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HomeMy WebLinkAboutSeptember 16, 2025 - Council PacketPliaill SHAKOPE E Shakopee City Council Regular Meeting Tuesday, September 16, 2025 7:00 PM City Hall, 485 Gorman Street Vision: Shakopee is a distinctive river town with a variety of business, cultural, and recreational opportunities in a safe, welcoming, and attractive environment. Our vision is for Shakopee to continue being the place people want to live, work, and play! 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. Approval of Agenda 5. 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. 5.a Amend and adopt financial policies 5.b Approve the Wetland Replacement Plan for the Elliana Estates Development Improvements 5.c Monthly Financial Report - August 2025 5.d Fall Certification of Delinquent Sewer and Storm Drainage Accounts 5.e Declare amounts, order the preparation of proposed assessments, set a public hearing date for delinquent false alarm & mowing services bills. 5.f Dog Bag Dispenser Request/Donation - Savanna Oaks HOA in Southbridge 1 5.g Approve Parking Restrictions on Zumbro Avenue south of County Road 78. 5.h Resolution Supporting Minnesota Suburban Transit Providers 5.i Declare amounts, order the preparation of proposed assessments, set a public hearing date for delinquent refuse bills. 5.j Declaration of Surplus Audio -Visual Equipment 5.k Roadway De-icing Salt Cooperative Purchasing Venture 5.1 Acceptance of Minnesota Department of Public Safety's Toward Zero Deaths Enforcement Program Grant Award 5.m Acceptance of Minnesota Department of Public Safety's DWI/Traffic Safety Officer Program Grant Award 5.n Approval of the September 2, 2025 City Council Minutes 5.o Approve a Budget Amendment for the CSAH 101 and Shenandoah Drive Intersection Improvements 5.p Sanitary Sewer Manhole Repair. 5.q Change order for playground at Jackson Commons with Kompan installation. 5.r Declare Vehicles as Surplus from Jennifer Lane and approve disposal 6. 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. Business removed from consent agenda 8. Public Hearings 8.a Public hearing for the issuance of refunding bonds for Benedictine Living Community of Shakopee LLC (conduit debt) 9. General Business 9.a 2026 Proposed Property Tax Levies and Debt Levy Cancellations 9.b Policy on Modification and Enhancement of City Property by Non -City Organizations and Groups 2 9.c Discussion of Dog Daycare and Boarding Proposed Ordinance in Residentially Zoned Areas 9.d Proposed Changes to Rental Ordinance adding Short Term Rentals. 10. Reports Liaison and Administration 10.a City Bill List 10.b News and Announcements 11. Other Business 12. Adjourn to October 1, 2025, at 6:00 pm at the Scott County Government Center 3 PI°ILA' SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.a September 16, 2025 Amend and adopt financial policies Nate Reinhardt, Finance Director Action to be considered: Approve amended and new financial policies Motion Type: Simple Majority Background: Staff has reviewed financial policies related to capital assets and improvements. These financial policies document the City's financial management practices and communicate it to future City Councils, staff, rating agencies and the public. Staff is proposing amending or adopting the following financial policies. Capital Improvement & Capital Asset Replacement Policy This new policy replaces the Capital Improvement Program and Equipment Replacement policies. The previous policies were reviewed by City Council, but were never formally approved at the council level. The policy establishes a plan for the construction, replacement and maintenance of the City's infrastructure and capital assets with as minimal impact to City funds as possible. The policy formalizes current city process and practice. Capital Asset Policy This new policy increases the individual capitalization threshold from $10k to $25k for machinery and equipment and $50k for buildings, building improvements and infrastructure. Assets in the aggregate over $100k will be recognized as a capital asset even if the per unit value is under $25k. These thresholds are established solely for depreciation and financial reporting purposes. Disposal of City Surplus Property Policy This policy amends and expands on the previous Policy for Donation of Surplus City Equipment to Nonprofit Organizations to encompass all disposals of City surplus property. The policy provides the City Administrator with the authority to approve the disposal of surplus property valued under $1 k, all vehicles regardless of value and surplus property exceeding $1 k in value, must be approved by the City Council. The policy 4 provides a list of permitted methods of disposal. Lease & SBITA Accounting Policy This new policy will be used mostly internally, but establishes a dollar threshold of $25k for accounting/reporting for leases and subscription -based information technology arrangements (SBITA's). New accounting standards require the city to record the value of lease and software agreements and then amortize them over the remaining years of the agreements. The threshold allows the city to expense agreements below $25k, which was previously how all leases and SBITA's were accounted for prior to the new accounting standards. Recommendation: Motion to approve Budget Impact: N/A Attachments: 34.13 Capital Improvement & Capital Replacement.docx 34.14 Capital Assets Policy.docx 34.15 Disposal of City Surplus Property.docx 34.16 Lease & SBITA Accounting Policy.docx 5 SHAKOPE E CAPITAL IMPROVEMENT & CAPITAL ASSET REPLACEMENT POLICY 34.13.01.P Adopted: September 16, 2025 Amended: Capital Improvement & Capital Asset Replacement Policy The purpose of the capital improvement and capital asset replacement policy is to plan for the construction, replacement and maintenance of the City's infrastructure and capital assets with as minimal impact to City funds as possible. Capital Improvement Program (CIP) 1. The City will develop a 5 -year plan for capital improvements and will update the plan annually. 2. The City will identify the estimated cost and potential funding sources for each capital project, which includes new and replacement infrastructure projects. 3. The City will coordinate development of the capital improvement budget with the development of the operating budget. As resources are available, the most current year of the plan will be incorporated into the current year operating budget. Years two through five are for planning purposes only. 4. Future operating costs associated with new capital improvements will be projected and included in the operating budget. 5. All infrastructure assets will be managed to deliver expected service levels at the lowest total life cycle costs. 6. The City will use inter -governmental assistance to finance those capital improvements that are consistent with the capital improvement plan and City priorities. 7. The City will maintain all its assets at a level adequate to protect the City's and its residents' capital investment and minimize future maintenance and replacement costs. 8. Federal, State and other intergovernmental and private funding sources of a special revenue nature shall be sought out and used as available to assist in financing capital improvements. 9. All infrastructure assets will be inventoried in the City's GIS database. Information will be kept regarding their physical location, date of installation, and maintenance records. Capital Asset Replacement 1. The City will maintain internal service funds for the replacement of equipment, park asset, and city owned buildings. Funding for future replacement costs will be provided through annual internal rent charges to the appropriate departments. 2. The City will plan the capital asset replacement program and revenues to assure that funds remain in the internal service funds to accrue interest. 3. The City will plan for the purchase of replacement vehicles and major equipment as part of the City's 20 -year equipment replacement program. 4. Anticipated replacements and additions will be based on realistic asset life expectancies and cash balances. 5. Capital assets will be maintained to protect its capital investment and minimize future capital expenditures. 6. The City will use the least expensive financing method for all capital equipment purchases. 7. Multiple cost estimates and bids will be requested when appropriate and required by law. 8. Capital asset purchases will follow the requirements of the City's purchasing policy. 9. The initial cost of capital assets not planned through the replacement program will be purchased from department operating budgets. Prioritization - Capital improvements/replacement will be considered using the following priority guidelines (in order): 6 1. Have to do. Projects necessary for public health and safety, or to meet legal mandates. 2. Smart to do. Projects which help maintain existing systems more efficiently. Cost benefits and coordination with related projects will be considered. 3. Want to do. Projects expanding existing systems, providing new services, or for general community betterment. Page 2 of 2 7 SHAKOPE E CAPITAL ASSETS POLICY 34.14.02.P Adopted: October 5, 2010 Amended: September 16, 2025 Capitalizable Assets The City of Shakopee will recognize all items with a per -unit value at or above the capitalization threshold and a useful life of more than 3 years as a capital asset. Assets in the aggregate over $100,000 will be recognized as a capital asset even if the per unit value is under $25,000. The increased threshold (previously $10,000) will be effective for assets purchased on or after January 1, 2025. Software which meets the City's $25,000 threshold on a per -unit basis will be capitalized unless the software is a short-term subscription -based technology arrangement Developer contributions of infrastructure will be recorded at estimated construction cost as provided by the engineering department. Donated capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Repairs/additions of less than $50,000 or not materially improving or extending the life of the assets are not capitalized. Depreciation The City of Shakopee uses the straight-line method of depreciation. Capitalization Threshold/Useful Lives Capital Asset Category Capitalization Threshold Useful Life Land All land is capitalized Indefinite (not depreciated) Park Buildings $50,000 30 years Buildings $50,000 50 years Building Improvements $50,000 25 years Machinery & Equipment $25,000 4 - 20 years Fire Trucks $25,000 10 - 25 years Infrastructure $50,000 30 - 75 years Capital Asset Process Responsibility The Finance Department will have the responsibility of determining procedures and reporting forms to ensure integrity of the capital asset system. 8 The Finance Department will have the responsibility of coordinating an annual physical inventory. Responsibility of the individual capital assets remains with the individual departments and department heads that control and use the capital assets. Page 2 of 2 9 SHAKOPE E DISPOSAL OF CITY SURPLUS PROPERTY POLICY 34.15.02.P Adopted: July 19, 2016 Amended: September 16, 2025 This policy establishes procedures for the disposition of surplus, obsolete or unused supplies, materials and equipment by the City. Departments are responsible for identifying and reporting all surplus to the finance department on at least an annual basis. Approval Levels All vehicles regardless of fair market value and all other property exceeding a fair market value of $1,000 must first be declared surplus by the City Council. The vehicle or property may then be disposed of in the following manner: Estimated Fair Market Value Method of Disposition* Required Authorizations Less than $1,000 Any permitted method City Administrator $1,000 - $175,000 Public Auction, Online Auction, Trade- in, Quotes, Government Sale, Donation to Nonprofit Organization City Council Greater than $175,000 Competitive Bidding (sealed bids by public notice) required. See purchasing policy for bidding requirements. City Council *See list of Permitted Methods of Disposition for further requirements Conflict of Interest, Sales to Employees - The city generally cannot dispose city property to city officers or employees. A limited exception allows cities to sell property to city employees (but not to city officers) if the sale is made by sealed bids or through an auction and the employee has no involvement in the process (Minn. Stat. § 15.054). Transfer between Departments - All surplus items should first be considered for transfer between departments prior to disposition. Grant Surplus - If the surplus was originally purchased using grant funds or other federal funding, check the original documents for disposal requirements. Title - The department shall cause any title or other ownership documents to be transferred to the buyer at the time of transfer. Documentation - Disposition of all surplus should be documented and records kept in accordance with the city's records retention schedule. Permitted Methods of Disposition Depending upon the value and type of surplus property, the possible methods of disposition include: 1. Negotiated Sale - Negotiated sale may be used only for surplus property that has an estimated value of $1,000 or less. 2. Public Auctions - This may include an auction by the City, participating in auctions held by other government units, or the use of a public auction house. 10 3. On-line Auction or Electronic Sales - Various public auction and sales services are available on the internet providing the opportunity of reaching a large number of bidders. The city may contract to sell surplus, obsolete or used, using an electronic selling process in which purchasers compete to purchase the items at the highest purchase price in an open and interactive environment (MN Stat. § 471.345, subd. 17). 4. Trade-in - When replacing City equipment, a trade-in offer may be requested from the vendors submitting quotes/bids on the new equipment. A trade-in may be utilized when the trade-in value is determined to be advantageous to the purchase price or better value than other types of disposal. This method may be used for any type of surplus property, regardless of value. 5. Quotations or Bids - The City may request quotations or bids for surplus property. This method will be used when an individual sale is determined to be advantageous to the sale price. This method may be used for any type of surplus property, regardless of value. At least two quotes should be obtained (if practical). Quotes should be in writing, if quotes are not written, the requestor who received the verbal quote must document the quote in writing. All quotes will be added to the receipt in Laserfiche or kept with the originating department on file until the following year's financial audit is complete. In practice, retaining quotes for two years will ensure quotes are available for auditing purposes. 6. Government to Government Sales - The city does not need to follow competitive bidding requirements when selling property, services or equipment to the national government, the state, or any political subdivision of the state (Minn. Stat. § 471.64, subd. 1). Per state statute, a transfer or sale to another government entity requires City Council authorization. 7. Donation of Surplus Equipment to Nonprofit Organization- State Statute (Minn. Stat. § 471.3459) specifically identifies surplus equipment as used by the city's public works department, cellular phones, and emergency medical and firefighting equipment that is no longer needed by the city because it does not meet industry standards for emergency medical services, police, or fire departments or has minimal or no resale value. Surplus equipment shall be posted as eligible for Donation on the City's website. The City may also use other reasonable means to notify eligible organizations about the availability of surplus equipment. The City shall wait at least 30 days after advertising surplus equipment before approving the donation. The City must provide the following notice, "The [description of surplus property] are being provided to [Donee] "as is" without any warranties, express, implied or oral, including, but not limited to, warranties of merchantability or fitness for a purpose or use." 8. Scrap or Destroy - If property is determined to have only a scrap value, it may be held until enough exists to warrant sale to a scrap yard. If a department determines that an item has little or no value, the item may be discarded as trash or may be given to an outside organization. The benefiting organization may use the item, obtain the item for parts, recycle components, or scrap the item in an environmentally friendly method. Property will not be given directly or indirectly to employees. Page 2 of 2 11 SHAKOPE E LEASE & SBITA ACCOUNTING POLICY 34.16.01, Adopted: September 16, 2025 Amended: Purpose The objective of this policy is to establish guidelines for the recognition, measurement, presentation, and disclosure of leases and Subscription -Based Information Technology Arrangements (SBITAs) entered by the City of Shakopee pursuant to Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, and GASB Statement No. 96, SBITAs. Definitions Lease - A contract that conveys control of the right to use another entity's nonfinancial asset (property, plant, or equipment) for a period of time in an exchange or exchange -like transaction. SBITA - A contract that conveys control of the right to use another party's IT software, alone or in combination with tangible capital assets, for a period of time in an exchange or exchange -like transaction. Thresholds Finance will review and evaluate all leases and SBITAs to ensure compliance with GASB No. 87 and No. 96. A materiality threshold of $25,000 has been established and will be effective with leases and SBITAs entered into on or after January 1, 2025. Short-term is considered 12 months or less. Any lease or SBITA under the materiality threshold will be excluded from this policy. In addition, short-term leases, leases that transfer ownership of the asset, leases of assets held as investments, and short-term SBITAs are excluded. Lessor The City will recognize a lease receivable and deferred inflow of resources, measured at the present value of payments expected to be received during the lease term, discounted at the City's incremental borrowing rate if not stated in the lease. Any payments received at or before commencement relating to future periods will be added to the lease receivable to calculate the deferred inflow of resources. The City will also recognize interest revenue and an inflow of resources amortized using the straight-line method over the lease term. Lessee The City will recognize a right to use lease asset and lease liability measured at the present value of payments expected to be made during the lease term discounted at the city's incremental borrowing rate. Lease payments made to the lessor at or before the beginning of the lease term and any direct costs to place the asset into service will be added to calculate the right to use lease asset. Lease incentives received from the lessor will be deducted from the right to use lease asset. The right to use lease asset will be amortized over the shorter of the useful life or lease term using the straight-line method. SBITA The City will recognize a right to use SBITA asset, measured at the present value of subscription payments expected to be made during the subscription term, plus payments made to the vendor before commencement of the subscription term, and any capitalizable implementation costs less any incentives received from the vendor. A subscription liability will be measured at the present value of payments 12 expected to be received during the term. If the subscription agreement does not provide information about the discount rate implicit in the subscription, the City will use their incremental borrowing rate to calculate the present value of expected subscription payments. The right to use SBITA asset will be amortized over the shorter of the useful life or subscription term using the straight-line method. SBITA activities may be grouped into three categories. 1. Preliminary Project Stage - conceptual framework, evaluation of vendors, and final selection. Payments are expensed. 2. Initial Implementation Stage — design, configuration, coding, testing, data conversion if the asset can't be used without data conversion, charges necessary to place the asset into service. Payments are capitalized and included in the SBITA asset. 3. Operation and Additional Implementation Stage — maintenance, troubleshooting, adding modules, data conversion not necessary for placing the asset into service. Payments will be expensed unless additional modifications result in increased functionality, the ability to perform additional tasks, or increased efficiency. These payments would be capitalized and added to the asset value. Training costs associated with SBITAs will be expensed, regardless of the stage incurred. Lease/SBITA Modification The City will reassess the lease or SBITA terms and calculations annually using professional judgment. Remeasurement will occur if: • The lessee or lessor exercises an option previously determined to not exercise • The lessee or lessor does not exercise an option previously determined to exercise • An event in the lease requiring an extension or termination takes place Page 2 of 2 13 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.b September 16, 2025 Approve the Wetland Replacement Plan for the Elliana Estates Development Improvements Kirby Templin, Water Resources - Environmental Manager Alex Jordan, City Engineer Action to be considered: Adopt Resolution R2025-105, Approving a Wetland Replacement Plan for the Elliana Estates Development Improvements. Motion Type: Simple Majority Background: The applicant (Elli, Inc.) submitted a complete Wetland Conservation Act (WCA) application for a replacement plan for the Elliana Estates residential development project. The project proposes to develop approximately 13.9 acres west of Mystic Lake Drive and north of Valley View Road in Shakopee (PID No. 279160090) into residential homes. The project will include grading for 31 single-family lots, public roadways, and a stormwater pond. The project proposes 0.1657 acres of permanent impact to one wetland for construction of a public roadway and cul-de-sac. The applicant evaluated alternatives that would have avoided impacts to wetlands, which involved a no build alternative. Given the location of the wetlands and unit density requirements, build alternatives that avoided impact were not feasible. Impacts to the wetland were minimized by removing one residential lot from the proposal and pre -treating stormwater for suspended solids prior to discharge to the remaining wetland area. The application was noticed to the WCA Technical Evaluation Panel (TEP) on August 4, 2025. The TEP is advisory in nature and makes technical findings and recommendations. TEP members include representatives from the City, Board of Water and Soil Resources (BWSR), the Scott Soil and Water Conservation District (SWCD), the Minnesota Department of Natural Resources (DNR), and the Scott County Watershed Management 14 Organization. Comments were accepted until September 5, 2025. The TEP provided comments on the application via email and during a meeting on August 18, 2025. Ultimately, the TEP agreed with the proposed project and associated impacts. The applicant will replace permanent wetland impacts at a 2:1 ratio by utilizing credits from a bank owned by Scott SWCD, which meets the replacement plan siting requirements of WCA. The total amount of wetland replacement provided will be 0.3314 acres. On behalf of the City of Shakopee, Local Government Unit for the Wetland Conservation Act, I recommend that the City Council approves the wetland replacement plan for the Elliana Estates project. As a condition of approval, the applicant will be required to provide verification of wetland credit withdrawal from the Board of Water and Soil Resources prior to impacting wetlands. A Notice of Decision is attached for review. Recommendation: Adopt Resolution R2025-105 Budget Impact: None. All expenses are to be reimbursed by the developer. Attachments: Notice of Decision Wetland Impact Map Resolution 2025-105 15 BOARD OF WATER AND SOIL RESOURCES Minnesota Wetland Conservation Act Notice of Decision Local Government Unit: City of Shakopee County: Scott Applicant Name: Elli, Inc. (c/o Trace Mills) Applicant Representative: Midwest Natural Resources (Ken Arndt) Project Name: Elliana Estates LGU Project No. (if any): 2025-7 Date Complete Application Received by LGU: 7/23/2025 Date of LGU Decision: 9/16/2025 Date this Notice was Sent: WCA Decision Type - check all that apply ❑ Wetland Boundary/Type ❑ Sequencing ® Replacement Plan ❑ Bank Plan (not credit purchase) ❑ No -Loss (8420.0415) ❑ Exemption (8420.0420) Part:❑A❑B ❑C❑D❑E ❑F ❑G ❑H Subpart:❑2❑3❑4❑5 0 6111 ❑8❑9 Replacement Plan Impacts (replacement plan decisions only) Total WCA Wetland Impact Area: 0.1657 ac Wetland Replacement Type: ❑ Project Specific Credits: ❑X Bank Credits: 0.3314 ac Bank Account Number(s): 1682 Technical Evaluation Panel Findings and Recommendations (attach if any) ❑X Approve ❑ Approve w/Conditions ❑ Deny ❑ No TEP Recommendation LGU Decision ❑X Approved with Conditions (specify below)" ❑ Approved' List Conditions: Provide verification of wetland credit withdrawal. ❑ Denied Decision -Maker for this Application: ❑ Staff ❑x Governing Board/Council ❑ Other: Decision is valid for: ❑x 5 years (default) ❑ Other (specify): 1 Wetland Replacement Plan approval is not valid until BWSR confirms the withdrawal of any required wetland bank credits. For project - specific replacement a financial assurance per MN Rule 8420.0522, Subp. 9 and evidence that all required forms have been recorded on the title of the property on which the replacement wetland is located must be provided to the LGU for the approval to be valid. LGU Findings — Attach document(s) and/or insert narrative providing the basis for the LGU decision'. ❑X Attachment(s) (specify): Approved wetland impact figure ❑X Summary: Elli, Inc is proposing a residential development on approximately 13.9 ac west of Mystic Lake Drive and north of Valley View Road (PID No. 279160090). The project will include grading for 31 single-family lots, public roadways, and a stormwater pond. The grading for project will result in 0.1657 -ac of permanent wetland impact to one wetland. Mitigation for permanent impact will be required at a 2:1 ratio. The TEP met on August 18, 2025 to review the replacement plan and ultimately agreed with the proposed project and associated impacts. Replacement is proposed via the purchase of 0.3314 ac of wetland credits from Wetland Bank No. 1682 in Scott County. This bank is owned and managed by Scott SWCD. The replacement meets the siting criteria. BWSR NOD Form — November 12, 2019 1 16 1 Findings must consider any TEP recommendations. Attached Project Documents ❑X Site Location Map ❑X Project Plan(s)/Descriptions/Reports (specify): Approved impact figure Appeals of LGU Decisions If you wish to appeal this decision, you must provide a written request within 30 calendar days of the date you received the notice. All appeals must be submitted to the Board of Water and Soil Resources Executive Director along with a check payable to BWSR for $500 unless the LGU has adopted a local appeal process as identified below. The check must be sent by mail and the written request to appeal can be submitted by mail or e-mail. The appeal should include a copy of this notice, name and contact information of appellant(s) and their representatives (if applicable), a statement clarifying the intent to appeal and supporting information as to why the decision is in error. Send to: Appeals & Regulatory Compliance Coordinator Minnesota Board of Water & Soils Resources 520 Lafayette Road North St. Paul, MN 55155 travis.germundson@state.mn.us Does the LGU have a local appeal process applicable to this decision? ❑X Yes' ❑ No 11f yes, all appeals must first be considered via the local appeals process. Local Appeals Submittal Requirements (LGU must describe how to appeal, submittal requirements, fees, etc. as applicable) Send a petition to: City of Shakopee, 485 Gorman Street; Shakopee, MN 55379 Notice Distribution (include name) Required on all notices: ® SWCD TEP Member: Troy Kuphal X❑ BWSR TEP Member: Alyssa Core ® LGU TEP Member (if different than LGU contact): Alison Harwood, WSB ® DNR Representative: Mark Nemeth ® Watershed District or Watershed Mgmt. Org.: Scott WMO (Vanessa Strong) ❑x Applicant: Trace Mills x❑ Agent/Consultant: MNR (Ken Arndt) Optional or As Applicable: ❑ Corps of Engineers: ❑ BWSR Wetland Mitigation Coordinator (required for bank plan applications only): ❑ Members of the Public (notice only): ❑ Other: Signature: Date: This notice and accompanying application materials may be sent electronically or by mail. The LGU may opt to send a summary of the application to members of the public upon request per 8420.0255, Subp. 3. BWSR NOD Form — November 12, 2019 2 17 T. 14Z9-9a9(NB) ,Xvd woe-0ae(Zsa) ]NOHd 90£55 Nh 3nnswJg 'OOl 3un5 z4 '9a ." 'M 066 S21OA]A21f)S / S2133NION3 / S213NNVld .3(11 `II!H .11 sewer tEf 60,Z C -T- L£295 N% '311NSNane zoo 3LIns '1s3M zro aVoa unnoJ 000£ m ma am sxaL3na WV/ SIDVdWI axv'1La t V1o53NNId '33dONVHS saivIsa VNVITIs ," (28 ad0).1Nf100)2=la i> vi OIis �lh 4 DRAWN BY JSO ori. REVISIONS CAD FILE 23634WD PROJECT NO. 23634 Li) C / I 1 I ]NV1 NOAV b,b, h.. dOb LO SZOZ%LO/L — bmp.OMbS9£Z\SNVId 1Yld-3ad\b£9£Z\2,alo, D£ INIO-L RESOLUTION R2025-105 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING A WETLAND REPLACEMENT PLAN FOR ELLIANA ESTATES WHEREAS, the city has received a Wetland Replacement Plan from Elli, Inc. for their site; and WHEREAS, the applicant has demonstrated that the proposed Wetland Replacement Plan Complies with Minn. Rules Parts 8420.0520 (sequencing) and 8420.0522 (Replacement Standards); and WHEREAS, all interested parties on file in the office of the project engineer or identified in Minn. Rule 8420.0255 (Local Government Unit Application and Decision Procedures) have been sent notice of the proposed Wetland Replacement Plan; and WHEREAS, the Technical Evaluation Panel reviewed the proposed Replacement Plan and considered the public values, location, size and type of wetland being altered and recommended approval of the Wetland Replacement Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: 1. Based on the replacement standards in Minn. Rules 8420.0522 (Replacement Standards), and based on the recommendation of the Technical Evaluation Panel, the Wetland Replacement Plan is hereby approved. 2. Approval of the Wetland Replacement Plan shall become effective upon its adoption. 3. A copy of this decision shall be sent to all interested parties and to the applicant. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held this 16th day of September 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: Richard Parsons, City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 19 PI°ILA' SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.c September 16, 2025 Monthly Financial Report - August 2025 Nate Reinhardt, Finance Director Action to be considered: Review of August 2025 General Fund revenues and expenditures. Motion Type: Informational only Background: General Fund - August 2025 (see attachment) Revenue variances (+/- 10% of target) • Taxes will track below budget targets until the 2nd half tax settlement is received in December. • Licenses and permits are tracking ahead of budget targets and the previous year, primarily from building permits, as the city continues to see growth. • Charges for services are tacking ahead of budget targets, primarily from engineering fees related to private development. Recreation revenues are also currently tracking ahead of their budget targets. • Miscellaneous includes interest earnings on investments, which are tracking ahead of budget targets. Expenditure variances (+/- 10% of target) • Total departmental expenditures are within the normal range and similar to last year's percentage through August. • Finance expenditures are currently exceeding budget targets as a result of the timing of the annual audit and property assessment contracts (full year paid during the first half of the year). • The Building Inspections department expenditures are currently exceeding budget targets as a result of the timing of annual software costs (full year paid during the first half of the year). 20 Recommendation: Informational only Budget Impact: N/A Attachments: 2025.08 Monthly Financial Report- with Revenues.pdf 21 CITY OF SHAKOPEE Monthly Financial Report YTD 2025 Budget August 2025 Actual August YTD 2025 Actual Budget Balance Remaining Percent Used 01000 - GENERAL FUND REVENUES: * - TAXES 23,446,450 78,433 * - SPECIAL ASSESSMENTS 17,000 0 * - LICENSES AND PERMITS 3,810,750 354,084 * - INTERGOVERNMENTAL 5,430,000 445,423 * - CHARGES FOR SERVICES 5,236,800 389,386 * - FINES AND FORFEITS 325,200 27,445 * - MISCELLANEOUS 537,100 83,101 TOTAL REVENUES 38,803,300 1,377,873 EXPENDITURES: 11 - MAYOR & COUNCIL (205,900) (9,138) 12 - ADMINISTRATION (2,726,280) (175,354) 13 - CITY CLERK (480,700) (30,479) 15 - FINANCE (1,166,950) (40,993) 17 - PLANNING AND DEVELOPMENT (765,540) (73,332) 18 - FACILITIES (694,300) (44,675) 31 - POLICE DEPARTMENT (12,973,990) (831,706) 32 - FIRE (4,448,100) (277,725) 33 - 1NSPECTION-BLDG-PLMBG-HTG (2,132,100) (133,914) 41- ENGINEERING (1,430,500) (111,248) 42 - STREET MAINTENANCE (2,846,050) (166,665) 44 - FLEET (607,800) (33,343) 46 PARK MAINTENANCE (3,514,200) (289,912) 67 - RECREATION (5,558,990) (499,746) 91 - UNALLOCATED (127,900) (795) TOTAL EXPENDITURES (39,679,300) (2,719,026) OTHER FINANCING * - TRANSFERS IN 876,000 0 * - TRANSFERS OUT 0 0 13,263,631 11,859 3,764,496 3,281,828 5,246,929 225,881 677,282 26,471,906 (141,105) (1,734,264) (281,356) (892,335) (509,168) (375,169) (8,415,879) (2,609,655) (1,645,164) (941,477) (1,880,191) (328,530) (2,536,655) (3,916,546) (13,678) (26,221,172) 10,182,819 5,141 46,254 2,148,172 (10,129) 99,319 (140,182) 12,331,394 (64,795) (992,016) (199,344) (274,615) (256,372) (319,131) (4,558,111) (1,838,445) (486,936) (489,023) (965,859) (279,270) (977,545) (1,642,444) (114,222) (13,458,128) August YTD 2024 Actual 57% y 11,688,219 70% -D 10,398 99% T 3,683,284 60% c 3,074,530 100% T 3,781,665 69% c 188,939 126% rr 520,352 68% 22,947,387 69% (85,837) 64% 4 (1,629,737) 59% c (365,658) 76% 40 (880,226) 67% 4 (573,582) 54% T (392,551) 65% c (7,284,112) 59% (2,293,125) 77% 40 (1,524,080) 66% 4 (855,077) 66% c (1,776,430) 54% T (342,655) 72% c (2,274,755) 70% (3,405,108) 11% T (11,527) 66% (23,694,463) 0 876,000 0% 0 0 #DIV/0! OTHER FINANCING TOTAL 876,000 0 FUND TOTAL Key T Varies more than 10% than budget positively y Varies more than 10% than budget negatively Within 10% of budget 0 876,000 0% 0 (1,341,153) 250,734 (250,734) 0 0 0 (747,075) 22 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.d September 16, 2025 Fall Certification of Delinquent Sewer and Storm Drainage Accounts Kim Weckman, Accounting Clerk Action to be considered: 1. Adopt Resolution R2025-096, certifying assessments for delinquent sewer and storm drainage accounts from July 01, 2024, thru December 31, 2024. 2. Add a $25 administrative charge for collection with payable 2026 property taxes. 3. Write off delinquent accounts less than $25 which total $363.23 and accounts that filed bankruptcy totaling $302.37. Motion Type: Simple Majority Background: The city certifies past due utility bills for collection with property taxes. All property owners have been notified that the utility bills are being certified to the county and have been given adequate opportunity to pay their bill. Resolution R2025-096 certifies delinquent storm drainage and sanitary sewer fees payable in 2026. In addition to these delinquent amounts, a $25.00 administrative charge will be added to each account if not paid on or before September 16, 2025. After the accounts are certified, property owners will have 30 days to pay the balance interest free. After 30 days, interest will be charged at an annual rate of 6.0% dating back to the certification date. Delinquent accounts being certified include former tenants in rental units or prior owners of a property. Since the city's utilities are attached to the property, the city can collect past due balances through the certification process. The city receives a list of delinquent utilities twice a year from the Shakopee Public Utilities. Recommendation: Approve the resolution as requested. 23 Budget Impact: Certification of delinquent accounts ensures the city's utilities are being paid for services received. Attachments: Resolution 2025-096.pdf 9-16-25 Cncl List.pdf 24 RESOLUTION R2025-096 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING CERTIFICATION OF UNPAID UTILITY CHARGES PURSUANT TO MINNESOTA STATUTES, §444.075, SUBD. 3 &3e FOR COLLECTION WITH PAYABLE 2026 PROPERTY TAXES WHEREAS City staff sent out written notice on August 7, 2025, to 34 property owners with unpaid sewer system utility charges and unpaid storm water utility charges totaling $2,863.44, and WHEREAS, said written notice requested that the property owners pay their delinquent utility accounts fully, or make arrangements for payment by September 16, 2025; and WHEREAS, as of September 16, 2025, the unpaid balance has been reduced to 17 property owners in total with a balance of $1,230.25; and WHEREAS, Minnesota Statutes, Section 444.075, Subd. 3 & 3e provides, with respect to municipal water, sanitary sewer and storm sewer charges, that "[t]he governing body may make the charges a charge against the owner, lessee, occupant or all of them and may provide and covenant for certifying unpaid charges to the county auditor with taxes against the property served for collection as other taxes are collected." NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: 1. The unpaid utility charges, as set forth in the attached list, less any collections between September 16, 2025, and the certification date are hereby approved to be certified to the Scott County Auditor for collection as other property taxes are collected. 2. An additional $25.00 administrative fee will be added to the delinquent amount if the delinquent amount is not paid to the city on or before September 16, 2025. 3. The owner of any property so assessed may, at any time prior to October 16, 2025, can pay the whole amount of the assessment on such property without interest to the City of Shakopee Finance Department. 4. Such assessments shall be payable in one installment, payable on or before November 21, 2025, and after October 16, 2025, and shall bear interest at the rate of 6 percent per annum from the date of the adoption of this assessment resolution. 5. The owner may thereafter pay Scott County Treasurer the installment and interest in the process of collection on the current tax list. To the one installment shall be added the interest on the entire assessment from the date of this resolution until December 31, 2025. 6. 35 delinquent accounts with balances less than $25, totaling $363.23 and four accounts that filed bankruptcy totaling $302.37, are written off as uncollectible. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held this 16th day of September 2025. Mayor of the City of Shakopee ATTEST: City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 25 Total PID Sewer Storm Total w/25.00 Fee 270015560 33.66 2.84 36.50 61.50 270030180 75.99 75.99 100.99 270120710 69.29 8.80 78.09 103.09 271920560 60.05 2.84 62.89 87.89 272340150 66.78 11.36 78.14 103.14 272670030 45.37 14.62 59.99 84.99 273160040 22.35 2.84 25.19 50.19 273300510 164.55 8.80 173.35 198.35 273300600 87.04 11.50 98.54 123.54 273340020 54.82 54.82 79.82 273370650 138.95 5.68 144.63 169.63 273370820 37.45 8.66 46.11 71.11 273520190 18.04 14.62 32.66 57.66 273520870 62.30 8.94 71.24 96.24 273620980 78.61 5.96 84.57 109.57 273690430 25.85 5.68 31.53 56.53 273712290 64.51 11.50 76.01 101.01 Total 1,230.25 1,655.25 26 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.e September 16, 2025 Declare amounts, order the preparation of proposed assessments, set a public hearing date for delinquent false alarm & mowing services bills. Kim Weckman, Accounting Clerk Action to be considered: Adopt Resolution 2025-097, a resolution declaring the amount to be assessed, ordering the preparation of proposed assessments, and set the public hearing date for delinquent ordinance services Motion Type: Simple Majority Background: The city routinely certifies past due pills for collection with property taxes. To date, the city has been unable to collect $1,240.00 for false alarms and $90.00 delinquent mowing fees for one parcel. The city will charge an additional $25.00 administrative fee if the delinquent assessments become levied to cover the city's administrative costs. Recommendation: 1. Assess all delinquent false alarm and lawn mowing customers 2. Set the public hearing date of October 21, 2025 3. Beginning October 22, 2025 a city administrative charge of $25.00 will be added to unpaid balances Budget Impact: The $25.00 delinquent charge would be revenue to cover the administrative costs; therefore, there is no impact on the budget. 27 Attachments: R2025-097 Set Public Hearing Ordiance Services 09-16-25.pdf 9-16-25 Council List.pdf 28 RESOLUTION NO. R2025-097 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNNESOTA DECLARING THE AMOUNT TO BE ASSESSED, ORDERING THE PREPARATION OF PROPOSED ASSESSMENTS, AND SETTING THE PUBLIC HEARING DATE FOR DELINQUENT ORDINANCE SERVICES WHEREAS, the City of Shakopee performed mowing services and false alarm services on certain private property and bills for said services are delinquent and collectible pursuant to City Code section(s) 111.14 and 130.17. WHEREAS, an additional $25 fee will be added to each delinquent assessment for city costs if not paid in full by the public hearing date; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. The total amount to be certified for all delinquent accounts is $1,330.00. 2. City staff shall calculate the proper amount to be certified for each delinquent account within the City of Shakopee, as provided by law, and keep a copy of such proposed assessment in City Hall for public inspection. BE IT FURTHER RESOLVED: 1. That a hearing shall be held on the 21st day of October 2025, in the Council Chambers of City Hall at 7:00 P.M. or thereafter, to pass upon such proposed assessments and at such time and place, all person owning property affected by such delinquent accounts and proposed assessments will be given an opportunity to be heard with reference to such assessment. 2. That the City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper of the City of Shakopee at least two weeks prior to the hearing and shall state in the notice the total amount to be certified as delinquent. A mailed notice of assessment roll shall occur not less than two weeks prior to the hearing. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota held this 16th day of September, 2025. Mayor of the City of Shakopee ATTEST: City Clerk 29 PID ADDRESS BALANCE 273040060 1381 GREENWOOD CT 273431220 2006 OMEGA DR 273712230 4897 BULRUSH BLVD 274010420 7117 OAK RIDGE TRL 274370010 6400 CO RD 101 E 130.00 560.00 130.00 90.00 420.00 GRAND TOTAL 1,330.00 30 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.f September 16, 2025 Dog Bag Dispenser Request/Donation - Savanna Oaks HOA in Southbridge Keith Raines, Parks Supervisor Action to be considered: Request that the Mayor and Council approve acceptance of two Dog Waste dispenser stations as a donation from the Savanna Oaks HOA in Southbridge. Motion Type: Simple Majority Background: The Savanna Oaks Neighborhood Association is formally requesting permission to install two dog waste bag dispensers on city -owned property within their neighborhood. These dispensers would be placed in areas that have seen frequent issues with pet waste, and they believe this initiative will help promote a cleaner, more enjoyable environment for all residents. The Association will take full responsibility for the installation, ongoing maintenance, and regular stocking of waste bags. Their goal is to encourage responsible pet ownership and reduce the amount of dog waste in public spaces. The association has identified two preferred locations and would like to coordinate with city staff to finalize placement and proceed with installation, (View map in attachments). This will be an amendment to the the 1999 Villages of Southbridge Homeowners Declaration that details maintenance to all areas in Southbridge. Recommendation: Staff recommends that the Mayor and Council approve acceptance of two Dog Waste dispenser stations that will be donated by the Savanna Oaks HOA in Southbridge. Budget Impact: None. Attachments: Villages of Southbridge Declaration 5.17.1999.pdf 31 2001 -Southbridge Memorandum -Mowing and Landscaping.pdf Dog Bag Dispensary Locations 2025.pdf 32 I. the Scott County Assessor. certify that for tames payable in the current year. I have allocated tamable values to each and or have each unit teroyt . Scott County Assesser Date Doc. No. A 446165 by �, Deputy Fee: $38.50 OFFICE OF THE COUNTY RECORDER SCOTT COUNTY, MINNESOTA Certified Filed and/or Recorded on 05-17-1999 at 11:40 '] AM [ ] PM Pat Boeckrnan, County Recorder 01 VILLAGES OF SOUTHBRIDGE HOMEOWNER DECLARATION Stewart Title This Homeowner Declaration is made this day of JCa-j , 1999, by THE RYLAND GROUP, INC., a Maryland corporation (the "Declarant"), for the purposes of creating Villages of Southbridge, a planned single family residential community. WHEREAS, Declarant is the owner of certain real property located in the City of Shakopee, Scott County, Minnesota, legally described on Exhibit A attached hereto (the "Property"), a portion of which Declarant intends to develop as a residential condominium (the "Condominium") and the remainder of which Declarant intends to develop as single family homes (the "Living Units"); and WHEREAS, Declarant has contracted with Shakopee Crossings Limited Partnership, a Wisconsin limited partnership ("Shakopee Crossings") to purchase certain real property located in the City of Shakopee, Scott County, Minnesota, legally described on Exhibit B attached hereto (the "Additional Real Estate") which Declarant has reserved the option to add to the Property for development as additional residential Units; and WHEREAS, the Property and the Additional Real Estate are currently subject to a certain Declaration of Easements, Covenants and Conditions, dated 3— , 1999, by Shakopee Crossings and the Declarant, obligating end users of lots created within the Additional Real Estate eventually to become members of Villages of Southbridge Homeowners Association, and requiring said lots eventually to become subject to this Declaration. WHEREAS, the Condominium is subject to the Minnesota Common Interest Ownership Act, Minnesota Statutes Chapter 515B, as amended (the "Act"), but the Living Units are not subject to the Act by reason of the exclusion set forth in Section 515B.1 -102(e)(2); and �I r 33 WHEREAS, Declarant desires to establish an association for the Owners of the Living Units, which association shall also act as master association for the Owners of the Condominium Units pursuant to Section 515B.2-121 of the Act, for the purpose of providing for the administration of certain services for the Property, including any Additional Real Estate added thereto, the enforcement of certain uniform covenants, conditions and restrictions, the preservation of the value, amenities and original architectural and aesthetic character of the Property as a residential community. NOW, THEREFORE, Declarant hereby declares that the Property, and any Additional Real Estate added thereto, shall be owned, sold, transferred and conveyed subject to the easements, restrictions, covenants and conditions contained herein, which are for the purpose of protecting the value and desirability of the Property and any Additional Real Estate added thereto, and which shall run with the Property, and any Additional Real estate added thereto, shall be binding on all parties having any right, title or interest in the Property, and any Additional Real Estate added thereto, or any part thereof; their heirs, successors and assigns, and shall inure to the benefit of each Owner thereof. SECTION 1. DEFINITIONS The following words when used in the Homeowner Governing Documents shall have the following meanings (unless the context indicates otherwise): 1.1. "Additional Real Estate" shall mean the real property legally described in Exhibit B, including all improvements located thereon now or in the future, and all easements and rights appurtenant thereto, which property Declarant has the right to add to this Homeowner Declaration. 