or search warrant, all records of a licensed organization required to be maintained by the state gambling control board. (Ord. No. 156, § 1, 10-28-91; Ord. No. 298, § 2, 2-14-00) Sec. 10-154. - Qualifications. The city council shall not adopt a resolution approving a premises permit or bingo hall license from any applicant which has an officer, director, or other person in a supervisory or management position, who: (1) Has ever been convicted of a felony; (2) Has ever been convicted of a crime involving gambling; (3) Is not of good moral character and repute; (4) Has ever been convicted of (i) assault, (ii) a criminal violation involving the use of a firearm, or (iii) making terroristic threats; or (5) Owes delinquent local, state, or federal taxes, or is delinquent on any other city bill. (6) Is in violation of any land use or zoning ordinance including the premises proposed to be licensed. (Ord. No. 156, § 1, 10-28-91) Secs. 10-155—10-159. - Reserved. 273 City Council Item October 9, 2023 Item Christie Larson, Southern Valley Alliance - Domestic Violence Awareness Month File No.Item No: E.1 Agenda Section VISITOR PRESENTATIONS Prepared By Kim Meuwissen, City Clerk Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 274 City Council Item October 9, 2023 Item Resolution 2023-XX: Adopt Resolution Approving Vacation of Public Drainage and Utility Easements Within Lot 1, Block 1, and Lot 2, Block 1, Paws Claws and Hooves Addition File No.Planning Case #2022-04A Item No: F.1 Agenda Section PUBLIC HEARINGS Prepared By Erik Henricksen, Project Engineer Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council adopts a resolution approving the vacation of public drainage and utility easements within Lot 1, Block 1, and Lot 2, Block 1, Paws Claws and Hooves Addition." Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY In conjunction with the Site Plan approval for RSI Marine, the applicant is requesting vacation of existing public drainage and utility easements over Lot 1, Block 1, and Lot 2, Block 1, originally dedicated and recorded with the platting of Paws Claws and Hooves Addition in 2005. BACKGROUND The City Council approved a PUD rezoning, site plan, and variance approval in association with Planning Case #2022-04A, otherwise known as RSI Marine. As conditioned with this approval, the applicant was required to vacate the existing public drainage and utility easements associated with the property prior to the lot consolidation and to subsequently record new public drainage and utility easements as depicted on the attached resolution in order to conform with Chanhassen City Code and to encumber public utilities being brought into the site. 275 DISCUSSION The property owner is requesting the city vacate public drainage and utility easements within Lot 1, Block 1, and Lot 2, Block 1, as platted with Paws Claws and Hooves Addition in 2005. New public drainage and utility easements are being proposed to be re-recorded concurrently with the lot combination, as depicted in Exhibit A of the attached resolution. Staff has reviewed the vacation and finds no need for the existing drainage and utility easements as depicted in the attached exhibits and believes the proposed drainage and utility easements are appropriate for this site as they will conform to city ordinance and adequately encumber all public improvements proposed with the development. The resolution is conditioned such that the vacation will be recorded simultaneously with the recording of the new public drainage and utility easements, as depicted in Exhibit A of the resolution. BUDGET N/A RECOMMENDATION Staff recommends adoption of a resolution granting the vacation of the public drainage and utility