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HomeMy WebLinkAboutOctober 01, 2024 Council PacketSHAKOPEE Shakopee City Council Regular Meeting Tuesday, October 1, 2024 7:00 PM City Hall, 485 Gorman Street Vision: Shakopee is a place where people want to be! A distinctive river town, with a multitude of business, cultural and recreational opportunities in a safe, welcoming, and attractive environment for residents and visitors Mission: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost-effectively, with integrity and transparency. 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Special Presentations 4.a Southern Valley Alliance Update Adopt proclamation recognizing October as Domestic Violence Awareness Month. 2024 Proclamation.pdf 5. Approval of Agenda 6. Consent Agenda These items are considered routine and will be enacted by one motion. There will be no separate discussion of these unless a council member or staff requests, in which event the item will be removed from the consent agenda for separate discussion & action. 6.a City Council Meeting Minutes of September 17, 2024. Approve the City Council meeting minutes of September 17, 2024. September 17, 2024 6.b Approve On -Sale and Sunday Liquor licenses for Soi21 Asian Bistro. Approve on -sale and Sunday liquor licenses for Soi21 Asian Bistro, located at 8048 Old Carriage Court. 6.c Approve On -Sale and Sunday Liquor Licenses for Do & Huynh Inc. dba Bun Mee Vietnamese Baguette Express. Approve On -Sale and Sunday Liquor Licenses for Do & Huynh Inc. dba Bun Mee Vietnamese Baguette Express, located at 4135 Dean Lakes Blvd. 6.d Accept Quotes and Award Contract for the Horizon Drive Storm Sewer Reconstruction Project. Accept quotes and award a contract to Minnesota Dirtworks, Inc., for the Horizon Drive Storm Sewer Reconstruction Project, in the amount of $57,678.14. CIP Summary Sheet.pdf Quote Tabulation.pdf Project Location.pdf Horizon Drive Contract.pdf 6.e Approve a Special Event Permit and a Temporary Liquor License for the Shakopee Chamber & Visitors Bureau Holiday Fest Event, being held on December 7, 2024. Approve the requested street closure, suspension of City Code 114.11 and a temporary liquor License for the Holiday Fest event, hosted by the Shakopee Chamber & Visitors Bureau. 20240926_102550.pdf 6.f Declaration of surplus property Declare equipment as surplus and authorize its disposal IT Equip.pdf 6.g Approval request to declare abandoned property as surplus. The Shakopee Police Department is seeking council approval to declare the listed property as surplus and authorize its administrative disposal. Surplus Property-1024.pdf 6.h Encroachment Agreement between City of Shakopee and Midway Hospitality LLC (Culvers) for a retaining wall in a drainage and utility easement. Make a motion to approve Encroachment Agreement. 22-0271.00 Culvers Shakopee RLS_04242024.pdf Encroachment Agreement --Tract B--Execution Version (9-16-24).pdf 6.i 2025 Kavira Health Benefit Approve Kavira Health Benefit contract, as requested Kavira_City of Shakopee Corporate Agreement_2024.pdf 7. Public Comment Individuals may address the City Council about any item not on the regular agenda. Speakers are requested to come to the center table, state their name and address for the clerk's record, and limit their remarks to three minutes. The City Council will not take official action on items discussed at this time, but may refer the matter to staff for a follow up report or direct that matter be scheduled on an upcoming agenda. 7.a Legislative Recap by Representative Bakeberg None 8. Business removed from consent agenda 9. Public Hearings 10. Recess for Economic Development Authority Meeting 11. Reconvene 12. General Business 13. Workshop 14. Reports Liaison and Administration 14.b Liaison and Administration N/A 15. Other Business 16. Adjournment to Tuesday, October 15, 2024 at 7:00 pm WILAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 4.a October 1, 2024 Southern Valley Alliance Update Chelsea Petersen, Assistant City Administrator Action to be considered: Adopt proclamation recognizing October as Domestic Violence Awareness Month. Motion Type: Simple Majority Background: Representatives from Southern Valley Alliance will present an update on the previous year's activities, and request that City Council consider a proclamation to raise awareness during Domestic Violence Awareness Month. Recommendation: Adopt proclamation recognizing October as Domestic Violence Awareness Month. Budget Impact: N/A Attachments: 2024 Proclamation.pdf OFFICIAL PROCLAMATION A PROCLAMATION OF THE CITY OF SHAKOPEE DECLARING OCTOBER AS DOMESTIC VIOLENCE AWARENESS MONTH The City of Shakopee recognizes the critical work being done by domestic violence advocates in service of survivors and victims of domestic abuse. I encourage all citizens to actively engage in the work and events sponsored by Southern Valley Alliance and other organizations working toward the elimination of domestic violence. WHEREAS, 1 in 4 women and 1 in 7 men in the US have been the victim of severe physical violence by an intimate partner in their lifetime; WHEREAS, more than 23,000 calls are placed to domestic violence hotlines nationwide every day; WHEREAS, calls to our local domestic abuse crisis line, Southern Valley Alliance, have increased 23% in the last year; WHEREAS, the impact of domestic violence is felt not only by individuals and families, but communities and the nation as a whole; WHEREAS, Shakopee joins with others across the state of Minnesota, and nationwide, in supporting domestic violence victims and survivors, the advocates and organizations who serve them, and holding offenders accountable. NOW, THEREFORE, BE IT RESOLVED that the members of the City Council of the City of Shakopee hereby Proclaim October 2024 as Domestic Violence Awareness Month. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held this 1st day of October, 2024. Mayor City Clerk WILAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 6.a October 1, 2024 City Council Meeting Minutes of September 17, 2024. Lori Hensen, City Clerk Lori Hensen Action to be considered: Approve the City Council meeting minutes of September 17, 2024. Motion Type: Simple Majority Background: N/A Recommendation: Approve the City Council meeting minutes of September 17, 2024. Budget Impact: N/A Attachments: September 17, 2024 1.111111 SHAKOPEE Mayor Matt Lehman presiding 1. Roll Call Shakopee City Council Minutes September 17, 2024 7:00 PM City Hall, 485 Gorman St. Present: Mayor Matt Lehman, Council Members Jay Whiting, Angelica Contreras, Jim DuLaney, Jesse Lara Staff Present: City Administrator Bill Reynolds, City Attorney Jim Thomson, City Engineer Alex Jordan, Finance Director Nate Reinhardt, City Clerk Lori Hensen, Planning/Development Director Michael Kerski, Public Works Director Bill Egan, Parks/Recreation Director Kelsi McNutt 2. Pledge of Allegiance 3. Approval of Agenda Council Member Angelica Contreras made a motion to approve the agenda, second by Council Member Jim DuLaney and the motion passed. 5-0 4. Consent Business - (All items listed in this section are anticipated to be routine. After a discussion by the Mayor there will be an opportunity for members of the Council to remove any items from the consent agenda for individual discussion. Those items removed will be considered following the Public hearing portion of the agenda. Items remaining on the Consent Agenda will not be discussed and will be approved in one motion.) Council Member Jay Whiting made a motion to approve the consent agenda, second by Council Member Angelica Contreras and the motion passed. 5-0 A. Administration *4. A.1. *City Council Minutes Approve the minutes of September 3, 2024. *4. A.2. *Certification of Delinquent Sewer and Storm Drainage Accounts Page 1 of 5 1. Adopt Resolution R2024-120, certifying assessments for delinquent sewer and storm drainage accounts from August 1, 2023 thru December 31, 2023. 2. Add a $25 administrative charge for collection with payable 2025 property taxes. 3. Write off delinquent accounts less than $25 which total $430.40. *4. A.3. *Declare amounts, order the preparation of proposed assessments, set a public hearing date for delinquent false alarm & mowing service bills Adopt Resolution R2024-121, a resolution declaring the amount to be assessed, ordering the preparation of proposed assessments, and set the public hearing date for delinquent ordinance services. *4. A.4. *Monthly Financial Review - August 2024 Review of August 2024 General Fund revenues/expenditures. *4. A.S. *Declare amounts, order the preparation of proposed assessments, set a public hearing date for delinquent refuse bills Adopt Resolution R2024-122, declaring the amount to be assessed, ordering the preparation of proposed assessments, and setting the public hearing date for delinquent refuse bills. *4. A.6. *Approve Tobacco, 3.2 Off Sale and Sunday Liquor Licenses for Holiday Stationstores Approve tobacco, 3.2 off sale and Sunday liquor licenses for Holiday Stationstores, located at 1605 Windermere Way. *4. A.7. *Minnesota Board of Water and Soil Resources' Clean Water Fund Watershed Based Implementation Funding Grant Award Adopt Resolution R2024-127, accepting the Minnesota Board of Water and Soil Resources' (MN BWSR) Clean Water Fund Watershed Based Implementation Funding (WBIF) grant award and authorizing the City Administrator to execute the necessary contracts and agreements applicable to accepting this award. *4. A.B. *US Department of Transportation Safe Streets and Roads for All Grant Award Adopt Resolution R2024-126, accepting US Department of Transportation (US DoT) Safe Streets and Roads for All (SS4A) grant award and authorizing the City Administrator to execute the necessary contracts and agreements applicable to accepting this award. *4. A.9. *Minnesota Department of Public Safety's Toward Zero Deaths Enforcement Program Grant Award Adopt Resolution R2024-124, accepting the Minnesota Department of Public Page 2of5 Safety's (MN DPS) Toward Zero Deaths (TZD) grant award and authorizing the City Administrator to execute the necessary contracts and agreements applicable to accepting this award. *4. A.10.