1.2. "Board" shall mean the board of directors of the Homeowner Association as provided for in the Homeowner Bylaws. 1.3. "Common Elements" shall mean all parts of the Property except the Living Units and the real property subject to the Condominium Declaration. The Common Elements are legally described on Exhibit C attached hereto. 1.4. "Common Expenses" shall mean and include all expenditures made or liabilities incurred by or on behalf of the Homeowner Association and incident to its operation, including without limitation allocations to reserves and those items specifically identified as Common Expenses in the Homeowner Governing Documents. While the Declaration of Easements is in effect, Common Expenses do not include any expenditures made or liabilities incurred incident to the Homeowner Association's operation, maintenance, and repair of the Common Elements, except to the extent allocable under the Declaration of Easements to the Property. 2 34 1.5. "Condominium" shall mean a common interest community condominium proposed to be formed by Declarant on a portion of the Property pursuant to the Act. 1.6. "Condominium Declaration" shall mean that certain Declaration relating to the Condominium. 1.7, "Condominium Unit" shall mean any Unit subject to the Condominium Declaration. 1.8. "Declarant" shall mean The Ryland Group, Inc., a Maryland corporation, its successors and assigns. 1.9. "Declaration of Easements" shall mean that certain Declaration of Easements, covenants and conditions dated 3 - / y , 1999, by Shakopee Crossings and Declarant, filed of record 3 - Z 5 , 1999, in the office of the Scott County Recorder as Document No. y<//8.1 ' 1.10. "Dwelling(s)" shall mean one or more buildings or parts of a building designed and intended for occupancy as a single family or multifamily residence, and located within the Property. Dwellings may include attached or detached homes or Condominium Units, together with all walkways, stoops, porches, patios, decks, balconies, garages, garage aprons, driveways, and other improvements serving such building(s). 1.11. "Eligible Mortgagee" shall mean any Person owning a mortgage on any Unit, which mortgage is first in priority upon foreclosure to all other mortgages that encumber such Unit, and which has requested the Homeowner Association, in writing, to notify it regarding any proposed action which requires approval by a specified percentage of Eligible Mortgagees. 1.12. "Homeowner Association" shall mean the Villages of Southbridge Homeowner Association, a nonprofit corporation which has been created pursuant to Chapter 317A of the laws of the State of Minnesota, whose members consist of all Owners as defined herein. 1.13. "Homeowner Bylaws" shall mean the Homeowner Bylaws, attached hereto as Exhibit D, governing the operation of the Homeowner Association, as amended from time to time. 1.14. "Homeowner Governing Documents" shall mean this Homeowner Declaration, the Homeowner Bylaws, and the articles of incorporation of the Homeowner Association, as amended from time to time, all of which shall govern the use and operation of the Property. 1.15. "Living Unit" shall mean a platted lot within the Property on which is located a single family detached home and which is subject to this Homeowner Declaration. 1.16. "Master Association" shall mean the Southbridge Community Association, a corporation formed under Minnesota Statutes, Chapter 317A, its successors and assigns, the members of which include, among others, the Homeowner Association. 1.17. "Master Declaration" shall mean the Southbridge Master Declaration by Shakopee Crossings Limited Partnership, Valley Green Business Park Limited Partnership and the Minneapolis Foundation, dated and filed of record on July 31, 1998, in the Office of the Scott 3 T J T 35 County Registrar of Titles as Document No. 96791, and in the Office of the Scott County Recorder as Document No. 421862. 1.18. "Master Governing Documents" shall mean the Master Declaration, the articles of incorporation and bylaws of the Master Association, and the Master Rules (as defined in the Master Declaration). 1.19. "Member" shall mean all persons who are members of the Homeowner Association by virtue of being Owners as defined in this Homeowner Declaration. The words "Owner" and "Member" may be used interchangeably in the Homeowner Governing Documents. 1.20. "Occupant" shall mean any person or person, other than an Owner, in possession of or residing in a Unit. 1.21. "Open Areas" shall mean all parts of the Property except the Dwellings and approved accessory buildings and including, without limitation, the Common Elements. 1.22. "Owner" shall mean a Person who owns a Unit, but excluding contract for deed vendors, mortgagees and other secured parties. The term "Owner" includes, without limitation, contract for deed vendees and holders of a life estate. 1.23. "Person" shall mean a natural individual, corporation, limited liability company, partnership, trustee, or other legal entity capable of holding title to real property. 1.24. "Plat" shall mean the recorded plat(s) depicting the Property pursuant to the requirements of Minnesota Statutes Chapter 505 and 515B, including any amended or supplemental plat recorded against the Property or any portion thereof from time to time. 1.25. "Property" shall mean all of the real property submitted to this Homeowner Declaration now or in the future. The Property as of the date of this Homeowner Declaration is legally described in Exhibit A and Exhibit C attached hereto. 1.26. "Rules and Regulations" shall mean the Rules and Regulations of the Homeowner Association as approved from time to time pursuant to Section 5.6. 1.27. "Unit" shall mean any Condominium Unit and any Living Unit subject to this Homeowner Declaration and constituting a part of the Property from time to time. SECTION 2. PROPERTY 2.1. Property The Property subject to this Homeowner Declaration is described in Exhibit A attached hereto. Exhibit A may be amended from time to time to include other property, as authorized by Section 2.2. 4 36 2.2. Annexation of Additional Real Estate. The Additional Real Estate may be added to the Property and subjected to this Homeowner Declaration at the discretion of the Declarant in accordance with Section 17 of this Homeowner Declaration and, if applicable, the Condominium Declaration. In connection with the annexation of the Additional Real Estate, the Homeowner Declaration shall be amended as necessary to fairly reallocate Common Expenses, voting rights and memberships. If Declarant fails to acquire the Additional Real Estate, it shall, nevertheless, cooperate with any other developer acquiring said Additional Real Estate, in subjecting the Additional Real Estate to this Declaration at a reasonably appropriate time. SECTION 3. COMMON ELEMENTS The Common Elements and their characteristics are as follows: 3.1. Description. All of the Property not included within the Living Units or the Condominium constitutes Common Elements. The Common Elements include those parts of the Property described in Exhibit C. The Common Elements are owned by the Homeowners Association for the benefit of the Owners and Occupants. 3.2. Easements. The Common Elements shall be subject to appurtenant easements for services, public and private utilities, use and enjoyment in favor of each Unit and its Owners and Occupants, subject to the right of the Homeowner Association to establish reasonable Rules and Regulations governing use of the Property. 3.3. Maintenance. Subject to Sections 5, 6 and 9, all maintenance, management and operation of the Open Area, and the maintenance, repair and replacement of the Common Elements shall be the responsibility of the Homeowner Association. 3.4. Expenses. Common Expenses for the maintenance, management and operation of the Open Area and the maintenance, repair and replacement of the Common Elements shall be assessed and collected from the Owners in accordance with Section 6. SECTION 4 HOMEOWNER ASSOCIATION MEMBERSHIP: RIGHTS AND OBLIGATIONS Membership in the Homeowner Association, and the allocation to each Unit of a portion of the votes in the Homeowner Association and a portion of the Common Expenses of the Homeowner Association shall be governed by the following provisions: 4.1. Membership. Each Owner shall be a Member of the Homeowner Association by virtue of Unit ownership, and the membership shall be appurtenant to and may not be separated from 5 37 ownership of any Unit. An Owner's membership shall terminate when the Owner's ownership terminates. When more than one Person is an Owner of a Unit, all such Persons shall be Members of the Homeowner Association, but multiple ownership of a Unit shall not increase the voting rights allocated to such Unit nor authorize the division of the voting rights. 4.2. Voting and Common Expenses. Voting rights and Common Expense obligations are allocated equally to each Unit, except that special allocations of Common Expenses shall be permitted as provided in Section 6.1. 4.3. Appurtenant Rights and Obligations. The ownership of a Unit shall include the voting rights and Common Expense obligations described in Section 4.2. Said rights, obligations and interests, and the title to the Units, shall not be separated or conveyed separately. The allocation of the rights, obligations and interests described in this Section may not be changed, except in accordance with the Homeowner Governing Documents. 4.4. Authority to Vote. The Owner, or some natural person designated to act as proxy on behalf of the Owner, and who need not be an Owner, may cast the vote allocated to such Unit at meetings of the Homeowner Association; provided, that if there are multiple Owners of a Unit, only the Owner or other Person designated pursuant to the provisions of the Homeowner Bylaws may cast such vote. The voting rights of Owners are more fully described in Section 3 of the Homeowner Bylaws. SECTION 5 ADMINISTRATION The administration and operation of the Homeowner Association, including but not limited to the acts required of the Homeowner Association, shall be governed by the following provisions: 5.1. General. The operation and administration of the Homeowner Association shall be governed by the Homeowner Governing Documents, subject to the Master Governing Documents. Subject to the rights of the Owners set forth in the Homeowner Governing Documents, the Homeowner Association shall be responsible for the repair and maintenance of the Open Areas (including, without limitation, the Common Elements) and certain other areas as more specifically described in Section 9. The Homeowner Association shall have all powers described in the Homeowner Governing Documents with respect to the Living Units, and all powers delegated to it by the Condominium Declaration or the board of directors of the Condominium Association with respect to the Condominium. In addition, the Homeowner Association shall have all power and authority conferred upon it by the Declaration of Easements while the same is in effect. All power and authority of the Homeowner Association shall be vested in the Board, unless action or approval by the individual Owners is specifically required by the Homeowner Governing Documents. All references to the Homeowner Association shall mean the Homeowner Association acting through the Board unless specifically stated to the contrary. 6 38 5.2. Operational Purposes. The Homeowner Association shall (i) maintain the Open Areas, (iii) maintain, repair and replace the Common Elements, (iii) administer and enforce the covenants, restrictions, easements, charges and liens set forth in the Homeowner Governing Documents and the Rules and Regulations, and (iv) preserve the value and architectural harmony and character of the Property. 5.3. Binding Effect of Actions. All agreements and determinations made by the Homeowner Association in accordance with its powers and voting rights established by the Homeowner Governing Documents shall be binding upon all Owners and Occupants, and their lessees, guests, heirs, personal representatives, successors and assigns, and all secured parties. 5.4. Homeowner Bylaws. The Homeowner Association shall have bylaws which, together with any amendments thereto, shall govern the operation and administration of the Homeowner Association. 5.5. Management. The Board may delegate to a manager or managing agent the management duties imposed upon the Homeowner Association's officers and directors by the Homeowner Governing Documents; provided, however, that such delegation shall not relieve the officers and directors of the ultimate responsibility for the performance of their duties as prescribed by the Homeowner Governing Documents and by law. Such manager or managing agent shall have the appropriate real estate license(s) to properly manage the Property. 5.6. Rules and Regulations. The Board shall have authority to approve and implement such reasonable Rules and Regulations as it deems necessary from time to time for the purpose of operating and administering the affairs of the Homeowner Association and the use of the Property in accordance with Section 5.2 above; provided that the Rules and Regulations shall not be inconsistent with the rules and regulations of the Master Association, the Master Governing Documents, the Homeowner Governing Documents or, with respect to the Condominium, the powers delegated to the Homeowner Association under the Condominium Declaration. New or amended Rules and Regulations shall be effective only after reasonable notice thereof has been given to the Owners. 5.7. Homeowner Association Assets; Surplus Funds. All funds and real or personal property acquired by the Homeowner Association shall be held and used for the benefit of the Owners for the purposes stated in the Homeowner Governing Documents. Surplus funds remaining after payment of or provision for Common Expenses and reserves shall be credited against future assessments or added to reserves, as determined by the Board. SECTION 6. ASSESSMENTS FOR COMMON EXPENSES 6.1. General. Assessments for Common Expenses shall be determined and assessed against the Units by the Board, in its discretion; subject to the limitations set forth in Sections 6.2 and 6.3, and the requirements of the Homeowner Bylaws. Assessments for Common Expenses shall 7 1r I 39 include annual assessments and may include special assessments. Assessments shall be allocated among the Units according to the Common Expense allocations set forth in Section 4.2, subject to the following qualifications: a. Any Common Expense benefiting only the Living Units or a portion of them shall be assessed only against the Living Units. Any Common Expense benefiting only the Condominium Units or a portion of them shall be assessed only against the Condominium Association. Any Common Expense or portion thereof benefiting fewer than all of the Units may be assessed exclusively against the Units benefited, on the basis of (i) equality, (ii) square footage of the area being maintained, repaired or replaced, or (iii) the actual cost incurred with respect to each Unit. b. The costs of all insurance premiums paid by the Homeowner Association shall be assessed equally for all Units. c. Reasonable attorneys' fees and other costs incurred by the Homeowner Association in connection with (i) the collection of assessments and (ii) the enforcement of the Homeowner Governing Documents or the Rules and Regulations, against an Owner or Occupant or their guests, may be assessed against the Owner's Living Unit or, if the Owner owns a Condominium Unit, then against the Condominium Association. d. Fees, charges, late charges, fines and interest, as well as insurance deductibles and costs related to damages caused by Owner, may be assessed against the Owner's Living Unit or if the Owner owns a Condominium unit, then against the Condominium Association. e. Assessments levied to pay a judgment against the Homeowner Association may be levied only against the Units existing at the time the judgment was entered, in proportion to their Common Expense liabilities. f. If any damage to the Common Elements or another Unit is caused by the act or omission of any Owner or Occupant, or their guests, the Homeowner Association may assess the costs of repairing the damage exclusively against the Owner's Living Unit, or in the case of an Owner or Occupant of a Condominium Unit, against the Condominium Association, to the extent not covered by insurance. If any installment of an assessment becomes more than sixty (60) days past due, then the Homeowner Association may, upon ten (10) days written notice to the Owner, declare the entire amount of the assessment and late charges immediately due and payable in full. g. 8 40 h. If Common Expense liabilities are reallocated for any purpose, Common Expense assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated Common Expense liabilities. i. Assessments under Subsections 6.1.a -h shall not be considered special assessments as described in Section 6.3. J. Notwithstanding the foregoing provisions of this Section 6.1, any assessments attributable to a Condominium Unit(s) shall be invoiced to the Condominium Association as a whole. The Homeowner's Association shall provide to the Condominium Association, with such invoice, a detailed explanation of any charges made pursuant to Subsections 6.1.a -f. The Homeowner's Association shall have no right to collect directly from Owners of Condominium Units any assessments or any charges referenced in Subsections 6.1.a -f., such right being the prerogative of the Condominium Association. 6.2. Annual Assessments. Annual assessments shall be established and levied by the Board. Each annual assessment shall cover all of the anticipated Common Expenses of the Homeowner Association for that year. Annual assessments shall provide, among other things, for contributions to a separate reserve fund in an amount reasonably anticipated to cover the periodic cost of maintenance of the Open Areas, and maintenance, repair and replacement of the Common Elements. After a Common Expense assessment is levied, the Board may modify the annual assessment upward or downward from time to time. Written notice of any modification of the annual general assessment shall be sent to every Owner subject to this Homeowner Declaration. 6.3. Special Assessments. In addition to annual assessments, the Board may levy in any assessment year a special assessment against all Units for the purpose of defraying in whole or in part (i) the cost of any unforeseen or unbudgeted Common Expense, (ii) general or specific reserves for maintenance of the Open Areas, and (iii) the maintenance, repair and replacement of the Common Elements, and any fixtures or other property related thereto. 6.4. Working Capital Fund. To provide the Homeowner Association with initial working capital, the Association shall establish a segregated working capital fund to be used by the Association for Association purposes, including, but not limited to meeting unforeseen expenditures or purchasing additional equipment or services. There shall be contributed on a one-time basis for each Unit sold by Declarant an amount equal to one -sixth (1/6) of the annual estimated Common Expense assessment for the Unit being conveyed. The contribution to the working capital fund shall be paid by the purchaser of a Unit at the time Declarant closes on the sale of the Unit. The amounts paid into this fund are in addition to the regular installments of assessments, but are intended as a contribution to the Association's initial working capital. Declarant may not use the funds to defray any of its expenses, reserve contributions, or construction costs, or to make up any budget deficit. 6.5. Liability of Owners for Assessments. The obligations of an Owner or the Condominium Association to pay assessments hereunder shall commence as to any Condominium Unit immediately upon issuance of a certificate of occupancy for that Unit, and as to any Living Unit, 9 T 41 upon closing of the initial sale of such Living Unit by the Declarant. Each annual assessment shall cover all of the anticipated Common Expenses of the Homeowner Association for that year, except that the first annual assessment for any Unit shall be adjusted according to the number of months then remaining in the calendar year. Notwithstanding anything contained herein to the contrary, until January 1 of the year immediately following the conveyance of the first Unit by the Declarant, such assessments for any Unit shall not exceed $ {0 3 ° per month. The Owner of a Living Unit at the time an assessment is payable with respect to his or her Living Unit shall be personally liable for the share of the Common Expenses assessed against such Living Unit. Such liability shall be joint and several where there are multiple Owners of a Living Unit. The Condominium Association shall be liable for the Common Expenses assessed against any Condominium Unit. The liability is absolute and unconditional. Neither an Owner of a Living Unit, nor the Condominium Association, shall be exempt from liability for payment of his, her or its share of Common Expenses for any reason, including without limitation, by right of set-off, by waiver of use or enjoyment of any part of the Property, by absence from or abandonment of a Unit, by the waiver of any rights, or by reason of any claim against the Homeowner Association or its officers, directors or agents, or for their failure to fulfill any duties under the Homeowner Governing Documents. The Homeowner Association may invoke the charges, sanctions and remedies set forth in Section 13, in addition to any remedies provided elsewhere in the Homeowner Governing Documents or by law, for the purpose of enforcing its rights hereunder. 6.6. Assessment Lien. The Homeowner Association has a lien on a Living Unit for any assessment levied against that Living Unit from the time the assessment becomes due. If an assessment is payable in installments, the full amount of the assessment is a lien from the time the first installment thereof becomes due. Fees, charges, working capital contributions, late charges, fines and interest charges imposed by the Homeowner Association are liens, and are enforceable as assessments under this Section. Recording of the Homeowner Declaration constitutes record notice and perfection of any lien under this Section against a Living Unit, and no further recordation of any notice of or claim for the lien is required. Notwithstanding anything contained herein, the Homeowner Association shall have no lien against a Condominium Units for assessments or other amounts charged to the Condominium Association. It is the intention that the Condominium Association, rather than the Homeowner Association, may allocate assessments charged to the Condominium Association among the Condominium Units and may take such actions to enforce the same as the Condominium Board, in its discretion, deems appropriate, pursuant to the Condominium Governing Documents. 6.7, Foreclosure of Lien; Remedies. If the Homeowner Association has provided for payment of an assessment in installments, and any installment of an assessment against a Unit or the Condominium Association becomes more than sixty (60) days past due, then the Homeowner Association may, upon ten (10) days prior written notice to the Owner or the Condominium Association, as the case may be, declare the entire amount of the assessment and late charges immediately due and payable in full. A lien for Common Expenses may be foreclosed against a Living Unit under the laws of the State of Minnesota (i) by action, or (ii) by advertisement as a lien under a mortgage containing a power of sale. The Homeowner Association, or its authorized representative, shall have the power to bid in at the foreclosure sale and to acquire, hold, lease, mortgage and convey any Living Unit so acquired. The Owner and any other Person claiming an interest in the Living Unit, by the acceptance or assertion of any interest in the Living Unit, 10 T �� 1 42 grants to the Homeowner Association a power of sale and full authority to accomplish the foreclosure. The Homeowner Association shall, in addition, have the right to pursue any other remedy at law or in equity against the Owner who fails to pay any assessment or charge against the Living Unit. 6.8. Lien Priority; Foreclosure. A lien under this Section is prior to all other liens and encumbrances on a Living Unit except (i) liens and encumbrances recorded before the Homeowner Declaration, (ii) any first mortgage on the Living Unit, and (iii) liens for real estate taxes and other governmental assessments or charges against the Living Unit. Any holder of a first mortgage on a Unit or any purchaser of a first mortgage at a foreclosure sale, that comes into possession of a Unit by foreclosure of the first mortgage or by deed or assignment in lieu of foreclosure, takes the Unit free of any claims for unpaid assessments or other charges or liens imposed against the Unit by the Homeowner Association which have accrued against such Unit prior to the acquisition of possession of the Unit by said first mortgage holder or purchaser, except that any unpaid assessments or charges may be reallocated equally among all the Units. 6.9. Conveyances; Statement of Assessments. In a voluntary or involuntary conveyance of a Living Unit, the buyer shall not be personally liable for any unpaid assessments and other charges made by the Homeowner Association against the seller or the seller's Living Unit prior to the time of conveyance to the buyer, unless expressly assumed by buyer. However, the lien of such assessments shall remain against the Living Unit until satisfied. Any seller or buyer shall be entitled to a statement, in recordable form, from the Homeowner Association setting forth the amount of the unpaid assessments against the Living Unit, including all assessments payable in the Homeowner Association's current fiscal year, which statement shall be binding on the Homeowner Association, seller and buyer. SECTION 7. RESTRICTIONS ON USE OF PROPERTY 7.1. General Restrictions. All Owners and Occupants, and all secured parties, by their acceptance or assertion of an interest in the Property, or by their occupancy of a Unit, covenant and agree that, in addition to any other restrictions which may be imposed by the Homeowner Governing Documents, the occupancy, use, operation, alienation and conveyance of the Property shall be subject to the following restrictions: a. Subdivision Prohibited. No Unit nor any part of the Common Elements may be subdivided or partitioned without the prior written approval of all Owners and all secured parties holding first mortgages on the Units. b. Residential Use. The Units shall be used exclusively for private, single family residential purposes; except that Declarant shall be entitled to maintain model homes and other sales facilities upon any Unit or Units owned by it. No Unit may be used for transient, hotel, commercial, business, professional or other non- residential purposes, except as provided in Section 7.1.c. 11 f I 43 c. Business Use Restricted. No business, trade, occupation or profession of any kind, whether carried on for profit or otherwise, shall be conducted, maintained or permitted on the Property; except (i) an Owner or Occupant residing in a Unit may keep and maintain his or her business or professional records in such Unit and handle matters relating to such business by telephone or correspondence therefrom, provided that such uses are incidental to the residential use, and do not involve any observable business activity such as signs, advertising displays, bulk mailings, deliveries, or visitation or use of the Unit by customers or employees; and (ii) the Homeowner Association may maintain offices on the Property for management and related purposes. d. Signs. Other than signs regulating traffic, address signs and monuments placed by the Association, no sign of any kind shall be displayed to the public view on any Unit except one professional sign of not more than one (1) square foot, and one sign of not more than five (5) square feet advertising the Unit for sale, or such larger sign as may be approved by the Board; provided, however, Declarant may erect and maintain upon any Unit or Units owned by it or on the Common Elements such signs as it deems appropriate to advertise the Property until Declarant conveys the last Unit. e. Parking. Driveways and parking areas on the Property shall be used only for parking of vehicles owned or leased by Owners, Occupants and their guests, and such other incidental uses as may be authorized in writing by the Homeowners Association. No trailers, boats, buses, motor homes, campers, or other types of recreational vehicles shall be parked outside of a garage more than seventy-two (72) consecutive hours within a two (2) week period. The use of driveways and other parking areas on the Property, and the types of vehicles and personal property permitted thereon, shall also be subject to Rules and Regulations of the Homeowner Association, and the Homeowner Association shall have the right to tow vehicles parked illegally or in violation of the Rules and Regulations or to remove unauthorized personal property. f. Pets. No pets shall be permitted to be kept on the Property by any Owner or Occupant, except conventional domesticated animals of a type normally kept as pets in residential areas. No kennel, dog house or outside run shall be constructed or maintained on any Living Unit unless located so as to be screened from streets and from neighboring Units. No pet shall be kept for any commercial purpose nor shall pets be bred for a commercial purpose upon the Property. Any dog, whenever outside of a Unit, must be kept under the direct control of the pet owner or another person able to control the pet. The person in charge of the pet must clean up after it. The Board may adopt more specific rules and penalties not inconsistent with the foregoing. g. Garbage. No Unit nor any part of the Open Area shall be used or maintained as a dumping ground for rubbish, trash, garbage or other waste. Garbage, rubbish, 12 44 trash and recycling shall not be kept on any Unit except in sanitary containers. All equipment for the storage or disposal of such material shall be kept in a clean and sanitary condition, and kept inside, except on days established for removal of such trash and recycling. h. Quiet Enjoyment: Interference Prohibited. All Owners, Occupants and their guests shall have a right of quiet enjoyment in their respective Units, and shall use the Property in such a manner as will not cause a nuisance, nor unduly restrict, interfere with or impede the use of any other Unit by other Owners, Occupants and their guests. Compliance with Law. No use shall be made of the Property which would violate any then existing municipal codes or ordinances, or state or federal laws, nor shall any act or use be permitted which could cause waste to any Unit, cause a material increase in insurance rates on the Property, or otherwise cause any unusual liability, heath or safety risk, or expense, for the Homeowner Association or any Owner or Occupant. j. Temporary Residences. No structure of a temporary character, trailer, recreational vehicle, tent, shack, garage, barn, fish house or other building shall be used on the Property at any time as a residence, either temporarily or permanently. k. Aerials, Antenna and Satellite Dishes. Notwithstanding anything to the contrary in this Declaration, an Owner may, without Board approval, install within the Owner's Unit (i) an antenna one (1) meter or less in diameter for the purpose of receiving direct broadcast/satellite service or video programming services, or (ii) any antenna for receiving television broadcast signals, subject to government regulations regarding masts and other related equipment. The antenna shall be installed so as to minimize its visibility from the exterior of the Unit, avoid damage to any Unit, and minimize liability of the Association or any Unit Owner; provided that such requirements do not impose unreasonable expense or delay, preclude reception of an acceptable quality signal, or violate any government laws or regulations. The Board may impose Rules and Regulations regarding antennas, consistent with law and this Declaration. 1. Condition of Dwelling. The Owner of each Living Unit shall keep his or her Dwelling, and accessory buildings, porches, decks, patios, garages, garage aprons, driveways, walkways, stoops, and other improvements, in good condition and repair. The Condominium Association shall keep the Dwellings housing the Condominium Units in good condition and repair. m. Interference with Irrigation System. Nothing shall be built, installed or otherwise done on any part of the Property which would have the effect of obstructing or impairing the underground irrigation system serving the Property. 13 11 45 n. Owner Landscaping. Any landscaping, gardens, swing sets, sandboxes or similar improvements installed or planted by an Owner or Occupant in accordance with Section 8, must be placed within a defined space surrounded by landscaping edging. The Board may, in its discretion, establish rules and regulations regarding the plant or construction materials for such improvements. 7.2. Rules and Regulations. The Homeowner Association may adopt, amend and revoke Rules and Regulations not inconsistent with the Homeowner Governing Documents and the Declaration of Easements, as follows: (a) regulating the use of the Units and the Open Area and the conduct of Owners and Occupants, which may jeopardize the health, safety and welfare of other Occupants, which involve noise or other disturbing activity, or which may damage other Units; (b) regulating or prohibiting animals; (c) regulating the exterior appearance and maintenance of the Property, including by way of illustration but without limiting the generality of the foregoing, balconies and patios, window treatments, signs and other displays, regardless of whether inside a Dwelling; (d) implementing Homeowner Governing Documents; and (e) other rules facilitating the operation of the Homeowner Association. After reasonable notice and an opportunity to be heard, the Homeowner Association may impose reasonable sanctions, including the levying of reasonable fines, for violations of the Homeowner Governing Documents and the Rules and Regulations. 7.3. Alterations. No alterations, changes, improvements, repairs or replacements of any type, temporary or permanent, structural, aesthetic or otherwise (collectively referred to as "alterations") shall be made, or caused or allowed to be made, by any Owner or Occupant, or their guests, in any part of the Open Area, or in any part of the Dwelling which affects the Open Area or which is visible from the exterior of the Dwelling without the prior written authorization of the Board, or a committee appointed by it, as provided in Section 8. The Board, or the appointed committee if so authorized by the Board, shall have authority to establish reasonable criteria and requirements for alterations, and shall be the sole judge of whether the criteria are satisfied. 7.4. Access to Units. In case of emergency, all Open Areas are subject to entry, without notice and at any time, by an officer or member of the Board, by the Homeowner Association's management agents or by any public safety personnel. Entry is also authorized for maintenance purposes under Section 9 and for enforcement purposes under Section 13. SECTION 8. ARCHITECTURAL CONTROL 8.1. Structures and Landscaping. Except as expressly provided in this Sections 7.1k and 8, no building, deck, patio, fence, wall, enclosure, antenna, satellite dish or receptor or other structure, shall be commenced, erected or maintained upon the Property, nor shall any exterior addition to, or change or alteration therein be made, nor shall any material topographical or landscaping change be made, until the plans and specifications showing the nature, kind, shape, height, materials, and, if required, a plan showing the location of the structure, elevation and finished 14 46 grade levels, shall have been submitted to and approved in writing by the Board. In approving such improvements, the Board shall consider the (i) quality and type of workmanship and materials, (ii) harmony of external size, color and design, (iii) location in relation to surrounding structures and topography, (iv) ease of maintenance and repair, (v) adequate protection of the Property, the Homeowner Association, the Condominium Association, Owners and Occupants from liability and liens arising out of the proposed alterations, and (vi) compliance with governmental laws, codes and regulations. The Board may promulgate additional detailed standards and procedures governing its areas of responsibility and practice, and may require any additional landscaping or plantings to be maintained by the Owner. Approval of alterations which encroach upon the Common Elements shall create an appurtenant easement for such encroachment in favor of the Unit with respect to which the alterations are approved; provided, that any easement for a deck, patio or porch other than as originally constructed shall be approved by resolution of the Board and a file of such resolutions shall be maintained permanently as a part of the Homeowner Association's records. Notwithstanding the foregoing, (i) the Board may, in its discretion, and in the case of decisions directly affecting only one or more Living Units, shall, delegate its authority under this Section 8 to an architectural control committee appointed by it and consisting of at least three (3) persons, a majority of whom are Owners of Living Units, (ii) so long as Declarant is the Owner of a Unit, Declarant's written consent shall also be required for such alterations, and (iii) so long as Declarant is the Owner of a Unit, improvements by Declarant to the Property shall not be subject to this Section 8.1, and improvements by any other developer acquiring any portion of the Additional Real Estate shall only be subject to the approval of the Declarant on the terms set forth in this Section 8. 8.2. Cosmetic Changes. No change in exterior siding, roofing materials, exterior doors, windows, or exterior color shall be made to a Dwelling or other structure until such proposal has been submitted to and approved by the Board in writing as to harmony in relation to surrounding structures. No permission or approval shall be required to rebuild a Unit in accordance with originally approved plans and specifications. Nothing contained herein shall be construed to limit the right of an Owner to remodel the interior of the Owner's residence or to paint the interior of the Owner's residence any color desired. 8.3. Review Procedures. Accompanying such plans, specifications, site plans and requests for approval shall be the name and address of the party to whom approval or disapproval is to be mailed. Approval or disapproval will be given only in writing and will be effective on the date of postmark when mailed by first-class mail, postage prepaid and addressed to the named party. Plans and specifications and site plans shall be deemed to have been received by the Board when one or more of the members of the Board or the Board's designated representative acknowledges receipt of all such documents necessary to review the proposed alteration or improvement. If the Board fails to approve or disapprove plans and specifications, site plans or requests within sixty (60) days after the submission of all necessary documentation to it, approval will be deemed to have been granted. 8.4. Removal and Abatement. The Board may undertake any measures, legal or administrative, to enforce compliance with this Section, including without limitation, the removal or alteration of any structure on the Property erected in violation of the terms of this Homeowner Declaration, and the commencement of appropriate judicial proceedings to compel 15 I I 47 the alteration or demolition of any non -conforming construction or other violation, and shall be entitled to recover from the Owner causing or permitting the violation, all attorneys' fees, costs of enforcement, and to the extent applicable, costs of material, labor and associated expenses incurred by the Homeowner Association in correcting the violation, whether or not a legal action is started. Such attorneys' fees and costs incurred by the Board shall be levied against such Unit as an assessment as provided herein, and shall be a personal obligation of the Owner. 8.5. Variances. Reasonable variances to the covenants, conditions and restrictions may be granted by the Board after review, in order to overcome practical difficulties or to prevent unnecessary hardship. A variance may only be granted if it is not detrimental to other property and shall not defeat the purpose of this Homeowner Declaration. SECTION 9. MAINTENANCE 9.1. Maintenance by Homeowner Association. The Homeowner Association shall provide for all maintenance of the Open Areas, specifically including private street, island, median and monument maintenance, repair, and replacement, lawn mowing, lawn maintenance, maintenance of trees, shrubs, and other landscaping installed by Declarant or the Homeowner Association (including watering, pruning and trimming of grass, trees, shrubs and plant beds), snow and ice removal from driveways, walkways, stoops and streets, and trash removal. The Homeowner Association will provide irrigation throughout the Open Areas. Following transfer of the Common Elements to the Homeowner Association, and for so long as the Declaration of Easements remains in effect, the Homeowner Association shall be responsible for the obligations of the Maintenance Administrator (as defined in the Declaration of Easements). Except as otherwise provided herein, the Homeowner Association shall have no responsibility for interior or exterior maintenance, repair or replacement of the Dwellings (including, without limitation, the accessory buildings, decks, patios, balconies, garages, fences, walls, driveways, walkways, stoops and other improvements associated therewith). Notwithstanding the foregoing, unless the Board elects otherwise, the Homeowner Association shall have no responsibility for yard damage caused by pets, or for maintenance, repair or replacement of trees, shrubs, gardens or other landscaping not installed by the Declarant or the Association. The Homeowner Association shall have easements as described in Section 11 to perform its obligations under this Section 9. 9.2. Maintenance by Owner. Except for the maintenance required to be provided by the Homeowner Association under Section 9.1, all maintenance of the Living Units and the real property subject to the Condominium Association shall be the sole responsibility and expense of the Owners thereof. However, the Owners and Occupants shall have a duty to notify the Homeowner Association promptly of defects in or damage to those parts of the Property which the Homeowner Association is obligated to maintain. The Homeowner Association may require that any exterior maintenance to be performed by the Owner be accomplished pursuant to specific uniform criteria established by the Homeowner Association. The Homeowner Association may also undertake any exterior maintenance which the responsible Owner fails to 16 T T 1 48 perform or improperly performs on a Living Unit and assess the Living Unit and the Owner for the cost thereof. 9.3. Damage Caused by Owner. Notwithstanding any provision to the contrary in this Section, if, in the judgment of the Homeowner Association, the need for maintenance of any part of the Property is caused by the willful or negligent act or omission of an Owner or Occupant, or their guests, or by a condition in a Unit which the Owner or Occupant has willfully or negligently allowed to exist, the Homeowner Association may cause such damage or condition to be repaired or corrected (and enter upon any Unit to do so), and the cost thereof may be assessed against the Unit of the Owner responsible for the damage, provided, however, if the party responsible is an Owner of a Condominium Unit, then such cost may be assessed against the Condominium Association. 