easements within Lot 1, Block 1, and Lot 2, Block 1, Paws Claws and Hooves Addition. ATTACHMENTS Resolution Vacation Exhibit & Description Application for Development Review RSI Marine - Statement of need Affidavit of Mailed Public Hearing Notice Proposed Public Drainage and Utility Easement Paws Claws and Hooves Plat (2005) 276 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE:October 9, 2023 RESOLUTION NO:2023-XX MOTION BY:SECONDED BY: RESOLUTION VACATING PLATTED PUBLIC DRAINAGE AND UTILITY EASEMENTS WITHIN LOT 1, BLOCK 1, AND LOT 2, BLOCK 1, PAWS CLAWS AND HOOVES ADDITION WHEREAS,RSI Marine & Motorsports, LLC (“Applicant”) has applied for vacation of a portion of the platted public drainage and utility easements legally described as follows: All those drainage and utility easements, originally dedicated on the recorded plat of PAWS CLAWS AND HOOVES ADDITION, Carver County, Minnesota, and now to be vacated, which lie within Lot 1, Block 1, said plat, Excepting Parcel 1C, and Parcel 1D as shown on CARVER COUNTY RIGHT OF WAY PLAT NO. 29, Carver County, Minnesota, And All those drainage and utility easements, originally dedicated on the recorded plat of PAWS CLAWS AND HOOVES ADDITION, Carver County, Minnesota, and now to be vacated, which lie within Lot 2, Block 1, said plat, Excepting Parcel 1A, and Parcel 1B as shown on CARVER COUNTY RIGHT OF WAY PLAT NO. 29, Carver County, Minnesota (“Easements”); and WHEREAS, pursuant to Minnesota Statutes § 412.851, the City Council of the City of Chanhassen has conducted a hearing preceded by the statutorily required two (2) weeks published and posted notice and mailed notice to the abutting property owners to consider the vacation of the Easements; and WHEREAS, following the hearing and consideration of the proposed vacation, the City Council finds that the Easements are not needed for public purposes. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Chanhassen City Council: 1. The Easements are hereby vacated conditioned upon the (a) Applicant granting the City drainage and utility easements as legally described in Exhibit A attached hereto and (b) recording of this Resolution. 2. The vacation shall not affect the authority of any person, corporation, or municipality owning or controlling the electric or telephone poles and lines, gas lines, sanitary and storm sewer lines, water pipes, mains, hydrants, and natural drainage areas thereon or thereunder, to continue to maintain the same or to enter upon such way or portion thereof vacated to maintain, repair, replace, remove, or otherwise attend thereof. 277 2 3. The City Clerk shall transmit a certified copy of this Resolution to the County Auditor and County Recorder subject to the condition in Paragraph 1 of this Resolution. PASSED AND ADOPTED by the Chanhassen City Council this 9thday of October, 2023. ATTEST: Kim Meuwissen, City Clerk Elise Ryan, Mayor YES NO ABSENT 278 3 EXHIBIT A Legal Description of Drainage and Utility Easements 279 All those drainage and utility easements, originally dedicated on the recorded plat of PAWS CLAWS AND HOOVES ADDITION, Carver County, Minnesota, and now to be vacated, which lie within Lot 1, BLock 1, said plat, Excepting Parcel 1C and Parcel 1D as shown on CARVER COUNTY RIGHT OF WAY PLAT NO. 29, Carver County, Minnesota And All those drainage and utility easements, originally dedicated on the recorded plat of PAWS CLAWS AND HOOVES ADDITION, Carver County, Minnesota, and now to be vacated, which lie within Lot 2, BLock 1, said plat, Excepting Parcel 1A and Parcel 1B as shown on CARVER COUNTY RIGHT OF WAY PLAT NO. 29, Carver County, Minnesota I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly licensed Professional Land Surveyor