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June 02, 2020 - Council Packet
LAKO Shakopee City Council June 2, 2020 7:00 PM City Hall, 485 Gorman St. 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. Key strategies: 1. F inancial stability 2. Enhancing community strengths 3. Effective public services 4. Communication Mayor Bill Mars presiding 1. Roll Call 2. Pledge of Allegiance 3. Approval of Agenda 4. Consent Business - (All items listed in this section are anticipated to be routine. After a discussion by the Mayor there will be an opportunity for members of the Council to remove any items from the consent agenda for individual discussion. Those items removed will be considered following the Public hearing portion of the agenda. Items remaining on the Consent Agenda will not be discussed and will be approved in one motion.) A. Administration *4. A.1. *City Council Minutes *4. A.2. *2020-2021 Liquor License Renewals *4. A.3. *School Resource Officer Agreement Renewal B. Planning and Development *4. B.1. *Set Public Hearing for Vacation of Public Roadway and Drainage and Utility Easements as Dedicated within Powers First Addition and Jackson Elementary School *4. B.2. *Preliminary Plat of Windermere South 3rd Addition C. Public Works and Engineering Page 1 of 508 *4. C.1. *2020 Trail Rehabilitation and Trail Reconstruction Projects *4. C.2. *Quarry Lake Park Road 5. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL - Provides an opportunity for the public to address the Council on items which are not on the agenda. Comments should not be more than five minutes in length. The Mayor may adjust that time limit based upon the number of persons seeking to comment. This comment period may not be used to make personal attacks, to air personality grievances, to make political endorsements or for political campaign purposes. Council Members will not enter into a dialogue with citizens, and questions from Council will be for clarification only. This period will not be used to problem solve issues or to react to the comments made, but rather for informational purposes only. 6. Business removed from consent will be discussed at this time 7. Recess for Economic Development Authority Meeting 8. Reconvene 9. General Business A. Administration 9. A.1. 2019 Annual Financial Report, Audit Presentation and Review by Staff from Abdo, Eick & Meyers 9. A.2. Sale of General Obligation Tax Increment Revenue Bonds, Series 2020A, in the Original Aggregate Principal Amount of $8,165,000 B. Planning and Development 9. B.1. Annexation of Shakopee Public Schools Property and Zoning to Rural Residential (RR) District 9. B.2. Preliminary / Final Plat of Prairie Pointe and Prairie Pointe Planned Unit Development 9. B.3. Small Business Relief Program 9. B.4. Temporary Street Closure of First Avenue East and Amendment of Liquor Licenses C. Public Works and Engineering 9. C.1. Quarry Lake Water Level Management Plan 10. Reports 10.A.City Bill List 10.B.Liaison & Administration Reports 11. Other Business Page 2 of 508 12. Adjournment to Tuesday, June 16, 2020 at 7 p.m. Page 3 of 508 *4.A.1. Shakopee City Council June 2, 2020 FROM: Lori J. Hensen, City Clerk TO: Mayor and Council Members Subject: City Council meeting minutes of May 19, 2020. Policy/Action Requested: Approve the meeting minutes of May 19, 2020. Recommendation: Approve the requested action. Discussion: Budget Impact: ATTACHMENTS: May 19, 2020 Page 4 of 508 Shakopee City Council Minutes May 19, 2020 7:00 PM City Hall, 485 Gorman St. Mayor Bill Mars presiding 1. Roll Call Present: Mayor Bill Mars Present by Video: Councilmembers Jody Brennan, Matt Lehman, Jay Whiting, Angelica Contreras Staff Present: City Administrator Bill Reynolds, Assistant City Administrator Nate Burkett, Planning/Development Director Micheal Kerski, Finance Director Nate Reinhardt Present by Video: City Attorney Jim Thomson, City Engineer/Public Works Director Steve Lillehaug, Parks/Recreation Director Jay Tobin, City Clerk Lori Hensen 2. Pledge of Allegiance 3. Approval of Agenda Councilmember Jody Brennan made a motion to approve the agenda, seconded by Councilmember Angelica Contreras and the motion passed. 5-0 4. Consent Business - (All items listed in this section are anticipated to be routine. After a discussion by the Mayor there will be an opportunity for members of the Council to remove any items from the consent agenda for individual discussion. Those items removed will be considered following the Public hearing portion of the agenda. Items remaining on the Consent Agenda will not be discussed and will be approved in one motion.) Whiting removed 4.C.1. for more discussion Councilmember Matt Lehman made a motion to approve the amended consent agenda, seconded by Councilmember Jay Whiting and the motion passed. 5-0 A. Administration *4. A.1. *City Council Minutes Page 5 of 608 Approve the meeting minutes of May 5, 2020, (Motion was carried under consent agenda.) *4. A.2. *MOU - Police Patrol HCSP Contributions Approve memorandum of understanding with LELS Police Patrol increasing health care savings plan contributions and authorize execution. (Motion was carried under consent agenda.) *4. A.3. *Off- Sale and Sunday License for Southside Liquors Approve the off -sale and Sunday licenses for Van Cambo Inc. dba Southside Liquors. (Motion was carried under consent agenda.) B. Fire *4. B.1. *CenterPoint Energy Community Safety Grant Council is asked to approve the Fire Department to apply for the grant. (Motion was carried under consent agenda.) C. Parks and Recreation *4. C.1. *Mural Donation - Old National Bank Councilmember Jay Whiting made a motion to approve Resolution No. R2020-071 , accepting mural donation from Old National Bank, seconded by Councilmember Jody Brennan and the motion passed. 5-0 D. Planning and Development *4. D.1. *After Hours Construction Waiver for Walmart Paving Project Approve suspension of City Code 130.45 from May 20, 2020 to June 2, 2020 to allow parking lot maintenance from 2 a.m. to 10 p.m. daily at 8101 Carriage Court. (Motion was carried under consent agenda.) E. Public Works and Engineering *4. E.1. *2020 Trail Sealcoating Accept quote and award contract in the amount of $52,438.34 to Gopher State Sealcoat, Inc., for the 2020 Trail Sealcoating. (Motion was carried under consent agenda.) *4. E.2. *Citizen -Assisted Monitoring Program (CAMP) - Water Quality Sampling Authorize execution of an agreement with the Metropolitan Council to participate in Page 6 of 608 the 2020 Citizen -Assisted Monitoring Program (CAMP). (Motion was carried under consent agenda.) *4. E.3. *Stormwater Rerouting to Protect Historic Sites Project Authorize the execution of a professional services agreement with Blondo Consulting, LLC for archaeological monitoring services for the Reroute Stormwater to Protect Historic Sites Project Storm 19-003 in the amount of $65,223.50. (Motion was carried under consent agenda.) *4. E.4. *Unbridled Avenue Street Lighting Authorize the construction and purchase of a street lighting system for the Unbridled Avenue Project CIF-20-014, in the amount of $169,999.61 by the Shakopee Public Utilities Commission. (Motion was carried under consent agenda.) *4. E.S. *Holmes Park Playground Equipment Replacement Approve the purchase of playground equipment for Holmes Park from St. Croix Recreation Fun Playgrounds, Inc., in the amount of $79,200.00. (Motion was carried under consent agenda.) *4. E.6. *Utility Extension at Maras/13th/Hanson - Professional Service Agreement with WSB Authorize the execution of a Professional Services Agreement with WSB and Associates, Inc., to perfor 7i a feasibility study for the Utility Extension Project at Maras Street, 13th Avenue, and Hansen Avenue Sewer-21-001 in the amount of $135,854.00. (Motion was carried under consent agenda.) 5. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL - Provides an opportunity for the public to address the Council on items which are not on the agenda. Comments should not be more than five minutes in length. The Mayor may adjust that time limit based upon the number of persons seeking to comment. This comment period may not be used to make personal attacks, to air personality grievances, to make political endorsements or for political campaign purposes. Council Members will not enter into a dialogue with citizens, and questions from Council will be for clarification only. This period will not be used to problem solve issues or to react to the comments made, but rather for informational purposes only. 6. Business removed from consent will be discussed at this time See item 4.C.1. 7. Public Hearings 7.A. Vacation of Public Drainage and Utility Easements as dedicated within Lot 1, Block 1, and Outlot B, CANTERBURY PARK SEVENTH ADDITION Page 3 of 608 Councilmember Jody Brennan made a motion to open the public hearing, seconded by Councilmember Matt Lehman and the motion passed. 5-0 Councilmember Jody Brennan made a motion to close the public hearing, seconded by Councilmember Angelica Contreras and the motion passed. 5-0 Councilmember Jay Whiting made a motion to approve Resolution No. R2020-060, a resolution approving the vacation of public drainage and utility easements as dedicated within Lot 1, Block 1, and Outlot B, Canterbury Park Seventh Addition, located along Shenandoah Drive and Barensheer (private drive) within the Canterbury Park development., seconded by Councilmember Angelica Contreras and the motion passed. 5-0 7.B. Vacation of Public Drainage and Utility Easements as dedicated within Lot 1, Block 1, FRIENDSHIP CHURCH Councilmember Angelica Contreras made a motion to open the public hearing, seconded by Councilmember Jody Brennan and the motion passed. 5-0 Councilmember Jody Brennan made a motion to close the public hearing, seconded by Councilmember Jay Whiting and the motion passed. 5-0 Councilmember Angelica Contreras made a motion to approve Resolution No. R2020-061, a resolution approving the vacation of public drainage and utility easements as dedicated within Lot 1, Block 1, Friendship Church, located at the northwest corner of CSAH 78 and west of Marystown Road (CSAH 15)., seconded by Councilmember Jody Brennan and the motion passed. 5-0 7.C. Vacation of a Portion of the Vierling Drive West Right -of -Way / Drainage and Utility Easement In West Shakopee Gateway Councilmember Jay Whiting made a motion to open the public hearing, seconded by Councilmember Matt Lehman and the motion passed. 5-0 Councilmember Jody Brennan made a motion to close the public hearing, seconded Page 8 of 608 by Councilmember Jay Whiting and the motion passed. 5-0 Councilmember Angelica Contreras made a motion to approve Resolution No. R2020-070.Vacation of a Portion of the Vierling Drive West Right -of -Way / Drainage and Utility Easement In West Shakopee Gateway, seconded by Councilmember Jay Whiting and the motion passed. 5-0 8. General Business A. Administration 8. A.1. Monthly Financial Review- April 2020 Informational only B. Planning and Development 8. B.1. Canterbury Southwest PUD / Preliminary and Final Plat of Canterbury Park 9th Addition Councilmember Angelica Contreras made a motion to adopt Ordinance No. 02020- 001, an ordinance rezoning property from Major Recreation to PUD Zoning., seconded by Councilmember Jody Brennan and the motion passed. 5-0 Councilmember Jody Brennan made a motion to adopt Ordinance No. 02020-002, an ordinance approving Planned Unit Development District #3, Canterbury Southwest PUD., seconded by Councilmember Angelica Contreras and the motion passed. 5-0 Councilmember Jay Whiting made a motion to adopt Resolution No. R2020-068, which rescinds Resolution No. R2019-083, a resolution that approved the preliminary and final plat of Canterbury Park 9th Addition, seconded by Councilmember Jody Brennan and the motion passed. 5-0 Councilmember Jody Brennan made a motion to adopt Resolution No. R2020-069, a resolution approving a new preliminary and final plat of Canterbury Park 9th Addition, seconded by Councilmember Jay Whiting and the motion passed. 5-0 Page 9 of 608 8. B.2. Canterbury Southwest PUD Amendment for Office Building Councilmember Jay Whiting made a motion to adopt Ordinance No. 02020-003, an ordinance approving a PUD Amendment to PUD District No. 3, seconded by Councilmember Angelica Contreras and the motion passed. 5-0 9. Reports 9.A. City Bill List Informational only 9.B. Liaison & Administration Reports 10. Other Business 11. Adjournment to Tuesday, June 2, 2020 at 7 p.m. Councilmember Matt Lehman made a motion to adjourn to June 2, 2020 at 7:00 p.m., seconded by Councilmember Jody Brennan and the motion passed. 5-0 Page 60b66508 *4.A.2. Shakopee City Council June 2, 2020 FROM: Lori J. Hensen, City Clerk TO: Mayor and Council Members Subject: 2020-2021 Liquor License Renewals. Policy/Action Requested: Approve all liquor licenses for 2020-2021; and to waive the requirements of city code section 114.02 (I) for Global Restaurant Group, Inc. d/b/a Dangerfield's, Stonebrooke Golf Club LLC and Knights of Columbus Home Association, Inc., conditioned upon compliance with all licensing requirements. Recommendation: Approve the requested action. Discussion: Renewal applications were sent to license holders in April for completion. Applications have been completed and all inspections required by the Fire Department will be completed throughout the year. According to Section 114.02 (I) of the city code, no on -sale license shall be granted for operation on any premises which does not have city water. The council may waive this requirement for any business having obtained an on -sale license prior to July 1, 1997, and operating at premises where potable water is supplied from a well, if water quality from the well is tested and approved by the Minnesota Department of Health in accordance with their standards. Staff has been in contact with the Minnesota Department of Health, Environmental Health Services. They have advised that the wells at Dangerfield's Restaurant, Stonebrooke Golf Club and at the Knights Event Center have been tested and meet water quality requirements. A list of all the businesses renewing their licenses is attached. Page 11 of 508 Budget Impact: ATTACHMENTS: a Liquor License Renewals Page 12 of 508 Licensee Name Badger Hill Brewing LLC Dilemma Brewing Co 7s Holdings LLC AFFC Inc. American Legion 2 Apple Minnesota LLC Babe's Place Inc. Bravis Modern Street Food LLC Bretbecca Inc. Brinker Restaurant Corporation Canterbury Park Consessions Inc. Chaska Market LLC Crossroads Liquor/Shakopee LLC El Toro of Shakopee Inc. FOE Aerie 4120 Global Restaurant Group Inc. Happy Zappy Inc. Holiday Stationstores Inc. Holiday Stationstores Inc. Holiday Stationstores Inc. Hy-Vee Inc. Hy-Vee Inc. JCI Shakopee KC Home Assn. Inc. 1685 Kwik Trip Inc. Kwik Trip Inc. Marcus Cinemas of Minnesota & Illinois Inc. MCMC LLC Millennium Operations LLC Mr. Pig Stuff LLC Northern Tier Retail LLC Northern Tier Retail LLC Northern Tier Retail LLC O'Brien's Public House LLC Pablo's Mexican Rest. Inc. Riverside Liquors inc. Trade Name Badger Hill Brewing Shakopee Brew Hall Southbridge Liquor Arnie's Friendly Folks Club American Legion Club Applebee's Neighborhood Grill & Bar Babe's Place Bravis Modern Street Food Pullman Club Chilli's Bar & Grill Canterbury Park Los Ranchos Market Crossroads Liquor El Toro Mexican Restaurant Shakopee Aerie Dangerfield's Restaurant of Shakopee Shakopee Wine Cellars Holiday Stationstores Holiday Stationstores Holiday Stationstores Hy-Vee Market Grille Hy-Vee Wine & Spirits JCI Shakopee Knights Event Center Kwik Trip #447 Kwik Trip #441 Marcus Southbridge Crossing Cinema Muddy Cow Bar & Grill Valleyfair Mr. Pig Stuff Speedway #4035 Speedway #4546 Speedway #8510 O'Brien's Public House Pablo's Mexican Restaurant Riverside Liquors Address 4571 Valley Industrial Bld S 126 1st Avenue East 8071 Old Carriage Court 122 1st Avenue East 1266 1st Avenue East/Box 262 1568 Vierling Drive East 124 Holmes Street S 105 Lewis Street S 124 1st Avenue West 8098 Old Carriage Court 1100 Canterbury Road 590 Marschall Road South 471 Marschall Road South 1120 1st Avenue East 220 2nd Avenue West 1583 1st Avenue East 4041 Dean Lakes Blvd 3901 Eagle Creek Blvd 1381 Greenwood Court 444 1st Avenue East 1451 Adams Street South Suite A 1451 Adams Street South Suite B Tahpah Park/P.O. Box 133 1760 4th Avenue East 8225 Crossings Blvd 1522 Vierling Drive East 8380 Hansen Avenue 1244 Canterbury Road 1 Valleyfair Drive 1561 1st Avenue East 1155 1st Avenue East 1298 Vierling Drive East 1195 Canterbury Road 338 1st Avenue East 230 Lewis Street 507 1st Avenue East Page 13 of 508 RT Minneapolis Franchise LLC Sam's West Inc. Sapporo MN Inc Shakopee 1997 LLC Shakopee 1997 LLC Shakopee Ballroom Inc. Stonebrooke Golf Club Inc. Tokyo Sushi & Grill Japanese LLC Turtle'S Bar & Grill Inc. VFW 4046 Inc. Walmart Inc. Willy McCoys Ruby Tuesday Sam's Club #6311 Sapporo Cub Foods#6689 Cub Liquor #6691 Shakopee Ballroom Stonebrooke Golf Club Tokyo Sushi & Grill Japanese Turtle's Bar & Grill Shakopee VFW Post Walmart #3513 McCoys Copper Pint 4135 Dean Lakes Blvd 8201 Old Carriage Court 1114 Vierling Drive East 1198 Vierling Drive East 1262 Vierling Drive East 2400 4th Avenue East 2693 County Road 79 8080 Old Carriage Court North 132 1st Avenue East 1201 3rd Avenue East 8101 Old Carriage Court 1710 Crossings Blvd Page 14 of 508 *4.A.3. AK OE Shakopee City Council June 2, 2020 FROM: Nate Reinhardt, Finance Director TO: Mayor and Council Members Subject: School Resource Officer Agreement Policy/Action Requested: Renew and accept modifications to the School Resource Agreement Recommendation: Staff recommends renewing the School Resource Officer Agreement. Discussion: The police department is seeking to extend the current School Resource Officer Agreement with the Shakopee School District. The proposed agreement would modify the length of the agreement from a one year period to a three year period, however the agreement continues to allow termination by either party with a 60 day written notice. The previous agreement funded approximately 44 percent of four officers' annual salary and benefits. This agreement would phase increases over a three year period to reach 50% of the current cost in the 2022/2023 school year. Budget Impact: The School District's contribution to the city for four School Resource Officer's in 2020 is $234,862, an increase of $21,468 from 2019. ATTACHMENTS: o Shakopee SRO School Agreement o Shakopee SRO School Agreement - with changes shown Page 15 of 508 SCHOOL RESOURCE OFFICER AGREEMENT BY AND BETWEEN SHAKOPEE INDEPENDENT SCHOOL DISTRICT #720 AND THE CITY OF SHAKOPEE This agreement made and entered into this day of , 2020, by and between the CITY OF SHAKOPEE and SHAKOPEE SCHOOL DISTRICT #720. GOALS AND OBJECTIVES 1. Establish a positive working relationship in a cooperative effort to prevent juvenile delinquency and assist in student development. 2. Maintain a safe and secure environment on campus, which will be conducive to learning. 3. Promote positive attitudes regarding the police role in society and to inform students of their rights and responsibilities as lawful citizens. A. EMPLOYMENT AND ASSIGNMENT OF SCHOOL RESOURCE OFFICER 1. The City agrees to provide a total of four (4) School Resource Officers (SRO's) to the district for assignment as needed to the Junior/Senior High Schools and/or the Middle and Elementary Schools for the 2020 calendar year. 2. The City in consultation with the School District, shall select the School Resource Officers and assign one to each school. 3. In the event the SRO is absent from work, the SRO is to notify both his/her police supervisor and the principal at the school to which they are assigned. The City agrees to assign a SRO alternate in case of long-term illness. 4. School Resource Officers shall remain employees of the City and shall not be employees of Shakopee School District #720. The School District and the City acknowledge that the School Resource Officers remain responsive to the command of the Shakopee Police Department. 5. The City shall provide any required clothing, uniforms, vehicles, necessary equipment and supplies for the SRO to perform law enforcement duties. The School District shall provide the School Resource Officers with an office, telephone, and other supplies necessary to perform required duties as outlined pursuant to Section C. of this agreement. B. HOURS AND SPECIAL EVENTS 1. Each SRO is assigned to a school on a full time basis. The SRO's shall be on duty at their assigned schools prior to school's start and at school's dismissal, except in cases when the SRO is flexing their schedule to attend a school event Page 16 of 508 outside regular school hours. During regular hours, SRO's may be off campus performing such tasks as may be required by their assignment (i.e., Court, Training, Arrest). 2. If authorized by his/her supervisor, the SRO shall be present at school special events that occur outside of normal school hours. The City shall be responsible for any overtime pay associated with the SRO's attendance at these events. 3. All School Resource Officers shall wear their duty uniform a majority of the time and carry their duty weapon while at school. A uniform will be worn when the SRO is engaged in teaching and public speaking duties. C. DUTIES OF THE SCHOOL RESOURCE OFFICER 1. The SRO shall assist the principal in developing plans and strategies to prevent and/or minimize dangerous situations that may occur on campus, and also address other issues determined important by the principal. 2. The SRO shall present programs on various topics to students. Subjects shall include a basic understanding of law, role of law enforcement, drug awareness, anger management, and the mission of law enforcement. 3. The SRO's are encouraged to interact with students on an individual basis and in small groups. 4. The SRO shall make him/herself available for conferences involving teachers, parents and faculty. 5. The SRO shall be familiar with agencies and resources that offer assistance to youth and their families, and make referrals to agencies when necessary. 6. The SRO shall take law enforcement action when necessary. 7. The SRO shall contact the principal of the school or their designee about his or her actions to make them aware of arrest or crime. 8. The SRO shall notify the principal or their designee before removing a student from school. 9. The SRO can take law enforcement action against intruders and unwanted guests who appear on school property. 10. The SRO shall conduct investigations of crimes, which occur at their assigned schools, and use other resources, if needed, for follow-up investigations. 11. The SRO will turn in a monthly summation report to the SRO supervisor at the end of every month. Page 17 of 508 12. The SRO shall not be used as a school disciplinarian. If the principal believes an incident is a violation of the law, they may contact the SRO to see if law enforcement action is needed. 13. The SRO shall follow the Shakopee Police Department's Standard Operating Procedures and General Orders when confiscating drugs from students on school property. 14. The SRO shall follow the guidelines of the Minnesota State Statutes, Case Law, School Board Policy and the Shakopee Police Department's Standard Operating Procedures and General Orders in regards to investigations, interviews and searches relating to juveniles. D. PRIVACY OF PUPIL RECORDS Both the City and School District agree they will be in compliance with all data privacy laws and rules. E. RIGHTS AND DUTIES OF SHAKOPEE SCHOOL DISTRICT #720 The School District shall provide to the full-time SRO the following materials and facilities, which are deemed necessary to the performance of the SRO: 1. Access to a temperature controlled and properly lighted private office containing a telephone line to be used for general business purposes. 2. A desk with drawers, a chair and a filing cabinet, which can be locked and secured. 3. Access to a computer terminal or computer hook-up. The City will supply the officers with the usual and customary office supplies and forms required in the performance of their duty. F. PROGRAM FUNDING For the 2019/2020 contract, the School District funded approximately 44% of the officers' annual salary and benefits. This agreement will phase in an increase to 50% of the officers' annual salary and benefits over a three year period. The payment schedule for reimbursement to the City shall be as follows: 2020/2021 School Year - $234,862 (46% of the annual cost) 2021/2022 School Year - $247,524 (48% of cost) 2022/2023 School Year - $260,416 (50% of cost) Page 18 of 508 G. BILLING The City shall invoice the School District on January 1, 2020 and annually each year thereafter consistent with the payment schedule. H. TERM This agreement shall commence on January 1, 2020 for the school year 2020/2021 and continue until revised by mutual consent or terminated by either party upon 60 days' advance written notice. I. INDEMNIFICATION Except for claims arising out of the willful or negligent act of the other party or its representatives, each party shall indemnify and defend the other party against all claims, expenses, and liabilities incurred, including reasonable attorney fees, related to claims for loss of life, personal injury, and/or damage to property arising out of any occurrence in, upon or at the School District properties in accordance with the execution of the School Resource Officers' duties under this contract. J. NOTICE Any notice, demand, request, or other communication that may or shall be given or served by the parties, shall be deemed to have been given or served on the date the same is deposited in the United States mail, registered or certified, postage prepaid, and addressed as follows: If to the City - Attn: Police Chief, Shakopee Police Department, 475 Gorman Street, Shakopee, Minnesota 55379; and, If to the School District - Attn: Superintendent, 1200 Town Square, Shakopee, Minnesota 55379. K. DISMISSAL OF SRO 1. In the event the principal of the school that the SRO is assigned to feels that the particular SRO is not effectively performing his or her duties and responsibilities, the principal shall contact the SRO supervisor. Within a reasonable amount of time, after receiving the information from the principal, the SRO supervisor shall advise the Chief of Police of the principal's request. If the Chief of Police desires, the principal and the Chief of Police, or their designees, shall meet with the SRO to mediate or resolve any problems, which may exist. 2. The Chief of Police may dismiss or reassign a SRO based upon the Shakopee Police Department's rules, Regulations and General Orders. 3. Either party may terminate this agreement upon a sixty (60) day written notice to the other of such termination. In the event of a termination, any payments due shall be prorated. Page 19 of 508 L. ENTIRE AGREEMENT; AMENDMENTS This contract constitutes the entire agreement between the parties and no other agreement prior to this agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties. IN WITNESS WHEREOF, the parties have caused this agreement to be signed by their duly authorized officers. Signed, sealed and delivered in the presence of: SHAKOPEE SCHOOL DISTRICT #720, SHAKOPEE, MINNESOTA Superintendent Chair, ISD #720 Board of Directors Mayor City Clerk City Administrator Page 20 of 508 SCHOOL RESOURCE OFFICER AGREEMENT BY AND BETWEEN SHAKOPEE INDEPENDENT SCHOOL DISTRICT #720 AND THE CITY OF SHAKOPEE This agreement made and entered into this day of , 2020, by and between the CITY OF SHAKOPEE and SHAKOPEE SCHOOL DISTRICT #720. GOALS AND OBJECTIVES 1. Establish a positive working relationship in a cooperative effort to prevent juvenile delinquency and assist in student development. 2. Maintain a safe and secure environment on campus, which will be conducive to learning. 3. Promote positive attitudes regarding the police role in society and to inform students of their rights and responsibilities as lawful citizens. A. EMPLOYMENT AND ASSIGNMENT OF SCHOOL RESOURCE OFFICER 1. The City agrees to provide a total of four (4) School Resource Officers (SRO's) to the district for assignment as needed to the Junior/Senior High Schools and/or the Middle and Elementary Schools for the 2020 calendar year. 2. The City 0u,...consudadion vvadlu t he n cwl0,0p 1"mp.,duwii Officers and assign one to each school. 0;. shall select the School Resource 3. In the event the SRO is absent from work, the SRO is to notify both his/her police supervisor and the principal at the school to which they are assigned. The City agrees to assign a SRO alternate in case of long-term illness. 4. School Resource Officers shall remain employees of the City and shall not be employees of Shakopee School District #720. The School District and the City acknowledge that the School Resource Officers remain responsive to the command of the Shakopee Police Department. 5. The City shall provide any required clothing, uniforms, vehicles, necessary equipment and supplies for the SRO to perform law enforcement duties. The School District shall provide the School Resource Officers with an office, telephone, and other supplies necessary to perform required duties as outlined pursuant to Section C. of this agreement. B. HOURS AND SPECIAL EVENTS 1. Each SRO is assigned to a school on a full time basis. The SRO's shall be on duty at their assigned schools prior to school's start and at school's dismissal, except in cases when the SRO is flexing their schedule to attend a school event Page 21 of 508 outside regular school hours. During regular hours, SRO's may be off campus performing such tasks as may be required by their assignment (i.e., Court, Training, Arrest). 2. If authorized by his/her supervisor, the SRO shall be present at school special events that occur outside of normal school hours. The City shall be responsible for any overtime pay associated with the SRO's attendance at these events. 3. All School Resource Officers shall wear their duty uniform a majority of the time and carry their duty weapon while at school. A uniform will be worn when the SRO is engaged in teaching and public speaking duties. C. DUTIES OF THE SCHOOL RESOURCE OFFICER 1. The SRO shall assist the principal in developing plans and strategies to prevent and/or minimize dangerous situations that may occur on campus, and also address other issues determined important by the principal. 2. The SRO shall present programs on various topics to students. Subjects shall include a basic understanding of law, role of law enforcement, drug awareness, anger management, and the mission of law enforcement. 3. The SRO's are encouraged to interact with students on an individual basis and in small groups. 4. The SRO shall make him/herself available for conferences involving teachers, parents and faculty. 5. The SRO shall be familiar with agencies and resources that offer assistance to youth and their families, and make referrals to agencies when necessary. 6. The SRO shall take law enforcement action when necessary. 7. The SRO shall contact the principal of the school or their designee about his or her actions to make them aware of arrest or crime. 8. The SRO shall notify the principal or their designee before removing a student from school. 9. The SRO can take law enforcement action against intruders and unwanted guests who appear on school property. 10. The SRO shall conduct investigations of crimes, which occur at their assigned schools, and use other resources, if needed, for follow-up investigations. 11. The SRO will turn in a monthly summation report to the SRO supervisor at the end of every month. Page 22 of 508 12. The SRO shall not be used as a school disciplinarian. If the principal believes an incident is a violation of the law, they may contact the SRO to see if law enforcement action is needed. 13. The SRO shall follow the Shakopee Police Department's Standard Operating Procedures and General Orders when confiscating drugs from students on school property. 14. The SRO shall follow the guidelines of the Minnesota State Statutes, Case Law, School Board Policy and the Shakopee Police Department's Standard Operating Procedures and General Orders in regards to investigations, interviews and searches relating to juveniles. D. PRIVACY OF PUPIL RECORDS Both the City and School District agree they will be in compliance with all data privacy laws and rules. E. RIGHTS AND DUTIES OF SHAKOPEE SCHOOL DISTRICT #720 The School District shall provide to the full-time SRO the following materials and facilities, which are deemed necessary to the performance of the SRO: l . Access to a temperature controlled and properly lighted private office containing a telephone line to be used for general business purposes. 2. A desk with drawers, a chair and a filing cabinet, which can be locked and secured. 3. Access to a computer terminal or computer hook-up. The City will supply the officers with the usual and customary office supplies and forms required in the performance of their duty. F. PROGRAM FUNDING hoof District will fund 33.5°A, of t and 100% of the fourth the 2019 calendar year totals S213,394 for the School 13i For the 2019/2020 cs.rotract, the Schooa District funded i. roxima44%0 of the officers' annual radar and benefits., This a preemend will the officers' annual salary and benefits over a three year period, ➢,he payment schedule for reimbursement the City shall be as loll.:o-.... hase in an increase :0 50% of Page 23 of 508 2.020/202.........Sch®®Q.....Year ,;234:,$72......(46% of the annuaQ cost) 2021 /2022 School Year $217,524;(48% of cost) 2022/2023.....SchooQ.....Year :....:::::.....$260,4..:1:_6......(50% oleos* BILLING The City shall invoice the. School District on January 1, 2020 and annual] thereafter consistent with. the payment schedule. u➢e.. "1FE ll" 1 i This agreement shall commence on January 1, 2020 for the school year 2020/2021....a irn; fl, continue lane....revised by mutual consent or terminated by either party upon 60 days' advance written notice„ I. INDEMNIFICATION Except for claims arising out of the willful or negligent act of the other party or its representatives, each party shall indemnify and defend the other party against all claims, expenses, and liabilities incurred, including reasonable attorney fees, related to claims for loss of life, personal injury, and/or damage to property arising out of any occurrence in, upon or at the School District properties in accordance with the execution of the School Resource Officers' duties under this contract. J. NOTICE Any notice, demand, request, or other communication that may or shall be given or served by the parties, shall be deemed to have been given or served on the date the same is deposited in the United States mail, registered or certified, postage prepaid, and addressed as follows: If to the City - Attn: Police Chief, Shakopee Police Department, 475 Gorman Street, Shakopee, Minnesota 55379; and, If to the School District - Attn: Superintendent, 1200 Town Square, Shakopee, Minnesota 55379. K. DISMISSAL OF SRO 1. In the event the principal of the school that the SRO is assigned to feels that the particular SRO is not effectively performing his or her duties and responsibilities, the principal shall contact the SRO supervisor. Within a reasonable amount of time, after receiving the information from the principal, the SRO supervisor shall advise the Chief of Police of the principal's request. If the Chief of Police desires, the principal and the Chief of Police, or their designees, shall meet with the SRO to mediate or resolve any problems, which may exist. 2. The Chief of Police may dismiss or reassign a SRO based upon the Shakopee Police Department's rules, Regulations and General Orders. Page 24 of 508 3. Either party may terminate this agreement upon a sixty (60) day written notice to the other of such termination. In the event of a termination, any payments due shall be prorated. L. ENTIRE AGREEMENT; AMENDMENTS This contract constitutes the entire agreement between the parties and no other agreement prior to this agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties. IN WITNESS WHEREOF, the parties have caused this agreement to be signed by their duly authorized officers. Signed, sealed and delivered in the presence of: SHAKOPEE SCHOOL DISTRICT #720, SHAKOPEE, MINNESOTA Superintendent Chair, ISD #720 Board of Directors Mayor City Clerk City Administrator Page 25 of 508 *4.B.1. AKO Shakopee City Council June 2, 2020 FROM: Mark Noble, Senior Planner TO: Mayor and Council Members Subject: Set Public Hearing for Vacation of Public Roadway and Drainage and Utility Easements as Dedicated within Powers First Addition and Jackson Elementary School Policy/Action Requested: Approve Resolution No. R2020-063, a resolution setting the public hearing date to consider the vacation of public roadway, drainage and utility easements as dedicated within Outlot A and Lot 1, Block 1, Powers First Addition, and Lot 1, Block 1, Jackson Elementary School, located at the northeast corner of CSAH 16 (17th Avenue) and Marystown Road (CSAH 15). Recommendation: Approve the action requested. Discussion: Trident Shakopee West LLC is requesting that the City Council set a public hearing date to consider the application for vacation of public roadway, drainage and utility easements as dedicated within Outlot A and Lot 1, Block 1, Powers First Addition, and Lot 1, Block 1, Jackson Elementary School, located at the northeast corner of CSAH 16 (17th Avenue) and Marystown Road (CSAH 15). Introduction Trident Shakopee West LLC is proposing a development of a portion of this property that requires a new plat submittal in conjunction with this vacation of public roadway and easements. If approved, the new plat will incorporate new public right-of-way and easements consistent with City and utility requirements. The attached Resolution No. R2020-063 sets a public hearing date of Tuesday, June 16, 2020 to consider the vacation of the public roadway, and drainage and utility easements. On that date, comments from staff members and utilities, as well as a recommendation from the Page 26 of 508 Planning Commission, will be presented to the City Council for consideration. The Planning Commission will consider the request at its June 4, 2020 meeting. Budget Impact: N/A ATTACHMENTS: D Resolution No. R2020-063 D Easement Sketches & Descriptions D Applicant Narrative D Site Aerial D Site Survey Page 27 of 508 RESOLUTION NO. R2020-063 A RESOLUTION SETTING THE PUBLIC HEARING DATE TO CONSIDER THE VACATION OF PUBLIC ROADWAY AND DRAINAGE AND UTILITY EASEMENTS WITHIN OUTLOT A AND LOT 1, BLOCK 1, POWERS FIRST ADDTIION AND LOT 1, BLOCK 1, JACKSON ELEMENTARY SCHOOL WHEREAS, it has been presented to the Shakopee City Council that public roadway, drainage and utility easements as dedicated within Outlot A and Lot 1, Block 1, Powers First Addition, and Lot 1, Block 1, Jackson Elementary School, are no longer of public use or interest; and WHEREAS, a public hearing must be held before an action to vacate can be taken and two weeks published and posted notice thereof must be given; and WHEREAS, the proposed vacation is described as: public roadway and drainage and utility easements lying over, under and across those parts within Outlot A and Lot 1, Block 1, Powers First Addition, and Lot 1, Block 1, Jackson Elementary School as depicted on the attached sketches; and WHEREAS, two weeks published notice will be given in the SHAKOPEE VALLEY NEWS and posted notice will be given by posting such notice on the bulletin board in the Shakopee City Hall. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that a hearing be held in the Council Chambers on the 16th day of June, 2020, at 7:00 P.M. or thereafter, on the matter of the vacation of public roadway, drainage and utility easements as dedicated within Outlot A and Lot 1, Block 1, Powers First Addition, and Lot 1, Block 1, Jackson Elementary School. Adopted in session of the City Council of the City of Shakopee, Minnesota, held the day of , 2020. ATTEST: Lori Hensen, City Clerk Mayor of the City of Shakopee Page 28 of 508 MCarlsqn r McCain 411/lite704[1.1.AL • INe.allnILIfiq• wINSTING 2e9dibiagani R iOfl. Suite.1120, Mine, 0: SSMa Mow 743.119-1907 Fa" 763-480-7sso 1567 73E19,,,titprnab) imairrtent rEET) V4 %tree,* Page 29 of 508 VI k N Roadway. and Utility Easement Description Sketch Sueia..ctrhlea al niWllAAr 581l1 C.1..,71 „T LOT ! A`\ h(`N"'" r.s d \yam ✓ Saab ,. d sal I• inm 1, r BLOCK 5ef5n]S-W e..f9 tageseier la.l vain. tha al LLa as t,(l loa ran - al ,4fXIIIV---- GC/VINrr a. rsat at a.m.. el rM 5vy4; lot .l Larl, 0oa: 1. •uata59n.Ilaldlljaa0 SOladl, [ Ira MOH .allr.y M1t a. are Slat \` LLSITAn'C STREETS iA(`yrr,a. r-l.atria T,A.", s.ys..:V,y L.l.L1'l1L,vl _ -v(}V VI. .it.li V1 YJ r'r✓✓I 11V1s 1 T!! A:atE (S.AA A .o.d+nr eon n1111r a„ca,wai: 17w7 mar uadat ane -•aee ;�nl pc•1 ai r.ai i, Hue1. t 1AfXSIyt t:190911: ley SOMA- a 6nqq la la..ce«fed 01a I1, real• S:a11 Ceram,. aiumal:.:rne nulhal, end .sufi..ntarty N IM Wowing d.sabed R:e. Co nmm aio7 1 1N. paint al irinee: c, •1 the 571111 .Fa -' Said LSI cad Uwe m0fl .'-: eeriy I. al Ludume Sheet. or len ard. naaicalaa is ava i•lnf M 1fC5iy'C,Y x.1f.i 11Agy 50•06., lama S0ufi M ewer, SB mb.atoo 35 xeeaada Wcal. eared arming 9 fai: SOyln Ane e1 La I, eft.. of 1tt.la Arl •,r far ;aft! el bai'A-a.7 c• Ina WI. W i'e dclaWa, theaea *as..., qrd nerlaaealnly 55.88 laet r' ICRSHtlit0 astir CMrly. le lla wll.vesl, hu.fah a ,W.,a ac 70.td 15,1. and a tan., c ae ui et degeed Ul n u 7b saeandf la Ma •aal'.ea.Cly li•m at 01d tell 1 and f.iit Iiae ihae iern'r jai, �� loll waan.anl co.15ina 1:,979 aa. II. (09.9, or.) OMcCain aMa� 9999ThK•alaF®e.gltaaaalO f597fbaW .. J onot 500 40 5.303, O'a70:.1!.N aMK: ya]Ma!-0fm rw. i{]M•ifaf iWf];]LY-,tla.f ry aa.aarf tf'�4Aa.d.aa e^d u.'a••1 Laarrsnl •*aa tA,Aalal c...,i is Ba I:a M !CST) 0,47 ...I Page 30 of 508 Drainage and Utility Easement Vacation Descrip V1 DEPARTMENT �r TL" l� PA 0/ A T OF 1 j tnlAVlcPOR A TIV/AV/ /'1 )' , L.n I A'O r -, 0-2 I A /K1 C't 1. rl CA 1r1 I'•• Unv/C.'VIY LL_GYIL_IYI/"1I 1 rvr1VVL. ,)LVlIYL/ rLIL//IIV�V ♦77T ) AVENUE 1 I All E /. (" A A In '16' 1/ lfl nv�wv� {v.J. n.fL NO. ..) ORA/NACE ANO UTTUTY EASEMENT VACATTGN D£SORIPRON• All of the drainage and utility easements lying over, under, and across that part of Outlot A, and Lot 1, Block 1, as created and dedicated in POWERS FIRST ADDITION, according to the recorded plat thereof, Scott County, Minnesota. T■Cal� ENVIRONMENTAL • ENGINEERING. SURVEYING 3890 Pheasant Ridge Drive NE, Suite 100, Blaine, MN 55449 Phone: 763-489-7900 Fax: 763-489-7959 Ik ::Yd 89 4,1•.f vO it 1 '$10A'th Drainage and Utility Easement Vacation Area Drainage a t r r• t.; r's Northerl ' ELEM&TARY SC. 1, el cl<Y7hrie of Lot OOL JACKSON d Utility Ease II 11 Description Sketc South line of Lot 1, Block 1, JACKSON -- ELEMENTARY SCHOOL ) 2'7'2 :7 77 ;1' ;777,777 ORA/NAGE AND 1/171/TY LASEMENT PACARON DESCR/PROM PC•tr'r A Pk Pfl L. r•st .4%./ ent Vacati h c.-1-nrtr-r n All of the drainage and utility easements lying over, under, and across thot port of Lot 1, Block 1, as created and dedicated in JACKSON ELEMENTARY SCHOOL, according to the recorded plat thereof, Scott County, Minnesota, lying westerly of the following described line and its northerly and southerly extensions thereof: Commencing at the Northwest corner of said Lot 1, Block 1, JACKSON ELEMENTARY SCHOOL, also being the Northeast corner of Lot 1, Block 1, POWERS FIRST ADDITION; thence South 83 degrees 34 minutes 04 seconds East, assumed bearing, along the northerly line of said Lot 1, Block '1, JACKSON ELEMENTARY SCHOOL, 53.69 feet to the point of beginning of soid line to be described; thence South 09 degrees 12 minutes 49 seconds West, 91.13 feet; thence South 06 degrees 26 minutes 55 seconds East, '105.15 feet; thence South 37 degrees 28 minutes '15 seconds East, 126.34 feet; thence South 23 degrees 28 minutes 58 seconds East, 255.92 feet; thence South 01 degree 01 minute 25 seconds East, 164.87 feet to the South line of said Lot 1, Block 1, JACKSON ELEMENTARY SCHOOL, and soid line there terminating. (h Carlson r McCain ENVORONMENTAL ENIGUIPMERING P SURVF.YONG 3890 Pheasant Ridge Drive NE, Suite 100, Blaine, MN 55449 Phone: 763-489-7900 Fax: 763-489-7959 Drainage and Utility Easement Vocation Area GRAPHIC SCALE 0 50 ( N FEET) (6,504 sheet) 200 1667 I7389._du vocation Jackson elernen cry age 0 •: I Access Easement Description Sketch (Pond Access) pn1Ar�(�c^ Dfey Easement and I 1/ YY L ,.: its A Utshy Ees�aerrt t Stealmost corner ol. V't f'AL f�7 sT' A� 4 AOWERS Y Jl i .r 1.; 1 E r•eJ1 pr . South lineN of Lot 1. Mock 1 FIRST AD01110 .a.else the arfk the of Outiat A, P080RS FIRST ADDITION FIRST tenelellr R.i13,00-e 12.82 Rts l3 of C�t,.V%)yftrill 1 Eosteriyy line of outlo$ A, POWERS FOIST A00010N--"� A h r1 i r,r lt FILllf 1 tl✓l V ALIOESS E16h7®Vl AI[SDPd'A161h �{ A 30.00 foot. wide. eooement tying over. under, and oeroea that•.pmt of Outlet A, POWERS FIRST ADDITION, according to the recorded plat 'thereof. Scott CoVnti. Minnesota, the centbflihe of add Obilan'aent is & Sar$ued as fotara: f7dpinieneleg al We 5dtitliw45t corner of tot I, 9lock 1,sald POWERS MST ADDITION; thdhcs Nord' 88 deg*edrs,58 infnutea 35secdnda Scat; 'assumed bearing. along the North fine of add Outlot.A, 351.41 'feet is the pent of 'beginning of said centerline. to be described; thence South 01 degree 01 minute 25 seeonno Eaet, 77.62 feel: thence poutherly 55.76 'feat along a tangential. :entire co neo&e to the West', honing o radius of 213.b1 feet. aril a central angle of 15 degrees 00 minuses 00 .seconds: thence South 13 degrees 55 minutes 35 seconds West, tangent to the lost described curve, 187.25 feet: thence soytheasterly. 32.82 feet _ofong a tangential curve eencase to the Wesl', haying a Podkus of 113,00 foci. and p conical pngle of 10 ces 38 mineres 28 seconds to a' petit .of rbvprels curvature; thence saidh.eiiir 34.49 feet along. o tangential reverse curve, eaneave to th-e •Eant, having o rodN& of 25.00 feet, and a:centrd; angle of 79 degrees 03 diint:fen 07 seconds to a polite of worse eurnoturei thence so'vthecsterrly xel feet elorrg a•tpn941tiol (averse curve nm4ove 'to the Southeest, hiavjng 'o radius of 120.00 feet, and o central angle of 18 .degrees 28 rninptes 04 seconds; thence South 30 degrees UB rlrfnut'ea 40 seconds Emit, 'tangent 1 the loot deocribed nurva, 120,44 feed thence, eo>ltheosterfy end easterly 101577 feet.olofj9 e tangential. curve ioncaw' le the Northeast, hoeing o radius or 70.00 foci, and o eur,L-d ongla .of 83 dogmas 18 minutes 02 seconds to a pojgt of reverse curvature; thence Donterly 27.22 feel, along a tangentloi reverse curve concave to the South, honing a reel&s of 70.p0 feel, end as gentrot engio of .22 dogrow 15 mimics 37 ouceade; thence North 88 dagrecs 56 manatee 35 eceor,ds Eust, tangent to the lost described curse, 54.90'feet to the easterly line of said Dustot A and said centerline there fermi:100dg, 1 8o ldoi nee .of said 30.00 loot Vide easamont Ora to be prolonged m shortened to torminete ct iko said north and eatteriy lines of A. ENVIROfaftar I.. 4$ .'t"•suPVEnHC 7890 Pheasant Mgt fhtet NE, Sulte 100, 8lsine, MN 95449 .Phone: 769.4s9.7900 9ee: 763'469-7959 pip 7389-public xcess'cosement-pond Access Eosement Area Page 33 of 508 EXfIIBIT A Lw..M...120,0NEEM.„Q.E GMNIDIKLINRE_RTY Lot 1, Block 1, Jackson Elementary School, Scott County, Minnesota. 0714 t 70010 Page 34 of 508 AND EX uI it ECAL_DE C,,I J TION ,QF O ,NTEE P'ROP,EIRTY Outlot A, Powers First Addition, Scott County, Minnesota; 714a306aCD Lot I, Block I, Powers First Addition, Scott County, Minnesota. 74g3o,0ro Page 35 of 508 EXHIBIT LEGAL DESCRIPTION OF EASEMENT AREA A 30.00 foot wide easement lying over, under, and across that part of Outlot A, POWERS FIRST ADDITION, according to the recorded plat thereof, Scott County, Minnesota, the centerline of said easement is described as follows: Commencing at the Southwest corner of Lot 1, Block 1, said POWERS FIRST ADDITION; thence North 88 degrees 58 minutes 35 seconds East, assumed bearing, along the North line of said Outlot A, 361.41 feet to the point of beginning of said centerline to be described; thence South 01 degree 01 minute 25 seconds East, 77.82 feet; thence southerly 55.76 feet along a tangential curve concave to the West, having a radius of 213.00 feet, and a central angle of 15 .degrees 00 minutes 00 seconds; thence South 13 degrees 58 minutes 35 seconds West, tangent to the last described curve, 167.25 feet; thence southwesterly 32.82 feet along a tangential curve concave to the West, having a radius of 113.00 feet, and a central angle of 16 degrees 38 minutes 28 seconds to a point of reverse curvature; thence southerly 34.49 feet along a tangential reverse curve, concave to the East, having a radius of 25.00 feet, and a central angle of 79 degrees 03 minutes 07 seconds to a point of reverse curvature; thence southeasterly 38.61 feet along a tangential reverse curve concave to the Southwest, having a radius of 120.00 feet, and a central angle of 18 degrees 26 minutes 04 seconds; thence South 30 degrees 00 minutes 00 seconds East, tangent to the last described curve, 120.44 feet; thence southeasterly and easterly 101.77 feet along a tangential curve concave to the Northeast, having a radius of 70.00 feet, and a central angle of 83 degrees 18 minutes 02 seconds to a point of reverse curvature; thence easterly 27.22 feet, along a tangential reverse curve concave to the South, having a radius of 70.00 feet, and a central angle of 22 degrees'l6 minutes 37 seconds; thence North 88 degrees 58 minutes 35 seconds East, tangent to the last described curve, 54.80 feet to the easterly line of said Outlot A and said centerline there terminating. The sidelines of said 30.00 foot wide easement are to be prolonged or shortened to terminate at the said north and easterly lines of Outlot A. Page 36 of 508 YW C...,Yi=t7rgaAy: ,41 risj ",oLvt.:V1 e 11 114)3 e n�.::;l��u�u;°i, II"01II"i1 I)ma .;!!(„ 2.58 M i' P e "„„„,'^"0 "II„ " April 30, 2020 Mark Noble, Senior Planner Members of the City Council & Planning Commission City of Shakopee 485 Gorman St. Shakopee, MN 55379 RE: POWERS DEVELOPMENT —Vacation of Easements & ROW Application Mr. Noble and Members of the City Council/ Planning Commission: Trident Development, LLC is pleased to present an application for vacation of easements and ROW for the mixed -use development located near the intersection of Marystown Road (County Rd 15) and 17th Ave (County Rd 16)—generally known as the Powers Development. Vacation of Easements Application Trident Development, LLC is seeking vacation of the easements and ROW listed below. 1. Watermain/ Utility Easement, Document #A1085418, Exhibit A This easement (#1085418) is redundant to A990965 (which will stay in place). This is administrative step cleans up title but does not remove the underlying existing easement. 2. Roadway/ Utility Easement, Document #A1085416, Exhibit B This easement was previously needed on the Powers First Addition Plat for Lusitano encroachment into ISD 720 property. The new Second Addition Plat is re-routing Lusitano and therefore this easement is no longer needed. 3. Powers First Addition Plat, D/U Easements and ROW, Exhibits C & D These are City easements and ROW provided within the original Powers First Addition Plat. The new Powers Second Addition plat will replace/ put in place all required city easements and ROW; and therefore, these are no longer needed. 4. Jackson Elementary Plat, D/U Easements, Exhibit E These are City easements provided within the original Jackson Elementary Plat. This request only concerns the 3.5-acre parcel being purchased/ split -off from ISD 720 and being incorporated into the Powers Second Addition Plat. The new Powers Second Addition plat will replace/ put in place all required city easements and ROW; and therefore, these are no longer needed. Page 1 of 2 Page 37 of 508 5. Infiltration Basin Access Easement, Document #A1085419, Exhibit F This is an access easement provided to the City for the regional stormwater pond needed for the Powers Development. Due to the reconfiguration of lots and ROW from the first addition plat, to the second addition plat, this former easement is no longer needed. The new 2.9-acre City -owned Outlot A contains said regional storm system —which has direct access via a public ROW (Lusitano). 6. Access Control to Marystown Road, Jackson Elementary and Powers First Addn. Plats A previous access control agreement between the City and County has resulted in access control notations on two previous recorded plats effecting this project (Jackson Elementary Plat and Powers First Addition Plat). Access to Marystown Road is required for this development. In coordination with City and County staff, the developer is showing access to Marystown Road via the extension of Lusitano Drive, on the Powers Second Addition Plat. The developer needs to obtain formal written authorization from the County and City that this access control is no longer required so it can be removed from property records. The developer has also applied for preliminary/final plat for this project —please reference that application for additional details and supplemental information (including existing survey and tittle work). Your consideration is appreciated. We are available to answer questions. Respectfully, Patrick E. Brama Trident Development, LLC (/6ij 4 2 7(i09,, patri Lb@ti d rrLrii?'v lopl'l'iP ilfilfl.cl Page, 2 of 2 Page 38 of 508 1111111111111111 11lulllllllllii'l1i1111111 III uuu', 1 lulu III,IIVh ,�llullllI1.1.111,vl„"IIdIV„ luwld6 IIIIII !x, uuuu 111101111111111110111111111 N"J�nlll lolllllll II ly.000,011111111 LNuuuum I IVuVIIglI „ IIIIN uu 1 1 I I IIIIIIIV u� III III III "I,1@IIIIIIII SI IAKOPEE May 28, 2020 00011 01I 1:1PI111„1IUM1 ml,u m V liiiiiliuV, uu;' V mmol iuu I uuum um',mw II �°lil11V u11111 „1Il WdllNlllpwuy" 70 IIIIININN, t 11l youoiiil'iol„quu1111111,,,1111p1 dll!IIIVII"iV"I„Illlilplll11101 N111IIiiiiiiiiiiiiil "Iuu1I11"1ul 100101000001 ll IIL IIiII�INIIIILiulilllllllh`...,,,, ��,V„11�iiv1111 IIII IIII11�II� NIA ,m�llllllllll11I "'I'Wlllululll' I1„1„„,lll„„„„1ll (II 11111011 I , „III III,V1,1I'' vul IIIN'li: 1111 �lxniu'h''u'„1°I11i„lV�olI,II11 Il 1I"ul.' 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Shakopee City Council June 2, 2020 FROM: Mark Noble, Senior Planner TO: Mayor and Council Members Subject: Preliminary Plat of Windermere South 3rd Addition Policy/Action Requested: Approve Resolution No. R2020-062, a resolution approving the Preliminary Plat of Windermere South Third Addition. Recommendation: Planning Commission recommended approval of the proposed preliminary plat by a 7-0 vote at their May 21, 2020 meeting, contingent on compliance with conditions identified in draft Resolution No. R2020-062. Discussion: D.R. Horton, Inc. - Minnesota has made application for Preliminary Plat of Windermere South 3rd Addition. The subject property is approximately 36 acres, and is located north of CSAH 78, west of Marystown Road, and south of Astoria Drive (128th Street). The applicant has proposed a plat that would consist of 33 single-family residential lots and a lot for the existing Friendship Church. The proposed lots would be accessible off Astoria Drive and CSAH 78. The development generally appears as two separate neighborhoods, with a trail connection between the two (2) cul-de-sacs. The proposed density is well within the requirements of the single-family residential guiding and the R-1 B zoning. This subdivision will look generally similar to the other D.R. Horton projects in this area (house designs, setbacks, etc.). There is proposed a substantial landscape buffer between Friendship Church and the proposed neighborhood to its west, with additional plantings proposed in the rear yard of the proposed neighborhood to the north of the church. Friendship Church would maintain their existing access off Astoria Drive (formerly known as 128th Street), whereas, their access presently off CSAH 78 will tie into Amelia Trail, which will be a new right in/right out intersection with CSAH 78. Page 41 of 508 They have also requested a vacation of public drainage and utility easements that primarily cover the Friendship Church lot, which was approved by City Council on May 19, 2020, conditioned that new easements would be provided with the Windermere South Third Addition Final Plat. City departments, Scott County and other outside agencies were given the opportunity to review and provide comments regarding this application. City Engineering, Scott County, Shakopee Fire, Comcast and SPUC support the request, provided the proposed plat complies with the conditions noted in their memos (attached to this report). Conditions noted in those memos have been incorporated into the draft resolution for the City Council's consideration. Budget Impact: N/A ATTACHMENTS: • Resolution No. R2020-062 • Site Aerial • Preliminary Plat o Landscaping Plan o Grading Plan o Engineering Memo o SPUC Memo o Scott County Memo o Comcast Comments Page 42 of 508 RESOLUTION NO. R2020-062 A RESOLUTION OF THE CITY OF SHAKOPEE APPROVING THE PRELIMINARY PLAT OF WINDERMERE SOUTH THIRD ADDITION WHEREAS, D.R. Horton, Inc. - Minnesota, applicant and Friendship Church, property owner, have made application for Preliminary Plat of Windermere South Third Addition; and as: WHEREAS, the property upon which the request is being made is legally described Lot 1, Block 1, FRIENDSHIP CHURCH, and Outlot C, WINDERMERE SOUTH 2ND ADDITION, according to the recorded plats thereof Scott County, Minnesota; and WHEREAS, all required public notices regarding the public hearing for the Preliminary Plat were duly sent and posted and all persons appearing at the hearing have been given an opportunity to be heard thereon; and WHEREAS, the Planning Commission held a public hearing and reviewed the Preliminary Plat on May 21, 2020; and WHEREAS, the City Council reviewed the Preliminary Plat on June 2, 2020. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota that the Preliminary Plat of WINDERMERE SOUTH THIRD ADDITION is hereby approved subject to the following conditions: I) The following procedural actions must be completed prior to the release of the Final Plat for recording: A. Approval of title by the City Attorney. B. Comply with conditions identified in the April 15, 2020 memo from Micah Heckman, Project Engineer with the City of Shakopee. C. Comply with conditions identified in the April 21, 2020 memo from Joseph D. Adams, Planning and Engineering Director with SPUC. D. Comply with conditions identified in the April 27, 2020 memo from Craig Jenson, Transportation Planner with Scott County. E. Comply with conditions identified in the April 24, 2020 document from Mark Macchia, Construction Supervisor with Comcast. F. Comply with landscape requirements of the City Code Sections 151.112 (Landscape Requirements) and 151.113 (Tree Preservation Requirements). Page 43 of 508 G. Construction and development of lots shall comply with the design standards of City Code Section 151.034 (Urban Residential Zone). H. Park dedication fees in the amount required by the City Code and adopted City fee schedule shall be paid prior to the recording of the final plat. Adopted in Regular session of the City Council of the City of Shakopee, Minnesota, held on the day of , 2020. ATTEST: Lori Hensen, City Clerk Mayor of the City of Shakopee Page 44 of 508 y IV� ' III _.�.. lwl Ily"'ItlOtl wlNoPll;''. 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I La 1 " T N_ �� \ J 1 I� sJ1 IL )/ I I`\ll I �I 1_1 = JFq a = _ _ ',.,.I \ II i.. im 303105H3Y�3t0WN'° -- O,a 'a 11 �� � 11 I III § �a 111 Poa 1111 v6 �11 ink Ir��J �\\ I 2 I il' I I 11 � _ , , T N .., 7 7F --� I I h m I. J I III �5 __L-/ t�e� c• _�� \� 1-, cj ICJ / / t o1 llI - �r - ° • C CI II ,n `/UNl V/730IV \ � 2-2 22 / / , cJ 0 — / �/I lF i 7 III T II , p� H ass I �1 ��.4, // /// / \I ..I g s�, egg., ��„N.�a �aa � ilii.pi/ �., TO: FROM: SUBJECT: CASE: DATE: City of Shakopee Memorandum Mark Noble, Senior Planner Micah Heckman, Project Engineer Preliminary Plat & Variance — Windermere South 3rd Addition SH100265 April 15, 2020 The staff review indicates a request to review a Preliminary Plat and variance application for the Windermere South 3rd Addition. Windermere South 3rd Addition is located west of Marystown Road and north of CSAH 78. This review should be considered preliminary, as more comments will follow with additional submittals. However, the Public Works Department offers the following comments at this time to the applicant and to the planning department: The following items need to be addressed/completed prior to release of the Final Plat for recording: 1. Plan review and plat review redlined comments are attached to this memo and must be addressed and approved by the City Engineer. 2. Execution of a Developer's Agreement, which needs to include provisions for a letter of credit or cash security equal to 125 percent of the estimated total cost of the improvements, plus 100 percent of the estimated costs of city inspection and administration. The Developer's Agreement must also include a cost sharing agreement for roadway improvements along CSAH 78. These improvements are required by Scott County as part of the overall Windermere development. 3. Pay all applicable fees/charges listed below, as required by the most current City of Shakopee Fee Schedule. • Street and Utility Fee • Watermain Fee • Trunk Storm Water Charge • Trunk Sanitary Sewer Charge • Sign Installation Fee • Wetland Conservation Act Fees • Bituminous Sealcoat Fee • Storm Water Management Plan Review Fees C:\Program Files(x86)\neevia.com\docConverterPro\temp\NVDC\70C1FB03-9D16-47DD-BE0B-6E7CDAD68C8D\Shakopee.5623.1.Engineering_Memo.docx 1 of 3 Page 49 of 508 4. Submit a detailed contractor's bid for all public improvements associated with this subdivision. 5. Easements will be shown on the Final Plat as approved by the City Engineer. They include, but are not limited to the following: • Verify appropriate drainage and utility easements for public sanitary sewer, storm sewer and watermain systems are provided. The minimum widths of drainage and utility easements are set forth in Section 10.1.A-D of the City of Shakopee Design Criteria. • Revise preliminary plat to show proposed easements. • Drainage and utility easement over all of Outlot A. • 10 feet of drainage and utility easement on westerly property line of Lot 1, Block 1. • Easement over the 100-year high water elevation of proposed storm water basins. • 15 feet of trail/sidewalk easement along the entire property frontage along CSAH 15 (Marystown Road) and CSAH 78 (130th Street). 6. The applicant must submit a detailed wetland delineation report/review and application to document the existence/nonexistence of wetlands onsite. This application needs to be reviewed by members of a TEP and needs to be approved by the City of Shakopee acting in its role as the LGU for administration of the WCA. 7. Should wetlands exist in the subdivision, the applicant will provide the required buffers, dedicate adequate outlots or conservations easements to encompass the buffers and wetlands and provide signage per requirements set forth in Chapter 54.32 of the City of Shakopee City Code. 8. Submit a detailed lot area drawing showing the total plat area, the total drainage and utility easement area encompassing 100-year high water levels of wetlands/storm water basins, the total area of right-of-way, the total area of conservation easements and outlots, the total area of bituminous street and the total area of lots. 9. At a minimum, obtain conditional approval of the development's storm water management plan. 10. The maximum allowable sanitary sewer depth is thirty (30) feet. 11. Submit a detailed geotechnical report outlining any groundwater encountered as well as infiltration rates in appropriate locations. 12. Provide additional right-of-way in the form of sight triangles 15 feet in dimension at every intersection. C:\Program Files(x86)\neevia.com\docConverterPro\temp\NVDC\70C1FB03-9D16-47DD-BE0B-6E7CDAD68C8D\Shakopee.5623.1.Engineering_Memo.docx 2 of 3 Page 50 of 508 13. Plans must be provided to Scott County for review and any conditions imposed by the county must be adhered to by the applicant. 14. Provide electronic files (AutoCAD and Portable Document Format — PDF) of the Final Plat to be recorded with datum on the Scott County coordinate system. The following items need to be addressed/completed prior to approval of a grading permit, a street and utility plan and/or a building permit: 1. Obtain final approval of the subdivision's storm water management plan. 2. Obtain a NPDES construction site permit prior to any land disturbing activity. A copy of the permit must be provided to the city. 3. Grade the entire site, as proposed on the approved plans, in one phase within one year from the date of approval of the grading permit application. Grading is defined as bringing the site to the proposed finished grade with materials deemed acceptable by the City of Shakopee engineering department, providing topsoil per City requirements and applying seed, mulch and/or sod per City requirements and providing an as -built record grading plan per Section 2.5 of the City of Shakopee Design Criteria. 4. Fieldstone riprap and geotextile fabric must be placed at each flared end section. The riprap and fabric must be installed to the bottom of the storm water basin. 5. Provide funds for future trail along CSAH 78. 6. Submit a small utilities joint trench design and detail. 7. Submit a landscaping plan in compliance with the most recent version of the City of Shakopee's Easement Fencing and Landscaping Policy. 8. The contractor must submit a Construction Management Plan to the city prior to any construction activities. 9. Record plans need to be provided per the City of Shakopee Design Criteria, Section 2.5 and Section 11.2 (A-L). The record plans need to be certified and submitted to the engineering department. Provide a letter from the engineer of record certifying all improvements were constructed per approved plans and under the direct supervision of the engineer of record. Recommendation The Public Works Department recommends approval of the application subject to the conditions above being addressed/completed by the applicant. C:\Program Files(x86)\neevia.com\docConverterPro\temp\NVDC\70C1FB03-9D16-47DD-BE0B-6E7CDAD68C8D\Shakopee.5623.1.Engineering_Memo.docx 3 of 3 Page 51 of 508 o SHAKOPEE PUBLIC UTILITIESCOMMISSION EllnInInInINIIIMMMOIMMOIMMI1V010110101101011 uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuNoomNomNomNomuoommuuuuoomNNNomNuuuoommuuuuooummmmmmmmmmmmmmmNNN "Lighting the Way - Yesterday, Today and Beyond" MEMORANDUM TO: Shakopee Community Development Department FROM: Joseph D. Adams, Planning and Engineering Director SUBJECT: STAFF REVIEW RECORD COMMENTS for: Preliminary Plat and Vacation of Easements for Windermere South Third Addition — 12800 Marystown Rd CASE NO: SH-100265 & SH-100266 DATE: 4/21/2020 COMMENTS: Municipal water service is available subject to our standard terms and conditions. These include, but are not limited to: installing a lateral water main distribution system in accordance with utility policy, paying the associated inspections costs, granting any necessary easements, paying the Trunk Water Charge, and paying the Water Capacity Charge. Underground electric service is available subject to our standard terms and conditions. These include, but are not limited to: entering into an Underground Distribution Agreement, granting any necessary easements, and paying the associated fees. Street Lighting installation is available subject to our standard terms and conditions. These are contained in the current City of Shakopee Street Lighting Policy. Applicant must pay the associated fees. Applicant should contact Shakopee Public Utilities directly for specific requirements relating to their project. Note: Water main shall be extended across the subject property including an 8in water main extended to the east property line of Friendship Church to a point approximately 600 feet south of the Northeast property corner, for future extension to the east and an 8in water main extended down Amelia Trail to the County Road 78 right of way for future extension to the south. Post Office Box 47( 255 Sarazin Street .Nu Shakopee, Mut (952) 445-1988 (952) 445-7767 www.shakopeeutilities.com 55379-0470 Page 52 of 508 o SHAKOPEE PUBLIC UTILITIESCOMMISSION EllnInInInINIIIMMMOIMMOIMMI1V010110101101011 uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuNoomNomNomNomuoommuuuuoomNNNomNuuuoommuuuuooummmmmmmmmmmmmmmNNN "Lighting the Way - Yesterday, Today and Beyond" Water service to Friendship Church shall include the applicable fire service and fire hydrant coverage as required by the Shakopee Fire Marshall. Applicant shall contact Shakopee Public Utilities and the Shakopee Fire Marshall to discuss the best options to meet fire protection requirements. The existing well on the Friendship Church property shall be permanently disconnected from the interior plumbing of the Church or properly abandoned. Such disconnection shall meet all applicable Shakopee Public Utilities requirements. The well may be repurposed solely for onsite irrigation services. Applicant shall dedicate new utility easements in areas that Shakopee Public Utilities has facilities in the easements being vacated. Applicant should contact Shakopee Public Utilities to ensure new utility easements adequately cover the existing facilities. Post Office Box 47( 255 Sarazin Street .Nu Shakopee, Mut (952) 445-1988 (952) 445-7767 www.shakopeeutilities.com 55379-O47O Page 53 of 508 SCOTT COUNTY TRANSPORTATION SERVICES 600 COUNTRY TRAIL EAST •JORDAN, MN 55352-9339 (952) 496-8346 • Fax: (952) 496-8365 • www.scottcountymn.gov April 27, 2020 Mark Noble City of Shakopee 485 Gorman Street Shakopee, MN 55379 RE: Windermere South 3rd CH 78 and CH 15 Dear Mark: We have reviewed the preliminary plat and offer the following comments: • The proposed access onto CH 78 shall be limited to a right-in/right-out only and requires a County permit. • Please submit stormwater calculations for the project for review. • The minimum right of way along CH 78 shall be 100' from centerline and 75 feet from centerline along CH 15. It appears the plat is meeting the dedication. • No ponding, berming, landscaping, or signage shall be permitted within the County right-of-way. • Any work within the County right-of-way shall require a County permit. Thank you for the opportunity to comment. If you have any questions, please feel free to contact me. Sincerely, Craig Jenson Transportation Planner Page 54 of 508 Reply to Vacation Inquiry Notification of Public Hearing Lot 1, block 1 Friendship church Outlot C, Windermere South 2nd addition Eplans From: City Of Shakopee Comcast Ph# Phone # Fax # (651) 846-9876 Description of public right -of way proposed to be vacated: Please see attached Exhibit A - Map and Legal. This section to be completed ONLY by City Depts. • We have no objections to this vacation • We have no objections to the vacation, subject to the conditions stated below • We object to the vacation for the reasons stated below Conditions/Reasons: Petitioner would pay all costs in regards to relocating Comcast facilities in easement if relocation is required This section to be completed ONLY by Utilities • We do NOT have facilities in the proposed vacated area, and we therefore RELEASE our utility easement rights, subject to any conditions or exceptions stated below • We do NOT have facilities in the proposed vacated area, but we wish to RETAIN our easement rights, subject to any conditions or exceptions stated below • We DO have facilities in the proposed vacated area, and we therefore RETAIN our easement rights, subject to any conditions or exceptions stated below Conditions/Exceptions: Petitioner would pay all costs in regards to relocating Comcast facilities in easement if relocation is required x Duly authorized representative: Mark Macchia / Construction Supervisor Print Name / Title Comcast Company Name 4/24/2020 Signature Page 55 of 508 Date Description of Proposed Vacation Area Please see attached Exhibit A - Map Page 56 of 508 *4.C.1. Shakopee City Council June 2, 2020 FROM: Ryan Halverson, Assistant City Engineer TO: Mayor and Council Members Subject: 2020 Trail Rehabilitation and Trail Reconstruction Projects CIF-20-001 and PA-20-01 Policy/Action Requested: Adopt Resolution R2020-073, awarding a contract in the amount of $216,299.65 to Bituminous Roadways, Inc., for the 2020 Trail Rehabilitation and Trail Reconstruction Projects CIF-20-001 and PA-20-01. Recommendation: Approval of Resolution R2020-073. Discussion: The city's Capital Improvement Plan (CIP) contains the 2020 Trail Rehabilitation and Trail Reconstruction Projects CIF-20-001 and PA-20-01. On April 7, 2020, the City Council adopted Resolution R2020-042 approving the plans and specifications and authorizing bidding of the project. In accordance with Minnesota Statute Section 471.347 Uniform Municipal Contracting Law, bids were solicited and opened on May 26, 2020. Four bids were received. Bituminous Roadways, Inc., from Mendota Heights, MN, was the low bidder in the amount of $216,299.65 (see the attached resolution with bid tabulation summary). Note that the bid from Bituminous Roadways, Inc., had minor multiplication errors, but was corrected and did not change the bid order. The engineer's estimate is $246,533. The low bid amount is 12.3 percent under the engineer's estimate. Bituminous Roadways, Inc., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in late June with an anticipated completion in September 2020. Budget Impact: Page 57 of 508 Based on the low bid amount, the updated total estimated project cost is as follows: COSTS Construction Cost Contingency (-8%) Subtotal Eng/Admin/Legal Total Estimated Project Cost FUNDING Capital Improvement Fund Park Asset Fund Total Funding Estimated Based on CIP Budget $ 330,000 $ 25,000 $ 355,000 $ 40,000 $ 395,000 $ 250,000 $ 145,000 $ 395,000 Estimated Based On Bid Award $ 216,299.65 $ 17,300.00 $ 233,599.65 $ 30,000.00 $ 263,599.65 $ 217,286.23 $ 46,313.42 $ 263,599.65 The amended total project budget of $263,599.65 is well under the CIP Budget and includes a contingency amount that covers any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project. It should be noted that this project scope was revised to postpone the trail reconstruction within Scenic Heights Park. The recently adopted Park Master Plan includes possibly reorganizing and redeveloping Scenic Heights Park. A Scenic Heights Park planning study is expected to be completed in 2020-2021. Consistent with the 2020 CIP, this project is proposed to be funded by the Capital Improvement Fund and the Park Asset Internal Service Fund. ATTACHMENTS: a Resolution R2020-073 a CIP Sheets (CIF-20-001 & PA-20-01) Page 58 of 508 RESOLUTION R2020-073 A Resolution Accepting Bids for the 2020 Trail Rehabilitation and Trail Reconstruction Projects CIF-20-001 and PA-20-01 WHEREAS, pursuant to an advertisement for bids for the 2020 Trail Rehabilitation and Trail Reconstruction Projects, CIF-20-001 and PA-20-01, bids were received, opened on May 26, 2020 and tabulated according to law, and the following bids were received complying with the advertisement: Bidder Amount BITUMINOUS ROADWAYS, INC. $216,299.65 SM HENTGES & SONS, INC. $233,246.80 MN ROADWAYS, CO. $234,567.96 NORTHWEST ASPHALT, INC. $312,924.18 WHEREAS, Bituminous Roadways, Inc., 1520 Commerce Drive, Mendota Heights, MN 55120, is the lowest responsive bidder for the 2020 Trail Rehabilitation and Trail Reconstruction Projects; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, THAT: 1. The appropriate City officials are hereby authorized and directed to enter into a contract with Bituminous Roadways, Inc. in the name of the City of Shakopee for the 2020 Trail Rehabilitation and Trail Reconstruction Projects according to the plans and specifications therefore approved by the City Council and on file in the office of the City Clerk. 2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this ATTEST: City Clerk Admin\City Council A2020A2020 Trail Rehab and RcconVAward Contract day of , 2020. Mayor of the City of Shakopee Page 59 of 508 Capital Improvement Plan City of Shakopee, Minnesota 2020 thru 2024 Project # CIF_20_001 Project Name Trail Rehabilitation Accounting Code 5867/6867 Fund Capital Improvement Fund Description Department Capital Improvements Fund Contact Public Works Director Type Improvement Useful Life 15 Category Trails Priority 1 Critical for Safety/Preservati Status Active Total Project Cost: $750,000 This project includes the reconstruction of existing bituminous trails in the city, along street or county roads. Justification The age and condition of the bituminous trail segments require rehabilitation. Note: A trail project was not completed in 2019 due to high bids; the 2019 project and budget were carried forward into 2020.The City must reconstruct pedestrian ramp facilities to comply with its ADA Transition plan adopted in 2018, increasing the cost of future overlay projects compared to previous years' projects. Expenditures 2020 2021 2022 2023 2024 Total Construction/Maintenance Engineering/Administration 225,000 110,000 110,000 110,000 110,000 665,000 25,000 15,000 15,000 15,000 15,000 85,000 Funding Sources Total 250,000 125,000 125,000 125,000 125,000 750,000 2020 2021 2022 2023 2024 Total Capital Improvement Fund 250,000 125,000 125,000 125,000 125,000 750,000 Total Budget Impact/Other 250,000 125,000 125,000 125,000 125,000 750,000 Required ADA improvements are generally unfunded mandates to improve accessibility and to minimize liability. 44 Page 60 of 508 Capital Improvement Plan City of Shakopee, Minnesota 2020 thru 2024 Project # CIF-20-001 Project Name Trail Rehabilitation Department Capital Improvements Fund Contact Public Works Director fuuvWr n� pr ry �. III Nr.,11"11 Wits{ Shy k e INMm������llil 1111m I;IIIII'mulVl%V"'8d1111 III 11l1�li 1111I111111011 18uY'llud��l�.11'm'mullV'' Ili � IIV��.66�m�uuump,�,,b ��� vloi00000m000vh kph 'I'll II„'I�m'I'I ill�o ullUu Uii99gp u �111 �lllugpl a mop 1111 PWI IVV P��i�l llm�l lxi� ��VV h� Iµull�lu�Illlii�IUIIIIV 111111IIIIIVV VV110 llilllll UVllu111,0,,ilOU111,11',m„BdlBuI11111I1IM,11dd111„"Iw MM9Uf,"'C1NUJ IV'lll7 IVhIV��"II �Vu"'➢i'.°' I��e IU����'�I� nu" i����ulwi„I�'tt"d �NI�III Il11111ll 1:u Ii,11IUk:l 1W VtI uql P ROJECT LOCATION Page 61 of 508 Capital Improvement Plan City of Shakopee, Minnesota 2020 thru 2024 Project # PA-20-01 Project Name Trail Reconstruction Accounting Code 5867/6867 Fund Park Asset IS Fund Description Department Park Asset Internal Serv. Fund Contact Public Works Director Type Improvement Useful Life 15 Category Trails Priority 2 Important -Provide Efficienci Status Active Total Project Cost: $465,000 This project includes the rehabilitation of existing bituminous trails in the city, that serve parks or as regional trail systems. Justification Ongoing maintenance of recreation trails as part of an overall pavement management program. The trails pavement condition has deteriorated as it nears life expectancy. Expenditures 2020 2021 2022 2023 2024 Total Construction/Maintenance Engineering/Administration 130,000 70,000 70,000 70,000 70,000 410,000 15,000 10,000 10,000 10,000 10,000 55,000 Funding Sources Total 145,000 80,000 80,000 80,000 80,000 465,000 2020 2021 2022 2023 2024 Total Park Asset Internal Service Fund 145,000 80,000 80,000 80,000 80,000 465,000 Total 145,000 80,000 80,000 80,000 80,000 465,000 Budget Impact/Other The City must reconstruct pedestrian ramp facilities to comply with its ADA Transition plan adopted in 2018, increasing the cost of future trail projects compared to previous years' projects. Note: The 2019 project was rejected due to cost; the project and funding are being carried over to 2020. 132 Page 62 of 508 Capital Improvement Plan City of Shakopee, Minnesota 2020 thru 2024 Project # PA_20_01 Project Name Trail Reconstruction We1 "S k op o't��. „fdlVlil,i� ''","',11:11111,q111 Department Park Asset Internal Serv. Fund Contact Public Works Director „IIII;II mr „iol.'II' �y''„Vt 'IIIIV w itooOIIVIi "Iw„aI mmm Vluu I,Iu � I''dlllll'��Vjillllh��� I m I°'I� III"illin ,I„1P1iNuViiPu1 PII IIIIIII III j1111111 11111111111111 Ce r'5h4olk.Q,w uum1uti i6w d;, 1„ PROJECT LOCATION tiOsi 133 Page 63 of 508 *4.C.2. Shakopee City Council June 2, 2020 FROM: Steve Lillehaug, City Engineer/Public Works Director TO: Mayor and Council Members Subject: Professional Services Agreement for Quarry Lake Park Road Policy/Action Requested: Authorize execution of a professional services agreement with Confluence for the Quarry Lake Park Road Improvements in the amount of $67,549. Recommendation: Authorize execution of the agreement. Discussion: The current Capital Improvement Plan (CIP) includes the Quarry Lake Park Improvements (see attached CIP summary sheets PR-21-006). This project includes the design and construction of park roadway access improvements. City staff needs assistance from an engineering consultant to complete the design services for this project. City staff have worked with Confluence to develop a scope of work and professional services agreement needed to deliver the project. Confluence has included AE2S as a subconsultant to assist them. Confluence and their team have the experience, technical skills and capacity to provide the needed services and is part of the city's approved consultant pool. The attached Professional Services Agreement authorizes and describes the scope and fees for their work on this project. Budget Impact: The scope of the Confluence Professional Services Agreement is proposed to cost (not to exceed) $67,549. The project work is budgeted in the 2020 and 2021 Parks Development Fund. It should be noted that in accordance with the recent license agreement with Xcel Energy approved by City Council on April 7, 2020, for the city's use of their property for the Page 64 of 508 proposed Quarry Lake mountain bike facility, that Xcel Energy also indicated their willingness to fund a portion of the park road to accommodate their use and a new driveway for their facility. More funding details will be provided as the project progresses and in advance of proceeding with construction. ATTACHMENTS: CIP Summary Sheet Professional Services Agreement Page 65 of 508 Capital Improvement Plan City of Shakopee, Minnesota 2020 thru 2024 Project # PR-21-006 Project Name Quarry Lake Park Improvements Accounting Code 6725 Fund Park Development Fund Description Department Park Development Fund Contact Director of Planning Sr, Develo Type Neighborhood Park Useful Life 50 Category Park Improvements Priority 1 Critical for Safety/Preservati Status Active Total Project Cost: $1,060,000 The Quarry Lake Plan has evolved to include a mountain bike trail system in cooperation with the Shakopee School System, water access features, roadway access improvements, ski club area improvements (dependent on the ski club) and outlet channel improvements. Justification The quarry site is natural resource site in the middle of the city's industrial park. The park is unique for the residents of Shakopee and connects to the MN Valley State Trail. The park development is working to gain support of Xcel Energy (use of 80 acres). Emerson Process Management has donated $100,000 towards general park development. It is also anticipated that the Water Ski Association will contribute funds or actual improvements for its area. Expenditures 2020 2021 2022 2023 2024 Total Planning/Design 50,000 60,000 50,000 50,000 210,000 Improvements 300,000 200,000 150,000 200,000 850,000 Funding Sources Total 350,000 260,000 200,000 250,000 1,060,000 2020 2021 2022 2023 2024 Total Grants Park Development Fund 100,000 100,000 350,000 260,000 200,000 150,000 960,000 Total 350,000 260,000 200,000 250,000 1,060,000 Budget Impact/Other Operating costs would be dependent upon the scope of the development. 22 Page 66 of 508 Capital Improvement Plan City of Shakopee, Minnesota 2020 thru 2024 Project # PR-21-006 Project Name Quarry Lake Park Improvements RELOCATED HELIOOFTER AND FLAG a MONUMENT' FROM MEMORIAL PARK OBSTACLE COrURSEJ PLAY FEAT1JRE vwv kik 1,1011 MOM* as a Syr a ra P,yprr- /}tylol FUTURE PEDESTRIAN BRIDGE OVER 1 E& I mfiramaitederamat FUTURE' RAYA Department Park Development Fund Contact Director of Planning Sr, Develo 1rlY/yWa ioylNmr,,S7YUI IYJ011Paaff'ilta pf LOOP TRAJ L.ARDUN D LAKE - MWATURAL SURFACE MATERIAL Mi111.01.4 ,u7:r� 0111111, Fitly OLINITAIN EIKETR L SY,ST JipljnoJv 23 Page 67 of 508 PROFESSIONAL SERVICES AGREEMENT This Agreement is made and entered into on the 2nd day of June 2020, between the CITY OF SHAKOPEE, 485 Gorman Street, Shakopee, MN 55379 ("City") and Confluence., 530 N 3rd Street, Minneapolis, MN 55401 ("Consultant"). Preliminary Statement The purpose of this Agreement is to set forth terms and conditions for the provision of professional services by the Consultant for the City for the following described Project: • Quarry Lake Park Improvements (park road) Project PR-21-006 The City and Consultant agree as follows: 1. Consultant's Services. The Consultant agrees to provide professional services as described in Exhibit A, Scope of Work and any addenda thereto. The Consultant shall serve as the City's professional consultant in the specified work and shall provide consultation and advice to the City during the performance of its services. The Consultant agrees to use the City's standard specifications in any bidding documents prepared under this Agreement. The requirements of this section may be waived by the City if the City Engineer determines that they are not necessary for the successful completion of the project. A Consultant requesting a requirement to be waived must have written authorization from the City Engineer and must be incorporated into this agreement. 