9.4. Traffic Islands and Medians. In addition to the maintenance obligations of the Homeowner Association as described in Section 9.1, the Homeowner Association shall be responsible for the maintenance, repair, and replacement of all landscaping located on traffic islands and medians within the portions of the public streets lying bisecting the Property and all costs associated therewith. In the event the City of Shakopee determines to remove any such landscaped island or median, the Homeowner Association shall be responsible for such removal and shall bear all construction, demolition and engineering costs directly related to such removal. The covenants of the Homeowner Association contained within this Section 9.4 are intended solely for the benefit of the City of Shakopee which shall have the sole right to enforce same. 9.5. Noise Mitigation. The Homeowner Association shall be responsible for implementing, at its cost, all efforts within the Open Areas to mitigate noise emanating from State Trunk Highway No. 169 in accordance with requirements imposed by the Minnesota Pollution Control Agency or in furtherance of Minnesota Statutes Section 161.125. The covenants contained in this Section 9.5 are intended solely for the benefit of the City of Shakopee which shall have the sole right to enforce the same. SECTION 10. INSURANCE 10.1. Required Coverage. The Homeowner Association shall obtain and maintain, at a minimum, a master policy or policies of insurance in accordance with the insurance requirements set forth herein, issued by a reputable insurance company or companies authorized to do business in the State of Minnesota, as follows: a. Comprehensive public liability insurance covering the use, operation and maintenance of the Property, with minimum limits of $1,000,000 per occurrence, against claims for death, bodily injury and property damage, and such other risks as are customarily covered by such policies for projects similar in construction, location and use to the Property. The policy shall preclude the insurer from 17 TT T I 49 denying the claim of an Owner or Occupant because of negligent acts of the Homeowner Association or other Owners or Occupants. b. Employee dishonesty insurance against dishonest acts on the part of the Board officers, managers, employees or persons responsible for handling funds collected and held by the Homeowner Association for the benefit of the Owners. Such insurance shall name the Homeowner Association as the named insured and shall be written in an amount sufficient to provide protection which is in no event less than one and one-half (1.5) times the Homeowner Association's estimated annual operating expenses and reserves. An appropriate endorsement to the policy to cover any persons who serve without compensation shall be added if said policy would not otherwise cover volunteers. c. Directors and officers liability insurance to cover actions of the Board and officers, with such reasonable limits and coverages as the Board shall determine from time to time. d. In the event that the Homeowner Association or the Declarant constructs a pool or other recreation facilities on the Common Elements, the Homeowner Association shall obtain property insurance in broad form covering all risks of physical loss, in an amount equal to one hundred percent (100%) of the insurable "replacement cost" of said improvements, less deductibles, exclusive of land, footings, excavation and other items normally excluded from coverage (but including all building service equipment and machinery). The policy or policies shall cover personal property owned by the Homeowner Association. The policy or policies shall also contain "Inflation Guard" and "Agreed Amount" endorsements, if reasonably available. Such policy or policies shall include such additional endorsements, coverages and limits with respect to the foregoing and other hazards as may be required from time to time by the regulations of the FHA or Federal National Mortgage Association ("FNMA") as a precondition to insuring, purchasing or financing a mortgage on a Unit. e. Such other insurance as the Board may determine from time to time to be in the best interests of the Homeowner Association and the Owners. 10.2. Premiums: Deductibles. All insurance premiums shall be assessed and paid as a Common Expense. As to any deductibles under any insurance coverages obtained by the Homeowner Association, the Homeowner Association may (i) pay the deductible amount as a Common Expense, (ii) assess the deductible amount against the Owner and the Owner's Living Unit if the loss was caused by the act or omission of the Owners or Occupants or the Owners' agents, employees, invitees, guests, or against the Condominium if the loss was caused by the act or omission of an Owner or Occupant of a Condominium Unit, or the Owner's agents, employees, invitees and guests, or (iii) require the Owners of the Units affected to pay the deductible amount directly. 18 T I 50 10.3. Loss Payee. All insurance coverage maintained by the Homeowner Association shall be written in the name of, and the proceeds thereof shall be payable to, the Homeowner Association (or a qualified insurance trustee selected by it) for the benefit of the Owners and secured parties, including Eligible Mortgagees, which suffer loss. The Homeowner Association, or any insurance trustee selected by it, shall have exclusive authority to negotiate, settle and collect upon any claims or losses under any insurance policy maintained by the Homeowner Association. 10.4. Waivers of Subrogation. All policies of insurance shall contain waivers of subrogation by the insurer against the Homeowner Association, or an Owner, members of the Owner's household, officers or directors, as applicable, and, if available, waivers of any defense based on co-insurance or of invalidity from any acts of the insured. 10.5. Cancellation; Notice of Loss. All policies of comprehensive liability insurance maintained by the Homeowner Association shall provide that the policies shall not be canceled or substantially modified, for any reason, without at least thirty (30) days prior written notice to the Homeowner Association, to FNMA (if applicable), and all Eligible Mortgagees. 10.6. No Contribution. All policies of insurance maintained by the Owner of a Living Unit, or in the case of the Condominium, by the Condominium Association, shall be the primary insurance for property damage, bodily injury or death on a Unit. The policy of insurance maintained by the Homeowner Association shall be primary insurance for property damage, bodily injury or death on the Common Elements. 10.7. Effect of Acts Not Within Homeowner Association's Control. All policies of insurance maintained by the Homeowner Association shall provide that the coverage shall not be avoided by or conditioned upon (i) any act or omission of an Owner or Eligible Mortgagee, unless acting within the scope of authority on behalf of the Homeowner Association, or (ii) any failure of the Homeowner Association to comply with any warranty or condition regarding any portion of the Property over which the Homeowner Association has no control. 10.8. Owner's Personal Insurance. Each Owner shall be responsible for obtaining personal insurance coverage at his, her or its own expense covering personal property or additional personal liability. In addition, each Owner of a Living Unit shall be responsible for obtaining personal insurance coverage at his, her or its own expense covering fire and other casualty to the Living Unit. All insurance policies maintained by Owners shall provide that they are without contribution as against the insurance purchased by the Homeowner Association, except as necessary to cover any deductibles under the Owner's coverage. 19 51 SECTION 11. EASEMENTS 11.1. Access Easements. Each Unit shall be the beneficiary of an appurtenant easement for access to a public street or highway on or across the Common Elements, subject to any restrictions set forth in this Homeowner Declaration. 11.2. Use and Environmental Easements. Each Unit shall be the beneficiary of appurtenant easements for use and enjoyment on, over and across the Common Elements, subject to any restrictions authorized by the Declarant or the Board. 11.3. Easement for Maintenance and Repair. The Open Area shall be subject to the rights of the Homeowner Association to a non-exclusive, appurtenant easement for the purposes of maintenance, repair and replacement within the Open Area, to the extent necessary to fulfill the Homeowner Association's obligations under the Homeowner Governing Documents. 11.4. Utility Easements. The Common Elements shall be subject to non-exclusive, appurtenant easements for all utilities, water and sewer, and similar services, which exist from time to time, as constructed or referred to in the Plat, or as otherwise described in this Homeowner Declaration or any other duly recorded instrument. The Units shall be subject to non-exclusive, appurtenant easements for water irrigation lines servicing the Property in the location the same shall have initially been constructed or installed incident to the initial construction of the Dwelling on the Unit or such other location as may be approved by the Board. 11.5. Recorded Easements. Each Unit and the Common Elements shall be subject to such other easements as may be recorded against it or otherwise shown on the Plat, including without limitation and for so long as it is in effect, the Declaration of Easements. 11.6. Sign Easements. As long as Declarant owns a Unit, it shall have a temporary easement over the Common Elements to erect and maintain signs and other sales displays offering its Unit or Units for sale or lease. 11.7. Easements are Appurtenant. All easements and similar rights burdening or benefiting a Unit or any other part of the Property shall be appurtenant thereto, and shall be permanent, subject only to termination in accordance with the terms of the easement. Any recorded easement benefiting or burdening the Property shall be construed in a manner consistent with, and not in conflict with, the easements created by this Homeowner Declaration. 11.8. Impairment Prohibited. No Person shall materially restrict or impair any easement benefiting or burdening any Unit; subject to the Homeowner Declaration, the Condominium Declaration, and the right of the Homeowner Association and Condominium Association to impose reasonable Rules and Regulations governing the use of the Property. 11.9. Continuation and Scope of Easements. Notwithstanding anything in this Homeowner Declaration to the contrary, in no event shall an Owner or Occupant be denied reasonable access 20 TI 52 to his or her Unit. The easements set forth in this Section shall supplement and not limit any easements described elsewhere in this Homeowner Declaration, the Condominium Declaration, or filed of record, and shall include reasonable access to the easement areas through the Units and the Common Elements for purposes of maintenance and repair. SECTION 12. TRASH REMOVAL AND RECYCLING 12.1. Master Contract. The Homeowner Association shall contract with a single provider for the removal and disposal of garbage, trash and other solid waste, and for removal of recycling materials from all Units in accordance with this Homeowner Declaration. 12.2. Charges. Any charges imposed by the provider designated by the Homeowner Association shall be paid by the Homeowner Association and shall be included in the assessments levied pursuant to Section 6. In the event that any Owner requests any services not included within the basic/general charges of the provider, the Homeowner Association may assess the costs thereof against the Owner and the Owner's Unit in accordance with Section 6. SECTION 13. COMPLIANCE AND REMEDIES Each Owner and Occupant, and any other Person owning or acquiring any interest in the Property, shall be governed by and comply with the provisions of the Homeowner Governing Documents, the Rules and Regulations, the decisions of the Homeowner Association, and such amendments thereto as may be made from time to time, A failure to comply shall entitle the Homeowner Association to the relief set forth in this Section, in addition to the rights and remedies authorized elsewhere by the Homeowner Governing Documents. 13.1. Entitlement to Relief. The Homeowner Association may commence legal action to recover sums due for damages, for injunctive relief or to foreclose a lien owned by it, or any combination thereof, or an action for any other relief authorized by the Homeowner Governing Documents or available at law or in equity. Legal relief may be sought (i) by the Homeowner Association against any Owner, or the Condominium Association, or (ii) by an Owner or the Condominium Association against the Homeowner Association or another Owner, to enforce compliance with the Homeowner Governing Documents, the Rules and Regulations, or the decisions of the Homeowner Association. However, no Owner nor the Condominium Association may withhold any assessments payable to the Homeowner Association, or take (or omit to take) other action in violation of the Homeowner Governing Documents or the Rules and Regulations, as a measure to enforce such Owner's position, or for any other reason. 13.2. Sanctions and Remedies. In addition to any other remedies or sanctions, expressed or implied, administrative or legal, the Homeowner Association shall have the right, but not the 21 I 11 53 obligation, to implement any one or more of the following actions against Owners and Occupants and/or their guests who violate the provisions of the Governing Document or the Rules and Regulations, or against the Condominium Association: a. Commence legal action for damages or equitable relief in any court of competent jurisdiction. b. Impose reasonable late charges for each late payment of an assessment or installment thereof. c. In the event of default of more than sixty (60) days in the payment of any assessment or installment thereof in full, all remaining installments of assessments assessed against the Unit owned by the defaulting Owner may be accelerated and shall then be payable in full if all delinquent assessments, together with all costs of collection and late charges, are not paid in full prior to the effective date of the acceleration. Reasonable advance written notice of the effective date of the acceleration shall be given to the defaulting Owner. d. Impose reasonable fines, penalties or charges for each violation of the Homeowner Governing Documents or the Rules and Regulations of the Homeowner Association, e. Restore any portions of the Common Elements damaged or altered, or allowed to be damaged or altered, by any Owner or Occupant or their guests in violation of the Homeowner Governing Documents, and to assess the cost of such restoration against the responsible Owners of a Living Unit and their Living Units or against the Condominium Association if due to damage or alteration by an Owner of a Condominium Unit. f. Enter any Open Area in which a violation or breach of the Homeowner Governing Documents exists which materially affects, or is likely to materially affect in the near future, the health or safety of the other Owners or Occupants, or their guests, or the safety or soundness of any other part of the Property, and to summarily abate and remove, at the expense of the offending Owner or Occupant, any structure, thing or condition in the Open Area which is causing the violation. Provided, however, any improvements which are part of a Dwelling may be altered or demolished by the Homeowner Association only pursuant to a court order or with the agreement of the Owner. g. Foreclose any lien arising under the provisions of the Homeowner Governing Documents or under law, in the manner provided for the foreclosure of mortgages by action or under a power of sale in the state of Minnesota. h. Withdraw rights and privileges to use any amenities built for the benefit of the Owners and Occupants of the Property during such period of default and withhold 22 i T1 I 54 services to the Unit owned by the defaulting Owner, provided such withholding does not adversely affect other Units or the Property generally. 13.3. Rights to Hearing. In the case of imposition of any of the remedies authorized by Section 13.2.d or e, the Board shall, upon written request of the offender, grant to the offender a fair and equitable hearing. The offender shall be given notice of the nature of the violation and the right to a hearing, and at least ten (10) days within which to request a hearing. The hearing shall be scheduled by the Board and held within thirty (30) days of receipt of the hearing request by the Board, and with at least ten (10) days prior written notice to the offender. If the offending Owner fails to appear at the hearing then the right to a hearing shall be waived and the Board may take such action as it deems appropriate. The decision of the Board and the rules for the conduct of hearings established by the Board shall be final and binding on all parties. The Board's decision shall be delivered in writing to the offender within ten (10) days following the hearing, if not delivered to the offender at the hearing. 13.4. Lien for Charges, Penalties, Etc. Any assessments, charges, fines, penalties or interest imposed under this Section against the Owner or Occupant of a Living Unit shall be a lien against the Living Unit of the Owner or Occupant against whom the same are imposed and the personal obligation of such Owner in the same manner and with the same priority and effect as assessments under Section 6. The lien shall attach as of the date of imposition of the remedy, but shall not be final as to violations for which a hearing is held until the Board gives written notice following the hearing. All remedies shall be cumulative, and the exercise of, or failure to exercise, any remedy shall not be deemed a waiver of the right to pursue any others. 13.5. Costs of Proceeding and Attorneys' Fees. With respect to any collection measures, or any measures or action, legal, administrative, or otherwise, which the Homeowner Association takes to enforce the provisions of the Homeowner Governing Documents or Rules and Regulations, whether or not finally determined by a court arbitrator, the Homeowner Association may assess the violator and his or her Unit, or the Condominium Association, with any expenses incurred in connection with such enforcement, including without limitation, fines or charges previously imposed by the Homeowner Association, reasonable attorneys' fees, and interest (at the highest rate allowed by law) on the delinquent amounts owed to the Homeowner Association. 13.6. Liability for Acts of Owners' Occupants. An Owner of a Living Unit shall be liable for the expense of any maintenance, repair or replacement of the Property rendered necessary by such Owner's acts or omissions, or by that of Occupants or guests of the Owner, and the Condominium Association shall be liable for the expense of any maintenance, repair or replacement of the Property rendered necessary by a Condominium Owner's acts or omissions, or by that of Occupants or guests of the Condominium Owner, to the extent that such expense is not covered by the proceeds of insurance carried by the Homeowner Association or such Owner or Occupant. However, any insurance deductible amount and/or increase in insurance rates, resulting from the Owner's acts or omissions may be assessed against the Owner responsible for the condition and against his or her Living Unit or against the Condominium Association if the Owner responsible was the Owner of a Condominium Unit. 23 55 13.7. Enforcement by Owners. The provisions of this Section shall not limit or impair the independent rights of other Owners to enforce the provisions of the Homeowner Governing Documents and the Rules and Regulations, as provided therein. SECTION 14. AMENDMENTS Declarant may amend this Homeowner Declaration for any reason without the approval of the Members or the Eligible Mortgagees for a period of two (2) years from the date of the recording of this Homeowner Declaration. Except as provided in Section 17, any amendment initiated by any party other than Declarant, or initiated after expiration of said two (2) year period shall require the consent of (i) Owners of Units to which are allocated at least sixty-seven percent (67%) of the votes in the Homeowner Association, (ii) the percentage of Eligible Mortgagees (based upon one vote per first mortgage owned) required by Section 15 as to matters prescribed by said Section and (iii) as long as Declarant owns any unsold Unit, the Declarant (as to any amendment to the Homeowner Governing Documents or Rules and Regulations which directly or indirectly affects or may affect Declarant's rights under the Homeowner Governing Documents). Consent of the Owners may be obtained in writing or at a meeting of the Homeowner Association duly held in accordance with the Homeowner Bylaws. Consents of Eligible Mortgagees and the Declarant shall be in writing. The Amendment shall be effective when recorded. An affidavit by the Secretary of the Homeowner Association as to the outcome of the vote, or the execution of the foregoing agreements or consents, shall be adequate evidence thereof for all purposes, including without limitation, the recording of the amendment. SECTION 15. RIGHTS OF ELIGIBLE MORTGAGEES Notwithstanding anything to the contrary in the Homeowner Governing Documents, Eligible Mortgagees shall have the following rights and protections: 15.1. Consent to Certain Amendments. Except for amendments to this Homeowner Declaration by the Declarant during the two (2) years following recordation of this Homeowner Declaration, and amendments to this Homeowner Declaration contemplated by Section 17, the written consent of Eligible Mortgagees representing at least fifty-one percent (51%) of the Units that are subject to first mortgages held by Eligible Mortgagees (based upon one vote per first mortgage owned) shall be required for any amendment to the Homeowner Governing Documents which causes any change in the following: (i) voting rights; (ii) assessments, assessments liens, or priority of assessment liens; (iii) reserves for maintenance and repair of the Open Areas; (iv) responsibility for maintenance and repairs; (v) reallocation of interests in the Common Elements, or rights to their use; (vi) redefinition of any Unit boundaries; (vii) convertibility of Units into Common Elements or vice versa; (viii) expansion or contraction of the Property or the addition, annexation or withdrawal of property to or from the Property; (ix) insurance or fidelity bonds; (x) 24 T 1 56 imposition of any restrictions on an Owner's right to sell or transfer his or her Unit; (xi) a decision by the Homeowner Association to establish self management when professional management is in effect as required previously by the Homeowner Governing Documents or an Eligible Mortgagee; or (xii) any provisions that expressly benefit Eligible Mortgagees, or insurers or guarantors of mortgages. 15.2. Consent to Certain Actions. The written consent of Eligible Mortgagees representing at least sixty-seven percent (67%) of the Units that are subject to first mortgages held by Eligible Mortgagees (based upon one vote per first mortgage owned) shall be required to (i) change the allocations of voting rights or Common Expense obligations; (ii) partition or subdivide a Unit, except as permitted by statute; (iii) abandon, partition, subdivide, encumber or sell the Common Elements; or (iv) terminate the Homeowner Association. 15.3. Priority of Taxes and Other Charges. All taxes, assessments and charges which may become liens prior to the first mortgage under Minnesota law shall relate only to the individual Units and not to the Property as a whole. 15.4. Priority for Condemnation Awards. No provision of the Homeowner Governing Documents shall give an Owner, or any other party, priority over any rights of the Eligible Mortgagee of the Unit pursuant to its mortgage in the case of a distribution to such Owner of condemnation awards for a taking of all or any portion of the Unit and/or the Common Elements. The Homeowner Association shall give written notice to all Eligible Mortgagees of any condemnation or eminent domain proceeding affecting the Property promptly upon receipt of notice from the condemning authority. 15.5. Priority for Insurance Proceeds. No provision of the Homeowner Governing Documents shall give an Owner, or any other party, priority over any rights of the Eligible Mortgagee of the Unit pursuant to its mortgage in the case of a distribution to such Owner of insurance for losses to the Unit. 15.6. Requirements Management and Service Agreements. Any agreement for professional management of or provision of services to the Property or the Homeowner Association must, at a minimum, provide for termination by the Homeowner Association, for good cause upon sixty (60) days prior written notice. 15.7. Access to Books and Records/Audit. Eligible Mortgagees shall have the right to examine the books and records of the Homeowner Association upon reasonable notice during normal business hours, and to receive free of charge, upon written request, copies of the Homeowner Association's annual reports and other financial statements. Financial statements, including those which are audited, shall be available within one hundred twenty (120) days of the end of the Homeowner Association's fiscal year. If a request is made by FNMA or any institutional guarantor or insurer of a mortgage loan against a Unit, for an audit of the Homeowner Association's financial statements for the preceding year, the Homeowner Association shall cause an audit to be made and deliver a copy to the requesting party. 25 T1 57 15.8. Notice Requirements. Upon written request to the Homeowner Association, identifying the name and address of the holder, insurer or guarantor of a mortgage on a Unit, and the Unit number or address, the holder, insurer or guarantor shall be entitled to timely written notice of: a. a condemnation loss which affects a material portion of the Property securing the mortgage; b. a lapse, cancellation or material modification of any insurance policy maintained by the Homeowner Association; and c. a proposed action which requires the consent of a specified percentage of Eligible Mortgagees. SECTION 16. SPECIAL DECLARANT RIGHTS Declarant hereby reserves exclusive and unconditional authority to exercise the following special declarant rights for as long as it owns a Unit, or for such shorter period as may be specifically indicated: 16.1. Complete Improvements. To complete all improvements indicated on the Plat, or otherwise included in Declarant's development plans or allowed by the Declaration; 16.2. Add Additional Real Estate. To add Additional Real Estate to the Property as described in Section 17. 16.3. Sales Facilities. To construct, operate and maintain a sales office, management office, model Units and other development, sales and rental facilities within the Common Elements and any Units owned by Declarant from time to time, located anywhere on the Property. 16.4. Easements. To have and use easements, for itself, its employees, contractors, representatives, agents and prospective purchasers through and over the Property for the purpose of exercising its special declarant rights. 16.5. Control of Association. To control the operation and administration of the Association, including without limitation, the power to appoint and remove the members of the Board until the earliest of: (i) voluntary surrender of control by Declarant, (ii) an Association meeting to elect new directors which shall be held with in sixty (60) days after conveyance to Owners other than a Declarant of seventy-five percent (75%) of the total number of Units authorized to be included in the Property, or (iii) the date five (5) years following the date of the first conveyance of Unit to an Owner other than a Declarant. Notwithstanding the foregoing, the Owners other than a Declarant shall have the right to nominate and elect not less than thirty-three and one-third percent (33-1/3%) of the directors at a meeting of the Owners which shall be held within sixty 26 I I. 58 (60) days following the conveyance by Declarant of fifty percent (50%) of the total number of Units authorized to be included in the Property. 16.6. Consent to Certain Amendments. As long as Declarant owns any unsold Unit, Declarant's written consent shall be required for any amendment to the Homeowner Governing Documents or Rule and Regulations which directly or indirectly affect or may affect Declarant's rights under the Homeowner Governing Documents. 16.7. Assignment. If Declarant fails to acquire the Additional Real Estate, Declarant shall assign its special declarant rights hereunder, in whole or in part, to any developer of the Additional Real Estate, as necessary to enable such developer to construct and sell dwelling units within the Additional Real Estate and to subject such dwelling units to this Declaration; provided, however, that (i) Declarant shall not be obligated to said developer to assign its right to control of the Association until at least seventy-five percent (75%) of the Units owned by Declarant have been sold, and (ii) said developer agrees to assume commensurate obligations of the Declarant hereunder with respect to that portion of the Additional Real Estate acquired by such developer. SECTION 17. RIGHTS TO ADD ADDITIONAL REAL ESTATE Declarant hereby expressly reserves the right to add Additional Real Estate to the Property, by unilateral action, subject to Section 2.2 of the Master Declaration, and to the following conditions: 17.1. Duration of Right. The right of Declarant to add the Additional Real Estate to the Property shall terminate ten (10) years after the date of recording of this Homeowner Declaration or upon earlier express written withdrawal of such right by Declarant or a successor Declarant, unless extended by a vote of the Owners. There are no other limitations of Declarant's rights hereunder, except as may be imposed by law. 17.2. Addition of Parcels. The Declarant may add the Additional Real Estate to the Property in parcels consisting of one or more platted lots, by recording an amendment to this Homeowner Declaration, and in the case of the Condominium, recording an amendment to the Condominium Declaration in accordance with the terms thereof and the Act, identifying the Units to be added to the Property. 17.3. No Assurances. There are no assurances as to the times at which all or any part of the Additional Real Estate will be added to the Property, the order in which it will be added, the number of units per phase nor the size of the parcels. Declarant is under no obligation to add the Additional Real Estate to the Property, and the Additional Real Estate may be developed by Declarant or its successors in interest for other purposes, subject only to approval by the appropriate governmental authorities. 27 T I 1 I 59 17.4. Extension of Covenants and Restrictions. All covenants and restrictions contained in this Homeowner Declaration affecting the use, occupancy and alienation of Units shall apply to all Units created on the Additional Real Estate. 17.5. Application. The statements made in the preceding Sections 17.1 through 17.4 above shall not apply to any Additional Real Estate which is not added to the Property. SECTION 18 MASTER ASSOCIATION 18.1. Membership in Master Association. The Property is part of a larger development. The Homeowner Association is a member of the Master Association. 18.2. Delegation. The Master Association is hereby delegated the powers and duties to: a. Monitor certain wetland areas adjacent to the Property; b. Maintain the median areas and boundary landscaping along Southbridge Parkway; c. Maintain the signs and monuments identifying Southbridge; d. Administer and enforce the covenants, conditions and restrictions and other obligations set forth in the Master Governing Documents and the Master Rules; e. Cooperate in the preservation and enhancement of the architectural and environmental character and value of the Property; and f. Exercise such additional powers which may be necessary or incidental to the exercise of any delegated powers. 18.3. Additional Delegation. In addition to the powers and duties delegated to the Master Association in this Section 18, the Board of the Homeowner Association may delegate additional powers to the Master Association not inconsistent with this Declaration, the Articles of Incorporation and Bylaws of this Homeowner Association, the Master Governing Documents, or the Act. a. The powers delegated to the Master Association shall be exercised by the Master Association in a manner which is uniform and consistent with the exercise of all similar powers delegated to the Master Association. b. Upon the expiration of a control period as defined in Minn. Stat. § 515B.2 -212(g), the board of directors of the Master Association shall be elected by the members of the Master Association. 28 T 11 60 SECTION 19. MISCELLANEOUS 19.1. Severability. If any term, covenant, or provision of this instrument or any exhibit attached hereto is held to be invalid or unenforceable for any reason whatsoever, such determination shall not be deemed to alter, affect or impair in any manner whatsoever any other portion of this instrument or exhibits. 19.2. Construction. Where applicable the masculine gender of any word used herein shall mean the feminine or neutral gender, or vice versa, and the singular of any word used herein shall mean the plural, or vice versa. 19.3. Notices. Unless specifically provided otherwise in the Homeowner Governing Documents, all notices required to be given by or to the Homeowner Association, the Board, the Homeowner Association officers or the Owners or Occupants shall be in writing and shall be effective upon hand delivery, or mailing if properly addressed with postage prepaid and deposited in the United States mail; except that registrations pursuant to Section 2.2 of the Homeowner Bylaws shall be effective upon receipt by the Homeowner Association. 19.4. Conflicts Among Documents. In the event of any conflict among the provisions of the Homeowner Declaration, the Homeowner Bylaws or any Rules or Regulations approved by the Homeowner Association, the documents shall control in the following order of priority: (i) the Homeowner Declaration, (ii) the Homeowner Bylaws and (iii) the Rules and Regulations. In the event of a conflict between the provisions of the Homeowner Declaration and the Condominium Declaration, other in the rules and regulations contained therein, the provisions of the Homeowner Declaration shall govern the Condominium Units and the Owners and Occupants thereof. In the event of a conflict between the Rules and Regulations adopted by the Homeowners Association or contained in the Homeowner Declaration, and the rules and regulations adopted by the Condominium Association, the more restrictive shall apply to the Condominium Units, their Owners and Occupants. 19.5. Resale of Units. Upon resale of a Unit by an Owner, the Owner shall provide the prospective purchaser prior to execution of the purchase agreement or otherwise prior to the conveyance, a resale disclosure certificate from the Homeowner Association, together with a copy of the Homeowner Governing Documents, any Rules and Regulations, and any amendments to the foregoing. The disclosure certificate shall be dated not more than ninety (90) days prior to the date of the purchase agreement or the date of conveyance, whichever is earlier, and shall contain the following information: (i) a statement disclosing any right of first refusal or other restraint on the free alienability of the Unit subject to the Homeowner Governing Documents, or the Rules and Regulations, or any amendment thereof; (ii) a statement setting forth the amount of the monthly installments of Common Expense assessments, including special assessments, if any, and the amount of any due and unpaid regular or special assessments, fines or other charges payable with respect to the Unit; (iii) a statement of any fees or charges other than assessments payable by Unit Owners; (iv) a statement of any capital expenditures approved 29 I 1 1 61 by the Homeowner Association for the current and two (2) succeeding fiscal years; (v) a statement of the amount of any reserves for maintenance, repair or replacement and of any portions of those reserves designated by the Homeowner Association for any specified projects or uses; (vi) the most recent regularly prepared balance sheet and income and expense statement of the Homeowner Association; (vii) the current budget of the Homeowner Association; (viii) a statement of any unsatisfied judgments against the Homeowner Association and the status of any pending suits to which the Homeowner Association is party; (ix) a detailed description of the insurance coverage provided for the benefit of Unit Owners; (x) a statement as to whether the Homeowner Association knows of any violation by the Unit of any provision of the Homeowner Declaration or any governmental statute, ordinance, code or regulation; and (xi) a statement of any outstanding rights of the Homeowner Declaration to add additional real estate to the Property. The Homeowner Association, within ten (10) days after a request by a Unit Owner or his or her authorized representative, shall furnish the certificate required in this Section. The Homeowner Association or its agent may charge a reasonable fee for furnishing the certificate and any Homeowner Association documents related thereto. A Unit Owner providing a certificate pursuant to this Section is not liable to the purchaser for any erroneous information provided by the Homeowner Association and included in the certificate. 19.6. Duration. The covenants and restrictions of this Homeowner Declaration shall run with and bind the land and be a burden and benefit to all Owners and Occupants and to any other Person acquiring or owning an interest in the Property, their heirs, personal representatives, successors and assigns, and shall be perpetual. (The remainder of this page was intentionally left blank) 30 62 IN WITNESS WHEREOF, the undersigned has executed this instrument as of the day and year first set forth above. STATE OF MINNESOTA ) ) ss COUNTY OF tn.rit (1 ) The foregoing instrument was ackn led before me this day of n pry I , 1999, ,kb J. S[}IDIicu , the `('fl (side,' of THE RYLAND GROUP, INC., a Marland corporation, for and on behalf of said corporation. TRACEY M. ALTO NOTARY PUBLIC - MYNNESCIA CHISAGO COUNTY My Commissmn Expires Jan. 31, 2000 fir,^ �,(jth' Notary Pu is THIS INSTRUMENT WAS DRAFTED BY: WINTHROP & WEINSTINE, P.A. 3000 Dain Rauscher Plaza 60 South Sixth Street Minneapolis, Minnesota 55402 MP LI : 276758-5/7837.13 31 T it 11 63 VILLAGES OF SOUTHBRIDGE EXHIBIT A TO DECLARATION LEGAL DESCRIPTION OF PROPERTY Lots 1-4, inclusive, Block 1; Lots 1-8, inclusive, Block 2; Lots 1-6, inclusive, Block 29; Lots 1-10, inclusive, Block 33; Lots 1-9, inclusive, Block 36; Lot 1, inclusive, Block 39; Lot 1, inclusive, Block 40; Southbridge 3'd Addition, according to the recorded plat thereof, on file and of record in the office of the County Recorder in and for Scott County, Minnesota; 32 lr 1 �f 64 VILLAGES OF SOUTHBRIDGE EXHIBIT B TO DECLARATION LEGAL DESCRIPTION OF ADDITIONAL REAL ESTATE Lots 1-8, inclusive, Block 3, Lots 1-3, inclusive, Block 4; Lots 1-6, inclusive, Block 5; Lots 1-6, inclusive, Block 6; Lots 1-6, inclusive, Block 7; Lots 1-6, inclusive, Block 8; Lots 1-6, inclusive, Block 9; Lots 1-6, inclusive, Block 10; Lots 1-6, inclusive, Block 11; Lots 1-6, inclusive, Block 12; Lots 1-6, inclusive, Block 13; Lots 1-6, inclusive, Block 14; Lots 1-6, inclusive, Block 15; Lots 1-6, inclusive, Block 16; Lots 1-6, inclusive, Block 17; Lots 1-6, inclusive, Block 18; Lots 1-6, inclusive, Block 19; Lots 1-6, inclusive, Block 20; Lots 1-6, inclusive, Block 21; Lots 1-6, inclusive, Block 22; Lots 1- 6, inclusive, Block 23; Lots 1-6, inclusive, Block 24; Lots 1-6, inclusive, Block 25; Lots 1-6, inclusive, Block 26; Lots 1-6, inclusive, Block 27; Lots 1-6, inclusive, Block 28; Lots 1-6, inclusive, Block 30; Lots 1-10, inclusive, Block 31; Lots 1-10, inclusive, Block 32; Lots 1-10, inclusive, Block 34; Lots 1-10, inclusive, Block 35; Lots 1-5, inclusive, Block 37; and Lots 1-5, inclusive, Block 38; Southbridge 3rd Addition, according to the recorded plat thereof, on file and of record in the office of the County Recorder in and for Scott County, Minnesota. 33 65 VILLAGES OF SOUTHBRIDGE EXHIBIT C TO DECLARATION LEGAL DESCRIPTION OF COMMON ELEMENTS Lot 1, Block 39 and Lot 1, Block 40, Villages of Southbridge 3rd Addition, according to the recorded plat thereof, on file and of record in the office of the County Recorder in and for Scott County, Minnesota. 34 11 IF L I 66 EXHIBIT D TO DECLARATION BYLAWS OF VILLAGES OF SOUTHBRIDGE HOMEOWNERS HOMEOWNER ASSOCIATION 35 67 CITY OF SHAKOPEE MEMORANDUM To: Steve Soltau, Shakopee Crossings From: Mark McQuillan, Natural Resource Director Subject: Memorandum of Understanding for Southbridge Parks & Open Spaces in the 1� 2na & 4th Additions Date: April 18, 2001 Steve, Based on our discussions on April 18th at City Hall, we tentatively agreed to consider the following conditions for the maintaining the parks and open space areas in Southbridge1', ', 2"a & 4th Additions: Park #11 — (Cambridge & Windsor Dr.) The City will develop and maintain the park. This includes soil corrections, installation of totlot equipment, benches, walkway and more trees. Park #10 — Cambridge Rd & Sussex Ln.) The City will clean up the site, make soil corrections, plant trees and add other landscaping. The City will install a trail later. Park # 9 — (Whitehall Rd. & Whitehall Cir.) The Southbridge Association will landscape and maintain the node. Node - (Sussex Rd. & Sussex Pl.) The Southbridge Association will landscape and maintain the node. Park #8 - (Hartley Blvd. & Windsor) The Southbridge Association has landscaped and maintained the boulevard and corners. Open Space — (Wetland along Cambridge & near Coventry) The City will make initial improvements by cleaning up debris, cutting back some of the vegetation and make soil corrections along the sidewalk. The City will plow the sidewalk in the winter and the Southbridge Assn. will maintain it in the summer. Entrances — (Windsor Dr. — Hartley Boulevard) The Southbridge Association will maintain the boulevards up to the natural areas during the summer months and the City shall plow the sidewalks during the winter months. The sidewalk areas: Along Windsor Dr. from Southbridge Parkway to Cambridge Rd. Along Hartley Blvd. from Southbridge Parkway to Windsor Ln. Mark J. McQuillan Natural Resource Director MAP ENCLOSED 68 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.g September 16, 2025 Approve Parking Restrictions on Zumbro Avenue south of County Road 78. Micah Heckman, Assistant City Engineer Alex Jordan, City Engineer Action to be considered: Approve a no parking zone and installation of "No Parking" signs on Zumbro Avenue from County Road 78 to the Shakopee municipal boundary. Motion Type: Approve Background: Reconstruction of segments of Zumbro Avenue south of County Road 78 are nearing completion, including pavement markings and striping. Once pavement striping is installed, a no parking zone should be established along the roadway. Zumbro Avenue is a two-lane divided roadway with a raised median separating the two directions of travel. The pavement is 20 feet wide from face of curb to face of curb. Similar to Southbridge Parkway, the roadway was not planned for on -street parking and once striping is in place, the shoulder will not be wide enough to support on -street parking. Therefore, a no parking zone should be established along Zumbro Avenue from County Road 78 to the City of Shakopee municipal boundary. As land is annexed into the City of Shakopee and the reconstruction of Zumbro Avenue continues to the south, the no parking zone will be extended to those portions of the roadway. See attached for a proposed layout of the parking restrictions. Recommendation: Approve the parking zone restriction. Budget Impact: No parking signs are manufactured and installed by the Public Works Department at a cost of $283 per sign. 19 signs will be installed, and will be funded through the Public Works Street Division operating budget. Future development will be required to install the signs as the roadway is constructed. 70 Attachments: No Parking Zone - Zumbro Avenue 71 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.h September 16, 2025 Resolution Supporting Minnesota Suburban Transit Providers Kyle Sobota, Senior Planner Michael Kerski, Director of Planning and Development Action to be considered: Adopt Resolution R2025-103, a resolution supporting Minnesota Suburban Transit Providers Motion Type: Simple Majority Background: The City of Shakopee has been a member of Minnesota Valley Transit Authority (MVTA) since 2014. The attached draft resolution highlights the importance of maintaining a strong and resilient transit system —one that supports economic vitality, environmental sustainability, and the overall quality of life for our south metro communities and the metropolitan region as a whole. It also reaffirms the critical role of Suburban Transit Providers, including MVTA, and the governance model that ensures local communities have a direct voice in shaping solutions that reflect evolving demographics and local priorities. With conversations at the Legislature continuing regarding the future of regional transit, this resolution is intended to help ensure that Shakopee has the strongest voice possible in future decisions that affect public transit. Recommendation: Adopt the resolution, as presented. Budget Impact: N/A Attachments: ResolutionR2025_103_SupportingTransit.docx 73 RESOLUTION R2025-103 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA SUPPORTING MINNESOTA SUBURBAN TRANSIT PROVIDERS WHEREAS, a robust regional transit system is essential to the economic vitality, environmental sustainability, and quality of life for communities throughout the Twin Cities Metropolitan Area; and WHEREAS, in 1984, the Minnesota Legislature passed legislation allowing suburban communities to opt -out of Metropolitan Transit Commission service area (Minn. Stat. § 473.388) enabling eligible cities to assume control of local transit services if they could demonstrate the ability to provide equal or better service; and WHEREAS, this provision was a response to growing concern that suburban communities were underrepresented in regional decision making and underserved by the centralized system, despite paying into regional transit funding through the Motor Vehicle Sales Tax, property taxes, and other sources; and WHEREAS, Minnesota Valley Transit Authority (MVTA) was formally established in 1990 as one of the original suburban transit providers including the cities of Apple Valley, Burnsville, Eagan, Rosemount, and Savage operating service in 1991, with Prior Lake and Shakopee joining in 2014; and WHEREAS, MVTA is governed by a Joint Powers Agreement among its member cities enabling locally driven transit development and investment; and WHEREAS, suburban providers have successfully delivered efficient and responsive transit services that reflect the unique needs of their respective communities, including express bus routes, local service, on -demand microtransit service, and special event services; and WHEREAS, the system, while locally governed, remains integrated into the broader regional transit planning framework, with Metropolitan Council coordination to facilitate cohesive mobility options for all metropolitan residents; and WHEREAS, the continued ability of cities to support and manage their own transit systems under the statute is vital to ensuring that transit solutions evolve to meet changing demographics, land use patterns, and local priorities in suburban areas; and WHEREAS, recent policy discussions regarding funding allocation, legislative reforms, and centralized governance structures have raised concerns about the potential weakening of suburban transit authority and flexibility; 74 NOW, THEREFORE, BE IT RESOLVED, that the City of Shakopee 1. Reaffirms its support for the continuation and strengthening of the suburban transit framework as a critical tool for ensuring service responsiveness in public transportation; 2. Urges the Minnesota Legislature and the Metropolitan Council to uphold the principles of local control embedded in Minn. Stat. § 473.388 and to ensure that MVTA retains sufficient funding streams, statutory authority, and operational independence; 3. Encourages ongoing collaboration between suburban transit providers and the Metropolitan Council, recognizing that effective regional transit outcomes depend on a balanced approach to governance, resource allocation, and service planning; 4. Commits to a continued active partnership with MVTA to support future service expansion, rider experience improvements, and transportation planning aligned with local priorities. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held the 16th day of September 2025. Matt Lehman, Mayor Attest: Richard Parsons, City Clerk 75 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.i September 16, 2025 Declare amounts, order the preparation of proposed assessments, set a public hearing date for delinquent refuse bills. Kim Weckman, Accounting Clerk Action to be considered: Approve Motion Type: Simple Majority Background: Dick's Sanitation (DSI) prepares and distributes collection letters to property owners with overdue payments and manages collections until the City is required to submit the final assessment list to the County. If any delinquencies remain unpaid as of the public hearing date, October 21, 2025, DSI will issue a second notice. This notice will inform property owners that a $25.00 administrative fee will be applied, and that any outstanding balance will be levied to their 2026 property tax bill if not paid by November 21, 2025. An example of the letter being mailed to property owners is attached for reference. Recommendation: Staff recommends that City Council 1. Assess all delinquent 2025 refuse customers 2. Set the public hearing date of October 21, 2025 3. Beginning November 21, 2025, a city administrative charge of $25.00 will be added to unpaid balances Budget Impact: The $25.00 delinquent charge would be revenue to cover the administrative costs; therefore, there is no impact on the budget. 76 Attachments: R2025-104 Set Public Hearing.pdf Cncl List.pdf DSI Sample Letter.pdf 77 RESOLUTION NO. R2025-104 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNNESOTA DECLARING THE AMOUNT TO BE ASSESSED, ORDERING THE PREPARATION OF PROPOSED ASSESSMENTS, AND SETTING THE PUBLIC HEARING DATE FOR DELINQUENT GARBAGE/REFUSE BILLS WHEREAS, the City of Shakopee contracted with Dick's Sanitation Services to provide garbage and recycling services to the residents of the City of Shakopee; and WHEREAS, Dick's Sanitation Services billed their customers for this service; and WHEREAS, some customers are delinquent in paying the amount owed for the service provided by Dick's Sanitation Services; and WHEREAS, a $25 administrative fee be added to each delinquent assessment for city costs if not paid in full by November 21, 2025 and WHEREAS, the contract with City of Shakopee has Dick's Sanitation Services does not allow Dick's Sanitation Services to halt services due to non-payment; and WHEREAS, Minnesota Statute Section 443.015 and Section 51.07 of the City Code authorizes the City to collect payment from delinquent refuse and recycling accounts by way of Special Assessments to the properties that are delinquent. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. The total amount to be certified for all delinquent accounts is $40,352.81 2. City staff shall calculate the proper amount to be certified for each delinquent account within the City of Shakopee, as provided by law, and keep a copy of such proposed assessment in City Hall for public inspection. BE IT FURTHER RESOLVED: 1. That a hearing shall be held on the 21st day of October 2025, in the Council Chambers of City Hall at 7:00 P.M. or thereafter, to pass upon such proposed assessments and at such time and place, all person owning property affected by such delinquent accounts and proposed assessments will be given an opportunity to be heard with reference to such assessment. 78 2. That the City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper of the City of Shakopee at least two weeks prior to the hearing and shall state in the notice the total amount to be certified as delinquent. A mailed notice of assessment roll not less than two weeks prior to the hearing. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota held this 16th day of September 2025. Mayor of the City of Shakopee ATTEST: City Clerk 79 PID ADDRESS BALANCE 270012150 418 2ND AVE E 74.86 270012540 229 3RD AVE W 183.45 270012963 815 4TH AVE W 334.90 270013530 338 LEWIS ST S 169.80 270013710 3214TH AVE E 79.90 270013930 412 4TH AVE E 344.88 270013950 437 SOMMERVILLE STS 79.90 270014130 214 4TH AVE E 89.90 270014200 120 4TH AVE E 306.04 270014460 519 5TH AVE W 57.10 270014750 919 5TH AVE W 73.01 270014860 914 5TH AVE W 74.86 270014910 8216TH AVE W 103.20 270015080 533 PIERCE ST S 46.35 270015180 537 6TH AVE W 79.90 270015310 403 6TH AVE W 79.90 270015420 316 5TH AVE W 79.90 270015480 219 6TH AVE W 311.28 270015910 603 SPENCER ST S 101.60 270015920 635 SOMMERVILLE STS 79.90 270016010 322 6TH AVE E 79.90 270016280 119 7TH AVE W 79.90 270016310 604 HOLMES ST S 286.28 270016360 138 6TH AVE W 79.90 270016740 623 7TH AVE W 159.90 270016890 726 6TH AVE W 79.90 270017040 723 APGAR ST S 101.39 270017190 718 ATWOOD ST S 172.05 270017260 213 8TH AVE W 84.86 270017290 212 7TH AVE W 320.16 270017390 138 7TH AVE W 235.31 270017550 716 SOMMERVILLE STS 79.90 270018110 826 HOLMES ST S 79.90 270018330 506 3RD AVE E 51.47 270018430 502 2ND AVE E 311.28 270020070 940 HOLMES ST S 74.86 270020230 918 LEWIS STS 280.26 270040020 607 1ST AVE E 224.58 270040210 622 2ND AVE E 79.90 270040260 619 4TH AVE E 51.03 270040420 736 3RD AVE E 403.28 270040510 714 1ST AVE E 79.90 270040741 825 4TH AVE E 74.86 270040872 922 3RD AVE E 222.53 270041020 922 1ST AVE E 59.90 270041150 1011 BLUFF AVE E 305.26 270041360 336 NAUMKEAG STS 311.28 80 270041520 1124 2ND AVE E 74.86 270041660 1202 2ND AVE E 74.86 270041680 805 BLUFF AVE E 50.15 270080130 633 MARKET ST S 256.96 270080350 847 MARKET ST S 74.86 270080400 846 DAKOTA ST S 109.90 270080540 820 7TH AVE E 79.90 270080730 857 DAKOTA ST S 73.33 270100100 539 7TH AVE E 311.28 270120180 915 FULLER ST S 74.86 270120190 925 FULLER ST S 74.86 270120710 959 APGAR ST S 516.01 270120950 1006 SCOTT ST S 84.86 270170180 658 JEFFERSON ST S 74.86 270170610 605 MONROE ST S 79.90 270170650 642 MONROE ST S 79.90 270190050 946 SHUMWAY ST S 105.70 270210010 1008 APGAR ST S 79.90 270210130 1007 PIERCE ST S 320.16 270210220 920 CLAY ST S 339.92 270210460 907 PIERCE ST S 74.86 270210550 730 PIERCE STS APT B 84.34 270230080 417 SHAKOPEE AVE E 74.86 270240090 1052 JEFFERSON ST S 79.90 270240150 1079 MADISON ST S 79.90 270240530 1166 MONROE ST S 73.33 270260020 1640 6TH AVE W 311.28 270270130 946 RAMSEY ST S 91.70 270290270 1067 HARRISON ST S 311.28 270290300 1097 HARRISON ST S 331.04 270290390 1016 HARRISON ST S 74.86 270340020 142410TH AVE E 79.90 270340050 1042 SIBLEY ST S 331.04 270370010 1015 TYLER STS 74.86 270390030 1521 SHAKOPEE AVE E 79.90 270410380 1028 NAUMKEAG STS 107.52 270410640 1006 LEGION ST S 101.60 270470120 1401 TYRONE DR 79.90 270520040 1004 MERRIFIELD ST 73.33 270520380 1813 SHAKOPEE AVE E 79.90 270580020 1034 PIERCE ST S 79.90 270580120 521 MCDEVITT ST 79.90 270620310 8394 HORIZON DR 331.04 270630050 1198 HARRISON ST S 79.90 270630170 1726 12TH AVE W 79.90 270630280 1948 12TH AVE W 311.28 270650100 1124 MERRITT CT 128.10 270650321 1909 DAVIS CT 74.86 81 270660080 529 THOMAS AVE 79.90 270740070 1274 HARRISON ST S 74.22 270740180 1767 PRESIDENTIAL LN 79.90 270830470 1190 MENKE CIR 79.90 270840170 1244 TYLER ST S 87.04 270840260 1263 POLK ST S 148.10 270840280 1245 POLK ST S 43.01 270840320 1220 POLK STS APT 2 108.25 270920060 1037 EASTVIEW CIR 79.90 270920061 1035 EASTVIEW CIR 146.48 270920100 1055 EASTVIEW CIR 239.70 270920221 833 PRAIRIE ST S 276.04 270920370 1067 EASTVIEW CIR 79.90 270920400 1081 EASTVIEW CIR 79.90 270940021 1130 3RD AVE W 116.70 270970230 443 MARKET ST S 128.91 271020090 1282 POLK ST S 74.86 271040022 2045 12TH AVE W 311.28 271040050 2020 12TH AVE W APT 1 88.16 271060030 1009 4TH AVE E 74.86 271130130 206413TH AVE W 74.86 271190030 2077 AUSTIN CIR 74.86 271210020 123612TH AVE W 74.71 271250040 922 DAKOTA ST S 408.52 271250070 910 DAKOTA ST S 79.90 271310240 1290 LIMESTONE DR S 74.86 271330220 1166 LIMESTONE DRS 74.86 271330580 2010 HERITAGE DR E 63.57 271380140 1427 PRAIRIE LN 79.90 271380160 1126 PRAIRIE CT S 79.90 271380230 1121 PRAIRIE CT S 84.34 271380300 131211TH AVE E 103.75 271450080 1272 RUBY LN 79.90 271470020 1301 PONDVIEW CT 79.90 271500220 1136 CLOVER CT 331.04 271500350 515 MINT CIR 79.90 271500390 516 MINT CIR 79.90 271580030 1181 NAUMKEAG STS 79.90 271600250 804 LARKSPUR CT 159.72 271620040 514 5TH AVE E 380.03 271620090 526 MARKET ST S 109.90 271630040 1509 ROUNDHOUSE CIR 206.04 271630161 1504 ROUNDHOUSE CIR 64.86 271630221 1552 ROUNDHOUSE CIR 286.28 271660120 1134 SHAWMUT ST S 84.34 271660150 1194TUMBLEWEEDCIR 74.86 271680010 1192 POLK ST S 74.86 271680030 1176 POLK ST S 79.90 82 271680250 1121 POLK STS 79.90 271700260 1297 HERITAGE DRS 118.02 271770260 1257 SWIFT CIR 131.04 271770310 1272 MILLER ST S 79.90 271800400 1407 THISTLE LN 79.90 271840010 1405 MONARCH ST 96.34 271840110 1404 MONARCH ST 74.86 271840180 1504 MONARCH ST 51.47 271880060 1697 13TH AVE W 74.86 271890040 655 5TH AVE E 228.28 271920280 145 BLUESTEM AVE E 331.04 271920410 226 FOXGLOVE LN 74.86 271920620 209 FOXGLOVE LN 308.86 271930010 447 MARKET ST S 79.90 271950100 324 SAND ST 361.52 271960140 110 MOUND ST 74.86 271980080 1487 HOMESTEAD ST 79.90 271980090 1497 HOMESTEAD ST 128.10 272040080 1438 APPLEGATE LN 79.90 272070340 344 HICKORY LN 310.27 272070520 217 HICKORY LN 79.90 272070530 177 HICKORY LN 58.78 272080020 1927 GREENWAY AVE 128.10 272080130 2127 GREENWAY AVE 79.90 272080250 2134 GREENWAY AVE 79.90 272090140 695 MONNENS AVE 74.86 272090380 604 MONNENS AVE 160.31 272090420 504 MONNENS AVE 100.15 272100050 284 APPLEBLOSSOM LN W 79.90 272100080 184 APPLEBLOSSOM LN W 81.31 272100091 158 APPLEBLOSSOM LN W 123.06 272100191 121 APPLEBLOSSOM LN W 74.86 272140317 547 WOODSIDE CT 189.03 272200260 295 ORCHARD CT 59.70 272220140 2094 FRENCH TRACE AVE 38.64 272310480 2067 MERIDIAN CT 128.10 272340200 219 APPLEBLOSSOM LN E 38.15 272420490 701 HARVEST CT 61.15 272440240 634 MCINTOSH CT 51.47 272500320 7244 BERKSHIRE LN 89.90 272500470 6768 CARLISLE CURV 79.90 272600270 2142 GROVELAND WAY 69.90 272630360 2155 MATHIAS RD 79.90 272660350 1551 HARVEST LN 74.86 272740050 2077 PHEASANT RUN ST 309.75 272790890 7438 DERBY LN 115.24 272800370 1986 MATHIAS RD 43.01 272800400 2052 MATHIAS RD 331.04 83 272810270 6598 DANBURYCURV 79.90 272840270 7468 WHITEHALL RD 79.90 272840590 1594 COVENTRY LN 74.86 272930030 1563 HARVEST LN 334.21 272930240 1291 CIDER CIR 59.97 272960130 6898 TURNBRIDGE CIR 74.86 272970030 2297 PONDS WAY 79.90 272970090 2321 PONDS WAY 331.04 273000070 6465 OXFORD RD S 79.90 273030040 2341 PONDS WAY 74.86 273030070 2353 PONDS WAY 79.90 273050140 6821 FALMOUTH CURV 311.28 273050160 6869 FALMOUTH CURV 159.72 273050330 6870 FALMOUTH CURV 74.86 273050360 6774 FALMOUTH CURV 335.48 273100260 2326 MATHIAS RD 43.01 273100320 2422 MATHIAS RD 139.70 273130040 1277 FIRESIDE CT 100.51 273150150 6897 GREENBRIAR CURV 84.34 273160080 2506 THRUSH ST 321.82 273190360 2118 WILLIAMS ST 219.99 273220200 1839 EVERGREEN LN 74.86 273291010 944 NEWPORT AVE 73.33 273291060 854 NEWPORT AVE 73.33 273350040 1940 EAGLE CREEK BLVD 79.30 273430030 2603 THRUSH ST 83.33 273430160 2010 ORMOND DR 79.90 273430890 2778 LAHOMA CT 129.70 273430920 2775 LAHOMA CT 79.90 273431220 2006 OMEGA DR 169.80 273431740 2120 STAGHORN DR 169.80 273432660 2021 STAGHORN DR 74.86 273460170 1744 MATHIAS RD 79.90 273470090 2510 QUEEN AVE 74.86 273470640 2795 KING AVE 79.90 273570310 827 PATTERSON DR 79.90 273580110 1852 WYNDAM DR 311.28 273590380 901 BASENJI CURV 79.90 273590770 1909 BERNESE PL 65.54 273591120 830 WESTCHESTER AVE 73.33 273621040 8805 WHISPERING OAKS TRL 139.80 273640020 1219 4TH AVE W 239.70 273660440 1814 PENSTEMON LN 96.56 273660510 1853 PENSTEMON LN 74.86 273660540 1841 PENSTEMON LN 42.38 273712230 4897 BULRUSH BLVD 35.92 273721100 4064 BLAKEWOOD DR 87.70 273760070 2104 SWALLOWTAIL DR 76.60 84 273760130 2128 SWALLOWTAIL DR 79.90 273760280 2108 MEADOWLARK LN 60.78 273760470 2108 SANDHILL DR 79.90 273760670 2136 WINTERBERRYLN 69.90 273780450 1839 SWITCHGRASS LN 74.86 273790070 1772 FESCUE CT 139.58 273800030 1971 EVERGREEN LN 46.35 273860210 1796 SWITCHGRASS CT 331.04 273870150 3620 MOLINAST 383.52 273900120 1160 DANUBE AVE 239.70 273900380 656 DANUBE AVE 73.33 273900750 1701 GOTLAND LN 79.90 273900820 1743 GOTLAND LN 79.90 273901280 1644 FRIESIAN ST 239.70 273901380 1615 FRIESIAN ST 70.00 273901410 617 HACKNEY AVE 74.86 273902130 1680 PALOMINO ST 74.86 273902280 233 DONGOLA LN 306.04 273902540 229 ARABIAN AVE W 253.90 273902710 242 DONGOLA LN 71.25 273902760 213 MORAB AVE 74.86 273903000 144 ARDENNESAVEW 74.86 273903410 182 ARDENNES AVE E 74.86 273903600 120 POTTOK LN 79.90 273903930 237 ARABIAN AVE E 73.33 273904070 191 POTTOK LN 88.19 273904110 233 POTTOK LN 61.34 273920100 3605 KARNER DR 74.86 273940240 3860 MOLINAST 128.10 273950320 8650 MORAINE DR 286.28 274020040 2312 VIERLING DR E 35.92 274210060 1367 RIDGE LN 328.28 274210270 2379 JENNIFER LN 79.96 274270350 7923 SPRING LAKE LN 306.69 274270640 8104 SPRING LAKE DR 66.10 274630260 1622 WINDIGO LN 74.86 274630310 1664 WINDIGO LN 79.90 274630550 1669 WINDIGO LN 224.58 274680020 7212 WATERLILY WAY 74.58 274720290 1062 CUBASUE AVE 79.90 274750450 1743 WILKING WAY 84.78 274840080 7212 RIDGE CREEK TRL 74.86 274900210 1960 ATTENBOROUGH ST 74.86 274900360 2133 AMELIA TRL 79.90 274900480 2343 ALOHA AVE 306.04 274901230 1747 ASTORIA DR 133.24 275020150 2682 PADDOCK PATH 79.90 275020180 2668 PADDOCK PATH 182.06 85 275020460 2581 PADDOCK PATH 159.72 275040680 2897 TRINITY DR 79.90 275040750 2803 TRINITY DR 43.80 275040760 2804 TRINITY DR 79.90 275041290 2974 TRINITY DR 79.90 275080120 1744 AUGUST DR 79.90 275080230 1804 AUGUST CT 84.59 275080460 1870 AZTEC AVE 192.64 275080880 1730 ATHENS TER 74.86 275080900 1746 ATHENS TER 79.90 275081220 2103 ALOHA AVE 79.90 275161510 1500 PHILIPP WAY 28.46 275220280 2072 ARDMORE PL 131.62 275280030 3617 WREN AVE 84.34 275331400 2447 MARSH VIEW CT 107.61 279010260 844 SOMMERVILLE ST S 178.58 279060680 620 8TH AVE E 74.86 279061000 533 SHAKOPEE AVE E 219.99 279061110 709 SHAKOPEE AVE E 79.90 279070360 528 SHAKOPEE AVE E 215.63 279080100 2393 HAUER TRL 148.10 279080130 2184 EAGLE CREEK BLVD 106.20 279120400 850 HOLMES ST S 79.90 279130340 1655 STAGECOACH RD 239.70 279170101 2185 VALLEY VIEW RD 79.90 GRAND TOTAL 40,352.81 86 09/11/25 NOTICE OF HEARING DELINQUENT GARBAGE/REFUSE BILLS FROM DICK'S SANITATION Parcel Address: Parcel Number: Name Street1 Street2 City, State, Zip Dear Property Owner: Notice is hereby given that the City Council of the City of Shakopee will meet at 7:00 p.m. on October 21, 2025 in the City Council Chambers of the City Hall, 485 Gorman St., Shakopee, Minnesota. This public hearing is to consider certifying delinquent garbage/refuse bills for services provided by Dick's Sanitation for collection that will be added to the property taxes for taxes payable in 2026. Notice of the hearing will be published in the New Prague Times on September 25, 2025. The City of Shakopee contracts with Dick's Sanitation to provide city-wide refuse collection. The contract requires Dick's Sanitation to submit delinquent garbage/refuse accounts to the city each year for pending assessments against the properties. The property you own Parcel address: Parcel ID : has been identified as having a delinquent bill in the amount of $ To avoid an assessment to your property, please pay Dicks Sanitation. Payment can be made via telephone by calling the main office at 952-469-2239 between the hours of 8:am-4:30pm Monday - Friday, by calling the automated phone system at 800-457-1379 ( you will need your account number for this) , making an online payment via their website at dickssanitation.com or by mailing your payment to PO BOX 679859 Dallas, TX 75267-9859. The proposed list of delinquencies is on file for public inspection at the Office of the City Clerk in City Hall, 485 Gorman St., Shakopee, Minnesota. Written or oral objections by any or all persons desiring to be heard will be considered at the hearing by the City Council. Please note the following. • Owners of multi -unit dwellings are responsible for checking with all renters about delinquencies. This letter only recognizes the property identification (PID) on file with Scott County and not multiple addresses associated with the dwelling. • If you recently purchased this property, you may want to contact your closing company and/or your personal attorney for advice on taking care of this delinquent account. Delinquent accounts not paid in full on or before November 21, 2025 will be subject to an administrative fee of $25 added to the delinquent amount and assessed to the property's tax bill in 2026. Thank you for your prompt attention to this matter. Respectfully, Dicks Sanitation 87 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.j September 16, 2025 Declaration of Surplus Audio -Visual Equipment Amanda Lillie, Communications Manager Action to be considered: Declare equipment as surplus and authorize its disposal Motion Type: Simple Majority Background: The Communications Department has a variety of surplus audio-visual equipment that has exceeded its useful life. 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. Recommendation: Approval as requested Budget Impact: N/A Attachments: Surplus_Equipment_List_09.08.2025.pdf 88 Quantity Item Description Notes 1 Greenscreen cloth Old, no longer in use 1 Canon XF100 HD Camera Outdated, replaced with newer model 1 Araknis Network Switch Old, no longer supported 1 GVM 3 -Light Kit Outdated, replaced with newer model 1 Lowel 2 -Light Kit Outdated, replaced with newer model 1 Monopod Outdated, replaced with newer model 1 Microphone boom arm Old, no longer in use 1 KRK Speaker Old, no longer supported 89 SHAKOPEE Shakopee City Council 5.k September 16, 2025 Agenda Item: Roadway De-icing Salt Cooperative Purchasing Venture Prepared by: Jamie Theis, Street Supervisor Reviewed by: Action to be considered: Authorize the purchase of roadway de-icing salt using the Minnesota Department of Transportation Road Salt Cooperative Purchasing Venture. Motion Type: Simple Majority Background: Participation in the Minnesota Department of Transportation (MnDOT) Road De-icing Salt Cooperative Purchasing Venture (CPV) requires us to submit our road salt order each spring. Under the CPV agreement, each agency is required to take delivery of a minimum of 80% and a maximum 120% of the contracted quantities. Based on past usage and the current stock piles from recent mild winters, we have reduced our order for the 2025-2026 winter season to 400 tons of regular road salt and 100 tons of treated salt. At the contracted rates of $105.63 per ton for regular salt and $116.74 per ton for treated salt, the City's commitment for the upcoming season totals a minimum of $43,140.80, which satisfies the CPV requirement of 80% minimum usage and maximum of $64,711.20 allowed at 120% usage. If a mild winter is experienced, the excess material would be stored for use for the 2026/27 winter. Recommendation: Authorize the Purchase Budget Impact: Roadway de-icing salt is budgeted under the Street Maintenance General Fund, the fund 90 has a sufficient amount to cover 120% usage. Attachments: CPV Contract.docx CPV Road Salt Spreadsheet.xlsx CPV Treated Salt Spreadsheet.xlsx 91 Contract Release: S-763(5) Admin Minnesota Office of State Procurement Room 112 Administration Bldg., 50 Sherburne Ave., St. Paul, MN 55155; Phone: 651.296.2600, Fax: 651.297.3996 Persons with a hearing or speech disability can contact us through the Minnesota Relay Service by dialing 711 or 1.800.627.3529. CONTRACT RELEASE: S-763(5) DATE: AUGUST 1, 2025 PRODUCT/SERVICE: CRUSHED ROCK SALT (SODIUM CHLORIDE) REGULAR AND TREATED - FOR ROAD USE CONTRACT PERIOD: JUNE 15, 2023, THROUGH MAY 31, 2026 EXTENSION OPTIONS: UP TO 24 MONTHS ACQUISITION MANAGEMENT SPECIALIST/BUYER (AMS): KAREN MCINTYRE PHONE: 651.201.3124 E-MAIL: karen.mcintyre@state.mn.us WEB SITE: https://mn.gov/admin/osp/ CONTRACT VENDOR BLACKSTRAP, INC. PO Box 258 Neligh, NE 68756 VENDOR NO.: 0000849027 Blackstrap, Inc Sample Invoice CONTRACT VENDOR CARGILL, INCORPORATED 24950 Country Club Blvd. North Olmstead, OH 44070 VENDOR NO.: 0000211244 CONTRACT NO. 230563 TERMS Net 30 ORDERING CONTACT: Miranda Email: accounting@blackstrapinc.com CONTACT: Alex Hughes Email: alex@blackstrapinc.com CONTRACT NO. 230566 TERMS Net 30 CONTACT: Customer Care/Service Email: salt_customercareroadsafety@cargill.com Or Place Orders at 800.600.7258 or Fax 952-367-0655 DELIVERY As Requested PHONE: 402.887.5651 FAX: 402.887.5659 PHONE: 402.887.5651 FAX: 402.887.5659 DELIVERY As Requested PHONE: 800-600-7258 FAX: 952-367-0655 Additional Information Needed When Ordering Include: Customer Number, Confirm Delivery Address, and Delivery Contact Cargill, Inc Sample Invoice Page 1 of 16 92 Contract Release: S-763(5) CONTRACT VENDOR COMPASS MINERALS AMERICA INC. 900 109th Street, Suite 100 Overland Park, KS 66210 VENDOR NO.: 0000212197 CONTRACT NO. TERMS 230567 Net 30 274371 — CPV Treated Salt Locations ORDERING CONTACT: Jennifer Thomas Email: Highwayorders@compassminerals.com CONTACT: Sean Lierz Email: lierzs@compassminerals.com Compass requests orders are placed by Email at Highwayorders@compassminerals.com Include PO # Complete Physical Address of the site for delivery — Street Address, City, State, Zip Contact Person & Phone Number Compass Minerals Sample Invoice CONTRACT VENDOR JOHNSON FEED, INC 305 W Industrial Rd Canton, SD 57013 VENDOR NO.: 0000203312 Johnson Feed Sample Invoice CONTRACT VENDOR MORTON SALT, INC. 444 West Lake Street, Suite 3000 Chicago, IL 60606 VENDOR NO.: 0000383972 Morton Salt Sample Invoice CONTRACT NO. 230568 TERMS Net 30 ORDERING CONTACT: Jeff Sehr Email: jeffs@johnsonfeedinc.com CONTACT: David Richards Email: davidr@johnsonfeedinc.com CONTRACT NO. 230570 TERMS Net 30 ORDERING CONTACT: Morton Customer Service Email: buyroadsalt@mortonsalt.com CONTACT: Na-Tia Douglas Email: bids@mortonsalt.com DELIVERY As Requested PHONE: 800.323.1641 Option 1 FAX: 913.338.7945 PHONE: 913.344.9330 FAX: 913.338-7945 DELIVERY As Requested PHONE: 605-764-7373 PHONE: 605-764-7390 DELIVERY As Requested PHONE: 855.665.4540 FAX: 312-896-9208 PHONE: 312-807-2384 Page 2 of 16 93 Contract Release: S-763(5) CONTRACT VENDOR SKYLINE SALT SOLUTIONS 165 Westside Ct. Dubuque, IA 52003 VENDOR NO.: 0001141575 Skyline Salt Sample Invoice CONTRACT NO. TERMS 230662 Net 30 274372 CPV & MnDOT Treated Salt Locations ORDERING CONTACT: Customer Service Ordering Email: Admin@skylinesalt.com CONTACT: Darrell Kritz Email: Darrell@skylinesalt.com DELIVERY As Requested PHONE: 563-451-0640 FAX: 563-556-1656 PHONE: 563-580-4807 FAX: 563-556-1656 CONTRACT USERS. This Contract is available to the following entities as indicated by the checked boxes below ❑x State agencies ❑x Cooperative Purchasing Venture (CPV) members STATE AGENCY CONTRACT USE. This Contract must be used by State agencies unless a specific exception is granted in writing by the AMS listed above. STATE AGENCY ORDERING INSTRUCTIONS. Orders are to be placed directly with the Contract Vendor. State agencies should use a Contract release order (CRO) or a blanket purchase order (BPC). The person ordering should include his or her name and phone number. Orders may be submitted via fax. CONTRACT FEEDBACK. If these commodities or service can be better structured to help you with your business needs, let us know. We solicit your comments and suggestions to improve all of our contracts so that they may better serve your business needs. If you have a need for which no contract currently exists, or you would like to be able to use an existing state contract that is not available to your entity, whether a state agency or CPV, please contact us. If you have specific comments or suggestions about an individual contract you can submit those via the Contract Feedback Form. REVISIONS. 08/01/2025 06/06/2025 09/16/2024 07/19/2024 06/01/2024 04/24/2024 Added Skyline Contract No. 274372 and Compass Mineral Contract No. 274371 for treated road salt formerly awarded Cargill treated road salt locations. All other pricing, terms and conditions remain the same. All other pricing, terms and conditions remain the same. All contracts are extended through May 31, 2026.Johnson Feed and Blackstrap pricing will remain the same. The other Contractors have updated pricing. 80% Guaranteed amounts waived by Cargill. Compass and Morton waive the storage fees on remaining guaranteed amount until October 31, 2025. All other terms, conditions and specs remain the same. Cargill did not renew their contract for Treated Road Salt for the 2025-2026 Season, Compass Contract No. 230567 is amended formally note award MnDOT Madelia location. All other pricing, terms and conditions remain the same. Cargill Contract No. 230566 is amended to waive the 2023-2024 Storage Fee until Cambridge Township and City of Cambridge until December 31, 2024. The City of Cambridge will take 60 tons of the 80 tons guaranteed by Cambridge Township for the 2023-2024 season. Compass Contract No. 230567 is amended to reduce the City of Cambridge requested from 300 tons to 240 tons. All other pricing, terms and conditions remain the same. All contracts are extended with updated pricing. Early Delivery order deadline is changed to October 31, 2024. Road Salt season 2023-2024 Storage fees for are reduced to $6.00 per ton per month for Cargill, and Morton Salt, and $2.50 per ton per month for Skyline. Compass has waived the storage fee through October 31, 2024. The fuel rates used for calculating the possible fuel charges are updated for the 2024-2025 season All other terms, conditions and specifications remain the same. Skyline Contract No. 230662 amended to add MnDOT Transfer Locations. All other pricing, terms, conditions & specs remain unchanged. Page 3 of 16 94 Contract Release: S-763(5) 07/06/2023 For Compass Contract No. 230567, added MCF — St. Cloud CPV location for treated road salt. All pricing, terms, conditions, and specs remain the same. 08/03/2023 For Cargill Contract No. 230566 amended to reduce treated road salt from 900 tons to 800 tons for City of Hastings. All pricing, terms, conditions and specs remain the same. 07/06/2023 For Compass Contract No. 230567, added East Grand Forks CPV location for regular road salt. For Cargill Contract No. 230566, MnDOT Mendota location treated road salt delivery price is corrected. For Blackstrap Contract No. 230563, Kittson Co. delivery price is corrected. For Skyline Contract No. 230662 the MnDOT Fairmont Regular Salt total delivered price is corrected. All other terms, conditions, specifications, and pricing remains the same. PLACING ORDERS AND PRICING INFORMATION • Contact the Contractor to set up your account and place your purchase order. • The contract was executed with FIXED PRICING. The vendor pricing must match the prices in the price book link below. • Verifying Contract Prices: Customers must calculate and confirm all contract prices when placing any order. • Only accept contractor quotes that provide itemized contract pricing (lump sum price quotes must be rejected and reworked by the Contract Vendor to show itemized State contract pricing). • Prior to accepting an order or issuing payment on an invoice, inspect the goods and/or deliverables to ensure they match both the specifications, terms, and pricing of the contract. • Contact the Contract Vendor if you identify any discrepancies or need to take any deductions for moisture or late delivery. Contact the AMS/Buyer detailed herein to report any pricing discrepancies or for assistance in confirming/calculating contract pricing. PRICE SCHEDULE LINKS The links below display the complete list of MnDOT and CPV customer locations, prices, and Awarded Contractor by Location CPV Member Road Salt Exhibit D - Price Schedule 2025-2026 MnDOT Road Salt Exhibit D- Price Schedule 2025-2026 Contract No. 274371 and 274372 Exhibit D - Price Schedules for MnDOT & CPV Locations Previous Awarded to Cargill or New Treat Salt Locations CPV Member Road Salt Exhibit D - Price Schedule 2025-2026 MnDOT Road Salt Exhibit D- Price Schedule 2025-2026 SPECIFICATIONS, DUTIES, AND SCOPE OF WORK 1. STATE GUARANTEE. 1.1 This Contract will be for 80 percent (%) commitment to take the listed quantity by the customer and a commitment from the Contractor to provide 120 percent (%) of the listed quantity. Page 4 of 16 95 Contract Release: S-763(5) 1.1 The State requires 120% of the Contractor's contracted salt quantities to be in position within the State of Minnesota or regional depots and available January 1st through April 15th for the contracted winter season. Salt delivered to MnDOT and CPV members shall be subject to the guarantees described herein: 1.2 MnDOT Metro Area Guarantee. The MnDOT Metro area will purchase a minimum 80 percent of its total estimated tonnage awarded under the Contract and the Contractor is obligated to furnish up to 120 percent of the total estimated tonnage awarded under the Contract. As used in this paragraph, "total estimated tonnage" means the total quantity of all Metro areas awarded to the Contractor. Tonnage delivered to individual delivery points or Metro areas may fall outside these minimum and maximum percentage ranges as long as the total estimated Metro area tonnage remains unchanged. If a need occurs to modify individual delivery point estimated tonnage, the Contractor agrees to deliver the material to the alternate location at the contracted prices for the alternate location. See Section 4.5 for more details on alternate delivery locations. Example: Contractor A is awarded delivery locations with total estimated tonnage of 70,000. The guaranteed minimum is 70,000 x 0.8 = 56,000 tons. Similarly, the maximum obligation of the Contractor would be 70,000 x 1.2 = 84,000 tons. This pertains to the Metro MnDOT District only. 1.3 MnDOT Greater Minnesota Areas Guarantee — DOES NOT INCLUDE MNDOT METRO. Greater Minnesota MnDOT districts agree to purchase a minimum of 80 percent of the total estimated tonnage awarded under the Contract and the Contractor is obligated to furnish up to 120 percent of the total estimated tonnage awarded under the Contract. As used in this paragraph, "total estimated tonnage" means the total quantity of all greater Minnesota MnDOT maintenance areas awarded to the Contractor. Tonnage delivered to individual delivery locations or districts may fall outside these minimum and maximum percentage ranges as long as the total estimated Greater Minnesota tonnage remains unchanged. If a need occurs to modify individual delivery point estimated tonnage, the Contractor agrees to deliver the material to the alternate location at the contracted prices for the alternate location. See Section 4.5 for more details on alternate delivery locations. Example: Contractor A is awarded delivery locations with total estimated tonnage of 70,000. The guaranteed minimum is 70,000 x 0.8 = 56,000 tons. Similarly, the maximum obligation of the Contractor would be 70,000 x 1.2 = 84,000 tons. This pertains to the greater Minnesota MnDOT districts only and does not include MnDOT Metro districts. 1.4 Cooperative Purchasing Venture (CPV) Members Guarantee: The CPV member guarantees the purchase of at least 80 percent of the total estimated quantity for the entity awarded to an individual Contractor, and the Contractor must guarantee to supply up to 120 percent of the estimated quantity to the CPV member. This shall apply to the estimated quantities of salt required for delivery or pick up as shown on the Exhibit D: Price Schedule. If the agency has multiple delivery locations, the total is for the combined requirements for the CPV member — not by individual delivery location. Tonnage delivered to individual delivery locations, for a CPV member with multiple deliver locations, may fall outside these minimum and maximum percentage ranges as long as the total estimated CPV member tonnage remains unchanged. If a need occurs to modify individual delivery point estimated tonnage the Contractor agrees to deliver the material to the alternate location at the contracted prices for the alternate location. See Section 4.5 for more details on alternate delivery locations. Page 5 of 16 96 Contract Release: S-763(5) If the Customer is unable to take the 80% required minimum, the product could be shipped to another location or customer at a price that is mutually agreed by the Contractor and the receiving Customer. Any quantity shipped would apply against the original Customer's guarantee. 1.5 Should a situation occur where any Customer requires more than 120% of the estimated tonnage awarded to a Contractor under the Contract, the Customer may increase the quantity, if the Contractor agrees, providing the terms and conditions remain unchanged and the price is the same or lower as originally contracted, unless otherwise agreed to in writing by the AMS. The additional product shipped does not relieve the Contractor from satisfying all of its salt requirement totals by customer location as contracted. 1.6 If the Customer is unable to take the 80% required minimum, the product could be shipped to another location or customer at a price that is mutually agreed by the Contractor and the receiving Customer. Any quantity shipped would apply against the original Customer's guarantee. 1.7 Should a situation occur where any Customer requires more than 120% of the estimated tonnage awarded to a Contractor under the Contract, the Customer may increase the quantity, if the Contractor agrees, providing the terms and conditions remain unchanged and the price is the same or lower as originally contracted, unless otherwise agreed to in writing by the AMS. The additional product shipped does not relieve the Contractor from satisfying all of its salt requirement totals by customer location as contracted. 2. CONTRACTOR REPORTING. 2.1 Stockpile Verification. The Contractor will provide a report in Microsoft® Excel format detailing the tonnage available by vendor stockpile location and an analysis of whether there are any issues with meeting the contract guarantee provisions. The Stockpile report will be due on to the AMS on the 10th of each month August through April or upon request from the AMS. 2.2 Order Status. The Contractor will provide an order status report monthly for order(s) which are incomplete or overdue. The order status report will be due on to the AMS on the 10th of each month August through April or upon request from the AMS. 3. ORDER PROCESSING. 3.1 The Contractor shall have one designated individual available during all salt shipments who has the authority to act on behalf of the Contractor in any matter relating to delivery questions and material quality issued. 3.2 All orders must be in writing and all MnDOT orders must have an associated Purchase Order number included on the order. MnDOT must include a copy of the Purchase Order upon request of the Contractor. A Minnesota Sodium Chloride Delivery Request and Confirmation Form (hereafter "Order Form" and Exhibit E — Sample Order Form) is recommended to request and confirm orders. Contractor written response to the receipt of a written order from Customer shall be followed by email confirmation within two days by both parties which may include the Order Form as documentation for reconciliation. The Customer may refuse delivery if the Contractor fails to respond in writing. 3.3 When placing an order, the Customer shall provide the Customer contacts for delivery coordination along with phone number and other contact method (fax, email, etc.) for the contact. The Customer will provide Contractor a list of destinations with addresses in priority order for delivery, number of tons requested, preferred delivery dates and preferred time of day for each destination and the hours available for delivery to be made. The Contractor must accept the requested delivery terms or negotiate alternative delivery terms and confirm the agreed upon terms within two days of receiving the request for delivery. Page 6 of 16 97 Contract Release: S-763(5) 3.4 Confirmation shall be by email to the contact person listed on the order. If the customer does not request an order in writing, the Contractor is under no obligation to meet the 10 -day delivery window. If the Customer does not specify a required delivery date, the delivery is assumed to commence within 5 business days and be completed within 10 business days from the order date. 3.5 Early fill order requests must be submitted by October 31st of the contract term. Salt ordered after November 1st of the contract term will be considered as Seasonal Fill and is not subject to the Early Fill delivery date deadlines outlined in Section 5. When intending to deliver early fill salt, the Contractor must arrange with the Customer to take delivery by giving the Customer a ten -business day notice of intent to deliver. The Customer must acknowledge the notice in writing. The Contractor must confirm delivery arrangements by email to the Customer's contact person in writing. 3.6 If the delivery requested by the Customer follows the delivery provisions included in this contract, the Contractor must satisfy the delivery request. If the Contractor cannot meet the requested delivery window, and the Contractor and the Customer cannot agree on an alternative delivery schedule, the Customer reserves the right to cancel the order and purchase from the next low responsive vendor or on the open market from another source. The Contractor must pay the difference in cost between the Contract price and the cost of the second vendor if it is higher than the Contract price. This cost may be deducted from any invoice that the Customer has with the Contractor. All costs will include, but are not limited to, the cost of the product, sales tax, and transportation charges. 3.7 If the Contractor acknowledges and accepts the order and fails to meet the required delivery window, the Customer reserves the right to assess liquidated damages as outlined in the contract. 3.8 If the Contractor cannot meet an established delivery window, they must notify the MnDOT District or CPV Member at least 24 hours prior to the start of the established delivery window to attempt to establish an alternate delivery schedule. 3.9 The Customer must provide the Contractor written documentation of the agreed upon delivery to assess liquidated damages. 3.10 If the Contractor fails to meet the delivery requirements and the purchasing entity has purchased road salt from another source per the terms of Section 3.6 of this contract, the 80% guarantee may not be enforced by the Contractor to the purchasing entity with late deliveries. 4. DELIVERY REQUIREMENTS. All deliveries must be FOB Destination to the MnDOT or CPV member's storage facilities identified in the Price Schedule. 4.1 All loads must be covered. The Contractor must furnish covers on trucks of sufficient size, weight, and good condition, to protect the load from moisture and loss of material in transit. Loads not covered may be rejected or subject to a 10 percent deduction to the Contract Price on the tonnage shipped if the ordering agency accepts the shipment. 4.2 Conveyor Deliveries. If the Contractor does not use conveyor unloading for those sites requesting conveyor unloading, a deduction of 10 percent will be made from the Contract price. In addition, any costs incurred by the MnDOT District or the CPV member to move the salt to the storage facility will be charged back to the Contractor. This will include, but is not limited to, any actual costs for equipment, labor, transportation charges and any applicable taxes. 4.3 Will Call Pickup. Should a MnDOT location or CPV member desire to pick up the order, the Customer will be responsible for coordinating the time and place for pick up from the Contractor. The cost of the product will be adjusted to reduce the total delivered price by the cost of delivery to the Customer. The Contractor muse use the source stockpile originally designated in their bid for the Customers location unless the Page 7 of 16 98 Contract Release: S-763(5) Customer agrees to pick up at an alternative stockpile. The Customer must confirm with the Contractor and restrictions on truck size or configuration prior to the Will Call Pickup. 4.4 Delivery Errors. If the Contractor delivers the product to the wrong location or does not use the delivery method required, i.e., end dump, belly dump, etc., at the delivery site, the Customer may reject the load. Within two (2) days of notification, the Contractor must pick up the material and deliver it to the correct location or move the material as required, or the Customer may make the correction and charge all actual labor hours and equipment time back to the Contractor. 4.5 Alternate/Modified Delivery Locations. The Customer may request to have contracted material delivered to an alternate location within areas serviced by the Contractor's source stockpile locations. In the effort to ensure public safety, the Contractor is required to make every reasonable effort to service alternative locations when requested by the Customer. There are two different types of alternative locations: • Contractor's Contract Site to Same Contractor's Contract Site • Contractor's Contract Site to a Contractor's Non -Contract Site. For the two types of alternative delivery locations, the Contractor must follow the process below: 4.5.1 For Contractor delivery of contracted material to the same Contractor's contract delivery site. The Contractor must provide delivery to the alternate site at the contracted price for the alternate site if product contracted are both served by the same source stockpile per the guarantee provisions. If product contracted for the alternate site is not served by the same source stockpile, the Contractor will provide a quote to the Customer which details any potential change in delivery costs to the alternative Customer location with the base cost of the material remaining the same. 4.5.2 For Contractor delivery to a non -contract site. If the non -contract site is within the service area of the Contractor, the Contractor must provide a quote to the Customer with the product price and the delivery charges for the non -contract site. Acceptance of the quoted delivery charge or product pricing differences is at the discretion of the Customer. 4.6 Required Delivery Notification. NO DELIVERIES MAY BE MADE WITHOUT PRIOR NOTIFICATION TO THE CUSTOMER. The Contractor must provide notice of intent to deliver at least 24 hours prior to the actual delivery and receive a confirmation in order to ensure that staff is available to inspect and receive the load. 4.7 Required Delivery Signature. DELIVERIES UNLOADED WITHOUT OBTAINING SIGNATURES WILL NOT BE PROCESSED FOR PAYMENT. All MnDOT deliveries must be signed for by a representative of the State. The signature is required for verification of delivery and processing payment. It is recommended CPV deliveries are signed for by an authorized representative at the time of unloading. 4.8 Customer Pick Up. Some CPV Members have indicated that agency pickup of material will be required. Contractors must have product available within 25 miles of the requesting agency locations except for the City of Maple Grove. 4.9 Load Sizes. The Contractor is advised that the legal weight limit allowed on State highways will be strictly enforced. In the event a load is shipped to a delivery point which exceeds the legal load limits, the State may notify the appropriate law enforcement personnel of the overweight load. 4.10 Carrier. The Contractor must use a carrier that meets all federal and State laws as required by the appropriate interstate transportation authority. Page 8 of 16 99 Contract Release: S-763(5) 4.11 Weigh Scale Tickets. All salt delivered under this Contract shall be weighed by the Contractor on an approved scale that meets all applicable specifications, tolerances, and other requirements of Minnesota Rules Chapter 7601. No Contractor will be allowed to use a publicly owned scale or to substitute boxcar or barge weights for this requirement. The State reserves the right to have the loads re -weighed for verification of weight, at a certified scale. The site for re -weighing shall be determined by the State. Weigh slips must be provided at the time of delivery. If requested, the Contractor must submit a copy of the current scale calibration certification. 5. SALT DELIVERY SCHEDULE REQUIREMENTS. 5.1 The Contractor will provide not less than 80 percent and up to 120 percent of the estimated Contractor totals available for delivery or pick up, as shown on the price schedule between the dates of June 1st through May 31st of the Contract term. 5.2 Deliveries to destinations requested by the Customer shall commence within 5 business days and be completed within 10 business days from the date agreed upon under Section 3.3 and 3.4 above, except as addressed in Section 5.3 and 5.5 below, unless other arrangements are agreed to in writing. 