*Minnesota Department of Safety's DWI/Traffic Safety Officer Program Grant Award Adopt Resolution R2024-125, accepting the Minnesota Department of Public Safety's (MN DPS) DWI/Traffic Safety Officer (DWI/TSO) grant award and authorizing the City Administrator to execute the necessary contracts and agreements applicable to accepting this award. *4. A.11.*Approve a Special Event Permit and a Temporary Liquor License for the Shakopee Chamber & Visitors Bureau Approve the requested street closure, suspension of City Code 114.11, and a temporary liquor license, for the Shak-O-Lantern Festival, hosted by the Shakopee Chamber & Visitors Bureau. B. Engineering *4. B.1. *Accept the Lions Park Pickleball Court Park Project and Authorize Final Payment Adopt Resolution R2024-118, accepting work on the 2022 Lions Park Pickleball Court Project, PR-21-004, and authorize final payment in the amount of $3,052.56 to BKJ Land Co. II, Inc., dba BKJ Excavating. *4. B.2. *Accept the Southbridge Lift Station Project and Authorize Final Payment Adopt Resolution R2024-119, accepting work on the Southbridge Lift Station Rehabilitation Project, SAN-23-002, and authorize final payment of $3,036.70 to Pember Companies Inc. *4. B.3. *Accept Proposal from EOR for Arbor Bluffs Stream Stabilization Accept proposal for professional services from EOR in the amount of $88,200 for design and construction services for the Arbor Bluff Stream Stabilization project. C. Planning and Development *4. C.1. *Final Plat of Canterbury Southwest Fifth Addition Adopt Resolution R2024-123, a resolution approving the final plat of Canterbury Southwest Fifth Addition. *4. C.2. *Award Contract to Braun Intertec for Construction Testing and Inspections for Jackson Commons Park Construction Approve a contract with Braun Intertec for Construction Inspection and Testing for an Page 3of5 amount not to exceed $50,000. *4. C.3. *Agreement for Miracle Field with Shakopee Lions Club Approve Agreement with the Shakopee Lions for the creation of a Miracle Field at Tahpah Park. D. Police *4. D.1. Surplus Property Declare one firearm as surplus property and authorize disposal. 5. RECOGNITION OF INVOLVED RESIDENTS BY CITY COUNCIL - Provides an opportunity for the public to address the Council on items which are not on the agenda. Comments should not be more than five minutes in length. The Mayor may adjust that time limit based upon the number of persons seeking to comment. This comment period may not be used to make personal attacks, to air personality grievances, to make political endorsements or for political campaign purposes. Council Members will not enter into a dialogue with citizens, and questions from Council will be for clarification only. This period will not be used to problem solve issues or to react to the comments made, but rather for informational purposes only. 6. Business removed from consent will be discussed at this time 7. General Business A. Administration 7. A.1. 2025 Proposed Property Tax Levies and Debt Levy Cancellations Council Member Jesse Lara made a motion to adopt Resolution R2024-115, canceling Debt Service Levies for taxes payable in 2025, second by Council Member Angelica Contreras and the motion passed. 5 - 0 Council Member Jay Whiting made a motion to adopt Resolution R2024-116, setting Proposed Maximum 2024 Property Tax Levy collectible in 2025, second by Council Member Angelica Contreras and the motion passed. 3-2 Nays: DuLaney, Lehman Council Member Angelica Contreras made a motion to adopt Resolution R2024-117, approving the Levy of a Special Benefit Levy pursuant to Minnesota Statutes, Page 4of5 Section 469.033, Subdivision 6 by the Economic Development Authority for the City of Shakopee, Minnesota, second by Council Member Jesse Lara and the motion passed. 3-2 Nays: DuLaney, Lehman 8. Reports 8.A. City Bill List Informational only B.B. Liaison and Administration 9. Other Business 10. Adjournment to Tuesday, October 1, 2024, at 7 p.m. Council Member Jesse Lara made a motion to adjourn to Tuesday, October 1, 2024, at 7:00 pm, second by Council Member Jay Whiting and the motion passed. 5-0 Page 5of5 WILAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 6.b October 1, 2024 Approve On -Sale and Sunday Liquor licenses for Soi21 Asian Bistro. Heidi Emerson, Deputy City Clerk Lori Hensen, City Clerk Action to be considered: Approve on -sale and Sunday liquor licenses for Soi21 Asian Bistro, located at 8048 Old Carriage Court. Motion Type: Simple Majority Background: Staff has received an application for On -Sale and Sunday liquor licenses for Soi21 Asian Bistro, located at 8048 Old Carriage Court North. The application is in order and the fees have been paid. All permits must be approved, prior to issuance of the license. The Police Department conducted a background investigation and found nothing that would prohibit issuance of the license. Recommendation: Approve the above requested motion. Budget Impact: None. Attachments: WilkAl SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 6.c October 1, 2024 Approve On -Sale and Sunday Liquor Licenses for Do & Huynh Inc. dba Bun Mee Vietnamese Baguette Express. Heidi Emerson, Deputy City Clerk Lori Hensen, City Clerk Action to be considered: Approve On -Sale and Sunday Liquor Licenses for Do & Huynh Inc. dba Bun Mee Vietnamese Baguette Express, located at 4135 Dean Lakes Blvd. Motion Type: Simple Majority Background: Staff has received applications for On Sale and Sunday liquor licenses for Do & Huynh Inc. dba Vietnamese Baguette Express, located at 4135 Dean Lakes Boulevard. The application is in order and the fees have been paid. The Police Department has conducted a background investigation and found nothing that would prohibit issuance of the license. Recommendation: Approve the above requested motion. Budget Impact: None. Attachments: WILAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 6.d October 1, 2024 Accept Quotes and Award Contract for the Horizon Drive Storm Sewer Reconstruction Project. Alex Enyi, Project Coordinator Alex Jordan, City Engineer Action to be considered: Accept quotes and award a contract to Minnesota Dirtworks, Inc., for the Horizon Drive Storm Sewer Reconstruction Project, in the amount of $57,678.14. Motion Type: Simple Majority Background: City staff identified a sink hole caused by a failing storm sewer utility located on Horizon Drive east of Foothill Trail. This sink hole is within the roadway and poses a safety hazard to the public. The recommended improvements include replacement of the failing storm sewer system and repaving the roadway. Quotes for the repairs were solicited and opened on September 6, 2024. Three quotes were received and Minnesota Dirtworks, Inc., from Lakeville, Minnesota, is the low bidder in the amount of $57,678.14 (see attached quote tabulation). Minnesota Dirtworks, Inc. has the capacity and experience for the project and is deemed a responsible bidder. Recommendation: Award contract as requested. Budget Impact: The City's Capital Improvement Plan (CIP) includes $150,000 for Annual Erosion, Pond Cleaning and Outlet Improvements, project STORM-24-010. The repairs will be funded out of the Storm Drainage Fund. Attachments: CIP Summary Sheet.pdf Quote Tabulation.pdf Project Location.pdf Horizon Drive Contract.pdf Capital Improvement Plan City of Shakopee, Minnesota 2024 thru 2028 Project # Storm-24-010 Projeet Name Annual Erosion/Pond Cleaning/Outlet Improvements Accounting Code Fund Surface Water Fund Description Project Code Department Contact Type Useful Life Category Priority Status Total Project Cost: Storm Drainage Fund Public Works Director Maintenance Storm Sewer/Drainage 2 Important -Provide Efficienci Active $750,000 This project is a placeholder for improvements in future years to address erosion and pond maintenance issues. Justification These projects are needed to address safety, erosion, water quality and pond outlet issues when large maintenance or repairs are needed. Expenditures 2024 2025 2026 2027 2028 Total Construction/Maintenance Engineering/Administration 125,000 125,000 125,000 125,000 125,000 625,000 25,000 25,000 25,000 25,000 25,000 125,000 Total Funding Sources 150,000 150,000 150,000 150,000 150,000 750,000 2024 2025 2026 2027 2028 Total Storm Drainage Fund 150,000 150,000 150,000 150,000 150,000 750,000 Total Budget Impact/Other 150,000 150,000 150,000 150,000 150,000 750,000 Projects are identified through issues with frequent maintenance, and inspections required by the NPDES MS4 permit. 