under the laws of the State of Minnesota. Signed this 26th day of January, 2022 For: James R. Hill, Inc. By: Marcus F. Hampton, Land Surveyor, MN License No. 47481 SKETCH & DESCRIPTION FOR: RSI MARINE & MOTORSPORTS, LLC EASEMENT VACATION James R. Hill, Inc. 2999 WEST C.R. 42, SUITE 100, BURNSVILLE, MN 55306 PHONE: 952.890.6044 www.jrhinc.com PLANNERS / ENGINEERS / SURVEYORS'RAWN BY'ATEREVISIONSPLM1/27/2022CA' )ILEPRO-ECT NO.PAGE 1 O) 223953vac.dwg23953-00280 EASEMENT VACATION SKETCH & DESCRIPTION FOR: RSI MARINE & MOTORSPORTS, LLC Page 2 of 2 James R. Hill, Inc. Scale: 1"=200'PROJECT NO. 23953vac281 COMMUNITY DEVELOPMENT DEPARTMENT Plannrng Division - 7700 Market Boulevard Mailing Address - P.O. Box 147. Chanhassen, MN 55317 Phone (952) ?27 -1100 tFax. (9521227-1110 Submrtlal Date A--oq /14 CITY OT CIIAI'IIIASSIN APPLICATION FOR DEVELOPMENT REVIEW PC Date cc oate ?l (Refer lo lha approptiate Application Checklist lot rcquired sobmiftal inlomalion lhat l,r,ust accompany this application) E Comprehensive Plan Amendment. ................. E Minor MUSA line for failing on-site sewers ! Conditional Use Permit (CUP) n Single-FamilyResidence n Att others................ E Subdivision (SUB) E Create 3 lots or less E Create over 3 lots ....... . ......( tors) ! Metes & Bounds (2 lots) E Consolidate Lots............ . ... 1<e,rOt Un ,intitrl $600 $100 $325 s425 sTso A s 100$500 as150 ns[,,|,ilhl s100 ! lnterim Use Permit (lUP) ! ln conjunction with Single-Family Residence.. $325 n A others...... .. .... .. $425 D Rezoning (REZ) El Planned Unit Development (PUD) . E Minor Amendment to existing PUD E Lot Line Ad,iustment............. .E Fr"riLt l--.. -. (lncludes $450 escrow for attorney costs). 'Additional egcrow may be requited for other applications through the developmenl contract. Vacataon of Easements/Right-of-way (VAC) (Addational lecordlng fees may apply) Vanance (VAR) .. ..... Wetland Alteration Permit (WAP) I Single-FamilyResidence ! Att others 5300 $200 $150 $275 $100 $500 E A[ others...... E Sign Plan Review... fl site Plan Review (SPR) tA ! Administrative .. -................ t...... (_ thousand square feet) 'lnclude number of CllSlDq employees 'lnc'lde number of 4ql4 employees E Resrdential Orstflcts..... ... .. . Plus $5 per dwelling unit (- Commercial/lndustrial Districts' ..... .. . $500 Plus $10 per 1,000 square feet ot ouiroin! areJ--- U zoning APpeal D Zonlng Ordinance Amendment (ZOA) !qIE: When multiple appllcations are p.ocessed concur.eotly' the approp.iate fee shall be charged for each application. E Notification Sign {c,ty ro instattand remove) " $200 ! Property Owners' LiSt with in 500' lcrty to generate afler pre-app[caton meetrig) . "" '53peraddress(- addresses) ...... .......... s500 units) plv)E Escrow for Recording Documents (check all that n Conditional Use Permit E vacation I Metes & Bounds Subdivision (3 docs.) lnterim Use Permit E Variance D Easements (- easements) S50 Per document fl Site Plan Agreement E Wetland Alterataon Permit a f] Deeds TOTAL FEE:t Description of Proposal: Construction ot cold siorage building and entrance otf of Flying Cloud drive with required site imProvements Property Address or Location 1 O52O GREAT PLAIN BLVD Legal Description Lot 1&2 of Paws & Hooves Addition Parcel # 8.3 3 Wetlands Present?E ves nuo Requested ZoningFringe Business District (BF)Planned Unit Development (PUD) Present Land Use Designation Commercial vacant Total Acreage. Present Zoning Section 1: Application Type (check all that apply) Section 2: Required lnformation ECnecf box if separate narrative is attached Existing Use of Property ...