5.3 If the Customer does not specify a required delivery date, the delivery is assumed to commence within 5 business days and be completed within 10 business days from the order date and the Contractor must still confirm the delivery date(s) as specified in Section 3.2. 5.4 Orders larger than 1500 tons shall have an extra day to deliver per every additional 500 tons. 5.5 Early Fill. Customers may request early fill orders and they are encouraged as a means to effectively manage delivery and salt quality. Early Fill orders must be submitted by November 1 of the contract term. Early Fill salt will be delivered to the destination by direct transfer from a ship, barge, or rail car and not from the prior season's local salt stockpiles or another storage facility. The State will not accept material left over from the previous season for these orders. Delivery dates must be arranged by the Contractor with proper notice to the Customer (see Section 3.4), 75% of the early fill delivery must be completed to each location by November 10 of the contract term and 100% of the early fill must be completed by December 4th of the contract term. The customer is obligated to accept delivery of early fill salt upon proper notification by Contractor (see Section 3.5). 5.6 Seasonal Fill. Seasonal Fill salt may be delivered from a stockpile or from a ship, barge, or rail car. Seasonal Fill orders are orders submitted from November 1 of the contract term to the end of the contract term. 5.7 Delivery dates are at the request of the Customer per Section 3 and 5 of these provisions. 5.8 From November 1 through the end of the Contract term, in the event of predicted or existing severe bad weather conditions, Contractors must begin providing product and service with 24 hours notification, seven days a week, 24 hours per day. 5.9 Holiday Schedule. In the event of predicted or existing severe bad weather conditions during an official State holiday— New Year's Day, Martin Luther King Day, Veterans Day, Thanksgiving Day, Day After Thanksgiving or Christmas Day — the Contractor must provide product and service with 24 hours notification. The Contractor will provide agencies with a list of emergency personnel that can be contacted and who will be responsible for coordinating deliveries during holidays. Page 9 of 16 100 Contract Release: S-763(5) 5.10 Delivery Times: All deliveries shall be made to the destination requested by the Customer and in the sequence specified on the order between the hours of 8:00 AM and 3:30 P.M., excluding Saturdays, Sundays, and holidays, unless other arrangements are agreed to, in writing, by authorized representatives of the Contractor and Customer. 5.11 Delivery Rate. The Contractor must confirm the delivery rate with the Customer prior to the beginning delivery. Unless other arrangements are agreed to in writing by authorized representatives of the parties, deliveries, once begun at a given delivery location covered on a delivery request, shall be continuous at a rate averaging three trucks per hour with no more than 90 minutes between any two deliveries to that delivery location unless mutually agreed to by the Contractor and the Customer. Deliveries begun to a given location but not completed within one workday shall resume at a rate averaging three trucks per hour with no more than 90 minutes between any two deliveries the following workday(s) until completed. 5.12 For the purposes of this solicitation, the term Business Day means any day other than Saturday, Sunday and any day which is a legal holiday in the State of Minnesota, see Section 5.4. 6. LIQUIDATED DAMAGES. Unless the Contractor receives written approval for an alternative delivery schedule from the customer, liquidated damages will be assessed at the discretion of the Customer as outlined in this section and per the requirements of Section 3 and Section 5 for Delivery Requirements and Section 3 Order Processing. For the purposes of this section, the following definitions are applicable: 6.1 Truck Load. The total tons of product delivered per truck load to the delivery location, i.e., estimated 20 to 25 tons per truck. 6.2 Delivery Order. The total tons ordered for a specific delivery date, i.e., 100 tons (five truckloads) due on (customer's due date). Foreign Material. Product shall be free from any foreign material at the point of delivery. Residue from truck beds such as coke, grain, coal, gravel, etc., or other materials not germane to sodium chloride may be cause for rejection. Any residue materials used in the production of the product, or any oversized materials found in the delivery order may be cause for rejection. Liquidated damages may be assessed from the day of rejection until replacement material is delivered. 6.3 Delivery Schedule. For the purpose of determining day one of a purchase order, the following rule will apply: Purchase orders received on a specific day; the following day will be considered as the first working day of that order. Day Order Received Monday Tuesday Wednesday Thursday Friday First Working Day Tuesday Wednesday Thursday Friday Monday If the Contractor fails to deliver the order according to the required delivery date(s) on the purchase order or order form from the customer or alternate delivery date(s) as established as addressed in Section 3 and Section 5, Liquidated Damages on the undelivered quantities of the order will be assessed at the discretion of the Customer. To apply liquidated damages, the Customer must have documentation of the alternative agreed upon delivery date. 6.4 Liquidated damages will be of $1.00 per ton, per business day, on the undelivered portion of the order. Page 10 of 16 101 Contract Release: S-763(5) The customer may apply liquidated damages until the Contractor has satisfied the obligations of the purchase order. 7. INVOICES. The Contractor will be required to submit invoices to MnDOT Districts that have single line billing — the combined cost of the salt and the cost for delivery as submitted in the Price Schedule and as contracted, unless an adjustment is made for an increase or decrease in the diesel fuel rate. In no event, including a change in transportation charges, will the total price submitted on an invoice for payment exceed the price offered by the Contractor. Failure to pay an invoice within 30 days due to pricing errors by the Contractor will not require an agency to pay an interest charge for late payments. When an Alternative/Modified Delivery Location has been requested and agreed to by the Customer and Contractor the invoiced amount must reflect the modified material and/or delivery price per Section 4.5. In all cases, for both MnDOT and CPV Members, any credits or debits for fuel surcharges, late deliveries, liquidated damages, etc., must be detailed and clearly shown on the invoice as a credit or debit, whichever is applicable, as a separate line item. 8. DEDUCTIONS OR LIQUIDATED DAMAGES NOTIFICATIONS. 8.1 The Customer should notify the Contractor as soon as possible of receipt of material out of specification or late delivery to assist the Contractor to take corrective action. 8.2 The Customer should notify the Contractor as soon as possible of the intent to take deductions or liquidated damages. The notice to the Contractor by the Customer of the intent take deductions or liquidated damages against the delivery (invoice) should be no later than 5 business days from the date of the delivery of the material. 9. FUEL SURCHARGES. 9.1 Fuel surcharges will only be allowed if the price per gallon of diesel fuel INCREASES more than 25 percent from the diesel fuel prices posted on April 17, 2023. The Midwest Region's retail prices were $4.027/Gallon for diesel and $3.527/Gallon of regular gas on April 17, 2023. These are the established prices which will be used for future fuel surcharge calculations. 9.1.1 For the 2024-2025 season, the fuel pricing used to establish fuel surcharges is amended to Midwest Region's retail prices at $3.965/Gallon for diesel and $3.465/Gallon of regular gas on April 15, 2024. 9.2 The fuel surcharge may only be applied to the delivery cost per ton from the Contractor's Minnesota depot to the Customer's location as offered on the Exhibit D: Price Schedule, not the product cost and transportation cost to the Minnesota depot. 9.3 The index used for the Contract will be the Gasoline and Diesel Fuel Update for the Midwest Region as posted by the Energy Information Administration at: https://www.eia.gov/petroleum/gasdiesel/. Once the fuel price returns to 25 percent or less of the fuel price on the day the Solicitation is due, surcharges may no longer be charged. 9.4 In the event the contract term is extended, the diesel fuel price will be set on April 15th of each succeeding contract year. 9.5 All requests for fuel surcharges must be submitted in writing and approved in writing by the AMS before they are put into effect. The State will determine the percent increase per ton that will be allowed on the delivery cost. No fuel surcharges will be effective until approved by the AMS. If fuel surcharges are authorized by the AMS, it must be indicated as a separate line item on the invoice. Page 11 of 16 102 Contract Release: S-763(5) 9.6 Fuel surcharges may only be applied to the freight portion of the total delivered price and may not be applied against the product cost. The Contractor must show the original freight portion on the invoice so the Customer can calculate the percentage of surcharge that will be applied and confirm its accuracy. 9.7 Example Surcharge Calculation Standard Set Price: Diesel fuel prices set April 15, 2023 $4.00/Gallon Actual Price: Diesel fuel prices on November 20, 2023 $5.20/Gallon Contracted Road Salt Delivered Price: $50/Ton for Road Salt plus $25/Ton Delivery Charge = $75.00/Ton Fuel Surcharge Calculation: (Actual Price/Standard Set Price) * Delivery Charge $5.20/Gallon divided by $4/Gallon = 30% $25/Ton Delivery Charge times 30% = $7.50/Ton Fuel Surcharge 9.8 Because of the volatility of the oil industry, if the price per gallon of diesel fuel DECREASES more than 25 percent from the diesel fuel prices posted on May 15, 2023, the Contractor must pass the savings on to the Customer at the same percentage rate as approved by the AMS. The decrease will be in the form of a credit per ton and may only be applied to the delivery cost per ton from the Contractor's Minnesota depot to the Customer's location as offered on the Exhibit D: Price Schedule, not the product cost and transportation cost to the Minnesota depot. The Contractor must show the original freight portion on the invoice so the Customer can calculate the percentage of decrease that will be applied per ton and confirm its accuracy. 10. MATERIAL DATA SHEETS. The Contractor must submit a material data sheet with each delivery if requested by a MnDOT District or a CPV Member. 11. QUALITY CONTROL AND SAFETY PROCEDURES. If requested, the Contractor will provide the State a copy of its Quality Control and Safety Procedures as it relates to product production, handling, transportation, and storage. There will be no additional cost to the State if this information is requested. 12. SPECIAL SERVICES. If the Customer is unable to take its 80% of the required salt amount before the end of the Contract term, and if mutually agreed by the purchasing entity and the Contractor, the Contractor may store the salt at its depot after the Contract term has lapsed. The revised delivery date for the product will be mutually agreed to by the purchasing entity and the Contractor. The purchasing entity and the Contractor will confirm its agreement in writing. No Contract amendment will be issued by the State. The State Customer will encumber funds to cover any additional expenses, if required, and will issue a separate purchase order for the service. The product delivered must meet all specifications called for in the original Contract. The Contractor is not required to provide this special service. This provision does not negate the purchaser's responsibility to take 80% of the salt amount originally contracted. 12.1 Storage Fee. The Price Schedules includes a column for Storage Fees. Contractors have offered a maximum Storage fee amount, per month, for each location they are contracting. If no amount is entered, the Storage Fee will be $0. 12.2 Vendor Storage Site. The Contractor must store its product at a site that meets or exceeds all State of Minnesota requirements and regulations. The site must be available for inspection by Sate authorized representatives upon request. PRODUCT SPECIFICATION SECTION 1. REGULAR ROAD SALT PRODUCT SPECIFICATIONS. Road salt furnished under this Contract shall meet or exceed the requirements as outlined in the following specifications. Page 12 of 16 103 Contract Release: S-763(5) 1.1. REGULAR ROAD SALT - ASTM-D-632, TYPE I, GRADE I- MODIFIED PER MnDOT SPEC. 3910, 2020 Edition as modified below: 3910.1 Scope. This Specification covers rock salt (sodium chloride) to be used for road purposes. 3910.2 Requirements. The quality and grading of the salt shall conform to ASTM-D-632 for Type 1, Grade 1 material. At the time of delivery to the Customer, the salt shall not contain more than 2.0 percent moisture, and it shall be free of lumps, aggregations, foreign matter and be free flowing. The salt shall always maintain free flowing characteristics. The sodium chloride content shall be a minimum of 95.0%. 3910.3 Samples and Testing. 3910.3.1. Samples. The State or CPV Members reserve the right to sample and inspect the salt at the Contractor's unloading and storage facilities or at the point of delivery. Sampling shall be done according to ASTM D 632 modified as described in MnDOT Laboratory Manual Section 2101.1 www.dot.state.mn.us/materials/labmanual.html. 3910.3.2. Testing. Moisture testing shall be done according to the Rock Salt Microwave Rapid Moisture Test, Rock Salt Moisture Balance Rapid Moisture Test or Rock Salt Oven Moisture Test (ASTM E 534 modified) as described in the MnDOT Laboratory Manual Sections 2101, 2102 or 2103 respectively. www.dot.state.mn.us/materials/labmanual.html. Sieve Analysis shall be done according to the Rock Salt Gradation procedure as described in the MnDOT Laboratory Manual Section 2104. The chemical analysis for determination of sodium chloride content shall be made in accordance with the Sodium Chloride Content by Silver Nitrate Titration (AASHTO T-260-6 modified) as described in the MnDOT Laboratory Manual Section 2105. 2. TREATED SALT PRODUCT SPECIFICATIONS. Any product offered must be on the Minnesota Department of Transportation (MnDOT) Approved Products List (APL) for Winter Chemicals. For definition purposes, for this Request for Proposal only, TREATED SALT is defined as follows: 2.1. TREATED SALT is a mixture of Regular Road Salt, ASTM-D-632 Type I, Grade I, - Modified per MnDOT Specification 3910 and as modified in Section 1.1 above, blended with a corrosion inhibited magnesium chloride product for anti -icing or deicing and listed on the MnDOT Winter Chemical APL category "Corrosion Inhibited Sodium Chloride (solid)/Treated Salt". A product that has been blended with the Regular Road Salt specified above and a corrosion inhibited magnesium chloride product that is listed on the MnDOT Winter Chemical APL category "Rock Salt Treating Additive (24% min MgCl2)" will be considered pending a successful field trial evaluation by the MnDOT. The magnesium chloride -based product will also contain an agricultural processing residue or an alternative MnDOT approved agent that will depress the effective working temperature and decrease corrosiveness of the overall compound as well as prevent leaching of the treating solution. Agriculture Processing Residue Products (APRP) is the concentrated liquid residues from the processing of grains and other agricultural products. They are derived from the processing of agricultural raw materials, primarily corn and beets. The liquid residues are typically combined with chloride solutions and/or rock salt and the resulting mixture is applied to road surfaces and bridge decks for the purpose of anti -icing or de-icing. Treated Salt must be blended by the Contractor prior to shipment to ordering agencies location(s). 2.2. Anti -caking agents are not required in regular road salt that is used for TREATED SALT. Page 13 of 16 104 Contract Release: S-763(5) 2.3. Sodium Chloride. The resulting treated salt shall be not less than 91.2% Sodium chloride. The chemical analysis for determination of sodium chloride content shall be made in accordance with the Sodium Chloride Content by Silver Nitrate Titration (AASHTO T-260-6 modified) as described in the MnDOT Laboratory Manual Section 2105 www.dot.state.mn.us/materials/labmanual.html. 2.4. Application Rate. There are two categories of product being solicited with different application rates as follows: 2.4.1. Category 1, One (1) ton of salt mixed with six (6) gallons, plus or minus (+/-) one-half (1/2) gallon of corrosion inhibited magnesium chloride product. The application rate shall be tested in accordance with the Treated Salt — Liquid Treating Agent Content method as described in the MnDOT Laboratory Manual Section 2106. www.dot.state.mn.us/materials/labmanual.html. 2.4.2. Category 2; One (1) ton of salt mixed with eight and one-half (8.5) gallons, plus or minus (+/-) one- half (1/2) gallon of corrosion inhibited magnesium chloride product. The application rate shall be tested in accordance with the Treated Salt — Liquid Treating Agent Content method as described in the MnDOT Laboratory Manual Section 2106. www.dot.state.mn.us/materials/labmanual.html. 2.5. Leaching. Properly stored product (covered or inside) shall not have objectionable leaching or separation of components to the extent that such condition produces adverse effects in the handling or usage of the product or routine maintenance of the storage facility. 2.6. Moisture Content. At the time of delivery to the Customer, the moisture content shall be: 2.6.1. Category 1, less than 3.0% when tested by the Rock Salt Microwave Rapid Moisture Test, Rock Salt Moisture Balance Rapid Moisture Test or Rock Salt Oven Moisture Test (ASTM E 534 modified) as described in the MnDOT Laboratory Manual Sections 2101, 2101 or 2103 respectively. www.dot.state.mn.us/materials/labmanual.html. 2.6.2. Category 2, less than 4.0% when tested by the Rock Salt Microwave Rapid Moisture Test, Rock Salt Moisture Balance Rapid Moisture Test or Rock Salt Oven Moisture Test (ASTM E 534 modified) as described in the MnDOT Laboratory Manual Sections 2101, 2101 or 2103 respectively. www.dot.state.mn.us/materials/labmanual.html. 2.7. PRE-TREATMENT AGENT. The liquid de-icer that is applied to the Regular Road Salt defined above must meet the following specification: 2.7.1. Pre-treatment Agent. A corrosion inhibited pre -treating agent with a minimum of 24% magnesium chloride. A MnDOT approved corrosion inhibited/treated salt blend that has been treated with magnesium chloride -based product will satisfy the pre-treatment agent requirement. 2.7.2. Corrosivity. The pre -treating agent shall have a corrosion value at least 70% less than that of Sodium Chloride when tested by the National Association of Corrosion Engineers Standard TM - 01 -69 as modified by the Clear Roads Consortium/Pacific Northwest Snowfighters Association. 2.7.3. Color. Products shall be dyed blue or green as part of the original manufacturer's production process. Acceptance of undyed product will be at the discretion of the ordering agency. 3. TESTING. At its discretion, MnDOT and CPV members may test and inspect material from the Contractor's stockpile prior to delivery. MnDOT and CPV members may also test and inspect material at the Contractor's stockpile when so requested by the Contractor on material to be delivered to the various delivery points covered in this Solicitation. MnDOT and CPV members will make every practical effort to meet this request. If not practical, or if insufficient lead time prevents pre -inspection, the salt will be inspected at the delivery point. MnDOT and CPV members may refuse future deliveries from any vendor stockpile from which samples testing greater than 2 % for Regular Road Salt; 3 % or 4% moisture for Category 1 Treated Road Salt or Category 2 Treated Road Salt respectively. All salt delivered to the various delivery points is subject to final inspection, as delivered, at the discretion of the Page 14 of 16 105 Contract Release: S-763(5) Agency field personnel. When inspected at the delivery point, the salt shall conform to the product specifications as outlined in the Solicitation, subject to the following modifications: 3.1. When more than 20 tons are delivered to a specified location on a single purchase order, a tolerance in gradation of 5 percentage points will be permitted for sieves #4, #8, and #30 on the average gradation of the loads delivered. 3.2. Any delivered salt that fails to meet specification requirements may be rejected at the Customer's discretion. If the urgency of circumstances makes it necessary, the State may accept the salt and make payment in accordance with the schedule of deductions listed below. 3.3. Salt that is rejected and not used shall be removed by the Contractor and immediately replaced with product that conforms to specification at no additional cost to the Customer. 3.4. In the event salt is used that fails to meet specification requirements, a deduction will be made from the Contract price as follows: 3.4.1. Chemical Composition. For each 0.1 percentage point deficiency in sodium chloride content, a deduction of one percent (1%) of the Contract price per ton will be made, except if the sodium chloride content is found to be less than 85 percent, at which time the salt may be rejected. Salt that is rejected and not used shall be removed by the Contractor, at their expense, and immediately replaced with product that conforms to specification at no additional cost to the Customer. 3.4.2. Gradation. For each one (1) percentage point outside the limits permitted by the specification for each sieve size, a deduction of one percent (1%) will be made from the Contract price. 3.4.3. Condition. For salt received in a lumpy condition which requires reprocessing by the agency in order to make it usable, a deduction in payment will be made in an amount equal to the cost of the reprocessing work done by the Customer in order to put the salt into a usable condition. All actual costs will be itemized and submitted to the Contractor with the invoice which has the deduction taken 3.4.4. Moisture Content. For purposes of deductions, the following chart and provisions will apply: Regular Road Salt Moisture Deduction Table Moisture Deduction % Moisture Deduction % Moisture Deduction 2.01-2.09 10% 2.5-2.59 25% 3.0-3.09 40% 2.1-2.19 13% 2.6-2.69 28% 3.1-3.19 43% 2.2-2.29 16% 2.7-2.79 31% 3.2-3.29 46% 2.3-2.39 19% 2.8-2.89 34% 3.3-3.39 49% 2.4-2.49 22% 2.9-2.99 37% 3.4 & UP 50% 3.4.5. Treated Rock Salt moisture: The maximum allowable moisture content for Treated rock salt shall not exceed 3% for Category 1 and 4% for Category 2 according to Section 2.6. Moisture Deductions for Treated rock salt shall be according to the regular rock salt table in Section 4.4.4 modified to add 1 % for Category 1 and 2% for Category 2 to each % Moisture range. 3.4.6. If the Contractor makes salt deliveries totaling 200 tons or more of salt to a contracted Page 15 of 16 106 Contract Release: S-763(5) maintenance area with an average moisture content for all loads which fail moisture content requirements exceeding 3.0 for Regular Road Salt; 4.0 percent for Category 1 Treated Salt or 5.0 percent for Category 2 Treated Salt, that maintenance area may request the Department of Administration (Admin) to cancel the Contractor's Contract award for the area. If Admin does cancel the Contractor's award for that area, the next interested low responsive vendor will be awarded the Contract for the affected delivery points. If there are any cost differences for subsequent purchases (between the first and next interested low responder), the State will charge the full increase in cost and handling, if any, to the defaulting Contractor. If product is ordered on the open market and there is a cost difference between the actual price and the defaulting Contractor's price, the State will charge all actual costs, if any, to the defaulting Contractor. 3.4.7. All deductions will be made from payments due to the Contractor. If there is an outstanding balance due from the Contractor, and there are no open invoices available to make deductions from, the Contractor will issue a check to the customer for the balance due. The Contractor may be ineligible to receive awards on any future Solicitations until reimbursement and reconciliation has been completed for liquidated damages or other costs incurred by the State due to the Contractor's non-performance. If loads from a specific stockpile are being delivered to the Customer that consistently exceed moisture specification requirements, the Contractor will devise alternate testing methods at the Customer's discretion. 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MII1111111M' II11I1 Ii11111111111 11111111111 1111111 II {{{{{MIME i{{I 1111{{{ {{I{{ { i _ WI"LAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.1 September 16, 2025 Acceptance of Minnesota Department of Public Safety's Toward Zero Deaths Enforcement Program Grant Award Andrea Harrell, Grants and Special Projects Coordinator Chelsea Petersen, Assistant City Administrator Action to be considered: Adopt Resolution R2025-106, accepting Minnesota Department of Public Safety's (MN DPS) Toward Zero Deaths (TZD) grant award and authorizing the City Administrator to execute the necessary contracts and agreements applicable to accept this award. Motion Type: Simple Majority Background: At its August 6, 2024 meeting, Council approved the application to the MN DPS TZD grant via Resolution R2025-087. The MN DPS TZD grant provides funding to Scott County law enforcement agencies, allowing those agencies to pay for all officer overtime while conducting traffic safety initiatives. The City has received this grant with Council approval for the past several years. Recommendation: Adopt Resolution R2025-106. Budget Impact: The grant requires a 0% match. Attachments: Resolution R2025-106 AWARD.docx Resolution R2025-087.pdf 115 RESOLUTION R2025-106 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE MINNESOTA DEPARTMENT OF PUBLIC SAFETY'S TOWARD ZERO DEATHS GRANT AWARD AGREEMENT WHEREAS, the City of Shakopee applied to the Minnesota Department of Public Safety's Toward Zero Deaths grant, previously approved via Resolution R2025-087 on 6th day of August 2025, and WHEREAS, the grant award is to provide funding for officer overtime while conducting traffic safety initiatives focusing on reducing impaired driving, speed, and traffic accidents while increasing seat belt usage, and WHEREAS, the City of Shakopee was awarded the Toward Zero Deaths grant for $137,800, and WHEREAS, the City of Shakopee recognized a 0% match was required, and WHEREAS, the City has served as a fiscal agent for the Toward Zero Deaths Traffic Enforcement Grant for the past several years, and WHEREAS, the City, in the capacity of fiscal agent, will enter into a cooperative agreement with the Minnesota Department of Public Safety and the Office of Traffic Safety to administer this grant award that will fund overtime efforts of multiple agencies in Scott County. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: the City of Shakopee recognizes it has been awarded a grant by the Minnesota Department of Public Safety, agrees to accept the grant award and grant agreement for the above -referenced project, and authorizes the City Administrator to execute the necessary contracts and agreements applicable to accept this award. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 16th day of September 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: Richard Parsons City Clerk 116 Richard Parsons City Clerk RESOLUTION R2025-087 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT A MINNESOTA DEPARTMENT OF PUBLIC SAFETY'S TOWARD ZERO DEATHS ENFORCEMENT GRANT PROGRAM APPLICATION WHEREAS, the City of Shakopee supports the application made to the Minnesota Department of Public Safety's Toward Zero Deaths Traffic Enforcement grant program, and WHEREAS, the application is to obtain funding to provide officer overtime while conducting traffic safety initiatives focusing on reducing impaired driving, speeding, and traffic accidents while increasing seat belt usage, and WHEREAS, each year the City enters into a cooperative agreement to continue to participate when funding is awarded; and WHEREAS, the City serves as the fiscal agent for the current Toward Zero Deaths Traffic Enforcement grant and has served in that capacity for several years, and WHEREAS, if awarded, in the capacity of the fiscal agent, the City will enter into a cooperative agreement with the Minnesota Department of Public Safety and Office of Traffic Safety to administer grant funds that fund the overtime efforts of multiple agencies in Scott County. WHEREAS, the City of Shakopee recognizes a 0% match is required. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee is awarded a grant by the Minnesota Department of Public Safety, the City of Shakopee agrees to accept the grant award and may enter into an agreement with Minnesota Department of Public Safety for the above -referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 6th day of August 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: 117 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.m September 16, 2025 Acceptance of Minnesota Department of Public Safety's DWI/Traffic Safety Officer Program Grant Award Andrea Harrell, Grants and Special Projects Coordinator Chelsea Petersen, Assistant City Administrator Action to be considered: Adopt Resolution R2025-107, 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 accept this award. Motion Type: Simple Majority Background: At its August 6, 2025 meeting, Council approved the application to the MN DPS DWI/TSO grant via Resolution R2025-086. The MN DPS's DWI/TSO program awards funding to law enforcement agencies to hire an officer to work during peak nights and times when data indicates impaired driving will most likely occur. While primarily seeking to detect and interdict impaired drivers, the DWI/TS Officer will also focus on the dangerous driving behaviors of speeding, distracted driving, and occupant protection. Recommendation: Adopt Resolution R2025-107. Budget Impact: This grant requires a 0% local match. Attachments: Resolution R2025-107 AWARD.docx Resolution R2025-086.pdf 118 RESOLUTION R2025-107 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE MINNESOTA DEPARTMENT OF PUBLIC SAFETY'S DWI/TRAFFIC SAFETY OFFICER GRANT AWARD AGREEMENT WHEREAS, the City of Shakopee applied to the Minnesota Department of Public Safety's DWI/Traffic Safety Officer grant, previously approved via Resolution R2025-086 on 6th day of August 2025, and WHEREAS, the grant award is to obtain funding to continue the employment of the DWI/Traffic Safety Officer position for one year, and WHEREAS, the City of Shakopee was awarded the DWI/Traffic Safety Officer grant for $149,978.99, and WHEREAS, the City of Shakopee recognized a 0% match was required, however, grant administration costs, vehicle mileage costs, and/or agency expenses incurred will be provided as a match. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: the City of Shakopee recognizes it has been awarded a grant by the Minnesota Department of Public Safety, agrees to accept the grant award and grant agreement for the above -referenced project, and authorizes the City Administrator to execute the necessary contracts and agreements applicable to accept this award. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 16th day of September 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 119 RESOLUTION R2025-086 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT MINNESOTA DEPARTMENT OF PUBLIC SAFETY'S DWI/TRAFFIC SAFETY OFFICER PROGRAM GRANT APPLICATION WHEREAS, the City of Shakopee supports the application to the Minnesota Department of Public Safety's DWI/Traffic Safety Officer program grant. WHEREAS, the application is to obtain funding to continue the employment of the DWI/Traffic Safety Officer position for one year, and WHEREAS, the City of Shakopee recognizes a 0% match is required. However, vehicle mileage costs, and/or agency expenses will be incurred and provided as a match. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee is awarded a grant by MN Department of Safety, the City of Shakopee agrees to accept the grant award and may enter into an agreement with MN Department of Safety for the above -referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 6t" day of August 2025. --'k14`)4 Matt Lehman, Mayor of the City of Shakopee ATTEST: Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 120 SHAKOPEE Shakopee City Council 5.n September 16, 2025 Agenda Item: Approval of the September 2, 2025 City Council Minutes Prepared by: Rick Parsons Reviewed by: Action to be considered: Approve the September 2, 2025 City Council minutes. Motion Type: Simple Majority Background: N/A Recommendation: Approve the September 2, 2025 City Council minutes. Budget Impact: N/A Attachments: Minutes from September 2, 2025 121 9/12/25, 8:11 AM City Council SHAKOPEE City Council City Hall 485 Gorman Street Shakopee, MN, 55379 Tuesday, September 2, 2025 7:00 p.m. 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 PRESENT: Mayor Lehman, Council Member Contreras, Council Member Whiting, Council Member DuLaney, and Council Member Lara ABSENT: None. ALSO PRESENT: None. 3) Pledge of Allegiance 4) Approval of Agenda Council Member Contreras made a motion to approve the agenda, second by Council Member DuLaney and the motion passed. 5 - 0 5) Consent Agenda 5.a) 2025 Budget Amendments https://shakopeemn.granicus.com/MinutesViewer.php?clip_id=165&doc_id=64e91161-8e4a-11 f0 -a766 -005056a89546 122 1/3 9/12/25, 8:11 AM City Council 5.b) Amend Purchasing Policy 5.c) Approval of the 2025-2026 Shakopee Youth Hockey Concession Agreement 5.d) Approval of a Location agreement with Mendota Valley Amusement for the Ice Arena to operate ATM, bulk vending and redemption games. 5.e) Appointment of Interim Fire Chief Joe Simon as Fire Chief 5.f) Purchase two 2026 Utility Police Interceptor's for the Police Department and declare existing vehicles as surplus. 5.g) Declare Forfeited Vehicles as Surplus Property 5.h) Approve the master fiber agreement between the City of Shakopee and Scott County 5.i) Approve plans and authorize bidding for the Arbor Bluff Stream Stabilization Project 5.j) Approve a Contract with BKJ Land Co. II, dba BKJ Excavating, for the Weinandt Acres Drainage Improvement Project 5.k) Approval of the August 19, 2025 City Council Minutes 5.l) Ice Arena School District locker room upgrades. 5.m) Ordinance O2025-020 Amending City Code Section 32.20 Related to the Planning Commission and Repealing Section 32.23 of City Code related to the Parks and Recreation Advisory Board. Council Member Lara made a motion to approve the consent agenda, second by Council Member Contreras and the motion passed. 5 - 0 6) Public Comment 7) Business removed from consent agenda 8) Public Hearings 8.a) Public Hearing for the 2025 Full Depth Pavement Reconstruction Project Council Member Whiting made a motion to open public hearing, second by Council Member Contreras and the motion passed. 5 - 0 Council Member Lara made a motion to close public hearing, second by Council Member Contreras and the motion passed. 5 - 0 https://shakopeemn.granicus.com/MinutesViewer.php?clip_Id=165&doc_id=64e91161-8e4a-11 f0 -a766 -005056a89546 123 2/3 9/12/25, 8:11 AM City Council Council Member Whiting made a motion to approve Resolution R2025- 095, adopting assessments for the 2025 Full Depth Pavement Reconstruction Project, CIF -25-001., second by Council Member DuLaney and the motion passed. 5 - 0 8.b) Hearing for Texas Roadhouse Holdings LLC Regarding Liquor Violations Council Member Whiting made a motion to open public hearing, second by Council Member Contreras and the motion passed. 5 - 0 Council Member Whiting made a motion to close public hearing, second by Council Member DuLaney and the motion passed. 5 - 0 Council Member Contreras made a motion to approve the imposition of a $1,500 fine and a consecutive five-day liquor license suspension, to take place in 2025 with dates set by city staff and which include a Monday, for Texas Roadhouse Holdings LLC, dba Texas Roadhouse, second by Council Member DuLaney and the motion passed. 5 - 0 9) Recess for Economic Development Authority Meeting Council Member Lara made a motion to adjourn the Economic Development Authority Meeting, second by Council Member Contreras and the motion passed. 5 - 0 10) Reconvene 11) Reports 11.a) City Bill List 11.b) News and Announcements 12) Other Business 13) Adjourn to September 16, 2025 at 7:00 pm Council Member Lara made a motion to adjourn to September 16, 2025 at 7:00 pm, second by Council Member Contreras and the motion passed. 5 - 0 124 https://shakopeemn.g ranicus.com/MinutesViewer.php?clip_id=165&doc_id=64e91161-8e4a-11 f0 -a766 -005056a89546 WI"LAI SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.o September 16, 2025 Approve a Budget Amendment for the CSAH 101 and Shenandoah Drive Intersection Improvements Alex Jordan, City Engineer Action to be considered: Approve a budget amendment in the amount of $200,000 for the CSAH 101/Shenandoah Drive Intersection Improvements Motion Type: Simple Majority Background: At its October 3, 2023 meeting, the City Council awarded a contract in the amount of $1,174,728.07 to Max Steininger, Inc. for construction of the CSAH 101 and Shenandoah Drive Traffic Signal Improvements, CIF -23-016. The total estimated project costs at the time of contract award was $1,862,828.07, which included construction, easement acquisition, archaeological services, engineering, Union Pacific engineering and construction services. Construction began in 2024 for the improvements. The majority of the construction was completed by the anticipated completion date in 2024, however UP Rail has yet to complete their interconnected signal work for the necessary emergency vehicle preemption (EVP) system, which is required for the railroad crossing located on Shenandoah Drive, just south of CSAH 101. This has caused significant schedule delays, requiring revisions to the project staging, multiple unplanned mobilizations by the City's contractor and its subcontractors and intermediate striping and signage as the signal remains un-operational until the interconnect is complete. UP Railway's delay along with unplanned design changes, some of which were requested by UP Rail, Shakopee Public Utilities (SPU) and Scott County during construction, have caused the city to incur additional costs to construct and deliver the project. These additional project elements that have increase the overall costs include: • Consultant services for construction inspection, administration and archaeological services • Interim striping and signage for winter suspension and intermediate intersection traffic control 125 • Expanded trail and pavement replacement on the north roadway connection to the Landing • Restoration due to SPU relocation and draintile installation outside of project limits • Multiple unplanned mobilizations by contractor and subcontractors • Conduits requested by SPU (reimbursed to City) Construction is anticipated to be completed by mid -October. Recommendation: Approve the budget amendment Budget Impact: The total requested budget amendment is $200,000, increasing the overall project cost to $2,062,828.07. The project is funded by the Canterbury Tax Increment Financing funds. Cost saving realized with the Eagle Creek Boulevard and Vierling Drive roundabout improvements are sufficient to cover the overage of the budget amendment. Attachments: 126 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.p September 16, 2025 Sanitary Sewer Manhole Repair. Jamie Theis, Street Supervisor Action to be considered: Authorize the repair of 3 sanitary sewer manhole structures. Motion Type: Simple Majority Background: In 2005, City Council approved a formal policy for the inspection and maintenance of the sanitary sewer system. Public Works crews have identified 3 sanitary sewer manhole structures needing to be repaired and sealed. Bid requests were sent to multiple contractors and R & H Painting, LLC dba Hiperline has submitted the only bid of $29,243.91 (See Attachment). Hiperline has performed quality work for the us in the past. Recommendation: Authorize the repair of 3 sanitary sewer manhole structures by R & H Painting, LLC. Budget Impact: The work is budgeted under the Sanitary Sewer General Fund. Attachments: Quotation - 2025 Internal Sanitary Manhole, Casting & Ring Sealing.pdf RFQ_2025 Internal Manhole Casting Ring Sealing.doc 127 QUOTATION FORM 2025 Internal Sanitary Manhole, Casting & Ring Sealing COMPANY NAME: R & H Painting, LLC dba Hiperline ADDRESS: 145 Field Crest Blvd NW Cokato, MN TELEPHONE: 320-286-2471 QUOTATIONS ARE DUE BY 11:00 A.M., LOCAL TIME, SEPTEMBER 12, 2025 To: Logan LaCourse, Street and Utilities Foreman 400 Gorman Street Shakopee, MN 55379 Email: llacourse@ShakopeeMN.gov ZIP 55321 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 2025 Internal Manhole Casting & Ring Sealing 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 2025 Internal Sanitary Manhole Casting &.Ring Sealing September 2025 Page 1 of 2 128 NO. DESCRIPTION QTY UNIT UNIT PRICE EXTENDED AMOUNT I. INTERNAL MANHOLE,. CASTING AND RINGS SEALING 3 EACH $9,747.97 $29,243.91 Total Bid: The undersigned agrees as follows: $ 29,243.91 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 willenter 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: R & H Painting, LLC dba Hiperline By: (Signature of Bidder) Title: Member Grant Raisanen (Name) 145 Field Crest Blvd NW (Address) Cokato, MN 55321 (City and State) Date 9/5/2025 City of Shakopee — Quotation Form 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 Page 2 of 2 129 SHAKOPEE Public Works Department City of Shakopee Phone: 952-233-9550 FAX: 952-233-3807 REQUEST FOR QUOTATION 2025 Internal Sanitary Manhole, Casting & Ring Sealing DOCUMENT DATE: QUOTATIONS DUE BY: SUBSTANTIAL COMPLETION DATE: FINAL COMPLETION DATE: SEPTEMBER 2, 2025 SEPTEMBER 12, 2025 NOVEMBER 30, 2025 DECEMBER 30, 2025 130 Request for Quotation September 12, 2025 2025 Internal Sanitary Manhole, Casting & Ring Sealing SCOPE OF WORK The City of Shakopee is in the process of obtaining quotations to retain the services of a qualified contractor for the following work: • Furnishing all labor, materials, equipment, and incidentals required to rehabilitate existing manholes using a multi -layer, spray -applied lining system. The completed system shall: o Seal internal manhole rings and castings with a corrosion -resistant liner. o Restore deteriorated wall surfaces to original profiles. o Eliminate infiltration and exfiltration. o Provide a minimum 10 -year service warranty. This document and the included attachments provide information to the prospective contractors. Any questions or clarifications may be addressed by contacting Logan LaCourse, Street and Utilities Foreman for the City of Shakopee, at 612-249-1855. WORK SEQUENCE The Contractor shall perform his/her work in such a manner as to cause the least interference with adjoining property owners and the general public. The winning contractor shall have all contracts signed and approved insurance information delivered to Shakopee City Hall prior to starting work. Work on the project must be substantially complete by November 30, 2025. The bid items must be completed by the final completion date of December 30, 2025. SUBMISSION OF QUOTES Please submit only the Quotation Form (pages 1 thru 2) at this time. Proposals for 2025 Internal Sanitary Manhole, Casting & Ring Sealing shall be submitted upon the attached quotation form titled to: Logan LaCourse, Street and Utilities Foreman 400 Gorman Street Shakopee, MN 55379 Email: llacourse@ShakopeeMN.gov Quotes must be received via email or in person by September 12, 2025, at 11:00 a.m. 131 QUOTATION FORM 2025 Internal Sanitary Manhole, Casting & Ring Sealing COMPANY NAME: ADDRESS: TELEPHONE: QUOTATIONS ARE DUE BY 11:00 A.M., LOCAL TIME, SEPTEMBER 12, 2025 To: Logan LaCourse, Street and Utilities Foreman 400 Gorman Street Shakopee, MN 55379 Email: llacourse@ShakopeeMN.gov ZIP The undersigned, as bidder, hereby proposes and agrees to enter into a contract with the City of Shako all labor, materials, and equipment necessary to complete the 2025 Internal Manhole Casting & project, all in accordance with the plans and specifications prepared by the City of Shakopee accordance with the unit prices herewith. The final amounts of the contract shall be determined by multiplying the final measured quantities and actually furnished and installed in the manner described in the specifications, by the unit stated in form. The Contractor will not be entitled to any compensation on any items other than those listed on form. The bidder must bid each item. pee to supply Ring Sealing and in strict as authorized this proposal this proposal 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 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 Page 1 of 2 132 NO. DESCRIPTION QTY UNIT UNIT PRICE EXTENDED AMOUNT 1 INTERNAL MANHOLE, CASTING AND RINGS SEALING 3 EACH Total Bid: 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: (Signature of Bidder) Title: (Name) (Address) (City and State) Date City of Shakopee — Quotation Form 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 Page 2 of 2 133 CONTRACT TEMPLATE ONLY - to be signed by successful bidder THIS CONTRACT, made and entered into this day of , 2025 by and between , 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: 2025 Internal Sanitary Manhole Casting & Ring Sealing 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 2025 Internal Sanitary Manhole Casting & Ring Sealing for the City of Shakopee, Minnesota, in a workmanlike 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 insure 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 majeure. 