228 TABULATIONS OF BIDS CITY OF SHAKOPEE Horizon Drive Storm Sewer Recon > NO. 3 Northwest Asphalt Shakopee EXTENDED TOTAL S 8,405.00 O O ON n ✓: O = - ✓) 0 O 'V ✓) 0 O OM ✓) S 2,470.00 S 2,495.50 0 O rcN M Vl S 72.00 S 9,145.00 0 O a 0 ✓) S 4,340.00 0 O 00 7 ✓) 0 O 00 ✓) 0 O 6 00 V) 0 .ae v0i M 'n S 2,500.00 O O a N 0 a 77 ,A- UNIT PRICE $ 8,405.00 O O O 00 . O , . O O O O M . O O . O co M . O '0 - 69 O O oo 69 O O 'u 69 $ 295.00 $ 121.00 O co O - N 63 O O n 63 $ 440.00 O co 6 h 69 6 'O - 69 $ 2,500.00 O O 7 9 N zV) Bituminous Roadways, Inc Mendota Heights EXTENDED TOTAL O 0 O Or, M O O O 0 n S 230.00 0 0 O .- 0 0 O P - 0 0 O 0 0 0 O N .- V] 0 0 O - V) N - O V) S 7,285.00 0 0 0 V: 0 0 O O m. 0 0 00 6 0 0 0 O N - 0 0 0 O a 00 0 0 0 O 0 M V] 0 0 O M a V) S 1,235.00 ,Ny x dr r UNIT PRICE 0 O O a 69 0 O , 0 O .- 63 0 O n 63 0 M 69 0 O a 69 0 O 69 0 O V1 69 - O O 64 $ 235.00 O O , O 69 O O N 69 O , O a bs O . 69 O O M 69 O a 49. 0 r, Minnesota Dirtworks, Inc Lakeville EXTENDED TOTAL 00 O V] h 00 O N V) 7 0 co; N , S 1,247.60 S 213.60 - V) , a ) V) S 3,632.00 0 0 O N V) 0 0 O 0 V] 7 O 00 0 V) 7 0 V) 0 O N V) S 604.52 0 0 O V) 0 O O n V) N 0 N 0) V) 0 7 a. V: ,. y r EA UNIT PRICE O 69 6 J3 N 6 0 N 6 6 ✓) N H3 a 0 76 on 0 a Y3 0 0 O 69 O 0 C 0 7 7 N 0 00 N 0 a N O 0 V3 6 N N 0 0 0 Vr i $24.00 N 6 a h 6 Ff co 0 1- O \'J 7 O co 1- z LUMP SUM 0. a 0 00 00 00 z 00 z 00 0 >- 00 0 0 z 0 z 00 00 00 00 0 00 z 00 a LUMP SUM 0 ITEM DESCRIPTION MOBILIZATION CLEARING AND GRUBBING SALVAGE CASTING REMOVE. DRAINAGE STRUCTURE SAWING BITUMINOUS PAVEMENT (FULL DEPTH) RF,MOVE, STORM SEWER PIPE (ALL TYPES) REMOVE. BITUMINOUS PAVEMENT AGGREGATE, BASE CLASS 5 BITUMINOUS MATERIAL FOR TACK COAT TYPE SP 9.5 WEARING COURSE MIXTURE (2, C) 24" RC PIPE SEWER DES 3006 CL III CONNECT TO EXISTING STORM SEWER CONST DRAINAGE STRUCTURE DES 48-4020 INSTALL CASTING CONCRETE, CURB & GUTTER (ANY TYPE) 6" CONCRETE PAVEMENT TRAFFIC CONTROL SITE RESTORATION o z H 0 PRI AI _A R P 0 A P A PROJECT LOCATION 0 A P P P WILLA! SHAKOPEE HORIZON DRIVE STORM SEWER RECONSTRUCTION DATE: SEPT 2024 DRAWN BY: AE SHAKOPEE ENGINEERING DEPARTMENT FIGURE: 1 CONTRACT THIS CONTRACT, made and entered into this 1st day of October , 2024 by and between Minnesota Dirtworks, Inc., hereinafter called "Contractor", and the City of Shakopee, Minnesota, a municipal corporation, hereinafter called "City." WITNESSETH: That Whereas, the Contractor has become the lowest responsible bidder for furnishing the supervision, labor, tools, equipment, materials and supplies and for constructing the following City improvements: HORIZON DRIVE STORM SEWER RECONSTRUCTION NOW THEREFORE, the parties to this contract agree to the following: 1. Manner for Completion. The Contractor, at his own proper cost and expense, shall perform all work and furnish all supervision (needed beyond that provided by the City Engineer), labor, material, tools, supplies, machinery and other equipment necessary for the construction of the Horizon Drive Storm Sewer Reconstruction for the City of Shakopee, Minnesota, in a workman- like and substantial manner, as outlined in the Request For Quotation (RFQ). 2. Due Diligence. The maintenance of a rate of progress in the work which will result in its completion in a reasonable time, is an essential feature of this Contract, and the Contractor agrees to proceed with all due diligence and care, at all times to take all precautions to ensure the time of completion as defined in this Contract. The Contractor shall fully complete the work called for under the Contract in accordance with the RFQ. 3. Payment. The City will pay the Contractor those prices stipulated in the Contractor's Quotation, which are incorporated herein by reference and made a part of this Contract, which shall constitute full and complete compensation for the contractor's work provided hereunder. The parties specifically agree and understand and the Contractor specifically waives any claim for additional compensation for any changed condition whether arising out of a physical condition at the site of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent in work of the character and at the location provided for in the Contract or arising as a result of any force majeur. 4. Contractor's Responsibility for Subcontractors. It is further agreed that Contractor shall be as fully responsible to the City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons it directly employs. Contractor shall cause appropriate provisions to be inserted in all subcontracts relating to this work, to bind all subcontractors to Contractor by all the terms herein set forth, insofar as applicable to the work of subcontractors and to give Contractor the same power regarding termination of any subcontract as the City may exercise over Contractor under any City of Shakopee — Contract Horizon Drive Storm Sewer Reconstruction September 2024 Page 1 of 6 provisions of this contract. Nothing contained in this Contract shall create any contractual relation between the subcontractor and the City or between any subcontractors. 5. Payment to Subcontractors. The Contractor shall pay any subcontractor within ten days of receipt of payment from the City for undisputed services provided by the subcontractor. If the Contractor fails to pay within ten days, the Contractor shall pay the subcontractor interest at the rate of one and one-half percent per month or part of month to the subcontractor on any undisputed amount not paid on time to the subcontractor, in accordance with Minn. State. Sec. 471.425, Subd. 4a. 6. City Instructions. The City may declare the contract forfeited, should the Contractor persistently disregard instructions of the City or fail to observe or perform any provisions of this Contract. 7. Requirements of Performance Bond. The successful bidder, at the time of the execution of the Contract, shall furnish and at all times maintain a satisfactory and sufficient bond in full amount of the Contract as required by law with a corporate surety satisfactory to the Owner. The form of bond is that required by statute. Personal sureties will not be approved. 8. Indemnity. The Contractor agrees to defend, indemnify, and save the City harmless from and against all claims, suits and actions of every description, brought against the City and from all damage and costs by reason or on account of any injuries or damages received or sustained by any person or persons, or their property, by Contractor, its servants, agents or subcontractors in the construction of said work, or by any negligence or carelessness in the performance of same, or on account of any other wrongful act or omission, including breach of any provision of this Contract, of Contractor, its independent subcontractors, agents, employees, or delegates. The Contractor further agrees to indemnify the City for defense cost incurred in defending any claims, unless the City is determined to be at fault. The Contractor shall provide a Certificate of Insurance with the City of Shakopee named as an additional insured. The limits of liability shall be as follows: Worker's Compensation (1) State Statutory (2) Applicable Federal (e.g. Longshoreman's): Statutory (3) Employer's Liability: $2,000,000 Contractor's Liability Insurance including completed operations and product liability coverages and eliminate the exclusion with respect to property under the care, custody and control of Contractor: City of Shakopee — Contract Horizon Drive Storm Sewer Reconstruction September 2024 Page 2 of 6 General Aggregate (Except Products - Completed Operations) $2,000,000 Products - Completed (Operations Aggregate) $2,000,000 Personal and Advertising Injury (Per Person/Organization) $2,000,000 Each Occurrence (Bodily Injury and Property Damage) $2,000,000 Property Damage Liability Insurance will provide explosion, collapse and underground coverages $2,000,000 where applicable. (6) Excess Liability General Aggregate $2,000,000 Each Occurrence $2,000,000 Automobile Liability: (1) Bodily Injury: $2,000,000 Each Person $2,000,000 Each Accident Property Damage: $2,000,000 Each Accident or (2) Combined Single Limit (Bodily Injury and Property Damage) $2,000,000 Each Accident 9. Duplicate Originals. This Contract shall be executed in two copies; one (1) copy being retained by the City, one (1) to be delivered to the Contractor. City of Shakopee — Contract Horizon Drive Storm Sewer Reconstruction September 2024 Page 3 of 6 10. Nondiscrimination. The Contractor agrees in the performance of this Contract not to discriminate on the ground or because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age, against any employee of Contractor or applicant for employment, and shall include a similar provision in all subcontracts let or awarded hereunder 11. Jurisdiction. This agreement and every question arising hereunder shall be construed or determined according to the laws of the State of Minnesota. CONTRACTOR CITY OF SHAKOPEE, MINNESOTA By By Matt Lehman/Mayor By By Bill Reynolds/City Administrator City of