2. Time for Performance of Services. The Consultant will endeavor to perform the services outlined in the work program within the prescribed days from the date of the contract award. Any changes in this schedule must be approved in writing by the City. 3. Term. The term of this Agreement will be from June 2nd, 2020, through December 31, 2021, the date of signature by the parties notwithstanding. This Agreement may be extended upon the written mutual consent of the parties for such additional period as they deem appropriate, and upon the terms and conditions as herein stated. 4. Compensation for Services. City agrees to pay the Consultant for services as described in Exhibit A, attached and made a part of this Agreement, which may be amended from time to time by mutual agreement by City and Consultant. The Consultant's hourly rates must be based on the hourly rates approved by the City. Page 1 Confluence - Quarry Lake park road Professional Services Agreement, June 2020 Page 68 of 508 The Agreement amount shall include all services to be rendered by the Consultant as part of this Agreement (including all travel, living and overhead expenses incurred by the Consultant in connection with performing the services herein) except for special services authorized in writing by the City. The amount stipulated shall be considered a "Not to Exceed" cost to the City. The Consultant must keep track of the costs billable under this contract at all times; any work in excess of the negotiated amount shall not be eligible for payment unless preapproved. The Consultant must notify the City if the Consultant anticipates that the negotiated amount might be exceeded, in order to determine whether or not the City is prepared to increase the compensation. This notification and approval must occur in advance of the work occurring to be considered for compensation. 5. Payment of Fees. The Consultant must submit itemized bills for services provided to the City on a monthly basis. The monthly billing must summarize the progress of the project as certified by the Consultant. For work reimbursed on an hourly basis, the Consultant must indicate for each employee, his or her classification, the number of hours worked, rate of pay for each employee, a computation of amounts due for each employee, the total amount due, the original contracted amount, the current requested amount, and the total amount. Consultant must verify all statements submitted for payment in compliance with Minnesota Statutes Sections 471.38 and 471.931. For reimbursable expenses, the Consultant must provide such documentation as reasonably required by the City. Consultant bills submitted will be paid in the same manner as other claims made to the City. 6. Audit Disclosure. The Consultant must allow the City or its duly authorized agents reasonable access to such of the Consultant's books and records as are pertinent to all services provided under this Agreement. Any reports, information, data, etc. given to, or prepared or assembled by the Consultant under this Agreement which the City requests to be kept confidential must not be made available to any individual or organization without the City's prior written approval. All finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports prepared by the Consultant will become the property of the City upon termination of this Agreement, but Consultant may retain copies of such documents as records of the services provided and may reuse standard portions of such documents in the normal course of its business. 7. Termination. Termination for Cause. This Agreement may be terminated by City by seven day's written notice to Consultant delivered to the address written above. Upon termination under this provision, the Consultant will be paid for services rendered and reimbursable expenses until the effective date of termination. Page 2 Confluence - Quarry Lake park road Professional Services Agreement, June 2020 Page 69 of 508 If, through any cause (except those reasonably beyond Consultant's control), the Consultant shall fail to fulfill in timely and proper manner its obligations under this Contract, or if the Consultant shall violate any of the covenants, agreements, or stipulation of this Contract, the City shall thereupon have the right to terminate this Contract by giving written notice to the Consultant of such termination and specifying the effective date thereof, at least five (5) days before the effective date of termination. In that event the Consultant shall have sixty (60) days to furnish all finished or unfinished documents, computer programs, data, studies, surveys, drawings, maps, models, photographs, and reports or other material prepared by the Consultant under this Contract, which shall, at the option of the City, become its property, and the Consultant shall be entitled to receive just, equitable compensation for any satisfactory work completed on such documents and other materials prior to the effective date of termination. Notwithstanding the above, the Consultant shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the Contract by the Consultant, and the City may withhold any payments to the Consultant for the purpose of setoff until such time as the exact amount of damages due the City from the Consultant is determined. In the event this Contract is terminated for cause, then the City may take over and complete the work, by contract or otherwise, and the Consultant and its sureties shall be liable to the City for any costs over the amount of this contract thereby occasioned by the City. In any such case the City may take possession of, and utilize in completing the work, such materials, appliances and structures as may be on the work site and are necessary for completion of the work. The foregoing provisions are in addition to, and not in limitation of, any other rights which the City may have. Termination Not For Cause. The City may terminate this Contract at any time, with or without cause, by giving written notice to the Consultant of such termination and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination. In that event, the Consultant shall have sixty (60) days to furnish all finished or unfinished documents, computer programs, data, studies, surveys, drawings, maps, models, photographs, and reports or other material prepared by the Consultant under this Contract, which shall, at the option of the City, become its property. If the Contract is terminated by the City as provided in this paragraph, the Consultant will be paid an amount which bears the same ratio to the total compensation as the services actually performed bear to the total services of the Consultant covered by this Contract, less payments or compensation previously made. Page 3 Confluence - Quarry Lake park road Professional Services Agreement, June 2020 Page 70 of 508 8. Subcontractor. The Consultant must not enter into subcontracts for any of the services provided for in this Agreement without the express written consent of the City. 9. Independent Contractor. At all times and for all purposes hereunder, the Consultant is an independent contractor and not an employee of the City. No statement herein shall be construed so as to find the Consultant an employee of the City. 10. Assignment. Neither party will assign this Agreement, nor any interest arising herein, without the written consent of the other party. 11. Services not Provided for. No claim for services furnished by the Consultant not specifically provided for herein will be honored by the City. 12. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision will not affect the remaining provisions of the Agreement. 13. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement will be valid only when expressed in writing and duly signed by the parties unless otherwise provided herein. 14. Compliance with Laws and Regulations. In providing services hereunder, the Consultant must abide by all statutes, ordinances, rules and regulations pertaining to the provision of services to be provided. Any violation will constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 15. Equal Opportunity. During the performance of this contract, the Consultant must not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, or age. The Consultant must post in places available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant must incorporate the foregoing requirements of this paragraph in all of its subcontracts for program Page 4 Confluence - Quarry Lake park road Professional Services Agreement, June 2020 Page 71 of 508 work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. 16. Waiver. Any waiver by either party of a breach of any provisions of this Agreement will not affect, in any respect, the validity of the remainder of this Agreement. 17. Liability and Indemnity. The Consultant must indemnify and hold harmless the City, its employees and agents, for all claims, damages, losses, and expenses, including, but not limited to, attorney's fees, which they may suffer or for which they may be held liable, as a result of, and to the extent of, the negligent or wrongful acts of the Consultant, his employees, or anyone else for whom he is legally responsible in the performance of this Agreement. The Consultant assumes full responsibility for relations with its subcontractors, and must hold the City harmless and must defend and indemnify the City, its employees and agents, for any claims, damages, losses, and expenses in any manner caused by such subcontractors, arising out of or connected with this contract. 18. Insurance. During the term of this Agreement, Consultant must procure and maintain during the life of this Contract, and provide the City with a certificate of insurance showing, the following coverage for each occurrence and in aggregate: A. Comprehensive General Liability Insurance, including Broad Form Property Damage, Completed Operations and Contractual Liability for limits not less than $1,500,000 each occurrence for damages of bodily injury or death to one or more persons and $1,500,000 each occurrence for damage to or destruction of property. B. Insurance coverage for Special Hazards, including but not limited to explosion hazard, collapse hazard, underground property damage hazard, (commonly known as XCU). C. Comprehensive Automobile Liability Insurance, in an amount not less than $1,500,000 for each occurrence. Coverage shall include all owned autos, non -owned autos, and hired autos. D. Errors and Omissions Insurance against errors and omissions resulting from the performance of Consultant's work under this Agreement. Said coverage shall be in an amount not less than $2,000,000. E. Workmen's Compensation insurance for all its employees as required by the Minnesota Worker's Compensation Act. Page 5 Confluence - Quarry Lake park road Professional Services Agreement, June 2020 Page 72 of 508 F. The City of Shakopee must be named as "ADDITIONALLY INSURED" on the insurance described in paragraphs A, B, and C, and must receive notice ten (10) days prior to the cancellation or expiration any of the specified insurance. If the deductible provisions of the Consultant's coverage or any subcontractor's coverage is questioned by the City, the Consultant shall provide the City, upon request, "Proof of Assets". This policy must provide, as between the City and the Consultant, that the Consultant's coverage shall be the primary coverage in the event of a loss. If the Consultant is providing either architectural or engineering services, the Consultant must also maintain during the term of this Agreement a professional liability insurance policy with the same limits as for general liability. A certificate of insurance on the City's approved form which verifies the existence of these insurance coverages must be provided to the City before work under this Agreement is begun. 19. Governing Law. This Agreement will be controlled by the laws of the State of Minnesota. 20. Whole Agreement. This Agreement embodies the entire agreement between the parties including all prior understanding and agreements, and may not be modified except in writing signed by all parties. Executed as of the day and year first written above. CITY OF SHAKOPEE CONFLUENCE By: By: William H. Reynolds, City Administrator Date: Its: Date: By: Bill Mars, Mayor Date: Page 6 Confluence - Quarry Lake park road Professional Services Agreement, June 2020 Page 73 of 508 EXHIBIT A pia i,ii i'C,ii^[,i✓uritii;�'�,r��r, I.{,il O;1/ May 27, 2020 Steve Lillehaug, PE, PTOE Public Works Director/ City Engineer 485 Gorman Street Shakopee, MN 55379 Cc - PeggySue Imihy, AICP Candidate RE: Quarry Lake Park Roadways Construction Design COflFL.)Ef Mr. Lillehaug, The Confluence Team is pleased to submit our proposal to provide Construction Design services for the Roadways at Quarry Lake. We will work with the City to develop a cost-effective design that works with stakeholder groups and city staff to provide roadway designs that support park activities, programming, and stakeholder needs. We are proposing to partner with AE2S to provide Civil Engineering services for design and construction. AE2S is on the City's approved Engineer list. Additionally, we are currently working on the mountain bike trail design which will significantly overlap and influence the other facilities at Quarry Lake. The following outlines our proposed Scope of Services for: Re: An Agreement for the Provision of Professional Services for Quarry Lake Park Roadways Construction Design. Confluence, hereinafter referred to as the Consultant, subject to the approval and acceptance of this agreement by the City of Shakopee, hereinafter referred to as the Client, agrees to provide Professional Services to the Client as set forth below: A. PROJECT NAME: Shakopee Parks — Quarry Lake Park Roadways Construction Design B. PROJECT DESCRIPTION: Provide the Client Landscape Architectural and Civil Engineering services for Preliminary Design of the proposed north -south roadway and east -west Xcel Energy access roadway including Construction Documentation and Administration. The Roadways construction design will be based on 30% design and master planning work. The following proposal is based on the assumption that the design team will have developed the 30% schematic design plans for the park and roadways. Improvements for the Construction Documentation portion of the work will generally include the following: 1. Utilize existing topographic Survey of the Project area 2. Design the Site Grading with Elevations 3. Design storm sewer, runoff and stormwater retention system. 4. Develop proposed roadway typical sections. 5. Design any roadway associated parking needs, layout and internal circulation. 6. Assist in site work permit acquisition 7. Landscaping and restoration improvements 8. Wayfinding signage and traffic control signage interior to park 9. Provide Construction Observation and Administration City of Shakopee May 27, 2020 QUARRY LAKE PARK ROAD CONSTRUCTION DESIGN - PAGE 2 OF 7 This is a comprehensive project and the fee submitted below will reflect the various tasks identified with the development of Construction Design and Administration for the project. Confluence and AE2S will provide Professional Landscape Architecture and Civil Engineering services. TASK 1: Civil Engineering Final Design Services: Meeting Attendance Coordinate, prepare for, and conduct project team meetings attended by the CLIENT and ENGINEER discuss technical aspects of the Design. 40 hours have been included for meeting attendance. 1.1. Topographic Survey Provide topographic survey, enough to complete design services within the scope indicated by the red hatch below. Survey includes the corridor for the park road, Xcel driveway and the boat ramp, to 25-ft to the west side of the existing fence along the westerly property line. liOPO(" NAPII MICA ARLA TO COI .1I:,°1„EII)I'awAr2S 'NOP'OGRAP HKj AREA TO V'f:)VIED (;i'Y OTHERS, IF NEE LEI[ h,Ijg1!imu'i"i 6!'I�'il ;111 pllllllliill''li'IIIIIIIIUpIII!V!wl ""i 11 1111111111 City of Shakopee May 27, 2020 QUARRY LAKE PARK ROAD CONSTRUCTION DESIGN - PAGE 3 OF 7 1.2. Roadway(s) Construction Design Signed Construction Drawings will be based on 30% schematic designs Civil Engineering construction plans will include: • Completed topo survey. • Design of North -South road extension to southern property line including turnaround at waterski area/ Xcel westerly driveway • Design driveway and boat ramp improvements • Approx. 2000 linear ft • Roadway only, no parking lot, sidewalk or trail final design • Design of East-West access road to Xcel — this will be a 20' fire lane paved road • Approx. 2000 linear ft • Roadway only, no parking lot, sidewalk or trail final design • Design approximately 500 Linear feet of trail to connect to mountain bike trail o Between the roadway design and mountain bike trailhead. o Not including bridge or approach. • Design ADA Parking stalls (assume less than 6, minimal sidewalk, to ADA standards, but not detailed to MnDOT Submittal Requirements) • Address east -west road and trail crossings of the mountain bike course. o Mainly addressed in signage o Minimal grade considerations. • Geotechnical Reports- Assist in writing Request for Proposals, soliciting, and recommending Geotechnical proposals to contract with the City. o Geotechnical Report to be used to identify ■ Pavement thickness recommendations ■ Stormwater feature performance ■ Constructability ■ Potential unforeseen subsurface risks • Implementing geotechnical recommendations (from others). • Construction Plans and plan notes • Utilize City Standard Details, Typical Section and Specifications where applicable • Roadway cross sections • Existing site conditions • Erosion Control Plans • Site layout with dimensions • Grading Plan • Design a Stormwater Management Facility for new impervious surfaces • Stormwater Pollution Prevention Plan • Provide Project Specifications • Opinion of probably construction cost City of Shakopee May 27, 2020 QUARRY LAKE PARK ROAD CONSTRUCTION DESIGN - PAGE 4 OF 7 1.3. Submit Stormwater Report • Scope of work includes analyzing two (2) stormwater alternatives. Any additional stormwater alternatives requested by the CLIENT will be billed on an hourly basis. 1.4. Permitting Assistance Assist Client in submittal of site related permits. Permits will be applied for by the ENGINEER on behalf of the City, with all permit fees provided by the City. • Watershed Permit • City Permit • Grading Permit TASK 2: Landscape Architecture Final Design Services 2.1. Roadway Landscape Design • Signed planting and restoration plans for areas disturbed by roadway construction only including phasing plan for landscape and tree preservation and restoration plans associated with roadway construction. Full landscape plans for full park provided in park master plan • Planting details and specifications for roadway design only. • Construction Observation of Landscape Installation. 2.2. Wayfinding Signage Design • Design of wayfinding and informational signage associated with roadway park and mountain bike park circulation only. Full wayfinding and signage plan provided in master plan project. • Collaboration with approved signage provider and/ or biddable signage design documents. • Does not include on trail mountain bike trail signage design. 2.3. Trail Extension Design • Signed plans and specifications for pedestrian trail extension connection between Shockwaves viewing area — approx.. 500 I.f. anticipated. TASK 3: Construction Phase Services 3.1. Construction Administration to include: • Preliminary Meetings • Pre -construction Meeting • Construction Staking • Part Time Construction Observation • Shop Drawing Review of site items • Site As-builts Drafting • Assist in retaining material testing firm to contract directly with the CLIENT. City of Shakopee May 27, 2020 QUARRY LAKE PARK ROAD CONSTRUCTION DESIGN - PAGE 5 OF 7 TASK 4: Bidding Phase Services to include: • Prepare advertisement for Bid • Post Bid Docs • Answer contractor questions • Prepare Addenda • Attend Bid opening • Complete Bid tab • Recommend contractor for Award • Admin. WORK PLAN AND PROPOSED SCHEDULE Based upon the proposed work plan, we propose the following schedule for the Quarry Lake Park Roadways Design and Construction. The desire for construction of the natural surface mountain bike trail in 2020 will require close coordination with the 30% preliminary plan. The proposed timeline below assumes a receipt of notice to proceed by the end of May 2020. Ultimately, the ability to complete the process as outlined is dependent on staff review time, the ability to schedule necessary meetings in a timely fashion, and weather. General schedule milestones for the process described above include: • June 17 — 30% preferred concept plans • July 17 — 60% plans and staff review • Aug. 15 — 90% plans and staff review • Sept. 15 — bid set completion • Oct. 1— contractor selection • Oct. — June 2021- Construction Your involvement and interaction with our team during the planning process will be a key to the eventual success of this project. Following each meeting, minutes will be distributed which document discussion points, decisions made and action items as well as those assigned to specific tasks. This will prevent "revisiting" decisions already made so progress is not stalled. Our team is immediately available to commit the necessary time and resources to your project in order to deliver final plans, specifications and all necessary contract documents for the identified park elements to the City of Shakopee. FEES AND EXPENSES: Fees and expenses are presented below as part of the design and implementation effort. Fees are based upon a Lump Sum not to exceed cost. 1. We propose to perform the services described in Task 1: Scope of Services: Civil Engineering Final Design and Construction, on an Hourly Not to Exceed basis. $37,740 2. We propose to perform the services described in Task 2: Scope of Services: Landscape Architecture Final Design, on an Hourly Not to Exceed Basis. $4,920 3. We propose to perform the services described in Task 3: Scope of Services: Construction Phase Services. On an Hourly not to Exceed basis for observation and meeting time. $21,082 4. We propose to perform the services described in Task 4: Scope of Services: Bidding Phase Services. On an Hourly not to Exceed basis for observation and meeting time. $3,807 Sub -Total: $67,549 City of Shakopee May 27, 2020 QUARRY LAKE PARK ROAD CONSTRUCTION DESIGN - PAGE 6 OF 7 5. Reimbursable expenses and hourly rates are identified in the attached schedule and will be billed on a Not to Exceed basis. 6. If the project is suspended for more than three (3) months, or abandoned in whole or in part, this firm shall be paid their compensation for services performed prior to receipt of written notice from the Owner of such suspension or abandonment, together with reimbursable expenses then due and all terminal expenses resulting from such suspension or abandonment. EXCLUSIONS: The following is a list of items not included in the scope of services. All services are available from the design team should the Client request them. 1. Preliminary and Final Plat 2. Boundary Survey 3. Land Entitlements 4. Traffic Study 5. Building or Demolition Permit Assistance 6. Geotechnical Study and Report 7. Environmental Studies 8. Structural Engineering 9. Architectural Work 10. Cultural resources 11. Offsite improvements 12. Bidding / Negotiation phase 13. 3D Renderings (provided in 30%) 14. Mechanical, Electrical, and Plumbing engineering CLIENT ROLE AND ASSUMPTIONS: Client will be responsible for the following: 1. Designate a contact person to act as Client's representative with respect to the professional services to be rendered with complete authority to transmit instructions, receive information, and interpret and define the Client's policies and decisions with respect to professional engineering services. 2. Client to provide necessary field surveys and topographic and utility mapping for design purposes. Utility mapping will be based upon information obtained from utility Clients and a site survey. 3. Client to provide necessary soil borings and geotechnical reports. 4. Client to provide necessary environmental reports. 5. Provide copies of existing as-builts and easement design and construction documents (as available) to AE2S for use during the project. TIME OF PERFORMANCE: 1. We propose to process this work in a timely and expeditious manner to meet the City's timetable of construction in 2020 for the natural surface mountain bike trails. EXTRA WORK AND CONTINUATION OF SERVICES: 1. If, during the progress or upon completion of the work outline in the Scope of Services in this agreement, the City finds it desirable or necessary to cause this Consultant to perform additional services other than those outlined in the Scope of Services, the hourly schedule and reimbursable expense schedule may apply, or a project fee may be negotiated. See attached Schedule for rates. City of Shakopee May 27, 2020 QUARRY LAKE PARK ROAD CONSTRUCTION DESIGN - PAGE 7 OF 7 SUCCESSOR'S AND ASSIGNMENT: 1. The City and this firm each bind itself, partners, assigns and legal representatives to the other party to this agreement and to the partners, successors, assigns and legal representatives of such other party in respect of all covenants of this agreement. CONTRACT CONFORMANCE: 1. If there is a conflict between this document and the agreement between the Landscape Architect and the City, the Landscape Architect's agreement with the City shall govern. FORM OF AGREEMENT: 1. The return of one (1) copy, signed and dated in the spaces provided, will constitute your acceptance of this proposal and provide authority for proceeding to accomplish this work. Sincerely, Confluence Offered by: Accepted by: Confluence City of Shakopee 5/27/2020 (signature) (date) (signature) (date) Brad Aldrich, Associate Principal (printed name/title) (printed name/title 9.A.1. Shakopee City Council June 2, 2020 FROM: Nathan Reinhardt, Finance Director TO: Mayor and Council Members Subject: 2019 Annual Financial Report, Audit Presentation and Review by Staff from Abdo, Eick & Meyers. Policy/Action Requested: Accept the 2019 audit and accompanying reports, as presented by the audit staff from Abdo, Eick & Meyers. Recommendation: Accept the 2019 Comprehensive Annual Financial Report (CAFR) as presented. Discussion: Annually the City of Shakopee's fmance staff and Abdo, Eick & Meyers audit staff undertake an extensive audit process, beginning in December and continuing into April. Most importantly, the City received an unmodified opinion, which is commonly referred to as a "clean audit opinion". This means that, in the auditor's opinion, the financial statements conform with applicable accounting standards. In addition to formulating an opinion on the City's financial statements, the auditors reviewed the City's internal controls, legal compliance and financial management practices. Those results were included in the special purpose report which is issued under a separate cover. Overall, the info! -nation in the 2019 CAFR continues to show the City is in excellent fmancial condition and should continue to monitor itself to ensure its continued fiscal good health. The audit results, Comprehensive Annual Financial Report (CAFR), and accompanying data will be presented and discussed at the June 2, 2020 meeting by Andy Berg, Partner with Adbo, Eick & Meyers. Page 81 of 508 Budget Impact: The 2019 CAFR conveys the fiscal condition of the City as of December 31, 2019 and lays the groundwork for understanding the financial resources available to the city when planning for the future. ATTACHMENTS: a 2019 City of Shakopee CAFR a 2019 Management Communication a 2019 Other Required Reports a Audit Presentation Page 82 of 508 Comprehensive ANNUAL FL 0, 0110001100910, if,-,,„, 10011101"fr 7' P') 1 Fort 11111111111111111 , 04o. /rprAiri, 4»ifi,) y 6tlin4iy,tii,4441144,41yymouyammil an' 111'1,1'1'11'y ANCIAL REP S RT e fiscall year ended December 31, 20 14011,, ;14'PA° 7), Yy, ".'44 otok 111i11 11 11111111ilIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIVIIIIIIvvvivivivivivivivivivivivivivivivivivivivivivivivivivivIviv1111111111111111110111111111,1,1,1,1,111111111,golt iiiili111111111111111111111io111111111ooioioir 1111 odoomoyo111111111111111111111 1,111,1,1' , IIIII II, 9 1,111111111"1,1111111111 11moi 111111111111 1111111111111111111111111111111111111111111111 2019 SHOW OFF SHAKOPIEE PHOTO COINTIEST GRAND PRIZE WI NNIER,"RAIINBOW OVER SHAIKOPIEE" SI AK II MN COMMUNITY PRIDE SINCE 1857 City of 'ylidkupee 1485 Gorman Yliakopee MN 5'51/91952-2 S.3-9 SOO www.ShakopPeMN.yoy Page 83 of 508 Page 84 of 508 CITY OF SHAKOPEE, MINNESOTA Scott County COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2019 Department of Finance Nathan Reinhardt, Director of Finance Melissa Schlingman, Accounting Manager 485 Gorman Street Shakopee, MN 55379 Page 85 of 508 CITY OF SHAKOPEE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2019 TABLE OF CONTENTS SECTION I Page INTRODUCTORY SECTION Elected Officials and Administration 1 Organization Chart 2 Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 10 SECTION II FINANCIAL SECTION Independent Auditor's Report 11 Management's Discussion and Analysis (Unaudited) 14 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position 28 Statement of Activities 29 Fund Financial Statements: Balance Sheet — Governmental Funds 30 Reconciliation of the Balance Sheet to the Statement of Net Position — Governmental Funds 31 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities — Governmental Funds 33 Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — General Fund 35 Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Economic Development Authority Special Revenue Fund.... 37 Statement of Net Position — Proprietary Funds 38 Statement of Revenues, Expenses and Changes in Net Position — Proprietary Funds 39 Statement of Cash Flows — Proprietary Funds 40 Statement of Fiduciary Net Position 42 Statement of Changes in Fiduciary Net Position 43 Statement of Net Position — Component Unit 44 Statement of Revenues, Expenses and Changes in Net Position — Component Unit 45 Notes to the Financial Statements 47 Page 86 of 508 CITY OF SHAKOPEE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2019 TABLE OF CONTENTS (CONTINUED) SECTION II (Continued) FINANCIAL SECTION Required Supplementary Information: Schedule of City's Proportionate Share of Net Pension Liability General Employees Retirement Fund 102 Schedule of City's Proportionate Share of Net Pension Liability Public Employees Police and Fire Retirement Fund 103 Schedule of Component Units' Proportionate Share of Net Pension Liability General Employees Retirement Fund 104 Schedule of City Contributions General Employees Retirement Fund 105 Schedule of City Contributions Public Employees Police and Fire Retirement Fund 106 Schedule of Component Unit Contributions General Employees Retirement Fund . 107 Schedule of Changes in the Net Pension Liability and Related Ratios — Fire Relief Association 108 Schedule of City Contributions and Non Employer Contributing Entities — Fire Relief Association 109 Schedule of Changes in the City's OPEB Liability and Related Ratios 111 Notes to Required Supplementary Information 112 Supplementary Information: Schedule of Revenues. Expenditures and Changes in Fund Balance — Budget and Actual — General Fund 116 Combining and Individual Fund Financial Statements and Schedules: Combining Balance Sheet — Nonmajor Governmental Funds 118 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds 124 Combining Statement of Net Position — Internal Service Funds 130 Combining Statement of Revenues, Expenses and Changes in Net Position — Internal Service Funds 131 Combining Statement of Cash Flows — Internal Service Funds 132 Page 87 of 508 CITY OF SHAKOPEE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2019 TABLE OF CONTENTS (CONTINUED) SECTION III STATISTICAL SECTION Financial Trends: Net Position by Component 1 136 Changes in Net Position 2 138 Fund Balances — Governmental Funds 3 140 Changes in Fund Balances — Governmental Funds 4 142 Revenue Capacity: Tax Capacity and Estimated Actual Value of Taxable Property 5 144 Direct and Overlapping Property Tax Rates 6 145 Principal Taxpayers 7 146 Property Tax Levies and Collections 8 147 Debt Capacity: Ratio of Outstanding Debt by Type 9 148 Ratio of General Bonded Outstanding 10 149 Direct and Overlapping Governmental Activities Debt 11 151 Legal Debt Margin Information 12 152 Pledged Revenue Coverage 13 154 Demographic and Economic Information: Demographic and Economic Statistics 14 155 Principal Employers 15 157 Operating Information: Full -Time Equivalent City Government Employees by Function/Program 16 158 Operating Indicators by Function/Program 17 160 Capital Asset Statistics by Function/Program 18 162 Page 88 of 508 CITY OF SHAKOPEE ELECTED OFFICIALS AND ADMINISTRATION DECEMBER 31, 2019 Elected Officials William Mars Jody Brennan Angelica Contreras Matthew Lehman Jay Whiting Administration William H. Reynolds Nathan Burkett Nathan Reinhardt Michael Kerski Jeff Tate Rick Coleman Steve Lillehaug Jay Tobin Position Mayor Council Member Council Member Council Member Council Member City Administrator Assistant City Administrator Finance Director Director of Planning & Development Police Chief Fire Chief Public Works Director/Engineer Park and Recreation Director Term Expires December 31, 2022 December 31, 2022 December 31, 2022 December 31, 2020 December 31, 2020 Page 89 of 508 CITY OF SHAKOPEE Department of Administration (Asst. City Admin.) HP Division IT Division City Clerk '.. Facility Maintenance Division Grant& Spedal rojects Coordinator ORGANIZATION CHART DECEMBER 31, 2019 Citizens City Council Planning Corn mission & Board of Adjustment' &Appeals Park and Recreation Advisory Board Communications Finance Fire Department Department Shakopee Public Utilities Commission Police Civil Service Commission City Administra or '.... Administrative Support Parks & Recreation +Department of Planning) Department &Development Public Works Department Planning Division _«,.{ Engineering Economic Development Buil cling Inspections Division Street Maintenance Parks Maintenance Sanitary Sewer Maintenance Storm Wat '.. Maintenanceer Fleet Division Natural Resources Division Page 90 of 508 2 May 18, 2020 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Shakopee: The Comprehensive Annual Financial Report for the City of Shakopee, Minnesota, for the fiscal year ended December 31, 2019, is submitted herewith: Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. The costs of internal control should not exceed anticipated benefits and therefore the object is to provide reasonable rather than absolute assurance that the financial statements are free from material misstatement. The City of Shakopee's financial statements have been audited by Abdo Eick & Meyers LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the city for the year ended December 31, 2019, are fairly presented in conformity with GAAP (generally accepted accounting principles). Based on the audit, the independent auditor concluded that there is reasonable basis for rendering an unmodified ("clean") opinion on the city's financial statements for the year ended December 31, 2019. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used; significant estimates made by management; as well as evaluation of the overall financial statement presentation. The independent auditor's report is presented as the first component of the financial section of this report. Management Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the City The City of Shakopee was incorporated for the second time in 1870 and is located approximately 25 miles southwest of Minneapolis. Bound by the Minnesota River on the north, Shakopee is in the northern part of Scott County and is the county seat. In recent years, the city has been one of the most rapidly growing communities in the state. The 2000 population of the city was 20,568 and the land area covered is approximately 30 square miles. The 2010 census confirmed that the population had increased to 37,076 and has been continuing to experience growth into the current year, with an estimated population of 41,506, the latest Metropolitan Council estimates in 2019. The city comprises a unique blend of residential, commercial and industrial properties, which provides a wide range of opportunities that are the result of the strong economic health of the community and region. More than 70% of the community is developed, with approximately 25% of the developed land as residential. The city levies a property tax on both real and personal property located within its boundaries except for land owned or controlled by the Shakopee Mdewakanton Sioux Community (SMSC), a Federally recognized Native American Tribe. The city may also by state statute, extend its corporate limits by annexation, which historically has occurred periodically. The city recently executed an orderly annexation agreement with Jackson Township that will allow the city to actively annex certain portions of the township as market forces dictate. COMMUNITY PRIDE SINCE 1857 City of Shakopee 1485 Gorman St., Shakopee MN 55379 Phone:952-233-9300 ( Fax: 952-233- 3801 ( www.ShakopeeMN.gov 3 Page 91 of 508 Shakopee is organized in Minnesota under Plan A, which includes a City Administrator, but the City Council retains primary decision -making authority such as policy setting, adopting ordinances and budget and staffing. The City Council has four members who serve staggered terms of four years plus the Mayor who serves a two-year term. All council positions are non -partisan, part-time and members are elected at large. January 1, 2019, the Mayor's term become a four-year term. The city provides typical municipal services such as police and fire protection, street and infrastructure construction, public works maintenance, parks, recreation, planning and zoning. Also provided are utilities such as sewer and storm drainage utilities, organized refuse collection, and recycling. Electric and water utilities are operated by Shakopee Public Utilities Commission which is appointed by the City Council but operates independently of the City of Shakopee. Economic development and redevelopment are controlled by the Shakopee Economic Development Authority (the Authority). The Authority is comprised of the Mayor and City Council members and is included as an integral part of the city's report. The economic development activities of both staff and Council continue to increase from past years, as the strong economic climate in the region has provided the city with the benefit of planned commercial and industrial growth as well as expansion of several existing businesses and commercial sites. 2020 activity has already confirmed that the continuation of the growth trend will carry into the current year as the valuation of building permits for the first quarter of 2020 was $27.1 million. Included in the first quarter 2020 valuation is 40 single-family home building permits (up from 31 in 2019). This number is also expected to increase as additional phases of existing housing developments come on-line in 2020. The annual budget is the basis for the city's financial planning and control. The budget is prepared by fund (e.g., General), function (e.g., Public Works) and division (e.g., Engineering). Major budget requests or initiatives are submitted in July by department directors. The City Administrator reviews the submittals with the Finance Director and department directors to determine the prioritization of specific budget requests. The City Council is presented with a proposed budget and a maximum tax levy in September of each year. This information succinctly details changes in the upcoming year budget, such as changes in personnel and position structure. It also includes funding requests that are unique to the specific budget year, the basis for the request, as well as requests for transfers and internal funding needs, such as internal service fund reviews. City Council is required to adopt a maximum tax levy by September 30. The final tax levy and budget are adopted in December after a public meeting, which provides the City Council and community impact information relating to both the budget decisions and property tax levies. Final levy information is submitted to the County for inclusion in the development of the upcoming year property tax statements. Budgeting control is provided by an annual budget resolution passed by City Council. Formal control is at the division level and Council action is necessary to change budgeted amounts between divisions and/or funds. The Finance Director or City Administrator may make changes within divisions. 4 Page 92 of 508 Along with the operating budget, the city annually prepares a five-year capital improvement plan (CIP) that is the basis for the long-term goal of providing and maintaining a functional public facility program, that provides the residents and businesses with infrastructure and equipment necessary for the on -going growth and development. The capital plans have historically provided details on the infrastructure projects and capital equipment that are funded through property tax levy, franchise taxes, special assessments, utility user -fees and other intergovernmental revenue sources. These projects primarily allow for the upgrades, expansion and coordination of transportation -based needs, as well as trails, signals and other infrastructure improvements. The City Council also reviews and discusses the park planned improvements that are funded through the Park Development fund, which provides for the use of park and community facilities that have historically been funded through the collection of Park Dedication fees. The capital plans are reviewed with the Council and city staff, and the funding sources and priorities developed for the annual and future budget practices. The city also maintains several internal service funds including equipment, park assets, information technology, buildings and self-insurance. The funding for this program is through the internal service fund rate charges, which are determined by departmental use, replacement plans and determination of the remaining life. These charges are integrated into the individual budgets of the General fund and departments that are benefitted by the activities of the programs. The Internal Service funds continue to be reviewed and updated as community needs and council directives are considered during each budget cycle. Local Economy Shakopee is the county seat of Scott County, and it abuts the largest county in the region, Hennepin County. Shakopee continues to benefit from its strategic location within the metropolitan region, as well as its direct access to TH 169, which connects the city to other major regional roadways, the MSP International Airport, and major employment centers. The city is also at the heart of regional attractions which includes ValleyFair, Canterbury Park horse racing track, Mystic Lake and Little Six casinos, and the Minnesota Renaissance Festival. These and other factors have propelled the city through a period of strong and consistent growth that is likely to continue for years to come. The City's taxable market value is $5.1 billion for taxes payable 2020, which is an increase of $473 million or 10.3 percent from last year. New construction accounted for $244 million of the increase in value. Residential housing makes up 63.1% of the 2020 tax capacity base. For the valuation used to calculate the 2020 property tax statements, the average value home in the City of Shakopee is $272,600 compared to $255,400 in the previous valuation. The following projects are anticipated to begin construction in the near future or are currently under construction in the City: Residential: • The Shakopee Economic Development Authority (the "EDA") sold the former city hall site to Enclave Development for the creation of an 93-unit market rate apartment complex with underground parking and commercial space along Holmes Street. Foundations have been set and the project is expected to be completed in early 2021. 5 Page 93 of 508 • The EDA sold a parcel on the Minnesota River bluff for development of a 170-unit market rate apartment complex with a restaurant. The project will remove the overhead powerlines from the bluff and rebuild several streets. Construction is slated to start in June 2020. • Sarazin Street Flats Is a 105 unit workforce housing development. The two buildings opened in 2020 in two stages. • Lennar Homes is completing Ridge Creek, a new 103 single-family home subdivision. Approximately 70% of the lots have been sold and built. • Windermere by D.R. Horton is in its third phase of development consisting of 150 new homes, including new single-family homes and multi -level and single level townhouses. DR Horton is in the process of platting its next phase of homes. • Benedictine Health System is building a $60 million, 180-unit independent living, assisted living and memory care facility in the Windermere development. • The Willows at Windermere is a 60-unit workforce family apartment complex with supportive services for residents that helps move them into homeownership. • The City has a number of new market rate apartment complexes including the SlXton, a 133-unit market rate apartment complex adjacent to the new 103,000 square -foot Hy-Vee. TRIO is a 300- unit market rate apartment complex being constructed in Southbridge, with its first 100-unit building nearing completion. • Stagecoach in Southbridge is a new 60-home subdivision that is under construction in Southbridge. The homes have access to a new 2-acre city park that preserves a large stand of heritage oaks. The development is already 60% built out. • Donnay Homes is currently finishing the second phase of 25 single-family lots at Prairie Meadows located west of Marschall Road. • The first home in West Ridge Lake Estates, a 14-lot executive development on Lake O'Dowd, has started construction. Several other lots are under contract. • Construction is well underway on Countryside 2nd Addition, a 31-lot single family residential development. • Link Construction has almost completed all the homes on South Parkview 5th Addition, a development of 21 single family homes. • Doran Construction is in the middle of the first of a two-phase development of 600 luxury apartment units, known as Triple Crown, as part of Canterbury Park's $400 million redevelopment. • A large-scale subdivision with more than 600 residences has been submitted for the Hauer Farm near the intersection of County Highway 83 and 17th Avenue. • Shakopee Gravel has submitted concept plans for the reuse of the gravel pit as a residential subdivision and light industrial. Commercial: • A new 127-room Fairfield Inn and Suites opened several months ago. • Wendy's Restaurants renovated a closed White Castle in Southbridge • A number of new daycare and Montessori facilities opened in the last 12 months, including Rainbow Daycare, New Horizon Daycare, Ladybug Child Care, and River Valley Montessori. • Universal Stone opened a 50,000 square -foot stone products showroom and fabrication operation in eastern Shakopee. • Copper Pint restaurant finished construction in the Southbridge area and opened for business in the summer of 2019. • Canterbury Park has submitted a Planned Unit Development for the next phase of this $400 million redevelopment that will include a Ms. Porter's School, corporate headquarters, a 125 unit luxury age restricted development, two retail and restaurant pads, a pad for a future hotel, 110 unit luxury townhome development and a 60 unit cooperative. • My Place Hotel opened a 63-room extended stay hotel near Canterbury Park. • The EDA has under contract or sold more than 30 acres of land in the West End Gateway OPUS is developing a new corporate headquarters and manufacturing facility for Cherne USA and an 83,000 square foot speculative office building; Doggie Doos Spa and Resort opened a new $2 6 Page 94 of 508 million, 10,000 square foot facility; Northstar Regional the first phase of a residential treatment facility opened; and the EDA has under contract four acres for a workforce housing.Trident Development submitted plans for a new clinic for the Veterans Administration, a medical office complex and a 125-unit market rate apartment complex. • Construction of a new Taco Bell just off Marschall • Texas Roadhouse has submitted preliminary designs for a new restaurant in Southbridge across from Sam's Club • Affinity Plus Credit Union has submitted concept plans for a new building adjacent to Willy McCoys. • Shakopee Secure Storage completed its complex that provides spaces for small businesses. • Hometown Bank opened a new office building adjacent to Hy-Vee. Industrial: • Lloyd's Construction Services is built a new headquarters office building along with a sorting and reuse facility. • Scannell Properties completed a 136,500 square -foot building and is in the final lease up phase of a second 114,000 square -foot office/warehouse development. • UPS opened a 120-vehicle service center in an existing building to serve deliveries in the southwest metropolitan area. • United Properties constructed a 300,000 square -feet of office -warehouse space adjacent to Canterbury Park. • KEB America is completing an 80,000 square foot addition to its North American Headquarters. • Johnson Anderson, which opened in 1983, is completing a major addition. They are one of the largest custom envelope and printing operations in Minnesota. • Biff s new corporate headquarters and yard on Highway 100 • Construction of new Shakopee Veterinarian Clinic on Marystown Road • S.M. Hentges purchased the former Cretex Concrete plant and is redeveloping into a heavy industrial park with approximately 50 acres. Public: • The city completed a Parks Recreation and Trails Master Plan that has developed concept plans for several sites. • The Ridge Creek Nature Park should be out for bid in June. This $4 million park includes a board walk, sitting areas and wildlife observation sheds. • Scott County broke ground on a $60 million addition and improvements to the Scott County Government Center The EDA is working on plans for a 30,000 square foot Innovation Center in downtown Shakopee adjacent to the Riverbluff development. The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of many businesses. The City of Shakopee, itself temporarily closed facilities including City Hall, Community Center and the Ice Arena. While the disruption is currently expected to be temporary, there is uncertainty around the financial impact to the local economy. Major Initiatives The city completed the 2040 Comprehensive Plan that was approved by the Metropolitan Council and received the Minnesota Planning Association Plan of the Year. This 400+ page document sets the stage for the future development and redevelopment of the community including transportation, sewer, water and power. It also sets up a larger vision on the character of development and the community for the next 20 years. 7 Page 95 of 508 The city completed an Alternative Urban Area Review (AUAR) Plan for the West End that includes all of the area to be annexed into the Jackson Township. Long -Term Financial Planning Historically, the city has issued only limited debt, in the form of bonds and internal funding for planned infrastructure projects, expansion specific to streets, underground utilities, trails and sidewalk expansion. A portion of the long-term debt is funded by special assessments against benefited properties. The city applies special assessments against benefitted properties at a rate of 30% of the assessable project costs. This limited amount of special assessment revenue does require the city to clearly define the other recognized components of the payment of project costs. The city does not assess for overlays, which then requires funding from the tax levy or other regional revenues sources. The City Council has recently allowed for the use of inter -fund transfers, use of existing fund balance position, as well as review of charges and fees that may be applicable to the projects, and currently not tapped for future funding sources. In addition, the City Council passed an ordinance effective January 1, 2017 assessing the private gas and electric utilities a franchise tax based on three percent of energy sales. This franchise tax generated approximately $855,000 in 2019, with revenue dedicated to the Capital Improvement Fund. City capital and equipment needs are currently identified and funded in a manner that will not place an undue burden or single year expense fluctuation on the taxpayers. The planned CIP clearly identifies the needs for current projects as well as future use. This is based on known and anticipated programs and mandates, such as environmental program adjustments and possible community expansion and growth. The capital and equipment needs of the city require constant appraisal for replacement cost, life span and the assurance that the insurance coverage is providing for the most comprehensive, yet affordable, coverage. Relevant Financial Policies The city's target General Fund balance is to maintain an unassigned level between 35% and 50% of expenditures. This level is to provide working capital for cash flow, expected declines in revenues, and for unforeseen expenditures such as natural disasters, or for unforeseen but urgent requests. Replenishing the fund balance when it falls below the target level shall be accomplished by inter -fund transfers, or adjusting of expenditures or revenues, over a period not to exceed three years. The city historically receives no local government aid (LGA). Annual legislative actions may impact the financial position of those cities that are currently reliant on these and other government derived revenue sources, which leaves them vulnerable to the economies of the State as a whole. As of this writing, it was not anticipated that actions by the Minnesota Legislature would negatively impact the city and its operations and planning The standard budget process, which provides for the presentation and approval of the property tax levies for the General fund (including Economic Development), debt service and referendum debt, will be consistent with prior year actions. The accounting, auditing and financial reporting policies are designed to maintain a system of financial monitoring, control and reporting for all operations and funds to provide effective means of ensuring 8 Page 96 of 508 that overall city goals and objectives will be met and to assure the city's residents and investors that the city is well managed and fiscally sound. The investment policy provides for conservative investing, preserving capital and maintaining adequate liquidity for forecasted cash needs. A third -party investment manager handles a majority of the portfolio and all investments are held in a trust account. The debt policy ensures that the city's debt; 1) does not weaken the city's financial structure; and 2) provides limits on debt to avoid problems in servicing debt. This policy is critical for maintaining the best possible credit rating. Capital policies include having expenditures forecasted ahead for five to ten years and are updated annually. Internal Service Funds for major equipment, major buildings and facilities, park asset replacement and information technology costs stabilize the annual impact of those items to the General fund and taxpayers. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Shakopee for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2018. This was the 34th consecutive year that the city has received this award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the Finance Department, Accounting Manager Melissa Schlingman, and the entire city staff. We express appreciation to those staff members who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and City Councilors for their support in maintaining the highest standards of professionalism in the management of the City of Shakopee's finances. Respectfully submitted, VIrUL in II III nmic] (May 0," 27) Nathan J. Reinhardt (IvAay 6,,2020) William H. Reynolds Nathan J. Reinhardt City Administrator Finance Director 9 Page 97 of 508 G Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shakopee Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2018 P Executive Director/CEO 10 Page 98 of 508 DO CK& 1 S1.LP Idle.' ,�u'�oufller.ruls (.'onsulicinf% INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Shakopee, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee, Minnesota (the City), as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Shakopee Public Utilities Commission, the discretely presented component unit. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the component unit, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City as of December 31, 2019, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund and Economic Development Authority special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. 5201Eden Avenue, Suite 250 Edna, MN 55436 952 83,5.9©9© I Fax 952 835,3261 Page 99 of 508 11 (THIS PAGE LEFT BLANK INTENTIONALLY) 12 Page 100 of 508 Change in Accounting Standards The City adopted the provisions of Governmental Accounting Standard Board (GASB) Statement No. 84, Fiduciary Activities, for the year ended December 31, 2019. Adoption of the provisions of these statements results in significant change to the classifications of the components of the financial statements. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis starting on page 14 and the Schedules of Employer's Share of the Net Pension Liability, the Schedules of Employer's Contributions, Schedule of Changes in the Net Pension Liability and Related Ratios and the Schedule of Funding Progress for Other Post - Employment Benefit Plan starting on page 102 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, supplementary information and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 18, 2020, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota May 18, 2020 Page 101 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 As management of the City of Shakopee (the "City"), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the year ended December 31, 2019. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our Letter of Transmittal, which can be found on pages 3 to 9 of this report. Financial Highlights • The assets of the City exceeded its liabilities at the close of the most recent year by $274.9 million (net position). Of this amount, $45.2 million (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net position increased $12.2 million. Governmental activities accounted for 53.8 percent of the total increase and business -type activities accounts for 46.2 percent of the total increase. • As of the close of the current year, the City's governmental funds reported combined ending fund balances of $27.6 million, which is an increase of $4.4 million (1.67%) from the prior year. Approximately 43.5 percent of this total amount, $12.0 million is available for spending at the City's discretion (unassigned fund balance). • At the end of the current year, unassigned fund balance for the General Fund was $14.1 million, or 51.6 percent of total General Fund 2019 expenditures and 48.5 percent of the 2020 budgeted expenditures. 45 The City's total outstanding bonded debt increased by $2.3 million during the current year. The City retired $1.9 million in principal in 2019 and issued $4.2 million General Obligation Tax Increment Bonds 2019A to fund infrastructure improvements. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) govemment-wide financial statements, 2) fund financial statements, and 3) Notes to the Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -Wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to private -sector business. The Statement of Net Position presents information on all of the City's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused employee leaves). 14 Page 102 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, highways and streets, economic development and recreation. The business -type activities of the City include sewer, storm drainage utilities and refuse. The government -wide financial statements include not only the City itself (known as the primary government), but also two legally separate entities for which the City is financially accountable. The component units are Shakopee Public Utilities Commission (SPUC) and the Economic Development Authority (EDA). SPUC's financial information is reported separately from the financial information presented for the primary government as a discretely presented component unit. The EDA, which functions like a depai lment of the City although it is a legally separate entity, is presented within the City's government -wide financial statements. The City Council is the EDA Board. The government -wide financial statements can be found on pages 28 and 29 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating a City's near - term financing's requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the City's near -term financing decisions. The governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 30 individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, Economic Development Authority Special Revenue Fund, the Capital Improvement, TIF District No. 17 Amazon and TIF District No. 19 Riverfront Capital Project Funds. Those are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund and Economic Development Authority Special Revenue fund. Budgetary comparison statements have been prepared for the funds to demonstrate compliance with the budget. 15 Page 103 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 The basic governmental funds financial statements can be found on pages 30 to 37 of this report. Proprietary Funds The City maintains three different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its sewer, storm drainage and refuse operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its fleet of vehicles and mobile equipment, its major buildings, the replacement of park assets, information technology items, insurance funding and for employee compensated absences. All of these services predominantly benefit governmental rather than business -type functions. Proprietary funds provide the same type of information as the government -wide financial statements. The proprietary fund financial statements provide separate information for the sewer, storm drainage and refuse operations, all of which are considered to be major funds of the City. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 38 to 41 of this report. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City's own programs. The basic fiduciary fund financial statements can be found on pages 42 to 43 of this report. Component Units Component units are legally separate organizations for which the City is financially accountable. The government - wide financial statements present information for the component units in a single column on the Statement of Net Position. Also, some information on the Statement of Changes in Net Position is aggregated for component units. The component units' Statements of Net Position and Statement of Changes in Net Position provide detail for each major component unit. The statements can be found on pages 44 to 45 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The Notes to the Financial Statements can be found on pages 47 to 99 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. These can be found on pages 102 to 113 of this report. 16 Page 104 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 The combining statements referred to earlier in connection with non -major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 118 to 132 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a City's financial position. For the City, assets exceeded liabilities by $274.9 million at the close of the most recent year. By far the largest portion of the City's net position (81.1 percent) reflects its investment in capital assets (e.g., land, buildings, infrastructure and equipment); less any related debt used to acquire those assets that is still outstanding. The City used these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Current and Other Assets Capital Assets Net Position (Expressed in Thousands) Governmental Activities Business -Type Activities Total 2019 2018 2019 2018 2019 2018 $ 51,520 $ 43,166 $ 25,245 $ 24,059 $ 76,765 $ 67,225 175,013 172,094 83,567 78,642 258,580 250,736 Total Assets $ 226,533 $ 215,260 $ 108,812 $ 102,701 $ 335,345 $ 317,961 Deferred Outflows of Resources 7,362 8,929 70 123 7,432 9,052 Long -Term Liabilities Outstanding $ 49,123 $ 46,243 $ 621 $ 629 $ 49,744 $ 46,872 Other Liabilities 8,167 5,344 662 425 8,829 5,769 Total Liabilities $ 57,290 $ 51,587 $ 1,283 $ 1,054 $ 58,573 $ 52,641 Deferred Inflows of Resources 9,193 11,559 89 128 9,282 11,687 NET POSITION: Net Investment in Capital Assets $ 139,359 $ 137,799 $ 83,567 $ 78,643 $ 222,926 $ 216,442 Restricted 6,774 7,137 - - 6,774 7,137 Unrestricted 21,220 16,107 23,940 22,999 45,160 39,106 Total Net Position $ 167,353 $ 161,043 $ 107,507 $ 101,642 $ 274,860 $ 262,685 An additional portion of the City's net position (2.5 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($45.2 million) may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current year, the City was able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. The same situation held true for the prior year. 17 Page 105 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 During the current year, the City's net position increased $12.2 million. Governmental activities increased as a result of significant building permit revenues, revenue from community center and ice arena operations, investment income and unspent bond proceeds for TIF District No. 18 Canterbury Commons. The business -type activities increased as a result of contributed assets from outside developers during the year. Changes in Net Position (Expressed in Thousands) Governmental Activities Business -Type Activities Total 2019 2018 2019 2018 2019 2018 REVENUES: Program Revenues: Charges for Services $ 13,613 $ 11,404 $ 5,665 $ 5,018 $ 19,278 $ 16,422 Operating Grants and Contributions 1,881 2,036 - 1,881 2,036 Capital Grants and Contributions 6,527 5,062 5,214 4,234 11,741 9,296 General Revenues: Property Taxes 19,416 20,005 - 19,416 20,005 Franchise Taxes 1,306 1,344 - 1,306 1,344 Tax Increment 2,009 1,657 - 2,009 1,657 Other 2,028 524 894 320 2,922 844 Total Revenues 46,780 42,032 11,773 9,572 58,553 51,604 EXPENSES: General Government 5,373 5,268 - 5,373 5,268 Public Safety 12,921 11,376 - 12,921 11,376 Public Works 12,681 12,431 - 12,681 12,431 Culture and Recreation 5,171 4,954 - 5,171 4,954 Natural Resources 169 88 - 169 88 Economic Development 3,272 3,069 - 3,272 3,069 Interest on Long -Term Debt 666 1,009 - 666 1,009 Sewer - 4,216 3,969 4,216 3,969 Storm - 1,786 1,685 1,786 1,685 Refuse - 123 125 123 125 Total Expenses 40,253 38,195 6,125 5,779 46,378 43,974 Increase (Decrease) in Net Position before Transfers Transfers Change in Net Position 6,527 3,837 5,648 3,793 12,175 7,630 (217) 436 217 (436) 6,310 4,273 5,865 3,357 12,175 7,630 NET POSTION: January 1 161,043 156,845 101,642 98,278 262,685 255,123 Prior Period Adjustment - (75) - 7 - (68) January 1 As Restated 161,043 156,770 101,642 98,285 262,685 255,055 December 31 $ 167,353 $ 161,043 $ 107,507 $ 101,642 $ 274,860 $ 262,685 Page 106 of 508 18 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 Governmental Activities Governmental activities increased the City's net position by $6.3 million. The major increase was related to $4.7 million in developer contributed capital. Additionally, licenses and permits revenues increased $2 million. $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- General Government Expenses and Program Revenues — Governmental Activities V) Public works Conservation and Natural Resources Revenues by Source — Governmental Activities Other Revenues 7% Operating Grants and Charges for Contributions Services4% 29% Other Taxes 3% Franchise Taxes 1% IN Program Revenues 5 Expenses Capital Grants and Contributions 14% Taxes 42% Page 107 of 508 19 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 Business -Type Activities Business -type activities increased the City's net position by $5.9 million. Revenues and expenses increased between the current and prior year. The increase in net position was primarily the result from developer contributed capital in 2019 which totaled approximately $5.0 million. The sewer and storm water activities will continue to experience ongoing expenses as capital investment is required to maintain and reconstruct the City's utilities. In addition, new development will also require investment of the City. $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- Expenses and Program Revenues — Business -Type Activities Sewer Storm Refuse Revenues by Source — Business -Type Activities Capital Grants and Contributions 45% Charges for Services 48% Other Income 7% 1111 Program Revenues Ris Expenses Investment Earnings 0% Page 108 of 508 20 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near -term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a City's net resources available for spending at the end of the year. As of the end of the current year, the City's governmental funds reported combined ending fund balances of $27,570,777, an increase of $4,394,140 in comparison with the prior year. Approximately 43.5 percent, $11,984,556, of the total amount constitutes unassigned fund balance, which is available for spending at the City's discretion. Approximately 24.0 percent, $6,601,140, of the total amount constitutes assigned fund balance, which is assigned for designated purposes. Approximately 6.0 percent, $1,588,000, of the total amount constitutes committed fund balance through formal action of the City Council. The remainder of fund balance, $7,397,081, is not available for new spending because it has already been restricted or is non -spendable. Following is a discussion of the major governmental funds: The General Fund is the chief operating fund of the City. At the end of the current year, fund balance of the General Fund was $15,879,343. As a measure of the General Fund's liquidity, it may be useful to compare fund balance (unassigned) to total fund expenditures. Unassigned fund balance represents 51.6 percent of total General Fund expenditures or 48.5 percent of the 2020 budgeted expenditures. Fund balance of the City's General Fund increased by $3,559,899 during the current year, primarily as a result of revenues exceeding expectations. Overall General Fund revenues increased $2,599,157 as a result of increased charges for services related to increase operations at the community center and ice arena. Licenses and permit revenue increased with the increase in private development in 2019. Additionally, the City had an increase in investment income in comparison to the prior year. Overall General Fund expenditures increased by $1,555,760 due to cost of living increases and new positions added in 2019, and an increase operational cost for the community center and ice arena. The largest operational increase of $1,104,640 was in Public Safety. The Economic Development Authority fund had a fund balance increase of $566,375. The EDA had transfer's totaling $510,294 from tax increment districts to reimburse TIF eligible expenses. The Capital Improvements fund had a fund balance decrease of $652,601. In 2019, the City invested $3,860,113 in infrastructure through the Capital Improvements fund including $2,637,207 in street reconstruction and pavement overlays and $387,891 on CSAH 16 school pedestrian crossings. The TIF District No. 17 Amazon fund had a fund balance increase of $374,348. The fund received $911,859 in tax increment, with a portion of the increment being used to pay down internal funding that was utilized to fund the Shenandoah Drive development project. 21 Page 109 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 The TIF District No. 19 Riverfront fund had a fund balance decrease of $428,906. In 2019 purchases of land held for resale along with moving expenses were made in the riverfront area to prepare for development. Proprietary funds The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position of the enterprise funds (expressed in thousands): Storm Sewer Drainage Refuse Beginning of Year $ 8,904 $ 14,336 $ (695) Change During Year (298) 1,089 129 End of Year $ 8,606 $ 15,425 $ (566) The City has undertaken several new development projects and continues to review fees charged to ensure costs are covering operations of the funds. A portion of these projects are funded through special assessments, but a significant portion of this is funded through the anticipated future revenues collected for services. The Refuse fund was created during 2014 with the City's purchase of garbage carts. The negative net position is anticipated to be reduced each year as service charges continue to be collected from customers. GENERAL FUND BUDGETARY HIGHLIGHTS Budget amendments of $2,415,000 between original and final amended budget were approved during 2019. Following are the main components of the amendments: • Revenues were increased $3,155,800 as a result of increased licenses and permits, increased engineering services related to private development and increased community center and ice arena revenues. • Expenditures were increased $740,800. Changes were made throughout all functions, including an additional allocation for building permit software. Actual revenues of $30,706,363 were $582,363 over budget. The variances are noted below: • Licenses and permits came in over budget on account of an increase in development and building and conservative budgeting. • Charges for services came in over budget due to increased community center admissions and memberships and ice rentals. • Investment income came in over budget as a result of increased interest earnings and unrealized gains. Actual expenditures of $27,397,042 were $561,958 under budget. The variances are noted below: • General government was under budget as a result of not spending contingency funds and due to vacancies in positions during the year. • Public safety was under budget due to vacancies in positions during the year as well as timing of building inspection software implementation. • Public Works, Culture and Recreation were under budget due to vacancies in positions during the year. 22 Page 110 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental and business type activities as of December 31, 2019, amounts to $258,580,908 (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvement, machinery and equipment, park facilities, roads, highways and bridges. Capital Assets (Net of Depreciation) Expressed in Thousands Governmental Activities Business -Type Activities Total 2019 2018 2019 2018 2019 2018 Land $ 23,257 $ 21,898 $ 3,797 $ 3,797 $ 27,054 $ 25,695 ROW 495 254 508 508 1,003 762 Construction in Progress 4,380 2,015 671 140 5,051 2,155 Line Rights - - 717 742 717 742 Infrastructure 75,799 74,127 76,232 71,984 152,031 146,111 Buildings 57,440 58,942 - - 57,440 58,942 Machinery and Equipment 13,642 14,858 1,642 1,471 15,284 16,329 Total $ 175,013 $ 172,094 $ 83,567 $ 78,642 $ 258,580 $ 250,736 Major capital assets events during the current year included the following: • Reconstruction of streets, sanitary sewer, storm sewer and watermains on Shakopee Avenue, Dakota Street, Minnesota Street and Wood Duck Trail. • l2th Avenue street and trail construction. • Developer contributed assets of streets, sanitary sewer and storm sewer at Windermere South 2nd, Shenandoah Drive and Ridge Creek Third Addition • Lion's Park bathroom remodel and splash pad. • Planning started on Ridge Creek Park ▪ Vehicle replacements in police, fire, streets and parks. Additional information on the City's capital assets can be found in Note 6 on pages 66 to 68 of this report. 23 Page 111 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 Long -Term Debt At the end of the current year, the City had total bonded debt outstanding of $34,660,000. Of this amount, $34,425,000 comprises debt backed by the full faith and credit of the government and $235,000 is special assessment debt for which the government is liable in the event of default by the property owners subject to the assessment. Outstanding Debt G.O. and Revenue Bonds Expressed in Thousands Governmental Activities Business -Type Activities Total 2019 2018 2019 2018 2019 2018 G.O. Bonds $ 34,425 $ 31,765 $ - $ $ 34,425 $ 31,765 Special Assessment Debt with Governmental Commitment 235 585 - 235 585 Total $ 34,660 $ 32,350 $ - $ - $ 34,660 $ 32,350 The City's total outstanding bonded debt increased by $2,310,000 during the current year. The City retired $1,910,000 in principal in 2019 and issued $4,220,000 General Obligation Tax Increment Bonds 2019A to fund infrastructure improvements. Minnesota Statutes limit the amount of general obligation (G.O.) debt a government entity may issue to a net figure of three percent of the taxable market value. The current legal debt margin for the City is $99.4 million, which is significantly in excess of the City's outstanding G.O. debt. The City maintains an "Aa1" debt rating from Moody's Investors Service. Additional information on the City's long-term debt can be found in Note 8 on pages 69 to 71 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of many businesses. The City of Shakopee, itself temporarily closed facilities including City Hall, Community Center and Ice Arena. While the disruption is currently expected to be temporary, there is uncertainty around the financial impact it may have. In December 2019, the unemployment rate in Shakopee was 2.8%, up 0.4% from a year ago. This compares favorably to the state's December unemployment rate of 3.6% and the national rate of 3.8%. Over the last three years, the city's estimated market value has increased $1.2 billion to more than $6 billion. New construction accounts for $244 million of 20 percent of this increase. The City is currently experiencing the construction and development of several new industrial, commercial and residential sites. The City's past years commercial and industrial growth has spurred the need for new housing. The City is seeing all types of housing, from single family to multi -family and senior housing filling this need. The diversified commercial and industrial base provides a strong base of jobs and tax base. In turn, the backfilling of housing will help support the employment needs of these businesses. 24 Page 112 of 508 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2019 The 2020 City property tax levy is increasing by $1,150,000 to $20,730,500. Despite the levy increase the tax rate will decrease as a result of new growth. The 2020 le will provide $900,000 of additional funding to capital infrastructure and park development. REQUESTS FOR INFORMATION This financial report is designed to provide a general view of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, 485 Gorman St., Shakopee, Minnesota, 55379. 25 Page 113 of 508 (THIS PAGE LEFT BLANK INTENTIONALLY) 26 Page 114 of 508 BASIC FINANCIAL STATEMENTS 27 Page 115 of 508 CITY OF SHAKOPEE STATEMENT OF NET POSITION December 31, 2019 Governmental Business -Type Activities Activities Total Component Unit ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Cash and Investments (Including Cash Equivalents) $ 43,726,793 $ 22,929,518 $ 66,656,311 S 48,963,233 Cash with Fiscal Agent 1,008,255 - 1,008,255 - Restricted Cash and Investments - - - 17,734,822 Property Tax Receivable 90,928 - 90,928 - Accounts Receivable (Net of Allowance for Uncollectible Accounts) 526,829 40,669 567,498 4,183,418 Interest Receivable 125,343 63,941 189,284 201,586 Due From Other Governments 348,185 605,215 953,400 211,857 Special Assessments Receivable 3,416,479 169,653 3,586,132 Inventories 29,944 4,348 34,292 1,407,601 Prepaid Expenses 390,973 1,358 392,331 61,829 Land Held for Resale 1,854,213 - 1,854,213 Advances from Other Funds (Internal Balances) (1,430,000) 1,430,000 - NetPensionAsset 1,431,754 1,431,754 - Capital Assets, Net of Accumulated Depreciation (Where Applicable): Land and Land Improvements 23,257,460 3,796,8(13 27,054,263 5,566,953 Right of Way 494,746 507,746 1,002,492 - Construction in Progress 4,380,1.73 670,851 5,051,024 1,933,614 Line Rights - 717,808 717,808 - Infrastructure 75,798,966 76,232.227 152,031,193 - Plant in Service - - - 91,609,707 Buildings 57,440,147 57,440,147 - Machinery and Equipment 13,642,176 1,641,805 15,283,981 Total Assets Deferred Outflows of Resources Deferred Outflows of Resources Related to Pensions Deferred Outflows of Resources Related to OPEB Total Deferred Outflows of Resources 226,533,364 108,811,942 7,209,538 62,615 151,980 335,345,306 171,874 620 7,272,153 323,174 7,000 158,980 7,361,518 69,615 7,431,133 323,174 Total Assets and Deferred Outflows of Resources $ 233,894,882 $ 108,881,557 $ 342,776,439 S 172,197,794 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Accounts and Contracts Payable $ 1,148,142 $ 470,952 $ 1,619,094 S 4,138,659 Other Current Liabilities - - 537,869 Due to Other Governments 291,903 169,322 461,225 578,866 Salaries and Benefits Payable 512,085 512,085 - Deposits Payable 2,696,508 - 2,696,508 2,364,067 Interest Payable 432,888 - 432,888 - Unearned Revenue 197,286 - 197,286 5,210 Customer Advances - - - 730,955 Bond Principal Payable. Net: Payable Within One Year 1,750,000 - 1,750,000 - Payable After One Year 34,711,324 - 34,711,324 - Capital Lease Payable Payable Within One Year 21,135 - 21,135 - Payable After One Year 5,481 - 5,481 - Compensated Absences Payable: Payable Within One Year 1,117,403 22,113 1,139,516 - Payable After One Year 1,365,715 27,027 1,392,742 - OPEB Liability: Payable After One Year 2,203,631 101,482 2,305,113 Net Pension Liability: Payable After One Year 10,836,611 492,094 11,328,705 3,532,888 Total Liabilities Deferred Inflows of Resources Deferred Inflows of Resources Related to Pensions Deferred Inflows of Resources Related to OPEB Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources Net Position Net Investment in Capital Assets Restricted for: SCDP Grant Forfeiture Debt Service Componet Units Water and Electric Capital Improvements Unrestricted Total Net Position 57,290,112 1,281990 9,192,883 88,785 59,508 58,573,102 11,888,5 14 9,281,668 672,678 2,740 62,248 9,252,391 91,525 66,542,503 1,374,515 139,359,387 83,567.240 9,343,916 672,678 67,917,018 12,561,192 222,926,627 99,110,274 18,368 - 18,368 - 174,372 - 174,372 - 3,512,773 - 3,512,773 - - - 15,270,755 3,068,511 - 3,068,511 - 21,218,968 23,939.802 45,158,770 45,255,573 167,352,379 107,507,042 274,859,421 159,636,602 Total Liabilities, Deferred Inflows of Resources and Net Position $ 233,894,882 $ 108,881,557 $ 342,776,439 S 172,197,794 The Notes to the Financial Statements are an integral pail of this stuement. Page 116 of 508 28 CITY OF SHAKOPEE Program Revenues 70, 5 a., a V 0 O H Contributions ss ‘.0 m 00 0- — 00 oc kr, 0, O — N C , 0 0 01 O O �O 00 00 'D m 00 7 — 'O ,n 00 oc — kn 0 0 — c,'c — -r , O 0 O1 64 0.0 00 — M N O M M V M cD O V O 00 O 00 N n V — c cc r — 00 lD r- N 0, — r M N ' oc M vl oc M M�k.Dv_�DN — 011 >� r M rnrn M rn N .n rn V 69 Functions/Programs Governmental Activities D M 00 r M M V M 0 N 0 0 N�� O r-'D r 0 C- - r D rn d O N D ✓ N N V M 69 kro M 00 00 0, O V 00 0, `D N 00 rn- O 0- 00 O O o0 O O ✓ n v 00 N 0- M oc 00 rn- oc V M rkr, rn O0 N 0- 30 kro 0- 03 O 0- 00 00 00 r rn 00 N 03 00 $ 46,379,220 Total Primary Government CrI- fN 00 ,0 o 00 N v r 0i Noc V 'D • r o 0 N --� M N 00 N 01 yr r 00 00 ss 69- 00 00 r O 00 O 03 03 03 0- Total Component Unit General Revenues o0- 0- 'n oc o c^ vl N‘.0 r 0- © r ul Vl N 00 N Vl \D 00 \D r Vl 00 'D 00 - 01 O O N 7 7 M M O N N Q ^ N N N N '.D N o v kn o N kn kn N 00 N N Vl \O 'D r kr 00 0 r - 4, O O \D 'C -- M M O V N a — N — v 00 N '.D N .0 N w V 0- 0-1 r G1 10 v Vl 0- r N 00 71-vn- ca 01 O 7r O1 00" 0 v $ 159,636,602 cv 0 V . 03 00 kn ,0 00 ,.0 r N N 00 r 0- O $ 107,507,042 $ 167,352,379 Net Position - Ending an integral part of this stateme The Notes to the Financial Statemen Page 117 of 508 29 General Fund CITY OF SHAKOPEE BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2019 Special Rcvcnuc Capital Projects Economic TIF District TIF District Other Total Development Capital No. 17 No. 19 Governmental Governmental Authority Improvement Amazon Riverfront Funds Funds ASSETS Cash and investments S 17,550,086 $ 203,041 S 3,838,086 $ 16,240 $ 68 $ 7,962,958 S 29,570,479 Cash with a Fiscal Agent - - 1,008,255 1,008,255 Delinquent Taxes Receivable 90,926 2 90,928 Special Assessments Receivable: Delinquent 3,045 28,079 31,124 Deferred 30,780 2,555,969 798,606 3,385,355 Accounts Receivable 345,033 - 152,187 - 29,609 526,829 Interest Receivable 45,373 (1,013) 16,255 26 22,161 82,802 Due from Other Funds - - 28,350 - 28,350 Due From Other Governments 101,937 724 245,524 348,185 Advance to Other Funds 1,805,412 1,623,986 3,429,398 Inventories 29,944 29,944 Prepaid Items 125,172 - 1,401 126,573 Land Held for Resale 768,807 1,085,406 1,854,213 Total Assets S 20,127,708 $ 971,561 S 8,488,436 $ 16,240 S 1,085,500 $ 9,822,990 S 40,512,435 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable $ 441,286 S 12,068 $ 62,309 S S S 245,449 $ 761,112 Contracts Payable 23,194 70,856 232,165 326,215 Due to Other Funds 28,350 28,350 Deposits Payable 2,696,508 - 2,696,508 Due to Other Governments 276,449 15,454 291,903 Salaries and Benefits Payable 512,085 - - - - 512,085 Advance from Other Funds - 1,191,394 1,442,985 1,514,406 472,007 4,620,792 Unearned Revenue 197,286 - - - - 197,286 Total Liabilities 4,123,614 1,226,656 133,165 1,442,985 1,514,406 993,425 9,434,251 Deferred Inflows of Resources Unavailable Rcvcnuc - Property Taxes 90,926 2 90,928 Unavailable Revenue - Special Assessments 33,825 2,584,04R 798,606 3,416,479 Total Dcfcrrcd Inflows of Resources 124,751 2 2,584,048 798,606 3,507,407 Fund Balances Nonspendable 155.116 1,401 156,517 Restricted - 7,240,564 7,240,564 Committed 1,588,000 - 1,588,000 Assigned - 5,771,223 - - 829,917 6,601,140 Unassigned 14,136,227 (255,097) - (1,426,745) (428,906) (40,923) 11,984,556 Total Fund Balances 15,879,343 (255,097) 5,771,223 (1,426,745) (428,906) 8,030,959 27,570,777 Total Liabilities, Dcfcrrcd Inflows of Resources and Fund Balances S 20,127,708 $ 971,561 S 8,488,436 $ 16,240 $ 1,085,500 $ 9,822,990 S 40,512,435 The Notes to the Financial Statements are an integral part of this statement. Page 118 of 508 30 CITY OF SHAKOPEE RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION - GOVERNMENTAL FUNDS December 31, 2019 Total Fund Balances - Governmental Funds $ 27,570,777 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds. Cost of Capital Assets 241,555,885 Less Accumulated Depreciation (97,455,122) Long-term assets from pensions reported in governmental activities are not financial resources and therefore are not reported as assets in the funds. 