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 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 Page 1 of 2 134 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. 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. 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 TEMPLATE ONLY - to be signed by successful bidder City of Shakopee — Contract 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 By Matt Lehman/Mayor By Bill Reynolds/City Administrator Page 2 of 2 135 GENERAL CONDITIONS 1. DOCUMENTS, DRAWINGS AND SPECIFICATIONS A. EXECUTION, CORRELATION AND INTENT OF DOCUMENTS Work shall be governed by all applicable Federal, State, and Local Laws, regulations, codes, and ordinances and the project plans and specifications. B. DRAWINGS AND SPECIFICATIONS The City of Shakopee (Owner), through the City Engineer (Engineer), shall furnish plans and specifications that represent the requirements of the work as far as practical to be performed under this project. Any work that may reasonably be inferred from the project plans and specifications as being required to produce the intended result shall be supplied whether or not it is specifically called for. Work, materials, or equipment described in words that so applied have a well known technical or trade meaning shall be deemed to refer to such recognized standards. C. INCLUSION OF OTHER SPECIFICATIONS, RULES AND REGULATIONS All work and material covered by these specifications must conform to the current respective requirements of the following documents unless specified otherwise within the Special Provisions: (1) City Ordinances of the City of Shakopee, Minnesota (2) State of Minnesota, Department of Transportation (MN/DOT), "Standard Specifications for Construction", 2018 Edition, including the most recent addenda and revisions (also referred to as Mn/DOT Specifications or Mn/DOT requirements). (3) Minnesota Manual on Uniform Traffic Control Devices (MMUTCD). Any conflict between items in the above, between themselves, or with these specifications must be submitted to the Engineer for adjustment, the prime object being to obtain the best quality installation possible. 2. INSURANCE Prior to the commencement of work, Certificates of all insurance required on a form approved by the City Clerk, signed by an authorized representative of the insurance carrier and stating that all provisions of the specified requirements are satisfied shall be provided by the Contractor. The CITY OF SHAKOPEE shall be named as an additional insured on all policies required under this section. A. Liability Insurance 1) Required insurance and amounts as follows: a. Worker's Compensation: State: Applicable Federal (e.g. Longshoreman's): Employer's Liability: Statutory Statutory $2,000,000 b. Contractor's Liability Insurance including completed operations and product liability City of Shakopee — RFQ GC 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 GC -Page 1 of 7 136 coverages and eliminate the exclusion with respect to property under the care, custody and control of the Contractor General Aggregate (Except Products — Completed Operations) Products — Completed (Operations Aggregate) Personal and Advertising Injury (Per Person/Organization) Each Occurance (Bodily Injury and Property Damage) Property Damage Liability Insurance will provide explosion, collapse and underground coverages where applicable Excess Liability General Aggregate Each Occurrence c. Automobile Liability: Or Bodily Injury Each Person Each Accident Property Damage Each Accident $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Combined Single Limit (Bodily Injury and Property Damage) $2,000,000 d. Policy must include a waiver of any or all Governmental Immunity and must indemnify and hold harmless the City and/or its agents and others as required. List project and work. 2) The policy shall be a standard form policy provided for by a carrier approved by the State of Minnesota and shall not contain any exclusions that will restrict coverage on any operations performed by this Contractor or any Subcontractor thereof. 3) The policy or policies shall afford Contractual Liability coverage to provide coverage for the Indemnification Agreement set out in Section 2.E. 4) It is a condition of the Contract that the policy or policies waive any or all governmental City of Shakopee — RFQ GC 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 GC -Page 2 of 7 137 immunity as a defense in any action brought against the insured or any other party to the Contract, up to policy limits. 5) The policy shall further provide insurance to cover all of the Contractor's operating exposures and the operation of vehicles. 6) Approval of the insurance by the City shall not in any way relieve or decrease the liability of the Contractor hereunder, and it is expressly understood that the City or the Engineer does not in any way represent that the above specified insurance or limits of liability are sufficient or adequate to protect the Contractor's interest or liabilities. 7) In the event of cancellation of any of the policies, the company issuing the Certificate of Insurance shall provide 30 days written notice to the City. Failure to do so shall impose obligation and/or liability upon the issuing company. Certificate of Insurance forms shall be drafted or altered to reflect these conditions. B. Notice of Cancellation or Non -Renewal The City shall be given at least thirty (30) days prior written notice of any cancellation, termination or material modification of the required insurance coverages, and the insurance policies required herein shall so provide. C. Deductibles All responsibility for payment of sums resulting from any deductible provision, corridor, or self - insured retention conditions of the policy or policies shall remain with the Contractor. D. Indemnification The Contractor shall indemnify and hold harmless the City, its elected officials, commissioners either elected or appointed, officers, agents and/or employees from and against all claims, damages, losses or expenses, including attorney fees, for which they may be held liable, arising out of or resulting from the assertion against them of any claims, debts or obligations resulting from or arising out of directly or indirectly, the performance of this Agreement by the Contractor, their employees, agents or subcontractors. 3. WORK COMPLETION, SUSPENSION & RESUMPTION STIPULATIONS A. COMPLETION The Contractor will be required to begin work within ten (10) days of Notice to Proceed and is to complete the installation on or before the completion date specified in the Special Provisions or the Proposal Form for the project. B. SUSPENSION AND RESUMPTION OF WORK The Engineer shall have the authority to suspend the Contractor's operations wholly or in part, for such period or periods of time as may deem necessary because of unsuitable weather or other conditions that the Engineer considers unfavorable for the prosecution of the work, or for such time as is necessary due to the failure on the part of the Contractor to carry out orders given or perform any or all of the provisions of the contract. Such "Suspension of Work Order" shall be in writing, and shall state the reason for such suspension, the effective date and time, and the City of Shakopee — RFQ GC 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 GC -Page 3 of 7 138 operation suspended. All work done by the Contractor contrary to such "Suspension of Work Order" shall be considered as unauthorized work and as having been done at the expense of the Contractor. 4. MEASUREMENT AND PAYMENTS A. MEASUREMENT OF QUANTITIES Work completed in an acceptable form as determined by the Engineer shall be measured by the units specified in the Proposal Form or otherwise described in the Special Provisions. B. PAYMENT Payment at the unit price provided in the Proposal Form shall be full compensation for all labor, materials, coordination and equipment necessary to furnish and install the item, unless otherwise specified in the Special Provisions. Final payment shall not act as a waiver of the right of the Owner to require fulfillment of all terms of the Contract. 5. CONTROL OF WORK AND MATERIALS A. HOURS OF OPERATION 1. No construction equipment shall be operated between 7:00 P.M. and 7:00 A.M. weekdays unless specifically authorized by the Engineer. 2. No work shall be done on Saturdays or Sundays unless special approval is granted by the Engineer. If authorized, working hours on weekends are 9:00 A.M. to 9:00 P.M. 3. The Contractor shall notify the Owner in advance of all times when staff are to work on the construction site. 4. Should work by the Owner or other special conditions require temporary suspension of the Contractor's activities, the Contractor shall comply and reschedule the work at no additional cost to the Owner. B. OWNER REPRESENTATIVE'S STATUS AND DECISIONS In carrying out any of the provisions of the contract, or in exercising any power or authority granted to the Contractor thereby, there shall be no personal liability upon the contracting officer or the authorized representatives, it being understood that in such matter they act as agents and representatives of the Owner. The Engineer shall have general supervision and direction of the work. The Engineer has authority to stop the work whenever such stoppage may be necessary to ensure the proper execution of the work. The Engineer shall also have the right, as the work progresses, to alter the plans or specified coordination of two or more concurrent contractors subject to the limits specified herein. C. CONTROL OF MATERIALS All materials furnished by the Contractor shall meet the requirements of these specifications. 1 INSPECTION AND ACCEPTANCE OF MATERIALS: Final inspection and acceptance of material will be made only at the site of the work. The Owner reserves the right to sample, City of Shakopee — RFQ GC 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 GC -Page 4 of 7 139 inspect, and test materials throughout the duration of the work, and to reject any materials that are found to be unsatisfactory at the time of use. 2 DEFECTIVE MATERIAL: All materials that do not conform to the requirements of these specifications shall be considered defective and will not be approved. All defective material must be removed from the construction area. Any portion of the work in which any defective material may have been used shall be considered as defective work. 3 DEFECTIVE WORK: All work and materials that do not conform to the requirements of the contract shall be considered as defective and will not be approved. When so ordered by the Engineer in writing, all defective work shall be remedied or repaired, or, if necessary, removed and replaced in an acceptable manner by the Contractor. If the Contractor fails or refuses to remedy or repair any defective work or materials or to remove and replace such work or materials, within the period specified in such written order, the Owner shall have the right, at its option: a) To take over and use such defective work by payment to the Contractor of an amount equal to the reasonable value of such work; or b) to cause such defective work to be remedied or repaired, or removed and replaced, and deduct the cost thereof from any monies due or that may become due the Contractor or require reimbursement therefore from the surety of the contract bond. When such defective work has been remedied or repaired, or removed and replaced by the Contractor, the Contractor will be credited with an amount equal to the value of the completed work based on the contract price or price therefore. If the Contractor continues to perform defective work, the City may declare the Contractor in default. D. PROSECUTION OF WORK NEAR PUBLIC UTILITIES PROPERTIES It shall be the Contractor's responsibility to obtain complete information of the existence and location of underground utilities that may be adjacent to the work. The Contractor shall be responsible for and shall preserve and protect all utilities that are above ground surface and below ground surface whether or not the approximate locations are shown in the plans. The Contractor shall assume full responsibility for reimbursing the owners thereof for any damage or injury to such utilities that may be caused by his/her operations. The Contractor shall at no time hinder or interfere with any person engaged in protecting or moving utility properties or in the operation of the utility. The Contractor shall give notice to the owners of all utilities at least 48 hours before starting any construction operations that will affect such properties. If, during the course of the Contractor's operations, he/she discovers utility properties, the existence of which was not known, the Contractor shall immediately notify the owner thereof and the Engineer. E. PROTECTION OF THE PUBLIC, THE WORK AND PROPERTY The Contractor shall operate in a safe and non -hazardous fashion, maintaining full compliance with OSHA standards and good work standards, complying with all the Federal, State and Municipal laws. City of Shakopee — RFQ GC 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 GC -Page 5 of 7 140 The Contractor shall continuously maintain adequate protection of all work from damage and take all reasonable precautions to protect the Owner's property from injury or loss arising in connection with this project. The Contractor shall make good any damage, injury or loss to his work or to the property of the Owner that results from lack of reasonable protective precautions, except such as may be caused by agents or employees of the Owner. The Contractor shall make adequate provisions to protect adjacent private and public property. The Contractor shall assume and shall be held liable for necessary equipment and personnel required to conform to these specifications. All cost related to protection of the public, the work and property shall be borne by the Contractor. The Contractor shall erect and maintain all signs and barricades required to conform with the Minnesota Manual on Uniform Traffic Control Devices (MMUTCD) prior to commencing any work within public streets, sidewalks, easements or right-of-way. The Contractor shall be responsible for installing adequate traffic control and safety devices to protect the public, including pedestrians and vehicular traffic. The Engineer shall have the authority to stop any work until the Contractor brings signing and barricades into conformance with MMUTCD. If the Contractor fails to act in a timely fashion to bring signing and barricades into conformance with MMUTCD or if emergency conditions require immediate action, the Engineer can install proper signing and barricades and charge the cost of such work to the Contractor. F. PROTECTION AND RESTORATION OF PROPERTY The Contractor shall not enter upon private property for any propose without obtaining permission. The Contractor shall notify, in writing, the owners of all corporate or private property that will be interfered with by the operations, advising them of the nature of the interference, and arranging with them for the protection of such property. The Contractor shall furnish the Engineer, upon request, with copies of all such notifications and final agreements. The Contractor shall protect and carefully preserve all property monuments until the Owner, or an authorized surveyor or agent, has witnessed or otherwise referenced their location or relocation. The Contractor shall be responsible for any damage occasioned by or resulting from the operations, work or materials to property of any kind outside the construction area, or within the construction area and below the ground surface if such property is shown in the plans, or its existence is indicated in the Special Provisions. The Contractor shall also be responsible for any damage, occasioned by or resulting from the operations, to property of any kind within the construction area and below ground surface, the existence of which is not shown in the Plans or indicated in the Special Provisions, provided the Contractor is notified of its existence before such damage is done. If such property is damaged or destroyed by the Contractor's operations, work, or materials, the Contractor shall, at the Contractor's own expense, restore such property to a condition equal to or better than that existing before such damage or injury was done by repairing, rebuilding, or replacing it as may be directed, or shall otherwise make good such damage or destruction in an acceptable manner. G. GENERAL WARRANTY/GUARANTEE Any defective materials, workmanship or equipment shall be corrected by the Contractor, at no cost to the Owner, for a period of two years after date of acceptance of the project. If, in the City of Shakopee — RFQ GC 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 GC -Page 6 of 7 141 opinion of the Engineer, it is not expedient to correct injured work, or work not done in accordance with the contract, the Owner may deduct the difference in value between the work involved and that called for by the contract, together with fair allowance for damages, the amount of which shall be determined by the Engineer. The Contractor shall be responsible for any and all defects that may develop in any part of the entire installation furnished by the Contractor and upon receipt of written notice from the Engineer, shall immediately replace and make good without expense to the Owner such faulty part or parts, including damage resulting from same, during a period of two (2) years from the date of final acceptance of the installation, except when specific warranty and guarantee for work and materials for another length of time is elsewhere specified. The acceptance of the installation, or any part of it, shall not act to waive the liability on the part of the Contractor and the Contractors surety. H. REMOVAL AND DISPOSAL Items removed by the Contractor shall be disposed of outside of the City of Shakopee and in compliance with all Federal, State, and Local regulations, laws, codes and requirements. Removal items shall become the property of the Contractor unless specifically identified for salvage in the Special Provisions. I. SUBCONTRACTOR The 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 Contactor 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 provisions of the contract. Nothing contained in the Contract shall create any contractual relation between the subcontractor and the city or between any subcontractors. The Contractor shall pay any subcontractor within ten (10) days of receipt of payment from the city for undisputed services provided by the subcontractor. If the Contractor fails to pay within ten (10) 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. City of Shakopee — RFQ GC 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 GC -Page 7 of 7 142 SPECIAL PROVISIONS PART 1- GENERAL 1) CONTRACTOR - The on -site contractor (not the lining manufacturer) shall have five years or more of experience in a Northern climate and shall provide project references if requested. 2) CONTRACTOR must provide traffic control in accordance with the MNDOT Temporary Traffic Control Field Manual. 3) Sewer maps and manhole numbering system are provided (see attached map) that depict the manholes that are subject to the prescribed work. 4) CONTRACTOR must coordinate starting date with CITY staff and inform staff with updates on the progress. 5) REFERENCES: The following standards shall apply: a. ASTM D4541 — Adhesion b. ASTM D7234 — Adhesion c. ASTM D412 — Tensile Strength and Elongation d. ASTM D624 — Tear Strength e. ASTM D2240 — Hardness f. ASTM D522 — Flexibility (1/8" mandrel) g. ASTM D4060 — Taber Abrasion h. CIGMAT Evaluation (UH 96-7) of Spray -Applied Liner Systems for Wastewater Structures 6) SUBMITTALS: All materials and procedures required to establish compliance with the specifications shall be submitted to the owner/engineer for review/approval. Submittals shall include at least the following: a. Technical Data Sheet on each product used. b. Material Safety Data Sheet (MSDS) for each product used. c. ASTM References. d. CIGMAT Evaluation. e. Manufacturer's certification of applicator. f. Documentation of applicator's qualifications (see Section 8.d). g. Descriptive literature, bulletins and or catalogs of materials h. Work procedures including flow diversion plan, method of repair, etc i. Material and method for repair of leaks or cracks in manhole j. Statement of 10 year Warranty. 7) The city has the option to add or delete quantities. City of Shakopee — Special Provisions 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 S -Page 1 of 4 143 8) QUALITY ASSUARANCE a. The manufacturer and/or applicator of the total liner system of manholes shall be a company that specializes in the design, manufacture or installation of corrosion protection systems for manholes. Applicator shall be completely trained in leak repair, surface preparation and corrosion materials application on manholes. Corrosion materials/products shall be suitable for installation in a severe hydrogen sulfide environment without any deterioration to the liner. b. The applicator shall be trained and certified by the manufacturer for the handling, mixing, application and inspection of the liner system as described herein. c. To ensure total unit responsibility, all materials and installation thereof shall be furnished and coordinated by Manufacturer/Certified Applicator. d. Applicator shall provide documented evidence of at least 1,000 vertical feet of successful installations within the past three (3) years. A documented installation history must be supplied to include; Owner Name, Contact Information, Project Description, Volume of Product Installed and Contract Duration., including Owner references. 9) SPECIAL WARRANTY — The lining system shall be warranted against failure for a period of 10 years. "Failure" will be deemed to have occurred if the protective lining fails to: a. prevent the internal deterioration or corrosion of the structure b. protect the substrate and environment from contamination by effluent or c. prevent groundwater infiltration If any such failure occurs within 10 years of initial completion of work on a structure, the damage will be repaired to restore the lining at no cost to the Owner within 60 days after written notification of the failure. "Failure" does not include damage resulting from mechanical or chemical abuse or act of God. Mechanical or chemical abuse means exposing the lined surfaces of the structure to any mechanical force or chemical substance not customarily present or used in connection with structures of the type involved. PART 2 - PRODUCTS 1) MATERIALS a. The materials to be utilized in the lining of manholes shall be designed and manufactured to withstand the severe effects of hydrogen sulfide in a wastewater environment. Manufacturer of corrosion protection products shall have long proven experience in the production of the lining products utilized and shall have satisfactory installation record. b. Equipment for installation of lining materials shall be high quality grade and be as recommended by the manufacturer. c. The lining system to be utilized for manhole structures shall be a multi -component stress skin panel liner system as described below: i. Liner. Installation Moisture Barrier Surfacer Final Corrosion Barrier City of Shakopee — Special Provisions 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 Liner Modified Polymer Polyurethane/Polymeric blend foam Modified Polymer S -Page 2 of 4 144 d. Modified polymer shall be sprayable, solvent free, two -component polymeric, moisture/chemical barrier specifically developed for the corrosive wastewater environment. e. Polyurethane Rigid Structure Foam, low viscosity two -component, containing flame retardants. f. Total thickness of multi -component liner system shall be a minimum of 500 mils.. g. Acceptable Product: Spectrashield® by CCI Spectrum, Inc. or approved equal. PART 3 - EXECUTION 1) INSPECTION a. Applicator shall take appropriate action to comply with all local, state and federal regulations including those set forth by OSHA, EPA, the Owner and any other applicable authorities. b. Prior to conducting any work, perform inspection of structure to determine need for protection against hazardous gases or oxygen depleted atmosphere and the need for flow control or flow Diversion. c. Submit flow control/bypass plan for approval prior to work. d. New Portland cement structures must cure 28 days prior to liner installation. 2) SURFACE PREPARTION a. Conduct surface preparation program to include monitoring of atmosphere for hydrogen sulfide, methane, low oxygen or other gases, approved flow control equipment, and surface preparation equipment. b. Surface preparation methods may include high pressure water cleaning, hydro blasting, abrasive blasting, grinding, detergent water cleaning and shall be suited to provide a surface compatible for installation of the liner system. c. Surface preparation method shall produce a cleaned, abraded and sound surface with no evidence of laitance, loose concrete, brick or mortar, contaminants or debris, and shall display a surface profile suitable for application of liner system. d. After completion of surface preparation, perform the seven point check list, which is the inspection for: i. Leaks ii. Cracks iii. Holes iv. Exposed Rebar v. Ring and Cover Condition vi. Invert Condition vii. Inlet and Outlet Pipe Condition e. After the defects in the structure are identified, repair all leaks with a chemical or hydraulic sealant designed for use in field sealing of ground water. Severe cracks shall be "repaired with a urethane based chemical" sealant. Product to be utilized shall be as approved by owner/engineer prior to installation. Repairs to exposed rebar, defective pipe penetrations or inverts, etc. shall be repaired utilizing non -shrink grout or approved alternative method. 3) LINER INSTALLATION a. Application procedures shall conform to recommendations of the manufacturer, City of Shakopee — Special Provisions 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 S -Page 3 of 4 145 including materials handling, mixing, environmental controls during application, safety and spray equipment. b. Spray equipment shall be specifically designed to accurately ratio and apply the liner system. c. Application of multi -component liner system shall be in strict accordance with manufacturer's recommendation. Final installation shall be a minimum of 500 mils. A permanent identification and date of work performed shall be affixed to the structure in a readily visible location. d. The entire seal shall be integral and must be a permanent flexible type of seal allowing for the repeated vertical or horizontal movements of the frame due to frost lift, ground movement or the thermal movement of pavements. e. Provide final report documenting location, date, and repair summary. 4) FINAL INSPECTION a. Final liner system shall be completely free of pinholes or voids. Liner thickness shall be the minimum value as described herein. b. Visual inspection shall be made by the Owner/Engineer. Any deficiencies in the finished liner system shall be marked and repaired according to the procedures set forth by Manufacturer. c. The sewer system may be returned to full operational service as soon as the final inspection has taken place. City of Shakopee — Special Provisions 2025 Internal Sanitary Manhole Casting & Ring Sealing September 2025 S -Page 4 of 4 146 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.q September 16, 2025 Change order for playground at Jackson Commons with Kompan installation. Michael Kerski, Planning and Development Director Michael Kerski Action to be considered: Approve Change Order Motion Type: Simple Majority Background: Parks maintenance suggested a longer lasting wood fiber and also an ADA inspection recommended an additional ramp for access. Recommendation: Approve Change Order in the amount of $2,907.50 for additional ADA requirements and upgraded wood fiber. Budget Impact: Park Development Attachments: 147 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.r September 16, 2025 Declare Vehicles as Surplus from Jennifer Lane and approve disposal Michael Kerski, Planning and Development Director Michael Kerski Action to be considered: Declare surplus and approve disposal Motion Type: Simple Majority Background: Five vehicles were left on the Jennifer Lane property by the property owner. As part of the disposition of the case, the courts granted the city possession of all personal property located at that address. Most of the vehicles have been vandalized and needed to be removed to facilitate the demolition. Shakopee Towing has removed the vehicles to the city's Public Works Yard. They will be auctioned through the normal city process with funds used to recoup the towing and removal costs. Property includes several vehicles that could be sold for parts or junk. One of the vehicles is a historic vehicle in good condition that might generate some bidding. Recommendation: Declare surplus and approve disposal of property Budget Impact: Any sales proceeds will reduce the city's repayment attachment on the real estate. Attachments: ambulance.jpg 148 149 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 8.a September 16, 2025 Public hearing for the issuance of refunding bonds for Benedictine Living Community of Shakopee LLC (conduit debt) Nate Reinhardt, Finance Director Action to be considered: Adopt Resolution R.2025-099, authorizing the issuance of revenue refunding bonds of the City of Shakopee for the benefit of Benedictine Living Community of Shakopee LLC and authorizing the execution and delivery of documents in connection therewith. Motion Type: Simple Majority Background: The City of Shakopee issued two conduit bonds on December 21, 2018, for the benefit of Benedictine Living Community of Shakopee LLC,: (i) the Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $52,440,000; and (ii) the Subordinate Senior Housing Revenue Note (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $3,000,000. The City loaned the proceeds of the Refunded Bonds to the Borrower to finance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory care units located at 1705 Windermere Way in the City. The Borrower is requesting that the City issue one or more conduit tax-exempt or taxable revenue refunding bonds or other obligations in the estimated aggregate principal amount not to exceed $65,000,000 to (i) refinance the Project through the redemption and prepayment of the outstanding Refunded Bonds; (ii) fund required reserves, if any; and (iii) pay costs of issuance of the Bonds. The bonds will be issued in accordance with Minnesota Statutes, Chapter 462C. Pursuant to Section 147(f) of the Internal Revenue Code of 1986, the City Council is required to conduct a public hearing on the issuance of the Bonds. The Bonds may not be issued until the City Council has approved the issuance of the Bonds following the public hearing. 150 Julie Eddington, Kutak Rock LLP representing the city's bond counsel will be in attendance to answer city council questions. A letter providing further information has been attached. Recommendation: Following a public hearing, adopt Resolution R.2025-099 Budget Impact: There is no financial obligation (liability) or financial impact to the City of Shakopee, the refunding bonds will be conduit debt of the City of Shakopee. Any costs associated with the refinancing, including City legal fees, will be the responsibility of the Benedictine Health Systems. The City will receive a fee as part of this transaction. Attachments: Shakopee BHS Ref 2025 Bond Resolution.doc Shakopee BHS Ref 2025 Ltr N Reinhardt re Bond Resolution.docx 151 CITY OF SHAKOPEE RESOLUTION NO. 2025-099 AUTHORIZING THE ISSUANCE OF REVENUE REFUNDING BONDS OF THE CITY OF SHAKOPEE FOR THE BENEFIT OF BENEDICTINE LIVING COMMUNITY OF SHAKOPEE LLC AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS 1N CONNECTION THEREWITH WHEREAS, the City of Shakopee, Minnesota (the "City") is a statutory city and political subdivision duly organized and existing under the Constitution and laws of the State of Minnesota; and WHEREAS, Minnesota Statutes, Chapter 462C, as amended (the "Act"), authorizes a municipality to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to refinance multifamily housing developments (including independent living and assisted living and memory care facilities); and WHEREAS, Benedictine Living Community of Shakopee LLC, a Minnesota limited liability company (the "Company"), the sole member of which is Benedictine Health System, a Minnesota nonprofit corporation (the "Sole Member") and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), has proposed that the City issue one or more series of tax-exempt or taxable revenue refunding bonds or other obligations (the "Bonds") in an aggregate principal amount estimated not to exceed $65,000,000 and loan the proceeds thereof to the Company; and WHEREAS, the Company intends to apply the proceeds thereof, along with other available funds, to (i) refinance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory care units (the "Project") located at 1705 Windermere Way in the City, through the redemption of the City's outstanding Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, and the City's outstanding Subordinate Senior Housing Revenue Note (Benedictine Living Community of Shakopee LLC Project), Series 2018, which were issued in accordance with the provisions of the Act; (ii) fund required reserves, if necessary; and (iii) pay costs of issuance of the Bonds; and WHEREAS, the Company owns and operates the Project; and WHEREAS, the Sole Member has represented to the City that it is exempt from federal income taxation under Section 501(a) of the Code as a result of the application of Section 501(c)(3) of the Code; and WHEREAS, pursuant to Section 147(f) of the Code, and regulations promulgated thereunder, prior to the issuance of the Bonds, the City Council is required to approve the issuance of the Bonds after conducting a public hearing thereon preceded by publication of a notice of public hearing (in the form required by Section 147(f) of the Code and applicable regulations) in a newspaper of general circulation within the City at least seven (7) days prior to the public hearing date; and WHEREAS, a notice of public hearing (the "Public Notice") was published at least seven (7) days before the regularly scheduled meeting of the City Council of the City in the New Prague Times, the 4918-1393-9554.2 152 official newspaper of and a newspaper of general circulation in the City, with respect to the required public hearing under Section 147(O of the Code; and WHEREAS, on the date hereof, the City Council conducted a duly noticed public hearing at which a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing, on the issuance of the Bonds pursuant to the requirements of Section 147(O of the Code and WHEREAS, the Bonds are to be issued by the City pursuant to the Act and a Bond Trust Indenture (the "Indenture") between the City and U.S. Bank Trust Company, National Association, a national banking association (the "Bond Trustee"), and the City will loan the proceeds of the Bonds to the Company pursuant to a Loan Agreement (the "Loan Agreement") between the City, the Company, and the Sole Member, in its capacity as the "Obligated Group Agent" of the Obligated Group (hereinafter defined); and WHEREAS, the principal, premium (if any), and interest on the Bonds (i) shall be payable solely from the revenue pledged therefor; (ii) shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers; and (iv) shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the City's interest in the Loan Agreement; and WHEREAS, the Loan Agreement requires the Company to make payments thereunder in amounts and at times sufficient to pay the principal of, premium (if any), and interest on the Bonds when due, and the loan repayments required to be made by the Company to the City under the terms of the Loan Agreement will be assigned by the City to the Bond Trustee to secure the payment of the principal of, premium (if any), and interest on the Bonds; and WHEREAS, the repayment obligation of the Company under the Loan Agreement will be secured by a master note (the "Master Note") to be issued by the Obligated Group Agent on behalf of the Obligated Group under a Master Trust Indenture between the Obligated Group Agent, the Company, as the initial member of the obligated group created thereunder (the "Obligated Group"), and such other persons as from time to time are admitted as members of the Obligated Group, and U.S. Bank Trust Company, National Association, a national banking association (the "Master Trustee"), and a supplemental master trust indenture (said Master Trust Indenture, together with the supplemental master trust indenture and all other amendments and supplements thereto, being referred to herein collectively as the "Master Indenture"); and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, AS FOLLOWS: 1. The City acknowledges, finds, determines, and declares that the issuance of the Bonds is authorized by the Act and is consistent with the purposes of the Act and that the issuance of the Bonds, and the other actions of the City under the Loan Agreement and this resolution constitute a public purpose and are in the interests of the City. In authorizing the issuance of the Bonds, the City's purpose is and the effect thereof will be to promote the public welfare of the City and its residents by continuing to provide multifamily housing developments for senior residents of the City and health care services for seniors who are unable to live independently and otherwise furthering the purposes and policies of the Act. 2. For the purposes set forth above, there is hereby authorized the issuance, sale, and delivery of the Bonds in the aggregate principal amount not to exceed $65,000,000. The Bonds shall bear 4918-1393-9554.2 2 153 interest, shall be numbered, shall be dated, shall mature, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other terms, details, and provisions as are prescribed in the Bond Indenture, in substantially the form now on file with the City. 3. All of the provisions of the Bonds, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof The Bonds shall be substantially in the form on file with the City, which is hereby approved, with such necessary and appropriate variations, omissions, and insertions (including changes to the principal amount of the Bonds, the determination of the interest rates on the Bonds, and changes to the terms of redemption of the Bonds) as the Mayor and the City Administrator of the City (the "Mayor" and "City Administrator," respectively), in their discretion, shall determine. The execution of the Bonds with the manual or facsimile signatures of the Mayor and the City Administrator and the delivery of the Bonds by the City shall be conclusive evidence of such determination. 4. The Bonds shall be special, limited obligations of the City payable solely from the revenues provided by the Company and the other members of the Obligated Group pursuant to the Loan Agreement and other funds pledged pursuant to the Bond Indenture and shall be issued in an aggregate principal amount not to exceed $65,000,000. The City Council of the City hereby authorizes and directs the Mayor and the City Administrator to execute and deliver the Bond Indenture to the Bond Trustee, hereby authorizes and directs the execution of the Bonds in accordance with the terms of the Bond Indenture, and hereby provides that the Bond Indenture shall provide the terms and conditions, covenants, rights, obligations, duties, and agreements of the owners of the Bonds, the City and the Bond Trustee as set forth therein. 5. All of the provisions of the Bond Indenture, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Bond Indenture shall be substantially in the form on file with the City, which is hereby approved, with such necessary and appropriate variations, omissions, and insertions as do not materially change the substance thereof, or as the Mayor and the City Administrator, in their discretion, shall determine, and the execution thereof by the Mayor and the City Administrator shall be conclusive evidence of such determination. 6. The Mayor and the City Administrator are hereby authorized and directed to execute and deliver the Loan Agreement and the Bond Purchase Agreement (the "Bond Purchase Agreement") between the City, the Obligated Group Agent, on behalf of the members of the Obligated Group, and Colliers Securities LLC (the "Underwriter"). All of the provisions of the Loan Agreement and the Bond Purchase Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Loan Agreement and the Bond Purchase Agreement shall be substantially in the forms on file with the City which are hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the City Administrator, in their discretion, shall determine, and the execution thereof by the Mayor and the City Administrator shall be conclusive evidence of such determination. 7. The Bonds shall be revenue obligations of the City the proceeds of which shall be disbursed pursuant to the Bond Indenture and the Loan Agreement, and the principal, premium, if any, and interest on the Bonds shall be payable solely from the proceeds of the Bonds, the revenues derived from the Loan Agreement as secured by the Master Note, and the other sources set forth in the Bond Indenture. 8. The Bond Trustee is hereby appointed as paying agent and bond registrar for the Bonds. 4918-1393-9554.2 3 154 9. The Mayor, the City Administrator, and the Finance Director are hereby authorized to execute and deliver, on behalf of the City, such other documents as are necessary or appropriate in connection with the issuance, sale, and delivery of the Bonds, including, if necessary, an assignment of the Master Note to the Bond Trustee, one or more certificates of the City, an endorsement to the Tax Certificate of the Company, an Information Return for Tax -Exempt Private Activity Bond Issues, IRS Form 8038 (Rev. February 2022), and all other documents and certificates as shall be necessary and appropriate in connection with the issuance, sale, and delivery of the Bonds. The City hereby approves the execution and delivery by the Bond Trustee of the Bond Indenture and all other instruments, certificates, and documents prepared in conjunction with the issuance of the Bonds that require execution by the Bond Trustee. The City hereby authorizes Kutak Rock LLP, Minneapolis, Minnesota, as bond counsel of the City, to prepare, execute, and deliver its approving legal opinion with respect to the Bonds. 10. The City hereby authorizes the Company to provide such security for payment of its obligations under the Loan Agreement and for payment of the Bonds, including but not limited to the Master Note or any other security agreed upon by the Company and the Bond Trustee, and the City hereby approves the execution and delivery of such security. 11. All covenants, stipulations, obligations, and agreements of the City contained herein and in the aforementioned documents shall be deemed to be the covenants, stipulations, obligations, and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations, and agreements shall be binding upon the City. Except as otherwise provided herein, all rights, powers, and privileges conferred and duties and liabilities imposed upon the City or the City Council by the provisions of this resolution or of the aforementioned documents shall be exercised or performed by the City or by such members of the City Council, or such officers, board, body or agency thereof as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation or agreement herein contained or contained in the aforementioned documents shall be deemed to be a covenant, stipulation, obligation or agreement of any member of the City Council of the City, or any officer, agent or employee of the City in that person's individual capacity, and neither the City Council of the City nor any officer or employee executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. No provision, covenant or agreement contained in the aforementioned documents, the Bonds or in any other document relating to the Bonds, and no obligation therein or herein imposed upon the City or the breach thereof, shall constitute or give rise to any pecuniary liability of the City or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants, and representations set forth in such documents, the City has not obligated itself to pay or remit any funds or revenues, other than funds and revenues derived from the Loan Agreement, as secured by the Master Note, and the Guaranty, which are to be applied to the payment of the Bonds, as provided therein and in the Bond Indenture. 12. Except as herein otherwise expressly provided, nothing herein or in the aforementioned documents expressed or implied, is intended or shall be construed to confer upon any person or firm or corporation, other than the City or any holder of the Bonds issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provisions hereof, this resolution, the aforementioned documents and all of their provisions being intended to be and being for the sole and exclusive benefit of the City and any holder from time to time of the Bonds issued under the provisions of this resolution. 4918-1393-9554.2 4 155 13. In case any one or more of the provisions of this resolution, other than the provisions contained in the first sentence of Section 4 hereof, or of the aforementioned documents, or of the Bonds issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Bonds, but this resolution, the aforementioned documents, and the Bonds shall be construed and endorsed as if such illegal or invalid provisions had not been contained therein. 14. The Bonds, when executed and delivered, shall contain a recital that they are issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Bonds and the regularity of the issuance thereof, and that all acts, conditions, and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds, and to the execution of the aforementioned documents to happen, exist and be performed precedent to the execution of the aforementioned documents have happened, exist and have been performed as so required by law. 15. The officers of the City, bond counsel, other attorneys, engineers, and other agents or employees of the City are hereby authorized to do all acts and things required of them by or in connection with this resolution, the aforementioned documents, and the Bonds for the full, punctual, and complete performance of all the terms, covenants, and agreements contained in the Bonds, the aforementioned documents and this resolution. In the event that for any reason the Mayor is unable to carry out the execution of any of the documents or other acts provided herein, any other member of the City Council shall be authorized to act in the capacity of Mayor and undertake such execution or acts on behalf of the City with full force and effect, which execution or acts shall be valid and binding on the City. If for any reason the City Administrator is unable to execute and deliver the documents referred to in this resolution, such documents may be executed by a member of the City Council, with the same force and effect as if such documents were executed and delivered by the City Administrator. 