Shakopee — Contract Horizon Drive Storm Sewer Reconstruction September 2024 Page 4 of 6 WILLA! SHAKOPE E Engineer Department City of Shakopee Phone: 952-233-9369 FAX: 952-233-3807 REQUEST FOR QUOTATION HORIZON DRIVE STORM SEWER RECONSTRUCTION DOCUMENT DATE: QUOTATIONS DUE By: SUBSTANTIAL COMPLETION DATE: FINAL COMPLETION DATE: SEPTEMBER 1 , 2024 SEPTEMBER 5, 2024 OCTOBER 15, 2024 OCTOBER 25, 2024 QUOTATION FORM HORIZON DRIVE STORM SEWER RECONSTRUCTION COMPANY NAME: hi 11)(16sokt D ri 1,0o(1a ,rrx, ADDRESS: t000 �� ) I/'���I , LAk u /, 444/ TELEPHONE: QUOTATIONS ARE DUE BY 11:00 A.M., LOCAL TIME, THURSDAY, SEPTEMBER 5, 2024 To: Alex Enyi, Project Manager 485 Gorman Street Shakopee, MN 55379 Email: aenyila shakopeemn.gov The undersigned, as bidder, hereby proposes and agrees to enter into a contract with the City of Shakopee to supply all labor, materials, and equipment necessary to complete the City Project, all in accordance with the plans and specifications prepared by the City of Shakopee and in strict accordance with the unit prices herewith. The final amounts of the contract shall be determined by multiplying the final measured quantities as authorized and actually furnished and installed in the manner described in the specifications, by the unit stated in this proposal form. The Contractor will not be entitled to any compensation on any items other than those listed on this proposal form. The bidder must bid each item. The contract award will be based upon the low bid. In the event the unit prices extended do not equal the total bid, the unit prices shall govern to become the total bid. City of Shakopee — Quotation Form Horizon Drive Storm Seer Reconstruction September 2024 Page 1 of 4 [ NO. _ ITEM NO. DESCRIPTION UNIT QTY UNIT PRICE AMOUNT OU T 1 2021.501 MOBILIZATION S� P 1 { 3 1D -.it so 2 2101.505 CLEARING AND GRUBBING SQ YD 65 4" / ".i I a) D 3 2104.502 SALVAGE CASTING EACH 2 4 ) 3C Si D73 4 2105.502 REMOVE DRAINAGE STRUCTURE EACH 2 Al 0-3 1' 5 2104.503 SAWING BITUMINOUS PAVEMENT (FULL DEPTH) LIN FT 60 �- 13 6 2104.503 REMOVE STORM SEWER PIPE (ALL TYPES) LIN FT 65 4/ / 1! gq f 7 2104.504 REMOVE BITUMINOUS PAVEMENT SQ YD 155 61' 4 A3' e.3,1.� 8 2211.509 AGGREGATE BASE CLASS 5 CY 40 . 40. 1 9 2357.506 BITUMINOUS MATERIAL FOR TACK COAT GAL 12 4 10 V OD lg. 10 2360.509 TYPE SP 9.5 WEARING COURSE MIXTURE (2, C) TONS 31 41, 1002' 3 Nb.i f /47..f 11 2503.503 24" RC PIPE SEWER DES 3006 CL III LIN FT 66 ,, 0.3 12 2503.602 CONNECT TO EXISTING STORM SEWER EACH 2 „S( —4.21 } ) 1,93 12- 13 2506.502 CONST DRAINAGE STRUCTURE DES 48-4020 EACH 2 ,fir '� 6yo--1- iS '1= 14 2506.502 INSTALL CASTING EACH 2 .1 / 3o af6p 15 2531.503 CONCRETE CURB & GUTTER (ANY TYPE) LIN FT 100 ,- 65 � 6 6-00 14 16 2531.504 6" CONCRETE PAVEMENT SQ FT 190 It a y-01 4 560 ''' 17 2563.601 TRAFFIC CONTROL SUMP 1Vol 5.ya 18 2575.504 SITE RESTORATION SQ YD 65 ) 3-� .? S Total Bid: City of Shakopee Quotation Form Horizon Drive Storm ScIcer Reconstruction September 2024 s 6.7f lv Page 2 of 4 The undersigned agrees as follows: 1. The City of Shakopee, Minnesota, reserves the right to reject any and all bids, to waive any minor irregularities in bidding, and or to accept the bid or bids which best serve the interest of the City of Shakopee. 2. If this quotation is accepted, bidder will enter into a contract and furnish insurance certificate(s) within ten (10) days after bidder's quote is accepted. Bidder agrees to commence work as soon as possible after acceptance and to complete all work on or before the completion date, subject to the provisions of the contract documents. Respectfully Submitted, Firm: By: Si nature o rviesPig - Wofks Bidder) g Title: Fits) [Ain', MIrasei, Dk A/0(6, 12. (Name) f l/ )+,15b. 6)k�- (Address) itev. II [I MV (City and State) DATE: 0VOW )O,a11 City of Shakopee Quotation Form Horizon DriN e Storm Sewer Reconstruction September 2024 Page 3 of 4 STATE OF MINNESOTA - RESPONSIBLE CONTRACTOR CERTIFICATE Applies to all prime contracts in excess of $50,000 A responsible contractor is defined in Minnesota Statutes § 16C.285, subdivision 3. Any prime contractor or subcontractor who does not meet the minimum criteria under Minnesota Statutes §16C.285, subdivision 3, or who fails to verify that it meets those criteria, is not a responsible contractor and is not eligible to be awarded a construction contract for the project or to perform work on the project. A false statement under oath verifying compliance with any of the minimum criteria shall render the prime contractor or subcontractor that snakes the false statement ineligible to be awarded a construction contract for the project and may result in termination of a contract awarded to a prime contractor or subcontractor that makes a false statement. A prime contractor shall submit to the contracting authority prior to execution of the contract. copies of the signed verifications of compliance from all subcontractors of any tier pursuant to subdivision 3, clause 7. By signing this statement, 1, (,)& jn , � r (typed or printed name), Fhc,:' er (title) certify that am an owner or officer of the company and do verify under oath that my company is in compliance with each of the minimum criteria listed in the law. Signed: /1 11111410 -1t, DM- fn tis 1)G. (name of the person, partnership or corporation s ubmitting this proposal) 1 � 2-3 4` Sa-ne Ices 1.�k�u><�1�� hill/ ��o4K (business address) NI J06/ 2pt (bidder or authorized representative) Date City of Shakopee — Quotation Form Horizon Drive Storm Sewer Reconstruction September 2024 Page 4 of 4 WILAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 6.e October 1, 2024 Approve a Special Event Permit and a Temporary Liquor License for the Shakopee Chamber & Visitors Bureau Holiday Fest Event, being held on December 7, 2024. Heidi Emerson, Deputy City Clerk Lori Hensen, City Clerk Action to be considered: Approve the requested street closure, suspension of City Code 114.11 and a temporary liquor License for the Holiday Fest event, hosted by the Shakopee Chamber & Visitors Bureau. Motion Type: Simple Majority Background: The Shakopee Chamber & Visitors Bureau is requesting the following locations to be closed at 11:00 a.m. (signs to be posted beginning Wednesday December 6th) until 6:30 p.m. for the annual Holiday Fest event: • 1st Avenue between Holmes Street and Sommerville Street • Lewis Street between 1st and 2nd Street • Lewis Street Parking lot • Huber Park (fireworks display) The event will take place from 2:00 - 6:00 p.m., and include a tree lighting, a vendor marketplace in the Lewis Street parking lot and other fun activities for the community to enjoy. Along with a fireworks display after the tree lighting. They are requesting that the City suspend city code 114.11 (A) Consumption and Possession on Public Streets, Property and the like, to allow patrons to consume alcohol on the closed streets. No glass containers will be allowed on the street. Patrons of the festival will be able to purchase alcohol from the Shakopee Brew Hall and Mana Brewing on the closed streets only. Anyone drinking alcohol will be carded and wrist banded. Recommendation: Approve the above requested motion. Budget Impact: Staff time will be needed to drop off and pick up barricades and garbage cans, post street and parking lot closure signs and clear the streets. Most of this can be accomplished during normal working hours. Attachments: 20240926_102550.pdf Y a3 0 w First Avenue LL m 0 H� J 0 pY Qr. Va w w J a U) 1 tn w a O Q Q w M Vcy i o a M M L^ w O. WN 0 d Ln a` i- / > 1 a aV 2M YV~i leans JaaLied s }sans aflinaa:.uWas i- 0 • g Q �aaa;s sinnal 0 laaa;s saw pH ;eeJ 1s JaIInd I11111 0. •a a 3rd Avenue Ce WILAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 6.f October 1, 2024 Declaration of surplus property Chelsea Petersen, Assistant City Administrator Myles Robb, Administration Intern Action to be considered: Declare equipment as surplus and authorize its disposal Motion Type: Simple Majority Background: The city's IT Department has a number of wireless access points and desk phones that have exceeded their useful life, and been replaced as part of the city's Capital Improvement Plan. At this time, staff is requesting to declare the equipment as surplus property and authorize its disposal. All items listed will be listed for sale at an online public auction, and if items are unable to be sold they will be recycled. The surplus items are as follows and have photos attached: • Mitel no. 6920 desk phones - 32 • Mitel no UC360 conference phones - 4 • Aruba APIN0315 - 36 • Aruba APIN0228 - 4 • Aruba AIN0615 - 3 Recommendation: Approval as requested Budget Impact: N/A Attachments: IT Equip.pdf SHAKOPEE WILAI Shakopee City Council 6.g October 1, 2024 Agenda Item: Approval request to declare abandoned property as surplus. Prepared by: Courtney LaBruyere, Evidence Technician Reviewed by: Action to be considered: The Shakopee Police Department is seeking council approval to declare the listed property as surplus and authorize its administrative disposal. Motion Type: Simple Majority Background: The Shakopee Police Department is requesting that the attached property list be declared surplus as it has exceeded the retention time provided by the Scott County Attorney's