$300 1lrclzz tl,ulr-6o.oayReviewDare qf 4 ZZ- Requested Land Use Designation:Select One 282 Section 3: Proparty Ownor and Appllcant lnformatlon APPLICANT OTHER THAN PROPERTY OUIINER: ln signing this applEation, l, as applksnl represent to have obtained authonzation from the property owne, to file this application I agree to be bound by conditions of aPproval, subject ooly to the right to obiecl at the hearings on the application or during the appeal penod lf lhis application has not been slgned by the property owner, I have attaahed separaie documentation of full legal capacity to file the apdi€alion This application shoulrt-be irocesseO in my name and I am the party whorn the City should contact regarding any mattet p€rtaining to this application I will keep misetf infonned of the deadiines for submission of material and the progress ol 6is applbation l furiher untterstand th;t additional te€s may be charged tor consulting fees, feasibility studies, etc. with an estimate prior to any authonza$on to proceed with the studi I cerlit that the information and exhibits submitted are true and correcl. Name Address' Name RSI Marine Address 1533 3rd Ave W Cityistate/Zip Emaill Shakopee rob@rsima com Sign City/State/Zip Email: Signature: PROJECT ENGINEER (if aPPlicable) James R Hill.lnc Address 2999 w county road 42 fl1OO City/Stat€r'Zp Bumsvill€. mn 55306 Email igcooper@irhinc.com . Rob Scfiatzl€ (es2) 23$2084 (612) 839-9990 5t5t22 . Joel G Coop€r (952) 89G6044 (612) s0&e$0 Contact Phone: PROPERTY OlilNER: ln signing this application, l, as property owner, have full legal capacity to, and hereby do, authorize the filing of this ai'plidtion. I understand thatconditions of approval are binding and agree lo be bound by those condtions, subjeit only to ih; right to object at the hearings or during the appeal periods. I will ke€P mysetf informed ot the deadtines for submission of materialind the progrestof his application. I turther understand that a(Hitional tees may be charged for consulting Ees, leasibility studies. etc. wilh an estimate prior to any authorization to proceed with the study. icertify that the information and exhibits submitted are lrue and correc't Contact Phone: Cell: Fax: Dato Cell Fax: Date Cell Fax This application must be compleled in full and musl b€ accompanied by all infonnalion and plans required by ,ootiJ[t" Cit, Ortinance provisions. Before filing this application, refer to the appoPrbte A0d*xtion Checklist "Ii "oneryiir' tne ptanning Depaturcnt to determine the specific ordinance and applicable Procedural requiremenE and fees. A determination of completeness of the application shall be.made within 15 business days of applioation submittal. A ;-iti,; ;;G;;pptication oeficiencies ahall be mailed to the applicant within 15 business days ot applbation. Contract Phona: Section4: Notificalion lnfotmation I Mail€d Pap€r CoPy n Maabd Paper copy fl Mailed Paper CoPY E tvtaiteo Paper copy INSTRUCTIONS TO APPLICAI{T: Complete all necessary. device-TRtNrFdRM anAAelrver to city along witfi required form fields. then sebct SAVE FORH to save a copy to your docurEnts and payment SUBMIT FORM b send a digital SAVE FOR PRINT FORrrt SUBTTT FORi' ! Property Owner Vra. E Email E Appli:anl Vra: Ll Email fl Engineer Vra: Ll Email D Otre* Vra U Emdl Vlrho Bhould receive coPios of staft T.potts?'O'ift.r Cont ct lrlo E{on: Nam6: Addressl Email: Name copy to the ctty for Procesing 283 2999 WEST COUNTY ROAD 42, SUITE 100 BURNSVILLE, MINNESOTA 55306 PH. (952) 890-6044 FAX (952) 890-6244 JAMES R. HILL , INC. PLANNERS ENGINEERS SURVEYORS Serving our Clients since 1976 August 23, 2023 STATEMENT OF NEED The need for the vacation is to eliminate the easement along the property line that is to be removed so that the two (2) parcels can become one parcel and the proposed building can be constructed across the abandoned property line. There are no public utilities within the easement between the two (2) parcels, 284 CITY OF CHANHASSEN AFFIDAVIT OF MAILING NOTICE STATE OF MINNESOTA) )ss COLINTY OF CARVER ) I, Kim T. Meuwissen, being first duly sworn, on oath deposes that she is and was on September 25,2023, the duly qualified and acting City Clerk of the City of Chanhassen, Minnesota; that on said date she caused to be mailed a copy of the attached Notice of Public Hearing for the Vacation of a Portion of Platted Public Drainage & Utility Easements Located at 10520 Great Plains Blvd, Chanhassen to the persons named on attached Exhibit "A", by enclosing a copy of said notice in an envelope addressed to such owner, and depositing the envelopes addressed to all such owners in the United States mail with postage fully prepaid thereon; that the names and addresses of such owners were those appearing as such by the records of the County Treasurer, Carver and Hennepin Counties, Minnesota, and by other appropriate records Kim T Subscribed and sworn to before me this 24 day of *qk-nbe-rr ,2023 STACY KERBER OSEN Notary Publlc-Minnesota My Commlssion Exdro3 Jan 31,2027 blic 285 CITY OF CHANHASSEN CARVER AND HENNEPIN COLTNTIES, MINNESOTA NOTICE OF PUBLIC HEARING FOR VACATION OF PLATTED PUBLIC DRAINAGE & UTILITY EASEMENTS WITHIN LOT 1, BLOCK I AND LOT 2, BLOCK 1, PAWS CLAWS AND HOOVES ADDITION NOTICE IS HEREBY GIVEN that the Chanhassen City Council will hold a public hearing on Monday, October 9,2023, at7:00 p.m. in the Council Chambers at Chanhassen City Hall,7700 Market Boulevard, pursuant to Minnesota Statutes S 412.851 to consider the vacation of all platted public drainage and utility easements within Lot l, Block i and Lot 2, Block 1 of Paws Claws and Hooves Addition, Chanhassen, and legally described as follows: iii? \ \i ,s' ,r ,c- rf '3 \*d llt' c(t *",': -," ?;-.).' '..'i'rL ... .4, ,'"- J" ' ' ':l':l'"' "' ' :"' . ^", ".J.; - iii;' ' ' 11'.1i1 Il-.-- I I All those drainage and utility easements, originally dedicated on the recorded plat of PAWS CLAWS AND HOOVES ADDITION, Carver County, Minnesota, and now to be vacated, which lie within Lot 1, Block l, said plat, Excepting Parcel lC and Parcel lD as shown on CARVER COUNTY RIGHT OF WAY PLAT NO. 29, Carver County, Minnesota And All those drainage and utility easements, originally dedicated on the .c' r1Ll i 1 286 recorded plat of PAWS CLAWS AND HOOVES ADDITION, Carver County, Minnesota, and now to be vacated, which lie within Lot2, Block 1, said plat, Excepting Parcel 1A and Parcel 18 as shown on CARVER COLINTY RIGHT OF WAY PLAT NO. 29, Carver County, Minnesota All interested persons are invited to attend this public hearing and express their opinions with respect to this proposal. Erik R. Henricksen, PE, Project Engineer Phone: 952-227-1165 (Publish in the Chanhassen Villoger on Septemb er 28 & October 5,2023) 287 MICHAEL S SPIESS 470 FLYING CLOUD DR cHASKA, r\4N 55318-9533 CHRISTOPHER R KNUTSON 575 LAKOTA LN cHASKA, MN 55318-9455 JUSTIN A WILLIAMS 565 LAKOTA LN CHASKA, MN 55318- CITY OF CHANHASSEN PO BOX 147 cHANHASSEN, MN 55317-0147 CARVER COUNTY 602 FOURTH ST E cHASKA, MN 55318-2102 STATE OF MINNESOTA . DNR 5OO LAFAYETTE RD ST PAUL, MN 55155.4030 THE WESTERN MOTEL LLC 15505 VILLAGE WOODS DR EDEN PRAIRIE, MN 55347.1439 JOHN C SCHWANKE 595 LAKOTA LN CHASKA, MN 55318-9456 JAMES A & BONNIE B SWANSEN 615 LAKOTA LN cHASKA, MN 553X8-9455 RSI MARINE & MOTOR SPORTS LLC 1533 3RD AVE W SHAKOPEE, MN 55379- 608 FLYING CLOUD LLC 608 FLYING CLOUD DR cHASKA, MN 55318-9502 615 FLYING CLOUD DRIVE LLC 2025 NICOLLET AVE #203 MtNNEAPOLIS, MN 55404-2552 P R KELLY PROPERTIES LLC ].3991 KENSINGTON AVE NE PRIOR LAKE, MN 55372- ECO REAL ESTATE HOLDINGS LLC PO BOX 1199 cLARK, CO 80428. BEATRICE I ZWIERS IRREV TRUST 11111 DEUCE RD ELKO, MN 55020-9591 RILEY PURGATORY BLF CRK WS 18681 LAKE DR E CHANHASSEN, MN 55317- LARRY HOPFENSPIRGER 2720 QUAKER LN N PLYMOUTH, MN 55441.3285 288 I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly licensed Professional Land Surveyor under the laws of the State of Minnesota. Signed this 23rd day of May, 2023 For: James R. Hill, Inc. By: Marcus F. Hampton, Land Surveyor, MN License No. 47481 SKETCH & DESCRIPTION FOR: RSI MARINE & MOTORSPORTS, LLC James R. Hill, Inc. 2999 WEST C.R. 42, SUITE 100, BURNSVILLE, MN 55306 PHONE: 952.890.6044 www.jrhinc.com PLANNERS / ENGINEERS / SURVEYORS'RAWN BY'ATEREVISIONSPLM5/23/2023CA' )ILEPRO-ECT NO.PAGE 1 O) 223953skt.dwg23953-00An easement for drainage and utility purposes over, under and across the northerly 10.00 feet of Lots 1 and 2, Block 1, PAWS CLAWS AND HOOVES ADDITION, according to the recorded plat thereof, Carver County, Minnesota, lying easterly of the easterly right of way line of C.S.A.H. No. 101 per CARVER COUNTY RIGHT OF WAY PLAT NO. 29, according to the recorded plat thereof, Carver County, Minnesota; together with an easement for drainage and utility purposes over, under and across that part of said Lots 1 and 2, Block 1 lying 10.00 easterly and parallel with said easterly right of way line of C.S.A.H. No. 101; together with an easement for drainage and utility purposes over, under and across that part of said Lot 2, Block 1 lying easterly of the following described line: Commencing at the southeasterly corner of said Lot 2; thence on an assumed bearing of South 71 degrees 41 minutes 29 seconds West, along the south line of said Lot 2, a distance of 38.21 feet to the point of beginning of the line to be described; thence North 22 degrees 07 minutes 25 seconds West a distance of 198.44 feet; thence North 71 degrees 41 minutes 29 seconds East a distance of 39.60 feet; thence North 18 degrees 50 minutes 06 seconds West a distance of 262.21 feet to the northerly line of said Lot 2, and said described line there terminating; together with an easement for drainage and utility purposes over, under and across that part of said Lot 2, Block 1 lying southerly of the following described line: Commencing at the southeasterly corner of said Lot 2; thence North 18 degrees 50 minutes 06 seconds West, along an easterly line of said Lot 2, a distance of 30.00 feet to the point of beginning of the line to be described; thence South 71 degrees 41 minutes 29 seconds West a distance of 559.63 feet; thence South 19 degrees 48 minutes 34 seconds West a distance of 25.42 feet; thence South 71 degrees 41 minutes 29 seconds West a distance of 130.83 feet to said easterly right of way line of C.S.A.H. No. 101, and said described line there terminating; together with an 20.00 foot wide easement for drainage and utility purposes over, under and across said Lots 1 and 2, Block 1. The centerline of said easement is described as follows: Commencing at the southeasterly corner of said Lot 2; thence North 18 degrees 50 minutes 06 seconds West, along an easterly line of said Lot 2, a distance of 188.02 feet to the point of beginning of the centerline to be described; thence South 71 degrees 40 minutes 59 seconds West a distance of 548.50 feet; thence North 65 degrees 15 minutes 30 seconds West a distance of 22.52 feet; thence North 18 degrees 12 minutes 18 seconds West a distance of 41.01 feet, and said centerline there terminating. DRAINAGE AND UTILITY EASEMENTS 289 DRAINAGE AND UTILITY EASEMENTS SKETCH & DESCRIPTION FOR: RSI MARINE & MOTORSPORTS, LLC Page 2 of 2 James R. Hill, Inc. Scale: 1"=200'PROJECT NO. 23953skt290 291 292