16. The City understands that the Company will pay directly to the City any and all costs paid or incurred by the City in connection with the transactions authorized herein, whether or not the Bonds are issued. The City further understands that the Company will pay to the City its administrative fee for the issuance of conduit debt. 17. This resolution shall be in full force and effect from and after its passage. Approved by the City Council of the City of Shakopee this 16`' day of September, 2025. Mayor ATTEST: City Clerk 4918-1393-9554.2 5 156 KUTAKROCK Nathan Reinhardt, Finance Director City of Shakopee 485 Gorman Street Shakopee, MN 55379 Kutak Rock LLP 60 South Sixth Street, Suite 3400, Minneapolis, MN 55402-4018 office 612.334.5000 September 10, 2025 Julie Eddington 612.334.5013 julie.eddington@kutakrock.com Re: Resolution approving the issuance of revenue refunding bonds for the benefit of Benedictine Living Community of Shakopee LLC Dear Nate: As you know, the City of Shakopee (the "City") issued two series of bonds (the "Refunded Bonds") on December 21, 2018, for the benefit of Benedictine Living Community of Shakopee LLC, a Minnesota limited liability company (the "Company"), the sole member of which is Benedictine Health System, a Minnesota nonprofit corporation (the "Sole Member"): (i) the Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $52,440,000; and (ii) the Subordinate Senior Housing Revenue Note (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $3,000,000. The City loaned the proceeds of the Refunded Bonds to the Company to finance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory care units (the "Project") located at 1705 Windermere Way in the City. The Company is requesting that the City issue one or more series of tax-exempt or taxable revenue refunding bonds or other obligations (the "Bonds") in the estimated aggregate principal amount not to exceed $65,000,000 to (i) refinance the Project through the redemption and prepayment of the outstanding Refunded Bonds; (ii) fund required reserves, if any; and (iii) pay costs of issuance of the Bonds. The Refunded Bonds were issued in accordance with Minnesota Statutes, Chapter 462C, as amended (the "Act"). Pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended, the City Council is required to conduct a public hearing on the issuance of the Bonds. As authorized at a prior meeting, the City Council will conduct the public hearing at its meeting on September 16, 2025. Following the public hearing, the City Council will be asked to consider the enclosed resolution, which provides final approval to the issuance of the Bonds and authorizes the execution and delivery of the financing documents. If issued, the Bonds will be issued pursuant to the Act and secured solely by the revenues derived from a loan agreement to be executed by the City and the Company and from other security provided by the Company. The Company plans to form an obligated group (the "Obligated Group"), of which it will be the initial member. The Sole Member will serve as agent for the Obligated Group (the "Obligated Group Agent") but will not be a member of the Obligated Group. To secure the Company's repayment obligations with respect to the loan of the proceeds of the Bonds, the Obligated Group Agent will issue, on behalf of the Obligated Group, an Obligated Group master note (the "Master Note") under a master trust indenture. The Master Note will be secured by a mortgage on the Project and property. 4927-3848-5862.1 157 KUTAK ROCK The Bonds will not constitute a general or moral obligation of the City and will not be secured by or payable from any property or assets of the City (other than the interests of the City in the loan agreement) and will not be secured by any taxing power of the City. The Bonds will not be subject to any debt limitation imposed on the City, and the issuance of the Bonds will not have any adverse impact on the credit rating of the City, even in the event that the Company encounters financial difficulties with respect to the Project to be refinanced with proceeds of the Bonds. Each year the City has the ability to designate up to $10,000,000 in tax-exempt bonds as "qualified tax-exempt obligations" (sometimes referred to as "bank -qualified bonds") for purposes of Section 265(b)(3) of the Code. In order to issue bank -qualified bonds, an issuer must not expect to issue more than $10,000,000 of bonds (other than private activity bonds that are not qualified 501(c)(3) bonds) in a calendar year. Because the principal amount of the Bonds exceeds $10,000,000, the City will be unable to designate the Bonds or any other bonds to be issued by the City in 2025 as bank qualified. The Company will pay the out-of-pocket expenses of the City with respect to this transaction as well as the City's administrative fee. I will attend the public hearing on September 16, 2025. Please contact me with any questions you may have prior to the City Council meeting. Sincerely, Julie Eddington 4927-3848-5862.1 158 SHAKOPEE WILLA! Shakopee City Council 9.a September 16, 2025 Agenda Item: 2026 Proposed Property Tax Levies and Debt Levy Cancellations Prepared by: Nate Reinhardt, Finance Director Reviewed by: Action to be considered: Adopt Resolution R2025-100, canceling debt service levies for taxes payable in 2026. Adopt Resolution R2025-101, setting proposed maximum 2025 property tax levy collectible in 2026. Adopt Resolution R2025-102, approving the preliminary levy of a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6 by the Economic Development Authority for the City of Shakopee, Minnesota. Motion Type: Simple Majority Background: The City of Shakopee is required to comply with statutory deadlines for submittal of the property tax levy to Scott County and must certify the preliminary levy by September 30, 2025. The final levy, which cannot exceed the preliminary levy, will be brought to the council for review at the December 2, 2025 council meeting. This will also be the date that will serve as the public input meeting which provides the public an opportunity to comment on the budget and levy. The final budget and levy is expected to occur at the December 16, 2025 council meeting. City council reviewed the property tax levy and budget at the at the August 19, 2025 council meeting. The levy was further reduced (from 6.2% to 5.5%) since that last review. An updated budget memo, reflective of changes is included as an attachment. The proposed preliminary city levy is $28,214,480 an increase of $1,470,430 (5.50 percent) from last year. The proposed tax levy will have a minimal impact on the city's tax rate 159 (slight increase) from 27.77 percent to 28.57 percent. For the median value home, that increased by 3.0 percent from $350,700 to $361,300, a property owner would see an increase of $60 annually in property taxes. Absent any change in a homes value from the previous year, homeowners can expect a tax increase of $27. Staff is also recommending the approval of the Economic Development Authority (EDA) preliminary levy. The EDA approved a 2026 levy of $550,000 at their meeting on September 2, 2025. However, state statutes require City Council approval prior to the tax levy becoming effective. Resolution R2025-102 approves the preliminary EDA levy. Staff is also requesting the council approve a resolution cancelling a portion of the debt service levies for the 2016A Abatement Bond and the 2022A Improvement Bond. The 2016A debt issuance has sufficient funds available to pay for future debt service payments without levying the entire required debt service levy. Additionally, City Council set aside $346k of year-end fund balance to cancel the required levy for 2026 of the 2022A debt issuance. Recommendation: Adopt the resolutions as requested. Budget Impact: Sets the maximum 2026 city levy at $28,214,480. Attachments: Resolution No. R2025-100 Debt Cancellation_2026 Preliminary Levy.docx Resolution No. R2025-101 2026 Preliminary Tax Levy.docx Resolution No. R2025-102 Shakopee_CC_Resolution_Special_Benefits_Levy_2026.docx 2026 Levy & Budget Memo 9-16-2025.pdf 2026 Preliminary Budget 9-16-2025 (Presentation).pdf General Fund Summary - 2026 Budget.pdf General Fund by Division - 2026 Budget.pdf General Fund Detail - 2026 Budget.pdf 160 RESOLUTION NO. R2025-100 A RESOLUTION CANCELING DEBT SERVICE LEVIES FOR TAXES PAYABLE IN 2026 WHEREAS, the City has reviewed balances of debt service funds and has determined sufficient funds are available for the repayment of debt; and WHEREAS, Scott County requires a resolution be passed by the City Council if the levied amount is less that the required amount from the payment schedule of a bond; NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, COUNTY OF SCOTT, MINNESOTA, that the following debt service levies are cancelled: 2016A GO Tax Abatement Bonds $50,105.31 2022A GO Improvement Bonds $345,582.34 BE IT FURTHER RESOLVED that the difference required for payment of annual debt service needs to be paid from the fund balance in the respective debt service funds. Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 16th day of September 2025. Mayor of the City of Shakopee ATTEST: City Clerk 161 Resolution No. R2025-101 A RESOLUTION SETTING MAXIMUM PROPERTY TAX LEVY COLLECTIBLE IN 2026 WHEREAS, the City Council of the City of Shakopee, is the governing body of the City of Shakopee; and WHEREAS, Minnesota Statutes require that the preliminary property tax levy for property taxes payable in 2026 be provided to the Scott County Auditor no later than September 30, 2025. NOW , THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the following amounts be levied as the proposed maximum tax levy in accordance with existing law for the current year upon the taxable property in the City of Shakopee; 2026 Requested General Fund Abatements Capital Improvement Fund Debt Service 2016 Abatement Bond 2022A Improvement Total Property Taxes $ 24,405,480 120,000 1,500,000 2,189,000 $ 28,214,480 BE IT FURTHER RESOLVED, the public input meeting on the tax levy and budget is set for December 2, 2025 at 7:00 pm, located at City Hall, 485 Gorman Street. Adopted in regular session of the City Council for the City of Shakopee, Minnesota held this 16th day of September 2025. Mayor of the City of Shakopee ATTEST: City Clerk 162 CITY OF SHAKOPEE, MINNESOTA RESOLUTION NO. R2025-102 APPROVING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE, MINNESOTA WHEREAS, pursuant to Resolution No. 4206, adopted by the City Council of the City of Shakopee, Minnesota (the "City"), on April 4, 1995, as amended by Resolution No. 4381, adopted by the City Council of the City on February 6, 1996, and Minnesota Statutes, Sections 469.090 through 469.1082, the City created the Economic Development Authority for the City of Shakopee, Minnesota (the "Authority"); and WHEREAS, the Authority has the ability to exercise all powers and duties of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 through 469.047 (the "HRA Act"); and WHEREAS, Section 469.033, subdivision 6 of the HRA Act provides that all of the territory included within the area of operation of a housing and redevelopment agency (the entire City) shall be a taxing district for the purpose of collecting special benefit taxes; and WHEREAS, Section 469.033, subdivision 6 of the HRA Act permits the Authority to levy and collect a special benefit tax of up to 0.0185% of estimated market value of taxable property within the City, levied upon all taxable real property within the City; and WHEREAS, the special benefit tax levy authorized by Section 469.033, subdivision 6 of the HRA Act is separate and distinct from the City's levy and is not subject to levy limits; and WHEREAS, the Authority desires to levy a special benefit tax in the amount of $550,000, which is less than 0.0185% of the estimated market value of taxable property within the City; and WHEREAS, on the date hereof, the Board of Commissioners of the Authority adopted a resolution (the "Authority Resolution") approving the levy a special benefit tax in the amount of $550,000; and WHEREAS, pursuant to the Authority Resolution, the Authority will adopt a budget for fiscal year 2026 that provides for levy of the special benefits tax in an amount of $550,000 to be used for the Authority's economic development and redevelopment activities; and NOW, THEREFORE, BE IT RESOLVED by the City Council (the "City Council") of the City of Shakopee, Minnesota as follows: 1. The City Council hereby accepts the preliminary budget submitted by the Authority for fiscal year 2026. 2. The City Council hereby approves the preliminary levy by the Authority of a special benefit tax pursuant to Section 469.033, subdivision 6 of the HRA Act in the amount equal to the lesser of a levy at a rate of 0.0185% of the estimated market value of taxable property within City or $550,000 with respect to taxes payable in calendar year 2026. 507179v1 JAE SH235-1 163 3. Notwithstanding the City's approval of the Authority's levy, the City Council may determine to decrease the Authority's levy when finalizing the City's levy for 2026. Approved by the City Council of the City of Shakopee, Minnesota this 16th day of September 2025. Mayor ATTEST: City Clerk 507179v1 JAE SH235-1 164 SHAKOPEE Pli°1611 I To: Mayor and Council Members From: Nate Reinhardt, Finance Director Cc: Bill Reynolds, City Administrator Date: September 16, 2025 Re: 2026 Property Tax Levy & Budget Background Each year the city must prepare a budget and property tax levy for the following year. Staff analyzed revenues, expenditure information and initiatives to prepare a budget and levy for your consideration. From providing fun recreation programs and beautiful parks to ensuring safe neighborhoods, providing high -quality services enhance and protects people's lives. Responsible fiscal management also builds the foundation for the city to run smoothly and provide effective, innovative programs and services while keeping in mind ways to evolve to meet future expectations and demands. Decisions are made with the future in mind to ensure the city's ongoing ability to provide high quality services at a reasonable price. Shakopee continues to remain in an extremely strong financial position. The city's AA+ long term credit rating reflects the rapidly growing local economy, strong reserves, manageable debt burden and strong financial management practices and policies. The city maintains a very diverse tax base across all sectors, entertainment, industrial, commercial and a range of housing options. The city continues to place an emphasis on long term financial planning including a long-term financial plan, a 15 -year capital improvement plan, establishment of internal service funds, and financial projections of our various funds. Levy Request & Impact The proposed 2026 preliminary levy is $28,214,480, which is an increase of $1,470,430 or 5.50 percent over last year, and a EDA levy of $550,000, which is an increase of $50,000 from last year. For the median value home, whose property value increased from $350,700 to $361,300 (3.02 percent), this equates to an increase of $60 or (6.44 percent) annually in city property taxes. 165 The breakdown and comparison of the proposed preliminary 2026 levy is as follows: Summary of Levy Changes — 2026 Budget City of Shakopee Levy Analysis September 16, 2025 2026 2025 Final Preliminary City Levy General Fund $ 23,235,050 Abatements 120,000 Capital Improvement Levy 1,200,000 Debt Service 2016 Abatement 2022A Improvement Total Debt Service Total City Levy Shakopee EDA Special Levy Total City and EDA Levies 2,189,000 2,189,000 Increase/ (Decrease) % Change $ 24,405,480 $ 1,170,430 120,000 1,500,000 300,000 5.04% 0.00% 25.00% 2,189,000 0.00% 0.00% 2,189,000 0.00% $ 26,744,050 $ 28,214,480 $ 1,470,430 5.50% $ 500,000 $ 550,000 $ 50,000 10.00% $ 27,244,050 $ 28,764,480 $ 1,520,430 5.58% A summary of changes, in comparison to 2025, impacting the property tax levy are as follows with detailed information on each section following the summary. The amount shown in red parentheses represents decreases in the property tax levy, as an example an increase in fee revenues would result in less property tax needed to fund those services. Description Levy Impact Revenues (increase) $ (2,133,480) Transfers from other funds (increase) (24,000) Expenditures: Wages & benefits 2,100,700 Operating expenses 961,010 Internal rent changes 359,200 One-time adjustments (93,000) Capital Improvement Levy 300,000 Debt Service - Change in property tax levy $1,470,430 The next few pages provide a breakdown of the summarized changes shown in the table above. 166 Revenues The city is projecting an overall net increase of $2,133,480 in non -property tax revenues for the 2026 budget a summary of revenue changes are as follows with explanations below: Description Change Contracted public safety services (offset with expenses) $616,500 Building permit revenues 450,000 Community Center revenues 331,700 Engineering fees — private development 150,000 Restaurant licenses and inspections (offset with inspector wages and benefits) 122,000 Police state aid 100,000 Municipal State Aid (MSA) maintenance funds 75,000 Interest income (General fund) 75,000 SPU pilot fee 55,000 Fire state aid 45,000 SandVenture revenues 37,000 Township fire Agreements 25,000 Tribal contribution 25,000 Ice Arena revenues 25,000 MS4 administration fee 25,000 Other (net adjustments) 71,280 Cable franchise fees (35,000) State building official grant (60,000) Change in Revenues $2,133,480 Several organizations contract with the Shakopee police department to provide services during the year. With the addition of concerts at the amphitheater we have increased contracted revenue by $616,500. This revenue is offset by budgeted increases in staffing overtime and contracting with other agencies to fulfill these agreements and related supplies and equipment. The city's building permits have been strong over the past few years with an influx of commercial and residential development. The city has historically been conservative when forecasting and budgeting development and related building permit revenue. The city's 2026 forecast for building permit revenue includes a $450,000 increase in budgeted building permit revenue. In total, the city has budgeted $3.88 million in building permit related revenues. Community center revenues have been increased to reflect proposed fee increases for 2026. The recreation department has created a comprehensive revenue policy and these fee adjustments will align with that policy. The community center will continue to remain one of the most affordable options. Engineering fees related to private development were increased by $150,000 based on continued development. The City contracts with a third party to provide construction inspections services for private development, the increase offsets those contracted costs. The city is proposing to add a dedicated health inspector to ensure the safety and cleanliness of our 12 hotels and 72 restaurants. New licenses and inspection fees are budgeted at $122,000 to offset the cost of the new position. 167 Transfers to the General Fund Transfers from other city funds to the General Fund help pay for operating costs. Description 2025 2026 Change Public safety fund (patrol officer reimbursement) $126,000 $100,000 (26,000) Self-insurance fund 350,000 350,000 Sewer/storm water (allocation of admin overhead) 400,000 400,000 EDA (allocation of admin overhead) - 50,000 50,000 Change in transfers $24,000 The city received $1.99 million in one-time public safety aid in 2023 which was placed in a separate Public Safety Aid special revenue fund. Funding was provided in 2024 and 2025 to pay for a portion of the cost of two additional officers. These positions weren't hired until fall of 2024 and as a result, not all funding has been utilized. Approximately $100,000 remains in the fund which is proposed to be utilized with the 2026 budget. Staff is proposing to utilize $350,000 of fund balance from the city's self-insurance fund to offset costs associated with an increase in the employer share of health insurance premiums (this is the same amount that was used for the 2025 budget). The city continues to explore a potential implementation of a Scott County health insurance pool, a partnership with Scott County and cities, that would increase the plan participants and save money over the long-term. Funding of $600,000 was set -aside initially in 2017 as the city explored their own self-insurance options. Staff is proposing a new recurring annual transfer beginning in 2026 from the EDA to the General fund in the amount of $50,000. Similar to the city utility funds (sewer and storm water), the EDA receives administration support from general fund operations including the city council, finance, information technology, communications and human resources. From a financial standpoint, the administration allocation would better reflect the full cost of EDA operations. A corresponding $50,000 increase in the EDA levy is being proposed, resulting in no impact on the EDA operational funding. 168 Expenditures A number of factors will impact the cost of operations in next year's budget. The General Fund expenditures are budgeted to increase in total by $3,327,910. The expenditures have been categorized in this section as wages and benefits, operational (on- going) expenditures, rent (equipment and capital replacement) and one-time adjustments. Wages and benefits Description Change Cost of living adjustment — 3% (3.5% PW Union) $792,000 Pay step changes 388,000 Compensation study implementation (non-union) 320,000 Public safety OT (offset by contracted revenue) 197,000 Health inspector (New) 121,000 Health Insurance — 8.3% premium increase 99,000 Elections judges 94,000 MN Paid Leave (employer contribution) 93,000 Recreation part-time 58,000 Clerk Administrative Assistant (part-time to full-time) 54,000 Fire part-time 51,000 Fire Inspector added July 2025 (half year impact) 49,000 PT Marketing Specialist (split Communication and Rec.) I 39,000 Other (net adjustments) 40,700 Workers compensation — reduced rates (295,000) Change in wages & benefits $2,100,700 Wages and benefits account for nearly 70% of the City's General Fund costs. The City has three unions (Patrol, Sergeants, Public Works), all three union contracts were revised during 2024 and cover a three year period (2024-2026). The 2026 budget has been built with the assumption that the Patrol and Sergeants unions and non-union wages will see an equivalent 3.0 percent cost of living adjustment. The Public Works union includes a 3.5 percent cost of living adjustment. Across all employee groups the cost of living adjustment amounts to an increase of approximately $792,000. The city maintains pay plans for all employees that include step increases on employee anniversary dates. Budgeted step increases amount to $388,000. The city recently completed a market compensation study for all non-union employees. The goal of the study was to evaluate wages of non-union full-time staff with our peer comparable cities (Maplewood, Coon Rapids, Lakeville, Roseville, Blaine, St. Louis Park, Golden Valley, Inver Grove Heights, Burnsville and Savage). The City Council has provided guidance that employees should be compensated at the salary mid -point of our comparable cities. The study showed our pay plan is behind market averages and included several positions that were significantly behind the average wage of similar positions. As a result, the following modifications have been proposed to the non-union pay plan: 169 1) Proposed 1% market adjustment 2) Proposed creation of an additional step at 2 percent above the final step for each pay grade 3) Elimination of step 1 for grades 200 through 240 (which places the number of steps in line with other pay grades) 4) Positions that are six percent or more below the market will be adjusted up to a newly created "half' grade. This grade will be inserted at the mid -point between the current grade and next higher grade. These new grades impacted 18 positions (21 employees). These pay plan adjustments will allow the city to remain competitive, re -align positions that were out of the market average and still retain our current pay plan framework. The total budget impact of these changes amount to $320,000. The following chart provides a comparison line showing the current wage, market average and proposed wage adjustments for grade mid- points. 3 85.00 .375.00 365.00 555.00 145.00 035.00 325.00 110 Compensation Study - Shakopee (non-union employees) Shakopee Market Mid Shakopee Mid -point -point Mid-point (Proposed) . . , 0.. . ./ . . 0. . . . r . . . . r 0. 0. r r r r r r r r r r r 120 130 143 150 160 1-: 15; 1'4 41 _5; The preliminary 2026 budget currently includes an increase in health insurance premiums of 8.8 percent. This increase along with changes in employee plan elections calculate to an increase of $99,000. We have seen a number of employees move from family to single coverage or from low to high deductible options. The city has seen premium increases of 16.7 percent and 20.9 percent in the past two years. We continue to explore a health insurance pool with Scott County and cities of Scott County, which could occur in 2027. To offset the increase the city is proposing to utilize $350,000 of fund balance previously set aside for potentially moving to self - insured health insurance, which is identified in the transfers section of the memo. The preliminary budget includes the following new items impacting the 2026 budget. Building Health Inspector ($121k) - Shakopee needs a dedicated health inspector to ensure the safety and cleanliness of our 12 hotels and 72 restaurants, particularly with the opening of the 19,000 -seat amphitheater, which will significantly increase tourism and food service demand. A full-time inspector will help maintain public 170 health standards, respond promptly to complaints, and support local businesses in meeting state and local regulations —safeguarding both residents and the thousands of visitors expected to attend events throughout the year. The position will be offset by restaurant and hotel licenses and inspection revenues. MN Paid Leave ($93k) — state mandated leave program that requires a .38% contribution of gross wages from employer and employee. The new leave provides job -protected paid time off for eligible employees (up to 20 weeks per year) to care for themselves or family members due to medical reasons, family needs or safety concerns. The City will be contracting with a private insurance provider for this benefit. Clerk Administrative Assistant ($54k) — proposed change from part-time administrative position to a full-time position with benefits. Will provide consistent front -desk customer service and support other positions by enabling them to focus on their specialized areas. Part-time Marketing Specialist ($39k) — this shared position between recreation and communications replaces the seasonal intern with year-round professional marking support for programs, events and facilities at minimal add cost. The City's holds workers compensation insurance through the League of Minnesota's Insurance Trust. From 2022 to 2024 we saw rates trend upwards significantly, specifically for public safety employees. In the 2025 budget, the city forecasted those increases to continue, however we have seen our rates decline. Based on our last renewal, claims data and recent changes to post -traumatic stress disorder disability law, we have budgeted for a decrease in workers compensation insurance of $295,000. Operational Expenditure Changes Adjustments to operating budgets that are anticipated to continue into future years are shown below. These include contractual and utility increases. Description Change Public Safety — amphitheater contracted costs (offset by revenue) $300,000 Engineering contracted construction inspections 170,000 Contingency 110,100 Misc. supply and services (net adjustments) 93,100 Utilities (electric/water/gas) 72,500 County prosecution costs 42,700 Fire — turnout gear/uniforms 34,300 Community center cleaning contract 30,300 Fire — supplies, minor equipment 28,800 Building permit credit card fees 25,000 Finance Contracts (assessing/audit/actuary) 24,000 Fire — training 18,100 Park restroom cleaning contract 12,000 Change in operational expenses $961,010 171 During the early stages of the budget process significant budget adjustments are identified for 2026, which is typically any line item that would increase by greater than $10,000. For operations we also review software contracts and include a forecast for utilities and fuel from a city-wide perspective to adjust these amounts consistently across the organization. Departments then enter their remaining line items into their operating budgets. Engineer professional services were increased for contracted construction review services related to development. These costs are reimbursed through engineering fees. Contingency (unallocated funds) has been increased by $110,000 for unknowns related to insurance rates, firefighter union negotiations and miscellaneous items that might arise between the preliminary and final budget. The Fire Department has provided an initial request for additional funding to provide for turnout gear, additional medical equipment, uniforms, and additional training. The city contracts with Scott County to provide prosecution services, the cost for 2026 will increase by $42,700. The Community Center is proposing an increase of $30,300 to allow them to increase their cleaning contract from 2 days per week to 7 days per week, which would allow maintenance staff to focus more on deep cleaning and preventative maintenance. Rent Changes The city utilizes internal services funds to accumulate funds for the purchase or replacement of city equipment and facilities. The funding sources are annual rents (internal charges) to the appropriate departments. Description Change Equipment Rent $175,700 Buildin Rent 124,800 Park Facilities Rent 40,000 Information Technology Rent 18,700 Change in internal rent charges $359,200 The equipment rent increase is both a result of new equipment being added to the schedule as well as increases in year over year costs of vehicles and equipment. A 20 -year equipment replacement schedule is included in the 5 -year Capital Improvement Plan that identifies all equipment, useful lives, replacement years and costs. Building rents are set with the intention that they would provide the funding for major maintenance projects (roofs, boilers, hvac, etc.), but not fully fund building replacement or new construction. The rent increase is both the result of projects related to the aging of city buildings and inflationary costs of those projects. The annual cost for the various internal service funds are calculated based on estimated useful life or scheduled replacement dates. The amounts for 2026 have been further adjusted (decreased) based on current balances. As an example, in 2024 fire vehicles were sold and proceeds of the sale were deposited in the equipment fund, which was taken into account with the budget request for 2025. 172 One-time Adjustments The General Fund up and down swings are typically moderated through the use of internal rent charges. However, a few one-time adjustments have been included in this budget. Comprehensive plan updates that will span 2026 and 2027. These costs will be offset by a one- time reduction of salt inventory, built up from the recent mild winters and removal of previous one-time items from the 2025 budget. Description Change Comprehensive Plan $100,000 Road Materials/Salt (one-time inventory reduction for 2026) (50,000) Fire Admin. vehicle (75,000) Building Inspector Ford Lightning (68,000) Change in one-time costs ($93,000) Debt Service The city council approved a transfer of $346,000 of year-end fund balance to pay the 2026 payment on the 2022A Improvement Bonds. The council approved a similar transfer the previous year which effectively eliminated the need for the debt service levy for these bonds. City Council will be asked to approve a debt service levy reduction to use the available fund balance in both the existing 2016A debt service fund and the 2022A debt service. If approved, this will result in no change to the debt service levy. Capital Project Funds/Capital Improvements Levy Staff and city council have reviewed the 2026-2030 CIP and projects programmed for 2026. The CIP identifies $54.0 million in projects for 2026. The creation and update of a multi -year capital plan allows the city to plan for its current and long-term needs. Project areas within the CIP include buildings, equipment replacement, information technology, parks, street, sanitary sewer and storm drainage. The CIP is published as a separate document and includes appendixes for a 15 -year CIP, 20 -year equipment replacement schedule and a long-term financial plan. Over the five-year plan annual overlay, rehab and reconstruction projects total $38.7 million, which is an average annual cost of $7.7 million needed to maintain current city roadways. This is a significant increase over the previous five years, looking back at the 2021-2025 CIP, those same annual projects total $20.9 million, which was an average of $4.2 million. Recurring funding sources include tax levy, franchise fees, municipal state aid and special assessments. Recurring funding has not kept pace with increasing street improvement costs. That funding gap has been plugged in recent years through one-time funding sources, including a bond issue in 2022 and year-end General Fund transfers. For 2026, staff is preliminarily recommending an increase the CIP levy from $1.2 million to $1.5 million to prevent that annual funding gap from further widening. The city currently does not have a bond sale anticipated in the budget or CIP for 2026, however a bond issue in 2026 or 2027 could be considered to bridge the funding gap. 173 Economic Development Authority The Shakopee EDA has the statutory authority to levy a small percentage (up to 0.0185%) of the city's taxable market value, which for 2026 would be a maximum of $1,532,766. The EDA and City Council can set the levy at any amount up to this cap. The EDA levy is identified on property tax statements as a separate local tax outside of the city's general property tax. For 2026, the preliminary request is for an EDA levy of $550,000 ($50,000 increase). Additional funding is provided through a contribution of I/2 percent of revenues from the Shakopee Public Utilities Commission. Staff is proposing a new ongoing transfer beginning in 2026 from the EDA in the amount of $50,000. Similar to the city utility funds (sewer and storm water), the EDA receives administration support from general fund operations including the city council, finance, information technology, communications and human resources. From a financial standpoint, the administration allocation would better reflect the full cost of the EDA. A corresponding $50,000 increase in the EDA levy is being proposed to allow for no net impact on the EDA. The EDA serves as the landlord for the main level business tenants at River City Centre. The EDA currently owns the land and the CDA owns the building. The activity (lease revenue and expenditures) is accounted for in a separate fund of the EDA. The EDA approved their preliminary 2026 levy and budget on September 2, 2025. Taxable Market Value The city's taxable market value is at $8.70 billion, which is an increase of $412 million (5.0%) from last year. Residential, apartment, commercial all saw growth in market value. New construction accounted for 57.8% of the increase in taxable market value. Class Payable 2025 Payable 2026 Change (%) Agricultural $41,712,610 $53,862,863 29.1% Apartment 775,299,400 849,623,207 9.6% Commercial 745,589,700 771,505,500 3.5% Industrial 1,765,009,000 1,821,276,800 3.2% Public Utility/Railroad 36,422,700 36,480,300 0.2% Residential 4,917,336,577 5,160,489,043 4.9% Other 3,849,500 3,849,600 0.0% Totals $8,285,219,487 $8,697,087,313 5.0% 174 For the city of Shakopee, the total residential taxable market value increased 4.9 percent (includes new construction), the majority of homes (93%) are seeing very little change in their values (increase/decrease by less than the 5.0 percent). A breakdown of the value changes is provided below. Residential Impacts - Shakopee Estimated Market Value Value Range Number of Residential Properties Percentage of Increase/Decrease Total +15.01+% 187 1% +10.01-15.00% 70 1% +5.01-10.00% 693 5% +0.01-5.00% 7,773 59% No Change 503 4% -0.01-5.00% 3,900 30% -5.01 - 10.00% 12 0% -10.00 - 15.00% 3 0% -15.01% + 2 0% 13,143 100% Net Tax Capacity Class Payable 2025 Payable 2026 Change (%) Agricultural $372,853 $476,572 27.8% Apartment 8,736,702 9,668,496 10.7% Commercial 14,678,599 15,196,748 3.5% Industrial 35,164,710 36,290,770 3.2% Public Utility/Railroad 721,249 722,401 0.2% Residential 50,000,427 52,533,250 5.1% Other 39,220 39,221 0.0% Adj. to match county report - 212,710 Gross Tax Capacity $109,713,760 $115,140,168 4.9% Adjustments: Tax Increment ($3,842,380) ($4,372,381) 13.8% Fiscal Disparity Contribution O7,905,859) (20,105,083) 12.3% Net Tax Capacity $87,965,521 $90,662,704 3.1% Fiscal Disparity Distribution ($8,458,436) ($8,316,317) 1.7 % The total net tax capacity of the city is estimated at $90,662,704 compared to $87,965,521 in 2025, which is an increase of $2,697,183 (3.1%). 175 The gross tax capacity is adjusted for the increase in tax capacity of properties within tax increment financing districts. The tax increment adjustment of $4.4 million represents 3.8 percent of gross tax capacity. The net increase is primarily related to the growth of Canterbury Commons. It is important to note that these developments would not have occurred without the use of tax increment financing. The value and tax capacity of these districts are added to the city's tax roll upon the decertification of these districts. The gross tax capacity is also adjusted for the fiscal disparities program which is unique to the seven -county metro area and is further explained in the diagram below: CONTRIBUTION TO SHARED POOL Equals 40% of growth in commercial, industrial, and public utility property tax base since 1971 SHARED POOL OF TAX 00, BASE FOR METRO AREA DISTRIBUTION FROM SHARED POOL Based on population and market value of all property per person compared to average market value per person for metro area The city's estimated contribution to the program is $20.1 million in tax capacity, and the distribution is estimated at $8.3 million for a net contributed amount of $11.8 million. This is an increase of $2.3 million. The city of Shakopee continues to be one of the top seven net contributors to the program in 2026 at $11.8 million (10.2%) of the city's tax capacity. City Tax Rates The tax levy and market value estimates are expected to have a minimal impact on the city's tax rate, slightly increasing from 27.77 percent to an estimated 28.57 percent. Historical City Tax Rates 39% 38.52% 37% 35% 33% 31% 29% 27% 37.21% 34.94% 33.98% 32.10% 32.11% 28.59% 27.40% 28.57% 27.77% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 est. 176 Median Value Home The value of the median value home has increased from $350,700 to $361,300 over the past year. This is an increase of $10,600 (3.0%). The following chart provides information on the median value home and city property taxes paid since 2021. The orange bar and amounts on the left axis represent the median value home. $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ — $1,200 $1,000 $600 $200 2021 2022 2023 2024 2025 2026 est. ■ Annual City Taxes $814 $877 $973 $909 $932 $992 ■ Estimated Market Value $266,800 $284,700 $346,500 $338,400 $350,700 $361,300 As the budget stands currently, for the median value home this equates to an increase of $60 or (6.4 percent) annually in property taxes. Absent any change in value, homeowners can expect a tax increase of $27 or about 2.9 percent (taking into consideration the proposed tax rate). We do anticipate this to decrease upon further revisions as we work through the full budget process. Enterprise Funds The city operates two public utility funds Sewer and Surface Water. These funds operate on their own ability to generate revenues and receive no property tax support. The Sewer fund provides for the collection and conveyance of wastewater through a system of mains and lift stations. Sewage is treated by the Metropolitan Council Environmental Services, whose contracted services account for approximately 80 percent of the fund's operating expenditures. The disposal charge for 2026 will increase to $3,226,182 (1.8%), following a significant 20.6% increase that occurred in 2025. The Surface Water fund maintains the surface water system for the city, which includes 140 miles of storm sewer and 224 ponds. The City's sewer billings include a city usage rate, a city fixed rate, and Metropolitan Council disposal rate. The surface water charge is based on acreage with residential paying a monthly charge equivalent to 1/3 of an acre. Staff will be proposing rate increases, in the range of one to three percent) for each fund to keep pace with operational costs and maintain the current 177 balances of those funds. For a typical residential user, this would amount to approximately $11 annually for sewer charges and $1 annually in surface water charges. Shakopee is below comparable and surrounding cities when it comes to a cost comparison of city property taxes, sanitary sewer and storm water charges. The following chart provides the 2026 annual cost of services for a $350,000 value home (slightly below the median value home in Shakopee) and 5,000 gallons of water usage a month. With the proposed 2026 changes Shakopee remains at the bottom of the comparison. S2,500 S2,250 $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 2025 Annual Cost of Services for Comparable & Surrounding Cities ($350,000 home - 5,000 gallons/month) S1,798 S1,823 S1,731 S1,717 S1,311 S1,246 51.509 S1,540 N e Sr woe I. c 4 5 r S1,863 S2,023 I 1 S2,093 0 4 G ill Property Taxes o Sewer o Storm s,,6 S2,189 S2,280 I S2.394 178 Schedule for budget and property tax levy development Date Who What May 6, 2025 Council/Staff Review Long-term Financial Plan June 17, 2025 Staff/Public Public Input Meeting August 5, 2025 Council/Staff Review Preliminary Capital Improvement Plan (CIP) August 19, 2025 Council/Staff 2026 Budget Overview September 16, 2025 Council Adopt proposed maximum tax levy for City and Final EDA tax levy. September 30, 2025 Staff Certify maximum tax levy to the County which will be used for proposed property tax notices October 21, 2025 Council Adopt final 2026-2030 CIP Mid -November County Proposed tax notices sent to owners December 2, 2025 Council Hold public meeting to discuss levy and budget. December 16, 2025 Council Adopt final tax levy and budget December 31, 2025 Staff Certify final tax levy and budget to County and State 179 au w O tui -a cio q) O N City Council Meeting September 16, 2025 2026 Budget highlights 0 U i ?) 0 CD E 0 2 4- 0 0000 aJ in f6 aJ L x c 03 0 4J Q aJ O E 0 cu i 00 •— O N v N O D -C N v U . 75 CU aJ V N 2 am x ti o O O ,_ V O a aJ 0 (O O co l.) n.cr c � o � N .C V 0 2 • l/') a) I), •V a+ C .(0 E 0 40 C 73 C — ✓Provides additiona N E aJ 0 2 a E .a v) f6 L.) C v) a) C 0 O • aJ (V C 0 n v) 0 N 2 0 O O 0 O C 03 Property Taxes in MSP Metro Area for a $300,000 Home • • • • • • • • • I • • • • • • • 6 4 • • • o o 0 c 0 v 0 1 11 sexelA;!J 8 8 C N CU N C O a •+r S cv x o cv Q �+ Q O O N a C N 0 0 N • NI c 3 O ss •- O N 0_ O N `i ;6 V _0 a_ N N t CP CI CP CP CP CP CP CP J I CP • CP N t I c +o $.D t e-1 ,.a ' w O r) 43 4,O41 tf 40, EES 0.1t2t: r Levy 5.40% 0 0 0 0 0 0 o O 0 Lt m 0 0 0 0 Ln m 0 NI NI m d- rn Lai ko r< r< r< r< I< r< O O o o O O 0 m t 0 m rn NI r N O cl oo cri m ri m m City Eden Prairie > Cco G) 2 0 C _C UJ o�°�-caio� to fa � a).E - i) 2 2 5 2 FL 2 cn Eagan Edina Bloomington Woodbury Apple Valley Chaska City of Shakopee 2025 Budget and Levy A EII :YTHECRY•FSHAK• EE FINANCE1E A TMENT N • fia LL N N • City Council 3 Wg V c � a rn CC ry 'c_ w c $ r E Om O � J $ • 4 Z A t z—$ aga • Low taxes/stable tax rate • Increase tax capacity 4 n 9 s Administration • a I i 5 tkn a 2 a d X a O • o. O 3 O 0 F- 0_ a v, w u w U cc a, xY Q Er L 0 O O � H 3 o 0-o Y Y U a w Z 2 U a Ca C Vl www.ShakopeeMN.gov/budget a--+ a) E a) V a--0 V 0 a) V V co C fT^ L 1 a) a) Q 0 to CCt CL)r C.) I --I O ct O Pio 69 CO CO CO 0 0 00 O CO O O 71- O O CO I O O ON O 0000 000 • .-i 1— • N N N 59 OO O O O � O O O O I O M N O 00 00 N .--i N ,—I 1--I M ,-- N N N b9 Abatements Capital Improvement Levy Debt Service 2016 Abatement Total Debt Service O 00 tt O O O M O M O O O O N N 1-1,4 0o O o0 O • - in 00 04 N N O N i N N N Total City Levy Shakopee EDA Special Levy Total City and EDA Levies N cm a) f6 _c u >, J ‘4. O %` pa E E v) Levy Impact i$ MV' Ni 69 Ip� OvinMO (Ni ON$p in § M i § d ' r d= Description Revenues (increase) Transfers from other funds (increase) E. Wages & benefits o Internal rent changes One-time adjustments Capital Improvement Levy N 0 Change in property tax levy ^tin W co V a) a) a) cc >.