Office. Items have been considered abandoned and will be donated to the Tri-County Law Enforcement Association to be used as bidding items for a silent auction. Recommendation: Staff recommends that the property be declared surplus and be authorized for purposes of donation. Budget Impact: There is no impact to the department budget. Attachments: Surplus Property-1024.pdf 4-1 '035 eL O 2 0 -a cu fa .0 L c 0 =a c 0 0.0 z 5 NIB Dewalt power tools w/2batteries z f6 CO 0 N CC Hackzall Saw v) aO CO z v C7 a) r Hopper Backflip Cooler WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 6.h October 1, 2024 Encroachment Agreement between City of Shakopee and Midway Hospitality LLC (Culvers) for a retaining wall in a drainage and utility easement. Michael Kerski, Planning and Development Director Lori Hensen Action to be considered: Make a motion to approve Encroachment Agreement. Motion Type: Simple Majority Background: Midway Hospitality LLC (Culvers) has previously received approval for a RLS to realign properties to allow for additional parking and drive thru for the Shakopee Culvers. Midway also entered into a Purchase Agreement with J & A Financial LLC (Americlnn by Wyndham) for a portion of its property to provide for better circulation and access. Because of the changes, additional stormwater ponding is required that includes a retaining wall in the city's drainage and utility easement, triggering the requirement for an encroachment agreement. Recommendation: Approve requested action. Budget Impact: None Attachments: 22-0271.00 Culvers Shakopee RLS_04242024.pdf Encroachment Agreement --Tract B--Execution Version (9-16-24).pdf Luz Luz a. CO 11. (LI 0 F. vco li .ffilii!, 1,141 i 441 at PF,;;ii §I 11111V 1 lg.- II 1 litrIlli !OP ii !! 4 NI! 41111 4 44-11. ,1 jr21 0111111i 11 iVilla qi ei i WI ••• . j I. 11 gi II 1115 li 1 N1111 1 'i itg PI i Airia3us I ,1,1 pill th A ii 111111 41 n.1.13Naii 1 11 Ilifil ha 59 — - .0. /0 a 4M0S Ci g.......1141 mAII. ....CC ....1 CO ...1.121 '<Er 414:1C *44 1 i .11:74 114.11 LI.41 r.... •L_L, 4 ..1 i L'Igi CAD rs Er .92i4 EL' ii !pi LLI it !j ';g! ;,1 : :1;:' _, '''' lq :ii x$ A CC 0 6 - "'2g it ' CA 1.1"x 1 'NI ...I --r- I... !1.1: '. .'tire 1 t __I 1 ,Cr li -,. i ill 111 1ii1!l - .1,iif ;::,.:.„=„4;,, 2,,1 '717: -- _j : el , k , kt •0<ki : .. __ _ Crell't 3 .1C19j19 N •.(77 .,' '-/%';.: .4' s A 19 g 73.2dtld A .0.14.55 9 1 fi 4a, St t _ - ---- --- .1 • .01.1 4,5 • _ I 5 H 8 z cc LAJ CC co ENCROACHMENT AGREEMENT This Encroachment Agreement ("Agreement") is made as of the day of , 2024, by and between the City of Shakopee, a Minnesota municipal corporation ("City"), Midway Hospitality LLC, a Minnesota limited liability company ("Owner"), and J & A Financial, LLC, a Minnesota limited liability company ("J & A"). RECITALS A. Owner is the owner of property located at 4100 12th Avenue E., City of Shakopee, County of Scott, State of Minnesota, legally described as follows: Tract B, REGISTERED LAND SURVEY NUMBER , Scott County, Minnesota (the "Property"). B. The Property is subject to a drainage and utility easement in favor of the City, which was created in Utility and Drainage Easement dated April 5, 2001, filed April 10, 2001, as Document No. T118032 (the "Easement"); C. J & A owns property adjacent to the Owner's property that is legally described as Tract A, Registered Land Survey No. , Scott County, Minnesota ("J & A Property"); C. Owner and J & A would like to construct and install a retaining wall ("Improvements") that will encroach into the Easement ("Encroachment Area"); and; D. The City has agreed that Owner, J & A, their agents or contractors may construct, repair and maintain the Improvements within the Encroachment Area on the condition that Owner and J & A execute this Agreement and will promptly remove said Improvements at J & A's expense upon the reasonable determination by and need of the City or other private utility company to work within the Easement. 1 AGREEMENT NOW, THEREFORE, on the basis of the premises and the mutual covenants and agreements set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Owner, J & A or their agents, or contractors may construct, repair, and maintain the Improvements within the Encroachment Area as shown on Exhibit A. 2. The permission granted by the City in this Agreement is limited exclusively to the proposed Improvements within the Encroachment Area as outlined in Exhibit A. 3. This Agreement shall not prevent or impair the use of the Encroachment Area for the drainage and utility purposes by the City or any other entity entitled by law to so use the Encroachment Area. In the event the Encroachment Area becomes unusable for the use contemplated by Owner or J & A herein, Owner or J & A will have no claim against the City unless such unusable status is caused by the negligence or willful misconduct of the City, its officials, employees, contractors and agents. 4. In the event the City needs to maintain, operate, repair, access or remove the utility or make necessary drainage improvements located within the drainage and utility easement and the Improvements interfere with such maintenance, operation, repair, access or removal, the City shall provide notice to Owner and J & A pursuant to Paragraph 8 of this Agreement. The City's costs of removing the necessary portion of the Improvements in order for the City to exercise its easement rights shall be paid by J & A. J & A shall be responsible for the costs of restoring or reinstalling any of the Improvements that were removed. Any damages to the Improvements resulting from the City's activities shall be borne and assumed by J & A, provided, however, that the City shall be responsible for any damages caused by the negligence or willful misconduct of the City, its officials, employees, contractors and agents. 5. This Agreement shall run with the land and shall inure to the benefit of and be binding upon the parties to this Agreement and their respective successors and assigns. 6. Owner shall indemnify, hold harmless and defend the City, its officials, employees, contractors and agents, from and against any and all claims, losses, proceedings, damages, causes of action, liability, costs or expenses (including reasonable attorneys' fees), arising from or in connection with or caused by any act, omission or negligence of Owner, J & A or their contractors, licensees, invitees, agents, servants or employees in connection with the construction, repair or maintenance of the Improvements. J & A hereby agrees to indemnify, defend and hold Owner harmless from and against any costs, losses, damages, liens, claims, liabilities, or expenses (including, but not limited to, reasonable attorneys' fees, court costs and disbursements) incurred in connection with the construction, maintenance, or repair of the Improvements in the Easement Area, unless such costs or damages are directly attributable to Owner's intentional act or negligence. Nothing in this Agreement is a waiver by the City of any immunity, defenses, or other limitations on liability to which the City is entitled by law. 7. Owner agrees not to suffer or allow any liens, claims, and processes to be placed against the City's rights to or interest in the Encroachment Area as a result of the use of the 2 Encroachment Area, including, without limitation, any liens for labor or materials provided for the construction, repair, or maintenance of the Improvements. 8. Owner and J & A must construct and maintain the Improvements in a sound manner, as may be reasonably determined by the City Building Official, City Engineer or other designated City official. If the Owner and J & A fail to repair or maintain the Improvements during the term of this Agreement, such limited use granted may be revoked by the City. 9. Required notices to the parties to this Agreement shall be in writing, and shall either be hand delivered or mailed to the following addresses: a) As to the City: City of Shakopee 485 Gorman Street South Shakopee, MN 55379 Attn: City Administrator b) As to Owner: Midway Hospitality LLC Attn: Anwer Kalim 2917 Cougar Path NW Prior Lake, MN 55372 c) As to J & A: J & A Financial, LLC Attn: Richard Hafdal 14187 Shady Beach Trail NE Prior Lake, MN 55372 10. Nothing contained in this Agreement shall be deemed a waiver by the City of any governmental immunity defenses, statutory or otherwise. Any claims shall be subject to the City's governmental immunity defenses and the maximum liability limits provided in Minnesota Statutes, Chapter 466, if applicable. 