1,431,754 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Bond Principal Payable (34,660,000) Unamortized Bond Premium (1,801,324) Capital Lease Payable (26,616) Net OPEB Obligation (2,203,631) Net Pension Liability (10,836,611) Delinquent property taxes and assessments receivable will be collected this year, but are not available soon enough to pay for the current period's expenditures and, therefore, are reported as unavailable revenue in the funds. Property Taxes Special Assessments Deferred special assessments receivable are not available to pay for current expenditures and, therefore, are reported as unavailable revenue in the funds. Deferred Special Assessments 90,928 31,124 3,385,355 Governmental funds do not report a liability for accrued interest due and payable. (432,888) Deferred Outflows of Resources and Deferred Inflows of Resources are created as a result of various differences related to pensions and OPEB that are not recognized in the governmental funds. Deferred Inflows of Resources Related to Pensions (9,192,883) Deferred Outflows of Resources Related to Pensions 7,209,538 Deferred Inflows of Resources Related to OPEB (59,508) Deferred Outflows of Resources Related to OPEB 151,980 Internal service funds are used by management to charge the costs of equipment, buildings, park assets and employee benefits to individual funds. A portion of the assets and liabilities of those funds are included in governmental activities in the Statement of Net Position. 42,593,621 Total Net Position - Governmental Activities $ 167,352,379 The Notes to the Financial Statements are an integral part of this statement. 31 Page 119 of 508 CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 Special Revenue Capital Projects Economic Other Total Development Capital TIF District No. TIF District No. Governmental Governmental General Fund Authority Improvement 17 Amazon 19 Riverfront Funds Funds REVENUES Taxes $16,794,801 $ 345,029 $ 1,055,249 $ $ 2,935,884 $ 21,130,963 Tax Increment 911,859 1,096,798 2,008,657 Special Assessments 6,484 634,634 194,227 835,345 Licenses and Permits 4,656,994 1,255,118 5,912,112 Intergovernmental 1,573,435 1,302,154 163,355 3,038,944 Charges for Services 7,084,693 12,000 - 129,891 7,226,584 Fines and Forfeitures 8,138 - - 75,819 83,957 Miscellaneous 581,818 42,488 215,475 94 653,370 1,493,245 Total Revenues 30.706,363 399,517 3,207,512 911,859 94 6,504,462 41,729,807 EXPENDITURES Current General Government 4,731,116 398.922 5,130,038 Public Safety 12,731,133 118.399 12,849,532 Public Works 5,824,268 - 5,824,268 Culture and Recreation 3,885,624 - 3,885,624 Conservation and Natural Resources 131,199 38,760 169,959 Economic Development 322,160 537,511 113,267 1,537,391 2,510,329 Debt Service Principal 1,910,000 1,910,000 Interest and Other Charges - 1,096,743 1,096,743 Capital Outlay 93,702 21,276 3,860,113 193,034 4,879,215 9,047,340 Total Expenditures 27,397,042 343,436 3,860,113 537,511 306,301 9,979,430 42,423,833 Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset Bonds Issued Premium on Bonds Issued Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances FUND BALANCES Beginning of Year End of Year 3,309,321 56,081 578 250,000 510,294 250,578 510,294 (652,601) 374,348 (306,207) (3,474,968) (694,026) 1 579 4,220,000 4,220,000 267,587 267,587 364.995 1,125,289 (122,699) (402,590) (525,289) (122,699) 4,449,993 5,088,166 3,559,899 566,375 (652,601) 374,348 (428,906) 975,025 4,394,140 12,319,444 (821,472) 6,423,824 (1,801,093) 7,055,934 23,176,637 $15,879,343 $ (255,097) $ 5,771,223 $ (1,426,745) $ (428,906) $ 8,030,959 $ 27,570,777 The Notes to the Financial Statements are an integral part of this statement. 32 Page 120 of 508 CITY OF SHAKOPEE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 Net Change in Fund Balances - Governmental Funds $ 4,394,140 Amounts reported for governmental activities in the Statement of Activities are Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital Outlays Depreciation Expense Loss on Disposal of Capital Assets Contributed Assets Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities. 6,254,593 (6,210,654) (85,708) 4,701,332 1,910,000 Payments on captial leases are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities. 19,926 Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due and thus requires use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. 31,403 Governmental funds report the effects of bond premiums when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities 111,422 governmental funds but as a decrease in net assets in the Statement of Activities. Bonds Issued (4,220,000) Certain revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Special Assessments Delinquent 14,520 Special Assessments Deferred (493,348) OPEB obligations are recognized when paid in the government funds but recognized when incurred in the Statement of Activities (146,247) Delinquent receivables will be collected this year, but are not available soon enough to pay for the current period's expenditures and, therefore, are not revenues in the funds. (11,933) Capital assets transferred from proprietary funds to governmental funds (467,465) Governmental funds recognized pension contributions as expenditures at the time of payment whereas the statement of activities factors in items related to pensions on a full accrual perspective. Pension Expense Internal service funds are used by management to charge the costs of certain activities such as buildings, equipment, park assets and employee benefits to individual funds. (See Note 2.B.) (149,294) 656,338 Change in Net Position - Governmental Activities $ 6,309,025 The Notes to the Financial Statements are an integral part of this statement. 33 Page 121 of 508 (THIS PAGE LEFT BLANK INTENTIONALLY) 34 Page 122 of 508 CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 Budget Variance with Actual Final Budget - Original Final Amounts Over (Under) REVENUES Taxes $ 17,174,900 $ 17,129,200 $ 16,794,801 $ (334,399) Special Assessments 7,300 7,000 6,484 (516) Licenses and Permits 1,759,700 4,299,300 4,656,994 357,694 Intergovernmental 1,431,600 1,617,100 1,573,435 (43,665) Charges for Services 6,395,700 6,852,800 7,084,693 231,893 Fines and Forfeitures 1,000 7,400 8,138 738 Miscellaneous Revenues: Investment Income 174,000 185,000 500,688 315,688 Contributions and Donations 500 2,800 8,919 6,119 Rents 10,300 10,300 10,641 341 Other 13,200 13,100 61,570 48,470 Total Revenues 26,968,200 30,124,000 30,706,363 582,363 EXPENDITURES Current General Government 4,845,900 4,936,800 4,731,116 (205,684) Public Safety 12,518,400 12,855,800 12,731,133 (124,667) Public Works 5,791,300 5,976,200 5,824,268 (151,932) Culture and Recreation 3,929,500 4,032,300 3,885,624 (146,676) Conservation and Natural Resources 133,100 140,300 131,199 (9,101) Capital Outlay General Government - - 46,000 46,000 Public Safety - 1,000 13,523 12,523 Culture and Recreation - 16,600 34,179 17,579 Total Expenditures 27,218,200 27,959,000 27,397,042 (561,958) Excess of Revenues Over (Under) Expenditures (250,000) 2,165,000 3,309,321 1,144,321 OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset - - 578 578 Transfers In 250,000 250,000 250,000 Total Other Financing Sources (Uses) 250,000 250,000 250,578 578 Net Change in Fund Balances $ - $ 2,415,000 $ 3,559,899 $ 1,144,899 FUND BALANCES Beginning of Year 12,319,444 End of Year $ 15,879,343 The Notes to the Financial Statements are an integral part of this statement. Page 123 of 508 35 (THIS PAGE LEFT BLANK INTENTIONALLY) 36 Page 124 of 508 CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ECONOMIC DEVELOPMENT AUTHORITY For the Year Ended December 31, 2019 REVENUES Taxes Charges for Services Miscellaneous Revenues: Investment Income Other Total Revenues EXPENDITURES Current Economic Development Capital Outlay Economic Development Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Net Change in Fund Balances $ 500 $ (65,635) $ 566,375 FUND BALANCES Beginning of Year Budget Actual Original Final Amounts $ 350,000 12,000 1,000 363,000 362,500 362,500 $ 350,000 12,000 40,000 $ 345,029 12,000 (7,249) 49,737 402,000 399,517 461,035 322,160 6,600 21,276 467,635 343,436 500 (65,635) 56,081 510,294 End of Year (821,472) $ (255,097) Variance with Final Budget - Over (Under) $ (4,971) (7,249) 9,737 (2,483) (138,875) 14,676 (124,199) 121,716 510,294 $ 632,010 The Notes to the Financial Statements are an integral part of this statement. Page 125 of 508 37 CITY OF SHAKOPEE STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2019 Business -Type Activities - Enterprise Funds Governmental Activities - Internal Service Sewer Storm Drainage Refuse Total Funds ASSETS Current Assets Cash and Investments, Including Cash Equivalents $ 8,149,310 $ 14,305,215 $ $ 22,454,525 $ 14,631,307 Accounts Receivable 3,000 1,205 36,464 40,669 Interest Receivable 23,889 40,253 (201) 63,941 42,541 Special Assessment Receivable: - Delinquent 1,408 - - 1,408 - Deferred 165,196 3,049 - 168,245 - Duc from Other Funds 69,022 - - 69,022 - Duc from Other Governments 453,903 151.312 - 605,215 - Inventories 60 4.288 - 4,348 Prepaid Expenses 679 679 1,358 264,400 Total Curren Assets 8,866,467 14,506.001 36,263 23,408,731 14,938,248 Noncurrent Assets Advances to Other Funds, Noncurrent 533,517 1.430,000 - 1.963.517 1,191,394 Capital Assets: Land 4,500 3,792,303 - 3.796.803 221,876 Right of Way 507,746 - 507.746 Construction in Progress 18,284 652,567 - 670.851 379,675 Line Rights 1,368,569 - 1.368,569 - Infrastructure 52,439,640 52,723,509 - 105.163,149 3,806,460 Buildings - - - - 32,821,455 Machinery and Equipment 2,040,447 1,191.336 1.172,068 4,403,851 17,463,120 Total Cost 55,871,440 58,867.461 1,172,068 115,910,969 54,692.586 Less Accumulated Depreciation (16,240,005) (15,517.850) (585,874) (32,343.729) (23,779,681) Nct Capital Assets 39,631,435 43,349.611 586,194 83,567,240 30,912,905 Total NoncurrcntAssets 40,164,952 44,779.611 586,194 85,530,757 32,104,299 Total Assets 49,031,419 59,285.612 622,457 108,939,488 47,042,547 Deferred Outflows of Resources Deferred Outflows of Rcsourccs Related to Pensions 23,765 38,850 Deferred Outflows of Rcsourccs Related to OPER 3,500 3,500 Total Deferred Outflows of Resources 27,265 42,350 Total Assets and Deferred Outflows of Resources LIABILITIES AND NET POSITION Current Liabilities Accounts Payable Contracts Payable Duo to Other Funds Due to Other Governments Current Compensated Absences Total Current Liabilities 62,615 7,000 69,615 $ 49,058,684 $ 59,327,962 $ 622,457 $ 109,009,103 $ 47,042,547 $ 240,895 $ 91,182 $ - $ 332,077 $ 57,081 132,202 6,673 - 138,875 3,734 - - 69,022 69,022 145,256 24,066 169,322 13,787 8.326 22,113 1.117,403 532,140 130247 69,022 731,409 1,178,218 Noncurrent Liabilities Advance from Other Funds - - Compensated Absences 16,851 10,176 Total OPER Liability 50,741 50,741 Net Pension Liability 186,767 305,327 Total Noncurrent Liabilities 254,359 366,244 Total Liabilities 786,499 496,491 Deferred Inflows of Resources Deferred Inflows of Rcsourccs Related to Pensions Deferred Inflows of Rcsourccs Related to OPER 533,517 533,517 602,539 533,517 1,430,000 27,027 1,365,715 101,482 492,094 1,154,120 2,795,715 1,885,529 3,973,933 33,697 55.088 - 88,785 1,370 1,370 - 2,740 Total Deferred Inflows of Resources 35,067 56,458 - 91,525 Net Position Investment in Capital Assets 39.631,435 43349,611 586,194 83.567,240 30,912,905 Unrestricted 8,605,683 15.425,402 (566,276) 23.464,809 12,155,709 Total Net Position 48,237,118 58,775,013 19,918 107.032.049 43.068,614 Total Liabilities, Deferred Inflows of Resources and Nct Position $ 49,058,684 $ 59,327,962 $ 622,457 $ 47,042,547 Adjustment to Reflect the Consolidation of Internal Service Fund Activity Related to Enterprise Funds (See Note 2c) 474,993 Total Business -Type Activities Net Position $ 107,507,042 The Notes to the Financial Statements are an integral part of this statement. Page 126 of 508 38 CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENSES AND CHANCES IN NET POSITION - PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business -Type Activities - Enterprise Funds Sewer Governmental Activities - Internal Service Storm Drainage Refuse Total Funds OPERATING REVENUES Charges for Services $ 4,213,314 $ 1,282,912 $ 137,824 $ 5,634,050 $ Rental Charges 2,520 2,520 3,761,773 Other Charges 6,402 19,250 25,652 9,477 Special Assessments - 2,576 2,576 - Total Operating Revenues 4,222,236 1,304,738 137,824 5,664,798 3,771,250 OPERATING EXPENSES Salaries and Benefits 336,540 588,144 924,684 216,518 Depreciation 874,611 885,285 117,111 1,877,007 2,020,442 Professional Services 230,571 138,630 369,201 57,478 Sewer Disposal Charges 2,578,751 - 2.578,751 - Repairs and Maintenance 40,666 92,027 132,693 131,492 Materials and Supplies 53,653 41,211 94,864 417,968 Rent 26,600 26,600 53,200 - lnsurance 50,600 15,400 66,000 747,232 Utilities 24,480 19,610 44,090 - Total Operating Expenses 4,216,472 1,806,907 117,111 6,140,490 3,591,130 Operating Income (Loss) 5,764 (502,169) 20,713 (475,692) 180,120 NONOPERATING REVENUES (EXPENSES) Investment Income (Loss) 311,202 503,943 (2,941) 812,204 510,055 Insurance Dividends - - 24,282 lnterest Expense - (6,402) (6,402) (19,250) Gain (Loss) on Sale of Asset 18,000 64,498 82,498 165,205 Total Nonoperating Revenues (Expenses) 329,202 568,441 (9,343) 888,300 680,292 Income before Capital Contributions and Transfers 334,966 66,272 11,370 412,608 860,412 Capital Grants and Contribution - 168,203 168,203 5,000 Capital Contributions from Special Assessments 53,622 - 53,622 - Capital Contributions from Outside Developers 1,650,459 3,341,599 4,992,058 162,455 Captial Contributions from Governmental Funds 3,832 463,633 467,465 - Transfers In - - - 2,084,504 Transfers Out (125,000) (125,000) (250,000) (2,434,504) Change in Net Position 1,917,879 3,914,707 11,370 5,843,956 677,867 NET POSITION Beginning of Year 46,319,239 54,860,306 8,548 101,188,093 42,390,747 End of Year $ 48,237,118 $ 58,775,013 $ 19,918 $ 107,032,049 $ 43,068,614 Adjustment to Reflect the Consolidation of Internal Service Fund Activity Related to Enterprise Funds (See Note 2d) 21,529 Governmental Activites Contribution Revenue Reported Above (467,465) Transfers In of Captial Assets from Governmental Activities 467,465 Change in Net Position - Business -Type Activities $ 5,865,485 The Notes to the Financial Statements are an integral part of this statement. Page 127 of 508 39 CITY OF SHAKOPEE STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business -Type Activities - Enterprise Funds Storm Sewer Drainage Refuse Governmental Activities - Internal Total Service Funds CASH FLOWS - OPERATING ACTIVITIES Receipts from Customers and Users $ 4,217,777 $ 1,311,120 $ 127,406 $ 5,656,303 $ 3,777,954 Payments to Suppliers (2,815,973) (275,107) (3,091,080) (1,447,038) Payments to Employees (338,598) (586,450) (925,048) (121,579) Net Cash Flows - Operating Activities 1,063,206 449,563 127,406 1,640,175 2,209,337 CASH FLOWS - NONCAPITAL FINANCING ACTIVITIES Payment Received (Paid) on Interfund Loan 106,703 110,000 (106,703) 110,000 (60,000) Receipts from Interfund Services 11,250 - 11,250 55,000 Payments for Interfund Services - (11,250) (11,250) Interest Expense on Interfund Loan Repayment - (6,402) (6,402) (19,250) Insurance Dividends - - 24,282 Transfer from Other Funds - - 2,084,504 Transfer to Other Funds (125,000) (125,000) (250,000) (2,434,504) Net Cash Flows - Noncapital Financing Activities (7,047) (15,000) (124,355) (146,402) (349,968) CASH FLOWS - CAPITAL AND RELATED FINANCING ACTIVITIES Trunk Charges 201,810 799,313 1,001,123 Capital Related Special Assessments 53,622 - 53,622 Capital Grant - 168,203 168,203 Donations - - - 5,000 Proceeds from Disposal of Capital Assets 18,000 137,560 155,560 285,867 Acquisition of Capital Assets (1,638,555) (777,928) (2,416,483) (666,816) Net Cash Flows - Capital and Related Financing Activities (1,365,123) 327,148 (1,037,975) (375,949) CASH FLOWS - INVESTING ACTIVITIES Interest Received 319,115 514,100 (3,051) 830,164 516,604 Net Cash Flows - Investing Activities 319,115 514,100 (3,051) 830,164 516,604 Net Change in Cash and Cash Equivalents 10,151 1,275,811 1,285,962 2,000,024 CASH AND CASH EQUIVALENTS Beginning of Year 8,139,159 13,029,404 21,168,563 12,631,283 End of Year $ 8,149,310 $ 14,305,215 $ $ 22,454,525 $ 14,631,307 The Notes to the Financial Statements are an integral part of this statement. 40 Page 128 of 508 CITY OF SHAKOPEE STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (Continued) For the Year Ended December 31, 2019 Business -Type Activities - Enterprise Funds Sewer Governmental Activities - Storm Internal Drainage Refuse Total Service Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS - OPERATING ACTIVITIES Operating Income (Loss) $ 5,764 $ (502,169) $ 20,713 $ (475,692) $ 180,120 Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows - Operating Activities: Depreciation Expense 874,611 885,285 117,111 1,877,007 2,020,442 Pension Expense (3,115) 16,778 13,663 Changes in: Accounts Receivable (1,746) 2,775 (10,418) (9,389) 6,704 Due from Other Governments (45,741) 4,354 (41,387) Special Assessments 43,028 (747) 42,281 Due to Other Governments 57,962 2,657 60,619 Accounts and Contracts Payable 131,313 54,375 185,688 (67,355) Inventory 79 1,345 1,424 Prepaid Expenses (6) (6) (12) (25,513) Compensated Absences Payable (1,398) (17,539) (18,937) 94,939 Net OPEB Obligation 2,455 2,455 4,910 Total Adjustments 1,057,442 951,732 106,693 2,115,867 2,029,217 Net Cash Flows - Operating Activities $ 1,063,206 $ 449,563 $ 127,406 $ 1,640,175 $ 2,209,337 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Contributions of Capital Assets from Developers $ 1,448,649 $ 2,542,286 $ $ 3,990,935 $ 162,455 Transfer of Capital Assets $ 3,832 $ 463,633 $ $ 467,465 $ The Notes to the Financial Statements are an integral part of this statement. 41 Page 129 of 508 CITY OF SHAKOPEE STATEMENT OF FIDUCIARY NET POSITION December 31, 2019 Custodial Fund SW METRO DRUG TASK FORCE ASSETS Cash and Investments $ 165,594 Interest Receivable 478 Due from Other Governments 28,708 Prepaids 5,743 Total Assets 200,523 LIABILITIES Accounts Payable 1,388 Deposits Payable 52,624 Due to Other Governments 37,790 Total Liabilities 91,802 NET POSITION Restricted for Task Force 108,721 Total Net Position $ 108,721 The Notes to the Financial Statements are an integral part of this statement. 42 Page 130 of 508 CITY OF SHAKOPEE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION December 31, 2019 Custodial Fund SW METRO DRUG TASK FORCE Additions Member Contributions $ 98,700 Miscellaneous 14,586 Investment Income 8,340 Operating Grant- State 115,000 Forfeitures 70,907 Total Additions 307,533 Deductions Contracted Services 235,982 Vehicle Expenses 19,435 Supplies and Evidence 13,224 Insurance 21,660 Professional Fees 61,817 Training 3,105 Total Deductions 355,223 Net Increase (Decrease) in Fiduciary Net Position (47,690) Net Position, January 1 156,411 Net Position, December 31 $ 108,721 The Notes to the Financial Statements are an integral part of this statement. 43 Page 131 of 508 CITY OF SHAKOPEE STATEMENT OF NET POSITION - COMPONENT UNIT - SPUC December 31, 2019 Electric Water Total ASSETS Current Assets Cash and Investments $ 39,752,560 $ 9,210,673 $ 48,963,233 Accrued Interest Receivable 65,627 135,959 201,586 Customer Accounts Receivable 3,737,683 305,522 4,043,205 Allowance for Uncollectible Accounts (40,833) (9,799) (50,632) Other Accounts Receivable 104,019 86,826 190,845 Due from City of Shakopee 95,008 116,849 211,857 Inventory 1,376,162 31,439 1,407,601 Prepaid Expenses 46,371 15,458 61,829 Total Current Assets 45,136,597 9,892,927 55,029,524 Noncurrent Assets Restricted Assets: Customer Deposits Account 2,268,122 95,945 2,364,067 Connection Account - 14,781,889 14,781,889 Water Reconstruction Account - 488,866 488,866 Emergency Repairs Account 100,000 100,000 Capital Assets: Plant in Service 74,092,704 72,601,777 146,694,481 Accumulated Depreciation (28,325,053) (21,192,768) (49,517,821) Construction in Progress 929,127 1,004,487 1,933,614 Total Noncurrent Assets 49,064,900 67,780,196 116,845,096 Total Assets 94,201,497 77,673,123 171,874,620 Deferred Outflows of Resources Deferred Outflows of Resources Related to Pensions Total Assets and Deferred Outflows of Resources LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable Due to City of Shakopee Other Current Liabilities Total Current Liabilities Liabilities Payable from Restricted Assets Customer Deposits Total Liabilities Payable from Restricted Assets 242,380 80,794 323,174 $ 94,443,877 $ 77,753,917 $ 172,197,794 $ 3,024,062 $ 1,114,597 $ 4,138,659 398,424 180,442 578,866 331,261 206,608 537,869 3,753,747 1,501,647 5,255,394 2,268,122 2,268,122 95,945 2,364,067 95,945 2,364,067 Noncurrent Liabilities Unearned Revenues 5,210 5,210 Customer Advances 686,831 44,124 730,955 Net Pension Liability 2,649,666 883,222 3,532,888 Total Noncurrent Liabilities 3,341,707 927,346 4,269,053 Total Liabilities 9,363,576 2,524,938 11,888,514 Deferred Inflows of Resources Related to Pensions 504,508 Total Liabilities and Deferred Inflows of Resources 9,868,084 168,170 672,678 2,693,108 12,561,192 Net Position Investment in Capital Assets 46,696,778 52,413,496 99,110,274 Restricted for Connections & Reconstruction - 15,270,755 15,270,755 Unrestricted 37,879,015 7,376,558 45,255,573 Total Net Position 84,575,793 75,060,809 159,636,602 Total Liabilities and Net Position $ 94,443,877 $ 77,753,917 $ 172,197,794 The Notes to the Financial Statements are an integral part of thi.agee 13 of 508 44 CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - COMPONENT UNIT - SPUC For the Year Ended December 31, 2019 Operating Revenues Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Rentals and Miscellaneous Interdepartmental Rent from Water Investment Income Interest Expense Gain(Loss) on Disposition of Property Total Nonoperating Revenues (Expenses) Income Before Contributions Capital Contributions Change in Net Position NET POSITION Beginning of Year End of Year Electric Water Total $ 49,650,814 $ 4,861,369 $ 54,512,183 44,156,725 5,494,089 259,598 90,000 980,761 (64,280) 138,545 1,404,624 6,898,713 759,222 7,657,935 76,917,858 5,575,610 49,732,335 (714,241) 268,265 527,643 (2,295) (62,391) 731,222 16,981 6,922,746 4,779,848 527,863 90,000 1,508,404 (66,575) 76,154 2,135,846 6,915,694 7,681,968 6,939,727 14,597,662 68,121,082 145,038,940 $ 84,575,793 $ 75,060,809 $159,636,602 The Notes to the Financial Statements are an integral Dart of this statement. Page 13 of 5 45 (THIS PAGE LEFT BLANK INTENTIONALLY) 46 Page 134 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Shakopee is a statutory city governed by an elected mayor and four council members. The accompanying fmancial statements present the government entities for which the government is considered to be financially accountable. The financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the fmancial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities or level of services performed or provided by the organization or there is a potential for the organization to provide specific fmancial benefits to or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, certain organizations have been defined and are presented in this report as follows: Blended Component Unit — Reported as if they were part of the City. Discretely Presented Component Unit — Entails reporting the component unit financial data in statements separate from the financial date of the City. Joint Ventures and Jointly Governed Organizations — The relationship of the City with the entity is disclosed. For each of the categories above, the specific entities are identified as follows: 1. Blended Component Unit The Shakopee Economic Development Authority (EDA) was organized to promote development, improve housing and reduce blighted areas in the City. It is included by reason of the City Council having fmal approval for Shakopee EDA actions and the Shakopee EDA Board being comprised entirely of City Council Members. City staff handles Shakopee EDA activity including Shakopee EDA funds and the City approves Shakopee EDA tax levies and bonding activity. The City has operational responsibility of the EDA. The activity of the Shakopee EDA is shown in the Shakopee EDA Special Revenue Fund in the City's financial statements. No separate financial statements for the Shakopee EDA are issued. For any information desired beyond what is presented in this report, contact the Finance Director for the City of Shakopee at 485 Gorman St., Shakopee, Minnesota 55379. 47 Page 135 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued) 2. Discretely Presented Component Unit The electric and water utilities of the Shakopee Public Utilities Commission (SPUC) are self- supporting entities and collectively comprise separate enterprise funds of the City of Shakopee (the "City"). The utility provides electric and water operations to properties within the City as well as electric distribution to certain other areas outside of the City. The utility accounts for the costs of electric and water operations on a continuing basis and is managed by the SPUC. The SPUC Board consists of five members who serve three year consecutive terms. SPUC is presented as a discretely presented component unit because of the nature and significance of its relationship with the primary government. Separate financial statements are included in this report for the SPUC Funds to emphasize that it is legally separate from the City. Based on its relationship with the City, it would be misleading to exclude SPUC as a component unit. It is this criterion that results in SPUC being reported as a discretely presented component unit. The complete fmancial statements can be obtained from the Shakopee Public Utility Commission, 225 Sarazin Street, Shakopee, Minnesota 55379. 3. Joint Ventures and Jointly Governed Organizations Local Government Information Systems Local Government Information Systems (LOGIS) is a joint venture of approximately 44 governmental entities that provides computerized data processing and support services to its members. Legally separate, the City does not appoint a voting majority of the Board and LOGIS is fiscally independent of the City. During 2019, the City paid $235,923 to LOGIS for services provided which is included in expenditures of the General Fund and Information and Technology Internal Service Fund. Financial statements are available by contacting LOGIS, 5750 Duluth Street, Golden Valley, Minnesota 55422- 4. Other Organizations Shakopee Volunteer Fire Department Relief Association The Shakopee Volunteer Fire Department Relief Association (the "Association") is organized as a nonprofit organization, legally separate from the City, by its members to provide pensions and other benefits to such members in accordance with Minnesota Statutes. It is not a component unit of the City because the Board of Directors is appointed by the membership of the Association and not by the City Council. The fmancial oversight of the City is limited to approval authority for amending the Association bylaws when the change results in an increase in the pension benefit level requiring an increased City contribution. The Association has the authority to levy its own taxes for pensions and deficits and would continue to exist for its members if the City was dissolved. Because the Association is fiscally independent of the City, the fmancial statements of the Association have not been included within the City's reporting entity. 48 Page 136 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government -Wide and Fund Financial Statements The government -wide fmancial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the City. The fiduciary funds are only reported in the Statement of Fiduciary Net Position at the fund financial statement level. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Interest on general long-term debt is considered an indirect expense and is reported separately in the Statement of Activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated revenues are reported as general revenues rather than program revenues. Separate fmancial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Escrow Custodial Fund is presented in the fiduciary fund financial statements. Since, by definition, these assets are being held for the benefit of a third party (other local governments, private parties, etc.) and cannot be used to address activities or obligations of the City, this Fund is not incorporated into the government -wide statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide fmancial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The Custodial Funds report using the economic resources measurement focus and the accrual basis of accounting. 49 Page 137 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Description of Funds: Major Governmental Funds: General Fund — This Fund is the City's primary operating fund. It accounts for all financial resources of the general City, except those required to be accounted for in another fund. Economic Development Authority Special Revenue Fund — This Fund accounts for development, improve housing and reduce blighted areas of the City. Taxes, grants and contributions are the dedicated funding sources. Capital Improvements Capital Project Fund — This Fund accounts for the capital projects of the City not accounted for in separate capital funds. TIF District No. 17 Amazon Capital Project Fund — This Fund accounts for tax increment fmancing district number 17- Highway 101 and Shenandoah Drive development project. TIF District No. 19 Riverfront Capital Project Fund — This Fund accounts for tax increment fmancing district number 19- Riverfront Bluff redevelopment project. Proprietary Funds: Sewer Fund — This Fund accounts for operations of the City's sewer utility. Storm Drainage Fund — This Fund accounts for the activities of the City's storm drainage utility. Refuse Fund — This Fund accounts for operations associated with the City's garbage carts and recycling operations. 50 Page 138 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Description of Funds: (Continued) Internal Service Funds: Equipment Fund — This Fund accounts for the City's acquisition of larger pieces of equipment. Buildings Fund — This Fund accounts for the City's funds accumulated for construction, improvement or major repairs of major public buildings. Park Assets Fund — This Fund accounts for the City's funds accumulated for the replacement of park assets. Employee Benefits Fund — This Fund accounts for the City's funds accumulated for compensated absences and OPEB. Information and Technology Fund — This Fund accounts for the City's funds accumulated for information technology resources. Self Insurance Fund —This Fund is used to account for all revenues and expenses associated with premiums, deductibles and claims for general liability and workers compensation policy through LMCIT. The City's internal service funds are allocated between governmental and business -type activities and are combined, as allocated in Note 2, with the respective governmental activities and business -type activities in the government -wide financial statements. Fiduciary Fund: Southwest Metro Drug Task Force Custodial Fund — This Fund accounts for the activity related to the task force held by the City in a strictly custodial capacity. Component Unit Funds: Electric Fund — This Fund accounts for the operations of the SPUC's electric utility. Water Fund — This Fund accounts for the operations of the SPUC's water utility. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are payments, where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City's utility function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 51 Page 139 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this defmition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity 1. Deposits and Investments Cash and investments include balances from all funds that are combined and invested to the extent available in various securities as authorized by state law. Earnings from the pooled investments are allocated to the individual funds based on the average of month -end cash and investment balances. All funds of the City are included in the pooled investments with the exclusion of the 2019A bond proceeds which is included in the non -pooled investments. The City's cash and cash equivalents are considered to be cash on hand, demand deposits and highly liquid debt instruments purchased with original maturities of three months or less from the date of acquisition. Certain investments for the City and Component Unit are reported at fair value as disclosed in Note 4. The City and Component Unit categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The Hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are valued using matrix pricing model; Level 3 inputs are significant unobservable inputs. Minnesota Statutes authorizes the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements and commercial paper of the highest quality with a maturity of no longer than 270 days and in the Minnesota Municipal Money Market Fund. 52 Page 140 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 1. Deposits and Investments (Continued) In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities are valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as "advances to/from other funds". All other outstanding balances between funds are reported as "due to/from other funds". Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "interfund balances". All trade and property tax receivables are shown at a gross amount since both are assessable to the property taxes and are collectible upon the sale of the property. The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Scott County is the collecting agency for the levy and remits the collections to the City three times a year. The tax levy notice is mailed in March with the first half of the payment due on May 15 and the second half due on October 15. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable. The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor submits the list of taxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. 53 Page 141 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 3. Inventory, Prepaid Items and Other Assets Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund fmancial statements. Prepaid expenditures of governmental funds are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. Inventories of enterprise funds are valued at average cost using the first in, first out (FIFO) method. Inventory in the governmental funds are recorded as an expenditure when consumed rather than when purchased. Other assets include unamortized debt issuance costs, the Emergency Repairs Account and the asset and related amortization relating to the Electric Plant Acquisition. 4. Land Held for Resale Land is acquired by the City for subsequent resale for redevelopment purposes. Land held for resale is reported as an asset at the lower of cost or estimated realized value in the fund that acquired it. 5. Restricted Assets Certain cash and investments in the component units are classified as restricted. The Electric Fund has monies restricted for customer deposits and debt service. The Water Fund has monies restricted for water production and trunk distribution facility acquisition, based on trunk and connection fees collected from users, construction projects and debt service. 6. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the City, excluding the component unit., as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of two years. Capital assets for the component unit are defined as assets with an initial, individual cost of more than $1,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. 54 Page 142 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 6. Capital Assets (Continued) Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives. Assets Years Buildings 30-50 Park Buildings 30 Building Improvements 25 Light Vehicles 4-10 Machinery and Equipment 4-20 Utility Distribution System 50-75 Infrastructure 30-50 Fire Trucks 20-25 7. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has two items that qualify for reporting in this category. The City presents deferred outflows of resources on the Statement of Net Position for the deferred charge related to pensions and other postemployment benefit resources. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Accordingly, the items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position. These items result from actuarial calculations and current year pension contributions and OPEB contributions made subsequent to the In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City only has one type of item, which arises only under the modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item is reported only in the governmental funds balance sheet as unavailable revenue. 55 Page 143 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 7. Deferred Outflows/Inflows of Resources The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City presents deferred inflows of resources on the Statements of Net Position for deferred inflows of resources related to pensions and other postemployment benefit resources. Deferred inflows of resources related to pensions results from the net difference between projected and actual earnings on plan investments, changes in proportionate share and the differences between expected and actual economic experience. 8. Compensated Absences Vacation and sick leave benefits are recorded as expenditures in the Employee Benefits Internal Service Fund and governmental funds when the obligations have matured and are expected to be liquidated with expendable financial resources. City employees earn vacation time based on years of City service. Employees who have 0 to 15 years of employment may accumulate no more than 240 hours. Employees who have 16 or more years of service may accumulate no more than 360 hours of vacation leave. Upon termination, employees will receive compensation for all unused vacation. Employees earn sick leave and may accumulate to a maximum of 960 hours. The City compensates employees who leave municipal service at the rate of 45% up to 15 years of service. After 15 years of service, employees who leave are compensated at the rate of 55% plus 2% for each year of service beyond 15 years up to 75% of unused sick leave. 9. Long -Term Obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund type Statement of Net Position. Enterprise fund bond premiums and discounts, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. 56 Page 144 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 10. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and the relief association and additions to/deductions from PERA's and the relief association's fiduciary net position have been determined on the same basis as they are reported by PERA and the relief association except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General fund is typically used to liquidate governmental pension liability. 11. Other Postemployment Benefits Under Minnesota statute 471.61, subdivision 2b, public employers must allow retirees and their dependents to continue coverage indefinitely in an employer -sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in a group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees are able to add dependent coverage during open enrollment period or qualifying life event prior to retirement. All premiums are funded on a pay-as-you- go basis. The liability was determined, in accordance with GASB Statement No. 75, at January 1, 2018. The General fund is typically used to liquidate governmental other postemployment benefits payable. 12. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources in the government -wide financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted in the government -wide financial statement when there are limitations on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 13. Use of Estimates The preparation of fmancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenditures/expense during the reporting period. Actual results could differ from those estimates. 57 Page 145 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 14. Fund Equity a. Classification In the fund fmancial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in those funds can be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form. Amounts that are restricted to specific purposes either by a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or regulations of other governments or b) imposed by law through enabling legislation are classified as restricted fund balances. Amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council (highest level of decision making authority) through resolution are classified as committed fund balances. Amounts that are constrained by the City's intent to be used for specific purposes but are neither restricted nor committed are classified as assigned fund balances. Assignments are made by the City's Finance Director based on the City Council's direction. Positive unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed or assigned to a specific purpose in the General Fund. For governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. The City's policy is to consider unrestricted fund balance to be spent by City Council action, appropriations or emergency situations. The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned and unassigned) are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. b. Minimum Fund Balance The City's target General Fund balance is to maintain an unassigned level between 35% (minimum) and 50% of ensuing year's budgeted expenditures. This level is to provide working capital for cash flow, expected decline in revenues and unforeseen expenditures such as natural disasters. Replenishing fund balance when it falls below the target level shall be accomplished by interfund transfers or budgeting for expenditures and other uses to be less than revenues or other sources over a period not to exceed three years. Annually the City Council will decide what to do with the General Fund unassigned fund balance that exceeds 50% of the ensuing year's expenditure budget. Any excess fund balance transfers will not be used as a funding source for ongoing recurring 58 expenditures. Page 146 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 2 — RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government -Wide Statement of Net Position The governmental fund Balance Sheet includes reconciliation between fund balance — total governmental funds and net position — governmental activities as reported in the government -wide Statement of Net Position. One element of that reconciliation explains that "Internal Service Funds are used by management to charge the costs of providing certain services for the City." Net Position of the Internal Service Funds Less Portion Loss Related to Business -Type Activities Net Adjustment to Increase Fund Balance- Total Governmental Funds to Arrive at Net Position- Governmental Activities $ 43,068,614 (474,993) $ 42,593,621 B. Explanation of Certain Differences between the Governmental Fund Statements of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities Another element of that reconciliation states that "Internal Service Funds are used by management to charge the costs of providing various services for the City." The details of this difference are as follows: Change in Net Position of the Internal Service Fund Less the Net of Indirect Revenues and Expense Net Adjustment to Decrease Net Change in Fund Balances - Total Government Funds to Arrive at Changes in Net position of Government Activities $ 677,867 (21,529) $ 656,338 C. Explanation of Certain Differences between the Proprietary Fund Statements of Net Position and the Government -Wide Statement of Net Position The proprietary fund Statement of Net Position includes reconciliation between net position — total enterprise funds and net position of business -type activities as reported in the government -wide Statement of Net Position. The description of the sole reconciliation is "adjustment to reflect the consolidation of internal service fund activities related to enterprise funds." The details are as follows: Internal Payable Representing Costs less than Charges to Business- Type Activities- Current Year $ 474,993 59 Page 147 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 2 — RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED) D. Explanation of Certain Differences between the Proprietary Fund Statements of Revenues, Expenses, and Changes in Net Position and the Government -Wide Statement of Activities Another element of that reconciliation states that "Internal Service Funds are used by management to charge the costs of providing various services for the City." The details of this difference are as follows: Net adjustment to Increase Net Change in Fund Balances- Total Enterprise Funds to Arrive at Changes in Net Position of Business- Type Activities $ 21,529 NOTE 3 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annually appropriated budgets are adopted for the General Fund and EDA. Budgeted amounts present the originally adopted budget and final amended budget approved by the City Council. The City does not use encumbrances. Budgeted expenditure appropriations lapse at year-end. 1. In August of each year, City staff submits to the City Council, a proposed operating budget for the year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them for the upcoming year. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments. 4. Expenditures may not legally exceed budgeted appropriations at the division level. The division level expenditures are presented in the schedule of revenues, expenditures and changes in fund balances — budget and actual — general fund. No fund's budget can be increased without City Council approval. The City Council may authorize transfer of budgeted amounts between divisions within any fund. Management may amend budgets within a division level, so long as the total division budget is not changed. 5. An annual budget is adopted for the General Fund and EDA. Annual appropriated budgets are not adopted for Debt Service Funds because effective budgetary control is alternatively achieved through bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and budgets are not adopted. 6. Budgeted amounts are as originally adopted and as amended in December by the City Council. Budgeted expenditure appropriations lapse at year-end. 60 Page 148 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 3 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED) B. Deficit Net Position and Fund Balance The Economic Development Authority special revenue fund had a negative fund balance of $255,097 on December 31, 2019 as a result of partial construction costs to install utilities and streets in EDA land held for resale. Anticipated land sales in this area are expected to recover this deficit. The TIF District No. 17 Amazon capital project fund had a negative fund balance of $1,426,745 on December 31, 2019 as a result of street improvements costs. Tax increment revenue over the next seven years is anticipated to eliminate this deficit. The TIF District No. 19 Riverfront capital project fund had a negative fund balance of $428,906 on December 31, 2019 as a result of property acquisition costs. Developer reimbursment at the time of closing is anticipated to eliminate this deficit. The T1F District No. 20 Enclave capital project fund had a negative fund balance of $40,923 on December 31, 2019 as a result of lot improvements at the old city hall site. Tax increment revenue is anticipated to eliminate this deficit. The Employee Benefits internal service fund had a negative net position of $1,422,577 on December 31, 2019. This deficit has been in place for many years and is not expected to be resolved. Management's position is that the cash balance should be sufficient enough to cover the current compensated absences and not necessarily the noncurrent portion of compensated absences. NOTE 4 — DEPOSITS AND INVESTMENTS A. Deposits In accordance with applicable Minnesota Statutes, the City and the Component Unit maintains deposits at depository banks authorized by the City Council and the Commissioners. Custodial Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligation to the holder of the investment. Minnesota Statutes 118A.04 and 188A.05 limit investments that are in the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy references Minnesota Statutes and further limits the types of investments that the City is allowed to invest in. The Commission has a deposit policy that requires the Commission's deposits to be collateralized as required by Minnesota Statues 118.03 for an amount exceeding FDIC, SAIF, BIF, FCUA, or other federal deposit coverage. As of December 31, 2019, the City and Commission's bank balances were not exposed to custodial credit risk because they were insured through Federal Deposit Insurance Corporation (FDIC) and properly collateralized with securities held by the pledging financial institutions' trust departments or agents in the City's name. As of December 31, 2019, the City had the following deposits: City Deposits Component Unit Deposits $ 2,911,176 12,672,972 Total Deposits $ 15,584,148 Page 149 of 508 61 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 4 — DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments As of December 31, 2019, the City held the following investments: Value Years to Maturity Less than One Year 1-5 Years Moody's 5-10 Years 10-15 Yeats Concentration Rating Pooled Investments: Certificate of Deposit S 7,782,908 S 2,997,136 S 4,785,772 S S 12.17% NR Commercial Paper 2,497,540 2,497,540 - 3.91% NR Money Market Fund 4,216,963 4,216,963 6.60% NR FHLB 7,494,543 7,494,543 - - - 11.73% NR FHLMC 2,281,807 10,546 8,963 1,105,514 1,156,784 3.57% NR FNMA 11,256,913 5,878 - 784,079 10,466,956 17.61% NR Municipal Bond 8,906,151 3,135,608 5,239,628 530,915 - 13.94% AAA-A2 US Treasury Notes 224,471 224,471 - 0.35% AAA US Treasury Bill 19,245,998 3,136,189 14,900,150 1,209,659 30.12% NR Total Investments S 63,907,294 S 23,718,874 S 24,934,513 S 3,630,167 S 11,623,740 As of December 31, 2019, the City held the following cash with fiscal agent: Non -Pooled Investments: Money Market Fund Value Years to Maturity Less than One Year 1-5 Years 5-10 Years Moody's 10-15 Years Concentration Rating 1,008,255 S 1,008,255 S S S 100.00% NR As of December 31, 2019, the component units had the following investments: Value Years to Maturity Less than One Year 1-5 Years Moody's 5-10 Years 10-15 Years Concentration Rating Pooled Investments: 4M S 12,920,563 S 12,920,563 S S S 23.92% NR 4M Plus 3,681,571 3,681,571 6.81% NR 4M Term Series 18,000,000 18,000,000 33.32% NR Money Market Fund 20,093 20,093 - 0.04% NR US Treasuries 10,325,642 2,400,199 7,925,443 19.11% NR US Agencies 9,075,514 5,050,218 4,025,296 16.80% AAA Total Investments S 54,023,383 S 42,072,644 S 11,950,739 S S The City's investment policy, which covers all funds except the component units, addresses the following risks. The City's component units also have a formal policy to address the following risks. Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligation to the holder of the investment. Minnesota Statutes 118A.04 and 188A.05 limit investments that are in the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy references Minnesota Statutes and further limits the types of investments that the City is allowed to invest in. The Commission's policy states to ensure safety, it is the policy of the Shakopee Public Utilities Commission that when Considering an investment, all depositories under consideration be cross-checked against existing investments to make certain that funds in excess of insurance limits are not made in the same institution unless collateralized as outlined below. Furthermore, the Shakopee Public Utilities Commission will approve all financial institutions, brokers, and advisers with which the Shakopee Public Utilities Commission will do business. 62 Page 150 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 4 — DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Custodial Credit Risk — Investments: For an investment, this is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy states all securities purchased, including appropriate collateral, shall be placed with an independent third party for custodial safekeeping. The Commission's policy states they will minimize risk by only purchasing investments that are held in safekeeping with a Federal Reserve bank, United States Bank with corporate trust powers, a primary reporting dealer to the Federal Reserve Bank of New York, or a broker dealer having its principal executive office in Minnesota and that designated brokers have insurance through the SIPC (Securities Investor Protection Corporation). As of December 31, 2019, all investments of the City and the component units were insured, registered and held by the City or its agent and in the City's name, or by the SPUC and in the SPUC's name. Interest Rate Risk: This is the risk that changes in market interest rates will adversely affect the fair value of an investment. The City's policy states the investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. To the extent possible, the City shall attempt to match its investments in short-term operating funds with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than ten years from the date of purchase. Long-term funds shall not be invested in securities exceeding 10 years in modified duration, at time of purchase. The Commission's policy states that will minimize interest rate risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operation, thereby avoiding the need to sell securities on the open market prior to maturity. Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a single issuer. According to the City's investment policy, the aggregate investment portfolio shall be diversified by: • Limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding securites backed by the U.S. government). • Limiting investments in securities that have higher credit risks. • Investing in securities with varying maturities. • Continuously investing a portion of the portfolio in readily available funds, such as Local Government Investment Pools (LGIP), money market funds or repurchase agreements to ensure appropriate liquidity is maintained in order to meet ongoing obligations. • Having all investments, other than those in direct obligations or agencies of the United States, secured by collateral or repurchase agreements, shall not exceed 50% of the aggregate investment portfolio. Mortgage backed securities shall not exceed 30% of the aggregate investment portfolio, at the time of investment. • Limiting investments in any one corporation to 5% of the aggregate investment portfolio. 63 Page 151 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 4 — DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) The Commission's policy states they will minimize risk by only purchasing investments that are held in safekeeping with the Federal Reserve bank, United States Bank with corporate trust powers, a primary reporting dealer to the Federal Reserve Bank of New York, or a broker dealer having its principal executive office in Minnesota and that designated brokers have insurance through a SIPC (Securities Investor Protection Corporation). As of December 31, 2019 the City held investments that exceeded 5% of its total investments for all funds as noted in the table on the previous page. The component units' investments noted in the table above exceeded 5% of its total investments as of December 31, 2019. The City has the following recurring fair value measurements as of December 31, 2019: Fair Value Measurement Using Value Level 1 Level 2 Level 3 Investments at Fair Value: Certificate of Deposit $ 7,782,908 $ - $ 7,782,908 $ - Commercial Paper 2,497,540 - 2,497,540 - FHLB 7,494,543 - 7,494,543 - FHLMC 2,281,807 - 2,281,807 - FNMA 11,256,913 - 11,256,913 - Municipal Bond 8,906,151 - 8,906,151 - US Treasury Notes 224,471 224,471 - - US Treasury Bill 19,245,998 19,245,998 - - Total/Subtotal 59,690,331 $ 19,470,469 $ 40,219,862 $ Investments at Amortized Cost: Money Market Fund 5,225,218 Total $ 64,915,549 Publicly traded assets are valued in accordance with market quotation or valuation methods from services believed by our broker to be reliable. Assets, which are not publicly traded, may reflect values from other external sources or special valuations prepared by our broker. Assets for which a current value is not available may be reflected as not valued, at par value, or at a nominal value of $1.00. $19,401,156 of $54,023,383 of the Component Unit's investments at December 31, 2019 are valued using a quoted market prices (Level 2 inputs). $34,622,227 are investments uncategorized in accordance with GASB 72 and GASB 79. 64 Page 152 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 4 — DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) The following is a summary of total deposits and investments as of December 31, 2019: Deposits (Note 3.A.) $ 15,584,148 City Investments 63,907,294 City Investment with Fiscal Agent 1,008,255 Component Unit Investments 54,023,383 City Petty Cash 3,435 Component Unit Petty Cash 1,700 Total Deposits and Investments $ 134,528,215 Deposits and investments are presented in the December 31, 2019 basic financial statements as follows: Primary Fiduciary Component Government Funds Unit Total Statement of Net Position: Cash and Investments $66,656,311 $ - $48,963,233 $ 115,619,544 Cash with Fiscal Agent 1,008,255 - - 1,008,255 Restricted Assets - - 17,734,822 17,734,822 Statement of Fiduciary Net Position: Cash and Investments Total $67,664,566 $ - $66,698,055 $ 134,362,621 NOTE 5 — RECEIVABLES/UNAVAILABLE REVENUE A. Taxes and Assessments Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current year, the various components of unavailable revenue reported in the governmental funds were as follows: Delinquent Delinquent Deferred Property Special Special Taxes Assessments Assessments Total General Fund $ 90,926 $ 3,045 $ 30,780 $ 124,751 Economic Development Authority 2 - - 2 Capital lmprovement - 28,079 2,555,969 2,584,048 Nonmajor Funds - - 798,606 798,606 Total $ 90,928 $ 31,124 $ 3,385,355 $ 3,507,407 Page 153 of 508 65 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 5 — RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED) B. Forgivable Loan The Economic Development Authority (EDA) offers a commercial exterior improvement program which is used to encourage property owners to maintain and invest in their properties in order to promote economic growth. The program offers up to 50 percent of project costs for eligible improvements as a no -interest forgivable loan. Forgiveness of the loan takes place over a five-year period with 20 percent of the aware forgiven annually. The city may extend or reduce the repayment period based on the dollar amount of the reward. As of December 31, 2019, the balance of these loans is $448,692. There has been an allowance for doubtful accounts recorded for the same amount, as it is fully expected that these loans will be forgiven. NOTE 6 — CAPITAL ASSETS Governmental capital asset activity for the year ended December 31, 2019 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets not being Depreciated: Land $ 21,898,060 $ 1,359,400 $ $ 23,257,460 Right -Of -Way 253,904 240,842 - 494,746 Construction in Progress 2,015,091 3,984,127 1,619,045 4,380,173 Total Capital Assets not being Depreciated 24,167,055 5,584,369 1,619,045 28,132,379 Capital Assets being Depreciated: Buildings Infra structure Machinery and Equipment Total Capital Assets being Depreciated 73,189,038 103,606 163,936,298 6,790,466 24,694,014 497,597 261,819,350 7,391,669 1,094,927 73,292,644 170,726,764 24,096,684 1,094,927 268,116,092 Less Accumulated Depreciation for: Buildings 14,246,837 1,605,660 15,852,497 Infrastructure 89,809,274 5,118,524 94,927,798 Machinery and Equipment 9,836,153 1,506,912 888,557 10,454,508 Total Accumulated Depreciation 113,892,264 8,231,096 888,557 121,234,803 Total Capital Assets being Depreciated, Net 147,927,086 (839,427) 206,370 146,881,289 Governmental Activities Capital Assets, Net $172,094,141 $ 4,744,942 $ 1,825,415 $175,013,668 Page 154 of 508 66 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 6 — CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities: General Government $ 355,229 Public Safety 758,891 Public Works 5,293,908 Parks and Recreation 1,818,072 Economic Development 4,996 Total Depreciation Expense- Governmental Activities 8,231,096 Business -type capital asset activity for the year ended December 31, 2019 was as follows: Beginning Ending Balance Increases Decreases Balance Business -Type Activities: Capital Assets not being Depreciated: Land $ 3,796,803 $ Right -Of -Way 507,746 Construction in Progress 140,271 595,775 Total Capital Assets not being Depreciated 4,444,820 595,775 $ $ 3,796,803 507,746 65,195 670,851 65,195 4,975,400 Capital Assets being Depreciated: Line Rights 1,368,569 - 1,368,569 Plant in Service 99,339,731 5,823,418 105,163,149 Machinery and Equipment 4,274,637 520,886 391,672 4,403,851 Total Capital Assets being Depreciated 104,982,937 6,344,304 391,672 110,935,569 Less Accumulated Depreciation for: Line Rights Plant in Service Machinery and Equipment Total Accumulated Depreciation Total Capital Assets being Depreciated, Net 626,027 27,355,398 2,803,906 24,734 1,575,524 276,749 30,785,331 1,877,007 74,197,606 4,467,297 318,609 650,761 28,930,922 2,762,046 318,609 32,343,729 73,063 78,591,840 Governmental Activities Capital Assets, Net $ 78,642,426 $ 5,063,072 $ 138,258 $ 83,567,240 Page 155 of 508 67 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 6 — CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the City as follows: Business -Type Activities: Sanitary Sewer $ 874,611 Storm Drainage 885,285 Refuse 117,111 Total Depreciation Expense- Governmental Activities 1,877,007 Component unit capital asset activity for the year ended December 31, 2019 was as follows: Component Unit Capital Assets not being Depreciated: Land and Land Rights Construction in Progress Total Capital Assets not being Depreciated Beginning Ending Balance Increases Decreases Balance $ 5,097,532 $ 469,421 $ $ 5,566,953 1,392,864 5,788,515 5,247,765 1,933,614 6,490,396 6,257,936 5,247,765 7,500,567 Capital Assets being Depreciated: Distribution 116,816,154 8,471,575 162,043 125,125,686 General 15,731,506 571,110 300,774 16,001,842 Total Capital Assets being Depreciated 132,547,660 9,042,685 462,817 141,127,528 Less Accumulated Depreciation Total Capital Assets being Depreciated, Net 46,019,480 3,910,363 86,528,180 5,132,322 412,022 49,517,821 50,795 91,609,707 Governmental Activities Capital Assets, Net $ 93,018,576 $ 11,390,258 $ 5,298,560 $ 99,110,274 Depreciation expense was charged to functions/programs of the City as follows: Component Units: Electric $ 2,326,070 Water 1,584,293 Total Depreciation Expense- Governmental Activities 3,910,363 Page 156 of 508 68 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 7 — LEASES A. Operating Leases The government leases office equipment under noncancelable operating leases. Total costs for such leases were $40,740 for the year ended December 31, 2019. The future minimum lease payments for these leases are as follows: Year Ending Dec. 31 Amount 2020 $ 40,740 2021 10,185 Total $ 50,925 B. Capital Leases The government has entered into a lease agreement as lessee for financing the community center weight equipment with a down payment of $1,845. This lease agreement qualifies as a capital lease for accounting purposes and, therefore have been recorded at the present value of its future minimum lease payment as of the inception date. The asset acquired through a capital lease is as follows: Asset: Machinery and Equipment Less: Accumulated Depreciation Total $ 79,100 (15,811) $ 63,289 The future minimum lease obligation and the net present value of the minimum lease payments as of December 31, 2019 were as follows: Year Ending Dec. 31 Governmental Activities 2020 $ 22,140 2021 5,535 Total Minimum Lease Payments 27,675 Less: Amount Representing Interest (1,059) Present Value of Minimum Lease Payments $ 26,616 NOTE 8 — LONG-TERM DEBT A. General Obligation Bonds The City issues general obligation (G.O.) bonds to provide for financing tax increment projects, street improvements and construction of government buildings. Debt service is covered respectively by tax increments and special assessments against benefited properties with any shortfalls being paid from general taxes. 69 Page 157 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 8 — LONG-TERM DEBT (CONTINUED) A. General Obligation Bonds (Continued) G.O. bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as serial bonds with equal debt service payments each year. G.O. bonds currently outstanding are shown on the following page. B. Revenue Bonds The Commission issues Revenue Bonds for electric and water activity. Debt service is covered through the revenue producing activities of these funds. C. Components of Long -Term Liabilities Issue Interest Original Final Principal Due Within Date Rates Issue Maturity Outstanding One Year Governmental Activities: G.O. Bonds: G.O. Improvement Bonds: 2010A 08/01/10 0.50%-2.90% 1,555,000 02/01/21 $ 235,000 $ 145,000 G.O. Improvement Refunding Bonds 2012A 06/14/12 1.50%-2.125% 4,865,000 02/01/25 2,840,000 455,000 G.O. Tax Abatement Bonds2016A 01/21/16 3.00%-5.00% 29,500,000 02/01/36 27,365,000 1,150,000 G.O. Tax Increment Bonds 2019A 10/17/19 2.25%-5.00% 4,220,000 02/01/36 4,220,000 - Total G.O. Bonds 34.660.000 1,750,000 Unamortized Premiums 1,801,324 - Capital Lease 26,616 21,135 Compensated Absences 2,483,118 1,117,403 Total Governmental Activities $ 38,971,058 $ 2,888,538 Business -Type Activities Compensated Absences $ 49,140 $ 22,113 Long-term bonded indebtedness listed above were issued to finance acquisition and construction of capital facilities or to refinance (refund) previous bond issues. For the most part, the General Fund and the Employee Benefits Internal Service Fund are typically used to liquidate governmental compensated absences payable. 70 Page 158 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 8 — LONG-TERM DEBT (CONTINUED) D. Changes in Long -Term Liabilities Long-term liability information for the year ended December 31, 2019 was as follows. Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Bonds Payable $ 32,350,000 $ 4,220,000 $ 1,910,000 $ 34,660,000 $ 1,750,000 UnamortizedPremiums 1,912,746 - 111,422 1,801,324 - Capital Lease 46,542 - 19,926 26,616 21,135 Compensated Absences 2,388,179 1,601,644 1,506,705 2,483,118 1,117,403 Total Governmental Activities Business -Type Activities Compensated Absences $ 36,697,467 $ 5,821,644 $ 3,548,053 $ 38,971.058 $ 2,888,538 $ 68,077 $ 39,710 $ 58,647 $ 49,140 $ 22,113 E. Governmental Activity G.O. Bonds Debt service to maturity for outstanding G.O. bonds is as follows: Year Ending December 31, Principal Governmental Bonds Interest Total 2020 $ 1,750,000 $ 1,119,509 $ 2,869,509 2021 1,760,000 1,076,623 2,836,623 2022 1,955,000 998,869 2,953,869 2023 2,030,000 933,593 2,963,593 2024 2,065,000 865,569 2,930,569 2025-2029 9,620,000 3,071,567 12,691,567 2030-2034 10,745,000 1,485,974 12,230,974 2035-2036 4,735,000 141,891 4,876,891 Total $ 34,660,000 $ 9,693,595 $ 44,353,595 NOTE 9 — NON -EXCHANGE FINANCIAL GUARANTEE In conjunction with a Development Agreement dated as of October 1, 1997, between the Scott County Development Agency (Agency), the City of Shakopee, and the Shakopee EDA the Agency issued Bonds to finance the acquisition and construction of a mixed use project within Tax Increment Financing District No. 10. The Project consisted of the construction of 52-units of multifamily rental housing and related parking facilities, an approximately 25,000 square foot retail facility, a public plaza, and public parking facility. 71 Page 159 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 9 — NON -EXCHANGE FINANCIAL GUARANTEE (CONTINUED) The Agency issued its Governmental Development Refunding Bonds (City of Shakopee, Minnesota — General Obligation), Series 2013A (River City Centre Project), on December 26, 2013, in the original aggregate principal amount of $2,330,000 (the "Series 2013A Bonds"). The Series 2013A Bonds refunded the outstanding principal balance of the Series 2006A Bonds on February 1, 2014. The Series 2013A Bonds are secured the net revenues of the housing component of the Project and a pledge of the full faith and credit of the City. The Series 2013A Bonds are currently outstanding in the principal amount of $1,485,000 and mature on February 1, 2027. If housing lease revenues are insufficient to pay the principal of and interest on the Series 2013A Bonds, the City may be called upon to levy ad valorem taxes. The Agency issued its Governmental Tax Increment Development Refunding Bonds (City of Shakopee, Minnesota— General Obligation), Series 2013E (River City Centre Project), on December 26, 2013, in the original aggregate principal amount of $1,220,000 (the "Series 2013E Bonds"). The Series 2013E Bonds refunded the outstanding principal balance of the Series 2006E Bonds on February 1, 2014. The Series 2013E Bonds are secured by (i) the lease revenues generated by the retail component of the Project; (ii) a Tax Increment Pledge Agreement from the EDA to the City, assigned by the City to the Agency and by the Agency to the Trustee; and (iii) a pledge of the full faith and credit of the City pursuant to a guaranty made by the City in favor of the bond holders. The Series 2013E Bonds are currently outstanding in the principal amount of $810,000 and mature February 1, 2023. The City has committed to provide $39,276 in tax increment each year during the life of the Series 2013E Bonds. If retail lease revenues and tax increment are insufficient to pay the principal of and interest on the Series 2013E Bonds, the City may be called upon to levy ad valorem taxes. To date, no funds of the City (except tax increment) have been used to pay principal of or interest on the 2013 Bonds. 72 Page 160 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 10 — CONDUIT DEBT OBLIGATIONS Conduit debt obligations are certain limited obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private -sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31, 2019, the following conduit debt was outstanding: Project Original Date of Amount Balance Issue of Issue Outstanding Scott County CDA Housing Development 04/26/12 $ 5,885,000 $ 4,500,000 2012B Refunding- North Ridge Court Redevelopment Benedictine Health System Obligated Group 12/01/13 9,485,000 5,858,955 Health Care and Housing Facilities Revenue Refunding Note Series 2013A Benedictine Health System Obligated Group 12/01/13 9,575,000 7,336,314 Health Care and Housing Facilities Revenue Refunding Note Series 2013B St. Francis Regional Medical Center 06/18/14 41,865,000 35,165,000 Health Care Facilities Revenue Refunding Bond Series 2014 Benedictine Health System Obligated Group 12/01/18 52,440,000 52,440,000 Senior Housing Revenue Bonds Series 2018 Total NOTE 11— INTERFUND ASSETS/LIABILITIES The composition of interfund balances as of December 31, 2019 is as follows: Receivable Fund $ 105,300,269 Payable Fund Amount Capital Improvement Fund Nonmajor Governmental Funds $ 28,350 Sewer Fund Refuse Fund 69,022 Total $ 97,372 The due from/due to other funds balance represents borrowing to eliminate a cash deficit. This will be repaid as funds are available. 73 Page 161 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 12 — ADVANCE FROM/TO OTHER FUNDS The composition of advance from/to other funds as of December 31, 2019 is as follows: (1) (2) (3) (4) (5) (6) (7) Receivable Fund General Fund Capital Improvement Fund Capital Improvement Fund Sewer Fund Storm Drainage Fund Internal Service Fund General Fund Payable Fund Amount TIF District No. 19 Riverfront $ 1,514,406 TIF District No. 17 Amazon 1,442,985 Nonmajor Governmental Funds 181,001 Refuse Fund 533,517 Internal Service Fund 1,430,000 Economic Development Authority 1,191,394 Nonmajor Governmental Funds 291,006 Total $ 6,584,309 (1) The advance represents a long term interfund loan related to the TIF District No. 19 Riverfront agreement to be repaid over 25 years with Tax Increment Financing at a rate of 3% interest. (2) The advance represents a long term interfund loan agreement for TIF District No. 17 Amazon to be repaid over 25 years with Tax Increment Financing at a rate of 4% interest. (3) The advance represents a long term interfund loan related to the TIF District No. 18 Canterbury agreement to be repaid over 25 years with Tax Increment Financing at a rate of 4% interest. (4) The advance is a long term interfund loan which was used to purchase garbage carts. This will be repaid over 10 years with revenue collected for cart usage at rate of 1% interest. (5) The advance represents two interfund loans. The first is a long term interfund loan which was used to purchase property, this will be repaid over 10 years with proceeds from the sale of land or tax levy at rate of 0% interest. The second represents a long term interfund loan which was used to purchase land which will be resold. This will be repaid once the parcels are sold or developed at rate of 0% interest. (6) The advance is a long term interfund loan which was used as a financing source related to the building of the new City hall building. This will be repaid over 15 years with rent collection at rate of 1.25% interest. (7) The advance related to the TIF District No. 20 Old City Hall agreement. This will be repaid over 25 years with Tax Increment Financing at a rate of 4% interest. 74 Page 162 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 13 — INTERFUND TRANSFERS Transfer In Transfer Out Governmental Funds: General Fund (1) $ 250,000 $ - Economic Development Authority (7) 510,294 - TIF District No. 19 Riverfront (7) - 122,699 Other Governmental Funds (2) (3) (4) (6) (7) 364,995 402,590 Total Governmental Funds 1,125,289 525,289 Proprietary Funds: Sewer (1) - 125,000 Storm Drainage (1) - 125,000 Total Proprietary Funds - 250,000 Internal Service Funds: Buildings (4) (5) (6) Park Asset (5) Total Internal Service Funds 2,084,504 350,000 2,084,504 2,084,504 2,434,504 Total $ 3,209,793 $ 3,209,793 (1) Annual transfer to finance General Fund (2) Transfer to close bond funds as the final payment made during the year (3) Transfer to close project funds with the completion of the project (4) Annual transfer for bond payment (5) Transfer Community Center, Ice Arena and SandVenture accumulated rent from Park Assets to Building Internal Service Fund. (6) Transfer to City Hall Fund for city hall construction repayment (7) Transfer from EDA related to TIF agreements. NOTE 14 — PENSION PLANS The City participates in various pension plans. Total pension expense for the year ended December 31, 2019 was $2,132,912. The components of pension expense are noted in the following plan summaries. Public Employees' Retirement Association A. Plan Description The City participates in the following cost -sharing multiple -employer defined benefit pension plans administered by PERA. PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 ad 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 75 Page 163 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) A. Plan Description (Continued) General Employees Retirement Plan (General Employees Plan (accounted for in the General Employees Fund)) All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan members are covered by Social Security. Public Employees Police and Fire Plan (Police and Fire Plan (accounted for in the Police and Fire Fund)) The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire Plan also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. General Employees Plan Benefits Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent for average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66. 76 Page 164 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) B. Benefits Provided (Continued) General Employees Plan Benefits (Continued) Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be equal to 50 percent of the cost -of -living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. Police and Fire Plan Benefits Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2015, vest on a prorated basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2015, vest on a prorated basis from 50 percent after ten years up to 100 percent after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. 77 Page 165 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) C. Contributions Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. General Employees Fund Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary and the City was required to contribute 7.50 percent of pay for Coordinated Plan members in fiscal year 2019. The City's contributions to the General Employees Fund for the year ended December 31, 2019, was $577,643. The City's contributions were equal to the required contributions as set by state statute. The Commission's contributions to the General Employees Fund for the year ended December 31, 2019, was $333,418. The Commission's contributions were equal to the required contributions as set by state statute. Police and Fire Fund Contributions Police and Fire member's contribution rates increased from 10.80 percent of pay to 11.30 percent and employer rates increased from 16.20 percent to 16.95 percent on January 1, 2019. The City's contributions to the Police and Fire Fund for the year ended December 31, 2019, was $947,168. The City's contributions were equal to the required contributions as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2019 the City reported a liability of $5,871,560 for its proportionate share of the General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million to the fund in 2019. The State of Minnesota is considered a non -employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $182,492. The net pension liability was measured as ofJune 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018 through June 30, 2019 relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019, the City's proportion was 0.1062 percent, which was an increase of 0.0017 percent from its proportion measured as ofJune 30, 2018. City's proportionate share of the net pension liability State of Minnesota's proportionate share of the net pension liability associated with the City Total $ 5,871,560 182,492 $ 6,054,052 78 Page 166 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) For the year ended December 31, 2019, the City recognized pension expense of $842,889 for its proportionate share of General Employees Fund's pension expense. In addition, the City recognized an additional $13,667 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2019, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, related to pensions from the sources as follows. Differences between expected and actual experience Changes in actuarial assumptions Net difference between projected and actual earnings on plan investments Changes in proportion Contributions to GERF subsequent to the measurement date Deferred Outflows of Resources $ 163,118 12,719 282,289 288,996 Deferred Inflows of Resources $ 23,337 462,718 573,306 $ 747,122 $ 1,059,361 Deferred outflows of resources totaling $288,996 related to pensions resulting from City contributions to General Employees Fund subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Expense Year Ending Amount December 31, 2020 2021 2022 2023 $ (119,900) (403,994) (86,803) 9,462 Total $ (601,235) Page 167 of 508 79 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs At December 31, 2019, the City reported a liability of $5,457,145 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018 through June 30, 2019 relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019, the City's proportionate share was 0.5126 percent. For the year ended December 31, 2019, the City recognized pension expense of $916,840 for its proportionate share of Police and Fire Fund's pension expense. The City also recognized $69,201 for the year ended December 31, 2019 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year until the plan is 90 percent funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. At December 31, 2019, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 232,223 $ 899,815 Changes in actuarial assumptions 4,606,469 6,150,926 Net difference between projected and actual earnings on plan investments 1,067,486 Changes in proportion 561,114 14,357 Contributions to PEPFF subsequent to the measurement date 487,235 $ 5,887,041 $ 8,132,584 Deferred outflows of resources totaling $487,235 related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense on the following page. 80 Page 168 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Pension Expense Year Ending Amount December 31, 2020 $ (268,308) 2021 (643,620) 2022 (1,950,328) 2023 44,703 2024 84,775 Total $ (2,732,778) Component Unit's General Employees Fund Pension Costs At December 31, 2019, the Commission reported a liability of $3,532,888 for its proportionate share of the General Employees Fund's net pension liability. The Commission's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million to the fund in 2019. The State of Minnesota is considered a non -employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the Commission totaled $109,829. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Commission's proportion of the net pension liability was based on the Commission's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019, the Commission's proportion share was 0.0639 percent, which was a decrease of 0.0006 percent from its proportion measured as of June 30, 2018. Post -retirement benefit increases were changed from 1.0 percent per year with a provision to increase to 2.5 percent upon attainment of a 90 percent funding ratio to 50 percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more than 1.5 percent, beginning January 1, 2019. For the year ended December 31, 2019, the Commission recognized pension expense of $482,271 for its proportionate share of General Employees Fund's pension expense. In addition, the Commission recognized an additional $8,225 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. 81 Page 169 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) At December 31, 2019, the Commission reported its proportionate share of General Employees Fund's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources are below. Differences between expected and actual experience Changes in actuarial assumptions Net difference between projected and actual earnings on plan investments Changes in proportion Contributions to GERF subsequent to the measurement date Deferred Outflows of Resources $ 98,286 49,879 175,009 Deferred Inflows of Resources 279,540 368,175 24,963 $ 323,174 $ 672,678 $175,009 reported as deferred outflows of resources related to pensions resulting from Commission contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense below. Pension Expense Year Ending Amount December 31, 2020 2021 2022 2023 $ (156,933) (293,532) (79,741) 5,693 Total $ (524,513) E. Actuarial Assumptions The total pension liability in the June 30, 2019, actuarial valuation was determined using the entry age normal actuarial cost method and the following actuarial assumptions: Inflation Active Member Payroll Growth Investment Rate of Return GERF PEPFF 2.50% per year 3.25% after 26 years of service 7.50% 2.50% per year 3.25% after 25 years of service 7.50% Page 170 of 508 82 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) E. Actuarial Assumptions (Continued) Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors and disabilitants were based on RP-2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for GERF and 1.0 percent per year for PEPFF. Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF plan was completed in 2019. The most recent four-year experience study for PEPFF was completed in 2016. Economic assumptions were updated in 2018 based on a review of inflation and investment return assumptions. The following changes in actuarial assumptions occurred in 2019: General Employees Fund Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. Police and Fire Fund Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions • There have been no changes since the prior valuation. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the table below. Asset Class Domestic Stocks International Stocks Bonds (Fixed Income) Alternative Assets (Private Markets) Cash and Equivalents Target Allocation 35.5% 25.0% 20.0% 17.5% 2.0% Long -Term Expected Real Rate of Return 5.10% 5.90% 0.75% 5.90% 0.00% 0 Total- 'o i'71 of 508 83 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) F. Discount Rate The discount rate used to measure the total pension liability in 2018 was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions from Plan members and employers will be made at rates set in Minnesota Statutes. Based on those assumptions, the fiduciary net position of the General Employees Fund and the Police and Fire Plan was projected to be available to make all projected future benefit payments of current Plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following table presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: City's proportionate share of the General Employees Fund net pension liability Commission's proportionate share of the General Employees Fund net pension liability City's proportionate share of the Police and Fire Fund net pension liability 1% Decrease in Discount Rate (6.5%) Discount Rate (7.5%) 1 % Increase in Discount Rate (8.5%) $ 9,652,529 $ 5,871,560 $ 2,749,619 $ 5,807,877 $ 3,532,888 $ 1,654,432 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (6.5%) (7.5%) (8.5%) $ 11,928,305 $ 5,457,145 $ 106 H. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA fmancial report that includes fmancial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. I. Public Employees Defined Contribution Plan (Defined Contribution Plan) Four Council Members of the City are covered the Defined Contribution Plan, a multiple -employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. 84 Page 172 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) I. Public Employees Defined Contribution Plan (Defined Contribution Plan) (Continued) The defined contribution plan consists of individual accounts paying a lump -sum benefit, plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses, therefore, there is no future liability to the employer. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives two percent of employer contributions and twenty-five hundredths of one percent (.0025) of the assets in each member's account annually. Pension expense for the year is equal to contributions made. Total contributions made by the City during fiscal year 2019 were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate $ 2,400 $ 2,400 5% 5% 5% Defined Benefit Pension Plan — Volunteer Fire Fighter's Relief Association A. Plan Description The Shakopee Firefighter's Relief Association is the administrator of a single employer defined benefit pension plan established to provide benefits for members of the Shakopee Fire Department per Minnesota State Statutes. The Association issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Shakopee Fire Relief Association, 485 Gorman Street, Shakopee, Minnesota 55379 or by calling 952-233-9570. 85 Page 173 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Defined Benefit Pension Plan — Volunteer Fire Fighter's Relief Association (Continued) B. Benefits Provided Volunteer firefighters of the City are members of the Shakopee Fire Fighter's Relief Association. Full retirement benefits are payable to members who have reached age 50 and have completed 20 years of service for lump sum service pension. Partial benefits are payable to members who have reached 50 and have completed 5 years of service. Disability benefits and widow and children's survivor benefits are also payable to members or their beneficiaries based upon requirements set forth in the bylaws. These benefit provisions and all other requirements are consistent with enabling state statutes. C. Employees Covered by Benefit Terms At December 31, 2018, the following employees were covered by the benefit terms: Inactive employees entitled to but not yet receiving benefits 20 Active Employees 42 Total D. Contributions 62 Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from State aids are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a ten year period. The City's obligation is the financial requirement for the year less state aids. Any additional payments by the City shall be used to amortize the unfunded liability of the relief association. The Association is comprised of volunteers: therefore, there are no payroll expenditures (i.e. there are no covered payroll percentage calculations). During the year, the City recognized as revenue and as an expenditure an on behalf payment of $267,203 made by the State of Minnesota for the Relief Association. E. Net Pension Liability The City's net pension liability was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial assumptions. The total pension liability in the December 31, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.5 % Salary increase 0 %, average, including inflation Investment rate of return 5.25 %, net of pensions plan investment expense: including inflation 86 Page 174 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Defined Benefit Pension Plan — Volunteer Fire Fighter's Relief Association (Continued) E. Net Pension Liability (Continued) The Association is comprised of volunteers; therefore, there are no salary increases. The value of death benefits is similar to the value of the retirement pension. Because of low retirement ages, the plan assumes no pre -retirement mortality. Post -retirement mortality does not apply as the benefit structure and form of payment do not reflect lifetime benefits. The long-term return on assets has been set based on the plan's target investment allocation along with long-term return expectations by asset class. When there is sufficient historical evidence of market outperformance, historical average returns may be considered. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of the measurement date are summarized in the table below. Asset Class Domestic Equity International Equity Fixed Income Real Estate and Alternatives Cash and Equivalents Target Long -Term Expected Allocation Real Rate of Return 40.0% 15.0% 30.0% 0.0% 15.0% Total 100.0% 4.95% 5.24% 1.99% 4.19% 58.00% Discount rate. The discount rate used to measure the total pension liability was 5.25%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected asset return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate. The equivalent single rate is the discount rate. 87 Page 175 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Defined Benefit Pension Plan — Volunteer Fire Fighter's Relief Association (Continued) F. Changes in the Net Pension Liability (Asset) Balances at January 1, 2019 Changes for the year Service Cost Interest Difference Between Expected and Actual Experience Change of Benefit Terms Changes of Assumptions Contributions- State and Local Net Investment Income Employee Contributions Administrative Expense Net Changes Increase (Decrease) Total Pension Liability (a) $ 4,391,511 143,848 208,821 (44,100) 104,791 83,689 (1,807,369) Plan Fiduciary Net Position (b) $ 6,367,761 270,378 (299,370) (1,807,369) (18,455) Net Pension Liability (Asset) (a) - (b) $ (1,976,250) 143,848 208,821 (44,100) 104,791 83,689 (270,378) 299,370 18,455 (1,310,320) (1,854,816) 544,496 Balances at December 31, 2019 $ 3,081,191 $ 4,512,945 $ (1,431,754) Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability (asset) of the City, calculated using the discount rate disclosed on the proceeding page, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Discount Rate (4.25%) 1% Increase in Discount Rate Discount Rate (5.25%) (6.25%) City's proportionate share of the Relief net pension asset $ (1,283,515) $ (1,431,754) $ (1,572,399) Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued relief association financial report. 88 Page 176 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 — PENSION PLANS (CONTINUED) Defined Benefit Pension Plan — Volunteer Fire Fighter's Relief Association (Continued) G. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2018, the City recognized pension expense of $20,712. At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Contributions paid subsequent to the measurement date Difference between expected and actual liability Changes in assumptions Net difference between projected and actual earnings on pension plan investments Deferred Deferred Outflows of Inflows of Resources Resources $ 267,203 $ 96,318 274,469 89,723 $ 637,990 $ 89,723 $267,203 reported as deferred outflows of resources related to pensions resulting from State contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Expense Year Ending Amount December 31, 2020 $ 122,809 2021 6,505 2022 22,780 2023 118,167 2024 (1,052) Thereafter 11,855 Total $ 281,064 H. Payable to the Pension Plan At December 31, 2019, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended December 31, 2019. 89 Page 177 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 15 — POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS A. Plan Description The City provides a single -employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage administered by Medica. It is the City's policy to periodically review its medical coverage and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. At December 31, 2019, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 9 Active employees waiving coverage 14 Active plan members 134 Total plan members 157 B. Funding Policy Retirees and their spouses contribute to the health care plan at the same rate as City employees. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with Medica. The required contributions are based on projected pay-as- you-go financing requirements. For the year ended December 31, 2019, the City's average contribution rate was 18.48 percent of covered -employee payroll. For the year 2019, the City contributed $37,473 to the Plan. C. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. The City's total OPEB liability of $2,305,113 was measured as of December 31, 2018, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of December 31, 2017. 90 Page 178 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 15 — POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) C. Actuarial Methods and Assumptions (Continued) The total OPEB liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 3.71% Expected Long -Term Investment Return N/A 20-Year Municipal Bond Yield 3.71% Inflation Rate 2.75% Medical Trend Rate 6.40% in 2019 gradually decreasing over several decades to an ultimate rate of 4.00% in 2075 or later years The Actuarial Standards Board (ASB) provides coordinated guidance for measuring pension and retiree group benefit obligations through a series of Actuarial Standards of Practice (ASOPs). ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations, requires that the actuary disclose the rationale used in selecting each non -prescribed economic assumption and any changes to non - prescribed economic assumptions. All non -prescribed economic assumptions are summarized below. The discount rate used to measure the total OPEB liability was 3.71 percent. Per GASB guidance, the single rate that produces the same present value of expected benefit payments as (1) the expected long- term rate of return on plan assets during the period when projected assets are sufficient to pay future retiree benefits, and (2) the 20-year municipal bond rate after assets are projected to be exhausted. The Fidelity 20-Year Municipal GO AA Index is used because it meets the GASB requirements and is based on a large amount of municipal security data.") Mortality rates were based on the current actuarial assumptions for the pension plan in which the current or future retiree participates. The inflation rate used to measure the OPEB liability was 2.75 percent. Based on analysis of historical CPI-U and 30-year TIPS data, the Federal Open Market Committee target inflation rate, and the 2018 Survey of Capital Market Assumptions produced by Horizon Actuarial Services. Annual salary increases were based on the most recently disclosed assumption for the pension plan in which the employee participates. 91 Page 179 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 15 — POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) D. Changes in the Total OPEB Liability Total OPEB Liability (a) Balances at December 31, 2018 $ 2,218,083 Changes for the Year: Service cost 164,694 Interest 77,453 Changes in assumptions or other inputs (69,528) Benefit payments (85,589) Net Changes 87,030 Balances at December 31, 2019 $ 2,305,113 Since the prior measurement date, the following benefit terms changed: • The discount rate was changed from 3.31% as of 12/31/2017 to 3.71% as of 12/31/2018 based on updated 20-year municipal bond rates as of each measurement date. Since the prior measurement date, the following assumptions changed: • The discount rate was changed from 3.31% to 3.71% based on updated measurement dates and GASB 75 requirements. E. Sensitivity of the Total OPEB Liability The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (2.71 percent) or 1- percentage-point higher (4.71 percent) than the current discount rate: 1 % Decrease Current 1 % Increase (2.71%) (3.71%) (4.71%) $ 2,481,019 $ 2,305,113 $ 2,137,202 92 Page 180 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 15 — POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) E. Sensitivity of the Total OPEB Liability (Continued) The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a Healthcare Cost Trend Rates that is 1-percentage point lower (5.40 percent decreasing to 3.00 percent) or 1-percentage-point higher (7.40 percent decreasing to 5.00 percent) than the current discount rate: 1% Decrease (5.4% Decreasing to 3%) Healthcare Cost Trend Rates (6.4% Decreasing to 4%) 1% Increase (7.4% Decreasing to 5%) $ 2,021,622 $ 2,305,113 $ 2,641,638 F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2019, the City recognized OPEB expense of $88,909. At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Changes in actuarial assumptions $ 64,480 Contributions to OPEB subsequent to the measurement date 94,500 $ 158,980 Deferred Inflows of Resources $ 62,248 $ 62,248 Deferred outflows of resources totaling $94,500 related to pensions resulting from the City's contributions to OPEB subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Pension Expense Year Ending Amount December 31, 2020 2021 2022 2023 2024 Thereafter Total $ 1,260 1,260 1,260 1,260 1,260 (4,068) $ 2,232 Page 181 of 508 93 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 16 — SEGMENT INFORMATION The City maintains three enterprise funds that account for the sewer, storm drainage and refuse utilities. The City considers each of its enterprise funds to be a segment. Since the required segment information is already included in the City's proprietary funds' Balance Sheet and Statement of Revenues. Expenses and Changes in Fund Net Position balances, this information has not been repeated in the Notes to the Financial Statements. NOTE 17 — FUND BALANCE DETAIL Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective funds. Economic T1F District TIF District Other General Development Capital No. 17 No. 19 Governmental Fund Authority Improvements Amazon Riverfront Funds Total Nonspendable: Prepaid Items $ 155.116 $ $ $ $ $ 1,401 $ 156,517 Restricted: Forfeitures 172,971 172,971 SCDP Grant 18,368 18,368 Debt Service 3,147,055 3,147,055 Capital Improvements 3,902,170 3,902,170 Total Restricted 7,240,564 7,240,564 Committed: Building Permits Assigned: Telecommunications Capital Improvements Total Assigned Unassigned 1,588,000 1,588,000 5,771,223 5,771.223 109,472 720,445 829,917 109,472 6,491,668 6,601,140 14,136,227 (255,097) (1,426,745) (428,906) (40,923) 11,984,556 Total Fund Balance $ 15,879,343 $ (255,097) $ 5,771,223 $ (1,426,745) $ (428,906) $ 8,030.959 $ 27,570,777 Page 182 of 508 94 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 18 — COMMITTMENTS The City has the following construction commitments at December 31, 2019. Project Work 12/31/2019 Authorization Completed Commitment Reverend Pond Sculpture 115,000 103,500 11,500 2018 Sanitary Sewer Lateral Pipe Rehab 556,828 459,690 97,138 12thAvenue Reconstruction 2,869,489 2,698,175 171,314 2019 Lateral Pipe Rehab and CIPP 607,338 557,246 50,092 Public Works Card Reader 5,032 1,510 3,522 2 Plow Trucks 266,364 - 266,364 NOTE 19 — RISK MANAGEMENT The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) with other cities in the state which is a public entity risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through member premiums and reinsures through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles ranges from $10,000 to $50,000 and is considered immaterial to the financial statements. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three years. Through the pool, the City is subject to reassessment but due to reserves and reinsurance contracts, the likelihood is very low. The policy limits through the pool included $2,000,000 aggregate for liability, $2,000,000 for automobile coverage, $1,000,000 faithful performance employee bonding and $2,000,000 for universal umbrella coverage. Property coverage is at approximately $103,000,000. NOTE 20 — TAX ABATEMENT AGREEMENT The City has entered into three Tax Abatement Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into these agreements for the purpose of economic development. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax abatement). 95 Page 183 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 20 — TAX ABATEMENT AGREEMENT (CONTINUED) The tax abatement agreements are as follows: • Datacard Abatement was established in 2014. Entrust Datacard is the world's largest issuer of protected, personalized ID cards, credentials, and credit cards. The City of Shakopee awarded an eleven -year economic development property tax abatement, ending in 2024, which required the creation of 100 new full time jobs in Shakopee. The first year of disbursement occurred in 2014. The total City abatement awarded was $334,869 with an annual maximum award of $36,195. The total county abatement awarded was $324,324 with an annual maximum award of $35,055. During the year ended December 31, 2019, the total disbursed was $65,184 with $33,114 from Scott County and $32,070 from the City. • Emerson Abatement was established in 2013. Rosemount Emerson Process Management is a leading supplier of process management products and solutions, including control valves, regulators, transmitters, analyzers, and automation systems. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2023, which required the creation of 154 new full-time jobs in Shakopee. The first year of disbursement occurred in 2016. The total City abatement awarded was $590,496. The total county abatement awarded was $570,608 with an annual maximum award of $64,401. During the year ended December 31, 2019, the total disbursed was $138,324 with $64,401 from Scott County and $73,922 from the City. • Shutterfly Abatement was established in 2014. Shutterfly, Inc. is an Internet -based social expression and personal publishing service that was founded in December of 1999. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2024, which required the creation of 258 new jobs in Shakopee. The first year of disbursement occurred in 2017. The total City abatement awarded was $758,771 with an annual maximum award of $89,431. The total county abatement awarded was $734,898 with an annual maximum award of $86,615. During the year ended December 31, 2019, the total disbursed was $120,401 with $59,236 from Scott County and $61,165 from the City. • KEB Abatement was established in 2019. KEB America, LLC is a leading manufacturer or automation products. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2029, which required the creation of 98 full-time equivalent new jobs in Shakopee. The total City abatement awarded was $289,263. The first year of disbursement will occur in 2021. NOTE 21— TAX INCREMENT FINANCING The City has entered into nine Tax Increment Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into these agreements for the purpose of economic development. 96 Page 184 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 21— TAX INCREMENT FINANCING (CONTINUED) Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax increment). A "pay-as-you-go" is established for this amount, on which the City makes payments for a fixed period of time with available tax increment revenue after deducting for certain administrative costs. During the year ended December 31, 2019, the City generated $2,008,657 in tax increment revenue and made $1,969,470 in payments to developers. TIF District No. 10 was established in 1996 for the purpose of establishing multifamily rental housing. River City Centre is 52-units of multifamily rental housing owned and operated by the Scott County Community Development Authority (CDA). Under this agreement, up to $2,115,000 in development costs would be reimbursed over twenty-five years with the fmal year being 2024. During the year ended December 31, 2019, the City generated $55,513 of tax increment revenue and made payments of $49,962. The remaining unpaid pay-as-you-go balance at year end was $3,008,970. TIF District No. 14 was established in 2015 as an economic development TIF. J&J Minneapolis/SanMar is a wholesale apparel and accessories distribution company. This TIF required the creation of 150 new full time jobs in Shakopee. The first year of disbursement occurred in 2016 and the fmal year will be in 2024. Under this agreement, up to $2,000,000 of development costs will be reimbursed through tax increment over a 9 year period. During the year ended December 31, 2019, the City generated $315,191 of tax increment revenue and made payments on the pay-as-you-go note of $283,672. The remaining unpaid pay -as -you go balance at year end was $1,084,110. TIF District No. 15 was established in 2015 for the purpose of establishing a housing unit. Trident/All Saints Senior Living is an 80-unit senior community providing assisted living, memory care, and care suites with 20% of the units being affordable to persons of low and moderate income. Under the agreement, up to $1,000,000 of development costs will be reimbursed through tax increment over a 25 year period. During the year ended December 31, 2019, the City generated $172,703 of tax increment revenue and made payments of $195,395. The remaining unpaid pay -as -you go balance at year end was $574,836. TIF District No.16 was established in 2015 for the construction of a facility. Rahr Malting Company produces and distributes malt and industry related brewing supplies. Under the agreement, up to $1,883,086 of development costs will be reimbursed through tax increment over a 9 year period. During the year ended December 31, 2019, the City generated $553,391 of tax increment revenue and made payments of $536,789. The remaining unpaid pay -as -you go balance at year end was $1,006,996. 97 Page 185 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 21— TAX INCREMENT FINANCING (CONTINUED) TIF District No.17 was established in 2016 to upgrade the roads surrounding the expansion of Amazon.com. The total amount authorized was $5,698,326 with 40.7% ($2,319,076) of these funds going to the City of Shakopee and 59.3% ($3,379,250) going to Scott County. Under the agreement, up to $5,698,326 of development costs will be reimbursed through tax increment over a 9 year period to the City and County. During the year ended December 31, 2019, the City generated $911,859 of tax increment revenue and made payments of $535,866 to the County and $367,786 to the City. The remaining unpaid pay -as -you go balance at year end was $2,102,783 for the County and $1,442,985 for the City. TIF District No. 18 was established in 2018 to aid in redeveloping the horse racetrack area known as Canterbury Commons with new and improved public infrastructure. This is a multi -year, three phase project that will entail eliminating blighted properties and in turn provide a mix of housing and other commercial and industrial redevelopment. Under the agreement, $33,066,500 of public infrastructure costs will be reimbursed through tax increment to a combination of the City of Shakopee and the Developer over the duration of 25 years. The district was created in 2018 and certified to the State of Minnesota in 2019. As of December 31, 2019, no tax increment had been generated. It is anticipated that the first tax increment will be generated in 2020. TIF District No. 19 was established in 2018 to aid in redeveloping property located in the downtown area along the riverfront. The developer, Gaughan Shakopee LLC has agreed to purchase three properties from the City at an agreed upon amount of $725,000 and develop approximately 125 market -rate luxury apartment units including underground parking and 3,500 sq. feet of commercial space. Under the agreement, the developer will reimburse the city's $725,000 land purchase with 20.5% of future tax increment. The remaining increment will be directed towards reimbursement of developer costs up to a principal amount of $2,811,700 over the course of 25 years. The district was created in 2018 and was certified to the State of Minnesota in 2019. As of December 31, 2019, no tax increment had been generated. It is anticipated that the first tax increment will be generated in 2022. TIF District No. 20 was established in 2018 to aid in redeveloping the old downtown city hall location. The developer, Enclave Development, LLC is developing approximately 80 market -rate apartment units, including underground parking, and approximately 1,500 square feet of commercial space including all site improvements. Under the agreement, a redevelopment grant in the amount of $2,132,400 will be issued to the developer. The city will collect 100% of the future increment over the course of the next 25 years to repay $300,000 in demolition costs and the $2.1 million redevelopment grant. The district was created in 2018 and was certified to the State of Minnesota in 2019. As of December 31, 2019, no tax increment had been generated. It is anticipated that the first tax increment will be generated in 2021. 98 Page 186 of 508 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 21— TAX INCREMENT FINANCING (CONTINUED) TIF District No. 21 was established in 2018 as a soils condition district to facilitate development of certain property by removing or remediating hazardous substances, pollution or contaminants within the city. Under the agreement, the developer, Shakopee Crossings Limited Partnership, will be reimbursed up to $1,387,388 of soil remediation costs and will be reimbursed through tax increment collections over the next 20 years. The district was created in 2018 and was certified to the State of Minnesota in 2019. As of December 31, 2019, no tax increment had been generated. It is anticipated that the first tax increment will be generated in 2021. NOTE 22 — SUBSEQUENT EVENT In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of many businesses. The City of Shakopee, itself temporarily closed facilities including City Hall, Community Center and Ice Arena. While the disruption is currently expected to be temporary, there is uncertainty around the fmancial impact it may have. NOTE 23 — CHANGE IN ACCOUNTING PRINCIPLE During fiscal year 2019, the City implemented a new accounting pronouncement issued by the Government Accounting Standards Board (GASB), Statement No. 84, Fiduciary Activities. This standard required a retroactive implementation which resulted in the restatement of beginning balances in the December 31, 2019 financial statements. Changes related to this standard are reflected in the fmancial statements and related disclosures. 99 Page 187 of 508 (THIS PAGE LEFT BLANK INTENTIONALLY) 100 Page 188 of 508 REQUIRED SUPPLEMENTARY INFORMATION 101 Page 189 of 508 CITY OF SHAKOPEE SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND City's Proportionate City's Plan State's Share of the Net Proportionate Fiduciary Proportionate Pension Liability and Share of the Net Position City's City's Share of the the State's Net Pension as a Proportion Proportionate Net Pension Proportionate Share Liability as a Percentage of the Net Share of the Liability of the Net Pension City's Pcrccntagc of of the Total For the Fiscal Pension Net Pension Associated Liability Associated Covered Covered Pension Year Ended Liability Liability with the City with the City Payroll Payroll Liability June 30, 2019 0.1062% S 5,871,560 S 182,492 S 6,054,052 S 7,502,811 80.69% 80.20% June 30, 2018 0.1045% 5,797,232 190,111 5,987,343 7,014,843 85.35% 79.50% June 30, 2017 0.1026% 6,549,916 82,350 6,632,266 6,194,557 107.07% 75.90% June 30, 2016 0.0933% 7,575,497 98,919 7,674,416 6,246,667 122.86% 68.91% June 30, 2015 0.0930% 4,819,743 4,819,743 5,275,939 91.35% 78.19 * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after. 102 Page 190 of 508 CITY OF SHAKOPEE SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT FUND City's Proportionate City's Plan State's Share of the Net Proportionate Fiduciary Proportionate Pension Liability and Share of the Net Position City's City's Share of the the State's Net Pension as a Proportion Proportionate Net Pension Proportionate Share Liability as a Percentage of the Net Share of the Liability of the Net Pension City's Percentage of of the Total For the Fiscal Pension Net Pension Associated Liability Associated Covered Covered Pension Year Ended Liability Liability with the City with the City Payroll Payroll Liability June 30, 2019 0.5126% S 5,457,145 S S 5,457,145 S 5,406,198 100.94% 89.30% June 30, 2016 0.4810% 5,126,965 5,126,965 5,069,010 101.14% 88.60% June 30, 2017 0.4810% 6,494,072 6,494,072 4,642,761 139.88% 85.40% June 30, 2016 0.4680% 18,781,654 18,781,654 4,827,360 369.07% 63.SS% June 30, 2015 0.4720% 5,363,024 5,363,024 4,169,456 128.63% 86.61% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after. 103 Page 191 of 508 CITY OF SHAKOPEE SCHEDULE OF COMPONENT UNIT'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND Component Unit's State's Share of the Net Unit's Plan Proportionate Pension Liability and Proportionate Fiduciary Component Component Share of the the State's Share of the Net Position Unit's Unit's Net Pension Proportionate Share Net Pension as a Proportion Proportionate Liability of the Net Pension Component Liability as a Percentage of the Net Share of the Associated with Liability Associated Unit's Percentage of of the Total For the Fiscal Pension Net Pension the Component with the Component Covered Covered Pension Year Ended Liability Liability Unit Unit Payroll Payroll Liability June 30, 2019 0.0639% S 3,532,888 S 109,829 S 3,642,717 S 4,522,507 80.55% 80.20% June 30, 2018 0.0645% 3,578,196 117,344 3,695,540 4,333,280 85.28% 79.50% June 30, 2017 0.0644% 4,111,253 51,656 4,162,909 4,145,653 100.42% 75.90% June 30,2016 0.0621% 5,042,212 65,842 5,108,054 3,854,427 132.52% 68.91% June 30, 2015 0.0608% 3,150,972 3,150,972 3,516,627 89.60% 78.19% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after. 104 Page 192 of 508 CITY OF SHAKOPEE SCHEDULE OF CITY CONTRIBUTIONS LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND Contributions in Relation to Statutorily the Statutorily Contribution Contributions as For the Fiscal Required Required Deficiency City's Covered a percentage of Year Ended Contribution Contributions (Excess) Payroll Covered Payroll December 31, 2019 $ 577,643 $ 577,643 $ $ 7,701,906 7.5% December 31, 2018 544,381 544,381 7,258,413 7.5% December 31, 2017 499,333 499,333 6,657,773 7.5% December 31, 2016 459,555 459,555 6,127,400 7.5% December 31, 2015 416,647 416,647 5,555,293 7.5% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after. 105 Page 193 of 508 CITY OF SHAKOPEE SCHEDULE OF CITY CONTRIBUTIONS LAST 10 YEARS PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT FUND Contributions in Relation to Statutorily the Statutorily Contribution Contributions as For the Fiscal Required Required Deficiency City's Covered a percentage of Year Ended Contribution Contributions (Excess) Payroll Covered Payroll December 31, 2019 $ 947,168 $ 947,168 $ $ 5,588,012 16.95% December 31, 2018 851,625 851,625 5,256,945 16.20% December 31, 2017 788,803 788,803 4,869,154 16.20% December 31, 2016 761,951 761,951 4,703,401 16.20% December 31, 2015 720,513 720,513 4,447,611 16.20% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after. 106 Page 194 of 508 CITY OF SHAKOPEE SCHEDULE OF COMPONENT UNIT CONTRIBUTIONS LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND Contributions in Relation to Statutorily the Statutorily Contribution Contributions as For the Fiscal Required Required Deficiency City's Covered a percentage of Year Ended Contribution Contributions (Excess) Payroll Covered Payroll December 31, 2019 $ 350,018 $ 350,018 $ $ 4,666,907 7.5% December 31, 2018 339,188 339,188 4,522,507 7.5% December 31, 2017 315,791 315,791 4,210,547 7.5% December 31, 2016 299,473 299,473 3,992,973 7.5% December 31, 2015 273,227 273,227 3,643,027 7.5% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after. 107 Page 195 of 508 CITY OF SHAKOPEE SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - FIRE RELIEF ASSOCIATION 2014 2015 2016 2017 2018 Total Pension Liability (TPL) Service cost S 135,715 S 139,447 S 151,879 S 136,432 S 143,848 Interest 224,377 228,231 247,134 244,054 208,821 Differenced between expected and actual experience - (75,511) (44,100) Changes of assumptions 31,553 83,689 Changes of benefit terms 52,084 104,791 Benefit payments, including refunds of member contributions (599,181) (130,106) (298,088) (1,807,369) Net change in total pension liability (239,089) 367,678 224,949 134,482 (1,310,320) Beginning of year S 3,903,491 S 3,664,402 S 4,032,080 S 4,257,029 S 4,391,511 End of year S 3,664,402 S 4,032,080 S 4,257,029 S 4,391,511 S 3,081,191 Plan Fiduciary Net Pension (FNP) Contributions - employer S 341,036 S 244,626 S 247,910 S 252,336 S 270,378 Contributions - donations and other local 95 Net investment income 315,532 (268,069) 385,789 789,234 (299,370) Benefit payments, including refunds of member contributions (599,181) - (130,106) (298,088) (1,807,369) Administrative expense (10,897) (9,761) (16,676) (11,919) (18,455) Net change in plan fiduciary net position 46,490 (33,204) 486,917 731,658 (1,854,816) Beginning of year 5,135,900 5,182,390 5,149,186 5,636,103 6,367,761 End ofyear S 5,182,390 S 5.149,186 S 5,636,103 S 6,367,761 S 4,512,945 Net Pension Liability (NPL) S 1,517,988 S (1,117,106) S 1,379,074 S 1,976,250 S 1,431,754 Plan fiduciary net position as a percentage of the total pension liability 141.4% 127.7% 132.4% 145.0% 146.5% Covered employee payroll n/a n/a n/a n/a n/a Net pension liability as a percentage of covered payroll n/a n/a n/a n/a n/a 108 Page 196 of 508 CITY OF SHAKOPEE SCHEDULE OF CITY CONTRIBUTIONS AND NON -EMPLOYER CONTRIBUTING ENTITIES - FIRE RELIEF ASSOCIATION Actuarial Actual Contribution For the Fiscal Determined Contributions Deficiency Year Ended Contribution Paid (Excess) 2% State Aid Contributions as a Percentage of Covered Covered Employee Employee Payroll Payroll December 31, 2018 S - S S - S 259,378 n/a n/a December 31, 2017 250,336 n/a n/a December 31, 2016 246,910 n/a n/a December 31, 2015 - - 244,626 n/a n/a December 31, 2014 113,868 113,868 227,168 n/a n/a The Association implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended December 31, 2015. The schedules within the Required Supplementary Information section required a ten-year presentation, but does not require retroactive reporting. Information prior to 2014 is not available. Additional years will be reported as they become available. 109 Page 197 of 508 CITY OF SHAKOPEE SCHEDULE OF CHANGES IN THE CITY'S OPEB LIABILITY AND RELATED RATIOS 2017 2018 Total OPEB Liability Service cost $ 143,652 $ 164,694 Interest 79,747 77,453 Changes of assumptions 81,560 (69,528) Benefit payments (72,637) (85,589) Net change in total OPEB liability 232,322 87,030 Total OPEB liability- beginning 1,985,761 2,218,083 Total OPEB liability- ending Covered Employee Payroll City's Total OPEB Liability as a Percentage of Covered Employee Payroll Assumption changes: In 2019, the following benefit changes occurred: The discount rate was changed from 3.31% as of 12/31/2017 to 3.71% as of 12/31/2018 based on updated 20-year municipal bond rates as of each measurement date. In 2018, the following benefit changes occurred: The discount rate was changed from 3.81% as of 12/31/2016 to 3.31% as of 12/31/2017 based on updated 20-year municipal bond rates as of each measurement date. Since the most recent GASB 45 valuation, the following changes have been made: The discount rate was changed from 3.50% to 3.81% based on updated measurement dates and GASB 75 requirements. Healthcare trend rates were reset to reflect updated const increase expectations, including an adjustment to reflect the impact of the Affodarble Care Act's Excise Tas on high -cost health insurance plans. Medical per capita claims costs were updated to reflect recent experience and new plan offerings. Withdrawal, retirement, mortality and salary increase rates were updated from the rates used in the 7/1/2015 PERA General and Police & Fire Employees Retirement Plan to the rates used in the 7/1/2018 valuation. The percent of future regular retirees assumed to elect coverage at retirement changed from 50% to 30% to reflect recent plan experience. The inflation assumption was changed from 2.75% to 2.50% based on an updated historical analysis of inflation rates and forward looking market expectations. $ 2,218,083 $ 2,305,113 $ 12,533,653 $ 12,472,516 17.70% 18.48% Page 198 of 508 110 CITY OF SHAKOPEE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION GENERAL EMPLOYEES FUND 2019 Changes Changes in Plan Provisions • The employer supplemental contribution was changed prospectively, decreasing from $31 0 million to $21.0 million per year. The state's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. Changes in actuarial assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. 2018 Changes Changes in actuarial assumptions • The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 Changes Changes in actuarial assumptions • The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non -vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non - vested deferred member liability. The assumed post -retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 Changes Changes in Actuarial Assumptions • The assumed post -retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. • Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, the inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. 2015 Changes Changes in Plan Provisions • On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions Changes in Actuarial Assumptions • The assumed post -retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter. 111 Page 199 of 508 CITY OF SHAKOPEE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION POLICE AND FIRE FUND 2019 Changes Changes in actuarial assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. 2018 Changes Changes in actuarial assumptions • The morality projection scale was changed from MP-2016 to MP-2017. • As set by statute, the assumed post -retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. 2017 Changes Changes in actuarial assumptions • Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. • Assumed rates of retirement were changed, resulting in fewer retirements. • The Combined Service Annuity (CSA) load was 30 percent for vested and non -vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non - vested members. • The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. • Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations • Assumed percentage of married female members was decreased from 65 percent to 60 percent. • Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. • The assumed percentage of female members electing joint and survivor annuities was increased. • The assumed post -retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. • The single discount rate was changed from 5.6 percent to 7.5 percent. 2016 Changes Changes in Actuarial Assumptions • The assumed post -retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. 112 Page 200 of 508 CITY OF SHAKOPEE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 2015 Changes Changes in Plan Provisions • The post -retirement benefit increase to be paid after attainment of the 90% funding threshold was changed, from inflation up to 2.5%, to a fixed rate of 2.5%. Changes in Actuarial Assumptions • The assumed post -retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter. 113 Page 201 of 508 (THIS PAGE LEFT BLANK INTENTIONALLY) 114 Page 202 of 508 SUPPLEMENTARY INFORMATION 115 Page 203 of 508 CITY OF SHAKOPEE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 Variance with Budget Actual Final Budget - Original Final Amounts Over (Under) REVENUES Taxes General Property $ 14,482,500 $ 14,480,800 $ 14,261,908 $ (218,892) Fiscal Disparities 2,239,900 2,239,900 2,103,197 (136,703) Franchise 447,500 403,500 419,204 15,704 Aggregate 5,000 5,000 10,492 5,492 Total Taxes 17,174,900 17,129,200 16,794,801 (334,399) Special Assessments 7,300 7,000 6,484 (516) Licenses and Permits 1,759,700 4,299,300 4,656,994 357,694 Intergovernmental Revenues Federal Grants 20,000 18,000 24,108 6,108 PERA Aid 18,100 18,100 18,170 70 Police Aid 441,300 477,600 477,687 87 Fire Aid 258,000 278,200 267,203 (10,997) State Grants 569,200 698,700 751,042 52,342 Other Grants and Aids 125,000 126,500 35,225 (91,275) Total Intergovernmental Revenues 1,431,600 1,617,100 1,573,435 (43,665) Charges for Services General Government 2,471,900 2,518,000 2,473,570 (44,430) Public Safety 871,900 905,600 963,141 57,541 Public Works 857,700 1,100,300 1,042,163 (58,137) Parks and Recreation 2,194,200 2,328,900 2,605,819 276,919 Total Charges for Services 6,395,700 6,852,800 7,084,693 231,893 Fines and Forfeitures 1,000 7,400 8,138 738 Miscellaneous Revenues Investment Income 174,000 185,000 500,688 315,688 Contributions and Donations 500 2,800 8,919 6,119 Rents 10,300 10,300 10,641 341 Other 13,200 13,100 61,570 48,470 Total Miscellaneous Revenues 198,000 211,200 581,818 370,618 Total Revenues 26,968,200 30,124,000 30,706,363 582,363 EXPENDITURES General Government Current: Mayor and Council $ 193,800 $ 189,000 $ 178,486 $ (10,514) Administration 1,966,500 1,976,600 1,940,655 (35,945) City Clerk 364,200 364,400 356,097 (8,303) Finance 937,400 932,200 881,207 (50,993) Planning 657,200 735,000 736,456 1,456 Government Buildings 595,500 609,500 612,964 3,464 Unallocated 131,300 130,100 25,251 (104,849) Capital Outlay - - 46,000 46,000 Total General Government 4,845,900 4,936,800 4,777,116 (159,684) 116 Page 204 of 508 CITY OF SHAKOPEE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 Variance with Budget Actual Final Budget - Original Final Amounts Over (Under) EXPENDITURES (Continued) Public Safety Current: Police 8,988,800 9,005,900 8,955,933 (49,967) Fire 2,530,100 2,647,800 2,688,639 40,839 Building Inspection 999,500 1,202,100 1,086,561 (115,539) Capital Outlay - 1,000 13,523 12,523 Total Public Safety 12,518,400 12,856,800 12,744,656 (112,144) Public `Yorks Current: Engineering 907,400 1,018,400 915,950 (102,450) Streets 2,269,200 2,320,700 2,373,379 52,679 Shop 464,700 429,300 416,633 (12,667) Park Maintenance 2,150,000 2,207,800 2,118,306 (89,494) Total Public Works 5,791,300 5,976,200 5,824,268 (151,932) Culture and Recreation Current: Recreation 3,929,500 4,032,300 3,885,624 (146,676) Capital Outlay - 16,600 34,179 17,579 Total Parks and Recreation 3,929,500 4,048,900 3,919,803 (129,097) Conservation and Natural Resources Current: Natural Resources Total Expenditures Excess of Revenues Over (Under) 133,100 140,300 27,218,200 27,959,000 (250,000) 2,165,000 131,199 (9,101) 27,397,042 (561,958) 3,309,321 1,144,321 OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset - - 578 578 Transfers In 250,000 250,000 250,000 Total Other Financing Sources (Uses) 250,000 250,000 250,578 578 Net Change in Fund Balances $ - $ 2,415,000 FUND BALANCES Beginning of Year 3,559,899 $ 1,144,899 12,319,444 End of Year $ 15,879,343 117 Page 205 of 508 ASSETS Cash and Investments Cash with a Fiscal Agent Special Assessments Receivable: Deferred Accounts Receivable Interest Receivable Prepaid Items Total Assets CITY OF SHAKOPEE COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2019 Special Revenue Forfeiture Telecommunication SCDP Grant $ 190,675 $ 101,530 $ 18,368 555 1,401 7,647 295 $ 192,631 $ 109,472 $ 18,368 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable $ 14,958 $ $ Contracts Payable Due to Other Funds Due to Other Governments 3,301 Advance from Other Funds Total Liabilities 18,259 Deferred Inflows of Resources Unavailable Revenue - Special Assessments Total Deferred Inflows of Resources Fund Balances Nonspendable 1,401 Restricted for: Special Revenue 172,971 18,368 Debt Service Capital Projects - Assigned 109,472 Unassigned - Total Fund Balances 174,372 109,472 18,368 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 192,631 $ 109,472 $ 18,368 Page 206 of 508 118 Special Revenue Debt Service 2010A GO 2012A GO 2016A GO Tax Improvement Refunding Abatement 2019A Tax Lodging Tax Total Bonds Bonds Bonds Increment Bonds $ - $ 310,573 $ 174,438 $ 1,658,895 $ 1,131,106 $ 21,962 8,012 790,594 29,609 850 507 4,824 3,289 1,401 - 174,596 $ 21,962 $ 342,433 $ 182,957 $ 2,454,313 $ 1,134,395 $ 174,596 $ 21,962 $ 36,920 $ $ 400 $ 200 $ - 3,301 21,962 40,221 400 200 - 1,401 - 191,339 109,472 8,012 790,594 8,012 790,594 174,945 1,663,319 1,134,195 174,596 302,212 174,945 1,663,319 1,134,195 174,596 $ 21,962 $ 342,433 $ 182,957 $ 2,454,313 $ 1,134,395 $ 174,596 Page 207 of 508 119 CITY OF SHAKOPEE COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) December 31, 2019 Debt Service Capital Projects TIF District No. Total Park Reserve 10 ASSETS Cash and Investments $ 2,964,439 $ 3,469,908 $ 1,496 Cash with a Fiscal Agent 174,596 Special Assessments Receivable: Deferred 798,606 Accounts Receivable - Interest Receivable 8,620 10,091 Prepaid Items - Total Assets $ 3,946,261 $ 3,479,999 $ 1,496 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable $ 600 $ 156,724 $ 400 Contracts Payable Due to Other Funds Due to Other Governments 551 Advance from Other Funds Total Liabilities 600 157,275 400 Deferred Inflows of Resources Unavailable Revenue - Special Assessments Total Deferred Inflows of Resources Fund Balances Nonspendable Restricted for: Special Revenue Debt Service Capital Projects Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances 798,606 798,606 3,147,055 3,147,055 3,322,724 1,096 3,322,724 1,096 $ 3,946,261 $ 3,479,999 $ 1,496 Page 208 of 508 120 Capital Projects TIF District TIF District No. No. 18 Road TIF District No. 15 All TIF District Canterbury Expansion 14 J&J / Sanmar Saints/Trident No. 16 Rahr Common Dedication Lions Park $ 144,802 $ 78,951 $ 22,285 $ 1,329 $ 254,962 $ 5,521 833,659 - 503 741 $ 144,802 $ 78,951 $ 22,285 $ 835,491 $ 255,703 $ 5,521 $ $ $ $ 50,061 $ $ 744 232,165 28,350 11,602 181,001 11,602 491,577 744 144,802 67,349 22,285 343,914 255,703 4,777 144,802 67,349 22,285 343,914 255,703 4,777 $ 144,802 $ 78,951 $ 22,285 $ 835,491 $ 255,703 $ 5,521 Page 209 of 508 121 CITY OF SHAKOPEE COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) December 31, 2019 ASSETS Cash and Investments Cash with a Fiscal Agent Special Assessments Receivable: Deferred Accounts Receivable Interest Receivable Prepaid Items Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable Contracts Payable Due to Other Funds Due to Other Governments Advance from Other Funds Total Liabilities Deferred Inflows of Resources Unavailable Revenue - Special Assessments Total Deferred Inflows of Resources Fund Balances Nonspendable Restricted for: Special Revenue Debt Service Capital Projects Assigned Unassigned Total Fund Balances Capital Projects Tree Replacement Seal Coat TIF District No. 20 Enclave $ 213,143 $ 245,488 $ 250,061 620 714 22 $ 213,763 $ 246,202 $ 250,083 213,763 213,763 246,202 291,006 291,006 (40,923) 246,202 (40,923) Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 213,763 $ 246,202 $ 250,083 Page 210 of 508 122 Capital Projects Total Total Governmental Funds $ 4,687,946 $ 7,962,958 833,659 1,008,255 798,606 29,609 12,691 22,161 1,401 $ 5,534,296 $ 9,822,990 $ 207,929 $ 245,449 232,165 232,165 28,350 28,350 12,153 15,454 472,007 472,007 952,604 993,425 798,606 798,606 1,401 191,339 3,147,055 3,902,170 3,902,170 720,445 829,917 (40,923) (40,923) 4,581,692 8,030,959 $ 5,534,296 $ 9,822,990 Page 211 of 508 123 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NON MAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 Special Revenue Forfeiture Revolving Telecommunication SCDP Grant Loan REVENUES Taxes $ - $ 31,103 $ $ Tax Increment - Special Assessments - Licenses and Permits - Intergovernmental - Charges for Services - Fines and Forfeitures 75,819 Miscellaneous 10,708 Investment Income 7,121 3,321 Total Revenues 93,648 34,424 EXPENDITURES Current General Government Public Safety Conservation and Natural Resources Economic Development Debt Service Principal Interest and Other Charges Capital Outlay Total Expenditures 118,399 1,650 73,004 118,399 1,650 73,004 Excess of Revenues Over (Under) Expenditures (24,751) 32,774 (73,004) OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset Bonds Issued Premium on Bonds Issued Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances (24,751) 32,774 (73,004) FUND BALANCES Beginning of Year End of Year 199,123 76,698 18,368 73,004 $ 174,372 $ 109,472 $ 18,368 $ Page 212 of 508 124 Special Revenue Debt Service 2016A GO 2008A GO 2010A GO 2012A GO Tax Improvement Improvement Refunding Abatement Lodging Tax Total Bonds Bonds Bonds Bonds $ 397,272 $ 428,375 $ - $ 115,000 $ - $ 2,068,600 397,272 - 19,585 174,642 - 75,819 - 10,708 - 10,442 1,622 525,344 1,622 397,272 398,922 118,399 73,004 4,819 139,404 58,410 20,185 233,052 2,088,785 215,000 135,000 465,000 1,095,000 5,050 9,003 62,950 1,011,856 397,272 590,325 220,050 144,003 527,950 2,106,856 (64,981) (218,428) (4,599) (294,898) (18,071) - - - 300,000 14,995 - (13,639) - - - - (13,639) - 300,000 14,995 (64,981) (232,067) (4,599) 5,102 (3,076) 367,193 232,067 179,544 1,658,217 1,137,271 $ $ 302,212 $ - $ 174,945 $ 1,663,319 $ 1,134,195 125 Page 213 of 508 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NON MAJOR GOVERNMENTAL FUNDS (Continued) For the Year Ended December 31, 2019 REVENUES Taxes Tax Increment Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Investment Income Total Revenues EXPENDITURES Current General Government Public Safety Conservation and Natural Resources Economic Development Debt Service Principal Interest and Other Charges Capital Outlay Total Expenditures Debt Service Capital Projects 2019A Tax Increment TIF District Bonds Total Park Reserve No. 10 $ 2,183,600 $ $ 55,513 194,227 1,255,118 150,000 9,982 23,469 85,036 129,374 1 2,462,863 1,910,000 1,088,859 2,998,859 1,567,943 55,514 1,189,095 53,365 400 1,189,095 53,765 Excess of Revenues Over (Under) Expenditures (535,996) 378,848 1,749 OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset Bonds Issued 174,596 174,596 Premium on Bonds Issued - Transfers In 314,995 Transfers Out (13,639) Total Other Financing Sources (Uses) 174,596 475,952 Net Change in Fund Balances 174,596 (60,044) 378,848 1,749 FUND BALANCES Beginning of Year 3,207,099 2,943,876 (653) End of Year $ 174,596 $ 3,147,055 $ 3,322,724 $ 1,096 Page 214 of 508 126 Capital Projects TIF District TIF District No. 18 TIF District No. Shutterfly No. 15 All Datacard TIF District Canterbury 14 J&J / Sanmar Abatement Saints/Trident Abatement No. 16 Rahr Common $ - $ 120,401 $ $ 65,184 $ $ 315,191 - 172,703 - 553,391 6,371 315,191 120,401 172,703 65,184 553,391 6,371 285,337 120,401 197,460 65,184 539,178 35,978 - - 7,484 - - 3,656,018 285,337 120,401 197,460 65,184 539,178 3,699,480 29,854 - (24,757) - 14,213 (3,693,109) - - 4,045,404 - - 267,587 (125,750) 4,187,241 29,854 - (24,757) - 14,213 494,132 114,948 - 92,106 8,072 (150,218) $ 144,802 $ $ 67,349 $ - $ 22,285 $ 343,914 Page 215 of 508 127 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NON MAJOR GOVERNMENTAL FUNDS (Continued) For the Year Ended December 31, 2019 Capital Projects Community Center & Ice Road Expansion Arena Dedication Lions Park Tree Replacement REVENUES Taxes $ - $ - $ - $ - Tax Increment Special Assessments - - - - Licenses and Permits - - - - Intergovernmental - - - 13,355 Charges for Services - 117,138 - 2,771 Fines and Forfeitures - - - - Miscellaneous - - 8,394 - lnvestment Income 41 7,009 - 7,985 Total Revenues 41 124,147 8,394 24,111 EXPENDITURES Current General Government - - - - Public Safety - - - - Conservation and Natural Resources - - - 38,760 Economic Development - - - - Debt Service Principal - - - Interest and Other Charges - - - - Capital Outlay 5,985 2,500 25,617 Total Expenditures 5,985 2,500 25,617 38,760 Excess of Revenues Over (Under) Expenditures (5,944) 121,647 OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset Bonds Issued Premium on Bonds Issued Transfers In Transfers Out Total Other Financing Sources (Uses) (1,356) (1,356) (17,223) (14,649) Net Change in Fund Balances (7,300) 121,647 (17,223) (14,649) FUND BALANCES Beginning of Year 7,300 134,056 22,000 228,412 End of Year $ - $ 255,703 $ 4,777 $ 213,763 Page 216 of 508 128 Capital Projects TIF District No. Seal Coat City Hall 20 Enclave Total Total Other Governmental Funds $ - $ $ $ 323,909 $ 2,935,884 - 1,096,798 1,096,798 - - 194,227 - 1,255,118 1,255,118 - 163,355 163,355 - 129,891 129,891 - - 75,819 107,498 250,000 389,361 400,069 6,961 81 157,823 253,301 114,459 250,081 3,516,255 6,504,462 398,922 118,399 38,760 38,760 29,160 1,464,3 87 1,53 7,391 29,160 1,910,000 7,884 1,096,743 4,879,215 4,879,215 6,390,246 9,979,430 114,459 220,921 (2,873,991) (3,474,968) 50,000 1 1 1 4,045,404 4,220,000 267,587 267,587 50,000 364,995 (261,845) (388,951) (402,590) 50,000 (261,844) 3,974,041 4,449,993 114,459 50,000 (40,923) 1,100,050 975,025 131,743 (50,000) 3,481,642 7,055,934 $ 246,202 $ $ (40,923) $ 4,581,692 $ 8,030,959 129 Page 217 of 508 CITY OF SHAKOPEE COMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDS December 31, 2019 Information Employee and Equipment Buildings Park Asset Benefits Technology Self Insurance Total ASSETS Current Assets Cash and Investments, lnclud lig Cash Equivalents $ 4,622,575 $ 5,480,066 $ 1,220,377 $ 1,057,466 $ 714,075 $ 1,536,748 $14,631,307 Interest Receivable 13,443 15,937 3,549 3,075 2,068 4,469 42,541 Prepaid Expenses - - - - 68,464 195,936 264,400 Total Current Assets 4,636,018 5,496,003 1,223,926 1,060,541 784,607 1,737,153 14,938,248 Noncurrent Assets Advances to Other Funds, Noncurrent 941,394 250,000 1,191,394 Capital Assets: Land 221,876 221,876 Constnaction in Progress 194,422 185,253 379,675 Infrastructure 210,141 3,596,319 3,806,460 Buildings 29,525,361 3,296,094 32,821,455 Machinery and Equipment 12,059,272 314,161 4,604,914 484,773 17,463,120 Total Cost 12,253,694 30,049,663 11,904,456 484,773 54,692,586 Less Accumulated Depreciation (5,874,232) (12,185,963) (5,487,875) (231,611) (23,779,681) Net Capital Assets 6,379,462 17,863,700 6,416,581 253,162 30,912,905 Total Noncurrent Assets 7,320,856 18,113,700 6,416,581 253,162 32,104,299 Total Assets $11,956,874 $23,609,703 $ 7,640,507 $ 1,060,541 $ 1,037,769 $ 1,737,153 $47,042,547 LIABILITIES AND NET POSITION Current Liabilities Accounts Payable Contracts Payable Current Compensated Absences Total Current Liabilities $ 3,797 $ 39,262 $ 3,734 1,117,403 $ 11,522 $ 2,500 $ 57,081 3,734 1,117,403 7,531 39,262 1,117,403 11,522 2,500 1,178,218 Noncurrent Liabilities Advance from Other Funds 1,430,000 - 1,430,000 Compensated Absences - 1,365,715 1,365,715 Total Noncurrent Liabilities 1,430,000 1,365,715 2,795,715 Total Liabilities 1,437,531 39,262 2,483,118 11,522 2,500 3,973,933 Net Position Investment in Capital Assets Unrestricted Total Net Position 6,379,462 5,577,412 11,956,874 17,863,700 6,416,581 4,308,472 1,184, 664 22,172,172 7,601,245 253,162 - 30,912,905 (1,422,577) 773,085 (1,422,577) 1,026,247 1,734,653 12,155,709 1,734,653 43,068,614 Total Liabilities and Net Position $11,956,874 $23,609,703 $ 7,640,507 $ 1,060,541 $ 1,037,769 $ 1,737,153 $47,042,547 130 Page 218 of 508 OPERATING REVENUES Rental Charges Other Charges Total Operating Revenues CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2019 Information Employee and Self Equipment Buildings Park Asset Benefits Technology Insurance Total $ 988,600 988,600 $ 1,037,000 $ 449,600 $ 1,524 1,037,000 451,124 $ 420,900 $ 865,673 $ 3,761,773 7,953 9,477 420,900 873,626 3,771,250 OPERATING EXPENSES Salaries and Benefits 216,518 - 216,518 Depreciation 895,255 681,847 418,783 - 24,557 - 2,020,442 Professional Services 12,412 1,305 79 43,682 57,478 Repairs and Maintenance 41,736 59,955 29,801 131,492 Materials and Supplies 71,288 77,287 269,393 - 417,968 Insurance - - - 747,232 747,232 Total Operating Expenses 966,543 813,282 420,088 216,518 353,984 820,715 3,591,130 Operating Income (Loss) 22,057 223,718 31,036 (216,518) 66,916 52,911 180,120 NONOPERATING REVENUES (EXPENSES) Investment lncome (Loss) 158,036 196,100 39,098 41,690 25,260 49,871 510,055 Insurance Dividends - - 24,282 24,282 Interest Expense (19,250) - (19,250) Gain (Loss) on Sale of Asset 91,089 60,000 14,116 165,205 Total Nonoperating Revenues (Expenses) 249,125 236,850 39,098 41,690 25,260 88,269 680,292 income (Loss) before Capital Contributions and Transfers 271,182 460,568 70,134 (174,828) 92,176 141,180 860,412 Capital Grants and Contribution 5,000 5,000 Capital Contributions from Outside Developers 162,455 162,455 Transfers In 2,084,504 - 2,084,504 Transfers Out (350,000) (2,084,504) (2,434,504) Change in Net Position 271,182 2,195,072 (1,846,915) (174,828) 92,176 141,180 677,867 NET POSITION Beginning of Year 11,685,692 19,977,100 9,448,160 (1,247,749) 934,071 1,593,473 42,390,747 End of Year $ 11,956,874 $ 22,172,172 $ 7,601,245 $ (1,422,577) $ 1,026,247 $ 1,734,653 $43,068,614 131 Page 219 of 508 CITY OF SHAKOPEE COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2019 Information Employee and Equipment Buildings Park Asset Benefits Technology Self Insurance Total CASH FLOWS - OPERATING ACTIVITIES Receipts from Customers and Users $ 988,600 Payments to Suppliers (71,288) Payments to Employees Net Cash Flows - Operating Activities 917,312 $ 1,037,000 $ 451,124 $ (163,516) (1,305) 873,484 449,819 (121,579) $ 420,900 (397,376) (121,579) 23,524 $ 880,330 (813,553) $ 3,777,954 (1,447,038) (121,579) 66,777 2,209,337 CASH FLOWS - NONCAPITAL FINANCING ACTIVITIES Payment Paid on Interfund Loan (60,000) (60,000) Interest Expense on Interfund Loan Repayment (19,250) (19,250) Receipts from Interfund Services 55,000 55,000 Insurance Dividends - 24,282 24,282 Transfer from Other Funds 2,084,504 2,084,504 Transfer to Other Funds (350,000) (2,084,504) (2,434,504) Net Cash Flows - Noncapital Financing Activities 1,710,254 (2,084,504) 24,282 (349,968) CASH FLOWS - CAPITAL AND RELATED FINANCING ACTIVITIES Donations Proceeds from Disposal of Capital Assets Acquisition of Capital Assets Net Cash Flows - Capital and Related Financing Activities 5.000 211.751 60,000 - (347,037) (207,278) (98,978) (135,286) (147,278) (93,978) (13,523) (13,523) 5,000 14,116 285,867 (666,816) 14,116 (375,949) CASH FLOWS - INVESTING ACTIVITIES Interest Received 158,839 191,413 46,781 43,010 25,816 50,745 516,604 Net Cash Flows - Investing Activities 158,839 191,413 46,781 43,010 25,816 50,745 516,604 Net Change in Cash and Cash Equivalents 940,865 2,627,873 (1,681,882) (78,569) 35,817 155,920 2,000,024 CASH AND CASH EQUIVALENTS Beginning of Year 3,681,710 2,852,193 2,902,259 1,136,035 678,258 1,380,828 12,631,283 End of Year $ 4,622,575 $ 5,480,066 $ 1.220,377 $ 1,057,466 $ 714,075 $ 1.536,748 $ 14,631,307 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS - OPERATING ACTIVITIES Operating Income (Loss) $ 22,057 $ 223,718 $ 31,036 $ (216,518) $ 66,916 $ 52,911 $ 180,120 Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows - Operating Activities: Depreciation Expense 895,255 681,847 418,783 24,557 2,020,442 Changes in: Accounts Receivable - - 6,704 6,704 Accounts and Contracts Payable (32,081) (29,526) (5,748) (67,355) Prepaid Expenses (38,423) 12,910 (25,513) Compensated Absences Payable 94,939 - - 94,939 Total Adjustments 895,255 649,766 418,783 94,939 (43,392) 13,866 2,029,217 Net Cash Flows - Operating Activities $ 917,312 $ 873,484 $ 449,819 $ (121,579) $ 23,524 $ 66,777 $ 2,209,337 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Contributions of Capital Assets from the Municipality and Developers $ $ $ 162,455 $ $ $ $ 162,455 132 Page 220 of 508 STATISTICAL SECTION 133 Page 221 of 508 (THIS PAGE LEFT BLANK INTENTIONALLY) 134 Page 222 of 508 CITY OF SHAKOPEE STATISTICAL SECTION December 31, 2019 This part of the City's Comprehensive Annual Financial Report (CAFR) presents detailed information for placing in context and understanding what the information shown in the financial statements, note disclosures and required supplementary information reveals about the City's overall financial health. CONTENTS Page Financial Trends 140 These schedules show trend information to help the reader understand how the City's financial performance and well being have changed over time. Revenue Capacity 148 Portrayed is information to help the reader assess the City's most important local revenue source, the property tax. Debt Capacity 152 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information 159 Shown are demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 162 These schedules shown service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Source: Unless noted otherwise, the information in these schedules is from the CAFR for the relevant year. 135 Page 223 of 508 Governmental Activities: Net Investment in Capital Assets Restricted Unrestricted Total Governmental Activities Net Position Business -Type Activities: CITY OF SHAKOPEE NET POSITION BY COMPONENT Years 2010 Through 2019 2010 2011 2012 2013 $ 111,905,152 1,844,129 43,910,102 $ 114,981,955 10,914,439 32,771,327 $ 115,191,768 9,912,551 34,823,712 $ 118,166,525 10,454,238 30,642,443 $ 157,659,383 $ 158,667,721 $ 159,928,031 $ 159,263,206 Net Investment in Capital Assets $ 115,064,968 $ 65,080,070 $ 64,124,590 $ 65,181,465 Restricted 4,889,050 - - - Unrestricted 59,014,070 31,927,930 33,354,521 31,183,904 Total Business -Type Activities Net Position $ 178,968,088 $ 97,008,000 $ 97,479,111 $ 96,365,369 Primary Government: Net Investment in Capital Assets $ 226,970,120 $ 180,062,025 $ 179,316,358 $ 183,347,990 Restricted 6,733,179 10,914,439 9,912,551 10,454,238 Unrestricted 102,924,172 64,699,257 68,178,233 61,826,347 Total Primary Government Net Position $ 336,627,471 $ 255,675,721 $ 257,407,142 $ 255,628,575 In 2010 the SPUC Funds, Water and Electric Enterprise Funds, were reported as a blended component unit of the City. In 2011, SPUC funds have been presented as discretely presented component units as it no longer met the criteria for blending. The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated. 136 Page 224 of 508 Table 1 2014 2015 2016 2017 2018 2019 $ 117,980,552 $ 120,831,029 $ 128,559,527 $ 135,442,110 $ 137,799,457 $ 139,359,387 7,103,581 7,547,490 6,637,391 6,342,643 7,136,534 6,774,024 35,302,035 23,939,064 16,719,760 15,059,730 16,107,363 21,218,968 $ 160,386,168 $ 152,317,583 $ 151,916,678 $ 156,844,483 $ 161,043,354 $ 167,352,379 $ 67,831,099 $ 68,986,369 $ 70,099,288 $ 75,547,444 $ 78,642,426 $ 83,567,240 28,485,814 25,981,542 $ 96,316,913 $ 94,967,911 23,281,483 22,730,751 22,999,131 23,939,802 $ 93,380,771 $ 98,278,195 $ 101,641,557 $ 107,507,042 $ 185,811,651 $ 189,817,398 $ 198,658,815 $ 210,989,554 $ 216,441,883 $ 222,926,627 7,103,581 7,547,490 6,637,391 6,342,643 7,136,534 6,774,024 63,787,849 49,920,606 40,001,243 37,790,481 39,106,494 45,158,770 $ 256,703,081 $ 247,285,494 $ 245,297,449 $ 255,122,678 $ 262,684,911 $ 274,859,421 Page 225 of 508 137 CITY OF SHAKOPEE CHANGES IN NET POSITION Years 2010 Through 2019 2010 2011 2012 2013 2014 2015 2016 EXPENSES: Governmental Activities: General Government $ 3,042,918 $ 4,252,887 $ 4,603,027 $ 4,704,956 $ 5,514,412 $ 4,237,647 $ 4,205,975 Public Safety 9,123,316 9,236,767 9,430,785 9,868,702 10,543,861 10,582,354 13,281,715 Public Works 8,397,874 7,094,047 7,083,299 7,578,493 10,667,275 8,552,096 8,593,885 Culture and Recreation 3,765,660 3,866,307 3,817,677 4,020,974 4,250,557 4,355,453 4,653,362 Conservation and Natural Resources - - - - - - Economic Development 427,169 244,361 152,541 338,907 1,593,968 2,603,741 2,104,584 Other 784,824 619,099 587,384 573,949 453,696 274,960 1,190,824 Total Governmental Activities Expenses 25,541,761 25,313,468 25,674,713 27,085,981 33,023,769 30,606,251 34,030,345 Business -Type Activities: Electric 32.700,410 - - - - - - Water 3,293,079 - - - - - - Sewer 3,685,417 3,807,322 3,926,541 4,096,504 3,777,866 3,824,026 3,843.232 Storm 1,792,749 1,382,391 1,445,633 1,641,438 1,924,853 1,726,149 1,848,768 Refuse - - - - - 127,781 127,034 Total Business -Type Activities Expenses 41,471,655 5,189,713 5,372,174 5,737,942 5,702,719 5,677,956 5,819,1)34 Total Primary Government Expenses $ 67,013,416 $ 30,503,181 $ 31,046,887 $ 32,823,923 $ 38,726,488 $ 36,284,207 $ 39,849,379 PROGRAM REVENUES: Governmental Activities: Charges for Services: General Government $ 289,390 $ 343,169 $ 2,966,953 $ 2,647,951 $ 2,751,336 $ 2,486,042 $ 2,410,321 Public Safety 1.716,573 1,503,188 1,524,158 1,701,875 1,879,209 2,146,840 2,744,824 Public Works 941,224 478,788 454,145 688,286 693,647 704,687 746,086 Culture and Recreation 1,039,820 1.071,482 2,222,430 2,012,436 1,827,046 2,140,071 1,760,925 Conservation and Natural Rcsourccs - - Economic Development 7,100 16,500 18,000 18,000 24,000 256.312 Operating Grants and Contributions 2,943,857 3,606,089 2,106,559 1,894,436 2,880,493 2,509,986 2,777,982 Capital Grants and Contributions 952,450 3,152,881 1,479,343 689,424 6,668,531 1,735,543 2.187.039 Total Governmental Activities Program Revenues 7,883,314 10,162,697 10,770,088 9,652,408 16,718,202 11,747,169 12.883,489 Business -Type Activities: Charges for Services: Electric Water Server Storm Refuse Operating Grants and Contributions Capital Grants and Contributions Total Business -Type Activities Program Revenues Total Primary Government Program Revenues 36.872.008 4,417,498 3,508,947 1,281,986 2,941,753 3,728.189 3,004,826 2,916,192 2,829,981 3,292,166 1083,878 1,442,394 1,720,653 1,211,793 1,765,679 1,632,218 - 72,167 103,637 105,309 6,415 - 1,661,001 93,810 348.756 7,780 496,655 65,844 183,142 47,747,855 4,119,441 5,519,339 4,733,259 4,696,807 4,765,141 5,212,835 $ 55,631,169 $ 14,282,138 $ 16,289,427 $ 14,385,667 $ 21,415,069 $ 16,512,310 $ 18,096,324 Net (Expense) Revenue: Governmental Activities $ (17,658,447) $ (15,150,771) $ (14,904,625) $ (17,433,573) $ (16,305,507) $ (18,859,082) $ (21,146,856) Business -Type Activities 6,276,200 (1,070,272) 147,165 (1,004,683) (1,005,912) (912,815) (606,199) Total Primary Governrent Net Expense $ (11,382.247) $ (16,221,043) $ (14,757,460) $ (18,438,256) $ (17,311,419) $ (19,771,897) $ (21,753,055) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION: Governmental Activities: Taxes: Property $ 14,229,111 $ 14,487,805 $ 15,002,764 $ 15,795,777 $ 16,446,631 $ 16,807,367 $ 18,015,507 Franchise 363,296 378,011 389,819 399,496 404,312 418,545 448,023 Other 147,561 16)1,884 113,902 113,796 216,441 406,571 464,632 Unrestricted Investment Earnings 1,039.867 1,032,409 546,681 40.589 727,619 452,281 495,804 Gain on Disposal of Assets - - 11,769 256,600 52,674 87,819 50,132 Special Item - - - - - 496,484 - Transfers 2,089,406 100,000 100,000 162,490 (419,208) (634,070) 1,271,853 Total Govermnental Activities 17,869,241 16,159,109 16,164,935 16,768,748 17,428,469 18,034,997 20,745,951 Business -Type Activities: Investment Earnings Gain on Disposal of Assets Transfers Total Business -Type Activities Total Primary Government Change in Net Position: Government Activities Business -Type Activities Total Primary Government 1,279,872 (2,089,406) 758,182 (100,000) 423,946 53,431 538,248 349,776 289,001 - - - 17,438 1,911 (100,000) (162,490) 419,208 (496,484) (1,271,853) (809,534) 658,182 323,946 (109,059) 957,456 (129,270) (980,941) $ 17,059.707 $ 16,817,291 $ 16,488,881 $ 16,659,689 $ 18,385,925 $ 17,905,727 $ 19.765,010 $ 210,794 $ 1,008 338 $ 1,260,310 5.466,666 (412,090) 471,111 $ 5,677,460 $ 596,248 $ 1,731,421 $ (664,825) $ 1,122,962 $ (824,085) $ (400,905) (1,113,742) (48,456) (1,042,085) (1,587,140) $ (1,778,567) $ 1,074,506 $ (1,866,170) $ (1,988,045) 1n 2010 the SPEC funds, Water and Electric Enterprise Funds, were reported as a blended component unit of the City. 1n 2011. SPUC Funds have been presented as discretely presented component units as it no longer met the criteria for blending. The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated. In 2018 the City reported Conservation and Natural Rcsourccs separately from Culture and Recreation. Prior years have not bccn restated. 138 Page 226 of 508 2017 2018 2019 $ 4,624,885 $ 5,267,652 $ 5,372,566 11,981,416 11,376,216 12,921,133 9,695,789 12,431,309 12,681,165 5,359,259 4,953,434 5,171,408 - 87,555 169,247 1,630,516 3,069,377 3,271,933 1,112,571 1,009,230 666,405 34,404,436 38,194,773 40,253,857 4,226,027 3,968,897 4,216,061 1,773,670 1,685,266 1,785,789 125,647 124579 123,513 6,125,344 5,778,742 6,125,363 $ 40,529,780 8 43,973,515 $ 46,379,220 $ 2.544.126 $ 2,811,252 $ 2,738,342 2.989,770 3,225,764 5,386,489 880.361 1,033,398 1,325,631 2,813,951 4,167,615 3,847,457 52,384 3,683 26,520 113,908 311,737 2.068.419 2,036,547 1,881,409 3,847,001 5,061,933 6,527,458 15,170,148 18,502,801 22,022,206 3,380,321 3,682,569 4,222,236 1,272,506 1,230,592 1,304,738 131,753 104,638 137,824 890 2,701,892 4.233,507 5,213,883 7.487,362 9.251,306 10,878,681 $ 22,657,510 $ 27,754,107 $ 32,900,887 8 (19.234,288) $ (19,691,972) $ (18,231,6511 1.362,018 3,472,564 4,753,318 $ (17.872,270) $ (16,219,408) $ (13,478,333) $ 19,229,300 $ 20,005,373 $ 19,416,202 1,251,819 1,343,650 1,305,556 1,014,774 1,657,231 2,405,929 390,911 508,812 1,464.670 1,576 14,588 165,784 26,990 436,480 (217,4651 21.915,370 23,966,134 24,540,676 340,345 318,501 812,204 6,217 1,875 82,498 (26,990) (436,480) 217,465 319,572 (116104) 1,112,167 $ 22.234,942 $ 23,850,030 $ 25,652,843 $ 2.681,082 $ 4,274,162 $ 6,309,025 1,681,590 3,356,460 5,865,485 $ 4,362,672 $ 7,630,622 $ 12,174,51(1 Table 2 Page 227 of 508 139 General Fund: Nonspendable: Prepaids Restricted for: BATC Litigation Committed to: Working Capital Building Permits Unassigned Total General Fund All Other Governmental Funds Nonspendable: Prepaids Restricted for: Forfeitures Transit Telecomminication SCDP Grant Revolving Loans Economic Development Debt Service Capital Improvements Committed to: Working Capital Transit Revolving Loans Economic Development Park Projects Capital Improvements 2008 Projects 2009 Projects 2010 Projects Fire Station 2 Assigned to: Telecomminication Capital Improvements Capital Projects Funds Unassigned Total all Other Governmental Funds CITY OF SHAKOPEE FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2010 $ 149,940 218,032 345,820 8,323,938 $ 9,037,730 189,112 1,158,355 55,743 143,023 447,319 5,127,697 2,203,238 345,820 463,470 100,000 20,930 1,785,164 3,616,689 190,431 14,876 131,398 2,476,886 49,192 (116,803) 2011 $ 131,447 9,172,747 $ 9,304,194 208,518 1,237,762 22,462 249,147 497,775 4,625,946 958,195 45,681 6,964,247 413,228 (484,089) 2012 $ 19,189 9,503,652 2013 $ 16,440 9,076,549 $ 9,522,841 $ 9,092,989 195,823 1,045,340 22,447 252,639 562,959 9,574,198 1,815,339 66,989 8,681,475 394,666 (384,965) 180,696 941,469 4,546 253,065 685,671 8,678,680 1,882,231 54,499 5,753,669 176,398 (1,716) $ 18,402,540 $ 14,738,872 $ 22,226,910 $ 18,609,208 Page 228 of 508 140 2014 2015 2016 2017 2018 2019 $ 13,949 $ 21,573 $ 22,188 $ 59,023 68,784 155,116 9,824,097 9,818,537 10,739,178 11,918,971 12,250,660 1,588,000 14,136,227 $ 9,838,046 $ 9,840,110 $ 10,761,366 $ 11,977,994 $ 12,319,444 $ 15,879,343 $ $ - $ - $ 3,801 $ 1,401 174,580 180,555 186,965 221,048 195,322 172,971 635,247 - - - 4,627 4,683 4,734 10,805 18,368 18,368 257,601 260,865 263,787 138,004 73,004 - 361,569 674,910 1,503,917 356,588 - 7,053,086 3,085,157 3,712,584 3,608,453 3,207,099 3,147,055 1,634,954 1,425,798 7,213,258 1,539,267 3,166,302 3,902,170 76,342 108,627 70,795 74,139 76,698 109,472 5,630,178 6,130,194 4,744,275 6,592,822 6,423,824 5,771,223 228,059 1,505,595 2,244,591 530,329 516,211 720,445 (7,316) (1,715,102) (39,928) (3,241,015) (2,823,436) (2,151,671) $ 16,048,927 $ 11,661,282 $ 19,904,978 $ 9,830,440 $ 10,857,193 $ 11,691,434 Table 3 Page 229 of 508 141 CITY OF SHAKOPEE CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years REVENUES: Taxes Special Assessments Licenses and Permits Intergovernmental Charges for Service Fines and Forfeits Miscellaneous Total Revenues EXPENDITURES: General Government Police Public Works Culture and Recreation Conservation and Natural Resources Economic Development Debt Service: Principal Interest and Other Charges Capital Outlay Total Expenditures Excess of Revenues Under Expenditures OTHER FINANCING SOURCES (USES): Bonds Issued Sale of Assets Premium on Bonds Issued Capital Lease Issued Transfers In Transfers Out Special Items Total Other Financing Sources (Uses) Net Change in Fund Balance Debt Service as a Percentage of Noncapital Expenditures 2010 $ 14,385,788 1,404,088 1,338,111 2,924,161 2,202,524 549,543 1,255,038 24,059,253 2011 $ 14,699,066 1,475,324 1,281,150 3,941,830 3,958,237 411,211 705,969 26,472,787 2012 2013 $15,141,903 $ 15,851,560 1,499,810 930,331 2,441,246 2,349,945 2,548,692 1,857,803 4,449,003 4,583,551 418,474 381,470 836,868 189,717 27,335,996 26,144,377 2,960,233 4,004,684 4,396,219 4,495,662 9,012,567 9,460,824 9,483,999 9,731,407 3,902,622 2,602,104 2,349,042 2,631,154 4,075,919 3,902,386 3,799,723 3,771,068 270,915 247,591 155,692 340,904 3,800,000 2,565,000 1,950,000 2,070,000 833,245 658,265 634,063 618,695 2,812,488 6,301,406 2,164,053 6,883,191 27,667,989 29,742,260 24,932,791 30,542,081 (3,608,736) 1,555,000 6,000 13,199,807 (12,380,403) (3,269,473) 2,403,205 (4,397,704) 2,968,919 (2,750,830) 2,380,404 218,089 4,865,000 73,480 3,367,400 (3,002,400) 5,303,480 150 4,890,809 (4,540,809) 350,150 $ (1,228,332) $ (3,051,384) $ 7,706,685 $ (4,047,554) 18% 14% 11% 11% In 2018 the City reported Conservation and Natural Resources separately from Culture and Recreation. Prior years have not been restated. 142 Page 230 of 508 2014 $ 16,798,542 2,673,132 2,318,447 4,743,014 4,683,722 429,021 675,643 32,321,521 2015 $ 17,225,535 1,157,405 2,989,038 3,427,130 4,479,845 171,856 604,816 30,055,625 2016 $ 18,549,468 1,615,161 3,146,818 3,619,810 4,759,244 104,943 877,108 2017 $ 21,476,591 933,773 3,283,495 2,447,795 5,681,712 241,874 1,004,665 32,672,552 35,069,905 2018 $ 22,999,326 984,158 4,361,054 2,596,486 6,841,887 95,821 589,865 38,468,597 2019 $ 23,139,620 835,345 5,912,112 3,038,944 7,226,584 83,957 1,493,245 41,729,807 5,225,483 3,864,337 4,016,871 4,415,257 5,047,823 5,130,038 10,193,496 10,209,739 10,643,342 11,039,220 11,692,533 12,849,532 2,829,846 3,036,284 3,061,172 2,973,840 5,634,985 5,824,268 3,981,999 3,891,542 4,269,211 5,228,929 3,598,591 3,885,624 - - - - 89,488 169,959 1,595,628 2,352,621 2,092,337 1,611,073 2,848,426 2,510,329 3,160,000 5,615,000 1,685,000 1,685,000 1,995,000 1,910,000 504,460 365,898 864,494 1,259,987 1,171,990 1,096,743 7,245,157 5,461,607 32,159,412 18,386,260 5,928,038 9,047,340 34,736,069 34,797,028 58,791,839 46,599,566 38,006,874 42,423,833 (2,414,548) (4,741,403) (26,119,287) (11,529,661) 461,723 314 3,531,038 (2,932,028) 6,13 5,344 (5,145,452) (634,070) 29,500,000 9,134 104,661 2,237,727 79,100 6,916,355 7,282,929 (3,378,977) (4,794,939) 599,324 355,822 35,284,239 2,671,751 4,038,516 (3,132,036) 906,480 (694,026) 4,220,000 579 267,587 1,125,289 (525,289) 5,088,166 $ (1,815,224) $ (4,385,581) $ 9,164,952 $ (8,857,910) $ 1,368,203 $ 4,394,140 12% 20% 9% 10% 9% 8% Table 4 Page 231 of 508 143 CITY OF SHAKOPEE Table 5 TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Taxable Tax Estimated Capacity as a Commercial Less: Less Net Net Taxable Total Taxable Percentage of Fiscal Residential Industrial Other Tax Increment Fiscal Tax Direct Market Estimated Year Property Property Property Property Disparities Capacity Tax Rate Value Market Value 2010 $ 27,805,069 $ 16,459,872 $ 1,279,807 $ 151,914 $ 1,584,552 $ 43,808,282 0.33710 $ 3,710,814,056 1.18% 2011 24,652,932 18,351,835 1,304,688 161,430 1,630,522 42,517,503 0.34731 3,570,069,500 1.19% 2012 23,180,073 17,956,273 852,512 155,002 1,740,447 40,093,409 0.36655 3,347,179,800 1.20% 2013 22,824,263 17,577,547 576,049 107,928 1,707,617 39,162,314 0.41996 3,064,695,700 1.28% 2014 22,782,372 17,580,049 589,717 214,592 1,961,307 38,776,239 0.41437 3,206,518,700 1.21% 2015 26,419,959 18,769,230 625,872 408,172 1,918,874 43,488,015 0.37862 3,629,757,200 1.20% 2016 27,838,939 20,111,657 670,839 384,578 1,857,605 46,379,252 0.37902 3,844,106,800 1.21% 2017 28,199,409 23,224,857 608,016 827,765 2,015,785 49,188,732 0.38522 4,034,313,200 1.22% 2018 30,219,157 25,743,850 553,398 1,330,932 2,104,902 53,080,571 0.37212 4,342,662,600 1.22% 2019 32,118,359 27,272,649 508,798 1,657,341 2,239,985 56,002,480 0.34943 4,613,605,800 1.21% Source: Scott County Auditor 144 Page 232 of 508 CITY OF SHAKOPEE Table 6 DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years City Direct Rate General Obligation Shakopee Debt Service Fiscal Operating Debt Service Total Direct School Scott Other Market Value Year Rate Rate Rate District County Jurisdictions Rate 2010 0.32152 0.01558 0.33710 0.29050 0.33240 0.04980 0.00651 2011 0.32996 0.01735 0.34731 0.31182 0.35541 0.05020 0.00342 2012 0.34005 0.02650 0.36655 0.35512 0.38802 0.05610 0.00345 2013 0.41996 - 0.41996 0.39715 0.40674 0.05701 0.00467 2014 0.39305 0.02131 0.41437 0.36963 0.39720 0.05569 0.00524 2015 0.35235 0.02626 0.37862 0.35578 0.36638 0.05169 0.00536 2016 0.34757 0.03145 0.37902 0.53478 0.36175 0.05129 0.00605 2017 0.26948 0.11574 0.38522 0.49282 0.35896 0.04979 2018 0.25874 0.11337 0.37212 0.52141 0.35114 0.05732 2019 0.23588 0.11355 0.34943 0.52934 0.33841 0.06466 Sources: Scott County Auditor and League of Minnesota Cities Reports 145 Page 233 of 508 CITY OF SHAKOPEE PRINCIPAL TAXPAYERS Current Year and Nine Years Ago 2019 2010 Table 7 Percentage Percentage 2018/19 of Total 2009/10 of Total Tax Cap. Tax Cap. Tax Cap. Tax Cap. Taxpayer Type of Business Value Rank Value Value Rank Value RELP Shakopee Distribution $ 1,261,750 1 2.38% Duke Realty Limited Partner. Manufacturing 775,135 2 1.46% Xcel Energy Electrical Generation 726,546 3 1.37% $ 521,985 1 1.16% Rahr Malting Grain Processing 691,298 4 1.30% 389,250 4 0.87% Rosemount Inc Manufacturing 550,724 5 1.04% St. Francis RMC Health Care 543,282 6 1.02% 341,181 9 0.76% J & J Minneapolis LLC Manufacturing 493,434 8 0.93% Liberty Properties LP Distribution 493,954 7 0.93% WOP Addison LLC Apartments 473,100 9 0.89% Seagate Technology LLC Manufacturing/Research 461,642 10 0.87% 363,250 6 0.81% Shakopee Valley Market Retail 412,255 2 0.92% Certainteed Manufacturing 399,250 3 0.89% Ryan Companies Property Management 379,464 5 0.85% Ryan Mpls II LLC Property Management 361,371 7 0.81% Valleyfair Amusement Park 358,500 8 0.80% Source: Scott County Auditor $ 6,470,865 12.19% $ 3,526,506 7.86% Page 234 of 508 146 CITY OF SHAKOPEE Table 8 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Ratio of Accumulated Percentage Delinquent Collections Percentage Collections of Total Accumulated Taxes to Year Tax of Current of Levy of Prior Total Collections Delinquent Current Collected Levy Years Taxes Collected Years Taxes Collections To Tax Levy Taxes Years Taxes 2010 $ 14,918,665 $ 13,971,356 94% $ 55,020 $ 14,026,376 94% $ 310,624 2.08% 2011 14,837,438 14,019,831 94% 278,981 14,298,812 96% 260,248 1.75% 2012 14,837,438 14,553,417 98% 188,750 14,742,167 99% 235,011 1.58% 2013 15,483,223 15,109,599 98% 279,485 15,389,084 99% 293,025 1.89% 2014 16,312,179 16,177,463 99% - 16,177,463 99% 157,555 0.97% 2015 16,773,267 16,351,700 97% - 16,351,700 97% 145,958 0.87% 2016 17,610,195 17,316,074 98% 41,140 17,357,214 99% 76,631 0.44% 2017 18,926,341 18,628,201 98% - 18,628,201 98% 95,933 0.51% 2018 19,610,548 19,198,990 98% 43,706 19,242,696 98% 102,862 0.52% 2019 19,580,500 18,992,066 97% 61,887 19,053,953 97% 90,928 0.46% Source: Scott County Auditor 1. The above data does not include tax increment districts. 2. The State of Minnesota cancelled $ 558,860 in 2010 and $ 595,572 in 2011 of annual aid payments to the City that were part of the tax levy. 147 Page 235 of 508 CITY OF SHAKOPEE Table 9 RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Activities Business -type Special Activities Total Percentage Fiscal G.O. Assessment Capital Revenue Primary of Personal Per Year Bonds Bonds Leases Bonds Government Income Capita 2010 $ 6,340,000 $ 12,370,000 $ - $ 21,470,000 $ 40,180,000 3.4% 1,084 2011 5,905,000 10,240,000 - - 16,145,000 1.3% 428 2012 10,325,000 8,735,000 - - 19,060,000 1.6% 504 2013 9,865,000 7,125,000 - - 16,990,000 1.4% 446 2014 9,390,000 4,440,000 - - 13,830,000 1.1% 353 2015 5,100,000 3,115,000 - - 8,215,000 0.7% 208 2016 36,070,590 2,095,000 - - 38,165,590 2.9% 948 2017 35,284,168 1,085,000 65,330 - 36,434,498 2.7% 886 2018 33,677,746 585,000 46,542 - 34,309,288 2.5% 826 2019 36,226,324 235,000 26,616 - 36,487,940 2.6% 879 Sources: Details regarding the city's outstanding debt can be found in the notes to the financial statements. See Table 14 for income and population data. Note: In 2010 the SPUC Funds, Water and Electric Enterprise Funds, were reported as a blended component unit of the City. In 2011, SPUC Funds have been presented as discretely presented component units as it no longer met the criteria for blending. 148 Page 236 of 508 CITY OF SHAKOPEE Table 10 RATIOS OF GENERAL BONDED OUTSTANDING Last Ten Fiscal Years Less: Net Percentage of Percentage of Total Available General Actual Taxable Total Fiscal G.O. in Debt Bonded Debt Value of Per Personal Year Bonds Service Outstanding Property Capita Income 2010 $ 6,340,000 $ 5,127,697 $ 1,212,303 0.17% $ 33 0.54% 2011 5,905,000 4,625,946 1,279,054 0.17% 34 0.49% 2012 10,325,000 9,574,198 750,802 0.31% 20 0.86% 2013 9,865,000 8,678,680 1,186,320 0.32% 31 0.81% 2014 9,390,000 7,053,086 2,336,914 0.29% 60 0.75% 2015 5,100,000 3,085,157 2,014,843 0.14% 51 0.40% 2016 36,070,590 3,712,584 32,358,006 0.94% 804 2.74% 2017 35,284,168 3,608,453 31,675,715 0.87% 770 2.63% 2018 33,677,746 3,207,099 30,470,647 0.78% 734 2.44% 2019 36,226,324 3,147,055 33,079,269 0.79% 797 2.60% Sources: 1. Metropolitan Council estimated for population. 2. Scott County Auditor 3. Details regarding the city's outstanding debt can be found in the notes to the financial statements. 149 Page 237 of 508 (THIS PAGE LEFT BLANK INTENTIONALLY) 150 Page 238 of 508 CITY OF SHAKOPEE Table 11 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2019 Direct Debt: City of Shakopee Percentage Amount Applicable Applicable G.O. To City of To City of Debt Shakopee (1) Shakopee $ 36,461,324 100.0% $ 36,461,324 Overlapping Debt: Independent School District No. 720 165,655,000 76.1% 126,031,089 Independent School District No. 191 138,355,000 2.9% 3,981,093 Scott County 113,540,000 24.1% 27,399,787 Metropolitan Council (2) 265,680,000 1.1% 2,885,497 Total Overlapping Debt: 683,230,000 160,297,466 Total Direct and Overlapping Debt $ 719,691,324 $ 196,758,790 Source: Scott County and Dakota County Taxation Department Metropolitan Council Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each government. (1) The percentage of overlapping debt is estimated using net tax capacity. Applicable percentages were estimated by determining the portion of net tax capacity that is within the City's boundaries and dividing it by total net tax capacity for each entity. (2) Excludes general obligation debt supported by wastewater revenues and housing rental payments. Includes certificates of participation. 151 Page 239 of 508 CITY OF SHAKOPEE LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years 2010 2011 2012 2013 Market Value (Taxable) $ 3,710,814,056 $ 3,570,069,500 $ 3,347,179,800 $ 3,064,695,700 Debt Limit - Percent of Market Value (Note A) Amount of Debt Applicable to Debt Limit: G.O. Bonds Available in Debt Service Funds Total Debt Applicable to Debt Limit 107,102,085 107,102,085 6,340,000 (786,306) 5,905,000 (826,957) 5,553,694 5,078,043 100,415,394 91,940,871 10,325,000 (4,974,768) 9,865,000 (4,836,597) 5,350,232 5,028,403 Legal Debt Margin $ 101,548,391 $ 102,024,042 $ 95,065,162 $ 86,912,468 NOTE (A): M.S.A. Section 475.53 (Limit on Net Debt) Subdivision 1. Generally, except of otherwise provided in Sections 475.51 to 475.75, no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 3% of the market value of taxable property in the municipality." NOTE (B): M.S.A. Section 475.51 Definitions: Subdivision 4. "Net debt" means the amount remaining after deduction from its gross debt the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. (2) Warrants or orders having no definite or fixed maturity. (3) Obligations payable wholly from the income of revenue -producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligation issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems and on any combination thereof or for any other public convenience from which a revenue is or may be derived. (6) Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this subdivision. M.S.A. Section 469.178, subdivision 1. (tax increment bonds) "... The bonds are not included for purposes of computing the net debt of any municipality." 