% co a) N O N V1 a) X ra l(17) a O L a cr C= V X O oo M N O ((CI, V N C: cn cn V aJ O N CC • Description Change 0 450,000 331,700 00 0 75,000 0 55,000 45,000 37,000 0 25,000 0000 co State building official grant I (60,000) Change in Revenues $2,133,480 0 Lo 0 0 0 S S 0 0 8 ,� (.O cA SN 1— N 0 L6 N NNI`9 Contracted public safety services (offset with expenses) I Building permit revenues I Community Center revenues Engineering fees — private development Restaurant licenses and inspections (offset with inspector wages and benefits) Police state aid I Municipal State Aid (MSA) maintenance funds Interest income (General fund) SPU pilot fee Fire state aid SandVenture revenues Township fire Agreements Tribal contribution Ice Arena revenues MS4 administration fee Other (net adjustments) Cable franchise fees tin a) cm c co _c a) D c a) > a) cc >• L. co c E El.) a_ N O N Fund operating costs) • Transfers from other city funds (covers Genera c%0 C V3 L U g 0 (D N �- 8 S $24,000 2026 00 88 8 § 00 88 & S 0 N G., 0 p 8 (.6 OB 350,000 p0 8 & Description Public safety fund (patrol officer reimbursement) Self-insurance fund Sewer/storm water (allocation of admin overhead) EDA (allocation of admin overhead) Change in transfers N O N 0 0 0 ( 4-0 C N C ca no C N • Description Change Cost of living adjustment — 3% (3.5°o PW Union) $792,000 Pay step changes 388,000 Compensation study implementation (non-union) 320,000 Public safety OT (offset by contracted revenue) 197,000 000 MN Paid Leave (employer contribution) 93,000 Recreation part-time 58,000 Clerk Administrative Assistant (part-time to full-time) 54,000 Fire part-time 51,000 Fire Inspector added July 2025 (half year impact) 49,000 PT Marketing Specialist (split Communication and Rec.) 39,000 Other (net adjustments) 40,700 Workers compensation — reduced rates (295,000) 0 000 r0. CD Na) OP 0 N- N" Health inspector (New) Health Insurance — 8.3% premium increase Elections judges Change in wages & benefits c _c - N 4-0 ro DI O a) v = s c f6 _O a ro v tea, (13U = >, C a)_a a_ v� O'O cu U a E ° Nro m ± ' O `~ •O N O 0 - +-► C N V > p — -0 0m 9—'� v `- a v 0+.Q) O o 0 n - c c 4J }' E N No v ra - .- = m § 2 ti) 4 03 O r O a -0 O1 tocirca a C +-jm .0 8 0 E irc; 7:1-5-6 (i.:\) v7 -ccm CO a) 0 `� C QIA ) W � O � O � � O 0.� .(1 �2 � ���0�.�0D,co a) via 0 O'Ou 0_ can ti) }" -0 E iN O V ln* 2 - a) a_7c = N '- 2 • • O a_ o_E a_ V Compensation Study r Shakopee (non-union employees) 9 f) N CrJ 9 LO 0-5 �Jt E a_ N O N expenditures ($961,010) • Change in operationa Description Change 0 O M d9 000 0 '— %— '— 72,500 0000 I• M CO CO Building permit credit card fees 25,000 Finance Contracts (assessing/audit/actuary) 24,000 Fire — training 18,100 0. 0 0 0) fA Public Safety — amphitheater contracted costs (offset by revenue) Engineering contracted construction inspections Contingency Misc. supply and services (net adjustments) Utilities (electric/water/gas) County prosecution costs Fire — turnout gear/uniforms Community center cleaning contract Fire — supplies, minor equipment rPark restroom cleaning contract Change in operational expenses 1 CU W O) C 03 U 22 p C 4U a X L1J C E L a_ q) N O N • Rent Charges ($359,200) vi i fa 0 C CD w E 0 n cr au cu C 0 V CD C O *+7, ki— ki— ncreases a resu • Change $1751700 0 00 NNr pC O 0 1� 0 N 2 Description Equipment Rent A c Park Facilities Rent Information Technology Rent Change in internal rent charges Ce m m n future) ($93,000) • One-time Adjustments (not recurring 4) C CO .C C) O O O LC) O O U) ti O O O co C co O a) C N OC a) Q. acai o O O CG 0 N O 0 0 C a) a) E C O i) .c a) CC a) v -a O C L J LL a U) C C 5 m ca V • E 4 4) C 0 C C as . c V W P1 co U mprovement Levy (Proposed ca V C 0 ion to $1.5 mi • Proposing a $300,000 increase (from $1.2 mi 0 U i — > - VI i L- (1) C C : -0 O _O O = _ LL O E E ca —J N +� dJ OO C v O L7 ti, LA co D co co 0 •- > > N X O ;o '2 ra Cl.) J - z• 'EL' j1 Cd . . aJ > . a cL . • • $4.2 million bond issue in 2022. ion (Levy, Franchise fees) Funding - $2.15 mi a+ H al N O N 00 N 0 N 0 N C C L U • ° c+, n M ti N to co 8 O co 8 0 0) M I- to an M n Capital Improvement Fund O E fa Q O C c O tea) I C a• te-+ v > - rcs cn C E E p o i Q M v N O O * CU 03 > a--+ a) L_ co E -o a) -I—+ co E a N 'V O 0 co O O O a) a--+ E > a) Q 0 w N m I I E 'X a, E N O . +-+ CU i ) rox ro a) E ate-+ X ta O1 c c Q O a a) :.,:x fa o aT a a . a) Q 0 a a) E 4J ro +JJ N Q O a o v ra t; a) v 4I 2 . 73 C LL a) C a) L9 s 0 4-0 0 k. 0 k c .O cn o a) C a) 0 o_ O 2 o_ N 'C aJ n > O •W V 2 'V w a--+ u c CU LA 4 J ( O c Ea' O o CU 0-� co q i 3 E 2 O CU N a� � L9 o C E O • 0s >1 U • Q O V N E aJ>L_ O ✓ C ' V _ Ts c in a, . Q 0 w CD a+a 4— O VI O V 4— s 4— O 0 V CU 01) 4J C •O 4J N f6 'V f6 as E 0 U- . N ro C 0 0 0 0 O V) O > J Q 0 w N 0 N Ln 0 Q O 2 O_ W m ra L co W i co X co H New construction accounts for $269 million or 57.8% of the increase Market Value d a. O Y co t N ) V N ca N Q ro a O 7.)>< a) a) co ro ro Cr.) Q • I Percentage 4-(0 O o ,- 0 O L() 59% I 0 30% I O O O O 0 O O Number of Residential Properties 187 70 693 7,773 503 O O M 12 CO N 13,143 Estimated Market Value Value Range Increase/Decrease o + O L() + +10.01-15.00% O O O i O Lfj + O , O O+ INo Change o O Ln O O O O O O O O o ' I x- O Ln I -10.00 - 15.00% + 0 O LC) Fiscal Disparities (net contribution 8 Q. co • 6n 2 6n (NJ 8 X co rq — 0 8 0 0 0 a O o � N pa 4a rel sr c▪ n 'zr 1.O 11. N vy do r N crl 1-1 e, 4-1 8 ry xr. Fiscal Disparities Adj. Historical City Tax Rates CW 05 M �d m m m N N C CV C N C N ra v g v► o c� 0 0 0 0 0 O 0 0 0 0 0' o cr in m N N 0 in V1 N Vf VT 4.4 1./1 V? ■ Annual City Taxes ■ Estimated Market Value O c;') gOs I eon I T1 '4 0 0 ENT .� i ff1 1 2 d rt 1f 0 'fie -a .r4 i.6'etbv 74. SS' $ F Cif 3 J Property Taxes Budget Calendar in N O N R E 4- ra U a a V C as a C a) E aa) > O a E Tts V as 3 C w C .> a) a O v a, '> -o cc m August 6, 2025 a) O- 92 -o rz a) a--5, rO F, C > a) a) O a O a a) .> a) oc August 19, 2025 Adopt proposed maximum tax levy for City and EDA. C 0 V September 16, 2025 a) t v t C v O • 4 V O a) x _c x as O >. >s > aJ a) � x L co a E a, D L E a 'X O • a v VICU V = 4- co (J) September 30, 2025 V C 0 V October 21 2025 C m O V Mid -November November a) .� v cc +-; a) cm 73 ID 73 C cc v ' N N N O a N v, O N ▪ 2 C >, a)= a +P C V > O ro O c 2 cis C D 0 U December 2, 2025 C 0 V December 16, 2025 December 31, 2025 evies for taxes Q M_C vn or) a--' >1 r O N O >> i +-• cu cu OO O > 4J +a O V1 > �_ N cn Ni E a Q co 0 0) .c5 2v' 9 4 -,cu 2cE 2 CD a �� 4D U cn 03OO03 ki 4-0 O N �' w O • —tn O O O c cu a, c/1 VI (NI ,c, (NI O N ��,- O oN0NCC NI ec c o�°� cc tea) c>O • — 0 •— O 0 aJ •- V +_J au .+7.+ J — •5 - C 2_a D3 =≥ro a) -0s o > t0 0 C _CD� CSC 0_ CC Uu CC O ti) 0 U 2026 Annual Budget GENERAL FUND SUMMARY Actual Actual Budget Requested 2023 2024 2025 Budget 2026 TAXES SPECIAL ASSESSMENTS LICENSES AND PERMITS INTERGOVERNMENTAL CHARGES FOR SERVICES FINES AND FORFEITURES MISCELLANEOUS 20,790,614.32 56,189.70 6,393,007.06 5,592,884.81 5,425,467.91 327,215.22 1,470,310.13 22,730,797.52 23,446,450.00 24,581,880.00 19, 707.86 17, 000.00 17, 000.00 5,542,102.05 3,810,750.00 4,392,000.00 6,035,453.77 5,430,000.00 5,617,250.00 5,019,846.73 5,236,800.00 6,548,180.00 296,452.31 325,200.00 325,200.00 1,282,629.27 537,100.00 625,700.00 TOTAL REVENUES GENERAL GOVERNMENT PUBLIC SAFETY PUBLIC WORKS RECREATION UNALLOCATED DEBT SERVICE CAPITAL OUTLAY 40,055,689.15 40,926,989.51 38,803,300.00 42,107,210.00 (5,272,823.10) (5,855,274.00) (16,248,819.34) (18,491,479.13) (7,539,353.18) (7,796,890.41) (5,017,323.89) (5,198,428.06) (34,004.24) (7,800.00) (64,781.17) (107,574.11) (296,648.07) (176,258.69) (6,039,670.00) (6,577,150.00) (19,386,190.00) (21,424,230.00) (8,398,550.00) (8,771,130.00) (5,558,990.00) (5,997,100.00) (127,900.00) (237,600.00) 0.00 0.00 (168,000.00) 0.00 TOTAL EXPENDITURES TRANSFERS IN PROCEEDS FROM SALE OF ASSETS BOND PROCEEDS TRANSFERS OUT (34,473,752.99) (37,633,704.40) 400,000.00 0.00 85,898.43 (4,048,650.00) 495,552.73 0.00 167,921.96 (2,460,000.00) (39,679,300.00) (43,007,210.00) 876,000.00 900,000.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL OTHER FINANCING COMMITTED FUNDS - BUILDING INSPECTIONS ASSIGNED FUND BALANCE- SAND VENTURE NET (3,562,751.57) (1,796,525.31) 126,000.00 0.00 0.00 200,000.00 2,145,184.59 1,696,759.80 876,000.00 900,000.00 0.00 0.00 0.00 0.00 0.00 0.00 206 2026 Annual Budget GENERAL FUND EXPENDITURES BY DIVISION Division Actual 2023 Actual 2024 Budget 2025 Requested Budget 2026 01000 - GENERAL FUND 00 - N/A 11 - MAYOR & COUNCIL 12 - ADMINISTRATION 13 - CITY CLERK 15 - FINANCE 17 - PLANNING & DEVELOPMENT 18 - FACILITIES 31 - POLICE DEPARTMENT 32 - FIRE 33 - BUILDING INSPECTIONS 41 - ENGINEERING 42 - STREET MAINTENANCE 44 - FLEET 46 - PARK MAINTENANCE 67 - RECREATION 91 - UNALLOCATED 133.16 175,970.93 2,322,234.58 514,431.68 1,063,151.88 587,877.61 670,731.96 11,019,755.20 3,662,338.66 1,774,234.20 1,204,737.07 2,591,333.03 469,800.21 3,279,144.71 5,095,251.08 42,627.03 1,859.40 135,799.56 2,660,747.36 605,908.37 1,124,343.22 811,304.94 602,887.81 12,361,362.08 4,221,604.15 2,045,022.67 1,348,073.75 2,565,925.01 520,525.66 3,368,809.02 5,251,731.40 7,800.00 0.00 205,900.00 2,726,280.00 480,700.00 1,166,950.00 765,540.00 694,300.00 12,973,990.00 4,448,100.00 2,132,100.00 1,430,500.00 2,846,050.00 607,800.00 3,514,200.00 5,558,990.00 127,900.00 0.00 196,400.00 2,951,650.00 633,900.00 1,226,150.00 902,450.00 666,600.00 14,260,280.00 4,847,700.00 2,316,250.00 1,631,700.00 2,894,450.00 603,170.00 3,641,810.00 5,997,100.00 237,600.00 Total 01000 - GENERAL FUND 34,473,752.99 37,633,704.40 39,679,300.00 43,007,210.00 207 2026 Annual Budget GENERAL FUND DETAIL Object Account Actual Actual 2023 2024 Budget 2025 Requested Budget 2026 01000 - GENERAL FUND REVENUES: 4011 - CURRENT PROPERTY TAX 4012 - DELINQUENT PROPERTY TAX 4013 - MARKET VALUE CREDIT 4015 - FISCAL DISPARITIES 4020 - MOBIL HOME TAX 4025 - PAYMENT IN LIEU OF TAXES 4031 - EXCESS TAX INCREMENT 4032 - TAX ABATEMENT 4035 - TAX PENALTY AND INTEREST 4040 - OTHER TAXES 4202 - CABLE FRANCHISE 4203 - TRACK FRANCHISE (18,184,893.36) (20,123,259.21) (21,038,150.00) (22,241,780.00) 0.00 (1,988.94) (2,330,925.56) (190.51) (43,284.55) 0.00 157,166.00 (7,482.80) (8,595.68) (357,688.22) (12,730.70) 0.00 195,700.00 (1,889.26) 0.00 (2,226,685.98) (2,317,000.00) (185.52) 0.00 (44,171.13) (39,000.00) (70,652.16) 0.00 84,806.00 120,000.00 (6,053.38) (5,000.00) (8,193.25) 0.00 (322,029.93) (350,000.00) (12,483.70) (13,000.00) 195,700.00 0.00 (2,309,000.00) 0.00 (40,000.00) 0.00 120,000.00 (5,000.00) 0.00 (315,000.00) (12,000.00) TAXES 4110 - SPECIAL ASSESSMENT PRINCIPAL 4111 - SPECIAL ASSESSMENT INTEREST 4112 - SPECIAL ASSESSMENT PENALTY & INTEREST 4120 - SPECIAL ASSESSMENT PREPAYMENTS (20,790,614.32) (22,730,797.52) (23,446,450.00) (24,607,080.00) (50,722.14) (4,186.06) (273.79) (1,007.71) (17,429.65) (1,218.51) (285.80) (773.90) (15,000.00) (2,000.00) 0.00 0.00 (15,000.00) (2,000.00) 0.00 0.00 SPECIAL ASSESSMENT 4210 - RENTAL HOUSING LICENSE 4220 - LIQUOR LICENSE 4230 - BEER LICENSE 4240 - TOBACCO LICENSE 4242 - ANIMAL LICENSES 4243 - MISC LICENSE 4251 - BUILDING PERMITS-NON-RESIDENTI 4252 - BUILDING PERMITS -NEW RESIDENTI 4255 - RE -ROOF PERMIT 4256 - WINDOWS -DOORS -RESIDING 4259 - PLAN REVIEW FEE-NON-RESIDENTIA 4260 - PLAN REVIEW FEE -NEW RESIDENTIA 4261 - PLUMBING PERMITS 4265 - MECHANICAL PERMITS 4267 - ELECTRICAL PERMITS 4272 - SEWER & WATER PERMITS 4274 - FIRE INSPECTION PERMITS 4275 - RENTAL HOUSING INSPECTIONS 4280 - ROW PERMITS 4299 - ELECTRONIC RECOVERY FEE (56,189.70) (48,860.00) (192,542.50) (2,830.00) (14,600.00) (10,110.00) (17,694.00) (1,734,220.63) (621,109.67) (573,127.69) 0.00 (999,855.15) (242,265.79) (281,956.08) (379,981.62) (437,814.50) (48,111.78) (60,191.61) 0.00 (112,960.65) (614,775.39) (19,707.86) (203,260.00) (220,304.56) (3,684.14) (14,800.00) (10,895.00) (18,004.00) (928,227.31) (1,219,544.95) (363,630.69) 0.00 (675,626.77) (390,916.49) (182,559.52) (243,733.18) (244,696.90) (97,983.12) (53,232.20) 0.00 (159,227.16) (511,776.06) (17,000.00) (125,000.00) (200,000.00) (1,800.00) (11,600.00) (10,000.00) (12,100.00) (875,000.00) (450,000.00) (100,000.00) 0.00 (607,250.00) (200,000.00) (180,000.00) (200,000.00) (250,000.00) (40,000.00) (45,000.00) (25,000.00) (110,000.00) (368,000.00) (17,000.00) (150,000.00) (200,000.00) (2,000.00) (12,000.00) (11,000.00) (136,500.00) (900,000.00) (600,000.00) (175,000.00) 0.00 (662,500.00) (300,000.00) (200,000.00) (200,000.00) (190,000.00) (75,000.00) (48,000.00) (20,000.00) (110,000.00) (400,000.00) LICENSES AND PERMITS 4410 - FEDERAL GRANTS 4450 - STATE GRANTS & AIDS 4460 - STATE AID - MAINT 4462 - STATE AID - FIRE 4465 - STATE AID - POLICE 4467 - POLICE TRAINING REIMBURSEMENT (6,393,007.06) (158,624.59) (208,759.67) (571,778.00) (391,069.29) (532,674.27) (49,499.72) (5,542,102.05) (123,422.59) (658,674.46) (623,609.00) (447,447.91) (600,112.87) (47,641.19) (3,810,750.00) (16,000.00) (213,000.00) (624,000.00) (345,000.00) (530,000.00) (50,000.00) (4,392,000.00) (16,000.00) (130,250.00) (699,000.00) (390,000.00) (630,000.00) (45,0 208) 2026 Annual Budget GENERAL FUND DETAIL Object Account 4482 - COUNTY GRANTS/AIDS 4490 - OTHER GRANTS/AIDS 4705 - SPUC REVENUE CONTRIBUTION Actual 2023 (26,613.45) (2,500.00) (3,651,365.82) Actual Budget Requested 2024 2025 Budget 2026 (26,174.05) (22,000.00) (22,000.00) (15,553.70) 0.00 0.00 (3,492,818.00) (3,630,000.00) (3,685,000.00) INTERGOVERNMENTAL 4511 - ADMINISTRATIVE CHARGES 4513 - SALE OF DOCUMENTS 4527 - RECORDING FEE 4572 - SIGNS 4577 - AUAR 4587 - PLANNING/ZONING APPLICATIONS 4620 - ENGINEER FEE - PRIVATE 4621 - ENGINEER FEE - PUBLIC 4622 - PARK FEE - PUBLIC 4630 - GRADE FEE 4642 - CONTRACTED SERVICES 4643 - VALLEY FAIR 4646 - FALSE ALARMS 4647 - TRIBAL CONTRIBUTION 4660 - FIRE SERVICES 4680 - MISC PUBLIC WORKS 4681 - CAR/TRUCK WASHES 4751 - REFUSE CHARGES 4761 - MEMBERSHIP - DEFERRED REVENUE 4762 - MEMBERSHIPS 4766 - GENERAL ADMISSIONS 4768 - SKATE SCHOOL ADMISSION 4770 - LESSONS 4774 - ICE RENTAL - PRIME TAXABLE 4775 - ICE RENTAL - PRIME EXEMPT 4780 - YOUTH ACTIVITIES 4794 - ADULT SPORTS 4795 - ADULT ACTIVITIES 4796 - ROOM RENTALS 4797 - ROOM RENTAL- NONTAXABLE/EXEMPT 4798 - PARK FACILITY RENTAL 4799 - PARK FIELD RENTALS 4800 - SKATE SHARPENING 4801 - DAMAGE DEPOSIT 4808 - PARK FAC. RENT - NONTAX/EXEMPT 4810 - CONCESSION STANDS 4811 - FIRE BOXES- TAX EXEMPT ENTITY 4812 - VENDING CONCESSION COMMISSION 4816 - NON-RESIDENT FEE/TOWNSHIP PYMT 4817 - ARENA ADVERTISING 4818 - OTHER RECREATION FEES (5,592,884.81) (6,035,453.77) (5,430,000.00) (5,617,250.00) (60,337.13) (503.25) (25.00) (15,225.00) (128,834.80) (90,750.00) (891,015.86) (153,609.62) (14,056.47) (215,089.39) (505,827.27) (46,195.50) (7,670.00) (150,000.00) (240,822.00) (1,457.00) (7,571.00) (21,637.96) (8,451.00) (792,250.34) (481,018.31) (72,641.08) (106,359.22) (228,657.24) (548,377.50) (144,369.33) (28,406.00) (51,533.00) (190,733.61) (4,691.71) (9,932.36) (4,128.38) (8,240.85) 225.00 (27,795.00) (82,516.52) 0.00 (11,952.36) 0.00 (69,374.50) (3,637.35) (42,403.66) (1,412.00) (45.00) (35,301.00) (216,809.00) (73,631.00) (544,930.17) (189,638.10) (1,126.38) (289,326.19) (550,120.09) (40,685.12) (11,285.00) (175,000.00) (265,027.09) 0.00 (8,255.00) (26,405.85) 10,840.00 (629,864.93) (367,726.53) (69,169.21) (127,012.50) (287,333.38) (525,855.00) (145,041.75) (31,076.50) (58,621.30) (171,644.87) (9,404.45) (5,872.72) (2,162.11) (3,641.25) 900.00 (26,240.00) (16,422.24) 0.00 (12,869.33) 0.00 (65,415.00) (4,813.01) (40,000.00) (400.00) 0.00 (13,000.00) (45,000.00) (50,000.00) (450,000.00) (425,000.00) (15,000.00) (172,000.00) (606,500.00) (40,000.00) (10,000.00) (175,000.00) (290,000.00) 0.00 (11,700.00) (24,000.00) 0.00 (708,000.00) (614,000.00) (65,000.00) (116,000.00) (300,000.00) (485,000.00) (162,000.00) (25,000.00) (50,000.00) (142,000.00) (19,000.00) (32,000.00) (4,000.00) (7,000.00) (6,000.00) (30,000.00) (27,500.00) 0.00 (13,000.00) (2,200.00) (60,000.00) (1,500.00) (66,000.00) (480.00) 0.00 (17,000.00) (45,000.00) (65,000.00) (600,000.00) (425,000.00) (15,000.00) (190,000.00) (1,236,600.00) (40,000.00) (10,000.00) (200,000.00) (290,000.00) 0.00 (11,700.00) (24,000.00) 0.00 (829,000.00) (827,000.00) (70,000.00) (132,000.00) (300,000.00) (490,000.00) (182,000.00) (30,000.00) (64,000.00) (166,200.00) (23,000.00) (35,000.00) (4,000.00) (10,000.00) (2,000.00) (30,000.00) (18,000.00) 0.00 (14,000.00) 0.00 (60,000.00) (1,000.00) CHARGES FOR SERVICES 4821 - FINES & FORFEITS 4822 - FINES & FORFEITURES - TO COUNTY (5,425,467.91) (36,892.90) (290,322.32) (5,019,846.73) (1,030.35) (295,421.96) (5,236,800.00) (200.00) (325,000.00) (6,522,980.00) (2nn nn) (325,0 209) 2026 Annual Budget GENERAL FUND DETAIL Object Account Actual 2023 Actual 2024 Budget 2025 Requested Budget 2026 FINES & FORFEITS 4833 -INTEREST 4834 - CHANGE IN FAIR MARKET VALUE 4841,4964 - LEASE RENT/REVENUE 4843 - COMMISSIONS 4845 - CONTRIBUTIONS/DONATIONS 4530 - ANTENNA RENTAL 4850 - MISCELLANEOUS 4853 - INSURANCE REIMBURSEMENT 4855 - SALE OF ASSETS (327,215.22) (566,465.74) (462,573.00) (44,806.25) (1,650.00) (29,721.00) (598.36) (403,341.54) (3,544.51) (2,415.98) (296,452.31) (698,011.38) (382,516.83) (56,508.83) (900.00) (31,208.31) (1,049.90) (158,715.32) (3,889.90) (6,337.63) (325,200.00) (475,000.00) 0.00 0.00 0.00 (38,000.00) (600.00) (23,500.00) 0.00 0.00 (325,200.00) (550,000.00) 0.00 0.00 0.00 (26,000.00) (16,200.00) (33,000.00) 0.00 (500.00) MISCELLANEOUS (1,515,116.38) (1,339,138.10) (537,100.00) (625,700.00) REVENUES EXPENDITURES: 6002 - WAGES 6005 - OVERTIME -FT 6010 - PREMIUM PAY 6015 - WAGES - PART TIME/TEMP 6017 - OVERTIME -PART TIME/TEMP (40,100,495.40) (40,983,498.34) (38,803,300.00) (42,107,210.00) 13,936,844.03 538,406.25 2,455.50 1,773,835.36 39,587.22 15,484,448.59 648,710.10 15,811.20 1, 724, 678.98 25,240.12 16,991,100.00 780,500.00 12,000.00 1,750,000.00 29,300.00 18,398,400.00 945,900.00 12,000.00 1,924,100.00 29,300.00 WAGES 6122-PERA 6124 -FICA 6135 - HEALTH 6136 - PAID FAMILY LEAVE 6139 - POST EMPLOYMENT HEALTH PLAN 6140 - LIFE/LTD 6145 - DENTAL 6160 - UNEMPLOYMENT 6170 - WORKERS COMPENSATION 6180 - COMPENSATED ABSENCES 6186 - PENSION EXPENSE 16,291,128.36 1,730,244.09 764,459.52 1,699,945.16 0.00 80,537.65 37,879.87 65,759.85 0.00 816,980.60 444,066.27 23,631.00 17,898,888.99 2,007,896.64 828,097.83 1,984,701.97 0.00 84,537.19 40,248.64 67,586.02 14, 085.44 678,923.15 903,355.33 357,389.00 19,562,900.00 2,269,600.00 948,800.00 2,721,900.00 0.00 92,200.00 46,400.00 92,200.00 0.00 978,800.00 313,700.00 90,000.00 21,309,700.00 2,498,300.00 1,035,100.00 2,848,300.00 89,800.00 94,100.00 49,900.00 94,100.00 0.00 767,700.00 340,200.00 90,000.00 BENEFITS 5, 663, 504.01 6,966,821.21 7, 553, 60 0.00 7,907,500.00 WAGES & BENEFITS 6202 - SUPPLIES 6204 - MINOR EQUIPMENT (NOT CAPITALIZED) 6212 - UNIFORMS/CLOTHING 6213 - MEETINGS 6215 - MATERIALS 6222 - FUEL 6240 - EQUIPMENT REPAIR & MAINTENANCE 6250 - MERCHANDISE FOR RESALE 6310 - ATTORNEY 6312 - ENGINEERING/DESIGN CONSULTANTS 6315 - BUILDING REPAIRS & MAINTENANCE 6322 - PAVEMENT PRESERVATION 6326 - CLEANING SERVICES 6327 - PROFESSIONAL SERVICES 21,954,632.37 580,254.73 9,432.91 163,797.21 12,688.11 178,986.06 261,376.56 365,855.46 36,540.72 475,880.30 128,628.08 396,452.79 559,774.26 130,548.07 1,417,625.86 24,865,710.20 505,457.07 44,824.48 163,471.61 14, 540.15 181,308.21 211,970.27 312,036.76 317.90 480,370.00 214,411.68 300,218.68 599,649.86 137,774.61 1,262,160.53 27,116,500.00 1 664,930.00 31,500.00 135,100.00 15,200.00 238,100.00 289,100.00 289,100.00 2,000.00 543,400.00 60,000.00 338,000.00 613,000.00 159,000.00 ,159,300.00 29,217,200.00 791,000.00 30,000.00 174,400.00 15,200.00 187,100.00 270,400.00 295,500.00 2,500.00 595,000.00 230,000.00 321,100.00 618,000.00 239,: 210 1,501,, 2026 Annual Budget GENERAL FUND DETAIL Object Account Actual Actual 2023 2024 6332 - POSTAGE 6334 - TELEPHONE 6336 - PRINTING/PUBLISHING 6338 - ADVERTISING 6339 - CABLE/INTERNET 6351 - INSURANCE PREMIUM (IS FUND) 6362 - ELECTRIC 6364 - WATER 6365 - GAS 6366 - SEWER 6367 - REFUSE 6368 - STORM 6410 - SOFTWARE 6415 - INFORMATION TECHNOLOGY RENT (IS FUND) 6420 - EQUIPMENT LEASES 6425 - EQUIPMENT RENT (IS FUND) 6430 - BUILDING RENT (IS FUND) 6435 - OTHER RENT 6440 - PARK RENT (IS FUND) 6472 - CONFERENCE/SCHOOL/TRAINING (ALL EXPENSES) 6476 - MILEAGE 6480 - DUES 6490 - SUBSCRIPTIONS/PUBLICATIONS 6471 - WELLNESS PROGRAM 37,269.51 20,790.38 88,784.65 75,102.41 91,138.37 83,303.60 4,239.14 2,030.72 30,519.25 35,332.30 388,000.00 342,700.00 807,050.86 791,351.18 75,703.61 57,635.21 235,604.74 206,337.18 25,381.46 30,278.49 16,675.87 23,999.48 37,573.83 36,106.05 671,714.06 694,985.91 595,000.20 634,499.76 2,458.18 7,149.92 1,364,700.00 1,579,299.96 1,185,499.92 1,353,199.92 17,303.78 20,192.37 635,900.04 659,100.00 234,362.38 298,082.03 39.43 2,204.58 180, 732.68 159, 350.55 3,800.84 3,555.51 8,925.24 12,616.58 1 1 Budget 2025 29,500.00 93,200.00 97,600.00 7,200.00 30,140.00 359,900.00 766,600.00 63,100.00 235,800.00 21,300.00 15,000.00 37,900.00 823,280.00 634,700.00 58,600.00 ,699,300.00 ,378,200.00 21,900.00 669,100.00 236,500.00 4,900.00 191,400.00 6,750.00 12,000.00 Requested Budget 2026 1 1 29,600.00 90,550.00 104,500.00 2,700.00 31,100.00 345,100.00 814,500.00 66,800.00 239,400.00 33,200.00 20,000.00 38,300.00 830,910.00 653,400.00 86,800.00 ,875,000.00 ,503,000.00 26,400.00 709,100.00 289,300.00 5,550.00 194,800.00 5,400.00 12,000.00 SUPPLIES AND SERVICES 6620 - PROPERTY TAX/SPECIAL ASSESS 6630 - PAYMENT TO FIRE RELIEF 6640 - DESIGNATED MISCELLANEOUS 6645 - SERVICE AWARDS 6650 - CREDIT CARD FEES 6660 - BANK FEES- NSF FEE 6661 - CASH SHORT 6670 - RECREATION SCHOLARSHIPS 6681 - CONTINGENCY 11,456,219.16 25,604.24 393,069.29 5,741.86 5,177.89 270,568.83 58.96 66.65 1,184.50 0.00 11,557,715.90 0.00 551,925.36 5,106.19 4,399.86 363,770.43 (98.75) 237.91 1,104.50 0.00 12,031,600.00 0.00 0.00 50,000.00 5,000.00 231,900.00 100.00 0.00 1,200.00 75,000.00 13,278,610.00 0.00 0.00 50,000.00 5,000.00 270,000.00 100.00 0.00 1,200.00 185,100.00 MISCELLANEOUS EXPENSE 6720 - ROW/EASEMENTS 6730 - BUILDINGS 6740 - EQUIPMENT 6745 - SOFTWARE 6765 - IMPROVEMENTS/INFRASTRUCTURE 701,472.22 926,445.50 5,661.84 13,844.00 247,844.82 29,297.41 0.00 0.00 6,167.46 84,935.64 85,155.59 0.00 363,200.00 0.00 0.00 168,000.00 0.00 0.00 511,400.00 0.00 0.00 0.00 0.00 0.00 CAPITAL OUTLAY 6835 - LEASE INTEREST PAYMENT 6836 - SBITA INTEREST PAYMENT 6830 - CAPITAL LEASE PAYMENT 6831 - SBITA PRINICPAL PAYMENT 296,648.07 7,816.94 862.91 41,244.01 14,857.31 176,258.69 5,077.49 1,618.99 65,157.91 35,719.72 168,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 DEBT SERVICE 64,781.17 107,574.11 0.00 2026 Annual Budget GENERAL FUND DETAIL Object Account Actual 2023 Actual 2024 Budget 2025 Requested Budget 2026 EXPENDITURES OTHER FINANCING: 8010 - TRANSFER IN FROM GENERAL FUND 8013 - TRANSFER IN FROM ENTERPR FUND 8015 - TRANSFER IN FROM IS FUND 8018 - TRANSFER IN FROM SPEC REV FUND 34,473,752.99 37,633,704.40 39,679,300.00 43,007,210.00 (400,000.00) 0.00 0.00 0.00 (400,000.00) 0.00 0.00 (95,552.73) 0.00 (400,000.00) (350,000.00) (126,000.00) 0.00 (400,000.00) (350,000.00) (150,000.00) TRANSFERS IN 8054 - TRANSFER OUT TO DEBT FUNDS 8056 - TRANSFER OUT TO CAPITAL FUNDS 8057 - TRANSFER OUT TO IS FUND 348,650.00 3,700,000.00 0.00 (400,000.00) (495,552.73) (876,000.00) (900,000.00) 346,000.00 0.00 0.00 1,114,000.00 0.00 0.00 1,000,000.00 0.00 0.00 TRANSERS OUT 4,048,650.00 2,460,000.00 0.00 0.00 GAIN/LOSS ON DISPOSAL OF ASSET 4962 - CAPITAL LEASE ISSUED 4966 - SBITA ISSUED PROCEEDS FROM DEBT/LEASE ISSUED 0.00 (11,794.77) (29,297.41) 0.00 (36,257.54) (75,155.59) (41,092.18) (111,413.13) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 OTHER FINANCING 3,607,557.82 1,853,034.14 (876,000.00) (900,000.00) Total 01000 - GENERAL FUND (2,019,184.59) (1,496,759.80) 0.00 0.00 212 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 9.b September 16, 2025 Policy on Modification and Enhancement of City Property by Non -City Organizations and Groups William Reynolds, City Administrator Action to be considered: Approval. Motion Type: Simple Majority Background: The City of Shakopee has a long tradition of partnering with private groups to enhance our public spaces. This partnership has led to many improvements in our facilities. However, the city has no policy to ensure that a coherent process is followed in approving these projects, nor to ensure that all groups are being treated equitably and fairly. In addtion, the city needs to ensure the process is tranparent to all, and aligns with City plans and goals, and complies with policies and ordinances. Also to be considered with any donation or proposal to change city property is the ultimate cost of maintenance and replacement and establish responsibility for those items. This policy will ensure that all proposals have the same requirements and outlines a process to move them forward. As part of the process, proposals must be fully planned, budgeted with an estimated timeline and maintenance plan. Except in emergency situations, proposals must be timed to be included in our capital planning process. Once submitted, proposals will be reviewed by necessary staff - and possibly offered for public comment- and presented to City Council in a workshop. If approved projects will include a Memorandum of Understanding outlining future responsibility for the improvement. All projects will have to comply with City requirements throughout the construction process. Due to the long-standing ban on outdoor advertising on City property and the Cities own sponsorship efforts in the Ice Arena, proposals featuring any advertising or naming rights 213 will not be considered. Recommendation: Approval of the Policy on Modification and Enhancement of City Property by Non -City Organizations and Groups. Budget Impact: Unkown, but having a policy in place that will require groups to submit future maintenance plans should curb the city's responsibilities for maintenance and replacement if desired. Attachments: Policy on Modification and Enhancement of City Property.docx 214 SHAKOPE E Policy on Modification and Enhancement of City Property by non - City organizations and groups Adopted: TBD Amended: POLICY CONTENTS I. ISSUING AUTHORITY 1 II. Purpose 1 III. Scope 2 V. Proposal Submission Requirement 2 VI. Timeline for Submission 2 VII. Approval Process 3 VIII. Implementation 3 IX. Advertising & Fundraising Restrictions 4 I. ISSUING AUTHORITY City Council through City Administrator. II. PURPOSE The City of Shakopee values strong partnerships with community organizations and recognizes that associations often wish to contribute to capital improvements at city -owned property including park and recreation facilities. While these contributions enhance community amenities and promote shared stewardship, a subsequent city financial burden for maintenance and replacement often occurs. A formal process for proposed modification and enhancement of City Property by non -City organizations and groups is essential to ensure alignment with city goals, compliance with policies and ordinances, and effective coordination. This policy establishes a clear, consistent, and transparent process for external organizations to propose, fund, and implement improvements to City of Shakopee's property and facilities. It outlines proposal requirements, timelines, and the approval process to ensure all projects serve the public interest, support long-term maintenance standards, and align with adopted master plans. 215 III. SCOPE This policy applies to all donations for improvements or alterations to city -owned property and facilities. This includes, but is not limited to, facility upgrades, athletic field enhancements, and the installation of permanent structures or amenities funded in whole or in part by an external organization. IV. PROPOSAL SUBMISSION REQUIREMENT All organizations wishing to make alterations or improvements to a city facility must submit a written proposal to the City Administrator that includes the following: 1. Project Description o Overview of the proposed improvement o Rationale for the project, including community benefit o Specific location(s) and/or facilities affected 2. Conceptual Plans or Drawings o Renderings and site plans o Material specifications or product descriptions o Land surveys and photos may be required depending upon site location 3. Estimated Budget o Total estimated cost of project o Funding sources and donation type 4. Proposed Timeline o Desired start and completion dates o Deadlines for fundraising or contractor engagement 5. Maintenance and Ownership Plan o Responsibility for ongoing maintenance, if any o Proposed lifespan of improvement 6. Point of Contact o Primary contact person representing the association o Contact information V. TIMELINE FOR SUBMISSION To ensure sufficient time for review and alignment with the City's Capital Improvement Plan, proposals must be submitted according to the following timelines: • Projects with a financial impact on the City's operating or capital budget (e.g., increased utility costs) must be submitted no later than May 1 of the year prior to the intended project year. • Projects with no financial impact on the City's budget must be submitted no later than October 1 of the year prior to the intended project year. Page 2 of 4 216 • Off -cycle submissions may be considered for urgent needs or limited -scope improvements. These proposals will be evaluated based on staff capacity and must follow the same review process as regular submissions. These submissions will be the exception and only approved once there is a clear and agreed upon need for a shorter timeline due to safety or other similar reasons. VI. APPROVAL PROCESS • Initial Staff Review and coordination o Proposals are submitted by the City Administrator for review by Parks and Recreation, Public Works, Planning & Development, and Engineering for alignment with city plans, standards, and potential impacts. Coordination will occur between all departments as the process moves forward. • Workshop with the City Council o Project will be presented to the City Council for review, input and general support. Some projects may be required to have public input as part of the review process prior to presentation to City Council. • Review and Modify Proposal for Final Approval o A written agreement or Memorandum of Understanding (MOU) between the City and the sponsoring organization must be executed and include the project scope, timeline, responsibilities and post completion obligations. • Final Approval by City Council o MOU goes to council for final approval. o City Council approval is required for any project involving: ■ Permanent structures or modifications to city infrastructure ■ Projects valued at $1,000 or more ■ Long-term maintenance implications o Once the project is complete, the city council must vote to accept the donation. VII. IMPLEMENTATION Once a project has received formal approval, the following steps will be taken to ensure proper implementation: 1. City -Led Oversight All alteration and improvements to City of Shakopee property must be coordinated and overseen by city staff. All contractors working on the project must be approved by city staff. 2. Agreements A written agreement or Memorandum of Understanding (MOU) between the City and the sponsoring organization will outline project scope, responsibilities, timelines, and any post -installation obligations. Page 3 of 4 217 3. Permits and Inspections All work must comply with city, county, and state regulations and OSHA requirements. Necessary permits must be secured prior to any construction or installation. 4. Project Close -Out Upon completion, city staff will inspect the improvement for quality and safety. The project will not be considered complete until approved by the appropriate departments and the city council has formally accepted the donation. VIII. ADVERTISING & FUNDRAISING RESTRICTIONS The City of Shakopee prohibits the sale of advertising or promotional signage as a form of fundraising or revenue generation on city property with an exception for city advertising sold to offset expenses in the Ice Arena. As such, organizations cannot profit from selling advertisements located on any city property. This includes (but is not limited to) the selling of banner space, fence signage, scoreboard logos, or naming rights in exchange for donations. It also includes any business advertisements as a permanent feature of the improvement. Proposals that include advertising -based funding strategies will be automatically rejected as this violates city ordinances and the city's signage and advertising policies. Page 4 of 4 218 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 9.c September 16, 2025 Discussion of Dog Daycare and Boarding Proposed Ordinance in Residentially Zoned Areas Michael Kerski, Planning and Development Director Michael Kerski Action to be considered: Provide feedback on proposed Ordinance. Motion Type: Informational only Background: Council held a workshop on home occupation businesses that are providing daycare and boarding in residentially zoned areas. The city attorney has provided a draft of a proposed ordinance for discussion. Depending on discussion, this Ordinance would go to the October Planning Commission since it would amend the table of uses and definitions. Recommendation: Provide feedback on draft Ordinance. Budget Impact: N/A Attachments: DOCSOPEN-#1048087-v4-Doggie_Day_Care_Home_Occupation_Ordinance.docx 219 ORDINANCE NO. AN ORDINANCE OF THE CITY OF SHAKOPEE AMENDING SECTION 151.007(G) OF THE CITY CODE RELATING TO HOME OCCUPATION PERMITS FOR DOG DAYCARE THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS: Section 1. Section 151.007(G) of the Shakopee City Code is amended to read as follow: G. Criteria for granting a home occupation. 1. Application for a home occupation shall be made to the Zoning Administrator. 2. An application, meeting all of the following criteria, shall be granted approval upon administrative review by the Zoning Administrator: a. The activity does not involve warehousing, except incidental storage of merchandise offered for sale in connection with the home occupation; b. The home occupation may be carried on by persons residing in the dwelling unit and not more than one employee who does not reside in the dwelling unit; c. Shall provide off-street parking for the employee; d. All material or equipment shall be stored within an enclosed structure; e. Objectionable noise, vibration, smoke, dust, electrical disturbances, odors, heat, glare, or other nuisance factors shall not be discernible at the property line; f. The home occupation shall not create excessive automobile traffic within the neighborhood; g. Shall not have any receipt or delivery of merchandise, goods, or supplies except through the U.S. mail, similar parcel delivery service, or personal vehicles not exceeding one ton; and h. May have outside off-street parking of no more than one commercial vehicle or vehicle identified for business purposes, not to exceed one ton capacity which is used for both personal and business transportation. The vehicle shall be owned by and registered to an occupant of the property and parked in a screened location; and i. Shall meet the zone's off-street parking requirements for all vehicles. 3. In addition to the above criteria, a home occupation permit for the temporary care, keeping, sitting, boarding, or grooming of dogs not owned by the resident of the home must also meet the following criteria. a. A maximum of three (3) dogs, excluding dogs owned by the resident, may be boarded or cared for at the home at any time. The total number of dogs shall not exceed five (5) at any one time; b. Outdoor Activity shall be limited to the rear yard or fenced area of the property; c. Dogs shall not be left outdoors unattended for more than 30 minutes at a time; d. No excessive barking is allowed; e. Dog drop off and pick up shall be limited to 7:00 AM - 9:00 PM; f. Overnight boarding is permitted, provided the total number of days does not exceed 180 days per calendar year; 1 220 g. Adequate off-street parking shall be provided for client drop off and pick up; h. Boarded dogs shall have current vaccinations (i.e., rabies, distemper, Bordetella); i. Record of all animals boarded shall be maintained and made available to the City and other required agencies upon request; j. Sick or aggressive dogs shall not be boarded; k. Commercial Kennels or Large -Scale dog boarding facilities are prohibited in single-family residential zoning districts; and 1. Breeding or the sale of dogs is prohibited. Section 3. Effective Date. This ordinance becomes effective from and after its adoption and publication. Passed in regular session of the City Council of the City of Shakopee, Minnesota held on the day of , 2025. Mayor of the City of Shakopee Attest: Rick Parsons, City Clerk 2 221 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 9.d September 16, 2025 Proposed Changes to Rental Ordinance adding Short Term Rentals. Michael Kerski, Planning and Development Director Michael Kerski Action to be considered: Provide Feedback Motion Type: Informational only Background: Council held a workshop on short term rentals. After additional research on how cities in Minnesota are dealing with short term rentals, staff has worked with the city attorney to draft an Ordinance that amends the current Rental Housing Ordinance to now include Short Term Rentals. This would require inspections and reporting of usage and payment of accommodation taxes. Staff has spoken with other cities that are also tracking usage through available software that identifies properties on the various websites including VRBO and AirBNB to ensure compliance that the properties are registered and tracks number of days that the properties are used for short term rentals. We anticipate that the amphitheater will generate significant short term rental demand. We have already received complaints about existing short term rentals and some issues that they create. Currently there is no clear way to enforce any regulations, which this Ordinance modification will resolve. This item does not require Planning Commission review. Recommendation: Provide feedback to staff and the city attorney. Budget Impact: Inspections would be covered under fees Attachments: 222 DOCSOPEN-#1048334-v2-Short_Term_Rentals_Ordinance.docx 223 ORDINANCE NO. O2025-022 AN ORDINANCE OF THE CITY OF SHAKOPEE AMENDING TITLE XI, CHAPTER 117 RESIDENTIAL RENTAL LICENSING REQUIREMENTS FOR SHORT TERM RENTAL UNITS THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS: SECTION 1. Section 117.01 of the Shakopee City Code is amended to read as follows: 117.01: Purpose. A. The purpose of this section is to protect the public health, safety, and welfare of the community at large, and the residents of residential rental properties in the city. The purpose of this section is also to ensure that rental housing in the City is decent, safe, and sanitary, and is so operated and maintained as not to become a nuisance to the neighborhood or an influence that fosters blight and deterioration or does not create a disincentive to reinvest in the community. It is also to protect neighborhood character, ensure the safety of occupants and neighbors, and secure compliance with City licensing and tax requirements. B. The operation of residential rental properties is a business enterprise that entails certain responsibilities. Owners and operators are responsible for taking such reasonable steps as are necessary to ensure that the residents of the City who occupy such rental properties may pursue the quiet enjoyment of the normal activities of life in their surroundings that are: safe, secure, and sanitary; free from noise, nuisances, or annoyances; and free from conditions that endanger the health or safety of persons; and the security of property. C. This section establishes a program for licensing Residential Rental Property and Units, and Short -Term Rental Units within the City to ensure accountability from owners of rental property to protect tenants and other residents of the City and to provide meaningful enforcement for failure to follow the laws and regulations applicable to rental property. D. The regulation of Short -Term Rental Units under the City's Residential Rental Licensing framework will protect neighborhood character, ensure the safety of occupants and neighbors, and secure compliance with applicable City licensing and taxing requirements. SECTION 2. Section 117.02 is amended to add the following definitions: 117.02: Definitions. For the purpose of this Chapter, the following definitions apply unless the context clearly indicates or requires a different meaning. OWNER -OCCUPIED DWELLING. A dwelling unit that is occupied and used for purposes of a homestead by its owner in accordance with Minnesota Statutes § 273.124, Subd. 1(a). SHORT-TERM RENTAL UNIT An owner -occupied dwelling that is rented for a period of less than 30 consecutive days. 1 224 SECTION 3. Section 117.03 is amended to read as follows: 117.03: Applicability and scope. This Chapter applies to any Property and any Unit therein, that is a Residential Rental Property or a Short -Term Rental Unit, including apartment buildings, town homes, single family homes, multi -family homes, guest and caretaker homes, condominiums, garages, storage buildings, and appurtenances such as sidewalks, driveways, retaining walls and the area adjacent to any residential rental property that is owned by the owner or accessible to the tenants of a residential rental property. This section does not apply to State Department of Health -licensed rest homes, convalescent care facilities, group homes, and nursing homes; hotels, motels; and owner -occupied units. SECTION 4. Chapter 117 is amended by adding Section 117.04 to read as follows: Section 117.04 Requirements for Short -Term Rental Units. In addition to all other requirements in this Section, the following requirements apply to a Short- Teiui Rental Unit: A. The owner must maintain a log of all rental dates and make it available to the City upon request. B. The unit may not be used as a short-term rental unit for more than sixty (60) days in a calendar year; C. The owner must comply with all applicable provisions of this Code. D. The unit must contain operating smoke detectors, carbon monoxide alarms, and fire extinguishers. E. Emergency contact information, occupancy limits, and parking maps must be posted inside the unit. F. Sufficient trash collection service must be provided and the property must comply with City nuisance standards. SECTION 5. Section 117.05 is amended to read as follows: 117.05 License Application. All applications for a rental license must be made as follows: A. Form. All applications must be made by the Applicant at the office of the City Administrator upon forms that have been formulated by the City for such purposes and will contain: 1. Owner's name. 2. Owner's address and length of time at that address, telephone number, and email address. 3. Owner's occupation and length of time held. 4. Owner's address and occupations for the last 3 years. 2 225 5. Names and addresses of Owner's employers for the last three years. 6. Whether or not the Owner has ever been convicted of a felony, gross misdemeanor, or misdemeanor, including violation of a municipal ordinance but excluding traffic violations, and if so, the date and place of conviction and the nature of the offense. 7. Whether the Owner has held a rental license before and the date and location of such license and address of properties licensed. 8. Rental Manager name, address, telephone number and email address. 9. The street address of the Residential Rental Property. 10. Total number of Units in the Residential Rental Property. 11. Proof of payment of most recent property taxes. 12. Proof of Hazard and Fire Insurance and Liability Insurance covering the Residential Rental Property. 13. Indicate Residential Rental Type — Short -Term Rental Unit or Residential Rental Property. 14. For a Short-Teini Rental Unit: a statement certifying that the unit is occupied and used for purposes of a homestead by its owner. Section 6. Publication by Summary. The city council determines that publication of the title and the approved summary of this ordinance would clearly inform the public of the intent and effect of the ordinance and therefore directs that only the title of the ordinance and the approved summary be published. Section 6. Effective Date. This ordinance becomes effective from and after its adoption and publication. Passed in regular session of the City Council of the City of Shakopee, Minnesota held on the day of , 2025. Matt Lehman, Mayor Attest: Rick Parsons, City Clerk 3 226 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee City Council 10.a September 16, 2025 City Bill List Becky Smith, Accounting Specialist Action to be considered: Review of City Bill List Motion Type: Informational only Background: The City Bill has been provided to the City Council. Recommendation: Review of City Bill List Budget Impact: N/A Attachments: 227 PI°ILA' SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 10.b September 16, 2025 News and Announcements Rick Parsons Action to be considered: No action, item is informational only. Motion Type: Informational only Background: Announcements and Upcoming Events: - Shakopee Fall Food Truck Festival • The Fall Food Truck Festival is taking place on Saturday, September 20, 2025, from 11:00 a.m. to 8:00 p.m. at The Landing! Enjoy delicious food and beverages from more than 30 food trucks, plus live music and family -friendly activities throughout the day. - Fall Clean -Up Day • Saturday, October 18, from 7:30 am - 11:30 am at the Public Work's Facility - Cardboard Recycling Bins • The Public Works parking lot at the 500 Gorman Street building will be reconstructed September 15 through October 10. During the construction the cardboard recycling bins will be moved to the Public Works facility at 400 Gorman Street, just North of the current location. - Fall Yard Waste Drop -Off • Dakota Prairie Composting is offering free fall yard waste drop-off from October 1 - 31, 2025. Drop off your yard waste at 12386 Chestnut Blvd. Shakopee residents must show ID. O Monday - Thursday: 7 am - 7 pm o Friday: 7 am - 5 pm O Saturday: 8 am - 2 pm o Sunday: Closed 228 - Fire Department Open House • The Shakopee Fire Department will have their annual Open House on Monday, October 6, from 5:00 - 7:00 pm. This is a free event and no registration is required. - Jackson Commons and Farmstead Bike Park Grand Opening • The Jackson Commons and Farmstead Bike Park grand opening celebration will be on Saturday, September 27, at 10:00 am at the Jackson Commons Park. - Scott County is hosting two public meetings for upcoming transportation projects in partnership with the City of Shakopee • The first meeting will be for the CH16 Modernization Project between CH18 and TH 13. This meeting will be held on Tuesday September 23rd between 4:30 and 6:30 PM at the McColl Pond Environmental Learning Center, located at 13550 Dakota Avenue South in Savage. • The second meeting will be for the CH17 Reconstruction Project. This meeting will be held on Tuesday September 30th between 4:30 and 6:30 PM at the Scott County Public Works building, located at 600 County Trail East in Jordan. Residents interested in learning more about the projects are invited to attend the meetings which will be informal with no presentations given. Recommendation: Please review the information on upcoming news and announcements. Budget Impact: N/A. Attachments: 229