11. Owner and J & A agree that their use of the Encroachment Area is with the City's permission and is not open, continuous, notorious, or any other manner supportive of a claim of adverse possession, prescriptive easement, abandonment, or other entitlement to the Encroachment Area. [Signatures Appear on Following Pages] 3 [Signature Page to Encroachment Agreement] IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. STATE OF MINNESOTA COUNTY OF SCOTT ) ss. ) CITY OF SHAKOPEE By: Matt Lehman Its: Mayor By: William H. Reynolds Its: City Administrator The foregoing instrument was acknowledged before me this day of 2024, by Matt Lehman and William H. Reynolds the Mayor and City Administrator, respectively, of the City of Shakopee, Minnesota, a municipal corporation, on behalf of the City. Notary Public 4 [Signature Page to Encroachment Agreement] OWNER MIDWAY HOSPITALITY LLC, a Minnesota limited liability company By: Anwer Kalim, Managing Partner STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2024, by Anwer Kalim, the Managing Partner of Midway Hospitality LLC, a Minnesota limited liability company, on behalf of the company. Notary Seal 5 [Signature Page to Encroachment Agreement] J & A FINANCIAL, LLC, a Minnesota limited liability company By: Richard Hafdal, President STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2024, by Richard Hafdal, the President of J & A Financial, LLC, a Minnesota limited liability companyf on behalf of the company. This document was drafted by: City of Shakopee 485 Gorman Street South Shakopee, MN 55379 952-233-9300 Notary Seal 6 EXHIBIT A Encroachment Area 7 sera •°N •en $ /0I/e =wa DDew.wM Y ado 'SNNIAA3nmS10(01 NONdt053a 31V0 •ON n3a 00 ILZO-aZ rON 3v >r+ 316--ZZ 3R! OM MVJ 'AB 03N3H3 Ay 49 NMVS0 ,Ae N063a MVO T�YII KWMNI V ...I wAq ahanS vw !noon ha apun au Rama ualu waa •. as wn Nwo kaVI 'ONI `S3LVIOOSSV V NOSI13433d `111VOO$ Allow D;oseuUIW %;uno° 11o0s 5LI Sid 'V 4DDJl '3d 0ll 'Io1OUDuL VW 41414x3 DOJ1' 1.UOW4ODOJOU3 O O A v �+ vn$,2,mm�°i I°`,2oe u `o ,s u 6 0 • com=mo°1?a°�' o• occo ° p q c7n u o-0 WA EWela ° qm h0,.c�°�ut°mo m q `oi 0 54",N C G q V O g N b q1 O N C 0 G G.,O„k G q�- o J 0,33 0733,G ..°. V °N a %cv4m CC.G91agi o Ytt O \'� QTr O U (3 to a0al� I;U., O ° qU SZ'0L8 M .SS,**.SB S SLl 'ON 'S'71/ V }0011 JO aull 43n0S 8/'01-40 / a 1av11 Jo aull 4lmyan u a A'n IZ,I4£8 S=8140 8/'01=7 6L'186=21 I WILAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 6.i October 1, 2024 2025 Kavira Health Benefit Christie Rossow, Human Resources Director Chelsea Petersen, Assistant City Administrator Action to be considered: Approve Kavira Health Benefit contract, as requested Motion Type: Simple Majority Background: The City recently concluded its annual healthcare benefits renewal process and, like many organizations, is facing significant cost increases. The initial renewal rate increase was 16.7%, based on our last three years of claims and utilization rates. After a thorough market analysis, including a previous RFP process 2023, the City decided to maintain its relationship with Medica. In conjunction with our insurance brokers, city staff have been researching several ways to help reduce costs. After vetting multiple alternatives staff is recommending adding a new benefit called Kavira, a direct -to -employer healthcare provider, to the City's benefit package. Kavira offers a unique approach to healthcare, providing virtual care, unlimited house visits, and a wide range of medical services, including prescriptions. Their service area conveniently covers the locations of our employees. Key Benefits of Kavira: • Lower Costs: Kavira offers affordable healthcare with $5 copays. • Reduced Utilization: By offering accessible and affordable care, Kavira can help decrease healthcare utilization, leading to lower overall costs in future renewal years. Importantly, all costs associated with Kavira are separate from Medica medical plan, providing additional savings to employees and their families. • Future Savings: By reducing utilization and potentially negotiating better renewal rates, Kavira could help control long-term healthcare costs. Recommendation: Staff recommends approval of the Kavira Health Benefit contract, as requested Budget Impact: The cost for Kavira is $25 per month per enrolled employee. By adding Kavira to our benefits package, the City will secure a 1.7% reduction in our 2025 Medica renewal. While the cost of Kavira will be approximately $45,900 per year, the 1.7% reduction in the Medica renewal rate (from 16.7% to 15%) will reduce the renewal cost by $41,058. The overall cost from the reduced renewal rate, plus the additional Kavira benefit would result in an approximate net cost of $4,842 at current enrollment levels. Attachments: Kavira_City of Shakopee Corporate Agreement_2024.pdf DIRECT PRIMARY CARE PROGRAM CORPORATE CONTRACT PARTIES: Kavira Health, LLC ("Kavira") ("Company") RECITALS: A. Kavira provides routine health care services through its Direct Primary Care ("DPC") Program, as further described in this DPC Agreement. B. Company and Kavira are entering into this DPC Agreement to provide access to DPC Program services, as described herein, to eligible Program Members (as defined herein) on the terms and conditions set forth herein. C. NOW, THEREFORE, in consideration of the foregoing and of the mutual promises herein contained, Kavira and Company agree as follows: ARTICLE 1 OBLIGATIONS OF THE PARTIES 1.1 DPC Program. Kavira offers, through its employed or contracted non -physician health care professionals ("DPC Practitioners"), specified routine health care services via a direct primary care program, as further described in Exhibit A to this Agreement ("DPC Program") in exchange for the monthly membership fees described in Section 1.3 of this Agreement. Beginning on 1/1/2025 (the "Commencement Date"), Kavira agrees to provide DPC Program membership to all of Company's eligible Program Members at the membership level or levels indicated in Exhibit B. "Program Members" means and includes individuals who meet the criteria described in Exhibit B. 1.2 Program Members. Company shall provide, via an electronic platform and in a format reasonably requested by Kavira, all information reasonably required by Kavira to accurately and timely determine current Program Members. Company agrees to maintain and update the Program Member list(s) in accordance with Exhibit B. 1.3 Membership Fees. Kavira charges a flat monthly membership fee as payment for those DPC Services defined as included in the applicable membership fee, regardless of a member's utilization during the month. During the term of this Agreement, Company agrees to pay the fees for all Program Members' membership in the DPC Program in the amounts and in accordance with the payment schedule set forth in Exhibit B to this Agreement ("Membership Fees"). The Membership Fees may be modified by Kavira no more often than once every 12 months during the term of this Agreement by providing at least 60 days' prior written notice to Company. Some DPC Services are not included in the Membership Fees; these are called "Additional Fee Services" and are described in Exhibit A. 1.4 Qualifications; Malpractice Insurance. DPC Practitioners will provide DPC Program services in a competent, efficient, safe and satisfactory manner, consistent with accepted standards of practice for the practitioners' professions. DPC Practitioners will be duly licensed, certified or registered, as applicable, to provide DPC Program services. Kavira will obtain and maintain malpractice liability insurance covering DPC Practitioners, in amounts no less than the coverage limits typically obtained for such practitioners. 1.5 Health Insurance. The DPC Program is not insurance and is not a substitute for health insurance or health plan coverage. The DPC Program consists of limited routine health services as further described in this Agreement. The DPC Program does not include or provide hospitalization, specialty care, surgeries, or any services not personally provided by DPC Practitioners. 1.6 No Insurance Billing. Kavira does not and will not submit a bill to any insurer for any services provided by Kavira to Program Members. If Kavira is mistakenly paid by an insurance plan on behalf of a Program Member, Kavira will return the check to the insurance plan. 1.7 Legal Advice and Compliance. Company acknowledges and agrees that Kavira has not provided, is not providing, and is not responsible for, any tax advice, legal advice, or other advice or recommendations regarding Company's decision to enter into this Agreement or Company's implementation of the arrangement described herein. Company acknowledges and agrees that it has and retains all responsibility for compliance with applicable state and federal laws and regulations applicable to it, and for any associated liability. 1.8 Disclosure of Health Information. Kavira and Company agree to comply with all laws regarding the confidentiality of patient health information, including state and federal privacy laws. All health records for Program Members treated by Kavira belong to Kavira. Kavira shall not release identifiable patient health information of Company employees to Company except as required or permitted by applicable state and federal laws. 1.8.1.1 HIPAA Compliance. Specifically, and without limiting the generality of the paragraph above, each party agrees to comply with all applicable provisions of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d) and any current and future regulations promulgated thereunder (collectively "HIPAA Requirements"), including without limitation the federal privacy regulations as contained in 45 C.F.R. Part 164, the federal security standards as contained in 45 C.F.R. Part 142, and the federal standards for electronic transactions contained in 45 C.F.R. Parts 160 and 162. Each party shall refrain from any use or further disclosure of any Protected Health Information, as defined in 45 C.F.R. § 164.504, or Individually Identifiable Health Information, as defined in 42 U.S.C. § 1320d, other than as permitted by HIPAA Requirements and the terms of this Agreement. 