152 Page 240 of 508 Table 12 2014 2015 2016 2017 2018 2019 $ 3,206,518,700 $ 3,629,757,200 $ 3,844,106,800 $ 4,034,313,200 $ 4,342,662,600 $ 4,613,605,800 96,195,561 108,892,716 115,323,204 121,029, 396 130,279,878 138,408,174 9,390,000 5,100,000 33,935,000 35,284,168 33,677,746 36,226,324 (4,833,096) (1,511,502) (2,443,111) (2,976,808) (2,795,488) (2,972,459) 4,556,904 3,588,498 31,491,889 32,307,360 30,882,258 33,253,865 $ 91,638,657 $ 105,304,218 $ 83,831,315 $ 88,722,036 $ 99,397,620 $ 105,154,309 153 Page 241 of 508 CITY OF SHAKOPEE Table 13 PLEDGED REVENUE COVERAGE Last Ten Fiscal Years Utility Bonds Utility Less: Net Fiscal Service Operating Available Debt Service Year Charges Expense Revenue Principal Interest Coverage 2010 $ 45,586,795 $ 36,375,440 $ 9,211,355 $ 765,000 $ 939,426 5.40 2011 2012 2013 2014 2015 2016 2017 2018 2019 1. Operating expense excludes depreciation and amortization. Note: In 2010 the SPUC Funds, Water and Electric Enterprise Funds,were reported as a blended component unit of the City. In 2011, SPUC Funds have been presented as discretely presented component units as it no longer met the criteria for blending. 154 Page 242 of 508 CITY OF SHAKOPEE Table 14 DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Calendar Years Fiscal School Unemployment Total Per Capita Personal Year Population (1) Enrollment (2) Rate (3) Employment Income (4) Income (5) 2010 37,076 7,814 6.5% 19,933 $ 31,700 $ 1,175,309,200 2011 37,721 8,115 5.2% 20,449 32,017 1,207,713,257 2012 37,841 8,392 4.6% 20,926 31,628 1,196,835,148 2013 38,120 8,452 3.8% 21,233 31,829 1,213,321,480 2014 39,144 8,698 3.6% 21,439 32,174 1,259,419,056 2015 39,523 8,939 3.0% 21,877 31,965 1,263,352,695 2016 40,254 8,927 3.2% 21,571 32,704 1,316,466,816 2017 41,143 9,036 2.6% 27,156 32,662 1,343,812,666 2018 41,519 8,636 2.4% 25,930 33,300 1,382,582,700 2019 41,506 8,807 2.8% 27,427 33,631 1,395,888,286 Source: 1. 2010 is the official census figure. 2011-2017 are the City's estimate. 2018-2019 are Met Council estimates. 2. Shakopee School District, SACS, Bloomington Lutheran 3. Minnesota Department of Employment and Economic Development 4. Census estimates 5. Per capita income times population 155 Page 243 of 508 (THIS PAGE LEFT BLANK INTENTIONALLY) 156 Page 244 of 508 CITY OF SHAKOPEE PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2019 2010 Table 15 Total Total City City Taxpayer Type of Business Employees Rank Employment Employees Rank Employment Valley Fair Amusement Park 1,584 1 7.24% 1,672 1 8.39% Amazon Distribution 1,500 2 6.86% Emerson Manufacturing 1,225 3 5.60% School District No. 720 Education 1,139 4 5.21% 1,219 2 6.11% St. Francis RMC Health Care 928 5 4.24% 902 5 4.53% Canterbury Park Horse Racing 867 6 3.96% 951 4 4.77% Entrust Datacard Manufacturing 809 7 3.70% Imagine Print Solutions Printing 740 8 3.38% 320 8 1.61% Seagate Manufacturing/Research 680 9 3.11% 1,200 3 6.02% Scott County Government 662 10 3.03% 758 6 3.80% Walmart Retail 400 7 2.01% Anchor Glass Manufacturing 275 9 1.38% TORO Manufacturing 255 10 1.28% Total Employment 10,134 46.33% 7,421 39.90% Source: Minnesota Department of Employment and Economic Development. 27,427 19,933 Page 245 of 508 157 CITY OF SHAKOPEE FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years 2010 2011 2012 2013 2014 General Government: Administration 5 5 6 7 8 City Clerk 4 4 3 3 3 Finance 3 3 4 4 4 Planning 5 5 5 5 5 Facilities Maintenance 6 6 4 4 4 Information Technology 2 2 2 2 2 Public Safety: Police: Licensed 47 50 49 47 47 Other 6 6 7 10 10 Fire: Full time 3 3 3 7 7 Paid On Call 44 42 44 44 43 Building Inspection 5 5 5 5 5 Public Works: Engineering 7 7 7 7 8 Street 13 13 13 13 14 Shop 3 4 3 3 4 Park and Recreation: Park Maintenance 8 8 8 8 9 Natural Resources - - 1 2 Recreation 7 7 7 7 7 Economic Development: EDA - - 1 1 Total 168 170 170 178 183 Source: City departments Page 246 of 508 158 2015 2016 2017 2018 2019 6 8 9 9 9 3 3 3 3 3 4 4 4 4 4 5 5 6 6 5 3 3 3 2 2 4 5 5 5 5 48 48 51 51 51 11 11 12 12 12 7 7 8 8 8 43 43 46 46 46 4 5 5 5 7 8 8 9 8 9 14 14 14 15 15 4 4 4 4 4 9 9 9 9 9 2 1 - - - 9 12 15 14 16 185 191 204 202 206 Table 16 Page 247 of 508 159 CITY OF SHAKOPEE OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years General Government Planning Number of Case Files Number of Plats Filed Number of Acres Platted 2010 2011 2012 2013 33 1 6 24 47 49 2 5 8 68 89 99 Public Safety Police Arrests 1,962 1,666 1,798 1,387 Citations 5,528 5,647 5,636 5,656 Calls for Service 17,831 17,852 18,349 17,822 Fire Calls for Service 557 600 617 584 Building Inspection Building Permits Issued 1,083 1,881 1,413 1,066 Number of Inspections 8,048 8,004 8,191 7,408 Single Family Homes Permitted 160 118 97 66 Public Works Street Miles of Roadway 154 154 154 154 Park and Recreation Park Maintenance Acres Maintained 933 933 933 933 Recreation Program Participants 13,001 13,157 13,104 15,854 Community Center Members 873 955 998 1,043 Community Center Admissions 117,336 120,667 128,929 140,778 Ice Rental Hours 1,429 1,354 1,420 1,446 Source: City departments Page 248 of 508 160 Table 17 2014 2015 2016 2017 2018 2019 45 75 50 59 72 83 7 9 7 10 11 9 68 335 79 169 161 131 1,524 2,121 1,543 1,338 1,741 1,683 4,934 5,510 4,396 3,569 3,470 3,391 17,846 19,357 21,117 21,632 21,916 22,910 730 745 792 808 914 957 1,519 1,054 1,030 1,145 1,274 1,158 7,854 6,835 6,659 6,301 8,350 9,507 61 50 45 33 76 140 156 156 156 156 156.5 161.2 1,015 1,402 1,402 1,402 1,402 1,402 18,540 19,788 23,700 41,289 25,559 20,811 2,116 2,024 2,463 6,231 5,416 5,311 124,124 113,772 114,158 200,297 251,223 267,576 1,477 1,589 1,773 2,870 3,158 3,410 161 Page 249 of 508 CITY OF SHAKOPEE CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2010 2011 2012 2013 2014 Police: Stations 1 1 1 1 1 Patrol Zones 4 4 4 4 4 Patrol Units 15 15 15 15 15 Fire Stations 2 2 2 2 2 Street: Miles of Roadway 154 154 154 154 156 Traffic Signals 27 27 29 29 30 Parks: Acres 933 933 933 933 1,015 Ball Fields 52 54 56 56 56 Playgrounds 24 26 26 26 27 Source: City departments Page 250 of 508 162 Table 18 2015 2016 2017 2018 2019 1 1 1 1 1 4 4 3 3 3 15 15 16 16 16 2 2 2 2 2 156 156 156 156.5 161.2 30 30 30 30 30 1,402 1,402 1,402 1,402 1,402 56 56 57 57 57 27 27 27 27 27 163 Page 251 of 508 ABDO LICK & MEYERS (,,'eiii, ecl .Pub frr; 1c ountunts t BrutMtnnts City of Shakopee Shakopee, Minnesota For the Year Ended December 31, 2019 Page 252 of 508 1ople .Process, mN))yryr yliwRBYPJY')PW)JY)1°lY')PW)JY)1°lY')PW)JY)1°lY')P ILY)1°lY')PW)JY)1°lY')PW)JY)1°lY')PW)JY)1°lY')PW)JY)1°lY')PW)JYRNI (,erl,Ifr 14arats May 18, 2020 Management, Honorable Mayor and City Council City of Shakopee, Minnesota We have audited the financial statements the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee, (the City) for the year ended December 31, 2019. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 15, 2019. Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America and Government Auditing Standards As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting (internal control) of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 5201 Eden Avenue Suite 250 Edina, MN 55436 952.835 9090 I Fax 952.835.32 2 Page 253 of 508 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. We noted no instances of noncompliance or other matter that are required to be reported under Government Auditing Standards or Minnesota Statutes. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City changed accounting policies during 2019 related to accounting and financial reporting for fiduciary funds (GASB 84). We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were depreciation on capital assets, allocation of payroll, other postemployment benefits payable and the liability for the City's pension. • Management's estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. • Management's estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active employees, life expectancy, turnover, and healthcare cost trend rate. • Management's estimate of its pension liability is based on several factors including, but not limited to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon retirement. We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Management Representations We have requested certain representations from management that are included in the management representation letter dated May 18, 2020. ( 3 Page 254 of 508 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management's Discussion and Analysis, the Schedules of Employer's Share of the Net Pension Liability, the Schedules of Employer's Contributions, Schedule of Changes in the Net Pension Liability and Related Ratios and the Schedule of Funding Progress for Other Post -Employment Benefits Plan), which is information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information (combining and individual fund financial statements and schedules), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory or statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on them. ( 4 Page 255 of 508 Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future -City financial statements: (1) GASB Statement No. 87 - Leases Summary The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or, if applied to earlier periods, the beginning of the earliest period restated). However, lessors should not restate the assets underlying their existing sales -type or direct financing leases. Any residual assets for those leases become the carrying values of the underlying assets. How the Changes in This Statement Will Improve Accounting and Financial Reporting This Statement will increase the usefulness of governments' financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision - usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government's leasing arrangements. GASB Statement No. 88 - Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements Summary The primary objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. This Statement defines debt for purposes of disclosure in notes to financial statements as a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation is established. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance -related consequences, significant termination events with finance -related consequences, and significant subjective acceleration clauses. For notes to financial statements related to debt, this Statement also requires that existing and additional information be provided for direct borrowings and direct placements of debt separately from other debt. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after June 15, 2018. Earlier application is encouraged. ( 5 Page 256 of 508 Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not consistently provided. In addition, information about resources to liquidate debt and the risks associated with changes in terms associated with debt will be disclosed. As a result, users will have better information to understand the effects of debt on a government's future resource flows. GASB Statement No. 89 - Accounting for Interest Cost Incurred before the End of a Construction Period Summary The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5-22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business -type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. The requirements of this Statement should be applied prospectively. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with more relevant information about capital assets and the cost of borrowing for a reporting period. The resulting information also will enhance the comparability of information about capital assets and the cost of borrowing for a reporting period for both governmental activities and business -type activities. GASB Statement No. 90 - Majority Equity Interests Summary The primary objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government's holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. For all other holdings of a majority equity interest in a legally separate organization, a government should report the legally separate organization as a component unit, and the government or fund that holds the equity interest should report an asset related to the majority equity interest using the equity method. This Statement establishes that ownership of a majority equity interest in a legally separate organization 6 Page 257 of 508 Future Accounting Standard Changes (Continued) results in the government being financially accountable for the legally separate organization and, therefore, the government should report that organization as a component unit. This Statement also requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Transactions presented in flows statements of the component unit in that circumstance should include only transactions that occurred subsequent to the acquisition. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2018. Earlier application is encouraged. The requirements should be applied retroactively, except for the provisions related to (1) reporting a majority equity interest in a component unit and (2) reporting a component unit if the government acquires a 100 percent equity interest. Those provisions should be applied on a prospective basis. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information related to presentation of majority equity interests in legally separate organizations that previously was reported inconsistently. In addition, requiring reporting of information about component units if the government acquires a 100 percent equity interest provides information about the cost of services to be provided by the component unit in relation to the consideration provided to acquire the component unit. (1) Note. From GASB Pronouncements Summaries. Copyright 2019 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. * Restriction on Use * * This communication is intended solely for the information and use of the City Council, management and the Minnesota Office of the State Auditor and is not intended and should not be used by anyone other than those specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. ,uQ ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota May 18, 2020 ( 7 Page 258 of 508 City of Shakopee Shakopee, Minnesota For the Year Ended December 31, 2019 ABDO SICK & f'�ddir /1.ccounla! Is d Cortsrilrart s oornrmorprl°9UrrPrJlMorrPrPr)rPrAr)r)WPl°rs)rmr)r)WPl°rfornrfOr)PJ"POIRP Page 259 of 508 pie 114'11711(i )cr., City of Shakopee, Minnesota Other Required Reports Table of Contents For the Year Ended December 31, 2019 Other Required Reports Independent Auditor's Report on Minnesota Legal Compliance Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Page No. 3 4 2 Page 260 of 508 (,erri'r14- INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Shakopee, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States the financial statements of the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee, Minnesota (the City) as of and for the year ended December 31, 2019, and the related notes to the financial statements, and have issued our report thereon dated May 18, 2020. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. This report is intended solely for the information and use of those charged with governance and management of t City and the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota May 18, 2020 5201 Eden Avenue Suite 250 Edina, MN 55436 952.835 9090 I Fax 952.835.32 3 Page 261 of 508 (,erri'r14- INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council City of Shakopee, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee, Minnesota (the City), as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 18, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 4 Page 262 of 508 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Lti' ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota May 18, 2020 ( 5 Page 263 of 508 ---------------------------- I11I11111V01NUNuNuN00N00f II IIIV@��N��N4N�NuN��N�Ni�Ni N11 VIIIIV94N99N99N'I'IN'I'IN'I'IN'I'I?1? 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Z3 z Uage 279 of 508 U W C � N N 0 0 Tax Rates O d co IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII0,2 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII O IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII o N 0 O O O O O d d d d O 0 0 V CO N Taxes Per Capita Class 2 Cities 0 0 r N 1) 0 PEje 280 of 508 O 64 ���������������������������������������������������������������������������������������������������������������������������������(1(IIco ffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffi N lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll O EA O 64 O 64 O i» Q Q Z Z OLO O ER 64 N 0) LO 69- 64 Class 2 Cities Cities in Scott County LO 64 =City of Shakopee 40, U L a// o Q Q z z EFT ��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIfffffffffffffffffffffffffffffff O O O O O O O 0 O 0 O 0 O COCONN H3 EA EA EA EA H4 U3 CT) LO CA C.0 EA N ER EA O N V 0)) N 60- K3 Class 2 Cities Cities in Scott County 0 0 a) r O r CO• CI Lrr Q E © N 0 0 V V � t N CO a. CU PAEje 281 of 508 LO COEA- oa fA City of Shakopee 0 c L a cc en co �n +- i -c ai • W Q K 3 W 0 aH Ct 0 0 0 O O O In d Lei co co N ///////////////////%JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJI co 00 a0 O O CO CO 111111111111111111111111 n O N O O M N W O O m 1 O N N CO 6) N • 0 0 0 0 O O O O O d lfj d !) O N Class 2 Cities Cities in Scott County 0 01. — City of Shakopee Current Expenditures Per Capita rn Q Q C) N Z Z 0O — 0) CO - CO CT) C. CO CO CV 64 64 EA C0 - O (00 L c0 N 64 EA - CO 00 O 00 cD CO L 6) N EA Ef) fA O O 0 O 0 0 O O 00 I- CO D• CO CV EA 64 64 69 64 69 64 64 Class 2 Cities cis E�y WCu) e /� r \ V Lrr Q E © N Iii0 0 V V >It N N a. V Pdige 282 of 508 Capital Expenditures Per Capita 0 0 0 0 0 c=> 0 0 0 0 0 0 0 0 0 0 0 0 0) CO CO LO "cl- CO N ER En- Ea ta E9- E9- En- EA- En- - CO Li. E o u (▪ 3 lit • -1 (1) Pdige 283 of 508 cr) co — < < .— a) QZZNI c o E 0 •• a) c13 CY) r-- 171 CD N— N CO 'Cr N Ea- E9- En- 0 (.0 0) co co 0, c, N •Ti• r-- N N 0 -C C -0 Z) -0 CO CO CO Sigr c D c N .c) -c:s a) 4.1 69- tfi 6L• • 7• 15ZZ'ci) 2 22 • tr5 (7) -65 0 ▪ L.r) OD CC) CO ▪ mt N CO O (A- O a-) EEEE Ct. (5 c7, 8 8 o co co — — .1) • co 2 2 -o act c > N ) CO s) En- En' El) C • CD CD CD CD cr) c.» • "c) Cc) aci -23 0 C\INNN O 2 a.) ..,0000 -CO w ;, Page 284 of 508 9.A.2. Shakopee City Council June 2, 2020 FROM: Nate Reinhardt, Finance Director TO: Mayor and Council Members Subject: Sale of General Obligation Tax Increment Revenue Bonds, Series 2020A, in the Original Aggregate Principal Amount of $8,165,000. Policy/Action Requested: Adopt Resolution No. 2020-072, a resolution awarding the sale of General Obligation Tax Increment Revenue Bonds, Series 2020A, in the original aggregate principal amount of $8,165,000: fixing their form and specifications; directing their execution and delivery; providing for their payment, and authorizing the execution of documents in connection therewidth. Recommendation: Approve Resolution No. 2020-072 Discussion: On May 5, 2020, the City Council adopted Resolution No. R2020-065, setting the sale of $8,165,000 of General Obligation Tax Increment Revenue Bonds. Bids will be opened at 10:00am at the offices of BakerTilly. The par amount of the the bonds will be adjusted at the time of the sale to reflect any premium or discount received. The bond will be used to cover the costs associated with Unbridled Avenue as part of the Canterbury Commons area. The city is completing a portion of the public infrastructure improvements within the redevelopment district and will use the bond proceeds to reimburse itself for costs incurred to date and future costs to complete construction. The bonds will be a general obligation of the city, secured by its full faith and credit and taxing power. However, tax increment revenues from the Canterbury TIF district are estimated to cover 117% of debt service. Budget Impact: Page 285 of 508 The additional debt service is anticipated to be fully covered by tax increment revenue from the Canterbury TIF district. ATTACHMENTS: Resolution 2020-072 - Sale of GO TIF Bonds 2020A Amended TIF Pledge Agreement Page 286 of 508 Extract of Minutes of Meeting of the City Council of the City of Shakopee, Scott County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Shakopee, Minnesota, was duly held telephone or other electronic means on Tuesday, June 2, 2020, commencing at 7:00 P.M. The meeting was held in accordance with Minnesota Statutes, Section 13D.021, and pursuant to a resolution providing for electronic meetings adopted by the City Council on March 17, 2020. The following Councilors were present: and the following were absent: * * * The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's General Obligation Tax Increment Revenue Bonds, Series 2020A, to be issued in the original aggregate principal amount of $8,165,000. The City Administrator presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal of the Bonds. The proposals are attached hereto as EXHIBIT A. After due consideration of the proposals, Councilor then introduced the following resolution and moved its adoption: Page 287 of 508 RESOLUTION NO. R2020- A RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION TAX INCREMENT REVENUE BONDS, SERIES 2020A, IN THE ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $8,165,000; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; PROVIDING FOR THEIR PAYMENT; AND AUTHORIZING THE EXECUTION OF DOCUMENTS IN CONNECTION THEREWITH BE IT RESOLVED By the City Council (the "City Council") of the City of Shakopee, Minnesota (the "City"), as follows: Section 1. Sale of Bonds. 1.01. Authorization. (a) The City has established and the Economic Development Authority for the City of Shakopee, Minnesota (the "Authority") administers Tax Increment Financing (Redevelopment) District No. 18 (the "TIF District") within the Minnesota River Valley Housing and Redevelopment Project No. 1 (the "Redevelopment Project"), pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the "TIF Act"). The Authority and the City have approved a Tax Increment Financing Plan for the TIF District. The TIF District was created to facilitate redevelopment to create additional market rate rental housing, create new commercial uses, and improve the tax base in the City. The Authority and the City have expended funds within the Redevelopment Project for the costs related to public infrastructure (the "Project"). (b) On October 17, 2019, the City issued its General Obligation Tax Increment Revenue Bonds, Series 2019A (the "Series 2019A Bonds"), in the original aggregate principal amount of $4,220,000, to reimburse costs of the Project related to public improvements made to 12t'' Avenue in the City and to pay the costs of issuing the Series 2019A Bonds. (c) The City and the Authority entered into a Tax Increment Pledge Agreement, dated October 17, 2019 (the "Original Pledge Agreement"), relating to the payment of principal of and interest on the Series 2019A Bonds and providing for the pledge of tax increment revenues generated from the TIF District to secure the payment of principal of, premium, if any, and interest on the Series 2019A Bonds. (d) Pursuant to a resolution adopted by the City Council on May 5, 2020, the City Council authorized the issuance of the City's General Obligation Tax Increment Revenue Bonds, Series 2020A (the "Bonds"),in the original aggregate principal amount of $8,165,000, pursuant to Minnesota Statutes, Chapter 475, as amended (the "Municipal Debt Act"), and the TIF Act. The proceeds of the Bonds will be used to reimburse additional costs of the Project, including public improvements to Unbridled Avenue in the City, and the costs of issuing the Bonds (the "Additional Project Costs"). 1.02. Award to the Purchaser and Interest Rates. The proposal of (the "Purchaser") to purchase the Bonds of the City is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $ (par 2 Page 288 of 508 amount of $8,165,000, [plus original issue premium of $ ,] [less original issue discount of $ ,] less underwriter's discount of $ ), plus accrued interest, if any, to date of delivery for Bonds bearing interest as follows: Year Interest Rate Year Interest Rate 2023 2024 2025 2026 2027 2028 2029 2030 True interest cost: 2031 2032 2033 2034 2035 2036 2037 % 1.03. Purchase Contract. The sum of $ , being the amount proposed by the Purchaser in excess of $8,171,958, shall be credited to the Debt Service Fund hereinafter created or applied to the Additional Project Costs, as determined by the Finance Director in consultation with the City's municipal advisor. The Finance Director is directed to deposit the good faith check or deposit of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith deposits of the unsuccessful proposers. The Mayor and City Administrator are directed to execute a contract with the Purchaser on behalf of the City. 1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to the Municipal Debt Act and the TIT Act (collectively, the "Act"), in the total principal amount of $8,165,000, originally dated July 2, 2020, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: Year Amount Year Amount 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 1.05. Optional Redemption. The City may elect on February 1, 2029, and on any day thereafter to prepay Bonds due on or after February 1, 2030. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 3 Page 289 of 508 [1.06. Mandatory Redemption; Term Bonds. TO BE COMPLETED 1F TERM BONDS REQUESTED BY THE PURCHASER: The Bonds maturing on February 1, 20 and February 1, 20 and shall hereinafter be referred to collectively as the "Tenn Bonds." The principal amount of the Term Bond subject to mandatory sinking fund redemption on any date may be reduced through earlier optional redemptions, with any partial redemptions of the Term Bonds credited against future mandatory sinking fund redemptions of such Term Bonds in such order as the City shall determine. The Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part at par plus accrued interest on February 1 of the following years and in the principal amounts as follows:] Sinking Fund Installment Date February 1, 20 Tenn Bond Principal Amount * Maturity February 1, 20 Term Bond Principal Amount * Maturity Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2021, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. 4 Page 290 of 508 (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the 5 Page 291 of 508 redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City U.S. Bank National Association, Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of the City Council, the Finance Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication, and Delivery. The Bonds will be prepared under the direction of the Finance Director and executed on behalf of the City by the signatures of the Mayor and the City Administrator, provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been so prepared, executed and authenticated, the Finance Director will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. Section 3. Form of Bond. 3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the form attached hereto as EXHIBIT B. 3.02. Approving Legal Opinion. The City Administrator is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, and to cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. Debt Service Fund. The Bonds will be payable from the General Obligation Tax Increment Revenue Bonds, Series 2020A Debt Service Fund (the "Debt Service Fund") hereby created. The Debt Service Fund shall be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. Tax increment 6 Page 292 of 508 revenues resulting from increases in taxable valuation of real property in the TIF District (the "Tax Increment Revenues") received by the Authority from the TIF District are pledged to the Debt Service Fund pursuant to the First Amendment to Pledge Agreement (hereinafter defined). There is also appropriated to the Debt Service Fund (i) amounts over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof; and (ii) capitalized interest financed from Bond proceeds, if any. 4.02. Additional Project Costs. Proceeds of the Bonds will be used by the City to finance the Additional Project Costs, including the reimbursement of costs previously incurred by the City. 4.03. First Amendment to Pledge Agreement. A First Amendment to Tax Increment Pledge Agreement between the City and the Authority, to be dated the date of issuance and delivery of the Bonds (the "First Amendment to Pledge Agreement"), is hereby approved and shall be executed by the Mayor and the City Administrator in substantially the form now on file with the City, with such additions, deletions, and other changes as are approved by the City Administrator. The First Amendment to Pledge Agreement is to be executed and delivered in order to satisfy the requirements of Section 469.178, subdivision 2 of the TIF Act and Sections 475.58, subdivision 1 and 475.61, subdivision 1 of the Municipal Debt Act, and amends the Original Pledge Agreement. The First Amendment to Pledge Agreement creates rights in the City and the Authority but is not intended to create duties or obligations of the City or the Authority to any other persons (including the beneficial or registered owners of the Bonds) with respect to the Tax Increment Revenues or other revenues described or referenced in the First Amendment to Pledge Agreement, except to the extent required by applicable law, and is not intended to create rights in or claims by any other persons (including the beneficial or registered owners of the Bonds) with respect to the Tax Increment Revenues or other revenues described or referenced in the First Amendment to Pledge Agreement, except to the extent required by applicable law. 4.04. Tax Increment Revenues. The estimated amount of the Tax Increment Revenues available to pay debt service on the Bonds exceeds twenty percent (20%) of the Additional Project Costs related to the TIF District. The total Additional Project Costs are estimated to be at least equal to the amount of the Bonds. 4.05. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith, credit, and taxing powers of the City are irrevocably pledged. If a payment of principal of or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of Tax Increment Revenues when received. 4.06. Debt Service Coverage. It is hereby determined that the estimated collection of the Tax Increment Revenues for the payment of principal of and interest on the Bonds will produce at least five percent (5%) in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.07. Certificate of County Auditor as to Registration. The City Administrator is authorized and directed to file a certified copy of this resolution with the County Auditor of Scott County, Minnesota and to obtain the certificate required by Section 475.63 of the Municipal Debt Act. 7 Page 293 of 508 Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, the City Administrator, and the Finance Director are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.03. Closing Certificates. The Mayor, the City Administrator, and the Finance Director are hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, the City Administrator, and the Finance Director shall also execute and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a certificate as to payment for and delivery of the Bonds. 5.04. Electronic Signatures. The electronic signature of the Mayor, the City Administrator, the City Clerk, and/or the Finance Director to this resolution, to the First Amendment to Pledge Agreement, and to any certificate authorized to be executed hereunder shall be as valid as an original signature of such party and shall be effective to bind the City thereto. For purposes hereof, (i) "electronic signature" means a manually signed original signature that is then transmitted by electronic means; and (ii) "transmitted by electronic means" means sent in the form of a facsimile or sent via the internet as a portable document format ("pdf') or other replicating image attached to an electronic mail or internet message. Section 6. Tax Covenant. 6.01. Tax -Exempt Bonds. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. To that end, the City will comply with all requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments and limitations on amounts invested at a yield greater than the yield on the Bonds. 6.02. Rebate. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on 8 Page 294 of 508 amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States. 6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 6.04. Qualified Tax -Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2020 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2020 have been designated for purposes of Section 265(b)(3) of the Code. 6.05. Procedural Requirements. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book -Entry System; Limited Obligation of City. 7.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities of the Bonds as described in Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 7.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the "Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Registrar) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of 9 Page 295 of 508 principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Administrator of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co." will refer to such new nominee of DTC; and upon receipt of such a notice, the City Administrator will promptly deliver a copy of the same to the Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book -Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the teens thereof. 8.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, 10 Page 296 of 508 including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. Section 9. Defeasance. When all Bonds and all interest thereon have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. (The remainder of this page is intentionally left blank.) 11 Page 297 of 508 The motion for the adoption of the foregoing resolution was duly seconded by Councilor , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 12 Page 298 of 508 Approved by the City Council of the City of Shakopee this 2"d day of June, 2020. ATTEST: City Clerk Mayor 13 Page 299 of 508 EXHIBIT A PROPOSALS A-1 Page 300 of 508 EXHIBIT B FORM OF BOND No. R- $ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF SCOTT CITY OF SHAKOPEE GENERAL OBLIGATION TAX INCREMENT REVENUE BOND SERIES 2020A Date of Rate Maturity Original Issue February 1, 20 July 2, 2020 Registered Owner: Cede & Co. CUSIP The City of Shakopee, Minnesota, a duly organized and existing municipal corporation in Scott County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above (calculated on the basis of a 360 day year of twelve 30 day months), payable February 1 and August 1 in each year, commencing February 1, 2021, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2029, and on any day thereafter to prepay Bonds due on or after February 1, 2030. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $8,165,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 2, 2020 (the "Resolution"), for the purpose of providing money to aid in financing additional public redevelopment costs of projects in Tax Increment Financing (Redevelopment) District No. 18 (the "TIF District") within the Minnesota River Valley Housing B-1 Page 301 of 508 and Redevelopment Project No. 1 in the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 through 469.1794, as amended, and Minnesota Statutes, Chapter 475, as amended. The principal hereof and interest hereon are payable primarily from tax increments resulting in increases in the taxable value of real property in the TTF District, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The Economic Development Authority for the City of Shakopee, Minnesota (the "Authority") has pledged the tax increments from the T1F District to the City for payment of the principal of and interest on the Bonds, pursuant to the terms of a First Amendment to Tax Increment Pledge Agreement of even date herewith between the City and the Authority, which amends the Tax Increment Pledge Agreement, dated October 17, 2019, between the City and the Authority. The full faith and credit of the City is irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in tax increment revenues pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. 1T IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. B-2 Page 302 of 508 IN WITNESS WHEREOF, the City of Shakopee, Scott County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below. Dated: July 2, 2020 CITY OF SHAKOPEE, MINNESOTA (Facsimile) (Facsimile) Mayor City Administrator CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Authorized Representative ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants in common TEN ENT -- as tenants by entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common UNIF GIFT MIN ACT Custodian (Cust) (Minor) under Uniform Gifts or Transfers to Minors Act, State of Additional abbreviations may also be used though not in the above list. B-3 Page 303 of 508 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: Signature Guaranteed: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee B-4 Page 304 of 508 PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Signature of Registered Owner Officer of Registrar Cede & Co. Federal ID #13-2555119 B-5 Page 305 of 508 STATE OF MINNESOTA ) COUNTY OF SCOTT ) SS. CITY OF SHAKOPEE ) I, the undersigned, being the duly qualified and City Clerk of the City of Shakopee, Minnesota (the "City"), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on June 2, 2020, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of the City's General Obligation Tax Increment Revenue Bonds, Series 2020A, issued in the original aggregate principal amount of $8,165,000. WITNESS My hand officially as such City Clerk and the corporate seal of the City this day of , 2020. (SEAL) City Clerk City of Shakopee, Minnesota Page 306 of 508 STATE OF MINNESOTA COUNTY OF SCOTT CERTIFICATE OF COUNTY AUDITOR AS TO REGISTRATION WHERE NO AD VALOREM TAX LEVY 1, the undersigned County Auditor of Scott County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Shakopee, Minnesota (the "City") on June 2, 2020, relating to the City's General Obligation Tax Increment Revenue Bonds, Series 2020A, in the original aggregate principal amount of $8,165,000, dated July 2, 2020, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this day of , 2020. (SEAL) SH155-480 (JAE) 654890v1 COUNTY AUDITOR SCOTT COUNTY, MINNESOTA By: Its: Page 307 of 508 FIRST AMENDMENT TO TAX INCREMENT PLEDGE AGREEMENT between CITY OF SHAKOPEE, MINNESOTA and ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE, MINNESOTA THIS FIRST AMENDMENT TO TAX INCREMENT PLEDGE AGREEMENT is made and entered into on or as of the 2nd day of July, 2020 (the "First Amendment to Agreement"), between the City of Shakopee, Minnesota (the "City"), and the Economic Development Authority for the City of Shakopee, Minnesota (the "Authority"), and amends the Tax Increment Pledge Agreement, dated October 17, 2019 (the "Original Agreement"), between the City and the Authority. RECITALS WHEREAS, the City has established and the Authority administers Tax Increment Financing (Redevelopment) District No. 18 (the "T1F District") within the Minnesota River Valley Housing and Redevelopment Project No. 1 (the "Redevelopment Project"), pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the "TIF Act"), and the Authority and the City have approved a Tax Increment Financing Plan for the TIF District; and WHEREAS, pursuant to the authority conferred by Section 469.178 of the TIF Act and Minnesota Statutes, Chapter 475, as amended (collectively, the "Act"), and a resolution adopted by the City Council of the City on September 17, 2019 (the "Series 2019A Bond Resolution"), the City issued its General Obligation Tax Increment Revenue Bonds, Series 2019A (the "Series 2019A Bonds"), dated October 17, 2019, in the original aggregate principal amount of $4,220,000, to reimburse certain public redevelopment costs made to 12th Avenue in the City and to pay costs of issuing the Series 2019A Bonds; and WHEREAS, the City and the Authority entered into the Original Agreement, relating to the payment of principal of and interest on the Series 2019A Bonds and providing for the pledge of tax increment revenues generated from the TIF District to secure the payment of principal of, premium, if any, and interest on the Series 2019A Bonds; and WHEREAS, pursuant to the authority conferred by the Act and a resolution adopted by the City Council of the City on June 2, 2020 (the "Series 2020A Bond Resolution"), the City will issue its General Obligation Tax Increment Revenue Bonds, Series 2020A (the "Series 2020A Bonds"), in the original aggregate principal amount of $8,165,000, to reimburse additional public redevelopment costs incurred by the City in the Redevelopment Project, including public improvements to Unbridled Avenue in the City, and to pay the costs of issuance of the Bonds (the "Additional Project Costs"); and WHEREAS, pursuant to a resolution adopted by the Board of Commissioners of the Authority (the "Board") on June 2, 2020, the Authority has agreed to pledge tax increment revenues attributable to the TIF District to the City to secure the payment of principal of, premium, if any, and interest on the Series 2020A Bonds; and Page 308 of 508 WHEREAS, pursuant to Section 469.178, subdivision 2 of the TIF Act, any agreement to pledge tax increment revenues must be made by written agreement by and between the Authority and the City and must be filed with the County Auditor of Scott County, Minnesota (the "County"). NOW, THEREFORE, the City and the Authority mutually agree to the following: (1) The City will issue the Series 2020A Bonds in accordance with the Series 2020A Bond Resolution. (2) The proceeds from the sale of the Series 2020A Bonds will be used to finance the Additional Project Costs. (3) The Authority hereby pledges ninety percent (90%) of the tax increment revenues generated by the property in the TIF District and received by the Authority (the "Pledged Tax Increments") to the payment of principal of and interest on the Series 2020A Bonds, subject to the terms of the Original Agreement, as amended by this First Amendment to Agreement. At least three (3) business days prior to each debt service payment date for the Series 2020A Bonds, there shall be transferred from the account of the TIF District to the Debt Service Fund maintained by the City for the payment of the Series 2020A Bonds, an amount of Available Tax Increment (as defined below), which when taken together with taxes levied for such purposes in accordance with the Series 2020A Bond Resolution, if any, and amounts to be deposited in the Debt Service Fund for the Series 2020A Bonds, is equal to the principal of and interest on the Series 2020A Bonds to become due on the subject payment date. Any Available Tax Increment in excess of one hundred five percent (105%) of the principal and interest due with respect to the Series 2020A Bonds on any payment date may be retained by the Authority in the account for the TIF District and applied to any costs of the Project in accordance with law, including the payment of principal of and interest on the Series 2019A Bonds pursuant to the Original Agreement and the interfund loans (the "Interfund Loans") approved by Resolution No. E2018-002, adopted on February 7, 2018, and Resolution No. E2018-019, adopted on September 4, 2018 (together, the "Interfund Loan Resolution"). (4) Without regard to anything in the Original Agreement, as amended by this First Amendment to Agreement, to the contrary, Available Tax Increment may be pledged (at the Authority's option on a parity, superior or subordinate basis) to pay principal of and interest on the Series 2020A Bonds and any other obligations issued by the City, including the payment of principal of, premium, if any, and interest on the Series 2019A Bonds pursuant to the Series 2019A Bond Resolution, by the Authority, including the payment of principal of and interest on the Interfund Loan pursuant to the Interfund Loan Resolution, or by any other public body to finance public redevelopment costs paid or incurred by the Authority in the Project or any other pledge permitted by law. The Authority reserves the right to release all or any portion of Available Tax Increment from the pledge under the Original Agreement, as amended by this First Amendment to Agreement (including without limitation the release of Available Tax Increment from any specific parcel within the TIF District) to the extent permitted by law, provided that in no event may the Authority reduce the pledge such that Available Tax Increment is reasonably expected to pay less than twenty percent (20%) of principal of and interest on the Series 2019A Bonds and the Series 2020A Bonds. 2 Page 309 of 508 (5) For purposes of the Original Agreement, as amended by this First Amendment to Agreement, "Available Tax Increment" means, on each February 1 and August 1 (the "Payment Dates") during the term of the Series 2019A Bonds and the Series 2020A Bonds, ninety percent (90%) of the tax increment attributable to the property in the TIF District which is paid to the Authority by the County in the six (6) months preceding the Payment Date. (6) The First Amendment to Agreement supplements any prior agreements between the City and the Authority with respect to pledges of Available Tax Increment, including but not limited to the Original Agreement. (7) An executed copy of this First Amendment to Agreement shall be filed with the County Auditor of the County pursuant to Section 469.178, subdivision 2 of the TIF Act. (The remainder of this page is intentionally left blank.) 3 Page 310 of 508 IN WITNESS WHEREOF, the City and the Authority have caused this First Amendment to Tax Increment Pledge Agreement to be duly executed on their behalf as of the date and year first written above. CITY OF SHAKOPEE, MINNESOTA By Its Mayor By Its City Administrator S-1 Page 311 of 508 Execution page of the Authority to the First Amendment to Tax Increment Pledge Agreement, dated as of the date and year first written above. ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE, MINNESOTA By Its President By Its Executive Director S-2 Page 312 of 508 STATE OF MINNESOTA COUNTY OF SCOTT CERTIFICATE OF COUNTY AUDITOR AS TO FIRST AMENDMENT TO TAX INCREMENT PLEDGE AGREEMENT T, the undersigned County Auditor of Scott County, Minnesota, hereby certify that a First Amendment to Tax Increment Pledge Agreement, dated July 2, 2020, between the City of Shakopee, Minnesota (the "City") and the Economic Development Authority for the City of Shakopee, Minnesota, relating to the City's General Obligation Tax Increment Revenue Bonds, Series 2020A, in the original aggregate principal amount of $8,165,000, has been filed in my office. WITNESS my hand and official seal this day of , 2020. (SEAL) SH155-480 (JAE) 654904v1 COUNTY AUDITOR SCOTT COUNTY, MINNESOTA By: Its: Page 313 of 508 9.B.1. Shakopee City Council June 2, 2020 FROM: Mark Noble, Senior Planner TO: Mayor and Council Members Subject: Annexation of Shakopee Public Schools Property and Zoning to Rural Residential (RR) District Policy/Action Requested: Approve Resolution No. R2020-064, a Resolution annexing the property from Jackson Township pursuant to an existing orderly annexation agreement, and approved Ordinance No. 02020-004, an ordinance approving the zoning to Rural Residential Zone, and move its adoption. Recommendation: The Planning Commission recommended approval of the applicant's request by a 7-0 vote at their May 21, 2020 meeting. Discussion: Michael Redmond, Shakopee Public Schools Superintendent, has submitted an application requesting the annexation of an approximately 88-acre parcel located at the southwest corner of County Road 78 and County Road 79; and to zone the property as Rural Residential (RR) District. Mr. Redmond shared that the annexation into the City of Shakopee has a number of benefits for the school district in terms of both immediate uses and long term planning. The zoning is being done in conjunction with the annexation to avoid creating an un-zoned parcel of land within the City of Shakopee. Annexation Discussion Currently the property is used as an athletic field complex (approx. 14 sports fields for soccer, lacrosse, etc.). There are no immediate plans for any other use of this property, but the school district does reference this area as a future building site, so they are being proactive in having their property annexed from Jackson Township into the City of Page 314 of 508 Shakopee. There is one parcel to the west of this site that the district would like annexed as well; however, that parcel is surrounded by Jackson Township property and State Statute Chapter 414 states that condition renders that parcel ineligible for annexation at this time. The property, while presently located outside the city, is within the area identified in the approved Orderly Annexation Agreement (OAA) between the City and Jackson Township (attached). The requirement for consideration of annexation states that for a property owner initiated annexation the subject property needs to abut with Shakopee's municipal boundary and that shared border needs to be at least 50 lineal feet. The subject property meets this requirement as its entire east boundary line is adjacent to City of Shakopee land. Current zoning of the property is covered by the Scott County Zoning ordinance and per the annexation process, this zoning designation remains until changed and approved by the City. The parcel is currently zoned Urban Expansion Reserve (UER); the zoning will align the parcel with an appropriate City zoning designation with the use as an athletic field complex consistent with both that zoning and the guiding. Staff did receive a letter of objection submitted on behalf of Jackson Township by Timothy J. Keane. That letter is attached to this report. Staff have reviewed Mr. Keane's letter, but believe that the application request is consistent with the OAA, highlighted by the following sections: • Page 5, Section II, #4. (Property owner petition) • Page 5, Section II, #6. (2nd sentence & the last two sentences, particularly the last sentence as it applies to the language on page 8, #9) • Page 8, Section II, #9. (reference to City -initiated annexation). This request was not City initiated. Jackson Township in the past also objected to the Shakopee Veterinary Clinic annexation, but that objection was reviewed and dismissed by the State Administrative Law Judge, stating that the request was valid as the property was deemed contiguous to City of Shakopee and was submitted by the property owner, consistent with the adopted Orderly Annexation Agreement. Staff, the applicant and outside agencies have spent time reviewing this submittal, and there do not appear to be any significant issues with this annexation/zoning request. The applicant is directed to contact City Engineering staff regarding improvements/documents that should be provided as part of this annexation (see attached City Engineering Memo dated April 29, 2020), and contact SPUC should there be a need for municipal water service in the future for this site. Page 315 of 508 Zoning Considerations The City Council may grant a zoning ordinance amendment subject to the condition that the publishing of the draft ordinance is contingent on the Minnesota Office of Administrative Hearings approval of the annexation. Budget Impact: N/A ATTACHMENTS: • Resolution No. R2020-064 o Ordinance No. 02020-004 • Site Survey o Legal Description o Site Aerial • Applicant Narrative • Engineering Memo o SPUC Memo o Keane Letter of Objection • Orderly Annexation Agreement Page 316 of 508 RESOLUTION NO. R2020-064 A RESOLUTION ANNEXING PROPERTY FROM JACKSON TOWNSHIP PURSUANT TO AN EXISTING ORDERLY ANNEXATION AGREEMENT WHEREAS, the City of Shakopee ("City") and Jackson Township ("Town") entered into a "Joint Resolution for Orderly Annexation between the Town of Jackson & the City of Shakopee", that was filed with the Minnesota Municipal Board on October 11, 2002, accepted by the Municipal Board on November 8, 2002, and which was amended dated March 6, 2018 ("Orderly Annexation Agreement"); WHEREAS, the entire Town was designated for future annexation under the Orderly Annexation Agreement and the City may annex property from the Town in accordance with the terms and conditions of the Orderly Annexation Agreement; WHEREAS, Michael Redmond, Superintendent, on behalf of Shakopee Public Schools, requested that the City annex approximately 88 acres of property within the Town as shown on the attached Boundary, Location, Topographic and Utility Survey for ISD No.720 (dated 01/26/2016) and as described in Parcel A thru Parcel F of the attached legal descriptions & PID's ("Annexation Area"); WHEREAS, the City has notified the Town of the request it received from the Superintendent, on behalf of Shakopee Public Schools, to annex the Annexation Area; WHEREAS, the City finds and determines as follows with respect to the requested annexation of the Annexation Area: a. Under Section II, paragraph 2 of the Orderly Annexation Agreement, "The following standards shall be used to determine adjacency when a property owner, or combination of multiple property owners with contiguous property, initiates annexation of property: A property, or combination of contiguous properties, shall be considered adjacent to the City when fifty (50) linear feet or more of the subject annexation area boundary is shared with the boundary of the City"; b. The Annexation Area directly abuts the City's boundary for its entire easterly boundary, which more than satisfies the minimum 50 lineal feet or more of shared boundary required by the Orderly Annexation Agreement; Page 317 of 508 c. Under Section II, paragraph 4 of the Orderly Annexation Agreement, "Any landowner, or combination of multiple landowners, with property adjacent to the municipal boundary of the City, may petition the City to annex their property in accordance with this Agreement"; d. The City determines that annexing the Annexation Area pursuant to this Resolution is consistent with the terms and conditions of the Orderly Annexation Agreement. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Shakopee as follows: 1. The recitals set out above and the exhibits attached hereto are incorporated in and made part of this Resolution. 2. The Annexation Area shown on the attached Boundary, Location, Topographic and Utility Survey for ISD No.720 (dated 01/26/2016) and as described in Parcel A thru Parcel F of the attached legal descriptions & PID's is hereby annexed into the municipal boundaries of the City of Shakopee effective upon the issuance of the Chief Administrative Law Judge's order. 3. Pursuant to Minn. Stat. § 414.0325, subd. 1(h) and Section I, paragraph 2 of the Orderly Annexation Agreement, the Chief Administrative Law Judge may review and comment, but shall, within thirty (30) days, order the annexation in accordance with the terms of this Resolution. 4. City staff is authorized and directed to file this Resolution with the Office of Administrative Hearings - Municipal Boundary Adjustments Office (`Boundary Adjustments Office"). 5. In the event the Boundary Adjustments Office identifies any errors, omissions, or other problems with the attached map or legal description, City staff is hereby authorized to make such corrections as may be needed to accomplish the purpose of this Resolution. Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota, held this day of , 2020. ATTEST: Lori Hensen, City Clerk Mayor of the City of Shakopee Page 318 of 508 ORDINANCE NO. 02020-004 AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING THE ZONING MAP ADOPTED IN CITY CODE SEC. 151.003 BY ZONING PROPERTY LOCATED AT 13030 TOWNLINE AVENUE TO RURAL RESIDENTIAL (RR) ZONE WHEREAS, The Superintendent, on behalf of the Shakopee Public Schools, applicant and property owner, has applied to zone the recently annexed property located at 13030 Townline Avenue to Rural Residential (RR) Zone; and WHEREAS, the property is legally described as: See Attached Legal Descriptions, for Parcels A through F,• and WHEREAS, notices were duly sent and posted, and a public hearing was held before the Planning Commission on May 21, 2020, at which time all persons present were given an opportunity to be heard; and WHEREAS, the Planning Commission has recommended to the City Council that the subject property be zoned as stated; and WHEREAS, the City Council heard the matter at its meeting on June 2, 2020; and NOW, THEREFORE BE IT ORDAINED, that the City Council of the City of Shakopee hereby approves the request to zone the property as stated in this ordinance, subject to the condition that the publishing of this ordinance is contingent on the Minnesota Office of Administrative Hearings approval of the annexation. Passed in regular session of the City Council of the City of Shakopee, Minnesota held on the day of , 2020. Mayor of the City of Shakopee Attest: Lori Hensen, City Clerk Published in the Shakopee Valley News on the day of , 20 . Page 319 of 508 8 jJ ;-834617, 771 W7 i'VaZiC,,17 28_78'i,;8,' .800,Y;87_8,78%C_S L3 /0 fr DON 9 68 'ON OV08 A1N7100 - 96M', 37Ae/ir .005 liscaSX3 67.6.A60.13.:L 2 ON 0.11,1 4 /1 avaikmod 090E9 878 3.00,39.00N 19_ 878 I >< 0 5,2 88 L6r, g iHi ri 3 509.913 squo, feet 0,- 59 530 oc,es PARCEL A (PID 069240090) The Northwest Quarter of the Northeast Quarter except the North 183 feet of the West 476 feet thereof; together with the North one-fourth of the Southwest Quarter of the Northeast Quarter; together with a road easement over the West 33 feet of the North 183 feet of the West 176 feet; and subject to a road easement over the West 33 feet of the Northwest Quarter of the Northeast Quarter and the North one -quarter of the Southwest Quarter of the Northeast Quarter, all in Section 24, Township 115, Range 23, Scott County, Minnesota. EXCEPT: That part of the Northwest Quarter of the Northeast Quarter and that part of the North Quarter of the Southwest Quarter of the Northeast Quarter, all in Section 24, Township 115, Range 23, according to the United State Government Survey thereof, described as follows: Commencing at the northwest corner of said Northeast Quarter; thence on an assumed bearing of South 0 degrees 09 minutes 46 seconds West along the west line of said Northeast Quarter a distance of 183.59 feet to an intersection with a line 183.00 feet southerly of measured at a right angle to and parallel with the north line of said Northeast Quarter; thence South 85 degrees 14 minutes 28 seconds East along said parallel line a distance of 33.11 feet to an intersection with a line 33.00 feet easterly of; measured at a right angle to and parallel with the west line of said Northeast Quarter; thence South 0 degrees 09 minutes 46 seconds West along said parallel line a distance of 433.00 feet; thence South 85 degrees 14 minutes 28 seconds East a distance of 192.62 feet; thence South 0 degrees 09 minutes 46 seconds West a distance of 650.00 feet; thence South 69 degrees 15 minutes 48 seconds East a distance of 587.48 feet; thence South 0 degrees 09 minutes 46 seconds West a distance of 242.08 feet to the south line of said North Quarter of the Southwest Quarter of the Northeast Quarter; thence North 86 degrees 26 minutes 34 seconds West a distance of 776.37 feet to the southwest corner of said North Quarter of the Southwest Quarter of the Northeast Quarter; thence North 0 degrees 09 minutes 46 seconds East a distance of 1503.65 feet along the west line of said Northeast Quarter to the point of beginning. EXCEPT: That part of the Northwest Quarter of the Northeast Quarter of Section 24, Township 115, Range 23, described as follows: Commencing at the northwest corner of said Northeast Quarter; thence on an assumed bearing of South 85 degrees 14 minutes 28 seconds East along the north line of said Northeast Quarter, a distance of 690.68 feet to the point of beginning; thence South 5 degrees 43 minutes 17 seconds East, a distance of 359.33 feet; thence South 8 degrees 22 minutes 20 seconds East, a distance of 99.28 feet; thence North 78 degrees 53 minutes 38 seconds East, a distance of 290.43 feet; thence North 16 degrees 02 minutes 30 seconds East, a distance of 377.93 feet to the north line of said Northeast Quarter; thence North 85 degrees 14 minutes 28 seconds West along said north line, a distance of 441.23 feet to the point of beginning. Subject to road easement over the northerly 33 feet thereof. (Per Certificate of Title No. 43467) AND Page 321 of 508 PARCEL B (PID 069240091) That part of the Northwest Quarter of the Northeast Quarter of Section 24, Township 115, Range 23, described as follows: Commencing at the northwest corner of said Northeast Quarter; thence on an assumed bearing of South 85 degrees 14 minutes 28 seconds East along the north line of said Northeast Quarter, a distance of 690.68 feet to the Point of Beginning; thence South 5 degrees 43 minutes 17 seconds East, a distance of 359.33 feet; thence South 8 degrees 22 minutes 20 seconds East, a distance of 99.28 feet; thence North 78 degrees 53 minutes 38 seconds East, a distance of 290.43 feet; thence North 16 degrees 02 minutes 30 seconds East, a distance of 377.93 feet to the north line of said Northeast Quarter; thence North 85 degrees 14 minutes 28 seconds West along said north line a distance of 441.23 feet to the Point of Beginning. SUBJECT TO a road easement over the northerly 33 feet thereof. (Per Certificate of Title No. 50345) AND PARCEL C (PID 069240020) All that part of the Northeast Quarter of the Northeast Quarter of Section 24, Township 115, Range 23, Scott County, Minnesota, described as follows: Beginning at a point on the north line of said Northeast Quarter of the Northeast Quarter, distant 646.93 feet West of the northeast corner thereof; thence southerly parallel with the east line of said Northeast Quarter of the Northeast Quarter a distance of 241.81 feet; thence westerly parallel with the north line of said Northeast Quarter of the Northeast Quarter a distance of 253.07 feet; thence northerly parallel with the east line of said Northeast Quarter of the Northeast Quarter a distance of 241.81 feet; thence easterly to the point of beginning. (Per Warranty Deed Doc. No. A433919) AND PARCEL D (PID 069240030) Parcel (A) All that part of the Northeast Quarter of the Northeast Quarter of Section 24, Township 115, Range 23, Scott County, Minnesota, described as follows: Beginning at a point on the north line of said Northeast Quarter of the Northeast Quarter, distant 241.81 feet west of the northeast corner thereof; thence Southerly parallel with the east line of said Northeast Quarter of the Northeast Quarter a distance of 241.81 feet; thence westerly parallel with the north line of said Northeast Quarter of the Northeast Page 322 of 508 Quarter a distance of 405.12 feet; thence northerly parallel with the east line of said Northeast Quarter of the Northeast Quarter a distance of 241.81 feet; thence easterly to the point of beginning, except the northerly 33 feet thereof for County Road No. 77. Parcel (B) All that part of the Northeast Quarter of the Northeast Quarter (NE I/4 of NE I/4) Section Twenty-four (24), Township One Hundred Fifteen (115) North, Range Twenty-three (23) West, Scott County, Minnesota, described as follows: Beginning at the Northeast corner of Section 24, Township 115, Range 23; thence South along the East line of said Section 24, 241.81 feet; thence Northwesterly parallel with the North line of said Section 24, 241.81 feet; thence North parallel to the East line of said Section 24, 241.81 feet to the northerly line of Section 24; thence Southeasterly on said North line 241.81 feet to the place of beginning; excepting therefrom the Northerly 33.0 feet and the Easterly 33.0 feet for county road right of way. Also, the South 50 feet of the North 291.81 feet of the East 241.81 feet of the Northeast Quarter of the Northeast Quarter (NE I/4 of NE I/4), excepting therefrom the Easterly 33.00 feet thereof for county road right of way; all in Section 24, Township 115, Range 23, Scott County, Minnesota. (Per Quit Claim Deed Doc. No. 424206) AND PARCEL E (PID 069240040) The Northeast Quarter of the Northeast Quarter of (NE 1/4 of NE1/4) of Section Twenty Four (24), Township Number One Hundred Fifteen (115) North, Range Twenty-three (23) West, excepting the following described tract; Beginning at the Northeast corner of said Section Twenty Four (24), thence South Two Hundred Forty-one and eighty-one hundredths (241.81) feet; thence West Nine Hundred (900) feet; thence North Two Hundred Forty-one and eighty-one hundredths (241.81) feet to the North line of said Section Twenty Four (24); thence East Nine Hundred (900) feet to the point of beginning. (Per Warranty Deed Doc. No. 104262) AND PARCEL F (PID 069240080) The North 326.0 feet of the SE 1/4 of NE 1/4 of Section 24, Township 115N, Range 23W, Scott County, Minnesota, as measured along the East and West lines thereof. Subject to a road easement over the East 33.0 feet thereof. (Per Warranty Deed Doc. 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This friendly annexation would see the entire school district property at this location, East and West Parcels, move from Jackson Township to the City of Shakopee. The annexation to the City of Shakopee has a number of benefits for the school district in terms of both immediate uses and long term planning. Sincerely, Mike Redmond 1200 Town Square, Shakopee, MN 55379 (952) 496-5006 • fax: (952) 496-5056 *Also a TTY number Page 325 of 508 AN EQUAL OPPORTUNITY EMPLOYER City of Shakopee Memorandum TO: Mark Noble, Senior Planner FROM: Micah Heckman, Project Engineer SUBJECT: Annexation — 86.05 Acres in Jackson Township, Scott County (property address 13030 Townline Avenue) PID #: 69-240020, 69-240030, 69-240040, 69-240080, 69-240090 & 69- 240091 (Jackson Township PIDs) DATE: April 29, 2020 The application indicates a request to annex six (6) properties from Jackson Township. These properties are located southwest of the intersection of County Road 78 (130th Street) and County Road 79 (Townline Avenue) at 13030 Townline Avenue. The engineering department has completed its review and offers the following comments at this time for the applicant and for the planning department: 1. Submit as -built drawings for the site. 2. The site currently contains gravel trails, drive aisles and parking areas. It is recommended that these areas be paved with bituminous or concrete material. 3. Currently, storm sewer is not extended to the property, however, storm water runoff is conveyed through the City of Shakopee trunk storm system. Therefore, the trunk storm water charge will be due at the time of annexation. 4. Currently, no sanitary sewer is extended to the property. If sanitary is extended and the site is connected in the future, the trunk sanitary sewer charge would be due at that time. 5. Obtain final approval of the Storm Water Management Plan for the site. 6. Dedicate drainage and utility easement to encompass the 100-year high water level of all storm basins and wetlands. 7. Submit a copy of all drainage and utility easements that have been recorded for this property. 8. It is assumed that all trails throughout the site and adjacent to County Road 78 and County Road 79 are private. If the trails along the county roads are to be public trails, trail easement must be dedicated to the City of Shakopee. H:ADevelopment\13030 Townline Ave (Annexation)A_Pro ject Management\Letters and Memos\Staff Review\SH100310 Annex ISD 720.docx Page 326 of 508 9. Submit a copy of an executed Utility Facilities Easement Agreement. The agreement must also be recorded with the county. 10. All storm water infrastructure on the site is private and should be denoted as such on the as -built plans. 11. All pedestrian ramps adjacent to public roadways must be ADA compliant. 12. Submit a copy of the wetland delineation that was completed for the site. Recommendation Following our review, the Public Works department recommends approval of the annexation with the items above attached as conditions of the approval. H:ADevelopment\13030 Townline Ave (Annexation)A_Pro jeat Management\ Letters and Memos\Staff Review\SH100310 Annex ISD 720.docx Page 327 of08 o SHAKOPEE PUBLIC UTILITIESCOMMISSION EllnInInInINIIIMMMOIMMOIMMI1V010110101101011 uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuNoomNomNomNomuoommuuuuoomNNNomNuuuoommuuuuooummmmmmmmmmmmmmmNNN "Lighting the Way - Yesterday, Today and Beyond" MEMORANDUM TO: Shakopee Community Development Department FROM: Joseph D. Adams, Planning and Engineering Director SUBJECT: STAFF REVIEW RECORD COMMENTS for: Annexation of Shakopee Public Schools South Site — 13030 Townline Avenue CASE NO: SH-100310 DATE: 4/21/2020 COMMENTS: Municipal water service is not presently available to the subject site. The subject property is located within the 2nd High Elevation Service (2HES) district. The nearest public water mains in the 2HES district are located along County Road 78, approximately 400 feet west of Jennifer Lane and in Fairhaven Drive of the Menden Addition. Applicant should contact Shakopee Public Utilities directly to discuss how municipal water service may be extended to the subject property. Once water service is extended to the property, municipal water service would be made available subject to our standard terms and conditions. These include, but are not limited to: installing a lateral water main distribution system in accordance with utility policy, paying the associated inspections costs, granting any necessary easements, paying the Trunk Water Charge, and paying the Water Capacity Charge. Underground electric service is available subject to our standard terms and conditions. These include, but are not limited to: entering into an Underground Distribution Agreement, granting any necessary easements, and paying the associated fees. Street Lighting installation is available subject to our standard terms and conditions. These are contained in the current City of Shakopee Street Lighting Policy. Applicant must pay the associated fees. Applicant should contact Shakopee Public Utilities directly for specific requirements relating to their project. Post Off ce Box 47( 255 Sarazin Street .Nu Shakopee, M i (952) 445-1988 (952) 445-7767 www.shakopecutilities.com 55379-047O Page 328 of 508 CK Mark Noble 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 TIMOTHY J. KEANE (612) 334-5015 tim.kaane@kutakrock.com May 7, 2020 VIA EMAIL: mnable@rhakopee.mn.gov Re: Jackson Township Comments Shakopee Public Schools Annexation and Rezoning Dear Mr. Noble: This letter of objection is submitted on behalf of Jackson Township ("Jackson") in the matter of the annexation and rezoning proposal submitted to the City of Shakopee ("Shakopee") for approval by the Shakopee School District for the property generally located south and west of County Road 78 and County Road 79. The subject property is located within the area subject to Joint Resolution for Orderly Annexation Between the Town of Jackson and the City of Shakopee (the "OAA"). The OAA was the subject of many meetings, discussions, and negotiations between Jackson and Shakopee over a period exceeding 2 years. This process culminated in the adoption and filing of the OAA on March 12, 2018, with the Minnesota Office of Administrative Hearings ("OAH") on file as OA-1694. The area that is the subject of the annexation and rezoning applications is located within development Area E as designated in OA-1694. Area E as designated and provided in the OAA is reserved for annexation eligibility consideration any time after January 1, 2050. The annexation and rezoning request by the School District for Shakopee approval is premature and will require an amendment to OA-1694. Jackson respectfully requests that Shakopee conform to: (1) Phasing; (2) Joint Notification (Sec. 15); and (3) Joint Meeting (Sec. 16) requirements of OA-1694. Sincerely, Timothy J. Keane cc: Jackson Town Supervisors Minnesota Office of Administrative Hearings 4825-3632-9404.1 Page 329 of 508 JOINT RESOLUTION FOR ORDERLY ANNEXATION BETWEEN THE TOWN OF JACKSON & THE CITY OF SHAKOPEE WHEREAS, the City of Shakopee (hereinafter referred to as the "City") and the Township of Jackson (hereinafter referred to as the "Township"), both located entirely within Scott County in the State of Minnesota, desire to accommodate growth in the most orderly fashion, and have agreed that there is a clear need for cooperative future planning for the land governed by the two jurisdictions; and WHEREAS, the City and the Township entered into a Joint Resolution for Orderly Annexation in 2002 ("2002 Joint Resolution"); and WHEREAS, the City and the Township have established a committee to develop a new joint orderly annexation agreement which has extensively discussed, studied, and evaluated, pertinent issues regarding annexation and planning; and WHEREAS, the Township Board and City Council have expressed their desire to encourage future development of land near the City so as to promote the development of municipal services and urban growth as much as is practical, while encouraging the preservation of the character of the Township; and WHEREAS, the City and the Township are independent local governing authorities that represent the interests of the geographic areas and their constituents; and WHEREAS, it is desired and expressly understood that decisions of said governing authorities, irrespective of an agreement on a process for orderly annexation, will continue to be made by each respective authority; and WHEREAS, a new joint orderly annexation agreement is beneficial to both parties from the standpoint of orderly planning and orderly transition of government within the area proposed to be annexed, and provides the guidelines under which such annexation shall take place. NOW, THEREFORE, BE IT RESOLVED, in consideration of the mutual terms and conditions that follow, the City and the Township enter into this Joint Resolution for Orderly Annexation ("Joint Resolution" or "Agreement") and that the property herein described may be annexed in the future by the City, and at the time annexation is proposed, it shall occur, or may be applied for, subject to the following terms and conditions: Section 1- Administration 1. Municipalw...Boundary_ mAdjuStment µUnit oftheMinnesota OfficeofAdministrative Hearings. Upon approval by the Township Board and the City Council, this Joint Resolution shall confer jurisdiction upon the Municipal Boundary Adjustment 492867v10 SH155-377 Page 330 of 508 Unit, or its designated successor ("MBAU") so as to accomplish said orderly annexations in accordance with the terms of this Joint Resolution. 2. Review and � Comment the MBAU. The Township and City mutually agree �....w.w.w.ww.w_...w._,..__.�,.rb and state that this Joint Resolution and Agreement sets forth all the conditions for annexation and that no consideration by the MBAU is necessary for individual annexations which occur in accordance with this Agreement. MBAU may review and comment, but shall, within thirty (30) days, order the annexation in accordance with the terms of this Joint Resolution. No Alteration of Boundaries. The Township and City mutually agree and state that no alterations bytheMBAU of the stated boundaries of the area designated for orderly annexation is appropriate. 4. Authorization. The applicable legislative bodies of the Township and City, as well as the MBAU, are hereby authorized to carry the terms of this Joint Resolution into effect. 5. Severability and Repealer. A determination that a provision of this Joint Resolution is unlawful or unenforceable shall not affect the validity or enforceability of the other provisions herein. This Joint Resolution and Agreement supersedes and replaces the 2002 Joint Resolution in its entirety. 6. Geographic Limitation for Annexation. All of the land in the Township is subject to orderly annexation in accordance with this Agreement under and pursuant to State Statute, subject to the provisions contained herein. 7 State Statute. The terms and conditions of this Agreement are created as an addition or complement to the requirements for annexation required by law. The language contained herein shall in no way be deemed to circumvent or reduce requirements established by law. If changes to State Statute are enacted during the duration of this Agreement that are more restrictive or otherwise negate the provisions herein, the State Statute shall rule. Nothing in this Agreement, however, is intended to confer, or expand upon, any power or authority that the MBAU does not have pursuant to State Statute. 8. Effective Date/Applicability. This Joint Resolution shall be effective upon adoption by the legislative bodies of the Township and the City and acceptance by the MBAU. This Agreement shall be applicable for any annexation petition filed or initiated while the Agreement is in effect. Should this Agreement be terminated following the filing of a petition for annexation, but prior to final action on that annexation by the City, the provisions of this Agreement shall be binding unless otherwise modified by a joint resolution of both the Township and the City. 2 Page 331 of 508 9. AnnexationmmbyOrdinance. Annexation by Ordinance shall be accomplished according to Minn. Stat. § 414.033, subd 2. 10. Duration ofAclreement. This Agreement shall be in force and binding from the date that it is accepted by the MBAU and shall continue to remain in effect until the Township and City replace or renew this Agreement with an amended joint agreement and resolution for orderly annexation. 11 Mediation/Arbitration. If a dispute of the terms or conditions of this Agreement arises, the Town and City hereby agree to enter into mediation to attempt to resolve this dispute. Mediation services shall be provided by a state agency or other third party representative agreed to by both the Township and the City. If mediation is unsuccessful, the Township and City hereby agree to enter into binding arbitration to resolve disputes under this Agreement. Mediation and arbitration shall be conducted in accordance with state statutes. 12. Amendment and Termination. Both parties reserve the right to initiate an amendment or revision to this Agreement at any time. However, once in effect, any amendment or revision to this Agreement shall require a joint resolution approved by both the Township and the City, as well as acceptance by the MBAU. Both parties reserve the right to request the termination of this Agreement. However, termination of this Agreement shall require a joint resolution approved by both the Township and the City. This Agreement shall terminate immediately upon approval of both legislative bodies and acceptance by the MBAU. 13. PlanningandLand Use Control Authority. Scott County shall continue to exercise all planning, land use control, and zoning authority over all property in the orderly annexation area until such time as the City annexes the property. The City shall exercise all planning, land use control, and zoning authority over property after it is annexed into the City. 14. City Development Standards. The Township and City mutually agree and state that there is an inherent financial benefit to utilize City development standards within orderly annexation areas that will readily allow for the future extension of public utilities. Furthermore, the Township and the City agree to work with Scott County government to create, support, and develop standards that minimize the amount of infrastructure, and potential assessment costs, associated with annexation. 15. Joint Notification. Upon receiving or initiating a Petition for annexation, the City shall send to the Town Clerk a copy of the petition, resolution, proposed plans, and other relevant information to the Township not less than thirty (30) days prior to adoption. This provision shall be considered in concert with, and not necessarily in addition to, any required or existing notification procedure maintained by the City or required by State Statute. 3 Page 332 of 508 16. Joint Meetins. The Township and City mutually agree to conduct a minimum of two (2) joint meetings each calendar year to discuss matters relating to this Agreement and to facilitate communication between the City and the Township with respect to annexation matters, such as topics relating to: A. Potential amendments to this Agreement; B. Specific development proposals on property within the annexation area; C. Specific annexation petitions; or D. Discussion of contemplated or ongoing planning studies or capital improvement projects by the City that potentially impact or affect the annexation area. Unless otherwise mutually agreed to by the parties, the joint meetings will be held on the second Wednesday in February and August. The location and time for each meeting shall be determined jointly by the Township and City. At a minimum, one elected official of each legislative body shall be required to attend the meeting. Section 11- Initiation of Annexation, Petition 1. Requirements_ of Section. All petitions for annexation, or initiation of annexation, shall occur in accordance with the provisions identified by this section. Where state statute allows for a petition to be filed or initiated not in conformance with this section of the Agreement, the legislative body of the City hereby agrees that favorable action will not occur on said petition without the prior or concurrent amendment of this Agreement in accordance with the provisions identified herein. 2. Property Owner InitiatedMAdacency Requirements. The following standards shall be used to determine adjacency when a property owner, or combination of multiple property owners with contiguous property, initiates annexation of property: A property, or combination of contiguous properties, shall be considered adjacent to the City when fifty (50) linear feet or more of the subject annexation area boundary abuts the municipal boundary of the City. 3. City JnitiatedAnnexation Ad acency Renuirements. The following standards shall be used to determine adjacency when the City initiates annexation of property: (a) Undeveloped property — Twenty five (25) percent contiguous shall be defined as at least twenty five (25) percent of the boundary of the subject property, or combination of contiguous properties, which abuts the City's municipal boundary 4 Page 333 of 508 (b) Developed property - Completely surrounded shall be defined as one hundred (100) percent of the boundary of the subject property, or combination of contiguous properties, which abuts the City's municipal boundary. (c) Township Limit - For the purposes of this document, the Township limit shall be defined as those portions of the outer boundary of the Township, not adjacent to the City, adjacent to other Townships, or jurisdictional boundaries. 4. PropertyOwnerr Petition. Any landowner, or combination of multiple landowners, with property adjacent to the municipal boundary of the City, may petition the City to annex their property in accordance with this Agreement. 5. Subdivision Definition. For the purposes of this Agreement, a subdivision is defined as one or more lots platted through the provisions identified within the Scott County Subdivision Control Ordinance, as from time to time amended. For those lots that predate the Subdivision Control Ordinance, a subdivision shall be considered one or more parcels of land established by lot and block number descriptions rather than a metes and bounds property description. 6. Existing Subdivision Petition. A simple majority of land owners within a subdivision based on the total number of lots, when the subdivision boundary is contiguous to the municipal boundary of the City, may petition the City to annex the entire subdivision in accordance with this Agreement. In addition, residential developments platted under the Urban Expansion Reserve provisions of the County Zoning Ordinance may be petitioned in their entirety by the owner, or owners, of a simple majority of the total property of the subdivision, including the outlot(s) reserved for future development. A petition to annex a residential subdivision which developed under the Urban Expansion Reserve Zoning provisions of the County Zoning Ordinance may not be considered valid unless it includes all the gross property of the subdivision, including developed/platted lots, outlot(s), and any public or commonly owned property as applicable. Any existing subdivision petitioning for annexation in accordance with this provision shall be considered a petition of all the representative property owners for the purpose of this Agreement. The separate provisions identified when the City initiates annexation shall not apply. 7 Initiation of ,Annexationww by City ford Undeveloped Proserty. The City may in accordance with the staging schedule contained in Section 11.9 and without a petition of the property owners, annex undeveloped property, or multiple undeveloped properties, within the Township if at least twenty five (25) percent of the boundary of the subject property, or combination of contiguous properties, abuts the City's municipal boundary. For the purposes of this Agreement, whether or not a property is developed shall be determined at the time of initiation of the annexation, based on existing conditions or approved 5 Page 334 of 508 and recorded plans, whichever is more restrictive. Undeveloped property means all property that does not meet one of the following criteria: (a) Residential subdivisions/lots with a gross density greater than one (1) dwelling unit for every five (5) acres of land based on either the number of dwelling units or Tots, whichever is greater. Residential developments platted under the Urban Expansion Reserve Zoning provisions of the County Zoning Ordinance shall include the outlot(s) reserved for future development as part of the calculation of gross density, where applicable. (b) Non-residential development with 1,000 square feet of principal and/or accessory building coverage per acre or greater. For the purposes of this Agreement, a dwelling unit shall be defined as a residential building or portion thereof intended for occupancy by one (1) or more persons with facilities for living, sleeping, cooking, eating, and restrooms. Motels, hotels, rooming houses, nursing homes, manufactured home parks, campgrounds, and similar facilities shall be considered commercial and not residential. Tents, seasonal cabins, motor homes, travel trailers, and other similar temporary or moveable facilities shall not be considered a dwelling unit. Land which is tax exempt, publicly owned, utilized for utility or transportation purposes, or other similar property shall be considered undeveloped. 8. InitiationofAnnexation bywCity mfor Developed Projperty. The City may at any time, without a petition of the property owners, annex developed property or multiple adjacent properties within the Township completely surrounded by the municipal boundary of the City, subject to the following additional conditions: (a) Certified Notice of Intent to Annex- The City shall provide a minimum of six months' notice by certified mail to each property owner within a developed area prior to initiating annexation. This certified notice shall also be sent to the Township. This notice shall be considered additional to any requirements established by state statute. The notice shall include the following information: 1. Improvements — all proposed improvements with an estimated installation date and approximate assessment cost (if applicable). 2. Benefits — the major proposed services/benefits that are planned to occur simultaneously with annexation. Benefits suitable for notification shall be at the discretion of the City, but are intended to include, but not be limited to, police and fire services, street maintenance, and park system benefits. 6 Page 335 of 508 3. Tax Rates — the existing City tax rate compared to the existing Township tax rate. The notice shall also include the estimated date when the new tax rate would take effect and first be payable to the City. Although an individual analysis of each property is not required, at least one representative example shall be provided that illustrates a typical before and after effect between City and Township taxes identified in dollars per year. The purpose of this provision is to provide general information to property owners within a proposed annexation area. 4. Timelinefor Annexation — the anticipated schedule for future notice, public hearing dates, and the ultimate effective date of annexation. Although individual dates and times need not be identified, the purpose of this provision is to make residents aware of the general chronology of annexation in accordance with statute and the provisions of this Agreement. (b) Public MeetinRequired— The City shall conduct a public informational meeting on the proposed annexation plans within ninety (90) days of the certified notice. The date, time, location, and purpose of this meeting shall be identified as part of the certified notice of annexation. The purpose of this meeting is to provide general information to the public and solicit public input on required infrastructure improvements. (c) Effective Datew of Annexation — City approval of. the Resolution for annexation shall not be submitted to the MBAU earlier than one (1) year from the date of approval of the Resolution. The effective date of annexation shall be the date of MBAU approval. (d) AssessmentPeriod- The payback time on assessments for improvements associated with annexation shall be for a period not to exceed ten (10) years. Individual property owners may request the City to consider increasing the payback time on assessments to a maximum period of twenty (20) years, however, the consideration shall be guided as follows: 1. PropertyPrgperty OwnerInitiatedAnnexation — Approval of any requested extension is solely in the discretion of the City. 2. Cite Initiated Annexation — Although the City has the right to review and approve assessment payback times, the burden shall be on the City to identify valid reasons why an assessment should not be extended at the request of an individual property owner. To be considered valid, assessment extension requests shall be made prior to or as part of the hearing process required for annexation. 7 Page 336 of 508 Any dispute to this provision shall be governed by the Mediation/Arbitration provision of this Agreement. (e) Public Water and Sewer Service - To reduce pre -mature assessment costs to developed property, public water and sanitary sewer need only be provided to developed areas where there is either an existing or eminent health concern identified by the City, or where the extension of services is part of the implementation of the City's long range utility plans. At any time, property owners may also petition the City for the extension of services. At that time, the City shall prepare a plan/concept outlining how, when, and at what cost services might be provided. The City shall allow for input on the prepared plan/concept prior to proceeding with implementing the request and assessing the cost to individual property owners. The intent of this provision is to allow property owners to evaluate the cost/benefit of services where other health concerns or the implementation of long range plans does not exist. (f) Township Requested /mrovements - The Township, on behalf of the proposed annexation area, may request that specific improvements be installed to address a specific problem and/or deficiency. To be considered by the City, the Township shall notify the City of any requested improvements prior to or as part of the first public hearing, as required by state statute. Any request made after that time shall not have standing and may be considered solely at the discretion of the City. If no agreement can be reached regarding the need for the requested improvements within the annexation area, the annexation may not proceed until the disputed installation of improvements is resolved in accordance with the Mediation/Arbitration portion of this Agreement. 9. Annexation Eligibility. Attached to this Agreement as Exhibit A is an Annexation Staging Area Map. If all of the other requirements for annexation contained in this Agreement are met, property within the Annexation Staging Area is eligible for City -initiated annexation in accordance with the following schedule: (a) Property located in Area A is eligible for annexation any time after both the City and the Township approve this Joint Resolution. (b) Property located in Area B is eligible for annexation any time after December 31, 2017. (c) Property located in Areas C and D is eligible for annexation any time after December 31, 2017, provided, however that no property in Area C can be annexed until at least 25% of the property located in Areas A & B combined has been annexed into the City. 8 Page 337 of 508 (d) Property located in Areas E and F are eligible for annexation any time after January 1, 2050. The City is not obligated to initiate annexation of all of the property in any particular area before initiating annexation of property in another area. Section 111— Municipal Reimbursement 1. MunicipalReimbursement. It is generally recognized that the fiscal planning for any government entity occurs in the calendar year prior to the actual expenditures. Whereas, the annexation of property could pose a hardship on the Township having planned for a certain income that is no longer available upon annexation. To address this potential hardship, the Township and City mutually agree and state that, pursuant to state statute, a reimbursement from the City to the Township shall occur for the taxes collected on land annexed into the City. Reimbursement shall occur as identified herein. Any and all of the applicable property taxes collected in the area designated for Orderly Annexation shall remain the property of the Township. Excepting required reimbursement, upon annexation, any and all property taxes collected from the annexed properties shall be the property of the City. Reimbursement from the City to the Township shall occur as follows: (a) Rate/Amount — The City shall reimburse the Township by a cash payment, based on the Township's tax rate and the taxable market value of each annexed parcel as of January 2 of the year in which the parcel is annexed multiplied by a 7-year period of time. The year the property is annexed shall be determined by the date of MBAU approval. For purposes of calculating the amount of the City's reimbursement, the taxable market value of any parcel annexed into the City will be determined by using the taxable market value of the parcel as of January 2, 2017 increased by 3% annual simple interest until January 2nd of the year in which the parcel is annexed. The following examples illustrate how that calculation will be made: Exam ale 1. Parcel A has a taxable market value of $100 as of January 2, 2017. Parcel A is annexed into the City on July 1, 2018. For purposes of calculating the City's required reimbursement to the Township, the taxable marketable value of Parcel A as of January 2, 2018 is $103. Example 2 Parcel B has a taxable market value of $100 as of January 2, 2017. Parcel B is annexed into the City on July 1, 2020. For purposes of calculating the City's required reimbursement to the Township, the taxable market value of Parcel A as of January 2, 2020 is $109. 9 Page 338 of 508 Attached to this Agreement as Exhibit B is a list of all of the parcels of land currently located in Areas A, B, C, and D of the Annexation Staging Area Map and the taxable market values of those parcels as of January 2, 2017. The taxable market value for each parcel listed on Exhibit B will be used as the starting point for making the 3% annual adjustment required by this provision. (b) Reimbursement Payment The City shall reimburse the Township with the amount of funds as determined herein by a single payment to the Township within sixty (60) days after the parcel is annexed into the City. Reimbursement Payment Exam le: Parcel A is annexed into the City on July 1, 2018 and the taxable market value of the parcel as of January 2, 2018 as determined in paragraph (a) above is $100,000. If the Township's tax rate as of January 2, 2018 as applied to that taxable market value for Parcel A would result in $700 of property taxes being paid to the Township, the City is required to pay $4,900 to the Township. The payment is due by August 31, 2018. 2. Tax ExemptProperty. Where a property is annexed that is publicly owned or is currently exempt from local property taxes, the exemption shall be maintained and no reimbursement shall be required from the City to the Township. 3. Bondedw Im rovements. The Township may bond for capital expenditures in accordance with applicable state statutes. However, the Township shall be solely responsible for bearing the costs associated with paying back the bond unless a previous agreement is reached between the Township and the City. Section IV— Miscellaneous Conditions. 1. Annual Area Limits. Within any given calendar year, the City shall be limited to a maximum area it may annex without property owner petitions. The City shall be limited to a maximum City -initiated annexation area of two hundred and fifty (250) acres per calendar year of developed and undeveloped property combined. For the purposes of this Agreement, publicly owned property, or property currently exempt from local property taxes, shall not apply or count toward the maximum area limitation. 2. Township Re_questedwwAnnexation. Over time, it is likely that pockets or islands of the Township will be created due to annexation. At which time, the Township may determine that it is either a financial burden or undesirable to provide service to specific properties. To alleviate the effects of continual annexation and the creation of pockets and islands, the Township may at any time require 10 Page 339 of 508 the City to annex properties that are completely surrounded by the City, as defined within this Agreement. Annexation requested by the Township is subject to the following: (a) The Township shall notify the City of this request by certified mail identifying all properties requested to be annexed. (b) The City shall have a period of one (1) year from the date of notification to initiate the annexation of the properties associated with the request. (c) No reimbursement shall be required from the City to the Township for Township requested annexation of property. (d) There shall be no size or area limitation placed on Township requested annexation. 3. .....w......_.... ..,...._. o -- Sewer.,.,Hook-U wwaw Charges. The twenty Existing _Platted Addition wW and Related Cha �, (20) existing neighborhoods set forth in Exhibit C_("Qualifying Subdivisions") as established platted subdivisions within the Township shall be subject to the following special provisions: (a) Notwithstanding any other provision in the City Code to the contrary, no parcel of land in a Qualifying Subdivision where lateral sanitary sewer service is available will be required to hook up to the City sanitary sewer system after annexation if the parcel has an operating septic system that complies with all County standards, until the parcel is sold or until the septic system becomes defective, whichever occurs first. A septic system becomes defective when: (1) substantial repair, such as replacement of drain field lines, is needed; (2) replacement of a well is needed; or (3) the system no longer fully complies with all County standards. (b) At the time of connection to the City trunk sanitary sewer, the property owner will be required to pay all connection fees and lateral/trunk sewer charges at the applicable rates in effect at the time of connection. 4. Exemption wfor Court Ordered Extension of Services. The Township and City recognize that a situation may come to exist that a judicial decision may be made that requires the City to extend water, sewer, or other municipal service to a portion of the Township. If a legally binding court order exists with no possibility of further disruption on appeal, and the contract for the extension of services has been completed, the annexation of that property may be initiated by the City in accordance with the Township requested annexation provisions of this Agreement in the preceding section, rather than the more stringent City initiated provisions. In cases where the order is relative to only a portion of a residential subdivision, the annexation may include the entire subdivision to facilitate the extension of services, at the discretion of the City. 11 Page 340 of 508 5. Road Maintenance. If land is annexed into the City whereby ownership extends to the centerline of a Township road, the City shall assume maintenance of said road. JACKSON TOWNSHIP Approved this fiz7J day of rffeizeL , 20/S . P Thomas Weckman, Chair Jackson Township ,., Dated: CITY OF SHAKOPEE Approved this By:. William 1 Mars, Mayor City of Shakopee Dated: By:. William H. Rolds, City Administrator City of Shakopee Dated: Attested to: Rose Menke, Clerk Dated: Dated: ^ n, City Clerk 12 Page 341 of 508 EXHIBIT A City of Shakopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PIO # UNIQUE TAXING AUTHORITY 60000010 0801/JKSN TWP/ISD 720 60000020 0802/JKSN TWP/ISD 720/LOW MN 60000030 0801/JKSN TWP/ISD 720 60000040 0801/JKSN TWP/ISD 720 60000060 0802/JKSN TWP/ISD 720/LOW MN 60000070 0801/JKSN TWP/ISD 720 60000080 0801/JKSN TWP/ISD 720 60000100 0801/JKSN TWP/ISD 720 60000110 0801/JKSN TWP/ISD 720 60000120 0802/JKSN TWP/ISD 720/LOW MN 60005000 0802/JKSN TWP/ISD 720/LOW MN 60010010 0802/JKSN TWP/ISD 720/LOW MN 60010020 D802/JKSN TWP/ISD 720/LOW MN 60010030 0802/JKSN TWP/ISD 720/LOW MN 60010040 0802/JKSN TWP/ISD 720/LOW MN 60010050 0802/JKSN TWP/ISD 720/LOW MN 60010060 0802/JKSN TWP/ISD 720/LOW MN 60010070 0802/JKSN TWP/ISD 720/LOW MN 60010080 0802/JKSN TWP/ISD 720/LOW MN 60030010 0802/JKSN TWP/ISD 720/LOW MN 60030020 0802/JKSN TWP/ISD 720/LOW MN 60030030 0802/JKSN TWP/ISD 720/LOW MN 60030040 0802/JKSN TWP/ISD 720/LOW MN 6003005C 0802/JKSN TWP/ISD 720/LOW MN 60030060 0802/JKSN TWP/ISD 720/LOW MN 60030070 0802/JKSN TWP/ISD 720/LOW MN 60030080 0802/JKSN TWP/ISD 720/LOW MN 60030090 0802/JKSN TWP/ISD 720/LOW MN 60030100 0802/JKSN TWP/ISD 720/LOW MN 60030110 0802/JKSN TWP/ISD 720/LOW MN 60030120 0802/JKSN TWP/ISD 720/LOW MN 60030130 0802/JKSN TWP/ISD 720/LOW MN 60030140 0802/JKSN TWP/ISD 720/LOW MN 60030150 0802/JKSN TWP/ISD 720/LOW MN 60030160 0802/JKSN TWP/ISD 720/LOW MN 60050010 0801/JKSN TWP/ISD 720 60050020 0801/JKSN TWP/ISD 720 60050030 0801/JKSN TWP/ISD 720 60050040 0801/JKSN TWPASD 720 60050050 0801/JKSN TWP/ISD 720 60050060 0801/JKSN TWP/ISD 720 60050070 0801/JKSN TWP/ISD 720 60050080 0801/JKSN TWP/ISD 720 60050090 0801/JKSN TWP/ISD 720 60050100 0801/JKSN TWP/ISD 720 60050110 0801/JKSN TWP/ISD 720 60050120 0801/JKSN TWP/ISD 720 60050130 0801/JKSN TWP/ISD 720 60050140 0801/JKSN TWP/ISD 720 60050150 0801/JKSN TWP/ISD 720 CLASS INFO 455 PP SA Gas Trans Pipeline 459 PP SA Gas Distrib utlllty 459 PP SA Gas Distrib Utility 459 PP SA Gas Distrib Utility 443 PP SA Elec Trans >= 69KV 431 PP Tools & Mach 453 PP Leased L/B 453 PP Leased 1/8 453 PP Leased L/8 443 PP SA Elec Trans >= 69KV 360 Pub Util RR 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 952 State Property 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit Page 1 of 11 EMVTMV 4,800 $4,800 418,900 44,700 3,041,900 3,502,300 10,200 30,000 60,000 150,000 699,400 493,700 700 700 100 800 800 700 100 700 700 700 700 700 700 700 700 700 700 600 600 700 100 100 100 100 258,600 267,200 291,300 293,300 227,400 276,100 240,000 233,500 246,800 88,800 233,700 272,300 14,100 274,400 229,800 $418,900 $44,700 $3,041,900 $3,502,300 $10,200 $30,000 $60,000 $150,000 $699,400 $493,700 50 $0 $0 $0 $0 50 $0 $0 50 $0 SO SO $0 50 so $0 $0 $0 $0 SO $0 $0 $0 $0 $258,600 $254,000 $280,300 $282,500 $210,600 $263,700 $224,400 $217,300 $231,800 $88,800 $217,500 $260,800 $14,100 $261,900 $213,200 13 Page 342 of 508 City of Shakopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 P108 UNIQUE TAXING AUTHORITY 60050160 0801/JKSN TWPASD 720 60050170 0801/JKSN TWPA SD 720 60050180 0801/JKSN TWPASD 720 60050190 0801/JKSN TWPA SD 720 60050200 0801/JKSN TWPASD 720 60050210 0801/JKSN TWP/ISD 720 60050220 0801/JKSN TWPASD 720 60050230 0801/JKSN TWPASD 720 60050231 0801/JKSN TWPASD 720 60050240 0801/JKSN TWPASD 720 60050250 0801/JKSN TWPASD 720 60050260 0801/JKSN iWPASD 720 60060010 0801/JKSN TWPASD 720 60060020 0801/JKSN IWPASD 720 60060030 0801/MN TWPASD 720 60060040 0801/JKSN TWPASD 720 60060050 0801/JKSN TWPASD 720 60060060 0801/JKSN TWPASD 720 60060070 0801/JKSN TWPASD 720 60060080 0801/JKSN TWP/ISD 720 60060100 0801/JKSN TWPA SD 720 60060110 0801/JKSN TWPASD 720 60060120 0801/JKSN TWPA SD 720 50060130 0801/JKSN TWPASD 720 60060140 0801/JKSN TWPASD 720 60060150 0801/JKSN TWPASD 720 60070010 0801/JKSN TWPASD 720 60070020 0801/11(SN TWPASD 720 60070030 0801/JKSN TWPASD 720 60070031 0801/JKSN TWPASD 720 60070050 0801/JKSN TWPASD 720 60070051 0801/JKSN TWPASD 720 60070060 0801/JKSN TWPA SD 720 60070070 0801/JKSN TWPASD 720 60070080 0801/JKSN TWPASD 720 60070091 0801/JKSN TWPASD 720 60070110 0801/JKSN TWP/ISD 720 60070/30 08017A5NTWPA SD 720 60070140 0801/JKSN I WPASD 720 60070150 0801/JKSN TWPASD 720 60070160 0801/JKSN TWPASD 720 60070170 0801/JKSN TWPASD 720 60070180 0801/JKSN TWP/ISD 720 60070190 0801/JKSN TWP/ISD 720 60070191 0801/JKSN TWP/ISD 720 60070210 0801/JKSN Twp/15D 720 60070220 0801/JKSN TWP/ISD 720 60080010 0801/JKSN TWP/ISD 720 60080020 0801/JKSN TWP/ISD 720 60080030 0801/JKSN TWPASD 720 CLASS INFO 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 958 Muni Srvc Other 100 Res 1 unit 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 983 Co Admin-TaxForf 100 Res 1 unit 100 Res 1 unit Page 2 of 11 EMV TMV 260,200 $246,400 264,200 $251,400 262,600 $250,300 14,100 $14,100 306,500 $296,800 269,600 $256,600 282,800 $274,200 7,100 $7,100 7,100 $7,100 264,500 $252,300 287,100 $277,000 240,000 SO 313,500 $304,500 44,600 $44,600 254,50D $240,200 281,200 $269,300 267,300 $254,100 271,500 $258,700 262,700 $249,100 344,800 $338,600 311,600 $302,400 353,400 $348,000 292,800 5281,900 281,000 $269,000 264,000 $250,500 263,200 $249,600 253,400 $239,000 267,900 $254,800 289,400 $280,100 1,400 $1,400 276,400 $264,000 7,100 67,100 260,500 $247,300 270,000 5259,000 21,200 $21,200 14,100 $14,100 234,700 $218,600 7,100 $7,100 257,300 $243,200 28,200 $28,200 269,500 $256,500 216,900 $199,200 302,400 $293,000 7,100 $7,100 238,300 $238,300 287,700 $276,400 339,400 $332,700 14,100 $O 506,100 $506,100 511,200 $511,200 14 Page 343 of 508 OW of Sha kopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID 8 UNIQUE TAXING AUTHORITY 60080040 0801/JKSN TWP/ISD 720 60080050 0801/JKSN TWP/ISD 720 60080070 0801/JKSN TWP/ISD 720 60080080 0801/JKSN TWP/ISD 720 60080090 0801/JKSN TWP/ISD 720 60080100 0801/JKSN TWP/ISD 720 60080110 0801/JKSN TWP/ISD 720 60080120 0801/JKSN TWP/ISD 720 60080130 0801/JKSN TWP/ISD 720 60080140 0801/JKSN TWP/ISD 720 60080150 0801/JKSN TWP/ISD 720 60080160 0801/JKSN TWP/ISD 720 60080170 0801/JKSN TWP/ISD 720 60080180 0801/JKSN TWP/ISD 720 60080190 0801/JKSN TWP/ISD 720 60080200 0801/JKSN TWP/ISD 720 60080220 0801/JKSN TWP/ISD 720 60080230 0801/JKSN TWP/ISD 720 60080232 0801/JKSN TWP/ISD 720 60080240 0801/JKSN TWP/ISD 720 60080250 0801/JKSN TWP/ISD 720 600802E0 0801/JKSN TWP/ISD 720 60080270 0801/JKSN TWP/I50 720 60090010 0801/JKSN TWP/ISC1 720 60090020 0801/JKSN TWP/ISD 720 60090030 0801/JKSN TWP/ISD 720 60090040 0801/JKSN TWP/ISD 720 60090050 0801/JKSN TWP/ISD 720 60090060 0801/JKSN TWPAS0 720 60090070 0801/JKSN TWP/ISD 720 60090080 0801/1K5N TWP/ISD 720 60090090 0801/JKSN TWP/I5D 720 60090100 0801/JKSN TWP/ISD 720 60100010 0801/JKSN TWP/ISD 720 60100020 0801/JKSN TWP/ISD 720 60100030 0801/JKSN TWP/ISD 720 60100040 0801/1K5N TWP/ISD 720 60100050 0801/JKSN TWP/ISD 720 60110010 0802/JKSN TWP/1513 720/LOW MN 60120010 0802/JKSN TWP/ISD 720/LOW MN 60120020 0802/JKSN TWP/ISD 720/LOW MN 60140010 0801/1K5N TWPASD 720 60140020 0801/JKSN TWP/ISD 720 60140030 0801/JKSN TWP/ISD 720 60150010 0801/JKSN TWP/I5D 720 60150020 0801/JKSN TWP/ISD 720 60150030 0801/JKSN TWP/ISD 720 60150040 0801/JKSN TWP/ISD 720 60150050 0801/JKSN TWP/ISD 720 60150060 0801/JKSN TWP/ISD 720 CLASS INFO 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit LOD Res 1 unit 100 Res 1 unit 140 Res V Land 140 Res V Land 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 140 Res V Land 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 30D Commercial 305 industrial 952 State Property 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 140 Res V Land 100 Res 1 unit Page 3 of 11 EMV TMV 140,000 $140,000 506,300 $506,300 323,900 $315,800 457,300 $457,300 295,700 $285,100 463,400 $463,400 133,200 $133,200 133,200 $133,200 14,100 $14,100 322,900 $314,700 28,200 $28,200 293,700 $285,400 38,500 $38,500 335,800 $332,900 7,100 $7,100 256,100 $241,900 277,000 $264,700 7,100 $7,100 251,800 $237,200 7,100 $7,100 21,200 $21,200 21,200 $21,200 21,200 $21,200 319,100 $310,600 390,200 $388,100 542,200 $542,200 402,000 $400,900 379,800 $376,700 497,600 $497,600 477,300 $477,300 498,900 $498,900 169,200 $169,200 407,900 $407,400 21,200 $21,200 243,200 $228,000 304,800 $4,800 285,900 $274,400 284,200 $272,500 420,000 $420,000 5,000 $5,000 14,900 SO 395,600 $394,000 303,200 $293,200 389,100 $386,900 280,600 $268,600 278,000 $265,800 319,900 $311,500 336,200 $329,200 120,600 $120,600 372,700 $369,000 15 Page 344 of 508 Crty of Shakopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PIO ft UNIQUE TAXING AUTHORITY 60150070 0801/JKSN TWP/ISD 720 60150080 0801/JKSN TWP/ISD 720 60150090 0801/JKSN TWP/ISD 720 60170010 0801/1116N TWP/ISD 720 60170020 0801/JKSN TWP/ISD 720 60170030 0801/JKSN TWP/ISD 720 60170040 0801/JKSN TWP/ISD 720 60170050 0801/JKSN TWP/ISD 720 60170060 0801/JKSN TWP/ISD 720 60170060 0801/JKSN TWP/ISD 720 60180010 0801/JKSN TWP/ISD 720 60180020 0801/JKSN TWP/ISD 720 60180030 0801/JKSN TWP/ISD 720 60180040 0801/JKSN TWPASD 720 60180040 0801/JKSN TWP/ISD 720 60180040 0801/JKSN TWP/1$0 720 60190010 0801/JKSN TWP/ISD 720 60190020 0801/JKSN TWP/ISD 720 60200010 0801/JKSN TWP/IS0 720 60200020 0801/JKSN TWP/ISD 720 60200030 0801/JKSN TWP/ISD 720 60200040 0801/JKSN TWP/ISD 720 60200050 0801/JKSN TWP/ISD 720 60200060 0801/11(SN TWP/193 720 60200070 0801/JKSN TWP/ISD 720 60200080 0801/JKSN TWP/ISD 720 60200090 0801/JKSN TWP/ISD 720 60200100 0801/JKSN TWP/ISD 720 60200110 0801/JKSN TWP/ISD 720 60200120 0801/JKSN TWP/ISD 720 60200130 0801/JKSN TWP/ISD 720 60200140 0801/JKSN TWP/ISD 720 60200150 0801/JKSN TWP/ISD 720 60200160 0801/JKSN TWPASD 720 60200170 0801/JKSN TWP/ISD 720 60210010 0801/JKSN TWP/ISD 720 60210020 0801/JKSN TWP/ISD 720 60210030 0801/JKSN TWIVISO 720 60210040 0801/JKSN TWP/ISD 720 60210050 0801/JKSN TWP/ISD 720 60210060 0801/JKSN TWP/ISD 720 60210070 0801/JKSN TWP/ISD 720 60210080 0801/JKSN TWP/ISD 720 60210090 0801/JKSN TWP/ISD 720 60210100 0801/JKSN TWP/ISD 720 60210110 0801/JKSN TWP/IS0 720 60210120 0801/JKSN TWP/ISD 720 60210130 0801/JKSN TWP/ISD 720 60210140 0801/JKSN TWP/ISD 720 60220010 0802/JKSN TWP/ISD 720/LOW MN CLASS INFO EMV TMV 100 Res 1 unit 372,800 $369,100 100 Res 1 unit 952 State Property 300 Commercial 300 Commercial 300 Commercial 300 Commercial 300 Commercial 300 Commercial 200 Agricultural 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 200 Agriculture I 200 Agricultural 211 Rural Vacant Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 140 Res V Land 140 Res V Land 958 Muni Srvc Other 300 Commercial Page 4 of 11 8,900 $8,900 2,700 $0 1,000,000 $1,000,000 320,000 $320,000 742,300 $742,300 946,60D $946,600 970,000 $970,000 78,400 $78,400 261,400 $261,400 517,400 $517,400 513,400 $513,400 563,000 $563,000 413,700 $413,700 128,700 $103,000 11,700 $11,700 264,600 $251,200 219,100 $201,600 350,600 $344,900 271,400 $258,600 433,200 $433,200 456,500 $456,500 426,100 $426,10D 494,300 $494,300 359,000 $354,100 421,00D $421,000 385,900 $383,400 418,600 $418,600 354,800 $349,500 455,800 $455,800 465,800 $465,800 516,600 $516,600 459,600 $459,600 440,100 $440,100 7,100 $7,100 402,800 $401,800 320,500 $312,100 307,600 $298,000 385,900 $383,400 386,700 $384,300 367,100 $362,900 398,500 $397,100 371,300 $367,500 397,200 $395,700 463,500 $463,500 705,200 $705,200 148,100 $148,100 140,600 $140,600 130,000 $0 320,200 $320,200 16 Page 345 of 508 City of Shakopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 IND # UNIQUE TAXING AUTHORITY 60230010 0802/JKSN TWP/ISD 720/LOW MN 60240010 0801/JKSN TWP/ISD 720 60250010 0801/JKSN TWP/15D 720 60250020 0801/JKSN TWP/1513 720 60250030 0801/JKSN TWP/15D 720 60250040 0801/JKSN TWP/ISD 720 60250050 0801/JKSN TWP/ISD 720 60250060 0801/JKSN TWP/ISD 720 60250070 0801/JKSN TWP/ISD 720 60250080 0801/JKSN TWP/ISD 720 60250090 0801/JKSN TWP/I5D 720 60250100 0801/JKSN TWP/ISD 720 60250110 0801/1K5N TWP/ISD 720 60250120 0801/JKSN TWP/ISD 720 60250130 0801/JKSN IWP/ISD 720 60250140 0801/JKSN TWP/I5D 720 60250150 0801/JKSN TWP/ISD 720 60260010 0801/11(5N TWP/ISD 720 60260020 080141(5N TWP/ISD 720 60270010 0801/JKSN TWP/ISD 720 60280010 0801/JKSN TWPASD 720 60300010 0801/JKSN TWP/ISD 720 60320010 0801/JKSN TWP/ISD 720 60330010 0801/JKSN TWP/ISD 720 60330020 0801/JKSN TWP/ISD 720 60330030 0801/JKSN TWP/ISD 720 60330050 0801/JKSN TWP/ISD 720 60330060 0801/JKSN TWP/150 720 60330070 0801/JKSN TWP/ISD 720 60330080 0801/JKSN TWP/ISD 720 60330090 0801/JKSN TWP/1SD 720 60330100 0801/JKSN TWP/ISD 720 60330110 0801/JKSN TWP/ISD 720 60330120 0801/JKSN TWP/ISD 720 60330130 0801/JKSN TWP/ISD 720 60340010 0802/JKSN TWP/ISD 720/LOW MN 60340020 0802/JKSN TWP/ISD 720/LOW MN 60340030 0802/JKSN TWP/ISD 720/LOW MN 60340040 0802/ASN TWP/ISD 720/LOW MN • 60350010 0802/1KsN TWP/ISD 720/LOW MN 60350020 0802/JK5N TWP/ISD 720/LOW MN 60360010 0801/JKSN TWP/ISD 720 60360020 0801/JKSN TWP/ISD 720 60360030 0801/1K5N TWP/ISD 720 60360040 0801/JKSN TWIVISD 720 60370010 0802/JKSN TWP/ISD 720/LOW MN 60370010 0802/JKSN TWP/ISD 720/LOW MN 60370030 0802/JKSN Twp/ISD 720/LOW MN 60370030 0802/JKSN TWP/ISD 720/LOW MN 60380010 0802/JKSN TWP/ISD 720/LOW MN CLASS INFO 300 Commercial 300 Commercial 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 10D Res 1 unit 100 Res 1 unit 100 Res 1 unit 140 Res V Land 140 Res V Land 956 Muni Srvc Ent 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 915 Church 305 Industrial 100 Res 1 unit 100 Res 1 unit 140 Res V Land 100 Res 1 unit 140 Res V Land 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 300 Commercial 300 Commercial 300 Commercial 300 Commercial 140 Res V Land 140 Res V Land 305 Industrial 200 Agricultural 200 Agricultural 200 Agricultural 305 Industrial 100 Res 1 unit 305 Industrial 300 Commercial 305 Industrial Page 5 of 11 TMV 1,640,000 $1,640,000 1,143,300 $1,143,300 512,700 $512,700 437,900 $437,900 198,800 $198,800 504,000 $504,000 444,000 $444,000 643,500 $643,500 474,800 $474,800 441,100 $441,100 544,900 $544,900 553,000 5553,000 666,800 $666,800 468,000 $468,000 2,100 $2,100 2,100 $2,100 100,000 $0 300 $300 7,100 $7,100 351,700 $346,100 383,800 $381,100 4,497,000 $0 1,675,000 $1,675,000 446,800 $446,800 580,300 $580,300 193,900 $193,900 942,800 $942,800 186,100 $186,100 643,800 $643,800 582,700 $582,700 812,700 $812,700 665,400 $665,400 557,700 $557,700 807,900 $807,900 586,200 $586,200 1,050,000 $1,050,000 50,000 $50,000 80,000 $80,000 200 $200 7,000 $7,000 4,300 $4,300 675,000 $675,000 348,400 $348,400 476,500 $476,500 225,200 $225,200 1,350,000 $1,350,000 300,000 $300,000 880,000 $880,000 60,000 $60,000 280,000 $280,000 17 Page 346 of 508 City of Shakopee Jackson Township EMV 84 TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PIO It UNIQUE TAXING AUTHORITY 60390012 0802/JKSN TWP/ISD 720/LOW MN 60400010 0802/JKSN TWP/ISD 720/LOW MN 60410010 0802/JKSN TWP/ISD 720/LOW MN 60410020 0802/JKSN TWP/150 720/LOW MN 60410030 0802/JKSN TWP/ISD 720/LOW MN 60410040 0802/JKSN TVVP/150 720/LOW MN 60410050 0802/JKSN TWP/ISD 720/LOW MN 60410060 0802/JKSN TWP/ISD 720/LOW MN 60410070 60410080 60410090 60410100 60410110 60410120 60410130 60410140 60410150 60410160 60410170 60410180 60410190 60410200 60410210 60410220 60410230 60410240 60410250 60410260 60410270 60410280 60410290 60410300 60410310 60410320 60410330 60410340 60410350 60410360 60410370 60410380 60410390 60410400 60410410 60410420 60410430 60410440 60410450 60410460 60420010 60420020 0802/JKSN TWp/iSo 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN Twp/i5D 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN Twp/i SD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/i SD 720/LOW MN 0802/JKSN TvVP/ISD 720/LOW MN 0802/JKSN TWPASD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN Twp/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TVVP/ISID 720/LOW MN 0802/JKSN TWP/i SD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0602/1K5N TWP/ISD 720/LOw MN 0802/JKSN TWP/I5D 720/LOW MN 0802/J KSN TWP/I SD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN Twp/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/i SD 720/LOW MN 0802/1K5N TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/1K5N TWP/ISD 720/LOW MN 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 CLASS INFO EMV TMV 305 Industrial 653,000 $653,000 105 Res 2-3 units 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 305 Industrial 100 Res 1 unit 305 Industrial 305 Industrial 100 Res 1 unit 305 Industrial 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 305 Industrial 100 Res 1 unit 305 Industrial 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 305 Industrial 100 Res 1 unit 962 T E Misc Co D 3 305 Industrial 100 Res 1 unit 100 Res 1 unit 305 Industrial 305 Industrial 305 Industrial 100 Res 1 unit 305 Industrial 100 Res 1 unit 305 Industrial 305 Industrial 305 Industrial 305 Industrial 305 Industrial 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 305 Ind ustrial 305 Industrial 100 Res 1 unit 305 Industrial 140 Res V Land 140 Res V Land Page 6 of 11 289,600 $289,600 85,500 $85,500 64,100 $64,100 103,300 $103,300 85,500 585,500 103,300 $103,300 68,400 $68,400 103,300 $103,300 102,600 $102,600 103,300 $103,300 99,200 599,200 98,300 $98,300 65,500 $65,500 71,800 $71,800 103,300 $103,300 68,400 $68,400 103,300 $103,300 102,600 $102,600 103,300 6103,300 85,500 $85,500 103,300 $103,300 64,100 $64,100 85,500 $85,500 70,600 $70,600 so 85,500 $85,500 85,500 $85,500 82,600 $82,600 68,400 $68,400 92,600 $92,600 85,500 $85,500 103,300 $103,300 92,600 $92,600 82,600 $82,600 85,500 $85,500 78,400 $78,400 78,400 $78,400 85,500 $85,500 124,000 6124,000 92,600 $92,600 103,300 $103,300 85,500 $85,500 92,600 $92,600 102,600 $102,600 124,000 $124,000 85,500 $85,500 85,500 585,500 201,600 $201,600 201,600 $201,600 18 Page 347 of 508 City of Shakopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PiO # 69020010 0802/JKSN TWP/ISD 720/LOW MN 69020020 0802/JKSN TWP/ISD 720/LOW MN 69020020 0802/JKSN TWP/ISD 720/LOW MN 69020030 0802/JKSN TWP/ISD 720/LOW MN 69030010 0802/JKSN TWP/ISD 720/LOW MN 69030020 0802/JKSNTWP/ISD 720/LOW MN 69030030 0802/JKSN TWP/ISD 720/LOW MN 69030031 0802/JKSN TWP/ISD 720/LOW MN 69090010 0802/JKSN TWP/ISD 720/LOW MN 69090020 0802/JKSN TWP/ISD 720/LOW MN 69090030 0802/JKSN TWP/ISD 720/LOW MN 69100010 0802/1KSN TWP/ISD 720/LOW MN 69100020 0802/JKSN TWP/IS0 720/LOW MN 69100020 0802/JKSN TWP/ISD 720/LOW MN 69100021 0802/JKSN TWP/ISD 720/LOW MN 69100030 06021JKSN TWP/ISD 720/LOW MN 69100040 0802/JKSN TWP/ISD 720/LOW MN 69100050 0802/JKSN TWP/ISD 720/LOW MN 69100060 0802/JKSN TWP/ISO 720/LOW MN 69100070 0802/JKSN TWP/ISO 720/LOW MN 69100090 0802/JKSN TWP/isD 720/LOW MN 69100100 0802/JKSN TWP/ISD 720/LOW MN 69100110 0802/JKSN TWP/ISD 720/LOW MN 69100120 0802/JKSN TWP/IS0 720/LOW MN 69100130 0802/JKSNTWP/ISD 720/LOW MN 69100140 0802/JKSN 1WP/ISD 720/LOW MN 69100141 0802/JKSN TWP/ISD 720/LOW MN 69100150 0802/JKSN TWP/ISO 720/LOW MN 69100160 0802/JKSN TWP/IS0 720/LOW MN 69100170 0802/JKSN TWP/ISD 720/LOW MN 69100171 0802/JKSN TWP/ISD 720/LOW MN 69100180 0802/JKSN TWP/ISD 720/LOW MN 69100180 0802/JKSN TWP/ISD 720/LOW MN 69100190 0802/JKSN TWP/ISD 720/LOW MN 69100200 0802/JKSN TWP/ISD 720/LOW MN 69100210 0802/JKSN TWP/ISD 720/LOW MN 69100210 0802/JKSN TWP/ISL 720/LOW MN 69100210 0802/JKSN TWP/ISD 720/LOW MN 69100220 0802/JKSN TWP/ISD 720/LOW MN 69110030 0802/JKSN TWP/ISD 720/LOW MN 69110030 0802/JKSN TWP/ISD 720/LOW MN 69110050 0802/JKSN TWP/ISD 720/LOW MN 69110060 0802/JKSN TWP/ISD 720/LOW MN 69110070 0802/1KSN TWP/ISD 720/LOW MN 69110080 0802/JKSN TWP/IS0 720/LOW MN 69110090 0802/JKSN TWP/ISD 720/LOW MN 69110100 0802/JKSN TWP/ISD 720/LOW MN 69110110 0802/JKSN TWP/ISD 720/LOW MN 69110120 0802/JKSN TWP/ISD 720/LOW MN 69110131 0802/JKSN TWP/ISD 720/LOW MN UNIQUE TAXING AUTHORITY CLASS INFO 305 Industrial 200 Agrlcultural 211 Rural Vacant Land 981 State Acquired 981 State Acquired 981 State Acquired 200 Agricultural 981 State Acquired 981 State Acquired 305 Industrial 981 State Acquired 981 State Acquired 200 Agricultural 211 Rural Vacant Land 981 State Acquired 981 State Acquired 305 industrial 981 State Acquired 300 Commercial 981 State Acquired 200 Agricultural 981 State Acquired 200 Agricultural 958 Muni Srvc Other 952 State Property 952 State Property 952 State Property 952 State Property 350 MH Park 350 MH Park 350 MH Park 100 Res 1 unit 350 MH Park 350 MH Park 952 State Property 200 Agricultural 200 Agricultural 211 Rural Vacant Land 958 Muni Srvc Other 300 Commerclal 365 Pub Util Mach 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 952 State Property 952 State Property 100 Res 1 unit 100 Res 1 unit 952 State Property 305 Industrial Page 7 of 11 EMV TMV 3,500 $3,500 245,000 $245,000 33,100 $33,100 2,600 $0 74,000 $0 20,600 $0 112,000 $112,000 47,200 $0 275,700 $D 201,800 $201,800 14,700 $0 48,600 $0 17,500 $17,500 19,700 $19,700 20,700 $0 17,600 $0 783,000 $783,000 15,200 $0 1,600,000 $1,600,000 69,800 $0 331,100 $103,500 31,000 $0 330,700 $157,100 100 $0 21,600 $0 400 $0 400 $0 800 $0 1,379,300 $1,379,300 778,400 $778,400 328,400 $328,400 174,400 $174,400 1,029,800 $1,029,800 573,500 $573,500 6,200 $0 772,500 $475,100 153,700 $130,300 51,300 $51,300 100 50 36,600 $36,600 12,800 $12,800 233,800 $217,600 242,600 $227,200 215,100 $197,200 100 $0 1,200 $0 226,700 $209,900 240,100 $224,500 5,900 $0 351,900 $351,900 19 Page 348 of 508 P109 69110140 69110141 69110142 69110150 69110171 69110180 69130031 69130033 69130040 69130041 69130042 69130061 69130070 69130090 69130100 69130101 69130102 69130102 69130102 69130103 69130104 69130110 69130120 69130140 69130141 69130142 69130143 69130144 69130144 69130145 69130146 69130147 69130148 69130150 69140042 69140050 69140060 69140070 69140080 69140100 69140120 69140130 69140140 69140150 69140150 69140150 69140151 69140160 69140170 69150010 City of Shakopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 UNIQUE TAKiNG AUTHORITY 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/JKSN TWP/ISD 720/LOW MN 0802/iKSN TWP/ISD 720/LOW MN 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/1KSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0802/JKSN TWP/ISD 720/LOW MN CLASS FNFO 305 industrial 305 Industrial 300 Commercial 305 Industrial 952 State Property 981 State Acquired 100 Res 1 unit 100 Res 1 unit 915 Church 100 Res 1 unit 100 Res 1 unit 140Res VLand 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 200 Agricultural 200 Agricultural 211 Rural Vacant Land 200 Agricultural 140 Res V Land 300 Commercial 952 State Property 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 200 Agricultural 200 Agricultural 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 952 State Property 100 Res 1 unit 952 State Property 100 Res 1 unit 200 Agricultural 200 Agricultural 100 Res 1 unit 958 Muni Srvc Other 200 Agricultural 200 Agricultural 211 Rural Vacant Land 300 Commercial 100 Res 1 unit 100 Res 1 unit 200 Agricultural Page 8 of 11 EMV TMV 1,357,000 $1,357,000 2,105,000 $2,105,000 150,000 $150,000 31,400 531,400 11,200 $0 5,600 $0 371,300 $367,500 800 $800 1,070,100 $0 295,400 $284,700 587,100 5587,100 7,100 $7,100 276,000 6276,000 14,100 $14,100 541,600 $541,600 431,900 $431,900 149,900 $149,900 227,200 $210,400 27,000 $27,000 253,900 6253,800 600 $600 240,900 $240,900 95,400 $0 438,700 $438,700 423,600 $423,600 640,900 5640,900 321,000 $312,600 287,000 $133,400 178,900 $168,300 569,100 $569,100 387,400 $385,000 498,000 $498,000 444,800 $444,800 365,400 $365,400 313,600 $313,600 600 $0 206,000 $187,300 2,800 $0 212,400 $194,300 1,439,600 $543,900 540,000 $188,400 439,800 $439,800 600 $0 1,695,100 $560,700 159,000 $136,100 204,800 $204,800 430,000 5430,000 266,100 $252,800 282,800 $271,000 870,700 $309,600 20 Page 349 of 508 PID # City of Shakopee Jackson Township EM V & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 UNIQUE TAXING AUTHORITY 69150010 0802/JKSN TWP/ISD 720/LOW MN 69150010 0802/JKSN TWP/ISD 720/LOW MN 69150010 0802/JKSN TWP/ISD 720/LOW MN 69150011 0801/JKSN TWP/ISD 720 69150020 0802/JKSN TWP/ISD 720/LOW MN 69150020 0802/JKSN TWP/ISD 720/LOW MN 69150030 0802/JKSN TWP/ISD 720/LOW MN 69150031 0801/JKSN TWP/ISD 720 69150040 0802/JKSN TWP/ISD 720/LOW MN 69150040 0802/JKSN TWP/ISD 720/LOW MN 69150040 0802/JKSN TWP/ISD 720/LOW MN 69150050 0801/JKSN TWP/ISD 720 69150060 0801/JKSN TWP/ISD 720 69150060 0801/JKSN TWP/ISD 720 69150070 0801/JKSN TWP/ISD 720 69150080 0801/JKSN TWP/ISD 720 69150091 0802/JKSN TWP/ISD 720/LOW MN 69150110 0802/JKSN TWP/ISD 720/LOW MN 69150120 0801/JKSN TWP/ISD 720 69150130 0801/JKSN TWP/ISD 720 69150130 0801/JKSN TWP/ISD 720 69150140 0801/JKSN TWP/ISD 720 69150150 0801/JKSN TWP/ISD 720 69150151 0801/JKSN TWP/ISD 720 69150152 0801/JKSN TWP/ISD 720 69150153 0801/JKSN TWP/ISD 720 69150154 0801/JKSN TWP/ISD 720 69150160 0801/JKSN TWP/ISD 720 69150170 0801/JKSN TWP/ISD 720 69150180 0801/1KSN TWP/ISD 720 69150190 0801/JKSN TWP/ISD 720 69150200 0801/JKSN TWP/ISD 720 69150210 0801/JKSN TWP/ISD 720 69150220 0801/JKSN TWP/ISD 720 69150230 0801/JKSN TWP/ISD 720 69150240 0801/JKSN TWP/ISD 720 69150250 0801/JKSN TWP/ISD 720 69150260 0801/JKSN TWP/ISD 720 59150270 0801/JKSN TWP/ISD 720 69150270 0801/JKSN TWP/ISD 720 69150280 0801/JKSN TWP/IS0 720 69150290 0801/JKSN TWP/ISD 720 69150300 0801/JKSN TWP/ISD 720 69150310 0801/JKSN TWP/ISD 720 69150340 0801/JKSN TWP/ISD 720 69150341 0801/JKSN TWP/ISD 720 69150342 0802/JKSN TWP/ISD 720/LOW MN 69150344 0801/JKSN TWP/ISD 720 69150360 0801/JKSN TWP/ISD 720 69150390 0801/JKSN TWP/ISD 720 CLASS INFO 100 Res 1 unit 305 Industrial 211 Rural Vacant Land 200 Agricultural 211 Rural Vacant Land 305 Industrial 300 Commercial 200 Agricultural 300 Commercial 365 Pub Utll Mach 355 Pub Util L & S 350 MH Park 100 Res 1 unit 350 MH Park 350 MH Park 300 Commercial 350 MN Park 350 MN Park 140 Res V Land 200 Agricultural 200 Agricultural 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 952 State Property 952 State Property 952 State Property 952 State Property 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 952 State Property 952 State Property 952 State Property 100 Res 1 unit 200 Agricultural 200 Agricultural 100 Res 1 unit 952 State Property 100 Res 1 unit 100 Res 1 unit 200 Agricultural 953 Co Srvc Ent 300 Commercial 300 Commercial 300 Commercial 958 Muni Srvc Other Page 9 of 11 EMY TMV 118,200 $118,200 586,600 $586,600 568,200 $568,200 42,800 $16,200 210,000 5210,000 67,500 567,500 435,000 $435,000 1,632,100 $587,400 1,141,300 $1,141,300 12,763,400 $12,763,400 772,100 $772,100 110,000 $110,000 290,000 $290,000 676,700 $676,700 222,800 $222,800 7,800 $7,800 154,000 $154,000 408,200 $408,200 303,500 $303,500 246,000 $113,400 368,500 $364,400 315,700 $306,900 694,800 $694,800 597,100 $597,100 169,600 $169,600 312,300 $312,300 553,200 $553,200 800 50 500 $0 800 $0 700 $0 282,500 $270,700 253,900 $239,500 236,100 $220,100 800 SO 1,200 $0 75,000 $0 354,100 $348,700 1,036,000 $399,500 178,900 $157,800 339,100 $332,400 600 $0 237,900 $222,100 215,000 $197,900 482,000 $482,000 1,178,100 $0 420,000 $420,000 261,400 5261,400 313,700 $313,700 142,400 $0 21 Page 350 of 508 City of Shakopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PIO* UNIQUE TAXING AUTHORITY 69150400 0802/JKSN TWP/ISD 720/LOW MN 69150410 0802/JKSN TWP/ISD 720/LOW MN 69150410 0802/JKSN TWP/ISD 720/LOW MN 69150420 0802/JKSN TWP/ISD 720/LOW MN 69150441 0801/JKSN TWP/ISD 720 69150444 0801/JKSN TWP/ISD 720 69230011 0801/11(5N TWP/ISD 720 69230012 0801/JKSN TWP/ISD 720 69230012 0801/JKSN TWP/ISD 720 69230020 0801/JKSN TWP/I5D 720 69230020 0801/JKSN TWP/I5D 720. 69230030 0801/JKSN TWP/ISD 720 69230031 0801/JKSN TWP/ISD 720 69230040 69230050 69230060 69230070 69230080 69230090 69230090 69230100 69230110 69230111 69230112 69230120 69230120 69230130 69230131 69230132 69230133 69230140 69240020 69240030 69240040 69240050 69240050 69240050 69240060 69240060 69240070 69240070 69240080 69240090 69240091 69240092 69240100 69240110 69240110 69240111 69240/11 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 osovinN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JK5N TWP/iSD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/150 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 72Q 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/150 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/IKSN TWIVISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/1K5N TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/1K5N TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISU 720 CLASS INFO EMV TMV 300 Commercial 910,000 $910,000 100 Res 1 unit 300 Commercial 300 Commercial 300 Commercial 300 Commercial 200 Agricultural 200 Agricultural 200 Agricultural 200 Agricultural 200 Agricultural 200 Agricultural 200 Agricultural 100 Res 1 unit 200 Agricultural 200 Agricultural 958 Muni Srvc Other 200 Agricultural 200 Agricultural 200 Agricultural 100 Res 1 unit 200 Agricultural 100 Res 1 unit 955 Co Srvc Other 200 Agricultural 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 958 Muni Srvc Other 10D Res 1 unit 100 Res 1 unit 901 Schools -Public 901 Schools -Public 901 Schools -Public 200 Agricultural 200 Agricultural 211 Rural Vacant Land 200 Agricultural 200 Agricultural 200 Agricultural 211 Rural Vacant Land 901 Schools -Public 901 Schools -Public 901 Schools -Public 100 Res 1 unit 100 Res 1 unit 200 Agricultural 200 Agricultural 100 Res 1 unit 211 Rural Vacant Land Page 10 of 11 35,000 $35,000 355,000 $355,000 12,400 512,400 883,500 $883,500 584,600 $584,600 669,600 $669,600 734,100 $267,100 167,300 $145,100 355,900 $143,000 312,700 $303,600 935,400 $354,200 288,000 $108,800 358,20D $3.53,300 327,000 $124,400 253,500 $96,200 1,622,100 $0 1,026,000 $387,600 1,229,700 $479,100 131,200 $105,800 457,800 $457,800 1,120,800 $405,400 179,500 5179,500 155,000 $0 1,412,000 $517,400 124,100 $124,100 446,100 $446,100 349,300 $343,500 3,000 $0 430,700 $430,700 553,400 $553,400 148,800 $0 168,300 $0 510,000 $0 493,100 $493,100 209,700 $191,300 93,100 $93,100 182,400 $182,400 138,600 $113,800 142,400 $142,400 93,000 $93,000 279,900 $0 539,400 50 301,700 $0 440,800 $440,800 325,700 $317,800 206,100 $206400 308,500 $8,500 387,100 $384,700 183,100 $183,100 22 Page 351 of 508 PID # 69240112 69240112 69240113 69240115 69240120 69240120 69240121 69240122 69240123 69240130 69240140 69240150 69240160 69240170 69240180 69240190 69240190 69240193 69240194 69240195 69240200 69240210 69240220 69240240 69240250 69240281 City of Shakopee Jackson Township EMV & TMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 UNIQUE TAXING AUTHORITY 0801/1KSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWPASD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/I5D 720 0801/JKSN TWP/ISD 720 0801/1K5N TWP/ISD 720 0801/JKSN TWP/I5D 720 0801/JKSN TWP/I5D 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/150 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/i SD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 0801/JKSN TWP/ISD 720 CLASS INFO EMV TMV 200 Agricultural 232,700 $232,700 200 Agricultural 258,300 $244,300 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 300 Commercial 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 320 Q Golf Course 981 State Acquired 100 Res 1 unit 100 Res 1 unit 320 Q Golf Course 300 Commercial 320 Q Golf Course 320 Q Golf Course 320 Q Golf Course 100 Res 1 unit 100 Res 1 unit 100 Res 1 unit 958 Muni Srvc other 981 State Acquired 100 Res 1 unit Page 11 of 11 211,500 $211,500 578,400 $578,400 570,200 $570,200 339,600 $339,600 415,800 $415,800 345,300 $339,100 501,100 $501,100 629,800 $629,800 588,000 $588,000 45,000 $45,000 1,800 $0 363,700 $359,200 544,100 $544,100 145,000 $145,000 80,000 $80,000 115,000 $115,000 115,000 $115,000 45,000 $45,000 290,700 $279,600 76,000 $76,000 334,700 $327,600 3,500 $0 9,400 $0 4264200 $426,200 $ 178 699,100 $ 154,228,000 IIMMEIMIROMMAMIMMIMIMP . . 23 Page 352 of 508 IS �miwWM�Vml4"I��uW4 SHAK.OPE E City Initiated Staging of Jackson Township Annexation May 31.2017 EXHIBIT B 44, 24 Page 353 of 508 EXHIBIT C QUALIFYING SUBDIVISIONS Fox Meadows Estates Glen Ellyn Park Glen Ellyn Park 2nd Addition Glen Ellyn Park 3rd Addition Glen Ellyn Park 4th Addition Glen Ellyn Park 5th Addition Jackson Hills Preserve South (Jackson portion) Pribble Pond Southview Heights lst Addition Theis Addition Theis 2nd Addition Wild Rose Estates Preserve at Stonebrook Clearview Acres (Jackson portion) Kubes 1st Addition Pondview Park Estates Pondview Park Estates 2nd Addition RLS 205 RLS 211 25 Page 354 of 508 9.B.2. AKO Shakopee City Council June 2, 2020 FROM: Kyle Sobota, Senior Planner TO: Mayor and Council Members Subject: Preliminary / Final Plat of Prairie Pointe and Prairie Pointe Planned Unit Policy/Action Requested: • Adopt Resolution No. R2020-077, a resolution approving the Preliminary and Final Plat of Prairie Pointe. • Adopt Ordinance No. 02020-005, an ordinance approving the rezoning of the area of proposed Lot 2, Block 1 Prairie Pointe from B-1 Highway Business to PUD Zoning • Adopt Ordinance No. 02020-006, an ordinance approving the Prairie Pointe Planned Unit Development. Recommendation: Approve all three requests. Discussion: Site Information: Address: 1760 4th Avenue East Applicant: Matt Soucek, Beacon Interfaith Housing Collaborative Property Owner: Shakopee Council 1685 Home Lot Area: 3.37 Acres (Proposed 1.34 and 2.03 acre lots) Current Zoning: B-1, Highway Business 2040 Comp. Plan: Mixed Residential (6-30 units / acre) Matt Soucek, representing Beacon Interfaith Housing Collaborative, (Beacon) has applied for the preliminary and final plat of Prairie Pointe and for a Planned Unit Development (PUD) of Prairie Pointe. The current zoning of the property is B-1, Highway Business, which allows for commercial uses like restaurants, retail / service businesses, offices, vehicle repair, or mixed use developments. The applicant is proposing to develop a 46-unit apartment building on the vacant portion the property, and sell the existing building to Resonate Church, which currently meets at West Middle School. A conditional use permit Page 355 of 508 request for a place of worship for Resonate Church was approved by the Board of Adjustment and Appeals for the use of the existing Knight of Columbus building on May 7th. The property is unplatted and the current home of the Knights of Columbus Hall and the applicant is proposing to plat the property to create one 1.34 acre lot for the existing building and a second 2.03 acre lot to allow the construction of a three level, 46- unit apartment building (see attached site plan / plat drawings). Per submitted materials, Beacon (www.beaconinterfaith.org) is a collaborative of congregations united in action to create homes and advance equitable housing for low income families, seniors, young adults, or those experiencing homelessness. Beacon owns and operates over 700 units of housing that is affordable in the Twin Cities metro area. Beacon partners with Volunteers of America (www voamn.org), which provides a wide array of health and human services to support residents of their properties. Residents of Prairie Pointe would earn 30% of the area median income or less. The anticipated residents of this development are single -parent families (see attached narrative). Beacon chose to pursue development of this property for supportive family apartments because of the following reasons: • Close proximity to employers along 4th Avenue and in Valley Green Industrial Park like Amazon, My Pillow, RTL Construction, and LeGrand AV and other major employers in Valley Green Industrial Park. • Access to MVTA Bus Route 497, which stops at 4th Avenue and Marschall Road, approximately 1/3 mile west of the intersection of 4th Avenue and Sarazin Street and is accessible by trail / sidewalk. • The proximity to Prairie Bend Park about 800' from the site. • Land use compatibility with a church for shared parking and potential use by residents. • The site is guided by the comprehensive plan for densities of 6-30 units / acre. The proposed building is 3 levels and the proposed unit mix is: • 1 Bedroom: 8 units • 2 Bedroom: 26 units • 3 Bedroom: 12 units An existing comparable sized and configured building in Shakopee to Prairie Pointe is The Henderson, a project developed by Scott County CDA in 2015, located at 500 Sommerville Street. The Henderson is 51 units on a 1.23 acre lot (41 units / acre density) and has garage parking, but is on a lot that is 60% of the size of the proposed Prairie Pointe lot and across the street from single-family residential housing. Because of the garage and topography of the lot, The Henderson varies from 3-4 levels above ground. The proposed density of Page 356 of 508 Prairie Pointe is 22.7 units / acre. Because this property is intended for families with children, it has a larger percentage of two and three bedroom units than recent market rate apartment buildings developed and proposed in Shakopee. The applicant has completed a parking study for their proposed development (attached). The proposed parking for the entire site, including the church is below: • 52 spaces on the church lot for exclusive church use (58 is required for a 200 seat church) • 35 spaces on the Beacon lot for church exclusive use • 20 shared spaces with no exclusive use for either user • 35 spaces exclusive use for Beacon Based on the unit mix, the parking requirement in City Code is below: • 8 one bedroom units (8 x 1.5 spaces): 12 spaces • 26 two bedroom units (26 x 2 spaces): 52 spaces • 12 three bedroom units (12 x 2.5 spaces): 30 spaces • Total: 94 spaces Beacon is proposing 55 parking spaces. The City Code requirement equals 2.04 spaces per unit. Based on City Code, if both uses are at peak parking utilization at the exact same time there would be a deficiency of 10 parking spaces, or 7% above what is provided. From discussions with the applicant, the applicant's typical residents of supportive housing are single parent households and have only one vehicle. The additional bedrooms in a unit generally mean additional children, not drivers and vehicles because they can't afford or don't have drivers for additional vehicles. Beacon has residents of their properties register their cars and they do random checks for parking compliance. The applicant has stated they would issue parking permits if necessary. In the case Beacon residents occupied all 20 of the shared spaces, there would be 87 spaces remaining for the church, which is 29 spaces above the City Code requirement. Resonate Church has agreed to the proposed parking plan for the site. Based on infot -nation provided by the applicant from their other properties, the amount of on -site parking is between 0.9 and 1.1 spaces per unit, with car ownership in suburban Hennepin County averaging 0.75 vehicles / unit. For other similar properties surveyed in Scott and Carver County, the vehicle ownership averaged 1.2 vehicles / unit. Staff believes a situation of peak parking utilization is highly unlikely for the following reasons: • Full occupancy of apartments is generally considered 95%, at any given time 2-3 units are likely vacant in a 46 unit building. Page 357 of 508 • It is likely that some of the residents of Prairie Pointe will be working on Sunday mornings. • The church is unlikely to have 200 people attending each service. • The anticipated car ownership rate for suburban supportive housing is 58% of the City Code requirement for vehicles per unit. Site Development: The applicant is proposing a three -level pitched roof building with brick, fiber -cement lap siding, and fiber cement panels as exterior material (see attached elevations). The proposed materials comply with City Code requirements for aesthetics and durability. As proposed, the building has varying wall depths on different levels, but the depth of the variation does not currently comply with the depth requirement in City Code. However, staff understands that having balconies in family housing with many children is not reasonable from a safety standpoint. The proposed roof variation meets City Code for roof variation. The current parking lot has no parking lot islands or landscaping. The proposed development complies with the landscaping ordinance, which requires parking lot islands with trees. The applicant is proposing a playground on the site. The amount of proposed landscaping on the site complies with the landscaping ordinance. For a PUD, the City Council must consider whether the proposed site is indeed a candidate for a PUD based on the PUD ordinance and whether the proposed development is acceptable as a PUD for the specific site. The criteria from the City Code on PUDs is below: Criteria for granting a planned unit development application. The City Council shall base its decision to grant or deny an application for a planned unit development upon the following factors, and shall adopt findings relative to these criteria. • Is the proposed development consistent in all respects with the comprehensive plan and with this section; This proposed development is consistent with the allowed density of the Mixed Residential classification. • Is the proposed development, including deviations from design standards compatible with surrounding land uses; The site is currently zoned B-1, Highway Business and is located between light industrial development north of 4th Avenue and single-family houses and adjacent to a townhouse development zoned R-3, multiple -family residential. • Does the proposed development provide adequate open space, circulation, pedestrian Page 358 of 508 orientation, parking, recreation, screening, and landscaping; The proposed development meets the open space requirement for their lot and is connected to sidewalks and proposes adequate circulation with the existing parking lot. • If the primary function of the PUD is to encourage development which will preserve and enhance the worthwhile, natural terrain characteristics, it should not force intense development to utilize all portions of a given site in order to arrive at the maximum density allowed. In evaluating each individual proposal, the recognition of this objective will be a basic consideration in granting approval or denial; The proposed development is a redevelopment of a commercially zoned parcel and is below the maximum density of the comprehensive plan and maximum height. • Whether there exists an overall compatibility of land uses and overall appearance and compatibility of individual buildings to other site elements or to surrounding development: however, the architectural style of buildings shall not solely be a basis for denial or approval of a plan; and/or The applicant is proposing to plant evergreens along the south side of their lot and there are several significant mature trees on the adjacent lots to the south that screen this site. • Whether the proposed PUD plan would afford a greater general public benefit than would be realized under the underlying zoning district and/or general zoning provisions. The proposed PUD allows for a development of housing that is affordable. A goal of the comprehensive plan is to providing a mix of housing types and price levels. This project fills a need that is not currently met in the region. City staff has received a significant amount of feedback on this development on the city website and emails. The feedback received at the time of drafting this report is attached as attachments and is sorted by support or those opposed to the development. Budget Impact: N/A ATTACHMENTS: • Location Map o Narrative / About Beacon • Site Plan / Landscape Plan • Floor Plans o Building Elevations o Preliminary Plat Drawing o Final Plat Drawing • Parking Study • Shared Parking Diagram o Trip Generation Memo • Website Comments / Emails Supporting Project Page 359 of 508 D Website Comments / Emails Opposing Project D Beacon's Presentation Slides From PC Meeting D Fire Dept Comments D Engineering Department Comments D Resolution No. R2020-077 (Plat) D Ordinance No. 02020-005 (Rezoning) D Ordinance No. 02020-006 (PUD) Page 360 of 508 IIII III11m,,,� 01111i'IIIN 4 „IluuuNlluuNlB," '011 001Illn[lll,, 61IIIIII„,W'MIWIWIWIWI1!IIW"d 1 I'0IIIVNNjiijNluligVit/11101,,1,, d11, ,,,,,111111.11.1.000011.11.1.1.1.100.1. u SI IAKOPE E May 1, 2020 NIII,i1emu u;1 m 4011 II uI mII NV .� ., �MMIIIIIIIII ��, I .. 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"' I ,III„IIII„, II ptveIII 1 MIVMflVINIWWWWWm mmm„ III.N' III „IIII cityMaps Page 361 of 508 IN"Wp"BBB',,,,,,,, Wii'N'IN VI IW111WIWI MNN „ JI .IIII..II II iiiliii it iiiiii IIIIiiNIINIII111111" po 1I III, II1 I IIIIIIIIII VIII... ree'nW lm e'm� III W 1111 „ nu, uI, muuIIIII gII1199 IllIIIII011111 000 'NII„IILI 1 VI 111 VN1.1111 1 nu41 111111001111111111111111111111 WWVIW IoomWl Idrrrirr rsfr�r8r frdoa 9 rrdrv^r,alr, IT\ .5 INT UFF IT it ifOU,LhdG. L A'q VN^", Prairie Pointe Apartments Multi -Purpose Planning Application - Narrative February 25, 2020 Beacon Interfaith Housing Collaborative, a nonprofit development of multifamily housing based in St. Paul, MN, proposes to construct a 46-unit apartment building at the intersection of 4th Avenue East and Sarazin Street in the City of Shakopee, on the current site of the Knights of Columbus Assembly Hall. The development has been given the name Prairie Pointe Apartments. Beacon Interfaith Housing Collaborative was formed in 1999 and currently owns and operates over 700 units of affordable housing in the Twin Cities Metro Area. Beacon Interfaith Housing Collaborative is requesting a Planned Unit Development (PUD) designation for the proposed development site, along with combined plat approval and planning commission and city council review. The overall redevelopment proposal splits the existing Knights of Columbus property into two parts, with the northerly portion (Parcel A) to be developed by Resonate Church using the existing Knights of Columbus assembly building and the southerly portion (Parcel B) to be developed by Beacon Interfaith as new multifamily housing. Beacon Interfaith is only requesting PUD designation for the southerly portion of the site that it will develop. Resonate Church will separately apply for a conditional use permit for its proposed use of the northerly portion. The proposed building will be 3-story with pitched roof with a total of total of 90 surface parking spaces, a 1.96 to 1 parking ratio. The proposed development being under PUD designation, the PUD process informed by a parking study will determine the parking requirement. We anticipate that the number of parking spaces determined to be required thorough the parking study and PUD process will be less than 90 spaces. The developer of Parcel A, Resonate Church, has indicated that their proposal will require a total of 58 parking spaces and their site as shown on the site plan has a total of 52 spots. Six parking spaces on the northerly edge of Parcel B will be designated as shared parking spaces, to be used by both properties. A shared parking agreement, taking use and maintenance considerations into account, will be recorded with the county relating to these 6 parking spaces. To the extent that the parking study and PUD agreement will allow for it, some of the parking spaces on Parcel B will be made available, through a private shared parking agreement, for use by Resonate Church as overflow parking on their busiest days of the year. The proposed development will exceed city standards and the requirements for PUD designation in the following ways: Page 1 Page 362 of 508 ■ Sustainable Design — Beacon is committed to developing environmentally sustainable housing. Our designs have consistently exceeded MN Energy Code and the requirements of rigorous sustainability standards such as the SB 2030 - B3 Sustainable Building 2030 Energy. The project will feature sustainable design and comply with the MN Overlay to the Green Community Criteria. The methods for complying include installing water conversing fixtures and Energy Star rated appliances and fixtures, ensuring that landscaped areas are planted with native or adapted species, reducing indoor allergens by including cleanable flooring materials and installing a ventilation system, providing a dedicated area for recycling collection, and using low VOC adhesives and paints. Energy efficiency will be demonstrated by certifying the project through the Energy Star New Homes program. Several buildings we recently completed are insulated in excess of building code and Minnesota Green Community Standards. Our newest development, Great River Landing in Minneapolis, includes a 40kW rooftop photovoltaic solar array. Beacon is conscious of the long-term benefit to our tenants and to building economics of lower energy usage and healthy construction. Thus, we use lower volatile organic compound (VOC) materials and advanced ventilation systems. ■ Storm Water Management — the development will include a series of rain gardens that will capture the additional hard -surface runoff and filter it to remove suspended solids prior to discharge into the city storm sewer system. Such discharge will exceed state NPDES water quality standards. The development will reduce the overall rate of storm water discharge to city infrastructure from what exists on the current site, despite the fact that the overall amount of hard surface on the site will increase slightly, and will increase the quality of the water discharged. We have included rain -water reuse irrigation systems in several of our developments and will do so here if it is feasible. We will seek to use permeable concrete and pavers in hard surface areas if feasible. ■ Parking - our parking solution and collaboration with the developer of Parcel A reduces the total impervious site area that would be required for the two separate uses if considered separately under the current zoning. This provides for less overall storm water runoff and a higher amount of open space than would otherwise be feasible. Our proposal for Prairie Pointe Apartments is consistent with the city's vision for construction of new housing, as detailed in its 2040 Comp Plan. The plan notes that a diverse portfolio of housing types, price points and locations will strengthen Shakopee's competitiveness in the marketplace. Much of the multifamily housing developed in the city over the last decade has been geared toward those able to afford at or above market rate housing. Our development will target families earning 30% of the area median income (AMI) or less, or very low-income families, thus helping to provide some of the diversity called for in the plan. The plan notes that as a member of the metropolitan region and to accommodate expected future growth in the city, 548 units of housing affordable to household incomes of 30% AMI will be needed by 2040. Our development will help the city to meet this goal. Page 2 Page 363 of 508 The 2040 Comp Plan shows the specific parcel for the proposed development as being guided toward mixed -use residential, which is very much in line with our proposal. Mixed use definitions from the plan indicate that multifamily residential is one of the primary uses for these districts. The definitions state that up to 30 dwelling units is the allowable density level within mixed -use districts, our development proposal will entail 22.77 units per acre. The floor area ratio range listed in the city's mixed -use definitions is 0.4 to 1.5, our development will have a 0,67 floor area ratio. The 2040 Comp Plan calls for developments within the mixed -use areas to have automobile access with sidewalk system and trail connections. The area around the site features a sidewalk along Sarazin Street between the site and Eagle Creek Boulevard, connecting to Prairie Bend neighborhood park and trail system, and along 4' to Marschall Road, which will provide residents with access to the bus stop that serves Route 497 and other area bus routes. The 2040 Comp Plan notes that the city will actively look to assemble any underutilized or foreclosed property for potential utilization for affordable housing purposes. The current 4-acre site contains a 9,000 square -foot assembly building and large surface parking lot that is very lightly used. We believe the development we propose meets, and in many ways exceeds, the criteria for PUD designation and is consistent with the city's 2040 comprehensive planning efforts. We believe the development will be an asset to the community and the city. Page 3 Page 364 of 508 About Beacon Our Vision: All people have a home. Our Mission: As a collaborative of congregations united in action we create homes and advance equitable housing. Together, We: Create New Homes For more than 20 years, we've been creating quality, affordable apartment homes that people want to live in throughout the metro. Having a safe, stable place to call home is a basic foundation for strong lives and communities. By creating quality apartment homes close to where we work, learn, and shop, Beacon empowers sustainable, vibrant living. Sustain Stable Homes On -site support services help our residents thrive. Services tailored to the individual focus on jobs, education, community connection, health — or all of the above. No matter what the focus, there's always a trusted, on -site advocate to work with to set goals and map a plan for success. Shelter Families Our congregations open our doors to shelter families experiencing homelessness each night. And our professional case managers work with them to find stable homes that foster dignity and resilience. Our shelter program supports up to 12 families at a time in Carver, Scott, and Hennepin counties. Change Systems We all benefit when we all have a home. Through education, relationships, and community organizing, we foster the public will to increase societal commitment to ensure that all people have a home. By confronting unjust systems and expanding our shared response, we invest in the long-term strength of our communities. 11111111111111111 1111111111111111111111 111111111 p000llll Illlwuuuillll I� www.beaconinterfaith.org facebook.com/Beaconlnterfaith twitter.com/BelievelnHome instagram.com/BelievelnHome niu 0010100,000 Page 365 of 508 1 IIIIII � IIII Illllll IIII ii Y IIIIuIIuIIIIIdNlll�llll4'4'111411 II uuu 14� 1'111"I lil °11 ail, Illlr�.� � 111111111111�I1i � 1 ' �11111�111 1111�1�'��,��1�;11;111111�I;nd�lY,'II� 11 I11 III IIIIIIIII i1'IUI111i 1111 Xf1uulXi,^^i,11XIXXM+^� ��" �IIIIIIII II IIIIIIIIIII III ^,I•I,IVho 1411144414uuuu hI fllhhhhI ll'l 11 14' Iluuuuu111IJIi'iij"i'iill f(I AA��"hh III 1INIII� 11�1';I 1111 �' �1111 l 111111111111 , ILI I 111111 The Essentials • About 50 high -quality, well -managed apartment homes. • Homes for families who make less than $30,000 a year. • One, two, and three -bedroom apartments. • Individualized on -site support services. Why Shakopee? • Scenic parks, world -class entertainment, a growing economy and highly -regarded schools are ideal for families. • Family homelessness is rising in Carver and Scott counties. Prairie Pointe will provide homes for many of these families, offering them stability where parents and children alike can flourish. • We value looking out for one another. It's a big piece of what makes towns like Shakopee great places to live and grow. Supportive Housing • Tailored support helps children do better in school, parents increase income, and families improve long-term health. • Supportive housing is a proven model for ending homelessness and housing instability for families. 11111111 (IIIIIIIIIII p 1111111 1111111 1111111111111111111111111111111 III Hun nun Ihhh huIlih1ii'll! v1. IIIIIIIIInInn IIIIIIIIIIIIIIIIII I Illllll,n nnnnnnnnnnnnnninnllnnlnll°innnniinnnlll1111 1uu11111111�u1i11" 1 riluw 0°II III°°°°""°°1°1"1�141�1���1'A'l1uouu'l1u1'1uipi°iIiIiIi�Ii��Ilfu1 l 'ollI u,l ' 11ugl1iI'� � P1P1InYII111II1111°iNNlllluuull11Ij1lllllllllllllllllllllllll11;II.I11II,1I1I611PIIflII�IIPIIryIIII1III11I 1111I�II„�.�1 IIII�II 1111�IIIIIIII II � I yI li 1 �1'olun,mll �Illlumulllllllllllll Illllll 14111 hihlllii"llldVl 1 I III Ilh"11 1111111 m11mu1111111uI I I II 11111 II 1111 111111 IIIIII. h. hhhh„ .. 1111111111111mu11u1111ulullllllll llllllll Ill d.1 4, 2W I 1hIhh il11811d111'X "Ihlilllllhf li'I' �11111 Ill,u'1, IIII �,I�mg11 1p1 � ili�llll�l�llli i',„uIIVI III ^^ I;llfll,,,,iq!91 ulilll''PiPi'PiPliii�II�P"1'i �u4 �Illlill�l'liu �llllll'A, 1^P'� !!'VIIIIPIId.�I IIIIION'VII'�I'61111�!'�I''I�I'!;1011l�n Ih�lillhllpl'1111'I1111k4;�V!III �IAl�;lluhoo111lpll@'hhhI NI'll 1,i141'hh,11 111'1g1,�4�1 ���1�10,�-,�w,� 9 ��;JIIII➢Pm1 I � II u1��r I 1NIVI1IP1111 1,,1old 11111111 Congregation Members and Supporters to... ...show up in support at key moments; make a gift to support the work needed before the shovel hits the ground; spread the word about why you support Prairie Pointe; schedule a tour at a Beacon building to learn more about supportive housing. Public Officials to... ...approve land use and zoning decisions; champion and secure public funding for rental assistance, support services, and capital. u11IIII IedI I IINNuNuNN111'�1ul � NpIVila'4a1a1 ooiuN�I111111N uI I1I 1 1 1 ;11III1II 1I1IIIIIII ;IgI lIpll11ll11u1 111111111,.111111 1 1l11„u11u1l1m11111I1I"1I1I1IuI1 I,I11 III1 IIuIII 1I1I I1I I0 I1 111111II 1I u111I1uI10I1I1I1 11 I 1I1I1111 1IIII11II I11I11I1I1I11I11I11I1pI1pII1I11!11o„II11u I11 1.1 III1I.III.I1IIIIIIIII; I1 IIII1I.111 I11II.I. 1IIlI lllV llllplll..11l II.III• 111 II IIIIII, IIIIIIIII1III1IIII1IIIVIIII°IIIII II I1II II � AIIVI1111 I I �11 1NuI I a1� 1 I� IM „�I,1p11 11,I1 I11 II�1 ,1�,� uu,i�„,1u�,1u1,1„o,1u,i,1u.p� 1�I1�11�11� u1u11111v1I1u1I1,1IlI1u'1IQ11"1ulQ 11I lQ11 I1lQ1un1l 11nwQn11n.11 u1uan.1 1p1 1op10�Ivg11 �I1eg�I�I1nq�I � I„lq�I ,IlW nd;l I,IIl1 1 I� IIp�I�IIAI � IINI� 1INnI 1III l�11Ano1� 1A r1 1I1u1� pI1u.IIpI1�I ppIIIpII1pIlIllI1l11luu� VI�I,111�' 1IA�� IAm�IA � IuI �4I �I1 �1A �11Au1u 11Al0lu1A�u I1V1 IpaII 1pa �1II �l1 uIII4I 4I 4I4I 4I 1l�1�l �u �;111;111111111111 I1111111111111111I1IIIIIIIIIIIIIIII1IIpIII1IIIIIIIII 111IIIIIIIIIIIIIIIl11IullllllIIIulllll 1,1,1 111101111111111111111111 II�IIIIII IIII IIIVIIIIIIIIIIIIIIIIIIIIII INIIIIIII1I11111IIIIIIII IIIIIII IIIIIIIIIIIII (IIII IIII IIIIIIIIII IIVI ,I. m1Y I � �I1111IlI N1pp8 n71Y 11 ��uI Iu I VNN11P1 �uIVuNu A�IIIII1IIwI1uVIIlVu1ld1lll1il�Vu1N�l„ III 1 "uIIVINII' II I' 11IN I1I�1N 1,1111111111111111 4 II u'1 111!�, ,IQI,„iiiiiiII 1111111111liiiilII1 IIIVIII11„„!„ I I1II II IIII II 1 II ugpu11 II1111I1I 1I I11 1 1, I 1 1 , 111111111110111,0111,11,111,ov 11111,1,i, I1 �'rrlrl'„ "I'y'h111',IIIIII 1p111111I1111111pi11111 About Beacon Interfaith Housing Collaborative Beacon's vision is that all people have a home. We are a collaborative of congregations united in action to create homes and advance equitable housing. By leveraging our collective power, we develop and sustain affordable homes, shelter families, and work to change systems. Our focus is on families, seniors, young adults and others with very low incomes, and those who are experiencing homelessness. For more information, visit www.beaconinterfaith.org. About Volunteers of America - MN and WI Volunteers of America is dedicated to helping America's most vulnerable by providing a wide array of health and human services. Its diverse array of services crosses a spectrum of intersecting needs — from housing to health to education to employment— allowing the organization to take a broad view of community needs and offering a holistic and integrated approach to its work. Volunteers of America is a ministry of service dedicated to helping those in need rebuild their lives and reach their full potential. For more information, visit www.voamn.org. 11111111 6u1, I IINN11111111„11111 "loo 1 11 ooll111111111 1,„11011, IIII I0 III�I "it I���'lIII d up�0iif,ll0', III IINII IIII IIII�u� i! 111 (IQ ddYli ' pllp IV , h„1 s II IIlu1111, I IIIUUIIIuuI ,,,,,,,,, I, I September 24 will always be special for Jessica. On that day, her son exclaimed, "It's 5 o'clock, mama, and we don't have to go anywhere. We get to stay right here!" On September 24, 2010, Jessica moved out of temporary shelter (and its 5p.m. check -ins) and into her own apartment with her two sons. It was a day that changed her life. The boys are a little taller now, and 5 o'clock often comes and goes unnoticed in their busy lives. Lives centered in the joy of home — their own home — at Beacon's Audubon Crossing apartments. While living in supportive housing, Jessica has grown her career and her confidence. "I've really come to believe in myself, and know I'm not alone," she beams. She meets regularly with an advocate, finding a listening ear and a trusted presence to connect her with resources. For Jessica, having supportive housing means stability. It means she can afford to invest in her boys' school and give back to her community. And it means she doesn't have to worry whether it's 5 o'clock or September 24: she's home. IoII0III1111 1 IIIIIIIIIIIlli1V11 h, w 1111 Dui III, 0111111,11ouluounimmummunouuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuono uuuuu ,,1,1111'1118i,m u 1 31NIOd 3I`JIMJd PRELIMINARY PLANS UTILITIES AND SHEET INDEX PREPARED FOR: 0 a Sheet Number BEACON INTERFAITH HOUSING COLLABORATIVE 2610 UNIVERSITY AVENUE WEST, SUITE 100 ST. PAUL, MN 55114 MATT SOUCEK 651-789-6260 EMAIL: MSOUCEK@BEACONINTERFAITH.ORG PREPARED BY: PROJECT NUMBER: 0026679.00 CONTACT: XX 0202 9”..0 . TSe[5520oVNI13tld\l W J19M4 W o'5L5sZoaVN 31NIOd 0I0IV0d SITE LEGEND SITE DEVELOPMENT SUMMARY o a z 1 404' V V 1 e v 241001_8 1 00, Vas C J z c. O o � v V) z 0 0 0 LL 0 z 20.00` 9'6 OZ£.;/ PRELIMINARY SITE PLAN ozar 9M4IOdd55tiL9420�\Wtl3Nd\lND\9i\Ad\ao 6L99iaoVN 31NIOd 3I}JIV d og Ogg' 9M1•I0d49-StiL9420�\Wtl3Nd\lND\9i\Ad\ao 6L99iaoVN 31NIOd 3I}JIV d _ M4 I0d1R5, 99Z 00\ W 111.8,l ND\9i\ .0 6L9.00V N 31NIOd 3DEVild ,LL,,3E.IE E ill , ' ,-, 4 1 ,E EV LEE E ''. r,/, 4„,4.-4.--.161/1 '),,6'. 11 3 5 5 556 3 ' IF 1 co.,,,r 1111' 5' ,,,. ,,,z ,--,, ',',' I --1. :4 . - , , , ' , 0 ., —1 I ,. 1 .... , C)L6 1-1 >- z 2 6 LIJ PROJECT NUMBER: 0026679.00 1— Zz 5 L.h. g e. s 3 3E= 3,23E EE DATE: XX/XX/XX LICENSE , ,0010.15,4 OCOZ Wag 0,-S12,92Z0,1211112,INISADS/V,002,29i0021, \ \ 3 u71--1-0 WORKROOM OPEN OFFICE 2/1. Z - COMMUNITY ROOM ce ce 0_ 7 r1,11 73,11111111111 17) re L L co—L I WI L ce z Is 161-F-1 C▪ l ce co Er, .0 - -zc O-6CL ji glllllllllllllllllllllllllllllllllll1111,.1 PRAIRIE POINTE BEACON INTERFAITH HOUSING COLLABRATIVE N Lf) y, uuli�i ,umu IOuuuuuuuuumm��", A,,^IIY „ wllh^Illu 1, Y''I� you �IUlluu�l �dmiiiiiiitll'ii��P,1 111111111111111111 11 IFirr IlNyl UllN;!;lll Ullllllllllh IIVIII III IIIIIW �'v �� Illl�llllli �N N 9u r I'� '''fit a( 11 PRAIRIE POINTE BEACON INTERFAITH HOUSING COLLABRATIVE N Lf) �IIIIII'VI!se �Illlllii'lir if Ppvbijg 1,4 'YYb9mlp11111, PRAIRIE POINTE BEACON INTERFAITH HOUSING COLLABRATIVE CV O N LC) Asphalt shingle roofing E Fiber cement lap siding 1111, I11111. ). „„ munui • 11111111111111111111111111111111111111 Illlllllllllli1 Ilpllllllll 9l1N. IIII�II „ IIIIIIIIIIIIIII,� I�u'�lu�11°� � i111" i1,II001 ^Iu III' Illll lll�llu; IIIii uu 11'1111 111111111111 vvi uuuq; , , luuouIIIIII';,. 1l ° m'mlK wl" Ilullllllll llllllll;; illll loll "P� 11111111 11111111111111111,111, vvv01111 1111IuY ,Ii0111111,,1 Flu I" IN, u. E E z O re O NMI 9 N PRAIRIE POINTE BEACON INTERFAITH HOUSING COLLABRATIVE N Lf) e. Scott County. Minnesota 051155,5 0 3 .0 5 AA --- ! A 4 A A A A A a A 3 A! A A A 6 AA 6 6 A 3 A6A A A6:3 AA AA A 6 A !! 3•3, OLA3ALT 0/522,1,241 L 374,7433 ATF434,44TAT:0c327-33--- It In AIMAMOL. .131J23.132; NI.A3VNV3A3 3,33-333.3434 NIDMVS oTAt3iaaftAftiAs PRAIRIE POINTE OL'666 3 .ZZE.EZ,.LO S 4. N 133211S NIZVNVS OL'666 M N • 12701 Whitewater Drive, Suite 300 Minnetonka, MN 55343 MEMORANDUM Date: April 17, 2020 Re: Shared Parking Memo - Prairie Pointe Development, Shakopee, MN File Roo26679.00 To: Matt Soucek, Beacon Interfaith Housing Collaborative From: Stephen J. Manhart, P.E., PTOE, PTP, RSPi amain (952) 937-5150 fax (952) 937-5822 Westwood Professional Services has been retained to prepare a shared parking memo for the Prairie Pointe Development located on 4th Avenue and Sarazin Street in the City of Shakopee, MN. The site is proposed to be developed as a 46-unit apartment building, and rezoned as PUD — Planned Unit Development. The site is surrounded by single family residential lots to the south, a private adult residential community to the west and a cemetery to the east. The northerly portion of the property, which currently houses the Knights Event Center (1760 4th Avenue E.) is identified as Parcel A. Resonate Community Church has proposed to relocate to the site, and are hoping to grow to 200 seats in their main assembly area. It will retain its existing zoning is Bi — Highway Business. The southerly portion of the property is identified as Parcel B, and has existed as overflow parking and green space. The proposed site plan reconfigures a portion of the event center parking field in Parcel B, relocates a driveway slightly to the north, and incorporates the construction of the 46-unit apartment building. The layout of the development is shown on Figure 1. Parking Generation Manual Calculations Westwood has estimated the parking generation potential of the proposed church, assuming 200 seats. According to the Institute of Transportation Engineers' Parking Generation Manual, 5th Edition (2019), the potential parking generation of the site is as follows: • Calculated parking demand = 44 stalls (peak period of demand is on Sundays between 9:0o a.m. and 1:0o p.m.) This compares with the estimated parking generation potential for the 46-unit apartment building. According to the Institute of Transportation Engineers' Parking TOPL5 Firm No. 10074302 Page 381 of 508 vvest,woodps ce'm (888) 937-5150 Prairie Pointe Development Shared Parking Memo 4/17/2020 Page 2 Figure z: Preliminary Site Plan — Prairie Pointe Development (Source: Westwood Professional Services, 2020) TBPLS Firm No. 10074302 Page 382 of 508 westwoocdps.corn (888) 9:37-51,50 Prairie Pointe Development Shared Parking Memo 4/17/2020 Page 3 Generation Manual, 5th Edition (2019), the potential parking generation of the apartment building is as follows: • Calculated parking demand = 51 to 6o stalls (peak period of demand is on Saturdays between 11:0o a.m. and 1:0o p.m.) Thus, the total demand that is projected using the Parking Generation Manual would be the 44 stalls to be used by the church plus the 51 to 6o stalls to be used by the apartment building. This projected demand would be 95 to 104 stalls. The Parcel A site plan shows 52 stalls, while Parcel B has 90 stalls. Thus, the total number of stalls available is 142 stalls. Therefore, using the peak parking demand calculated by the Parking Generation Manual, the two parcels would have a net surplus of 38 available stalls during the periods of Saturday nights through Sunday mornings. City Parking Requirements and Shared Parking The City of Shakopee's parking requirement for churches is one stall per 3.5 seats (or 22" of pew/bench) in the main assembly area. Resonate Community Church has projected a peak parking demand to accommodate a congregation size of 200 seats. This results in a parking requirement of 57.14 (58 stalls). Because the Parcel A site plan shows 52 stalls, the congregation would need to enter into an agreement with the church to share six stalls on the multifamily parcel. According to ordinance, up to 50% shared parking is allowed. The City states that under Planned Unit Development guidelines, the parking requirement would be two stalls per unit (e.g., 90 stalls). Parcel B has been planned to accommodate 90 stalls. Therefore, under these requirements, the multifamily site has no stalls to share. Many cities, however, have shared parking ordinances that may authorize the reduction in the total number of required parking spaces for two or more uses jointly providing off- street parking when their respective hours of peak occupancy do not overlap. For example, the City of Minneapolis allows for shared parking by the following calculation: • Multiply the minimum parking required for each individual land use by occupancy percentages listed by time of day for weekdays or weekends. • Add together the resulting sums of the time of day columns. • The minimum parking requirement is the highest sum of the six columns. • Select the time period with the highest total parking requirement and use that total as the shared parking requirement. Using the process outlined above, the land uses in the Prairie Pointe development would yield the following percentage reductions in required parking using the Shared Parking percentages from the City of Minneapolis Code of Ordinances, as shown on Table 1. TBPLS Firm No. 10074302 Page 383 of 508 westwoocdps.corn (888) 9'37-51.50 Prairie Pointe Development Shared Parking Memo 4/17/2020 Page 4 Table 1: Shared Parking Percentages bu Time ofDau and Da u of Week General Land Use Classification Weekdays Weekends 2:00 a.m. to 7:0o a.m. 7:oo a.m. to 6:0o p.m. 6:oo p.m. to 2:00 a.m. 2:00 a.m. to 7:0o a.m. 7:oo a.m. to 6:0o p.m. 6:oo p.m. to 2:00 a.m. Residential i00% 6o% r00% i00% 75% 9o% Religious Institution o% 25% 5o% O% i00% 5o% (Source: City of Minneapolis Code of Ordinances, Section 541.19o, Shared Parking) Table 2 shows the number of parking stalls required for each land use by time of day and day of week by multiplying the City of Shakopee's parking Table 2: Apbluina Shared Parking Percentages to Prairie Pointe Uses General Land Use Classification Weekdays Weekends 2:00 a.m. to 7:0o a.m. 7:oo a.m. to 6:oo p.m. 6:oo p.m. to 2:0o a.m. 2:00 a.m. to 7:0o a.m. 7:0o a.m. to 6:oo p.m. 6:oo p.m. to 2:0o a.m. Residential (90 stalls) i00% = 90 stalls 6o% = 5o stalls i00% = 90 stalls i00% = 90 stalls 75% = 68 stalls 9o% = 81 stalls Religious Institution (58 stalls) o o% = o stalls o 25% = 35 stalls a 5o% = 29 stalls o o% = o stalls 0 ioo/ = 58 stalls 0 9o% = 29 stalls Required Number of Stalls 90 stalls 85 stalls 119 stalls 90 stalls 126 stalls in stalls (Source: Westwood Professional Services, 2020) Therefore, using this method for calculating shared parking, the Prairie Pointe development would have a surplus of parking stalls. The development will have a total of 142 stalls, but through shared parking, will utilize 126 stalls during peak time (weekends from 7:oo a.m. to 6:oo p.m.) This calculation shows there would be 15 space stalls available. Multi -Family Residential Property Parking Characteristics As stated previously, Parcel B has go spaces to serve the multifamily residential site. This site is being developed by Beacon Interfaith Housing Collaborative. Their seven other family supportive housing developments provide between 0.875 stalls per unit to 1.1 stalls per unit. Other developments Beacon Interfaith has surveyed provide about the same amount. Further, they report that parking at all of these development is underutilized. Westwood surveyed six similar family supported housing developments in the Twin Cities and Rochester. The housing managers of each were asked the following: • How many housing units do you have in your development? • How many off-street parking stalls do you provide at your development? • What would you say is the average vehicle ownership for each housing unit? In other words, on average, how many vehicles does each housing unit have? One car per unit? Two cars? Etc. TBPLS Firm No. 10074302 Page 384 of 508 westwoodps.corn (888) 9:37-51,50 Prairie Pointe Development Shared Parking Memo 4/17/2020 Page 5 Responses were received from all six properties. Table 3 lists the responses received and the resulting average number of parking stalls per unit. Table 3: Parking Statistics for Nearby Family Supportive Housing Developments Development Address Units Off Street Parking Stalls Avg Vehicle Ownership Collaborative Village 2020 Elliot Ave S, Minneapolis 20 24 0.50 Camden Apartments 4643 Lyndale Ave N, Minneapolis 23 23 0.48 Crestview Apartments 1145 Westminster St, St Paul 44 40 0.61 Portland Village 1829 Portland Ave, Minneapolis 25 35 1.00 Jackson Street Village 1497Jackson St, St Paul 25 (1 Caretaker) 47 1.00 Gauge East 92040th St NW, Rochester 54 54 (2 Handicap) 1.00 Average 32 37 0.77 Average rate of units to parking 1.16 parking stalls per unit (Source: Westwood Professional Services, 2020) From these findings, it is evident that family supportive housing developments in the Twin Cities and Rochester areas are recognized as not requiring the same level of parking demand as other multi -family developments. Beacon Interfaith Housing Collaborative has stated that, at most, their residents have 0.75 cars per unit on average. In the case of Prairie Pointe, that would equate to a parking demand of 35 stalls. Nevertheless, this would not account for guest or other parking needs. While a higher rate than o.75 stalls per unit is necessary, the blanket rate of 2.0 stalls per unit is excessive. Therefore, it is recommended that an alternative rate be used in this case to determine minimum off-street parking demand for the Prairie Pointe multi- family residential development. Conclusions and Recommendations The Parcel A site plan shows 52 stalls, while Parcel B has 90 stalls. Thus, the total number of stalls available is 142 stalls. Westwood has shown several examples of reduced parking demand for each of the two uses being considered — the Resonate Community Church and the Prairie Pointe multi- family residential development. Because they represent two outlots on the same property, there are opportunities for shared parking. • The parking demand shown in the Institute of Transportation Engineers' Parking Generation Manual would be 95 to 104 stalls. Therefore, the two parcels would have a net surplus of 38 available stalls. • Using shared parking rates utilized by the City of Minneapolis to account for parking variations by time of day and day of week, Westwood calculated the peak demand would be 126 stalls during peak time (weekends from 7:0o a.m. to 6:oo p.m.) This calculation shows there would be 15 space stalls available. TBPLS Firm No. 10074302 Page 385 of 508 westwoodps.com (888) 937-51.50 Prairie Pointe Development Shared Parking Memo 4/17/2020 Page 6 • Family supportive housing developments in the Twin Cities and Rochester areas are recognized as not requiring the same level of parking demand as other multi -family developments. A survey of similar properties showed an average rate of ownership as being 0.77 (less than one) vehicle per unit, and an average off-street parking available demand of 1.16 stalls per unit. Therefore, if any of these shared parking alternatives are considered and accepted by the City of Shakopee, it is possible for there to be adequate parking to handle peak parking demands of both the church and the multi -family residential development. Cc: Nic Meyer, Westwood TBPLS Firm No. 10074302 Page 386 of 508 westwoocdps.corn (888) 9'37-51,50 Resonate exclusive use N v E v aA CO bD 0 v 0 E aA CO 0 c o o N — N o_ Q -a v � v 0 O (a 0 a) 3 C s— • -C aJ cr, I +. I +.. (a ut C > v, C C C) a) •- a) a) 0 vl (a C (a0 a) 0 a) U 0 a) CC v, a) x C CA OJ CO CO C C (6 a) C (6 (6 CA (a b.0 C (a - C c (a U C 0 0_O Q _c Cr)(La N O (La aa) N 0_ CC N C2 CO exclusive use Resonate Church C 0 U (a a) CO m L v, C -00 - +-, L 0 0 E CU Q Lc))) - m DD -0 • '> U N > X Q 0 0 0 a O a) bA C X 0- L c U (a a) v, (o _c QI L Ci a-+ c c (6 2C 'Cj bin ▪ a) _cc O' — • — c N c L L its U • v, U (a -0 L 0 Q IT co (6 fa N . 0 -0 vi v)0+U+ Q c > c 0) c c tea) 03 C UA N co (0 a) c c U c E CO >' 'ro vl 0 -CY O )- Y � 0'C N a) v, E(0 C •v n chi c C) a0 v n - i 0 N 0 v) i p 0 in 0 CO (a 10 cC (a .- U (9 N CO • La v ▪ ▪ C CO o • CC 0U C O a) C 0 (• y) C) „) m ▪ C c 01 a.)15O c ▪ u • c ,i, a) CO (a O a) +-+ Q O U C co • 0 O C • E U f6 C ▪ a- ) 4) C2 - > Cc -c �N C v L c U -0 00 • vi O C2 -0 • U +> (6 - 4) (a (6 C) -0 > _0 - o CU a5 7 ,) p -c a) 0 as c • a • v, uu-) ▪ OL N Cl CC Q Qj i 12701 Whitewater Drive, Suite 30C Minnetonka, MN 55343 MEMORANDUM Date: February 28, 2020 Re: Traffic Impact Memo - Prairie Pointe Development, Shakopee, MN File Roo26679.00 To: Matt Soucek, Beacon Interfaith Housing Collaborative From: Stephen J. Manhart, P.E., PTOE, PTP main (952)937-5150 fax (952) 937-5822 Westwood Professional Services has been retained to prepare a traffic impact memo for the Prairie Pointe Development located on 4th Avenue and Sarazin Street in the City of Shakopee, MN. The site is proposed to be developed as a 46-unit apartment building. While the existing zoning is Bi — Highway Business, the proposed zoning is PUD — Planned Unit Development. The site is surrounded by single family residential lots to the south, a private adult residential community to the west and a cemetery to the east. The northerly portion of the property, which currently houses the Knights Event Center (1760 4th Avenue E.) is identified as Parcel A, and will remain as is. The southerly portion of the property is identified as Parcel B, and has existed as overflow parking and green space. The proposed site plan reconfigures a portion of the event center parking field in Parcel B, relocates a driveway slightly to the north, and incorporates the construction of the 46-unit apartment building. The layout of the development is shown on Figure 1. Trip Generation Westwood has estimated the trip generation potential of the proposed apartment building. According to the Institute of Transportation Engineers' Trip Generation Manual + Supplement (2020), the potential trip generation of the site is as follows: Table 1: TriD Generation Potential Land Use ITE Code Size Weekday AM peak PM Peak Enter Exit Enter Exit Enter Exit Multifamily Housing (Low -Rise) 220 46 units 153 153 5 18 19 11 153 153 5 18 19 11 306 23 30 (Source: Institute of Transportation Engineers' Trip Generation Manual + Supplement, 2020) TBPLS Firm No. 10074302 Page 388 of 508 WestVNood'ilps.corn (888) 937-515C Prairie Pointe Development Traffic :Impact Memo 2/128/202o Page 2. Figure 1: Preliminary Site Plan — Prairie Pointe .Development — Ge00, r22 "sr PARCEL A (NO WORK) SMEDPANG 0 0 ' 2,, t r1r1L20 It 11. t '14 11 t ;°11 l,24011(4"1"111131,81'"111-1 ' Chow t 11 Ag0026000000HINONON ' 51,47;7,rtiti,;20- 20 001 (Source: TVestwood Pro ssional Services, 2020) T.103.r^Ls non No. 10074102 Page 389 of 508 westwoodpscom. (888) 9371-5150 Prairie Pointe Development Traffic Impaet Memo 2./28/ 2o2o Page 3 The trip generation estimate in Table 1 illustrates that 306 trips are projected to be generated per day by the development. Of that total, half will be inbound trips and half will be outbound trips throughout the day. Further, Table.t illustrates that during a typical weekday, traffic generated by the apartment building during the a.m.. peak hour (generally an hour between 7 — 9 a.m.) will be 18 trips exiting the site and 5 trips entering the site. Conversely, during the p.m. peak hour (typically an hour between 4 — 6 p.m.), traffic generated by the apartment building will comprise 19 inbound .trips and it outbound trips. This pattern is typical for weekday commuter traffic where the heavier volumes are outbound from a residential area in the morning, and heavier return volumes in the in the afternoon. 'the traffic impact of Prairie Pointe Development will be generally insignificant. In all, these volumes generated by the site are small, and will represent an average increase of less than one additional trip every two minutes during weekday peak hours. Because peak hours generally represents the most traffic -intensive periods of the typical day, non -peak hours will generally record even fewer trips to and from the site. Background Traffic Volumes The Minnesota Department of Transportation has recorded Annualized Average Daily Traffic (AADT) Volumes for streets in the area. In 2016, Sarazin Street immediately in front of the proposed development had a recorded daily traffic volume of 1,650 trips/day. East 40, Avenue to the east of Sarazin recorded a daily traffic volume of 2,000 trips/day, while East 4' Street to the west of Sarazin recorded a daily traffic volume of 3,350 trips/day. Figure 2 below illustrates the daily traffic volumes recorded by MnDOT. Figure 2: Annual Average Daily Traffic Volumes Ave frnmilf3t, 2A0 , 0 4 7777 1 CM Five A tor 254[55[01523;001st Ave tvg,001: 401, t tot ke - • • Vo • „:0 Irct Avg —.02 • O. ' • 50'. .......c.....„..„ • - • et .E.,, 4t • • ,7777,• 0 ,,,,..c.108i tip lie 6 co le,. . cro, te 41; 56,00 Shakopee Ave 5200 (Source: Minnesota Department of Transportation, Metro ,Street ,Series_291.8 4,ADTProduct) .1\107E: Different colors represent different years of data Blue = 20.15, Pink = 2016, Green 2017, Red = 2m13, Brown = 2m4 and older. .rorts rrn No.. 10074102 Page 390 of 508 westwoodpsitorn [800193[7-01.50 Prairie Pointe Development Traffic Impact Memo 2/28/2020 Page 4 Transit Availability The Minnesota Valley Transit Authority provides regular bus service throughout Shakopee and the southern Metro area. One route, Route 497, provides transit service between St. Francis Regional Medical Center, downtown Shakopee and Shakopee Town Square Mall (see Figure 3). The route has bus stops at the intersection of 4th Avenue and Marschall Road, which is less than one-half mile to the west of the proposed Prairie Pointe development site. Figure 3: MVTA Route 497Map (Source: Minnesota Valley Transit Authority website) The presence of sidewalks along Sarazin Street and along 4th Street all the way to Marschall Road allows pedestrian access to the existing bus stops serving Route 497. As a travel demand management strategy, it is recommended that the apartment management of the Prairie Pointe development include route maps for MVTA Route 497 (and/or other nearby routes) as part of the tenant move -in packets. TBPLS Firm No. 10074302 Page 391 of 508 Westwood ps cor (888).. 937-515C Emails / Website Comments received by planning staff from persons in support of the Prairie Pointe PUD after staff report was complete. 06 May 2020 Dear Shakopee decision makers, 1 V'V EPAL EA I1' 17. 11 0 uJ S0.N4 0.1 YA 1., Ir.ARtl)RAar I VE I am a Catholic Pastor and the ordained Catholic faith leader of the Shakopee Area. I write to join many other faith leaders in Scott and Carver Counties in voicing our support for Prairie Pointe. A trusted developer and good neighbor for more than 20 years in Minneapolis, St. Paul, Edina, Plymouth, and Hopkins, the vision of Beacon Interfaith Housing Collaborative is that all people have a home, and as faith leaders, we are called to bring that vision to life. Beacon's shelter program, Families Moving Forward, has helped dozens of families in this area who had been homeless find a stable home in a community they love, but it is observably not enough. Leaders from the local CAP agency, Scott and Carver counties, LOVE Inc., FISH, the St Francis Regional Medical Carver, Scott County Sheriff's office and others have confirmed the need for more affordable homes in Scott and Carver counties for parents with children. Beacon offers us a path forward for our communities with Prairie Pointe. Beacon has a history of success in building stable homes for those who need them most, and partnering with Volunteers of America will allow Beacon to bring those expert resources to Shakopee. Supportive housing like Prairie Pointe is a proven model for ending homelessness and housing instability. Beacon's track record in delivering housing stability, supporting health care access, and improving residents' income is testament to a best -practice response for families experiencing homelessness. Stable homes transform lives, thus, we stand in full support of the Prairie Point development I invite you to take the next courageous step towards ending homelessness in our community. Let Shakopee be a "light for the world" by supporting the Prairie Pointe project this month and onwards. You have the opportunity to improve the lives of many, many families who have been waiting for the security and comfort a home provides. I am counting on you now to support our families with the lowest incomes and highest needs and invest in their future — a future where everyone will benefit when we all have a place to call home. Sincerely at your service in prayer, a sus ordines humildemente en Cristo, Reverend Erik Lundgren Page 392 of 508 Pastor [CEO] The Parish of Saints Joachim and Anne Church* & School** Board Member, Saints Foundation of St Francis & St Gertrude, Shakopee *Catholic Churches of SJA-St Mark, SJA-St Mary, SJA-St Mary of the Purification [Marystown] **Shakopee Area Catholic School We fully support the project! We are very happy to continue our financial support of Beacon. This is a unique way of helping people get back on their feet! Every community should have a great project like Beacon! Thanks for your consideration. Bert and Bonnie Notermann Bert and Bonnie Notermann 812 East County Road 78 Dear Council Members, Mayor, and city leaders, My name is Trish Grose and I have lived for nearly 26 years at 1125 Jefferson St. in Shakopee. I am writing you today about Prairie Point, the family supportive housing development to be located off Fourth Avenue E and Sarazin Street. I support this project for numerous reasons. We know that affordable housing is a major issue here in Shakopee and across the nation. There is not a single county in the United States where you can afford a two bedroom apartment on a minimum wage income! We also know that homelessness is growing in our state and is a real tragedy. One of the ways that the homeless population has changed in the last few years is that approximately half of those experiencing homelessness are now women and children. As a former teacher I cannot imagine that a child who is homeless can get the kind of education that prepares them to be successful in the future. I have several years of experience with the Beacon Interfaith Housing Collaborative and support their endeavors financially each year although this is their first project here in Shakopee. They have identified the needs of several different constituencies and organized to address those needs over the years. The exciting part of their work is that this is not just low income housing but family supportive housing which makes a tremendous difference in the outcomes we would all hope to see. I fervently hope you will support this important proposal. Our community will benefit in addition to the future occupants. Hopefully, Trish Grose Page 393 of 508 I support the Rezoning of the kc hall to support Beacon house. Cathy Hennen 12590 meadow ct Homelessness is a crisis in our country, our state, and our city. Support for Prairie Pointe is an opportunity for the City of Shakopee to make a difference in the homelessness crisis in Shakopee. A home is a basic need. With that basic need fulfilled,individuals and families are able to move forward improving all aspects of their lives. As a former teacher, I know stability is vital for a child's academic growth. With this aspect in mind, Shakopee is making an investment in the future. I was impressed to learn Beacon's model goes beyond providing a home. On- site services are provided, which is another key layer of support. All needs of the individuals and families are addressed. As a resident of Shakopee, I am asking the Shakopee City Council to support Prairie Pointe. Shakopee will be a better community when all people have homes. We must be a part of the solution to homelessness! Deanna Strunk 1567 Jackson Court Homeless is here in Scott County. We do better as a community by helping people find stable ground. Our city can be a supportive place to all people. Let's make Shakopee a place we can be proud of. Please very seriously consider supporting the Beacon Interfaith Housing plan. Maxine Hughes 1259 Maxine Cir E Dear Council Members, Mayor, and city leaders of Shakopee, My name is Nancy Busch, and am a registered voter at the Police Department in Shakopee, and I am writing today about Prairie Pointe, the family supportive housing development located off 4th Ave E and Sarazin St. I wanted to let you know that I am in support of this project, and excited about the benefits to our community! I support Prairie Pointe because I have seen enough homelessness in the past several years of people like you and I, that have lost their jobs due to cuts and layoffs, illness, the recession of 2008 and a number of other reasons. I believe these people could be given a chance to get back on their feet and this project could do it for them. Family supportive housing is a smart investment into the future of Shakopee and our neighborhoods. That is why I support the development of Prairie Pointe and I hope that you will vote in favor of its land use on Tues, May 19th. Sincerely, Page 394 of 508 Nancy Busch Please consider approving this application for the Beacon interfaith housing I believe it is critical and vital to Scott county and will set an example for other local and rural counties to follow. This is not a homeless shelter this is a step above to encourage and assist people that want to improve their lives. I see a real demand in Shakopee and in the Scott County and carver county areas for homeless people and people that are just really struggling they need a place to start again . Charlotte Theis 16936 Grommesch crl Planning Commission Members As a volunteer of Families Moving Forward (Beacon International) I am writing to ask for your support for the proposed Prairie Pointe Development on your agenda May 7, 2020. Scott County has an acute shortage of housing for the Homeless and low income residents. Rental costs have increased so dramatically that a person earning minimum wage cannot qualify for a basic one bedroom apartment. It's necessary for two wage earners to afford a two bedroom unit. I'm asking you to consider this carefully when making your decision. Thank you. Sincerely, Jane C. DuBois I fully support this project. This is a great idea and way to help the homeless families in our area. I also like the idea of someone following up with those families to help them find jobs and the thing they need to become self sufficient, this in turn could lead to a better life for them and them becoming better community members. Michelle Petersen 2490 Cambridge Way N Dear Mayor Mars, Council Members and other City Leaders: It is unconscionable for me to consider what it would be like any time to be without adequate housing! Page 395 of 508 Prairie Pointe housing would definitely help alleviate the housing needs In our enlightened community. A family of $30,000 annual income or less would be eligible for a comprehensive service arrangement and housing under the Prairie Pointe housing proposal. Our county properly falls within the 13% marker for homelessness. We can do so much better! I personally support the plan and location for the Prairie Pointe housing project. Consider what that stability and hope will mean for those economically challenged residents. I have continued to support financially this kind of collaborative housing effort for many years! Stand up with me and for those potential family members. Charles W. Grose, PhD 1125 Jefferson Street Shakopee I have been a financial contributor of beacon for quite some time. I fully support this housing project in Shakopee. We do have homelessness is our city, and I feel this would be a great facility for them to get back on their feet. It would provide a safe environment for them. Rachel Welch 2470 Paha circle What a beautiful opportunity for so many good folks in our community to live what we believe and practice what we preach! Brother Knights, thank you for staying true to the first principle of your auguste brotherhood, namely, Charity. The fourth and final principal of the KCs is Patriotism. Thus, let us continue to build and to be "one nation under God" as we help others enjoy the fruits of liberty. Let us not forget the great admonition at Lady Liberty's feet on Staten Island: "...A mighty woman with a torch, whose flame Is the imprisoned lightning, and her name Mother of Exiles. From her BEACON -hand Glows world-wide welcome; her mild eyes command The air -bridged harbor that TWIN CITIES frame. 'Keep, ancient lands, your storied pomp!' cries she With silent lips. 'Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore. Send these, the homeless, tempest- tost to me, I lift my lamp beside the golden door!' Rise up 0 men of God. ALLELUIA! Gloria in excelsis DEO, alleluia. Fr Erik Rev Erik Lundgren 2700 17th Av E SHAKOPEE needs to address the homeless situation in our community. Every community must take care of their own. It's not the responsibility of a far off government. It's OUR responsibility. Page 396 of 508 That's the only way it can really be accomplished. The need is NOW - not sometime in the future. The responsibility is OURS, no one else's. Ann Mulcrone 2384 Pinewood Drive I am writing in support of the Prairie Pointe project. My deputies, 911 dispatchers and jail staff have daily interactions with community members who are struggling with housing. There is definitely a need in our community for this housing. I have also witnessed firsthand Beacon's work in our local churches through their Families Moving Forward program. Thank you, Luke Hennen, Scott County Sheriff Luke Hennen 301 S Fuller St Beacon Interfaith Housing Collaborative is a very organized and successful organization that I'm proud to support. They have a successful facility in Edina which initially faced great opposition from the community but now serves homeless teens and is a great fit for their Edina community. Homelessness in Shakopee and in Scott County is getting worse. The great thing about Beacon is that they provide so much more than a home. They also provide the services residents need to be able to stay in their homes and be an asset to society. Services like addition recovery, job training, child care, medical services, etc. I hope and pray that the residents of Shakopee can join communities like Edina and others to become a solution to the problem instead of being fearful and uninformed. I would hope that they would see this project as a asset to their community. Statistics show that when people have a home, other area in their lives are more stable. Children stay and do better is school, parents get and keep jobs, addictions diminish because the homelessness was the root of their addiction. https://endhomelessness.org/homelessness-in- america/homelessness-statistics/ Beacon has another project in the works in my community and I very much welcome it and hope to support and be a part of it and it's success. So many of us take our homes for granted. Image what YOUR life would be like if you were homeless. Everyone deserves a place to call home. Christine Johnson 14260 Parkview Lane NW Prior Lake 55372 Dear Shakopee Leaders; My name is Jeny Ince and I am a lifelong Shakopee Resident. I am writing to show my support for the proposed Beacon plan of Park Pointe on 4th and Sarazin. In my volunteer work with "Loaves and Fishes" and "Shakopee Community Assistance" and "Project Community Connect" I have seen the need for affordable housing in our area I think our Knights of Columbus Page 397 of 508 property is a good location for Beacon because of the cemetery on the east and the industry on the north with a partial berm on the south. It also helps that there are job opportunities close by especially Amazon and MyPillow. Thank You, Jeny Ince 610 Menke Ave. Dear Council Members, Mayor, and city leaders of Shakopee, My name is Edsel Faunillan, and I am sending this letter on behalf of the Shakopee Knights of Columbus regarding Prairie Pointe, the family supportive housing development located off 4th Ave E and Sarazin I wanted to let you know that I am in support of this project, and excited about the benefits to our community! I support Prairie Pointe because, • We need more affordable housing in Shakopee • Our future depends on our citizen that could live and thrive in this limited housing • Immediate workers will be available in our developing manufacturing area • To support the growing population that needs affordable housing Family supportive housing is a smart investment into the future of Shakopee and our neighborhoods. That is why I support the development of Prairie Pointe and I hope that you will vote in favor of its land use on Tuesday May 19th. Sincerely, Edsel Faunillan KofC Council 1685 Thank You, James Pufahl 545 Tyrol Lane Shakopee, Mn 55379 Dear Council Members, Mayor, and city leaders of Shakopee, Page 398 of 508 My name is Jim Pufahl, I am a registered voter in Scott County, and I am writing today about Prairie Pointe, the family supportive housing development located off 4th Ave E and Sarazin St. I wanted to let you know that I am in support of this project, and excited about the benefits to our community! I support Prairie Pointe because, this will help the rising need for homes here in Shakopee, for those that are helping us during this Coronavrus 19 they are the workers, stocking the shelves at Cub, Target, HyVee our neighboring gas stations to name just a few. The need for housing for those looking for their first jobs such as nurses, teachers and public safety workers and our veterans, just for starters, many of which have to work multiple jobs to meet there needs and provide for themselves and families. I've been involved with the Loaves and fishes and the Shakopee Community Agency (SCA) along with our CAP agency, local food shelves and helping at the Project Community Connect since its start for both Carver and Scott counties. The need for housing is here, for those workers at Amazon, Canterbury, My Pillow, Valley Fair, Mystic Lake, Target and local business just to name a few, they are workers coming in from surrounding communities, because we just don't have enough housing here. Family supportive housing is a smart investment into the future of Shakopee and our neighborhoods. That is why I support the development of Prairie Pointe and I hope that you will vote in favor of its land use on Tuesday May 19th. Sincerely, Deacon Jim Pufahl. Robert R. Blake 14981 Summit Circle NW Prior Lake, MN 55372 May 5, 2010 Dear Council Members, Mayor, and city leaders of Shakopee, My name is Bob Blake and I am sending this letter on behalf of the Shakopee Knights of Columbus regarding Prairie Pointe, the family supportive housing development located off 4th Ave E and Sarazin I wanted to let you know that we are in support of this project, and excited about the benefits to our community! As an organization of Catholic men, we invest our time and money to assist the poor, the disadvantaged and the disenfranchised people of our community. Our city has little affordable housing for the hard-working folks that work in our area. Page 399 of 508 Besides being the right thing to do, family supportive housing is a smart investment into the future of Shakopee and our neighborhoods. That is why we strongly support the development of Prairie Pointe and we hope that you will vote in favor of its land use on Tuesday May 19th. Sincerely, Bob Blake Deputy Grand Knight KofC Council 1685 Dear Council Members, Mayor, and city leaders of Shakopee: My name is Gerry Mareck and I live at 916 Scott Street in Shakopee. The purpose of my e-mail is tell you of my support of Prairie Pointe family supportive housing development located at the KC property at 4th Ave E and Sarazin St. This project goes way beyond any dollars and cents, and bricks and mortar. This is about making a difference in someone's life who is looking for help in improving their own life, to someday maybe make a difference for someone else! Not everyone can start at the top, possess all natural talents, or be superior in anything they touch or do! I grew up on a small farm in rural Albany MN. While growing up I can recall many times how people were treated differently because of their social status. Never could really figure out why. After my farm days, I always committed myself to helping those who need that helping hand. That's exactly what this housing development does! What it does not do is differentiate people because of what background they possess or any other personal features. Don't judge others, and you will not be judged. It does not matter what faith we possess, or any other characteristic, what matters most is making a difference for someone, when it is most needed. Please support the project by voting in favor of this request! Those in need may not know how to ask for help, that is where you and myself can make a difference!! Thank you for reading my message! Gerry Mareck 916 Scott Street Dear Council Members, Mayor, and City Leaders of Shakopee. My name is Lori Peterson. I am a registered voter at 1127 Van Buren St. I want to let you know that I support the Prairie Pointe housing development located off 4th Ave E and Sarazin St. Page 400 of 508 My church, Resonate Community Church, has volunteered several times with Families Moving Forward. Prior to volunteering with Families Moving Forward I was unaware of the homelessness in the Shakopee area. It is heart breaking to see the number of homeless families and it may only get worse with Covid 19. I hope you that you will vote in favor of its land use on Tuesday May 19th. Serve God by serving others. Sincerely, Lori Peterson Dear Council Members, Mayor, and city leaders of Shakopee, My name is Scott Mellema. My family and I have lived in Shakopee the last ten plus years. We love the city and appreciate all that it offers. My wife Heather and I are registered voters at in Shakopee and we are writing today about the family supportive housing development, Prairie Pointe, located at 4th Ave E and Sarazin St. I wanted to let you know that we are excited about the opportunities that this housing development would provide for the individuals and families that would be served by it. We have been fortunate to have had the opportunity to listen to individuals who have benefited from other Beacon projects throughout the Twin Cities through the church that we attend, Calvary Christian Reformed. Having lived in the area for several years, we know there are many in the neighborhood that would greatly benefit from living in this type of environment. We believe that family supportive housing is a smart investment into the future of Shakopee and our neighborhood. That is why I support the development of Prairie Pointe and I hope that you will vote in favor of its land use on Tuesday May 19th Sincerely, Scott and Heather Mellema 2253 Wildwood Drive, Shakopee Dear Council Members, Mayor, and city leaders of Shakopee, Our names are Mike and Becky Sexton, we live at 931 Holmes St. S, we are registered voters at precinct one and we are writing today about Prairie Pointe, the family supportive housing development located off 4th Ave E and Sarazin St. Page 401 of 508 We wanted to let you know that we are in support of this project, and are excited about the benefits to our community. We support Prairie Pointe because we understand that there is a great need for affordable interim housing in Shakopee. We moved to Shakopee at the end of November of 1976 from New Hope because we were able to rent one side of a double bungalow for $200 dollars a month. In October of 1980 we were able to purchase an older home for $47,000. It took a couple of years to purchase a home due to low availability and increasing housing demands. At that time the inflation rate was 22% which translated to interest rates as high as 22% and home prices were increasing at a rate of $2,000 a week. We have seen a lot of changes in Shakopee like the mini bypass, the closing of the Holmes Street bridge, the 169 bypass and the change from a farming community to thriving city. We learned about Prairie Pointe through meetings at our church, St. John's Evangelical Lutheran Church at 119 W 8th Ave. We would not be able to point out a homeless person or family because those people look like you and me. There are a variety of reasons for homelessness and we believe that the services on the main level of Prairie Pointe will help to address those reasons. We believe that it is our obligation to help our neighbors and Prairie Pointe is one way to do that. We will be laid to rest in the Valley Cemetery and what a comfort to know that we were a part of the Prairie Pointe when that happens. It is our hope that you would vote for the land use of Prairie Pointe. Sincerely, Mike and Becky Sexton 931 Holmes St April 22, Dear Council Members, Mayor and city leaders of Shakopee, My name is Molly Nefstead. I am a registered voter living at 1800 Penstemon Lane and am writing today about Prairie Pointe, the family supportive housing development located off 4th Ave E and Sarazin Street. I wanted to let you know that I am in support of this project and excited about the benefits it will bring to our community. As a school social worker I see first hand the struggle families face to find affordable housing. During this time of "distance learning" we have students who are opting out of attending classroom Zoom meetings because they are living in a hotel room or shelter and don't want their classmates to know. Within Scott County there are families that bounce from one school district to the next based on where they can find housing. Often this housing is unsafe and involves multiple families living in a dwelling designed for a single family. On a regular basis I work with families who need to move with very little notice because a landlord discovers there are too many people living in a rental unit. Children are unable to put forth their Page 402 of 508 best academic effort and struggle to develop social skills when they aren't sure where they will be sleeping or with whom they will be living. Family supportive housing would help children thrive socially and academically, improve overall health outcomes and allow parents to to gain financial literacy and maintain employment. Prairie Pointe could mitigate many of the adverse childhood experiences of local families allowing them to prosper rather than fall through the cracks of a broken system. Shakopee has the opportunity to be a leader for suburban communities across the state and nation. Prairie Pointe will serve as a physical representation that we hear and see all of our community members, not just those with privilege. This is a smart investment in the future of Shakopee. I hope you will vote in favor of its land use on Tuesday, May 19, 2020. Sincerely, MOLLY NEFSTEAD, MSW, LICSW, RYT 200 I Elementary Social Worker Jordan Public Schools I mnefstead@isd717.org 815 Sunset Drive I Jordan, MN 155352 April 8, 2020 Dear Mayor Mars, Shakopee City Council Members, City Administrator Reynolds and City Planning Director Kerski, My name is Julie Welch and I am a resident of Shakopee. I am proud to have been born and raised here! I am also a member of St. Joachim and Anne parish. I have been a supporter of Beacon Interfaith Housing Collaborative as both a volunteer and financially for over 5 years because Beacon is amazing at what they do and they do it right. When I realized there was homelessness in Shakopee, I tried to do something on my own to help. It was a bandaid because I do not have the experience and resources that Beacon does, so I decided to partner with them. I have prayed for a project like Prairie Pointe within my community for a number of years. Shakopee prides itself on being a community of families and I will be there to welcome new families to Prairie Pointe when it opens. Coming from a family of builders, I understand the need for affordable homes where families can feel safe. With the price of land and materials continually on the rise, it is not profitable to build affordable housing. I am thankful that organizations like Beacon have taken up this challenging work! Page 403 of 508 Thank you for your time and consideration. When it comes time to vote on Prairie Pointe, I hope you will vote with your values so that families in Scott and Carver county have a home where they can afford to get back on their feet. Sincerely, Julie Welch Page 404 of 508 Dear neighbor, I hope you'll join me in supporting the fabulous new homes at Prairie Pointe. I believe these high -quality apartment homes being proposed by Beacon Interfaith Housing Cogaborative will be a great addition to our neighborhood. As Prairie Pointe moves forward, you 'ii have the opportunity to see so, too. Beacon has an excellent track record of providing well -managed apartments and being great neighbors. Prairie Pointe would provide about 50 families in our community with a stable home and support services they're seeking to increase income, advance theft ed cation, nurture their children, and invest back In Shakopee. A the things we hope t do and be as parents and neighbor& I've attached the flyer Beacon is sharing with their congregations, city staff, and others in our community which reviews what Prairie Pointe is and why it's so important. As you read through, keep in mind that the city is only being asked to approve land use. They aren't asking for funding. There will be more information about Prairie Pointe on the city of Shakopee's website, including an invitation for your comments. I hope you'll take a look, chat with myself or someone at Beacon with any questions and join me in telling the city that we support Prairi- Pointe as a great investment for our future. I want these new neighbors because we have an opportunity, so close to home, for a work of our faith values according to Mathew 25 31-46 that would support about 50 families and benefit our entire neighborhood. i'd love to hear why YOU support Prairie Pointe as weE. To learn more about Beacon and Prairie Pointe, visit: www.beaconinterfaith.orgiblod/organizingioventiew-orairie-pointe/ For any questions, you can email Beacon at praepaintepbeaconinterfa h.org or reach out to me at maimulc@gmail.com Your neighbor, Ann IViulcrone maimuicCDgmaii.com Page 405 of 508 Emails / Website Comments received by planning staff from persons opposed to the development. From: Mel Made It Jewelry Sent: Friday, May 22, 2020 2:13 PM To: Kyle Sobota <KSohata(r)ShakopeeMN.gov> Cc: Michael Kerski <M.Kerski@shakopeemn.gov> Subject: Re: KC Hall property Just thought you both should know that 3 houses within the block went on the market since we found out about the Beacon property. One of those is my neighbor to the West, the house that's in the middle of the 3 houses that back up to the property. They are asking $310K for a house that SHOULD sell for at least $335K. BUt they just want out before the City Council votes. 2 more families on our street had real estate agents over on this week and I have no doubt one of them will also be selling. Your decisions to go ahead with this development without the neighborhood having an opportunity to meet with the developer has put panic and fear into all of these families. Several are not looking to stay in Shakopee even, because they feel the City doesn't support it's current residents and don't have our best interest in mind with the new Comprehensive Plan. We also have many seniors (from the senior townhomes) that are upset that they didn't get a chance to be heard at a continued meeting of the Planning Commission. I believe it was wrong to just assume that those people would just have the same things to say as the residents that did speak. I honestly wonder if it was even legal to take away their opportunity to be heard since most don't use technology so they couldn't enter a public comment and they didn't feel safe coming to the meeting. I also wanted to let you know that the 3 residents that back up to the proposed Beacon property expressed a few weeks ago at the Planning Commission meeting that they'd like to meet with Chris from the Beacon to learn more about the property. That was 2 weeks ago and although he has contact information for us, he has not reached out as he said he would. Having stay at home orders is not a good excuse either. I know for a fact that the builder for another proposed development has met twice with the residents of an adjacent neighborhood during this same time period. So it's possible, if they really want it to happen. I know things are out of your hands now, but I thought it was important for you to know as City officials, how this is affecting your residents; the people you're supposed to be representing. So maybe another time when similar things happen, you might make different decisions. Melanie (Jezel-Rangel 1847 Cireenway Ave. From: Kyle Sobota <KSo of .(r,Sha:kopeeMN.gov> Sent: Friday, May 22, 2020 2:37 PM To: Mel Made It Jewelry Cc: Michael Kerski <1MK rsk @shakopeemn,gov> Subject: RE: KC Hall property Page 406 of 508 Hi Melanie — I have forwarded your message to Chris Dettling to make him aware of your concerns and also your interest in speaking with him. I hope he reaches out to you and others in the neighborhood. K( Kyle Sobota Senior Planner, City of Shakopee 485 Gorman Street, Shakopee MN 55379 952-233-9349 ...:........:........:....... hakopeeMN.gov Thank you for the reply. I also sent Chris an email regarding this since we haven't heard from him about a meeting. This entire process has upset my family as well as other families in the neighborhood. It's really sad that things weren't done differently to take into account the feelings and concerns of the current residents. I realize they have a right to develop the land, but there's a right way and a wrong way to go about things if you want the neighboring residents to embrace and welcome the families that'll call Prairie Pointe their home. As it seems right now, I've only found 1 person in Prairie Bend that is "for" this development. I believe the main reason is because it was "forced down our throats" rather than working with the neighborhood so people understood more about it and felt they had an opportunity for input. The City and the developer are the ones that held the responsibility to make that happen and honestly had an opportunity to make it happen. Sadly, many feel both parties have failed at this. We ask that you at least take this into consideration next time you have the opportunity to do things the "right" or "wrong" way for the current residents. Have a good weekend! Melanie Thank you so much for taking the time to send a about information to me. I know your day must be very busy but it helps clarify some things for me. I also appreciate that you will be providing masks for anyone that does not have one. I will share that with as many people as I can in the short period of time that we have before the meeting. I look forward in forward to meeting you tonight. Melanie Gezel-Rangel Page 407 of 508 From: Kyle Sobota <KSobota@ShakopeeMN.gov> Sent: Monday, May 4, 2020 10:29 AM To: Mel Made It Jewelry Subject: RE: KC Hall property Hi Melanie — Here is a link to the PUD Ordinance. https: //shakopee.municipalcodeonline. com/book?type=ordinances#name=151.048_Planned_Unit Development District . There is a not a specific structure setback for PUDs, but it must be considered to be similar to a comparable zoning district. In Beacon's case the B-1 regulations require a 30' setback from the lot line along Sarazin St, 30' from the eastern lot line, and 20' from the north and south lot lines. People attending the meeting tonight will be required to wear masks (we will be providing a mask if someone doesn't have one). People in attendance will be in the lobby practicing social distancing protocols. People speaking as part of the public hearing may enter the council chambers one at a time. There is a monitor in the lobby with sound for following the meeting / presentations. People will be called to speak for the specific item they are attending for. I will be at City Hall, the commissioners will not be at the meeting in person, they will be on Zoom. Here is a link to the table of uses of what is permitted in commercial zones. You will need to scroll down the page to see the table. http s ://shakopee.municipalcodeonline. com/book?type=ordinances#name=151.007_Gener al Regulations . Multi -family dwellings are a permitted use in the B-1, Highway Business zone (as are bars / restaurants, retail stores, offices, etc.) Provided a permitted use meets the design requirements in City Code for setbacks from lot lines, amount of parking, building height, landscaping, building materials, etc. someone is able to apply for a building permit and there is not a public process or public hearing. In the table in City Code, Permitted uses are noted as a "P" in the table. Other types of uses are conditional uses, which require a conditional use permit with a public hearing / notification requirement. Some of the uses that are conditional uses in the B-1 Zone are gas stations, vehicle repair operations / body shops, childcare centers, pet daycares, daycare centers, which are noted as a "C" in the table. The other use listed in the table is "P*", which is a permitted use with special qualifications. For instance, a drive-thru window is a use that is permitted with qualifications. We require that there is enough space for 6 vehicles in line, and adequate circulation on the site in order for a drive-thru to be allowed. Last, accessory uses are noted as an "A", which is a use that is allowed attached to a primary use, a fence or a detached garage is an accessory use to your house. Beacon is going through the Planned Unit Development process as a mechanism that allows for public comment, and they had hoped to have more dialogue with neighborhood. As part of the PUD review, they need to meet the PUD criteria and exceed design requirements (in their case it is by exceeding minimum exterior building materials requirements and the Energy Code). A PUD allows for Beacon to have a design concession, in their case it is on the required amount of parking between the proposed church and apartment building. Between the two uses of the site they are currently short 10 parking spaces. If the number of the seats in the church went down, or the number of apartment units went down slightly, or a combination of both, Prairie Pointe could Page 408 of 508 become a permitted use, they would just need to meet all the other design requirements of City Code. If the request is approved, the PUD process allows for Beacon to have a design concession on the required amount of parking, but requires them to comply with all the conditions of the PUD. For a PUD, the City Council may choose to add additional conditions like, requiring additional landscaping or changes in building materials / design. In the case this PUD is denied, their design could be altered to meet all City Code requirements and then it could begin construction. If you have any questions, please feel free to contact me. S A PI Kyle Sobota Senior Planner, City of Shakopee 485 Gorman Street, Shakopee MN 55379 952-233-9349 I w w ShakopeeMN.gov Good morning! I know you must be very busy today but I'd like to know if you can get me a link at your earliest convenience? I have been unsuccessful in finding the requirements for a PUD online that would speak to the density requirements vs what is proposed of Prairie Pointe, what the screening requirements are and specifically how far from a property line that they can build. Can you please help direct me to where I'd find that online? Will you be in attendance tonight? And lastly, can one of us from the Prairie Bend neighborhood stay in the room and take notes? (socially distancing of course). Thanks for all you're doing for the city. Melanie From: Kyle Sobota <KSobota@ShakopeeMN.gov> Sent: Monday, May 4, 2020 10:29 AM To: Mel Made It Jewelry Subject: RE: KC Hall property Hi Melanie --- Yes, the meeting will be open for public comment at City Hall on Thursday night. We will be requesting that people leave the meeting once their items are complete. We will be requesting that people practice social distancing in the lobby and while seated in the chambers. We have a monitor in the lobby, so people will be able to tell what item is up on the agenda, so they may enter the chambers to view the presentation / discussion and provide comments. Page 409 of 508 Kyle Sobota Senior Planner, City of Shakopee .. 485 Gorman Street, Shakopee MN 55379 SOAK" j Fj`" 952-233-9349 I www:ShakopecMN4gov From: Mel Made It Jewelry Sent: Monday, May 4, 2020 9:58 AM To: Kyle Sobota <KSobota@ShakopeeMN.gov> Subject: Re: KC Hall property Thank you for the information. My main concern is how high the building is, the impact it'll have on the neighborhood and community and the fact that the property isn't zoned for high density housing. I have a few questions. In your email Friday you said we'd be able to make comments in person at the Planning Commission meeting on Thursday, can you confirm that? What steps will be taken for the community to be able to be fully involved in the meeting while still practicing social distancing? Thank you for all your doing for the project. My hope is that we can work together to make both sides happy. Melanie From: Kyle Sobota <KSobota@ShakopeeMN.gov> Sent: Friday, May 1, 2020 3:29 PM To: Mel Made It Jewelry Subject: RE: KC Hall property Hi Melanie — The full staff report will be published on the website later this afternoon at: https://www.shakopeemn.gov/government/mayor-city-council/agendas-minutes . Informational materials / plans on the project are currently available at: https://www.shakopeemn.gov/home/showdocument?id=4748 . Public comments may be entered at https://www.shakopeemn. gov/Home/Components/FormBuilder/FormBuilder/15ba334ce7794214 a96b480aae2f262c/644 . The public hearing notice for this application was actually sent at the same time as we send other public hearing notices for developments. I have received telephone calls from older residents to the west of this site so far. One gentleman was actually calling from his residence in Arizona and plans to speak with City Council members. We still plan to accept public comments in person at the meeting on May 7th during the public hearing. Page 410 of 508 Beacon had planned to have informal meetings with the neighborhood members, but the timeline they had planned on was unfortunately after the beginning of the Stay at Home Order / social distancing guidelines being established. The staff of Beacon have asked that they be given their contact information for questions on this development. They would be able to share information with you about their other developments. Their contact information is: Chris Dettling Director of Housing Development 612-432-5820 CDettling@beaconinterfaith.org Matt Soucek Senior Project Manager 651-789-6260, ext 239 MSoucek@beaconinterfaith.org If you have other questions, please feel free to contact me. SHAM Kyle Sobota Senior Planner, City of Shakopee 7 485 Gorman Street, Shakopee MN 55379 952-233-9349 I www:S@@peeMN.gov From: Mel Made It Jewelry Sent: Friday, May 1, 2020 3:04 PM To: Kyle Sobota <KSobota@ShakopeeMN.gov> Subject: KC Hall property I haven't had time to gather my thoughts to write an email or call the Council members yet and thought before I do anyway, I should be asking you for more information. I'm very deeply disappointed that this letter sent to me approximately 25 days before the meeting is the first time my neighborhood is being given a chance to have input into this property and the plans for it. I feel like when I State was requesting a Conditional Use permit for the property further down 4th Ave, that the neighborhood was involved at a much earlier stage. I'd love to have more time to research other complexes that are similar that they've built to see how they'd fit into our neighborhood. I've also talked to several people that live near the property over the past several days and many feel being able to be at the meeting would be better than to send in an email or post a public response on the City website. Also, many of the residents most impacted by this development, the seniors in the townhomes across the street, don't have access to the interne to post a response or send emails. The ones I spoke with would feel more comfortable coming to a meeting in person. So for these 2 reasons I'd like to request that the topic of their Conditional Use permits be moved to a time when neighbors can come to the meeting in person. Page 411 of 508 In the meantime can you send me the application, preliminary plans and staff report for the land ? If possible, if you could get it to me at your earliest convenience so I could maybe have the weekend to share it with my neighbors. I would greatly appreciate it but understand if you're not able to considering I'm sending this email so late in the day. Thanks so much for your time. Melanie Gezel-Rangel Hello, My name is Yvonne Farish and I am a resident on Greenway Avenue, very close proximity to where this proposal is being made. While I am a person of faith I have questions and reservations about what is being proposed in our backyard. I am a special education teacher and unfortunately with recent pandemic changes to education I haven't been able to research and look into your proposal as much as I would like. I'm concerned with the increased traffic to this squeezed in area. There is already an apartment complex on Sarazin street that creates multiple cars and trucks consistently parked along the street. Our small residential area is squeezed in between these. In looking at the plans briefly it appears the apartments are being fit "up close and personal" alongside Greenway housing's backyards. This seems like a lot to be fitting two different parcels on this area. I am also concerned with the effect this may have on the value of my house. While I am open to finding affordable and welcoming housing for those in need I question what other options and locations have been explored that may be a win -win for all parties involved. Yvonne Farish 1984 Greenway Ave Dear Ladies and Gentlemen: I currently reside in Canterbury Pointe Condominiums on Sarazin Street in Shakopee, directly across the street from the prior KC Hall. I purchased my home here in March 2018, due in large part to it being a very peaceful neighborhood and nice surrounding neighborhood (Prairie Bend). I, along with my neighbors, were very distressed to learn of this proposed apartment complex which will interfere with the peace and quiet of our neighborhoods, and likely dropping our property values as well. There have to be other better options in Shakopee for this complex rather than putting it in the middle of a quiet and peaceful residential community. Therefore, I beg you, PLEASE, PLEASE, PLEASE do not let them build this complex at the proposed site of 4th Avenue and Sarazin Street! Thank you very much for considering my concerns. I will not be attending the meeting tonight due to social distancing. Patty Voss Page 412 of 508 Good Afternoon, I am sending this email to you all to express my concern over the proposed Beacon Housing Prairie Pointe project. I have been a resident of the Prairie Bend neighborhood since its origin in 1996. As an original resident here I have witnessed all of the changes that the city of Shakopee has made directly around my neighborhood. I recognize the growth of our community and the need to bring industry in to support the city. Until now, I have accepted these changes, although undesirable, without complaint. This is primarily because none of the rezoning and construction projects actually entered the neighborhood. This project is different. This project enters the neighborhood, a neighborhood that is already saturated with too many multi unit residences and not enough green space and resources to support them. To the west, we have the new Canterbury Commons apartments. To the southwest off of Alysheba Rd, we have the Addison Apartments with 290 units along Jeffery Allen Dr. Also off of Alysheba Rd, there are many units of townhomes along Swaps Dr., Ferdinand Dr., Gannon Dr., Flamingo Dr., Affirmed Dr., and Cascade Dr. with no single family units mixed in. To the south along Eastway Ave, Parkway Ave, and Sarazin we have several units of Eagle Creek Townhomes. On the other side of Sarazin, we have Eagle Creek Apartments. One street further east, Roundhouse St, runs between Eagle Creek Blvd and 4th Ave. This road is entirely housed with townhomes and apartments with no single family homes mixed in. To complete our circle, on the north side of Prairie Bend, we have some townhomes on the other side of 4th Ave. This brings us to the intersection of 4th Ave and Sarazin, the proposed site for the Beacon Housing project, where you want to build a church and a 3 story transitional housing unit on a parcel of land that isn't large enough to support the buildings, parking and green space. This 3 story building will also butt right up to the back yards of 3 families. Would you want this apartment building just feet from the end of YOUR yard? Not only would it impact your quality of life from noise, eyesore and landscape, but it would also impact you economically. How would you feel about the impact that would have on your homes worth? If this project goes through, it will not only depreciate our homes value. My primary concerns are for increased traffic, increased noise and the potential for an increase in crime. An increase in these makes for a less safe environment for the families who live here. These are not the conditions we signed on for when we purchased our homes here. If you want to truly respect the residents of Prairie Bend neighborhood, I challenge you to do the math. What is the ratio of multi unit homes to single family? What are the ratios of the other neighborhoods in Shakopee? How many children live in this neighborhood? What is the ratio of access to playgrounds/green space for these kids versus kids in other neighborhoods? How many conditional use permits, variances, and rezonings has the city of Shakopee approved surrounding this neighborhood? How does that number compare with other neighborhoods in Shakopee? Is this equitable, honorable? And finally, how are the residents of Shakopee to trust you when purchasing a home? I researched the zoning prior to purchasing this home and it was my Page 413 of 508 expectation for the city to honor the information available to me at the time. That has not been the case to this point. I am asking you to honor it now and NOT approve this project. Sincerely, Stefanie Pavlicek The property in the name of Shakopee Council 1685, current address, 1760 4th Ave E, Shakopee MN, parcel #27-905-018-0 has a property value of $1,200,000 for tax year 2020. The proposed market value for 2021 is $1,230,000. The taxes for 2020 are $39,718. Why would you remove this property from the tax rolls when there are other properties more suited for this type of housing. How much will BEACON be paying in taxes? How much will the church be paying in taxes? What benefit is this to the City of Shakopee and to Scott County? Gene Steinhaus 2374 Pinewood Dr I am not in favor of changing zoning for parcel. I also am not in favor of removing this parcel from tax rolls. this proposal will increase use of school, city , and police services with little tax support it will also affect my property value. robert foster 2284 pinewood dry We think that rezoning the area by 4th and Sarazin should NOT happen. We live across the street in the 55+ community. We moved here for the quiet, and safe area. We are afraid that putting a 50 unit building here for homeless and low income will change all that. Our property value will go down. There will be much more noise. traffic, kids running through yards. Possibly crime. What happens if the church decides to sell the church or tear it down and put up ANOTHER low income building! Rezoning allows this to happen!! double trouble!! how can we be assured this wont happen? we cant!! the space is very small. not much parking. No street parking.. If you need to put up more living spaces for low income please look elsewhere! Why not put up 55+ plus areas? As the world is aging we need more places for us to live. Its very hard to find places like we have, they sell almost before they are for sale. Please reconsider and dont put this through without the community behind you. People that live around here should be given the opportunity to express their feelings about this. No information was given to area residents until a sign went up a week or so ago with no information what was happening. Please do not REZONE for this 50 low income housing! Page 414 of 508 Thank you Deb Pudell Good Morning Michael, I write to you this morning as I have also wrote to our mayor and city council members to express my concern with the propose development on Fourth and Sarazin. The city of Shakopee already has many subsidize housing options for families and has done its part. I live on Greenway Ave. and have three kids and my boys bike/walk by the KC hall all the time. I would not have peace of mind knowing that potentially there could be families living there that are not in the best position. Why aren't cities like Chaska approving these types of developments? I moved here from Minneapolis in 7th grade and my mom hope moved us to this City where we can experience growth and away from gangs, drugs, poverty mindset to strive and live a better life. Our government needs a better system to help these families not continue to enable them to get comfortable. I ask that you please evaluate this situation and remember that there's families that will be affected that actually work hard each day to pay for $300K plus homes, pay $4,000 plus in taxes and contribute to the economy. I know this may sound harsh and I am not trying to be but it is frustrating that something like this could happen. Everyone deserves a chance to get back on their feet, but we know that hasn't been the case in many of these subsidize homes. Thank you, Mariely I live in Canterbury Point, a senior community , Due to the Virus issues my neighbors and I would like to attend this meeting but are scared of the spread. So we would like to ask if this meeting could be rescheduled at a later date. We as a neighborhood are against this project. Thank you. Mark I'm writing to express my concern over the potential sale of the KC Hall property located at 1760 4th Ave E. I have been following the updates in the media, scarce as they are, and appreciate a moment of your time to reflect on a few things. First off, I support public housing initiatives and public assistance programs. I have been a police officer for 12 years, and I am well aware of the positives and negatives of similar housing sites. I know that the positive does outweigh the negative, and I know that what we typically see is only the negative. Nobody will notice the individual or family doing their best to stay on their feet, but the outliers and the problems will Page 415 of 508 be evident. I'm not focusing this email on the potential negative impacts this facility will have on the immediate area, I'll save that for others who likely have voiced those concerns. Below are a few other thoughts I would like to express. Zoning: I understand this location is currently zoned as commercial. To the north of this property is also zoned as commercial, stretching to the east to Canterbury road and beyond. Placement of this facility in the commercial zone makes no sense. It does not fit with the surrounding properties, which in turn do not fit with an adjacent multi -family housing complex. Businesses on 4th Ave E do not support local individual needs, such as food, shopping, gas, or other convenience locations. I anticipate that a percentage of the residents of the proposed project may rely on public transportation or other non vehicle transportation. This immediate area does not support foot/bike traffic relating to essential living. The area is mostly residential or commercial (non -customer forward business). Multi -Housing and population density: The immediate area surrounding 1760 4th Ave E already supports many families, specifically -east of Marschall Road, South of 4th Ave E, and North of Eagle Creek. This area holds some of the largest (if not the largest) apartment buildings in town. Additionally, townhouse developments spread across and between all commercial and residential neighborhoods. The immediate area will be seeing a huge population boom with the addition of Canterbury Commons (thats for a different email). I'm concerned over the addition of another multi -family residential building being pushed into an already bursting neighborhood. It takes a few minutes on google earth to see this. Current Facilities and amenities: This area is also mostly commercial and residential. Currently, shopping and service businesses are non existent in the area. The right commercial space catering to the needs of the many residents in the area could be very successful in supporting the community aligning with Shakopee's vision. Shakopee vision and Memorial Park: I am following the proposed improvements and direction of Memorial park with a ton of excitement. The new pathway connecting the residential neighborhoods to Memorial Park (tunnel under 101) is fantastic. This safe pathway links the park to the entire residential area to the south. I know about it because I enjoy running and biking, but based on the foot traffic I've observed I suspect many others in the area are unfamiliar with how easy it is to get to the park. I assume it is because of the commercial business gauntlet that subjectively blocks the way. Adding a homeless facility will aid in the mental roadblock, connecting the many families to the park. I feel that continued proper redevelopment and landscaping can finish the connection. Case studies and research: I ask you all this. Have you done thorough research into facilities supported by Beacon that have been in operation for 1 year, 3 years, and 5 years? If not, I ask that this be a part of the decision making process. Have you discussed any community impacts with the leaders in cities with similar facilities? Please do so if you have not. Page 416 of 508 Timing of the meeting and lack of transparency: I have seen nothing and heard nothing of this project over the past few months. Media has obviously been dominated with covid related news, but this proposed project has been very under the radar since December 2019. That concerns me. Also, due to covid-19 restrictions community members are unable to attend a meeting to voice these concerns. Business needs to continue with the City, however this topic being discussed and possibly approved without the openness of a public council meeting is bad practice and against local government standards. In summary, I understand this need for affordable housing has been identified. I fully believe that 1760 4th Ave E is not the right place. Beacon has done a good job at identifying and targeting the area due to a motivated seller, and low cost. Win for them, but in the big picture this is the wrong idea for the property. The surrounding amenities will not compliment and sustain such a facility and its needs. The population density is growing in the immediate area, and proper balance is critical to create a safe and enjoyable community. Thank you for your consideration. Mike TenEyck 2067 Greenway Ave Shakopee, MN 55379 We are homeowners in the Prairie Bend neighborhood and are writing to express our concern with the rezoning of the land at Fourth Avenue and Sarazin Street. We are concerned about the size of the proposed apartment building and the detrimental effect it may have on our neighborhood's safety and property value. The Prairie Bend neighborhood is already surrounded by several multi -family housing units (Eagle Creek Townhomes, Prairie Bend Townhomes, Canterbury Apartments, 55+ townhomes, to name a few). With this high density housing and recent business developments such as MyPillow and Amazon, there is already a lot of traffic for a residential area. The intersection of Fourth Avenue and Sarazin Street is dangerous. We are concerned that an influx of traffic from a 50 unit apartment complex will only make it worse. An apartment complex (low income or not) is a threat to our neighborhood's privacy, peace and property value. Over the past three and a half years that we have lived in our home, the green space around our neighborhood has been purged by new developments. We hope this is one that will be stopped. Please take our neighborhood's best interest into consideration and vote "no" to the rezoning. Sincerely, Hayden and Jami Tanner Jami Tanner 1726 Parkway Ave Dear Mr. Sobota, Page 417 of 508 We are homeowners in the Prairie Bend neighborhood and are writing to express our concern with the rezoning of the land at Fourth Avenue and Sarazin Street. We are concerned about the size of the proposed apartment building and the detrimental effect it may have on our neighborhood's safety and property value. The Prairie Bend neighborhood is already surrounded by several multi -family housing units (Eagle Creek Townhomes, Prairie Bend Townhomes, Canterbury Apartments, 55+ townhomes, to name a few). With this high density housing and recent business developments such as MyPillow and Amazon, there is already a lot of traffic for a residential area. The intersection of Fourth Avenue and Sarazin Street is dangerous. We are concerned that an influx of traffic from a 50 unit apartment complex will only make it worse. An apartment complex (low income or not) is a threat to our neighborhoods privacy, peace and property value. Over the past three and a half years that we have lived in our home, the green space around our neighborhood has been purged by new developments. We hope this is one that will be stopped. Please take our neighborhood's best interest into consideration and vote "no" to the rezoning. Sincerely, Hayden and Jami Tanner Dear Shakopee Officials, As a tax -paying, property owning resident of Shakopee I wish to make you aware of my concerns in regard to changing the zoning on the property on 4th and Sarazin St. My concerns are: • The neighbors were not notified of the proposed change in zoning. There was no neighborhood meeting held to inform the neighbors. It was blamed on covid-19 but everything else is able to function and meet via online technology This is not an excuse. I don't understand how property can be rezoned without making adjacent property owners aware of the rezoning? • The neighbors have many concerns of how the rezoning will effect the value of their property, lifestyles, and well-being. They have not had a voice in this proposal. • The proposed apartment building plan is flawed: o there is no transition space between the proposed building the neighbors property; is too close to the neighbors property line o there simply is not enough parking, especially for the church which now can fill the West Junior High parking lot on Sundays. o lack of open space for kids to be outside and play and not good access to the community playground • Resonate Church members have not approved the purchase of the KC building. They have not even seen or heard of a proposal. According to the congregation's constitution the church body needs to vote on this. Page 418 of 508 I hope you will listen to the concerns of the neighbors. The way this has been managed has not been ethical and simply not fair or in the best interest of the community. Hopefully, another location for the much needed apartment building can be found soon. Thank you for your service to the city of Shakopee. Kind Regards, Diane Haugen 4100 Jarmann Lane I am not fan of this project. It's to small of a parcel for a 50 unit multifamily/church complex. There is already to much traffic on 4th and Sarazin, adding a church and apartments is way to much. I'm retired and on a fixed income, my property value will go down and I'm sure my property taxes will continue to go up. Did I mention I'm retired, To much noise {cars, kids} Trash, Canterbury Pointe is a retirement community, Quiet and peaceful. Due to the virus you should reschedule this meeting for a later date so more of us seniors could attend and not feel threatened. Mark Coghill 414 sarazin st May 6, 2020 1884 Greenway Avenue Shakopee, MN. 55379 Dear Mr. Kerski, I am a resident of Prairie Bend Subdivision. I have spoken to many residents in my neighborhood who are wanting to attend the public hearing about rezoning the KC Hall property tomorrow but don't feel safe Socially distancing themselves in the City Hall Building where you can't control the number of people showing up for support and to voice their concerns. Since the State of MN is still under the Stay At Home Order for COVID would it be a wise decision to reschedule the hearing or come up with some other resolution so that residents of Shakopee can physically in person show their support in numbers in order to voice their concerns? I appreciate your attention in this matter and am eagerly awaiting your response to this request. Thank you for all that you do in serving the city of Shakopee Sincerely yours, Sharon DuLaney Page 419 of 508 I wish to express my concerns of the proposed development of Prairie Pointe. As the owner of one of the properties that directly borders the proposed development, I do not believe this is an appropriate use of the space. Also, according to section 151.048 of city Municipal Code Planned Unit Development District I believe this application is invalid/incomplete due to the following sections. A. Purpose and Intent 9. Ensure the establishment of appropriate transitions between differing land uses. * * There is NO transition whatsoever in the 20 feet between the actual building itself and the border of my property which is zoned RI-B. C. Design Standards. 1b. The applicant shall be required to submit along with the PUD site plan, an open space plan illustrating the use and/or function of the open space area or areas. The open space plan shall include any proposed improvements and/or design of the open space area. * * After reviewing the application, I have found no open space design included. Although from my estimates it does meet the 15% open space requirement, there are no proposed uses of the open space area. It is mentioned that there is a park 800 feet from the proposed development, but no proposed use of the open space for the children on site. Although this development falls under the goals of our city's comprehensive plan, and I agree there is a shortage of affordable housing in our city, I believe this application for PUD zoning is purely is to avoid the requirements for R4 zoning for which it would not qualify. In reviewing the zoning map of Shakopee I could find only one place in which an R-4 zone immediately abuts a R1-B zone being the Sexton Apartments next to Hy-Vee. In this case there is ample transition between the different zones and the building itself is on the opposite side of the property from the residential area. Please see photo below which shows the transition space. In my case a three-story apartment building 20 feet from my property line will greatly reduce my property value. Although there are mature trees on my property line, they will not provide ample privacy from a three-story building only 20 feet away (and no privacy whatsoever in the winter). In addition, I am concerned about security. I only have a four foot chain link fence on my property and I do not believe this will be a deterrent from keeping childing from "cutting" through my property to get to the park. Nor do I believe they will stay on the sidewalk once they reach the end of my fence and will kitty corner across my front yard to expedite their walk to the park and/or use my yard as a playground. I'm also concerned about traffic and parking on Sundays. Currently there is no parking on the east side of Sarazin, only the west side. That parking lot WILL fill up on Sundays (because the goal of any church is to grow their flock), and I have a concern for the pedestrians that will have to cross an already busy thoroughfare to get to church. Also, if it overflows to my street (Greenway Avenue), there will be an issue with traffic flowage through the neighborhood as Greenway is so narrow that two cars cannot pass if cars are parked on both sides of the street. Page 420 of 508 HI, HI , ono ill ,�PYa H, I HI� 1111111111)1,1110 �H.I �° Nwi ijIHHIll II �hB�60%W1�'J I look forward to seeing you at the meeting on May 7, 2020 as this is just a fraction of my concerns regarding this matter. Sincerely, Daniel Arbuckle I believe this will decrease the value of the houses in the neighborhood as well as increase crime rates in the area. Too much congestion in that small corner as well as increased noise. We already have multiple unit housing with rental townhomes, apartments and all the activity from Canterbury. It would be especially disturbing to the houses right behind the area. We've already lost green space and trees where Amazon, My Pillow etc was built so we are surrounded by big business as well, with increased traffic on 4th. Pam/Gary Savage 1925 Eastway Ave. To whom it may concern, I am a Shakopee resident that lives near Sarazin and Greenway Ave. It has recently been brought to my attention that there will be a vote taking place this week to approve the sale of the KC Hall at 4th and Sarazin to Beacon, who is planning to tear down the existing building and replace it with low-income housing. I would like to express that I am Page 421 of 508 FIRMLY against the approval of this sale and Beacon's plans to build a low-income housing community in the neighborhood that I reside. Prior to living in Shakopee, I lived in the Phillips neighborhood in S. Minneapolis. The Phillips neighborhood is no stranger to homelessness, section 8 housing and all that comes along with it. Pan -handlers at every corner. Strangers sleeping on your front step. Needles and bottles tossed to the curb, littering the streets. All of this even with homeless shelters and other resources available to folks. I understand the need for assistance to those who don't have a home. But from my personal experience, many of these folks can be unstable and difficult to deal with. I imagine the question here is: Where should Low-income housing be located? Maybe East of Canterbury Rd for easy access to a variety of jobs for those able to work? Based on my past experiences, I don't feel comfortable living near low-income housing or raising our future family near one. I moved to Shakopee to live with my now fiance. Living here I've come to know people here are kind, the neighborhoods are safe and its a family friendly town. Please don't take that away. Thank you for your time and your consideration. Sincerely, Ashley Ellinghuysen Ashley Ellinghuysen 2004 Greenway Ave I would like to raise my objection to the proposed rezoning of the KC Hall property. I believe a better use of the property can be found that would be a better fit for the neighborhood. I am against the proposed building of more multi family housing or townhomes on that piece of property. I have no issues with the building being used as a church as long as appropriate measures are taken to keep the neighborhood peaceful and quiet. I believe current zoning allows for commercial uses such as retail/service businesses, offices, etc. These types of single story buildings would be a better use of the property. As currently proposed with the apartment complex and church the parking requirements will be maxed out and unable to allow for any growth for church parking. This will force people to park in the adjoining neighborhood. To many assumptions are being made that this won't happen. There will also be additional traffic from the residents in addition to the already significant traffic increase caused by Amazon, My Pillow and all the other businesses in that area. I think this neighborhood has accepted enough of the progress that has occurred in Shakopee. I empathize with the people whose homes back up to this proposed building. I don't think anyone with a single family home would want a 3 story building towering over their homes and backyards. Surely property values will be affected negatively. I also empathize with the struggle of low-income people looking for affordable housing. This is just not the right location for that building. I live 1 block away from the KC Hall. Does the city or planning commission notify the residents who live near areas that would be affected by these changes? I have not received any information and heard it from a friend. Page 422 of 508 I will be unable to attend the meeting on 5/7/20 as I will be out of town. Count me as a citizen who is against this proposed use change. My phone number is 763-772-2046 if you would like to discuss. Michael Betsinger Dear City Administrator Reynolds, We are writing with regard to the proposed Prairie Pointe development at 1760 4th Avenue East. This property is located directly behind our house and is proposed to be built 20 feet from our property line. As homeowners, we are opposed to any multi -housing being built there. We purchased our property knowing that the property was zoned for business, not multi -housing residential. The proposed 3-story building will give its renters a birds -eye view into our backyard and inside our house. We have placed trees and landscaping that acts as a buffer, but in the fall and winter months it will be anything but private. We can't imagine that you would be in favor of such a property being built in such close proximity to your home. We are quite frustrated that the Shakopee Planning Commission would not think about the homeowner in this regard. I understand that the property is going to serve low-income families and those experiencing homelessness. We are well aware of these programs and believe in their mission, however, even if it were a market rate property we would be opposed to this type of use for the land. I don't believe any homeowner wants a 3-story apartment community as their neighbor. This will negatively affect our home value, our privacy, not to mention increased traffic on an already busy street. If you look in a two-mile radius you will see that we have plenty of multi -housing units. There are better options than to abut apartments next to single-family homes. We respectfully ask that you vote no to rezoning the property and it's use for multi -housing. We know our neighbors are writing you as well and have similar concerns. I ask you as an elected official to represent us as residents. We sympathize with the need to help the less fortunate, but feel it's the Planning Commission and City Council's responsibility to find win -win solutions in this regard. This is a win -lose for the homeowners in our neighborhood. We understand that we are asking you to make a less than popular choice. It is hard to say wait to an organization wanting to do something good, but we ask that you find a better land solution and maintain the zoning as business. Sincerely, Page 423 of 508 Neal & Connie Hildebrandt 1827 Greenway Avenue Shakopee, MN 55379 Good Morning, I am writing to voice opposition against the proposed housing facility on the KC Hall site. The area is not zoned for a housing development for a reason, altering this should not be permitted. With a young child and more planned in the future we are against what this development will bring largely due to the continuous noise and traffic. When we purchased our home we loved the neighborhood. It was a quiet, single family area. We understood the area around us was zoned for business and since we have lived here we have seen tremendous business growth with the addition of amazon, my pillow, etc. Traffic for these businesses stick largely to 101 and have not interferes with our neighborhood. The development at the KC Hall site would. Please consider the neighbors and do not permit this development to move forward. Respectfully, Heather We do not want high density apartment buildings in our small residential neighborhood. Please don't do this. Jessica Skow 1843 Parkway Ave It's wrong to change the ZONING of the property at 4th Ave and Sarazin St from business (the KC Hall) to PUD (planned unit development). They want to build a 3 story/50 unit APARTMENT building 20 ft from someone's backyard. The people who live in that area probably don't want other people spying on them there homes above which yes of course its gonna happen. Thatd also a terrible place to put apartments. Also not thinking about the people who love there is extremely heartless. There opinion should matter since its going to disrupt there lives. Please try and find a different place to build the apartments. Thank you. Vanessa Lawton Page 424 of 508 This is to make it known we are in strong disagreement to the proposed rezoning of the property at the corner of 4th and Sarazin. The Knights of Columbus currently stands in this location. ReZoning this to build another high density housing unit is not in the best interest of this neighborhood. The building will be too close to existing properties as well as create another eyesore for current residents and create a difficult environment in which to sell our homes in the future. We are not pleased with this proposal. Thank you, Brian and Ramona Fennem Hello, I live on Parkway Ave, about 2 blocks from where the new proposed apartment homes are planning on being put it. This is a quiet, low traffic neighborhood where the kids play in the nearby park and bike in the street. We do not need a large brand new apartment complex put in right next to all of our single family homes! The parking alone is currently infeasible. If we need a new complex, put it along Marshall Rd or Eagle Creek where all of the other apartments are. I also protest re -zoning the building to allow for yet another church in Shakopee. We already have 24+ churches! This facility surely could be used for something that is more of a benefit to the surrounding community. Thank you for your consideration, Jessica Skow Please do not build this property. It is meant for business development not a residential building. Jessica Merriam , 2103 Ormond Dr I object to the proposed replatting and PUD Development in our area at 1760 4th Avenue E. based on population density in the area with 50 new units plus aii the other apartments presently located here. Traffic will become a problem. Our property valuations will decrease. Could use better building materials, like brick exterior. Just not good location for this type of project. Maybe it should be built in the Canterbury Commons large area. Please give this as much consideration as you would desire for yourself and the abutting senior development/community. David Mack Page 425 of 508 From: Mariely Lopez Date: May 7, 2020 at 10:47:27 PM CDT To: Mariely Lopez Cc: Michael Kerski < K °t.skikshakopeernnagov> Subject: Re: Development on Fourth and Sarazin - CONCERNS After listening to today's meeting I want to update that I see this from my neighbors perspective as well as Beacon. If this is Gods plans it will work and if not it just won't. Thank you. Mariely Sent from my iPhone Dear Shakopee city officials, This letter is in regards to the lot Located at 1760 4th Ave E, Shakopee, MN 55379. There are many concerned neighbors that do NOT feel the need for another large apartment in our neighborhood. Please respect the taxpayer living in Shakopee and ask yourself, would you like to live next to another apartment complex? There are plenty of places for people to live especially after the new complex will be finished at Canterbury park. Just having one new building by Canterbury I have noticed a huge increase in traffic. That is only one of the concern in the neighborhood. Please do what you can to stop the building of the apartment complex at: 1760 4th Ave E, Shakopee, MN 55379. Thank you for taking the time to read this email Sincerely, Dan Masica compromised immune system. I am writing to strongly oppose the Knights of Columbus property. Since I moved in three years ago we have gone through a huge negative change. Giant Amazon complex, two massive warehouses, and a construction company replaced woods and corn fields. We get the train horn echo off of the giant warehouse. Large increase in traffic at start and quitting time at Amazon, and Semi traffic on 4th who go down to Marshall and cant make the turn onto Marshall. We've suffered enough for the good of this city. Putting low income housing across from vulnerable seniors effective keeping from a walk on Sarazin without fear and locked in their Page 426 of 508 homes becuse people and kids are cutting through our property to get to McDonalds. If you want to isolate us even further you couldn't have found a better way. I would suggest putting this project near HyVee where they have access to groceries, Liquor Store, Pharmacy, and bank plus a gas station. I will organize my fellow residents to vote directly on weather this project is forced upon us. We have suffered enough. DO NOT rezone to allow this project Steven E Eklund 1512 4th Ave East 55379 Sent from Mail for Windows 10 ....................... Please share your comments and questions about this application: I have to voice my concerns. My husband and I went searching for a home a year ago to move our family out of a lower income neighborhood. We specifically chose to not live near an apartment building. We chose a home in a lovely neighborhood. I also want to add...when I was quite young, my mother became a widow. We lived in a dilapidated trailer for many years. I understand the need for this housing. I do not understand why this particular location has been chosen. This is right down the street from our new home. My concern is placement of an apartment building in this lovely neighborhood. Will it bring property values down? Will we be paying less in taxes because this will change the surrounding neighborhoods to low-income? What will happen when traffic picks up? Another stop sign placement right outside our backdoor, with that much more noise from accelerating vehicles on 4th? Rebekah Lano 422 Spruce Street Please share your comments and questions about this application: Please do not rezone this area to allow a three story apartment complex to be built. There is already significant traffic through that area due to my pillow and amazon. This includes trucks. In addition, the natural view from neighboring houses that border the property will be disrupted. The previous greenery was ripped out when the my pillow and other industrial buildings were constructed. Has any thought been given to the influx of students into the area schools that will result from this change? 50 units with the possibility of 1 to 2 kids per unit. This will directly impact the existing schools and school transportation. The school district is already operating in a deficit. Has any thought been given to the city turning the unused property into a park or play ground? The city needs more greenery not less. Jim DuLaney 1884 greenway ave Page 427 of 508 Please share your comments and questions about this application: Our family has lived at 1804 Greenway Ave. for nearly 30 years. Our home is 1/2 block south of the Knights of Columbus Hall. As Shakopee residents living in close proximity, we ADAMANTLY OPPOSE the application and proposed use of the property located at 1760 4th Ave E. for a Multifamily Residential Apartment. We are opposed to this proposed project for several reasons: * The number of units are too dense for a property of this size. Increased vehicular traffic and lack of green space for children to play are just a couple of our density - related concerns. * Our single-family residential neighborhood already has a high density of multi -family dwellings nearby. Eagle Creek Townhomes, Canterbury Apartments, 55-senior townhomes, and more. Adding another multi -family complex further diminishes the value of our homes and single-family neighborhood quality of living. Our family asks the Shakopee Board of Adjustment and Appeals to deny the application for Conditional Use Permit, or any other allowance to use the property located at 1760 4th Ave E. for the use of a Multifamily Residential Apartment. As long-time, tax -paying Shakopee residents, we hope our voices will be heard by members of the Shakopee Board of Adjustment and Appeals, City Council, Mayor, and City Administrator. Thank You. Respectfully, Gordy Pehrson Debi Windschitl-Pehrson Gordon (Gordy) and Deborah (Debi) Pehrson 1804 Greenway Avenue Please share your comments and questions about this application: Please dont put low income housing in our neighborhood! We have too many surroundings in our resident neighborhood that is bring high traffic to our streets that are brought by Amazon, Canterbury, townhomes, senior housing, rental townhomes.... and now you're looking at low income housing?? Our neighborhood has no consistency to it all mix matched hodge podge.. and our kids cant even ride bikes crossing roads because they may get hit by all the traffic on these roads in the three block radius. Please entertain low income housing in an area of our city that is either not as developed or or already has low income housing on site. I really want to keep my neighborhood and house value attractive. Stacia Almendarez 1803 Parkway Avenue Please share your comments and questions about this permit application: There is too much traffic in our neighborhood with the newer warehouses that have been built on 4th Avenue. When I moved into our neighborhood it was quite you could cross the street with your child on a bike and not worry about getting hit by a driver and now there is so much traffic I feel many times I am crossing Eagle Creek or Marshall Road. When is enough commercial bldgs in residential neighborhoods? I understand there is a commercial bldg there currently but it was used very little and it really never seemed to cause many traffic issues. Please think of the neighborhood.... amazon brought a lot of traffic to our area and your adding more. Stacia Almendarez 1803 Parkway Avenue Good Afternoon, Page 428 of 508 Our family has lived at 1804 Greenway Ave. for nearly 30 years. Our home is 1/2 block south of the Knights of Columbus Hall. As Shakopee residents living in close proximity to the Knights of Columbus Hall, we ADAMANTLY OPPOSE the application and proposed use of the property located at 1760 4th Ave E. for a Multifamily Residential Apartment, especially if said property will be used as a homeless shelter. Homeless shelters better serve the needs of the community when located near commercial establishments. They do not belong in residential neighborhoods. Homeless shelters cause property crimes, such as theft and vandalism, to increase by 56% for residences located within 100 yards of a shelter. Conversely, commercial establishments have shown a 34% decrease in breaking and entering when within 100 yards of a shelter. Our home is within 100 yards of the proposed shelter. Our family asks the Shakopee Board of Adjustment and Appeals to deny the application for Conditional Use Permit, or any other allowance to use the property located at 1760 4th Ave E. for the use of a Multifamily Residential Apartment. As long-time, tax -paying Shakopee residents, we hope our voices will be heard by members of the Shakopee Board of Adjustment and Appeals, City Council, Mayor, and City Administrator. Thank You Respectfully, Gordy Pehrson Debi Windschitl-Pehrson 1804 Greenway Ave. Planning Staff Response: Hi Gordy — Here is the link to view information on the current projects proposed in Shakopee. If you have further questions, feel free to contact me. There is also an area to provide comments on the proposed projects. htt s4//wwwshako eemn4apov/o-overnment/ma or cit council/a pel -minutest ubdac....corn nt Kyle Sobota Thanks Kyle. This information corrects some of the misinformation we received and is very useful, however, we are still opposed to this proposed project for several reasons. 1. A multifamily residential apartment building that houses only long-term homeless is similar to prison living, with residents sharing common histories, problems, and values. It would be better to house individuals with various socio-economic situations. Some would pay the market -rental -rate, some would pay a little less with subsidies from HUD or another source, and some long-term homeless. 2. 50 units is too dense for a property of this size. Increased vehicular traffic, lack of greenspace for children to play, are just a couple issues we are concerned with. 3. Our single-family residential neighborhood already has a high density of multi -family dwellings nearby. Eagle Creek Townhomes, Canterbury Apartments, 55-senior Page 429 of 508 townhomes, and more. Adding another multi -family complex further diminishes the value of our homes and single-family neighborhood quality of living. As long-time, tax -paying Shakopee residents, we hope our voices IN OPPOSITION TO THIS PROPOSED PROPERTY USE will be heard by members of the Shakopee Board of Adjustment and Appeals, City Council, Mayor, and City Administrator. Thank You Respectfully, Gordy Pehrson. 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NM gigits!!,!! ictriiml Bn� MIii��!11YtiVN%Flk���� k : i1 Ai 1 , 11, \I\ • osomminflam'Ika;1 1111111111 111111,1111111111 II 1I IIUDuuuuuuuuillllll rtii ill 0.4 ulll III �IIIII� omol M. iiiiiaiiaiaaaaa////%/ rug o nl 1101140 w 0- CY s 1 0) •Omi fin OO a) (I0 • •� i a. City of Shakopee - Shakopee Fire Department Staff Review Case Number: SH100145 From: Tom Pitschneider, Fire Marshal Date: 04/13/2020 Request: Zoning, PP and FP — Prairie Pointe Staff Recommendation: Approve with Changes/Conditions Listed Project Conditions 1. Fire Department access shall be provided in accordance with code. The fire apparatus access road shall extend to within 150-feet of all portions of the exterior walls of the first story of the building as measured by an approved route around the exterior of the building or facility. (MFC 503.1.1) 2. Verify watermain and water service location. The submitted site plan does not match the utility plan. 3. Provide details on the construction type and square footage of each level of the building so that a fire -flow calculation can be determined. The site will require the installation of 2 or more fire hydrant which are currently not provided. 4. Buildings 3 or more stories in height must be provided with standpipes in all stairs. 5. Attic areas must be provided with a dry -type fire sprinkler system. 6. Page 442 of 508 City of Shakopee Memorandum TO: Kyle Sobota, Senior Planner FROM: Micah Heckman, Project Engineer SUBJECT: Preliminary Plat, Final Plat & PUD — Prairie Pointe CASE: SH100144 DATE: April 20, 2020 The staff review indicates a request to review a Preliminary Plat, Final Plat and Planned Unit Development (PUD) application for Prairie Pointe. Prairie Pointe is located east of Sarazin Street, and south of 4th Avenue. This review should be considered preliminary, as more comments will follow with additional submittals. However, the Public Works Department offers the following comments at this time to the applicant and to the planning department: The following items need to be addressed/completed prior to release of the Final Plat for recording: 1. Pay all applicable fees/charges listed below, as required by the most current City of Shakopee Fee Schedule. • Storm Water Management Plan Review Fees 2. Connect the existing building to the public water system. 3. Submit a turning movement diagram that shows accessibility for fire, garbage and delivery trucks throughout the proposed development. 4. Execute and record a shared parking plan and submit a recorded copy to the city. 5. Easements will be shown on the Final Plat as approved by the City Engineer. They include, but are not limited to the following: • Dedicate drainage and utility easement to encompass the 100-year high water level of all storm water basins. H:\Development\Prairie Pointe\Project Management\Letters and Memos\Staff Review\PP_FP Review (Prairie Pointe) 04132020.docx 1 of 3 Page 443 of 508 6. Vacate all existing public drainage and utility easements and rededicate applicable easements. 7. Revise plat to show all existing easements currently encumbering the site. 8. Submit a detailed lot area drawing showing the total plat area, the total drainage and utility easement area encompassing 100-year high water levels of storm water basins, the total area of right-of-way and the total area of lots. 9. At a minimum, obtain conditional approval of the development's storm water management plan. 10. Provide electronic files (AutoCAD and Portable Document Format — PDF) of the Final Plat to be recorded with datum on the Scott County coordinate system. The following items need to be addressed/completed prior to approval of a grading permit, a street and utility plan and/or a building permit: 11. Plan review comments have been prepared and a copy of those comments are attached to this memo. Revise the plans to address the comments and provide a comment response memo. 12. Submit a complete set of construction drawings for review and approval by the City Engineer. 13. Obtain final approval of the subdivision's storm water management plan. 14. Obtain a NPDES construction site permit prior to any land disturbing activity. A copy of the permit must be provided to the city. 15. Grade the entire site, as proposed on the approved plans, in one phase within one year from the date of approval of the grading permit application. Grading is defined as bringing the site to the proposed finished grade with materials deemed acceptable by the City of Shakopee engineering department, providing topsoil per City requirements and applying seed, mulch and/or sod per City requirements and providing an as -built record grading plan per Section 2.5 of the City of Shakopee Design Criteria. 16. The owners of each lot must enter into a Utility Facilities Easement Agreement with the city. The document must be recorded with Scott County. 17. The contractor must submit a Construction Management Plan to the city prior to any construction activities. H:\Development\Prairie Pointe\Project Management\Letters and Memos\Staff Review \PP_FP Review (Prairie Pointe) 04132020.docx 2 of 3 Page 444 of 508 18. Record plans need to be provided per the City of Shakopee Design Criteria, Section 2.5 and Section 11.2 (A-L). The record plans need to be certified and submitted to the engineering department. Provide a letter from the engineer of record certifying all improvements were constructed per approved plans and under the direct supervision of the engineer of record. Recommendation The Public Works Department recommends approval of the application subject to the conditions above being addressed/completed by the applicant. H:\Development\Prairie Pointe\Project Management\Letters and Memos\Staff Review\PP_FP Review (Prairie Pointe) 04132020.docx 3 of 3 Page 445 of 508 RESOLUTION NO. R2020-077 A RESOLUTION OF THE CITY OF SHAKOPEE APPROVING THE PRELIMINARY AND FINAL PLAT OF PRAIRIE POINTE WHEREAS, Matt Soucek, applicant, and Shakopee Council 1685 Home, property owner, has made application for Preliminary and Final Plat of Prairie Pointe; and WHEREAS, the property upon which the request is being made is legally described as; The North 30 rods and 4.7 feet (499.7) of the Northwest Quarter of the Southwest Quarter, Section 5, Township 115, Range 22, Scott County, Minnesota EXCEPT the Easterly 59 rods and 1.5 feet (975) thereof all distances measured along the North -South and East-West lines thereof; and WHEREAS, notice was provided and on May 7, 2020, the Planning Commission held a public hearing regarding the Prairie Pointe preliminary plat, at which it heard from city planning staff and invited members of the public to comment; and WHEREAS, the City Council reviewed the Preliminary and Final Plat on June 2, 2020. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota that the Preliminary and Final Plat of Prairie Pointe is hereby approved subject to the following conditions: 1. The applicant must comply with the Stormwater review memo dated April 28, 2020. 2. The applicant must comply with the Engineering Department memorandum dated April 20, 2020. 3. The applicant must comply with the Fire Department memorandum dated April 13, 2020. 4. The applicant must comply with the Shakopee Public Utilities Memorandum dated April 8, 2020. 5. Park dedication must be paid consistent with the current City of Shakopee fee schedule at the time of recording of the plat. The current fee schedule for 2020 is $4,450 per unit for Lot 2, Block 1, and $9,500 per acre for Lot 1, Block 1. 6. Tree removals on the site must comply with the woodland management regulations of City Code. Trees intended to be saved must be protected by tree protection fence placed at the dripline of trees for the duration of construction. Page 446 of 508 7. A shared parking agreement between Beacon and Resonate Church must be provided that provides parking spaces consistent with the provided shared parking diagram. 8. Development of the site, including driveways, sidewalks, parking areas and land uses must be consistent with the submitted site plan and review comments received. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held the day of , 2020. Attest: Lori Hensen, City Clerk Mayor of the City of Shakopee Page 447 of 508 ORDINANCE NO. 02020-005 AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING THE ZONING MAP ADOPTED IN CITY CODE SEC. 151.003 BY REZONING A PORTION OF PROPERTY FROM HIGHWAY BUSINESS (B-1) TO PLANNED UNIT DEVELOPMENT (PUD) ZONING DISTRICT WHEREAS, Matt Soucek, applicant, and Shakopee Council 1685 Home, property owner, have applied to rezone property from Highway Business (B-1) to Planned Unit Development District; and WHEREAS, the property is legally described as: Lot 2, Block 1, Prairie Pointe, Scott County, MN (proposed); and WHEREAS, notices were duly sent and posted, and a public hearing was held before the Planning Commission on May 7, 2020, at which time all persons present were given an opportunity to be heard; and WHEREAS, the Planning Commission has recommended to the City Council that the subject property be rezoned as stated; and WHEREAS, the City Council heard the matter at its meeting on June 2, 2020; and NOW, THEREFORE BE IT ORDAINED, that the City Council of the City of Shakopee hereby adopts the following findings of facts relative to the above -named request: Criteria #1 The original zoning ordinance is in error. Finding #1 The zoning ordinance is not in error. The property owner desires to utilize a Planned Unit Development as a way to redevelop an existing site for affordable housing. The City Code now requires PUD developments to have their own zoning designation, not an overlay. Criteria #2 Finding #2 Criteria #3 Finding #3 Significant changes in community goals and policies have taken place. Significant changes in community goals and policies that concern this property have taken place. There is a desire to have a mix of housing types and price levels within the city. Significant changes in development patterns have occurred. Significant changes in development patterns have not occurred in this case. The applicant is proposing to use a PUD as a mechanism to develop housing on an underutilized part of a property that is currently zoned for commercial use. Page 448 of 508 1 Criteria #4 Finding #4 The Comprehensive Plan requires a different provision. The proposed guiding is consistent with the approved 2040 Comprehensive Plan that guides this area for Mixed Residential development, with densities between 6 and 30 units per acre. BE IT FURTHER ORDAINED, that the portion of the property at 1760 4th Avenue East is hereby approved for rezoning to Planned Unit Development (PUD) District Passed in regular session of the City Council of the City of Shakopee, Minnesota held on the day of , 2020. Mayor of the City of Shakopee Attest: Lori Hensen, City Clerk Published in the Shakopee Valley News on the day of , 2020. PREPARED BY: City of Shakopee 485 Gorman Street Shakopee, MN 55379 Page 449 of 508 2 ORDINANCE NO. 02020-006 AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA, CREATING PLANNED UNIT DEVELOPMENT DISTRICT DEVELOPMENT #4 1N THE ZONING ORDINANCE FOR A PORTION OF THE PROPERTY LOCATED AT 1760 4' AVENUE EAST WHEREAS, Matt Soucek, applicant, and Shakopee Council 1685 Home, property owner, have applied to create the Prairie Pointe Planned Unit Development; and WHEREAS, the property is legally described as: Lot 2, Block 1, Prairie Pointe, Scott County, MN (Proposed); and WHEREAS, notices were duly sent and posted, and a public hearing was held before the Planning Commission on May 7, 2020, at which time all persons present were given an opportunity to be heard; and WHEREAS, the Planning Commission has recommended to the City Council that the subject property be adopted as Planned Unit Development District #4 as stated; and WHEREAS, the City Council heard the matter at its meeting on June 2, 2020; and NOW, THEREFORE BE IT ORDAINED, that the City Council of the City of Shakopee hereby adopts the following findings of facts relative to the above -named request: Criteria #1: Is the proposed development consistent in all respects with the comprehensive plan? Finding #1: The proposed development complies with the current guiding for the site as mixed residential, which allows for densities of 6-30 units / acre. The proposed density is 22.5 units / acre. Criteria #2: Is the proposed development, including deviations from design standards compatible with surrounding land uses? Finding #2: The proposed development involves the construction of an apartment building on a site that is located between light industrial development and single-family houses. Criteria #3: Does the proposed development provide adequate open space, circulation, pedestrian orientation, parking, recreation, screening, and landscaping? Finding #3: The applicant is proposing adequate pedestrian and vehicular connectivity and open space, along with evergreen trees for screening of adjacent properties. Criteria #4. If the primary function of the PUD is to encourage development which will preserve and enhance worthwhile natural terrain characteristics, it should not force intense development to utilize all portions of a given site in order to arrive at the maximum density allowed. Finding #4: The proposed development plan does not reach the maximum density of the B-1, Highway Business zoning district (previous zoning classification), or the comprehensive plan, which allows for more dense residential development. Criteria #5: Does the PUD provide an overall compatibility of land uses and overall appearance and compatibility of individual buildings to other site elements or to surrounding development. The architectural style of buildings shall not solely be a basis for denial or approval of a plan. 1 Page 450 of 508 Finding #5: The site is currently zoned B-1, Highway Business and is located adjacent to several different land uses, including light industrial development, a cemetery, townhomes, and single family houses. Criteria #6: Whether the proposed PUD plan would offer a greater general public benefit than would be realized under the underlying zoning district and/or general zoning provisions. Finding #6: The proposed PUD has a greater public benefit, in that it allows for housing for residents below the average median income, which is a goal of the comprehensive plan. The development also utilizes an underutilized portion of a commercially zoned property adjacent to single-family residential properties. BE IT FURTHER ORDAINED, that the part of the property described above located at 1760 4th Avenue East is hereby approved for PUD District #4 in the Zoning Ordinance subject to the following conditions: 1. Development of the site, including driveways, sidewalks, parking areas and land uses must be consistent with the submitted PUD site plan and review comments received. 2. Building materials and elevations must match the approved plans approved by the City Council. 3. Landscaping on the site must comply with City Code. Financial security for plantings must be provided consistent with City Code requirements. 4. A shared parking agreement between Beacon and Resonate Church must be provided that provides parking spaces consistent with the provided shared parking diagram. The agreement must be recorded. 5. Bicycle Parking must be provided consistent with City Code Requirements (APBP approved racks of at least 2 spaces + 5% of vehicle spaces) 6. Tree removals on the site must comply with the woodland management regulations of City Code. Trees intended to be saved must be protected by tree protection fence placed at the dripline of trees for the duration of construction. 7. The applicant must comply with the stormwater review memo dated April 28, 2020. 8. The applicant must comply with the Engineering Department memorandum dated April 20, 2020. 9. The applicant must comply with the Fire Department memorandum dated April 13, 2020. 10. The applicant must comply with the Shakopee Public Utilities Memorandum dated April 8, 2020. Passed in regular session of the City Council of the City of Shakopee, Minnesota held on the day of , 2020. Mayor of the City of Shakopee Attest: Lori Hensen, City Clerk Published in the Shakopee Valley News on the day of , 2020. PREPARED BY: City of Shakopee 485 Gorman Street Shakopee, MN 55379 Page 451 of 508 2 9.B.3. AKO Shakopee City Council June 2, 2020 FROM: Michael Kerski, Director, Planning and Development TO: Mayor and Council Members Subject: Establishment of a Small Business Relief Program Policy/Action Requested: Approve Resolution No. R2020-076 Creating a Small Business Relief Program subject to the Availability of CARE Funds and funding approval by the State of Minnesota Recommendation: Approve Resolution No. 2020-076 Discussion: The Coronavirus Aid, Relief, and Economic Security Act also known as the CARES Act, is a law intended to address the economic fallout of the COVID-19 pandemic in the United States and was signed into law by President Donald Trump on March 27, 2020. As part of that law, funding was passed on to the State to support expenses due to the impacts of COVID-19. It currently can not cover lost municipal revenues. Various cities and counties across the United States are exploring the use of these funds as forgivable loans to support small, local businesses. Many of these businesses were not able to participate in many of the recent programs or various programs ran out of funds. The State of Minnesota is exploring if CARES Act funds can be used to create Small Business Relief Programs. The State has not received final guidance or made a decision if this is an eligible use of the funds. Cities and counties are setting up these programs in anticipation that this is a possible use if the program has been previously approved. Modeling off of several other cities and counties, staff is proposing the attached program should the City of Shakopee receive CARE Act funds that can be used for this purpose. It would only be funded if the use is approved by the State and if Council agrees to fund it at Page 452 of 508 some level to be reimbursed out of CARE Act funding. Budget Impact: ATTACHMENTS: Program Outline o Resolution No. R2020-076 Page 453 of 508 The Small Business Relief Fund will provide forgivable loans of $15,000 to small businesses most in need of support. Funds will help businesses pay for critical expenses such as rent or mortgage payments, utilities, payments to suppliers and costs associated with reopening. Providing this support will increase the capacity of small businesses with a physical location in Shakopee to survive the current crisis and will help prevent potential future blight scenarios. Terms • One-time emergency forgivable loan up to $15,000, based on economic injury from COVID-19. • Funds can be used for operating expenses, including rent or mortgage payments, utilities, payments to suppliers, or other critical non -payroll business expenses (including expenses related to reopening) as approved by the fund administrator. Eligible Businesses Businesses must meet all of the following criteria as of March 1, 2020, to be eligible. • Must be a locally owned and operated for -profit business with a physical establishment in Shakopee. • Must have at least one employee in addition to the owner as of March 1, 2020, and fewer than 20 employees. • Must have been operating for at least 12 months prior to March 1, 2020. • Must be licensed, in good standing, and current on property taxes prior to May 1, 2020, if applicable. • Must demonstrate a significant loss in revenue since March 15th, 2020 (Evidence of revenue loss related to the COVID 19 emergency) Ineligible Businesses • Those that have already received PPP loans • Home -based businesses; those without a physical establishment • Non-profit organizations • Self-employed, independent contractors, or businesses with no employees other than owner(s) • Corporate chains, multi -state chains • Businesses that primarily sell pawned merchandise, guns, tobacco, or vaping products • Businesses that derive income from passive investments; business -to business transactions; real estate transactions; property rentals or property management • Businesses that comprise of legal practitioners or insurance sectors • Businesses that derive any income from adult entertainment • Businesses that primarily derive income from gambling • Businesses in default conditions prior to February 29, 2020 Application Process • Application Forms will be accepted beginning when and if CARES Act authorization is approved • Completed Application Forms can be emailed to jbrewungton@shakopeemn.gov • The fund administrator, City of Shakopee, will notify approved applicants by email within 10 business days • Upon notice of an approved application, applicants will be required to submit the following within 10 business days: Page 454 of 508 o Evidence of revenue loss related to the COVID 19 emergency. Applicants should submit documentation that best demonstrates the impact and is deemed acceptable to Program Administrator. o Evidence of employment prior to March 1st, 2020. Acceptable documentation may include period reporting from a 3rd -party payroll processor, applicant's Federal Form 941/Employer's Quarterly Federal Tax Return, or other State or Federal payroll -related filing. Page 455 of 508 RESOLUTION NO. R2020-076 A RESOLUTION APPROVING THE CREATION OF A SMALL BUSINESS RELIEF PROGRAM THAT WOULD BE FUNDED BY CARES ACT FUNDS SUBJECT TO APPROVAL OF THE STATE OF MINNESOTA WHEREAS, the City of Shakopee ("City") is supportive of its small businesses; and WHEREAS, the small business community, especially those with twenty employees or less, have been severely impacted by the closures required to protect the health of the public as part of COVID-1 9; and WHEREAS, the State of Minnesota is exploring the use of CARES Act funds to provide support for these programs; and WHEREAS, the City is making every effort to support local small businesses during these difficult times; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Shakopee as follows: 1. The City is creating a Small Business Relief Program that would provide forgivable loans not to exceed $ 1 5,000 on a first come, first served basis to eligible businesses subject to receiving funding from the State of Minnesota and subject to all of the following criteria: a. Must be a locally owned and operated for -profit business with a physical establishment in Shakopee. b. Must have at least one employee in addition to the owner as of March 1, 2020, and fewer than 20 employees. c. Must have been operating for at least 12 months prior to March 1, 2020. d. Must be licensed, in good standing, and current on property taxes prior to May 1, 2020, if applicable. e. Must demonstrate a significant loss in revenue since March 15th, 2020 (Evidence of revenue loss related to the COVID 19 emergency) Page 456 of 508 2. The following business would be ineligible: a. Those that have already received PPP loans b. Home -based businesses; those without a physical establishment c. Non-profit organizations d. Self-employed, independent contractors, or businesses with no employees other than owner(s) e. Corporate chains, multi -state chains f. Businesses that primarily sell pawned merchandise, guns, tobacco, or vaping products g. Businesses that derive income from passive investments; business -to business transactions; real estate transactions; property rentals or property management h. Businesses that comprise of legal practitioners or insurance sectors i. Businesses that derive any income from adult entertainment j. Businesses that primarily derive income from gambling k. Businesses in default conditions prior to February 29, 2020 Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota, held this day of , 2020. ATTEST: Lori Hensen, City Clerk Mayor of the City of Shakopee Page 457 of 508 9.B.4. AKO Shakopee City Council June 2, 2020 FROM: Michael Kerski, Director, Planning and Development TO: Mayor and City Council Subject: To allow the temporary closure of First Avenue East between Lewis and Holmes streets and to allow temporary expansion of liquor license areas. Policy/Action Requested: Approve Resolution No. R2020-074 approving a temporary closure of First Avenue East Between Lewis and Holmes streets and allowing the temporary suspension of City Ordinance 114.11(A) for various restaurants and bars to serve in the public ROW or in parking spaces and approval of certain extension of premises. Recommendation: Approve Resolution No. R2020-074 Discussion: Because of COVID-19, many of our local restaurants and bars have been closed for more than two months. The Governor is slowly opening the State and is allowing bars and restaurants to have limited outdoor seating. Some downtown businesses have no space on their sites or other limitations. By closing First Avenue East on a temporary basis the city is providing an area where these establishments can safely set up outdoor areas to serve customers. Also, Pablo's is requesting several public spaces in front of their establishment to allow proper spacing of tables. As part of this Resolution, the staff is also recommending the suspension of certain Oridnance sections to allow service in the public ROW and approval of these permit extensions. Other locations throughout the city will be able to set up outdoor tables on private property. They can use their own parking areas subject to working with city staff to ensure proper site circulation on their private property. Some establishments have cross access easements for parking that need to be maintained. Staff will reach out to these establishments to ensure Page 458 of 508 easy compliance. Budget Impact: ATTACHMENTS: a DEED Guidnace - Exhibit B a Exhibit A - Map a Resolution Page 459 of 508 EED Deve opments 000000000000000000000000000000000000000000000 ,SEE WHY MINNESOTA IS A GREAT PLACE TO IJVE,r WORK AN BUSINESS EMPLOYMENT AND ECONOMIC DEVELOPMENT Outdoor dining beginning June 1: Answers to commonly asked questions May 28, 2020 I Commissioner Steve Grove On June 1, Minnesota moves into Phase 2 of the #StaySafeMN Plan, which includes the option for restaurants and bars to re -open for outdoor dining. We know that there are many questions from businesses and customers about how that process will work. Please see below the answers to questions we've been hearing about Executive Order 20-63. What establishments can be open for outdoor food and alcohol sales? Restaurants, food courts, cafes, coffeehouses, bars, taverns, brewer taprooms, micro distiller cocktail rooms, farm wineries, craft wineries, cideries, and golf courses may be open for outdoor service with the following requirements: • Adopt and implement a COVID-19 Preparedness Plan • Ensure a minimum of 6 feet of distance between tables • Limit on -premises capacity to no more than 50 persons • Limit table service to 4 persons, or 6 if part of one family unit • Require reservations in advance • Require workers to wear masks and strongly encourage masks be worn by customers Are restaurants and bars still allowed to be sell wine and beer curbside/to-go after June 1? Yes, to -go sales of wine and beer are still permitted. Page 460 of 508 Are customers allowed to use the restrooms while dining outdoors? Yes, customers can go indoors to use the restroom. Social distancing protocols must still be followed, and people should avoid congregating indoors to wait for a restroom. Are customers allowed to go indoors to access an outdoor space, such as a rooftop patio? Yes, customers can go indoors if necessary, to access an establishment's outdoor space. Social distancing protocols must still be followed, and people should avoid congregating indoors. What about inclement or sever weather? Can customers go indoors then? Yes, the underlying goal of all guidelines and requirements is to keep people safe and save lives. In the event of inclement weather, customers may move indoors to package food and pay bills but must exit quickly — businesses should not allow customers to move indoors to continue their meal. While indoors, customers must follow social distancing rules and avoid congregating. Nothing in Executive Order 20-63 prohibits indoor sheltering in the event of severe weather. Can restaurants set up tents to offer dining in a screened -in or covered setting outdoors? Yes, as long as at least half of the sides of the tent are open or screened. What about fast -casual restaurants or cafes? Do they have to take reservations? These establishments should plan to take on -site reservations for people who sit down at outdoor tables to eat or drink products they buy on site. They must also ensure that tables are 6 feet apart and that customers are not standing and waiting for tables to open. Why a 50-person maximum, instead of deciding on a percentage of total capacity? Setting a percentage for capacity of outdoor spaces presents a number of additional challenges because it isn't as clearly determined as indoor spaces — and, in coordination with municipal governments, some establishments may create new outdoor spaces that were not previously used Page 461 of 508 for dining. A cap on the total number of people is more consistent with limiting the amount of people any person might come into contact with for extended periods of time. Does the 50-person maximum include employees? No. An establishment is limited to a maximum of 50 customers on the premises at any one point, not including employees. Are restaurants required to keep a log of reservations? No, restaurants are not required to keep a log, nor are they discouraged from doing so. There is no requirement that a business check an ID or verify a person's identity with their reservation. What if a restaurant doesn't have a patio or outdoor space? Can they use a parking lot or create a new outdoor space beginning on June 1? Establishments will need to work directly with their local governments on permitting for spaces not typically designated for outdoor dining Executive Order 20-63 encourages local governments to work collaboratively with establishments on this process. For local governments interested in using right of way on state highways for food and beverage service, the Minnesota Department of Transportation is working on a permitting process for cities and townships and will provide more information soon. Can restaurants combine seating areas, or close down a street to make a communal dining area? Spaces should be clearly defined and marked for each restaurant and contiguous to the establishment. Can a restaurant inside a mall reopen? At this time, only restaurants with existing or newly -permitted outdoor space (in coordination with their local government) can reopen. A restaurant, food court or other communal dining area that is fully enclosed within another setting such as a mall cannot reopen at this time for indoor dining. Page 462 of 508 Does a restaurant that has been operating as takeout -only need to develop a COVID-19 Preparedness Plan if they choose not to offer onsite outdoor dining? Businesses that were included on the Critical Sector list are required to comply with Centers for Disease Control and Prevention (CDC) and Minnesota Department of Health (MDH) COVID-19 guidelines and OSHA standards, but they are not at this time required to have a written COVID- 19 Preparedness Plan. Why can't restaurants open for indoor dining, but other places such as retail and salons can be open for indoor services and sales? Based on what we know at this point about COVID-19, some of the key factors that determine transmission risk of the virus include: how close you are to other people, how long you are in close proximity to another person, and how predictable the setting is regarding the ability to maintain social distancing. People eating and drinking indoors for extended periods of time in confined air spaces put customers and workers at an increased risk. Certain establishments, such as hair salons or tattoo parlors, are more conducive to requiring customers and workers to wear masks at all times — and paired with strict occupancy capacities, those establishments present a more predictable environment and less direct interaction with other people. Other retail environments, with strict occupancy capacities and social distancing protocols, can effectively minimize the number of people who might come into contact with others for extended periods of time. When will restaurants be able to reopen for indoor dining? Phase 3 of Minnesota's Stay Safe Plan will include some capacity for indoor dining. A date has not yet been set for when Phase 3 will begin. Page 463 of 508 "IIIIII'INII'lll 1 INIIIIIW li /y,Mu,lly'VNNV�,I�,W,NN'Vyu / r IIIIIIIII �I�IW��I�IIppI N�IIII� �Vu YVll�05110), �ii 10000,1,00000001. VluiuioiRilAI WWWWWV utimii inoOlpooloolooloollorilillM �I�Illi„pllVplllllul iliiillll olillllllllllllllllll u„ 1iil„u"�"°�—,01.0111uuuuuuuumuuuuuiiuuo ll'111111111111111111ii 1V uml 001111111111001000o11,0100001010II uuullll111, luii'ouuuuuuuuoR „11 10h1 �lpiiii111V uu11111111i111111 iiiioo uul uuull 4i w III IIIV iu IIIV IllllllllplVNdlo,o011 oujlld„m ' diolllllu111111111111 numnunum„ IIIIIIII,IIIY I I IIIIIIIII IIIIIIIII NIIr+ Ilu �I, Iw' nip ���� „�.q �, IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII '/',�I�,�����,u,�i�VWW"" �iI,IN ��'y lV �mu �,,l, a' „�i ���I,ul', �� hul l����, RuMu�,';. �I"�I M1m,u N;,,,,, µIIIIIMIy Iu, „ lnnAw��llq�pyw ,�KMIiuIWll"'VN'NW II�II„u,l AI ��I uuul�d l� 1jNl',YVVS)»Yhei iuuid l,s �Il,u uu u'du Illii ),\1q,,J'',(?\•(pli,i i NQ6 �^ ,ph ,, VII II Ism, li' ticco tottfHti oIl"N, W„ pwl, RI'rl II,Nll 1„," l,ui, �II, uIIIuIIV^INNNNN „III IIUI mii, III 4�� °IH''lllll„ °,'vpV,V,q ICI �, „I I'm 1 II dl IVuum IVIIII II yyyjvu� 1'VI om�„ww�w'%�� ���Ap,��l' �dWif,��dwN 101111111111111111111111111111111111111111111 0001111101111141 �i I Idr„ 1h4 MIII111111 'l� „III 1111hNII" I1ylllN 'fir 11 Illlllllllllllllllmllo 14N1001II 110011 uuu„%iuu0l uuMMumMryumwmmuuuu llll u�IIPImulpliI^IIIIIIIIIIIIIII IIIV IIII411111 1111111111111111111111 I�' Il.a���Yl@III iIV,,,,R uuuu �l 16)i m1�, olirril nr III �I^� ������ g IIIII�IIIIIIIIIIIII 4 11111111111111,11, h VI " I ' uiiVu ,W,m-'IV '° r I IIIII100000000, W0 111u1 RESOLUTION NO. R2020-074 A RESOLUTION APPROVING A CLOSURE OF FIRST AVENUE EAST BETWEEN LEWIS AND HOMLES STREETS AND ALLOWING THE TEMPORARY SUSPENSION OF CITY ORDINANCE 114.11(A) FOR VARIOUS RESTAURANTS AND BARS TO SERVE IN THE PUBLIC ROW OR IN PARKING SPACES AND APPROVAL OF CERTAIN EXTENSION OF PREMISES WHEREAS, the City of Shakopee ("City") is supportive of its small businesses; and WHEREAS, the small business community, and in particular the bars and restaurants in the historic downtown have been severely impacted by the closures required to protect the health of the public as part of COVID- l 9; and WHEREAS, the Minnesota Governor is opening the state in phases and restaurants and bars can have outdoor tables and chairs; and WHEREAS, the City is making every effort to support local restaurants and bars during these difficult times; and WHEREAS, the City finds that closing First Avenue East will allow a number of businesses to have adequate and safe seating in the public right of way; and WHEREAS, the City is also allowing the serving of alcohol at the locations listed subject to certain conditions. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Shakopee as follows: 1. The City is closing vehicular access to First Avenue East between Lewis and Holmes Streets twenty-four hours a day until such time that the City Administrator decides that it is no longer necessary to meet the governor's rules and regulations. 2. The City Administrator is authorized to permit use and enter into temporary agreements for the use of public spaces on First Avenue East, public parking lots and parking spaces on other city streets. 3. The City temporarily suspends Ordinance 114.11 (A) to allow alcohol service in the public rights of way, parking spaces and parking spaces in private parking lots. 4. All bars and restaurants with private parking Tots are permitted to provide outdoor service in a privately owned parking lot which is compact and contiguous to their establishment provided they have appropriate permission from the owner of the private property. Any bar and restaurant providing outdoor service is asked (a) to contact the City and provide a diagram of their proposed seating layout to ensure safety and maintenance of drive and fire Page 465 of 508 lanes and (b) provide a point of contact for city staff. City staff will monitor outdoor service and work with bars and restaurants if safety issues are identified. 5. All tents must be pennitted as required in City Code. 6. The City temporarily extends the defined premises of all on sale liquor licenses to include privately owned parking lots that are compact and contiguous to the licensed establishment. 7. All bars and restaurants utilizing publicly owned spaces for outdoor services must provide the city with (a) proof that their insurance covers the outdoor service area and (b) proof that the city is listed as an additional insured on their insurance. 8. Once the conditions in item 7 of this resolution are satisfied, the City temporarily extends the defined premises of the following establishments to include publicly owned spaces which are compact and contiguous to the licensed establishment, in accordance with the attached "Exhibit A". • Turtle's Bar & Grill • Shakopee Brewhall • Arnie's Bar • Pablo' Mexican Restaurant • Pullman Club 9. All bars and restaurants providing outdoor beer and alcohol service are still responsible for ensuring that all other laws, rules and requirements of statute and city code are followed, including but not limited checking identification, protecting against underage drinking, ensuring they do not overserve patrons and ensuring that on -sale alcoholic beverages do not leave the licensed premises. 10. Restaurants and bars using publicly owned properties shall have last call at 10:30PM and patrons must leave by 11PM since these areas are adjacent to residential areas. Failure to follow this rule is grounds for termination of the agreement to use public space at the City Administrator's discretion. 11. All bars and restaurants who elect to provide outdoor service are responsible for providing refuse removal and maintaining their service areas in an orderly manner and to not allow for debris to accumulate in or near the service area. 12. All bars and restaurants who elect to provide outdoor service shall be responsible for maintaining safe areas and following the State requirements that include: • Tables must be at least 6 feet apart; • Maximum on premise capacity is limited to 50 people; • Dining parties are limited to 4 persons, or 6 persons if part of one family unit; • Reservations are required, no walk-in customers are allowed; Page 466 of 508 • Workers must wear masks or face shields, and customers are strongly encouraged to wear face masks while waiting for food. • Following all additional guidance provided by the Minnesota Department of Employment and Economic Development. 13. This expires on July 3, 2020 or earlier if revoked by the City Administrator if state regulations are revised. Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota, held this day of , 2020. ATTEST: Lori Hensen, City Clerk Mayor of the City of Shakopee Page 467 of 508 9.C.1. Shakopee City Council June 2, 2020 FROM: Kirby Templin, Water Resources/Environmental Engineer TO: Mayor and Council Members Subject: Quarry Lake Water Level Management Plan Policy/Action Requested: Presentation by city staff on the Quarry Lake Water Level Management Plan. Recommendation: None. Discussion: Quarry Lake is landlocked because there is no outlet to allow water to discharge from the basin. Since mining operations completed and Quarry lake was established, water levels have been steadily rising. In 2019, the water level of Quarry Lake started to inundate park infrastructure. In 2019, Quarry Lake was pumped down to protect existing infrastructure from inundation and potential damage from frozen conditions. The drawdown was also to provide time to complete a water level management plan to evaluate outlet options and help establish a normal water level for long-term management of lake levels. The Capital Improvement Plan (CIP) project for annual erosion issues, pond cleaning and outlet improvements (Storm-20- 001) was amended to include the Quarry Lake Water Level Management Plan study. The water level management plan evaluated sources causing the steady increase in water levels and outlet options for long-term management of lake levels. This information will be used to make management decisions that include existing and future park improvements, and improvements proposed by the Shakopee -Prior Lake Water Ski Association. City staff will give a presentation on the Quarry Lake Water Level Management Plan. Budget Impact: Page 468 of 508 The Quarry Lake outlet project will be included in the 2021 CIP and will be funded through the Storm Drainage Fund. ATTACHMENTS: a CIP Sheet a Quarry Lake Water Level Management Plan a Quarry Lake Presentation Page 469 of 508 Capital Improvement Plan City of Shakopee, Minnesota 2020 thru 2024 Project # Storm-20-001 Project Name Annual Erosion/Pond Cleaning/Outlet Improvements Accounting Code Fund Surface Water Fund Description Department Storm Drainage Fund Contact Public Works Director Type Maintenance Useful Life Category Storm Sewer/Drainage Priority 1 Critical for Safety/Preservati Status Active Total Project Cost: $1,150,000 The 2020 project includes multiple improvements to address erosion and pond maintenance issues as follows: 1. Outlet safety improvement for ongoing maintenance needs at the Upper Valley Drainage Ditch crossing at 4th Avenue East. 2. Outlet modification of the stormwater basin east of Wakefield Circle. 3. Outlet modification of the stormwater basin northwest of the intersection of Windsor Lane and Hartley Boulevard South. 4. Outlet modification of the Prior Lake Outlet Channel culvert crossing at the Strauss residence driveway. 5. Replacement of the outlet to the stormwater basin southeast of Peace Circle. 6. Significant erosion of a drainage channel adjacent to Mystic Lake Drive South, south of Valley View Road East. The 2021-2024 projects are placeholders for future, yet to be identified projects. Justification Amended 1/7/2020, Add: 7. Quarry Lake outlet improvement. The 2020 projects are to address safety, erosion and water quality issues, and to make improvements to pond outlets that often clog and require frequent maintenance. Expenditures 2020 2021 2022 2023 2024 Total Construction/Maintenance Engineering/Administration 450,000 125,000 125,000 125,000 125,000 950,000 100,000 25,000 25,000 25,000 25,000 200,000 Funding Sources Total 550,000 150,000 150,000 150,000 150,000 1,150,000 2020 2021 2022 2023 2024 Total Storm Drainage Fund 550,000 150,000 150,000 150,000 150,000 1,150, 000 Total 550,000 150,000 150,000 150,000 150,000 1,150,000 Budget Impact/Other Projects are identified through issues with frequent maintenance, and inspections required by the NPDES MS4 permit. 230 Page 470 of 508 Capital Improvement Plan City of Shakopee, Minnesota 2020 thru 2024 Project # Storm-20-001 Project Name Annual Erosion/Pond Cleaning/Outlet Improvements Department Storm Drainage Fund Contact Public Works Director III ti u'IIIIm,,llllll �II',IIIIIIII,0010r.,III' ����n ".dl�� 114 PROJ ECT LOCATION 231 Page 471 of 508 Memorandum To: Kirby Templin, City of Shakopee Water Resource — Environmental Engineer From: Heather Nelson, PE Date: Apr129.2020 Re: Quarry Lake Water Level Management Plan WSB Project No. 015408-000 1. INTRODUCTION Quarry Lake, located south of Blue Lake in the City of Shakopee (Figure 1), is a man-made lake created uoaresult ofquarry operations. The lake does not have anoutlet; therefore, the water levels in Quarry Lake have continued to rise and have become a concern for the City of Shakopee (the City). The City has engaged WSB to assist in developing a water level management plan to evaluate outlet options for long term lake level management at Quarry Lake. |n2010. the water level at Quarry Lake started to inundate infrastructure previously constructed at Quarry Lake Park. Approximately one hundred million gallons of water were pumped out of the Lake over a two -month period to draw the water down approximately two feet to protect infrastructure while a water level management plan was developed. The cost of this emergency dnowdnwnwas approximately $55.00O. 2. WATER BUDGET FOR QUARRY LAKE The City would like to better understand the groundwater influences and consequences of outlet options. In order to accurately model how proposed improvements and future conditions would affect the Lake and surrounding areas, the existing drainage system was modeled. This was done by creating a water balance in the Lake and by quantifying existing conditions via modeling. The methods and results of these calculations and models are described in the sections below. The hydrologic and hydraulic modeling were conducted using XPSWMM 2018.1. This software allows for simultaneous modeling of stormwater runoff and its hydraulic effects. ArnK8apand Excel were used to calculate factors such as drainage areas, time of concentrations, and stage - storage curves. The Shakopee City-wide model, developed in 2018, was the basis of the Existing Conditions model. This model was then clipped and revised to model the Quarry Lake area in greater detail. Historic daily rainfall data from the St. Paul downtown airport' was used as a continuous storm in the model. Lake water surface elevation (WSE) observations were available from previous surveying and from City monitoring on 7/31/14 and 7/25/19. respectively. Rainfall data between these dates was used for the water budget. The continuous rainfall hydrograph from XPSWMM is shown inGraphic 1 below: x°sbowile" ,*roj°*s\v,,40n-0vm^ mmm"csla^ level m°m"m,54vwv00Water Level Management Plan Memo v4.zrz02ouoc, Page 472 of 508 hJrbyTempdin. PE April 29.202O Page mu om om onx o 5000 10000 15000 200025000 Time (hours Gnophic1: St. Paul Downtown Rainfall Data from 7/31A2D14bo7/2S/2DiW. Runoff influences on Lake water elevation were determined by survey data (where available) and |idarelevation data from Scott County hodetermine drainage areas. Drainage areas were modeled inXPSVVVV[N.These areas are delineated inFigure 2. Survey data was also used to create a stage -storage curve for the Lake. The stage storage for the Lake was used to determine water volumes in the water budget. Curve numbers for each drainage area were calculated based on previous land use discussions with the City as a part of the Shakopee City-wide XPSWMM modeling in December of 2018. Time of Concentration (TC) for each drainage area was calculated based on the Hydrology National Engineering Handbook's Watershed Lag Method. A minimum TC of 12 minutes was used for areas with pervious surface. For small, 10096 impervious drainage areas in {2ueny Lake Park, aminimum TCof7minutes was used. Because the Lake has no outlet, evaporation was determined to be the primary means of water leaving the Lake system. Measured monthly pan evaporation rates from 2014-2019collected by the DNRzvvena used in the model. Because Lake evaporation differs slightly from pan evaporation, a lake evaporation factor was needed. A factor value of 0.79 was used. This value was taken from the USCSHydrology Guide«for Scott County Lakes. Water surface elevation observations were noted in a 2014 survey of Quarry Lake a 721.0 ft. This was used as the initial WSE of Quarry Lake in the model. The 2019 observations by the City showed water levels had risen to 724.4 ft. in those five years. These hydraulic components were used between the VVSEobservation dates inthe water balance below: , " Getting the Most Out ofYour Raindrop: Hydrology Guide for Minnesota. Author: United States Soil Conservation Service. x°sbovfil°w,\proj°*°w/5408-000\^mmm"cs\lake level m°m"w15408-000wat° Level m°naoememm=Memo v4.zzzmuuoc" Page 473 of 508 hJrbyTempdin. PE Apr|29.2020 Page U��+c� N0| Equation v v«^��� ~~��/������ �-�U~"Oon AS -- (P + Q + GW) -- (E + Q ) Where: AS: Change inStorage P: Precipitation Qm:Runoff in GW: Net Groundwater Flow E:Evaporation Qo,,t: Runoff out (because there is currently no outlet, this value is zero) Rearranging husolve for the net groundwater flow this equation becomes: GW—&S_8m4Q\4E The change instorage was calculated based onthe stage storage curve for Quarry Lake. P.Qm and E were calculated in the Existing Conditions XPSWIVIIVI model. Net groundwater flow volume was then divided by the time between observations to yield a net groundwater flow rate of 0.310ofm. This groundwater has multiple observed sources, including lateral seepage from the Prior Lake Outlet Channel and western ponds, and groundwater springs at the bottom of Quarry Lake which have been observed by the City of Shakopee Fire Department during training dives in the Lake. Previous City field measurements calculated the lateral seepage from the west to be 42.9 gpm, or 0.096 cfs. This is approximately 31 % of the calculated groundwater inflow flow rate, we assume the remaining GQ% of the calculated groundwater flow is from internal groundwater springs. Without detailed information from ground water monitoring wells and years of historical trends, exact groundwater influence cannot bodetermined. The Existing Conditions XPSWIVIIVI model was ran with this calculated Quarry Lake inflow of 0.310 cfs to ensure the model was calibrated and the observed water surface elevation were achieved. The mnde|, starting at7/31/14with an initial VVSEof721.O. ran until 7/25/18ond ended with a WSE of 724.4 ft., and was determined to be calibrated accurately. The modeled Quarry Lake stage information iashown below inGraphic 2: x°sbovfil°w,*roj°*°w/5408-000\^mmm"cs\lake level m°m"w15408-000wat° Level Management Plan Memo v4.zzzmouoc" Page 474 of 508 KirbyTemplin. PE April 29.3O20 Page 4 ' 7/25/2019 2018 zmy Graphic 2: Calibrated Model Water Surface Elevation Results for Quarry Lake The calibrated model referenced above was used in the analysis of outlet alternatives described in the next section. 3. ALTERNATIVES FOR MANAGEMENT LAKE LEVELS This task identified three alternatives for managing Lake levels, the pros and cons associated with each alternative, the impacts to existing infrastructure and trees, as well as costs and permitting requirement for each. When evaluating the alternatives for management ofQuarry Lake level the items listed below were considered under all alternatives: w The ONRhas indicated previously that anoutlet for Quarry Lake will require filtration because the Lake in infested with Eurasian Mi|foi| a known invasive species. It is proposed that filtration will be provided in a drainage structure along the outlet pipe in each option. In this ana|yein, the filtering consists of installation of box screen on the outlet pipe (see Graphic 3 below). The screen would be placed in a 48-inch concrete manhole for access and maintenance. We will work with the IDNR on a final design for filtering based ontheir requirements. 24' � . ` 24" 24' WCW mEm AA S05 24oAIW FS",pEEL Graphic 3: Filtering Box Screen x°`bgwiles01\proj°*"m15408-000\^ mmm"cslake level m°m"w,54v8-v00Water Level Management Plan Memo v4.zzz02v.doc, Page 475 of 508 hJrbyTempdin. PE April 29.202O Page * The goal ofthis analysis ishoevaluate the impacts toexisting infrastructure and trees from rising Lake levels. The As -Built plan for the 2015 Park Improvements can be found in Figure 3. Modeling for each alternative was performed to predict how the water levels respond to the outlet alternative identified. Weather information from the past 10 years was copied to predict the weather/runoff data for the next 10 years. The hydrograph for each alternative is shown in Graphic 4below: Graphic 4: Quarry Lake Estimated VVmtar Surface Elevation for Outlet Alternatives (Starting Elevation 722 after water level drawdown in 2019) r3�.'I 730 rT.,.9 728 727 '72�:.� 7Z5 � i cy, m,[2aJ.!7 Q�.,iarry 4ke EslmmatedW�ateiir Si,iirface ��:..Aevaftioms(2.0.11.9-Z031()� Significant Existing Tree Impacts ,10opt !!on�7) 01,,�uou11d:> � � �� �� �� � �ll � �tq));11111, 10,[24/ 20,2 7 _ 3.1 AJtemmmthve1: No Build This alternative is a no build alternative. Since the Lake does not have an outlet the water surface elevation is dependent on future weather patterns. Because the primary outlet for the Lake in this alternative is evaporation, high water levels remain for longer durations than as compared to other options. With this a|ternative, water levels continue to rise until either equilibrium between surrounding waterbodies is reached, or the Lake begins to overflow. Elevations of the surrounding waterbodies can be found on Figure 1. This study did not involve installation of piezometers; to measure groundwater elevations. It would take years of groundwater elevation data to accurately predict the horizontal and vertical flow of groundwater in order to accurately predict a potential equilibrium state for the Lake. Given the information provided by the City, it is known that the Lake's groundwater sources are both from lateral seepage and from bedrock springs, it's likely the Lake will continue to fill even after surface water levels match those of adjacent waterbodies. Based on thisinformaUon.theprobob|e''equi|ibriume|evaUon''fortheLakeisapproximate|y740ft. when the Lake can freely overtop to the north. The EOF location for Quarry Lake is shown on Figure 1. x°sbowile,,\proj°*°w/5408-000\^mmm"cs\lake level m°m"w,54v8-v00Water Level Management Plan Memo v4.zrz02ouoc, Page 476 of 508 hJrbyTempdin. PE Apr129.2020 Page Estimated High Water Level (fN/L) Graphic 4above shows that the estimated projected HVVLfor Alternative 1 iaestimated tnbe 730.0 ft. by 2030. The increasing pattern of the water level will continue until the Lake is free to overtop, estimated to be at an elevation of 740 ft. The elevation of 740 ft. is estimated as the HVVL for this Alternative. Inotruuture Impacts Impacts to existing infrastructure and trees are shown on Figure 4. Tree impacts have been quantified by the square foot impacted based on tree lines from survey information as well as aerial photographs. Cost ofImpacted Infrastructure Much of the park would be inundated at the elevation of 740 ft. The estimated cost of impacted infrastructure is$1.4OO.000shown in Table i. Impacted infrastructure costs are based onthe as -bid price for improvement performed in2O15. Pros: • Noconstruction costs. • No permitting required. Cons: • Water level will have along rainfall bounce duration with nooutlet. • Water level iadependent onfuture weather patterns making the exact HVVL unpredictable. • Water level will continue to rise until Lake Emergency Overflow (EOF) Route is reached at 740.9 ft. At this point water will flow north over the railroad into private properties. • Public infrastructure and trees are affected bythe HVVL. • Private infrastructure (ski club) is affected by the HVVL. w The PLOChas overtopped into Quarry Lake during high flow events. This has the possibility to create even 8paoterHVVLs in Quarry Lake. Permitting There is no permitting required for this Alternative. 3.2 AJtemnatinm2: Gravity Outlet This alternative would install o gravity piped outlet from the Lake. Three locations for the gravity outlet were explored (see Figure 5): • Option 2.11: The first gravity outlet option explored was to install a pipe routed to the PLOC, south of the park's driveway entrance. The invert of the outlet pipe in the PLOC was estimated based on surveyed information as 728.5 ft this correlates to the elevation of the PLOC at this location. This correlates to u pipe invert at Quarry Lake of728.8based unanassumed O.1Y6slope. • Option 2.2: The second gravity outlet option explored was to install a pipe directly from Quarry Lake to the PLOC, north of the park's driveway. The invert of the outlet pipe in the PLOC was estimated based survey information as 727.6. This correlates hnapipe invert atQuarry Lake of728.0based onanassumed U.1Y6slope. • Option 2.3: Gravity outlet pipe is to route u pipe from the Lake north, and parallel to the Railroad before discharging into a more downstream section of the PLOC. The invert ofthe outlet pipe tnthe PLOCcorrelates tothe invert ofthe culvert that crosses the railroad tracks. This elevation ie724.8. the correlating pipe invert otQuarry Lake is725.9based onanassumed O.1Y6slope. x°sbovfil°w,*roj°*°w/5408-000\^mmm"cs\lake level m°m"w15408-000wat° Level Management Plan Memo v4.zzzmouoc" Page 477 of 508 hJrbyTempdin. PE Apr129.2020 Page Given the information above and review from the City, Gravity Option 2.3 was identified as the preferred gravity outlet option because nfits potential tncontrol the Lake'owater level to the lowest elevation and therefore limit impacts to existing trees and infrastructure. The information below relates toGravity Option 2.3: Estimated High Water Level (fN/L) Graphic 4 shows that the projected HWL to be 726.4 ft. InatruotumImpaots Impacts to existing infrastructure and trees are shown on Figure 6. Tree impacts have been quantified by the square foot impacted based on tree lines from survey information as well as aerial photographs. Cost ofImpacted Infrastructure The estimated cost of impacted infrastructure and trees is $56,000 shown in Table 1. Impacted infrastructure costs are based on the as -bid price for improvement performed in 2015. Construction Cost Estimate A detailed cost estimate for the Alternative 2.3 is included in Table 2. The total estimated cost for installation of a gravity outlet is $212,000, with an estimated 50-yr life cycle cost of $287.000(2020do||aro). Permitting Based on communication the City has had with the DNR, the DNR has indicated that since Quarry Lake is not a public water a constructed outlet would not require a permit. Also, this option's proposed outlet runs by gravity flow and would always operate without human interference (valve), as a result a IDNR Water Appropriation Permit is not required. The section of the PLOC where this outlet discharge occurs is a public water. Therefore, a IDNR work in public waters permits will be required to construct the FES discharge pipe to the PLDC. Because the project is proposing to transport or divert invested water an Infested Water Appropriation permit is required through the DNR. The permitting required for this option kaaufollows: ° IVIPCA NPOES Construction Stormvvuter Permit (<1 week to obtain) ° ONR Infested Water Appropriation Permit (AU days to obtain) ^ ONRWork in Public Waters (30 days to obtain) Pros: ° Lake water surface elevation iacontrolled without pumping. • Lower construction cost than pumped option. Cons: w Projected water surface elevations encroach onexisting infrastructure. • Private infrastructure (ski club) is affected by the HVVL. • A larger drop from pipe inlet to outlet may be required for proper filtration of discharging water. • Filtration device atoutlet requires long term annual maintenance. x°sbovfil°w,*roj°*°w/5408-000\^mmm"cs\lake level m°m"w15408-000wat° Level Management Plan Memo v4.zzzmouoc" Page 478 of 508 hJrbyTempdin. PE Apr129.2020 Page w Encroachment on Railroad property may occur. Land acquisition was not considered in cost estimates. • ADNRInfested Water Appropriations Permit ierequired. w ADNRWork in Public Waters Permit is required. 3.3 Alternative 3:Pumped Outlet This alternative would install o lift station to pump water from the Lake in order to maintain the water surface elevation (Figure 7). The assumed pumping rate in the model for the lift station is 1 cfa. The model was set to pump when the Lake level reached an elevation 723.5ft. and then the pump would stop when the elevation reached 723 ft. The pumped water would be routed through the existing water quality pond prior to discharge offsite. Estimated High Water Level (HN/L) Graphic 4 shows that the projected HWL to be 724.4 ft. Inotruuture Impacts Impacts to existing infrastructure and trees are shown on Figure 8. Tree impacts have been quantified by the square foot impacted based on tree lines from survey information as well as aerial photographs. Cost ofImpacted Infraatruoture This option has impact toexisting trees and noimpact toinfrastructure. The cost u[impacts is estimated as $22,000 shown in Table 1. Impacted infrastructure costs are based on the as - bid price for improvement performed in 2015. Construction Cost Estimate A detailed cost estimate for the pumped Alternative is included as Table 3. The total estimated cost for installation of pumped outlet is $307.000. with an estimated 50-yr|ifo cycle cost nf$532.OUU(2O2Odn||om). Permitting Based on communication the City has had with the DNR, the IDNR has indicated that since Quarry Lake is not a public water a constructed outlet would not require a permit. Because this alternative's proposed outlet would need to operate with human interference (valve), a IDNR Water Appropriation Permit is required. Because the project is proposing to transport or divert invested water an Infested Water Appropriation permit is required through the DNR. The permitting required for this option isuafollows: ^ IVIPCANPOESConstruction StonnwaarPermit (<1week toobtain) ° ONRWater Appropriations Permit (—QOdays toobtain) ° DNR Infested Water Appropriation Permit (AU days to obtain) Pros: * Water surface elevations can becontrolled byCity, and water level management can badynamic tomeet City needs. Cons: ° Filtration device atoutlet requires long term annual maintenance. • Long term maintenance is required for the lift station. x°sbovfil°w,*roj°*°w/5408-000\^mmm"cs\lake level m°m"w15408-000wat° Level Management Plan Memo v4.zzzmouoc" Page 479 of 508 hJrbyTempdin. PE April 29.202O Page w Modifications tothe existing water quality pond may boneeded toaccommodate additional flow from pumped lake water. • More frequent maintenance may be required for the existing water quality pond due tothe additional flow from the pumped lake water. w Higher construction costs than gravity outlet option. • ADNRWater Appropriations Permit iorequired. • ADNRInfested Water Appropriations Permit iarequired. 4. CONCLUSION AND RECOMMENDATIONS Below isetable summarizing costs and water levels nfthe three Alternatives. Alternative HWL (ft) Construction Coot 50-yr O&M Cost (2020$) Total Construction & O&M Costs Estimated Infrastructure Impacts No Build 748.0 $O $D $0 $1.400.000 Gravity Outlet 7284 $212.000 $75.000 $287.000 $56.000 Pumped Outlet 724.4 $307.800 $175.000 $482.000 $22.000 Three Alternatives were explored aedetailed inthe sections above. The no -build alternative would not control the lake level and modeling suggests that the water levels in the Lake will continue to rise unless weather patterns significantly change. The no -build will have the pubanda| for extreme impacts tothe existing infruatnuctuna, therefore this alternative ienot recommended. The pumped outlet offers the City the flexibility Un control the Lake level as needed. However, there is a larger construction cost and larger long-term maintenance costs. Therefore, this option ionot recommended. The gravity outlet controls the Lake level without the use of pumping. This option involves more infrastructure and tree impacts than the pumped option, however, trees replacement could occur on the park site and the trail could be rerouted. This option has lower initial construction cost and lower long-term maintenance costs. For these reasons, the gravity outlet option is the recommended option. Attachments: Figure 1—Project Location Figure 2—Existing Drainage Conditions Figure 3—As-Built Plan for 2O15Park Improvements Figure 4—No-Build Alternative Inundation Map Figure 6— Gravity Outlet Options Figure 6— Gravity Alternative Inundation map Figure 7—Pumped Outlet Option Figure 8—Pumped Alternative Inundation Map Table 1—Infrastructure Impact Cost Table 2—Gravity Alternative Estimated Costs Table 3 — Pumped Alternative Estimated Costs x°sbovfil°w,\proj°*°w/5408-000\^mmm"cs\lake level m°m"w15408-00Owat° Level Management Plan Memo v4.zzzmuuoc" Page 480 of 508 ,mv }��,�N""N' 'n a ",� r� „kow�f'171" �� I"nIWII;'«I;,'yIII�IM �6dk u1.7 �..,0""r' «�w 6" „'',a,nLmlaNydhrr9n�Nu IIIUuIIIVV�,� wll', (Z�%%'Uri V4 7,7,77 1//h IbS" 58�'�, 0 0 0) 0 U Surveyed Treeline (2015) CD 2015 Quarry Lake Park Improvements Stormwater Pond Impervious Surface Storm Inlets Storm Manholes Intermediate ;HIV lm) 11 vittt iu'p9 iv :I m I1'4'1'V 1 ea nq v , ,,� .', ICI 111111 Iiiuii„ III z w w J 9 ^�Qaoi¢r'oo- > 1 PP a \I i 0 DO 0 0 0 Z 0 J J 0 00��0 OOZ=Q «� _�.-222 22 C w 0 J CITY OF SHAKOPEE, MINNESOTA CITY PROJ. 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MA'd1'VIlllllll�,l,, 1,0II ,,,lmm,,,l, ,wm IU�VIUIIml 11U„,;i11,11111 VIUUIoa mUu,l'�,;;DIV iI Id�Iry,Muu I, /✓///�111 � l e Keuura4�7�at]//n® a>je aoi4 40 111111111111111111111111111 III 111111111 4111,, ,lM�l�lIIIpNIIIV�„I uldIumIuI fm°"na^dpI„IVIudll�lu'�Io u�IIIi �PIIlNlII'�I',VI4I"bIINnAIIIiI�AIAUint,I'wIl i4s'WIP�r�U,a�"lUI yu�1wl,,p,W,i, llu,,w,lw„uPl.ni�U1i11141, �„,mI,h,ull 111 lmMMM III41}M ll�w I II N llllli1111III oayl,II,II'I ,.1,1 IIIINI,°, Table 1 - Infrastructure Impact Cost SHAKOPEE, MINNESOTA QUARRY LAKE OUTLET WSB PROJECT NO: 015048-000 4/30/2020 Option 1 (No Build) ITEM UNIT EST. QTY. EST. COST TOTAL EST. COST Park Impacts (75%) LS 1 $ 893,615.25 $ 893,615.25 Tree Impacts SF 158,500 $ 3.00 $ 475,500.00 TOTAL $ 1,400,000.00 Option 2 (Gravity Outlet) ITEM UNIT EST. QTY. EST. COST TOTAL EST. COST Trail Impact SY 77 $ 40.00 $ 3,066.67 Big Block Retaining Wall Impact SF 100 $ 120.00 $ 12,000.00 Tree Impacts SF 13790 $ 3.00 $ 41,370.00 TOTAL $ 56,000.00 Option 3 (Lift Station) ITEM UNIT EST. QTY. EST. COST TOTAL EST. COST Tree Impacts SF 7430 $ 3.00 $ 22,290.00 TOTAL $ 22,000.00 *Tree impact cost per SF based on replacement of 1 $150 tree every 50 sf Page 489 of 508 Table 2 - Gravity Alternative Estimated Costs SHAKOPEE, MINNESOTA ENGINEER'S OPINION OF COST 4/30/2020 QUARRY LAKE OUTLET - GRAVITY WSB PROJECT NO: 015048-000 TOTAL EST. ITEM UNIT EST. QTY. EST. COST COST ESTIMATED QUANTITIES ALTERNATIVE 2.3 1 2021.501 MOBILIZATION LUMP SUM 1 $ 25,000.00 $ 25,000.00 2 2501.503 24" HDPE PIPE LIN. FT. 1,120 $ 75.00 $ 84,000.00 3 2501.502 24" PE PIPE APRON EACH 2 $ 2,500.00 $ 5,000.00 4 2511.502 RANDOM RIPRAP, CLASS III CU. YD. 50 $ 150.00 $ 7,500.00 5 2511.511 GEOTEXTILE FABRIC, TYPE IV SQ. YD. 300 $ 5.00 $ 1,500.00 6 2575.605 SEEDING, MIX 60B (FERTILIZER & MULCH) ACRE 1.3 $ 2,500.00 $ 3,213.96 7 2501.567 BACKFLOW PREVENTOR EACH 1 $ 5,000.00 $ 5,000.00 8 2501.567 DRAINAGE STRUCTURE WITH FILTRATION DEVICE EACH 1 $ 10,000.00 $ 10,000.00 9 2573.503 FLOATION SILT CURTAIN LIN. FT. 250 $ 25.00 $ 6,250.00 SUBTOTAL $ 147,500.00 20% CONTINGENCY $ 29,500.00 SUBTOTAL $ 177,000.00 20% INDIRECT $ 35,400.00 TOTAL $ 212,000.00 SHAKOPEE, MINNESOTA QUARRY LAKE OUTLET - GRAVITY WSB PROJECT NO: 015048-000 ENGINEER'S OPINION OF LIFE CYCLE COST (50 YR) LIFE CYCLE COST (50 YEARS) TOTAL EST. EST. COST EST. QTY. COST CONSTRUCTION COST SEASONAL MAINTENANCE (FILTER) ANNUAL MAINTANCE (SYSTEM) TOTAL $ 212,000.00 $ 500.00 $ 500.00 1 $ 212,000.00 100 $ 50,000.00 50 $ 25,000.00 $ 287,000.00 Page 490 of 508 Table 3 - Pumped Alternative Estimated Costs SHAKOPEE, MINNESOTA ENGINEER'S OPINION OF COST 4/30/2020 QUARRY LAKE OUTLET - PUMPED WSB PROJECT NO: 015048-000 TOTAL EST. ITEM UNIT EST. QTY. EST. COST COST ESTIMATED QUANTITIES ALTERNATIVE 3 1 2021.501 MOBILIZATION LUMP SUM 1 $ 25,000.00 $ 25,000.00 2 2501.503 24" RC PIPE CULVERT CLASS III LIN. FT. 40 $ 75.00 $ 3,000.00 3 2501.502 24" RC PIPE APRON EACH 1 $ 2,500.00 $ 2,500.00 4 2501.503 12" HDPE PIPE LIN. FT. 115 $ 65.00 $ 7,475.00 3 2501.502 12" HDPE PIPE APRON EACH 1 $ 2,000.00 $ 2,000.00 5 2511.502 RANDOM RIPRAP, CLASS III CU. YD. 50 $ 150.00 $ 7,500.00 6 2511.511 GEOTEXTILE FABRIC, TYPE IV SQ. YD. 300 $ 5.00 $ 1,500.00 7 2575.605 SEEDING, MIX 60B (FERTILIZER & MULCH) ACRE 0.4 $ 2,500.00 $ 1,104.80 8 2506.602 DRAINAGE STRUCTURE WITH FILTRATION DEVICE EACH 1 $ 10,000.00 $ 10,000.00 9 2506.601 PUMP STATION WITH ELECTRICAL & CONTROLS EACH 1 $ 150,000.00 $ 150,000.00 10 2573.503 FLOATION SILT CURTAIN LIN. FT. 125 $ 25.00 $ 3,125.00 SUBTOTAL $ 213,204.80 20% CONTINGENCY $ 42,640.96 SUBTOTAL $ 256,000.00 20% INDIRECT $ 51,200.00 TOTAL $ 307,000.00 EASEMENTS $ - TOTAL $ 307,000.00 SHAKOPEE, MINNESOTA QUARRY LAKE OUTLET - GRAVITY WSB PROJECT NO: 015048-000 ENGINEER'S OPINION OF LIFE CYCLE COST (50 YR) LIFE CYCLE COST (50 YEARS) 1 UTAL EST. COST EST. QTY. COST CONSTRUCTION COST $ 307,000.00 1 $ 307,000.00 SEASONAL MAINTENANCE (FILTER) $ 500.00 100 $ 50,000.00 ANNUAL MAINTANCE (SYSTEM) $ 2,500.00 50 $ 125,000.00 PUMP REPLACEMENT (AFTER 25 YEARS) $ 50,000.00 1 $ 50,000.00 TOTAL $ 532,000.00 Page 491 of 508 111111111111111111111111111111111111111111I 11111111111111111111111111111111111111111 11111111111111111111111111111111111111111111111111 11111111111111111111111111111 111111E 1111111111111111111111111111111111111111 11111111111111111 11111111111111111 Page 492 of 508 111111111111111111110 • 111111111111111111110 0 111111111111111111110 a Hum I11„„„1„„„„, Page 493 of 508 III umIIIIIIIIIIIIIIIIIII��N�',�, II Wllum�m, mlllllr� „w m mmnuum �µx IIIIIIIIIIIIIIII frf 00 POPO Olt 000 Page 494 of 508 Page 495 of 508 ;( �uwiijM 9 c E l 1 0 4J (10 4-0 rcs E 0, 0 L) 0 1111111111111111 1111111111111111 11 E 0 ) 0 muumuu m Page 496 of 508 0 111111111111111111110 w 4J 0 0 0 11 01111111111111111 Q 0 IA 0 c) 111111111111111111110 0 re Page 497 of 508 mH�w.o,mr,m 0,0 tri c 0 4J 0 4J 0 nnnnnnnnnnm kw 14 nor t 4-0 nnnnnnnnnnm nnnnnnnnnnm 4J 111111111111111111111111111111111111 Illlul ,11111,1,1,11111111111111111111 Page 498 of 508 CU d) 0 Q 0 f6 YIP 10 �� 0IIIIIII I II01 /o V 1 0 • 4J 0111111 0 4-0 0 0 vlllloij!IIuu,V,1i;' 11 4J 0 ;,mil sus �,�, rv�!r,lrrv;�Il m1�414;02flt Page 499 of 508 4 111111111111111111 • 111111111111111111111111 410 4 1(11 r.,11 r ton 110 Page 500 of 508 • I I I I I I I I I I I I I I I I I I I I r0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 141 ' ro 0 I I I I I I I I I I I I I I 0 4-0 Lol 0 50-yr O&M Total Estimated Cost Construction & infrastructure (2020$) O&M Costs Impacts a Q C, Q 71", - ta o CD . (r), 1..0 In o 0, .., CA CA Ca CD CD Cr CO CA EFY CD C..) CA 00 T.I' 479- 0 0" CD CD Lfi 1,- (A, CD C.). - ") - (74 Construction Cost a co, $212.000 0 0 o , P'-• C.1, Cr) 00 O'Or 4- 726,4 7t CA Alternative 13 5 im o z Gravity Outlet Pumped Outlet Page 501 of 508 L) 11 0 nnnnnnnn 11 11 II Page 502 of 508 • Page 503 of 508 10.A. Shakopee City Council June 2, 2020 FROM: Nate Reinhardt, Finance Director TO: Mayor and Council Members Subject: City Bill List Policy/Action Requested: None Recommendation: Informational Only Discussion: Attached is the most recent monthly Financial Report for the General fund. These reports reflect the expenditures as recorded for 2020 activity. The following transactions are notable for this reporting cycle: • Enclave/DECO has made draw request #6 totaling $244,183.02 as part of the redevelopment grant. This will be paid back with tax increment financing in TIF district 20. • Northwest Asphalt Inc submitted the final voucher for the 2018 Trail Rehab & Trail Overlay project. $47,183.70. • Scott County submitted for Shakopee portion of the Construction Cooperative Agreement for CSAH 42 expansion from CSAH 17 to CSAH 83. $926,171.14. Included in the check list are various refunds, returns, and pass through. Budget Impact: Operating and capital expenditures within the 2020 budget. ATTACHMENTS: Page 504 of 508 a Monthly Financial Report a Council Check Summary a Bill List Transfers Page 505 of 508 CITY OF SHAKOPEE Monthly Financial Report co it a bA z PC 01000 - GENERAL FUND EXPENDITURES: oo M (� oo \p \p V1 O O it-) M (� O1 01 7--1 '--I D Cr) O1 N O1 Cr) O M l� M O oo N 00 N ‹O .-� �O o0 O Vl O oo ,-. O O ,-- O ,-N O 00 N N M N a1 In r- M O oo r- M O r- O 01 l-- — Lin N N d1 M M d1 .--i N M .--' un O O 7r O r r 4111 if 1 i f j) 411,, a 11, O I O O O O O O O O O t O O O O O V'1 r- oo 00 00 00 V') 00 N M M M M M M N M N M M a1 1-1 N N .-, O 0\ • N 01 .-- `D 00 N N 01 00 O M O r- M 0o O O N M O N O N o0 oO 01 N en in V 1 Nkr) O N O O O M oo O N N O -- a Vl N C IN 00 --- -- a 01 ---a M N `O N .--1 M N M M M O N N N N r 00 .--i ▪ 01 00 00 O\ v O M oo O1 N N inN O •--, O m �O M 7rO1 N N �O 7 01 N 7 01 00 7 O G1 > 01 O N O r— 00 00 N 00 N M M V7 N N 01 00 0\ 00 7h N kn N N V1 O V') M N l� a1 O O N oo in • oo Lel N N N M 01 N M V> N N O M 00 N N N a, N 71- N •-i M a, O O V) O .-i 01 N oO N N N •--- cc, N O M O in 00 M 00 •--+ ,. M N I� V) O1 00 00 01 M 00 O1 ---- M •--, •--I •--+ O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O .--1 N N Cr) Cl.) ,O N O. 01 Cr) Vl O N Cr) ,--, N N ,--, N 6 01 O. 0 0 0 s O N s O . O o0 . O in M in . M N 01 N .--1 .- i N N 13 - CITY CLERK 15 - FINANCE TY DEVELOPMENT 17 - COMM 18 - FACILI 31 - POLICE DEPARTMENT 33 - INSPECTION-BLDG-PLMBG-HTG 41 - ENGINEERING 42 - STREET MAINTENANCE 44 - FLEET 46 - PARK MAINTENANCE 66 - NATURAL RESOURCES 67 - RECREATION 91 - UNALLOCATED N O O 1-1 N O r O rl M 7r Vi 7r rl N TOTAL EXPENDITURES Within 10% of budget Page 506 of 508 5/28/2020 13:44:23 CITY OF SHAKOPEE O O 0 J CO Council Check Summary e actual amount due to data sequencing and/or data Payment amount may not r of Z C O E 7 N. N. 0) N_ (D N 0 M M N (O 6] N o lO co!N MOON h OD o) CO CO 7 7 O O 7 6) 0 6) (0 M O N 0 6) O O O I� 7 (O co co co a)7 (O 'I' 0 7 0 6) (O (O W I� n f� 0 7 0) N 6) N 0 (0CO lO (0 7 I� O h O 7 co- N- u-) co (!) 7 N 6) 7 (O CO GENERAL FUND 0 0 0 02120 FORFEITURE 02180 LODGING TAX 02190 ECONOMIC DEVELOPMENT AUTHORITY PARK DEVELOPMENT CAPITAL IMPROVEMENT FUND TIF DIST #18 CANTERBURY COMMON TIF DIST#20 ENCLAVE DEVELOPME TREE REPLACEMENT SEWER FUND SURFACE WATER FUND EQUIPMENT I.S. FUND PARK ASSET I.S. FUND INFO TECH I.S. FUND BUILDING I.S. FUND SELF INSURANCE I.S. FUND SW METRO DRUG TASK FORCE ESCROW FUND 0 1- CO 0 0 0 0 (O CO 0 0 (O 0 N N OD OD 0 0 0 0 0 0 N N 7 0 0 0 0 7 M CO CO CO CO CO 0 0 7 7 7 7 7 1� 1` t` t` t` t` 1` co co 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 507 of 508 Funds transferred electronically May 20, 2020 to June 2, 2020 PAYROLL $352,720.34 FIT/FICA $103,506.92 STATE INCOME TAX $23,409.59 PERA $117,112.03 HEALTH CARE SAVINGS $15,597.52 HEALTH SAVINGS ACCT $22,751.82 NATIONWIDE DEF COMP $10,437.08 ICMA DEFERRED COMP $2,464.82 MSRS $5,217.39 FSA $1,874.97 MN WAGE LEVY $0.00 Child Support $529.29 Total $655,621.77 Page 508 of 508