2 1.9 Use of Company Name. Company agrees that Kavira may use Company's name and/or logo on Kavira's website and marketing materials during the term of this Agreement. Kavira will discontinue use of Company's name and logo promptly following termination of this Agreement. ARTICLE 2 TERM AND TERMINATION 2.1 Term. This Agreement will be effective on the day it has been signed by both parties (the "Effective Date") and continue for an initial term ending on the first anniversary of the Commencement Date (defined in Section 1.1), unless sooner terminated in accordance with Section 2.2. Thereafter, this Agreement will renew automatically on the anniversary of the Commencement Date for successive terms of one year each, until terminated in accordance with Section 2.2. 2.2 Termination. This Agreement may be terminated as follows: 2.2.1 By mutual written agreement of the parties. 2.2.2 By either party, effective at the end of the initial term or the end of any renewal term, by providing to the other party at least 60 days' written notice of nonrenewal prior to the end of the term. 2.2.3 By either party, upon written notice to the other, due to the either party's insolvency or bankruptcy. 2.2.4 By either party due to the material breach of the Agreement by the other party, which breach is not cured to the non -breaching party's reasonable satisfaction within 30 days after such party has provided the breaching party with written notice of the breach. 2.3 Effect of Termination. Once notice of termination has been provided, Company will ensure that all Program Members are made aware of the termination of this Agreement. The parties will mutually agree on the content of all communications to Program Members regarding termination of this Agreement. All obligations that by their terms survive the termination of this Agreement shall survive the termination of this Agreement, together with Sections 1.7 and 1.8 of this Agreement. ARTICLE 3 GENERAL PROVISIONS 3.1 Confidentiality of Agreement. Company shall not disclose the terms or provisions of this Agreement, in whole or in part, without the prior written consent of Kavira, except pursuant to a compulsory legal process (which Company shall resist and give immediate notice of to Kavira) or except to Company's business consultant, attorney and/or accountant provided each such professional has agreed prior to disclosure to maintain in confidence any such 3 confidential information disclosed to them and to not use such information for any purpose unrelated to this Agreement. This section shall survive termination of this Agreement. 3.2 Indemnification. Each party agrees to indemnify, hold harmless and, at the other party's instruction, defend the other party and its directors, officers, employees, affiliates, successors and assigns from and against any third party claims and charges, and any and all loss, costs, liability, damages, and expense of a third party claim (including, without limitation, reasonable attorneys' fees) which the indemnified party suffers that are directly attributable to (a) a breach of any representation, covenant or agreement of the indemnifying party contained in this Agreement; (b) a violation of applicable federal, state or local laws, rules or regulations by the indemnifying party or any of the indemnifying party's employees or representatives; and/or (c) the negligent or intentional acts or omissions of the indemnifying party; provided that in the event the law would allocate a portion of such liability to the non -indemnifying party because of its own fault, the indemnifying party shall not be required to indemnify for such portion. The indemnified party will notify the other party of any third party claim made against it within 10 days of knowledge of the claim if the indemnified party intends to seek indemnity under this paragraph with respect to such claim. This section shall survive termination of this Agreement. 3.3 Notice. Any notice required to be given pursuant to this Agreement shall be in writing and shall be sent by certified or registered mail or courier, with return receipt requested, or sent by secure email with use of a verifiable read -receipt function, to the party for which the notice is intended, at the address set forth in the signature block of this Agreement, or such other address of which a party has provided notice to the other pursuant to this section. The notice shall be deemed given and effective on the date indicated on the return or read receipt. 3.4 Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties and supersedes all prior oral and written agreements relating to the same subject matter. This Agreement may be amended only in a writing signed by both parties, except that Kavira may change the terms hereof without Company's consent (i) if and to the extent necessary to comply with applicable law or regulatory obligations, and (ii) as expressly permitted by the terms of this Agreement. 3.5 Severability. If any part of this Agreement is declared invalid or unenforceable by any court of competent jurisdiction, the remaining provisions will not be affected. Should a regulatory agency or court demand, as the result of a change in law or policy regarding direct primary care programs, that Kavira return to Company any Membership Fees paid hereunder, Company agrees that Kavira shall be entitled to payment from Company in an amount equal to the reasonable value of the DPC Program services actually rendered to Program Members during the period for which the refunded fees were paid, not to exceed the total fees paid by Company, and that Kavira may offset such amount against the amount to be refunded. This section shall survive termination of this Agreement. 3.6 Binding Effect; Assignment. This Agreement shall be binding upon and be enforceable against the parties and their respective heirs, successors and permitted assigns. Neither party may assign any of its rights or obligations under this Agreement without the prior written consent of the other party; except that Kavira may assign this Agreement to an affiliated entity. 4 3.7 Governing Law. This Agreement is made in and shall be construed under the laws of the State of Minnesota. 3.8 Independent Contractor Status. The parties shall at all times be acting and performing as independent contractors. Nothing in this Agreement shall be construed to create an employer/employee relationship, joint venture, partnership, or similar relationship between Kavira and Company or between any DPC Practitioner and Company. 3.9 No Waiver. The failure of either party to complain of any default by the other party hereunder or to enforce any of such party's rights hereunder, no matter how long such failure may continue, shall never constitute a waiver of such party's rights hereunder, including the right to seek monetary damages for a default. No waiver of any provision hereof shall constitute a waiver of any other provision hereof, nor a waiver of the same provision at any subsequent time. 3.10 Dispute Resolution. Kavira and Company will work together in good faith to resolve any dispute(s) that arise between them relating to this Agreement ("Dispute"). To commence the resolution process, one party shall provide to the other written notice, in reasonable detail, of the Dispute. Within 10 days after receipt of such notice, a meeting will occur between representatives of each party with authority to resolve the issue in Dispute. If the parties are unable to resolve the issue to the parties' mutual satisfaction within a reasonable period of time, either party may submit the Dispute to binding arbitration in Hennepin County, Minnesota before a single arbitrator. If the parties cannot agree on an arbitrator, each party shall select one arbitrator, and the selected arbitrators shall nominate a third arbitrator, who shall act as the sole arbitrator of the Dispute. The parties shall equally share the costs of the arbitrator. Arbitration proceedings initiated pursuant to this Agreement shall be conducted in accordance with the Commercial Dispute Procedures of the American Arbitration Association and Minnesota law. This section shall survive termination of this Agreement. 3.11 Force Majeure. Neither party shall be deemed to have breached this Agreement, nor be held liable for any failure or delay in the performance of any portion of its obligations under this Agreement if prevented from doing so by a cause or causes beyond the reasonable control of the party, such as natural disasters, pandemic, civil unrest, war, labor shortages, changes in the law, etc. ("Force Majeure Event"). If either party is prevented from, or delayed in, performing any of its obligations under this Agreement by a Force Majeure Event, it will promptly notify the other party as soon as reasonably practicable (to be confirmed in writing as soon as reasonably practicable) and describe, in reasonable detail, the circumstances constituting the Force Majeure Event and the performance that is or will be affected. Such party will continue to use commercially reasonable efforts to recommence performance as soon as reasonably practicable. 5 IN WITNESS WHEREOF, each party has caused this Agreement to be executed on its behalf by its duly authorized representative as of the date first written above. Kavira Health, LLC By: Andrew Headrick By: Its: CEO Its: Signed: 4-uaiP.ad Signed: Address for delivery of Notices: Address for delivery of Notices: 1161 Wayzata Blvd E #162 Wayzata, MN 55391 Email address for Notices: Email address for Notice: Andrew.headrick@kavira.health 6 EXHIBIT A DESCRIPTION OF DPC PROGRAM The DPC Program provides members with routine primary care services as specified in Kavira's services listings and program overview posted at www.kavirahealth.com/services, as revised by Kavira from time to time ("DPC Services"). DPC Services and the means of accessing DPC Services vary based on the membership level selected. DPC Services will be provided when appropriate and medically indicated based on scientific evidence, sound medical judgment, and relevant professional guidelines. Depending on the membership level, DPC Practitioners provide DPC Services through one or more of the following: text messaging, telehealth visits, other remote means, or house visits (including locations other than a member's residence if mutually agreed). Kavira's days and hours of operation and service availability are posted at www.kavirahealth.com/services. Kavira does not guarantee same day visits. Certain DPC Services are not included in the Membership Fee, for example, certain screenings, diagnostic tests, labs and specialty labs, and medications, as indicated in Kavira's services listing. These DPC Services may be available from Kavira for an additional fee ("Additional Fee Services"). Any service that is not described in Kavira's services listings and program overview as included in the DPC Program is not a DPC Service (for example, hospital services and care normally provided by a specialist). Without limiting the scope of the prior sentence, DPC Services excludes professional services that DPC Practitioners are not authorized to perform or provide under the laws of the State of Minnesota and services that are not consistent with the training and experience of a primary care provider and/or that cannot be safely and appropriately provided via the DPC Program. Program Members requiring emergency services should call 911. Additional terms of the DPC Program are set forth in the registration agreement between Kavira and the Program Member. 7 EXHIBIT B PROGRAM MEMBERS; PAYMENT 1. Program Members. Program Members are all individuals who meet, and are not excluded by, the following criteria: a. Program Members will include all individuals in the following categories, subject to paragraphs 1(b) and 1(c) below. • All Company employees that enroll in the medical plan. • The spouse (if any) and dependents (if any) of each Company employee who is a Program Member. For purposes of eligibility as a Program Member: (a) "spouse" means an individual to whom the employee is legally married, including partners of the same sex, and shall include an employee's domestic partner if and to the extent Company makes other employee benefits available on such basis; and (b) "dependents" means children who are eligible as an employee's dependents for other employee benefits offered by Company, as determined by Company. b. Program Members will exclude the following categories of individuals who otherwise qualify as Program Members under paragraph 1(a) above: • Employees who do not live in Kavira's service area; in which case the dependents, if any, of such employees will also be ineligible to be Program Members under this Agreement. • The dependents of any Company employees who are not Program Members. c. Any individual who otherwise qualifies as a Program Member will be excluded as a Program Member for purposes of this Agreement if one or more of the following circumstances occur, effective as of the date any of the following occur: • The individual's employment by Company has terminated, and Company does not have or no longer has any state or federal continuation of coverage requirement (if applicable). • In the case of a spouse or dependent, the employment of the person through whom such individual is eligible under this Agreement is terminated, and Company does not have or no longer has any state or federal continuation of coverage requirement (if applicable). In the event a Program Member becomes no longer employed with Company, and is disenrolled from the DPC Program, that Member (and his or her spouse/dependents) may continue their membership directly with Kavira at the 8 Membership Fee applicable under this Agreement, for up to the maximum period required under the Consolidated Omnibus Budget Reconciliation Act ("COBRA") and applicable guidance, by re -enrolling into the DPC Program and paying the monthly membership payments directly. 2. Program Member Listing; Onboarding. Within ten (10) days after the Effective Date of this Agreement, or such other date as the parties mutually identify in writing, Company will input all initial Program Members information into the electronic platform identified by Kavira. Company will ensure that the Program Members listing remains up-to-date from month to month consistent with the qualifications set forth in Section 1 of this Exhibit B. Company will use best efforts to add all newly eligible individuals to and delete any newly ineligible individuals from the listing promptly after becoming aware of the change, indicating the effective date of the change. Newly eligible individuals will become Program Members as of the date the individual becomes eligible to be a Program Member. Program Member deletions will be effective as of the end of the month in which the individual ceases to meet the eligibility requirements. Company will assist and cooperate with Kavira to ensure that Program Members are informed about the DPC Program, receive appropriate materials from Kavira, and complete applicable registration activities in a timely manner. 3. Membership Fees. As of the Effective Date, the Membership Fees per Program Member per month or per partial month of membership are the following: Monthly Membership Fee for each Program Member who is: Employee of Company Receiving House Visits $25.00 Employee of Company Receiving Telehealth Only Visits $10.00 Spouse of an Employee of Company $0.00 Dependent of an Employee of Company $0.00 Kavira does not offer pro -rated monthly Membership Fees. Accordingly, Company will be charged the full monthly amount of Membership Fees regardless of whether the Program Member joins the DPC Program after the first of the month or disenrolls prior to the end of the month. Membership benefits will continue through the last day of the month in which the termination or dis-enrollment occurs. Company agrees that it will communicate to Program Members the language contained in this paragraph pertaining to continued benefits for dis- enrolled Program Members. 9 The Membership Fees are subject to change as permitted by the Agreement. Kavira will not charge or seek to collect directly from any Program Member any Membership Fees that are the obligation of Company hereunder. 4. Payment Schedule. From and after the Commencement Date, Company agrees to pay the Membership Fees on a monthly basis, in advance, for all Program Members. Kavira will invoice Company by the 7th day of each month based on Program Member census data available on or about the 1st day of the month. Company agrees to pay by the 15th day of each month. Any discrepancy in Membership Fees paid for a given month as compared to Membership Fees owed for the actual Program Member census in that month due to adjustments made after invoicing will be reconciled and reflected in the invoice for the next month. 5. Clinic Holiday Closures Kavira's clinic is closed, and does not provide care, the following holidays: New Year's day, Martin Luther King day, Presidents Day, Memorial day, Juneteenth, Independence day, Labor day, Columbus day, Veterans day, Thanksgiving, the Friday after Thanksgiving (virtual only 10am-2pm CT) Christmas Eve (Virtual only l0am-2pm CT), Christmas, and New Year's Eve (virtual only l0am-2pm CT). If the holiday falls on a Saturday the preceding Friday will be the observed holiday, if the holiday falls on a Sunday the following Monday will be the observed holiday. 6. Additional Fee Services Program Members who elect to receive Additional Fee Services from Kavira are responsible for paying Kavira directly for such services in accordance with the member registration agreement. 71113972 v7 10 SHAKOPEE WILAI Shakopee City Council 7.a October 1, 2024 Agenda Item: Legislative Recap by Representative Bakeberg Prepared by: Reviewed by: Lori Hensen, City Clerk Lori Hensen, City Clerk Action to be considered: None Motion Type: Simple Majority Background: None Recommendation: None Budget Impact: None Attachments: WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 14.b October 1, 2024 Liaison and Administration Lori Hensen, City Clerk Lori Hensen, City Clerk Action to be considered: N/A Motion Type: Simple Majority Background: N/A Recommendation: Information only Budget Impact: N/A Attachments: